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The impact of the global financial crisis: What does this tell us about state capacity and political incentives to respond to shocks and manage risks?

The overall purpose of this research is to ‘understand the political and governance factors which affect states’ ability to effectively respond to external shocks, particularly the global financial crisis, and how policy can be made more responsive and capacity strengthened’. In order to address this question both the incentives and the blockages to effective policy responses to external economic shocks will need to be analysed in different contexts. The research will produce a literature review on state capacity to respond to external shocks, an analytical framework and case studies in Kenya and Bangladesh which will analyse the governance and institutional factors underpinning state’s responses to the crisis in the last couple of years.


Leni Wild; Daniel Harris; Dirk Willem te Velde; David Booth; Isabella Massa