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291. Can the West Save Africa?

Author:
William Easterly
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The last few years have seen unprecedented attention to an attempt by Western governments to rapidly develop Africa. British Prime Minister Tony Blair called at the World Economic Forum in Davos in January 2005 for "a big, big push forward" in Africa to end poverty, financed by an increase in foreign aid. Tony Blair commissioned a Report on Africa, which released its findings in March 2005, likewise calling for a "big push." Gordon Brown and Tony Blair put the cause of ending poverty in Africa at the top of the agenda of the G-8 Summit in Gleneagles, Scotland in July 2005. In the 2005 summit at Gleneagles, Scotland, the G-8 agreed to double foreign aid to Africa, from $25 billion a year to $50 billion to finance the big push, as well as to forgive the African aid loans contracted during previous attempts at a "big push." Two years later, Germany again made Africa an important item on the agenda of the G-8 summit it hosted in Heiligendamm in June 2007. There, the G-8 again reiterated the promises made in 2005. Japan pledged to double its own aid to Africa in May 2008 over the next five years. Most recently, the G8 Summit in Japan in July 2008 agreed: "We are firmly committed to working to fulfill our commitments on Official Development Assistance made at Gleneagles, and reaffirmed at Heiligendamm, including increasing...ODA to Africa by US$ 25 billion a year by 2010."
Topic:
Development and Emerging Markets
Political Geography:
Africa, Japan, United Kingdom, and Germany

292. The Cleavage Model, Ethnicity and Voter Alignment in Africa: Conceptual and Methodological Problems Revisited

Author:
Gero Erdmann
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Recent research on political parties and ethnicity has challenged the conventional wisdom about ethnicity as the major factor that explains voter alignment in Africa. The paper maintains that the cleavage model, although modified to include ethnicity, still provides heuristically the best foundation for the explanation of party formation and voting behaviour in Africa. It points out that inconclusive and contradicting research results about the salience of ethnicity can be attributed to a variety of unresolved methodological and conceptual problems linked to the 'fluidity' of the concept of ethnicity. To overcome these problems refined research designs and more sophisticated analytical tools are required. Finally, it is safe to assume that the relevance of ethnicity for the formation of party systems and voter alignment is not a uniform pattern across Africa, but will differ from one country to the other.
Topic:
Demographics, Development, and Government
Political Geography:
Africa

293. Sectoral Transformations in Neo-Patrimonial Rentier States: Tourism Development and State Policy in Egypt

Author:
Thomas Richter and Christian Steiner
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This article challenges claims that liberalising state regulated markets in developing countries may induce lasting economic development. The analysis of the rise of tourism in Egypt during the last three decades suggests that the effects of liberalisation and structural adjustment are constrained by the neo-patrimonial character of the Egyptian political system. Since the decline of oil rent revenues during the 1980s tourism development was the optimal strategy to compensate for the resulting fiscal losses. Increasing tourism revenues have helped in coping with macroeconomic imbalances and in avoiding more costly adjustment of traditional economic sectors. Additionally, they provided the private elite with opportunities to generate large profits. Therefore, sectoral transformations due to economic liberalisation in neo-patrimonial Rentier states should be described as a process, which has led to the diversification of external rent revenues, rather than to a general downsizing of the Rentier character of the economy.
Topic:
Development and Economics
Political Geography:
Africa, United States, Middle East, and Egypt

294. Crafting Political Institutions in Africa. Electoral Systems and Systems of Government in Rwanda and Zambia Compared

Author:
Alexander Stroh
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Scholars of institutional design attribute large importance to the choice of new institutions. The comparative analysis of how Rwanda and Zambia crafted their new electoral systems and the systems of government regards procedural, structural and rational choice variables which may influence the option for particular solutions. External influences and the type of transition are determinants that can decide which actors make their interests prevail. The degree of innovation or conservatism of new institutions is mainly a result of the speed of the process and the kind of actors involved. However, rational reflections on how to produce legitimacy and minimize personal risks which take into consideration the state of conflict in the country decide on the speed and on innovative outcomes. The structured analysis of only two cases uncovers already that it is rather difficult to realise the transfer of design recommendations into reality.
Topic:
Development, Government, and Politics
Political Geography:
Africa, Rwanda, and Holland

295. Nigeria's Economic Reforms Progress and Challenges

Author:
Ngozi Okonjo-Iweala and Philip Osafo-Kwaako
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Following years of economic stagnation, Nigeria embarked on a comprehensive reform program during the second term of the Obasanjo administration. The program was based on the National Economic Empowerment and Development Strategy (NEEDS) and focused on four main areas: improving the macroeconomic environment, pursuing structural reforms, strengthening public expenditure management, and implementing institutional and governance reforms. This paper reviews Nigeria's recent experience with economic reforms and outlines major policy measures that have been implemented. Although there have been notable achievements under the program, significant challenges exist, particularly in translating the benefits of reforms into welfare improvements for citizens, in improving the domestic business environment, and in extending reform policies to states and local governments. Consequently, we argue that the recent reform program must be viewed as the initial steps of a much longer journey of economic recovery and sustained growth. This paper concludes by outlining a number of outstanding issues that future Nigerian administrations must address.
Topic:
Development, Economics, and Government
Political Geography:
Africa and Nigeria

296. What Have IMF Programs With Low-Income Countries Assumed About Aid Flows?

Author:
David Goldsbrough and Ben Elberger
Publication Date:
04-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper examines the nature of aid projections in IMF programs with low-income countries. On average, IMF projections of net aid increased sharply in the first year of programs but tapered off in subsequent years. Projections were also significantly more optimistic in countries with low initial levels of aid but differed little across regions. Most notably, projections of net aid to countries in Sub-Saharan Africa following the Gleneagles Summit are significantly more pessimistic than the path implied by commitments to double aid to Africa by 2010. This pattern is strong throughout the group with only two Sub-Saharan African countries showing increases in net aid consistent with the Gleneagles commitments.
Topic:
Development, Political Economy, Poverty, and International Monetary Fund
Political Geography:
Africa

297. Performance-Based Incentives for Health: A Way to Improve Tuberculosis Detection and Treatment Completion?

Author:
Rena Eichler, Diana Weil, and Alexandra Beith
Publication Date:
04-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Tuberculosis is a public health emergency in Africa, Eastern Europe, and Central Asia. Of the estimated 1.7 million deaths from TB, 98 percent are in the developing world, the majority being among the poor. In order to reach the MDG and the Stop TB partnership targets for 2015, TB detection rates need to double, treatment success rates must increase to more than 7075 percent, and strategies to address HIV-associated TB and multi-drug resistant TB must be aggressively expanded. DOTS, the internationally-recommended TB control strategy is the foundation of TB control efforts worldwide. A standard recording and monitoring system built on routine service-based data allows nearly all countries in the world to track progress in case detection and treatment completion through routine monitoring. This provides a good base for measuring the impact of different strategies for improving TB control outcomes.
Topic:
Development, Health, Human Welfare, and Humanitarian Aid
Political Geography:
Africa, Central Asia, and Eastern Europe

298. Do No Harm: Aid, Weak Institutions, and the Missing Middle in Africa

Author:
Nancy Birdsall
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The implicit assumption of the donor community is that Africa is trapped by its poverty, and that aid is necessary if Africa is to escape the trap. In this note I suggest an alternative assumption: that Africa is caught in an institutional trap, signaled and reinforced by the small share of income of its independent middle-income population. Theory and historical experience elsewhere suggest that a robust middle-income group contributes critically to the creation and sustenance of healthy institutions, particularly healthy institutions of the state. I propose that if external aid is to be helpful for institution-building in Africa's weak and fragile states, donors need to emphasize not providing more aid but minimizing the risks more aid poses for this group in Africa.
Topic:
Corruption, Development, Government, and Humanitarian Aid
Political Geography:
Africa

299. Credit Elasticities in Less-Developed Economies: Implications for Microcredit

Author:
Dean Karlan and Jonathan Zinman
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Policymakers often prescribe that microfinance institutions increase interest rates to eliminate reliance on subsidies. This strategy makes sense if the poor are rate insensitive: then microlenders increase profitability (or achieve sustainability) without reducing the poor's access to credit. We test the assumption of price inelastic demand using randomized trials conducted by a consumer lender in South Africa. The demand curves are downward-sloping, and steep for price increases relative to the lender's standard rates. We also find that loan size is far more responsive to changes in loan maturity than to changes in interest rates, which is consistent with binding liquidity constraints.
Topic:
Development, Economics, and Markets
Political Geography:
Africa and South Africa

300. Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts

Author:
Dean Karlan and Jonathan Zinman
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Expanding credit access is a key ingredient of development strategies worldwide. Microfinance practitioners, policymakers, and donors have ambitious goals for expanding access, and seek efficient methods for implementing and evaluating expansion. There is less consensus on the role of consumer credit in expansion initiatives. Some microfinance institutions are moving beyond entrepreneurial credit and offering consumer loans. But many practitioners and policymakers are skeptical about “unproductive” lending. These concerns are fueled by academic work highlighting behavioral biases that may induce consumers to overborrow. We estimate the impacts of a consumer credit supply expansion using a field experiment and follow-up data collection. A South African lender relaxed its risk assessment criteria by encouraging its loan officers to approve randomly selected marginal rejected applications. We estimate the resulting impacts using new survey data on borrower behavior and well-being, and administrative data on loan repayment. We find that the marginal loans increased credit access and produced measurable benefits in the form of increased employment, reduced hunger, and reduced poverty. The marginal loans also appear to have been profitable for the lender. The results must be interpreted with caution but suggest that consumer credit expansions can be welfare-improving.
Topic:
Development, Markets, and Poverty
Political Geography:
Africa and South Africa