#3 - Shanta Devarajan: Can Knowledge, Data, and Trust Help Break the Fragility Trap?

from F-World: The Fragility Podcast Hosted by Mihaela Carstei, Paul M. Bisca, Johan Bjurman Bergman

Dr. Shanta Devarajan is a professor at Georgetown University’s Edmund A. Walsh School of Foreign Service, where he teaches development economics. Previously, Shanta worked for nearly three decades at the World Bank, where he was the Senior Director for Development Economics (DEC) and served as acting Chief Economist. This episode starts with Shanta’s account of his early work on indicators to measure state fragility at the World Bank, and how his understanding of fragility has evolved over time. We then explore how country rankings are linked to aid allocations, and why venture capital is a better model to help countries escape the fragility trap than current practices. We also discuss how international financial institutions navigate the relationship with governments. Reflecting on his work prior to the Arab Spring, Shanta argues that development financing institutions should use knowledge and data to build greater trust with citizens – their ultimate clients. We then get more technical and discuss how taxation in oil-rich countries like South Sudan can promote solidarity, how conflict can shape government decisions on infrastructure development, and the role of macroeconomic policy in fragile states. This episode was recorded on April 14, 2021.