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Identifying & Targeting Incentives

IRIS supports reform leaders and donors using an approach — and a set of analytic tools — that identifies and targets the incentives underlying economic and political activity.

Based on “new institutional economics,” IRIS’s approach help our partners and clients better understand the sources of underdevelopment and to chart the paths to improvement.

IRIS activities in this area address fundamental issues of development thinking and currently include:

  • Designing better development indicators —IRIS develops and applies new measures of development outcomes, with a focus on the impact of institutions.

  • Understanding and strengthening fragile states — IRIS’s “fragile states framework” helps donors analyze and address the causes of state fragility and failure.

  • Improving the effectiveness of foreign aid — IRIS helps international donors and organizations, such as the World Bank and USAID, address where and how aid can be most usefully provided.

  • Measuring and analyzing the informal sector — IRIS measures the size and scope of the informal economy, a task that is key to addressing the institutional obstacles to enterprise development.
      

Development Indicators
IRIS develops and applies new measures of development outcomes, with a focus on the impact of institutions.

For example, IRIS has developed tools that measure institutional development and health in the area of governance. These include general measures or indices, as well as specific indicators, such as measures of corruption.

More on Development Indicators.

Fragile States
The IRIS Center’s fragile states framework helps donors analyze and address the causes of state fragility and failure. Both USAID and DIFD have used the framework to develop strategies for addressing this issue.

IRIS is now building on the implementation aspect of the framework - focusing on addressing specific issues that arise from state fragility or failure.

More on Fragile States.

Aid Effectiveness
IRIS helps international donors and organizations - such as the World Bank and USAID - addresses where and how aid can be most usefully provided.

Understanding how outsiders can best support development is essential to improving the lives of the world’s poorest citizens and ensuring peace and stability for all.

More on Aid Effectiveness.

Informal Sector
IRIS measures the size and scope of the informal economy, a task that is key to addressing the institutional obstacles to enterprise development.

Accurate measures of the informal economy help governments to identify the environmental conditions that force businesses to operate outside of the formal system. With IRIS’s assistance, partners and clients can develop a better understanding of the informal sector, and thereby improve economic management and policymaking efforts.

More on the Informal Sector.

 

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