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302. The New Institutionalism and Africa
- Author:
- Robert H. Bates, Steven Block, Ghada Fayad, and Anke Hoeffler
- Publication Date:
- 10-2011
- Content Type:
- Working Paper
- Institution:
- Weatherhead Center for International Affairs, Harvard University
- Abstract:
- After briefly reviewing the new institutionalism, this article uses the history of political reform in Africa to test its key tenet: that power, if properly organized, is a productive resource. It does so by exploring the relationship between changes in political institutions and changes in economic performance, both at the macro- and the micro- level. The evidence indicates that political reform (Granger) causes increases in GDP per capita in the African subset of panels of global data. And, at the mIcro-level, it demonstrates that changes in national political institutions in Africa strongly relate to changes in total factor productivity in agriculture.
- Topic:
- Agriculture, Development, Economics, and Political Economy
- Political Geography:
- Africa
303. Microfinance on the Ground in Post-Conflict Juba, South Sudan
- Author:
- Crystal Murphy
- Publication Date:
- 10-2011
- Content Type:
- Working Paper
- Institution:
- The Wilson Center
- Abstract:
- Though microfinance is championed in “typical” underdeveloped societies, its appropriateness for societies in the wake of conflict is not certain. Through in-depth field interviews and subsequent narrative analysis, this essay details lived realities of microfinance in Juba, South Sudan since the 20 05 Comprehensive Peace Agreement. It describes how repatriates navigate the complex new economy, credit, and income opportunities to secure livelihoods after war. It finds that microfinance in Juba does serve some worthwhile ends in the post-conflict economy, which, however, complicate the industry's success narratives.
- Topic:
- Conflict Resolution, Economics, International Trade and Finance, and Peacekeeping
- Political Geography:
- Africa, South Sudan, and Juba
304. Africa Unleashed
- Author:
- Edward Miguel
- Publication Date:
- 11-2011
- Content Type:
- Journal Article
- Journal:
- Foreign Affairs
- Institution:
- Council on Foreign Relations
- Abstract:
- Steven Radelet's accessible new book argues that much of the credit for Africa's recent economic boom goes to its increasingly open political systems. But Radelet fails to answer the deeper question: why some countries have managed to develop successful democracies while others have tried but failed.
- Topic:
- Development, Economics, and Government
- Political Geography:
- Africa, United States, Asia, and Liberia
305. Pro-poor Growth through Export Sector Support: What Works Where and Why
- Author:
- Peter Gibbon and Henrik Nielsen
- Publication Date:
- 12-2011
- Content Type:
- Working Paper
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- This report reviews international experiences with pro-poor development assistance to export sectors. Such support has become more common in the last decade and a half, following the emergence of widespread consensus amongst policymakers that export growth can be a key poverty reduction mechanism – since it should increase both national income and formal employment. This contributes to poverty reduction directly through increased employment and indirectly through creating additional resources for governments to pursue pro-poor policies. Nevertheless, policymakers normally also agree that some types of export growth are more (potentially) pro-poor than others, especially but not only in their employment effects. It is initiatives to respond to this challenge that will be treated in this report.
- Topic:
- Economics, Gender Issues, Poverty, and Labor Issues
- Political Geography:
- Africa
306. Direct Redistribution, Taxation, and Accountability in Oil-Rich Economies: A Proposal
- Author:
- Shantayanan Devarajan, Hélène Ehrhart, Tuan Minh Le, and Gaël Raballand
- Publication Date:
- 12-2011
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- To enhance efficiency of public spending in oil-rich economies, this paper proposes that some of the oil revenues be transferred directly to citizens, and then taxed to finance public expenditures. The argument is that spending that is financed by taxation—rather than by resource revenues accruing directly to the government—is more likely to be scrutinized by citizens and hence subject to greater efficiency. We develop the case as follows: First, we confirm that public expenditure efficiency is lower in oil-rich countries compared with other developing countries. Second, we develop a theoretical model to explain why citizens' scrutiny over public expenditure can be increased by transferring oil revenues to citizens and then taxing them. By receiving transfers and then paying taxes, citizens are better informed about the level of government revenue, and they have an incentive to ensure that their taxes are spent on public goods. Third, we show empirically that enhanced citizens' scrutiny is associated with more efficient government spending decisions and that accountability is stronger in countries that rely more on taxation to finance public spending. We conclude that, while it may be difficult to implement such a proposal in existing oil producers, there is scope for introducing it in some of Africa's new oil producers.
- Topic:
- Economics, International Trade and Finance, and Oil
- Political Geography:
- Africa
307. Competitive Clientelism, Easy Financing and Weak Capitalists: The Contemporary Political Settlement in Ghana
- Author:
- Lindsay Whitfield
- Publication Date:
- 12-2011
- Content Type:
- Working Paper
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- Ghana has exhibited rather strong economic growth since the 1980s, but little transformation of the productive structure of its economy. The paper argues that ruling elites' policy choices are shaped by their political survival strategies. In turn, these strategies are shaped by (1) the characteristics of the ruling coalitions, which include a high degree of vulnerability in power, strong lower-level factions of the ruling coalition, and a substantial amount of fragmentation among the higher factions of the ruling coalition; (2) the weak capabilities and political influence of the nascent productive capitalists; and (3) easy access to financing for the state and the ruling coalition from foreign aid, mining and cocoa bean exports. As a result, ruling elites' policy actions did not prioritize the development of new productive sectors (or upgrading of old ones), but were geared towards delivering benefits to the higher and lower levels of the ruling coalition, as well as delivering a small amount of visible goods and services to as much of the population as possible in an effort to 'swing' voters their way at election time. Neither of these political survival strategies resulted in significant productive sector investments.
- Topic:
- Development, Economics, Politics, Social Stratification, and Governance
- Political Geography:
- Africa and Ghana
308. Growth without Economic Transformation: Economic Impacts of Ghana's Political Settlement
- Author:
- Lindsay Whitfield
- Publication Date:
- 12-2011
- Content Type:
- Working Paper
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- Since the Fourth Republic was inaugurated in 1993, politics in Ghana has been increasingly characterized by competitive clientelism. Ruling coalitions are characterized by a high degree of vulnerability in power due to a strong opposition party, by strong lower-level factions within the ruling coalition due to their importance in winning elections, and by a high degree of fragmentation among the ruling elite. These characteristics, combined with a weak domestic capitalist class and high inflows of foreign aid, have led the ruling elites across political parties to pursue and implement policies that have a short time horizon, that do not significantly shift the allocation of resources towards building productive sectors, and which are often plagued by problems of enforcement. The results have led to growth without economic transformation. In particular, the country has witnessed recurrent macroeconomic instability, a haphazard process of privatization of state-owned enterprises, and no serious attempt to build up productive sectors outside of cocoa and gold.
- Topic:
- Democratization, Development, Economics, Politics, Social Stratification, Foreign Aid, and Governance
- Political Geography:
- Africa and Ghana
309. Political Challenges to Developing Non-Traditional Exports in Ghana: The Case of Horticulture Exports
- Author:
- Lindsay Whitfield
- Publication Date:
- 12-2011
- Content Type:
- Working Paper
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- The nascent Ghanaian horticulture export sector, which emerged in the mid-1980s, has been ignored by ruling elites, especially after the return to multiparty democracy in 1993. Ruling elites across the two party governments between 1993 and 2008 did not actively pursue initiatives to support the industry. Without sustained political support, the types of public-private coordination of actions and investments needed to help the sector expand and upgrade were not forthcoming in an effective and timely manner. This private sector-driven non-traditional export sector constitutes a neglected opportunity for export diversification and building a new agro-industry, and also highlights some of the factors explaining why the country's economy was still dependent on the traditional exports of cocoa and gold by the close of the 2000s. The political challenges to changing the productive structure in Ghana can be found in the characteristics of ruling coalitions–vulnerability of the ruling elite in power, the high fragmentation within ruling coalitions, and their existing sources of and strategies for financing the state and the ruling coalition, combined with the country's existing economic structure as well as the size and capabilities of domestic capitalists. The characteristics of ruling coalitions in Ghana shaped the incentives facing ruling elites such that the ruling elites were not sufficiently compelled to support new productive sectors, such as horticulture export, which did not (yet) provide substantial revenues.
- Topic:
- Agriculture, Economics, International Trade and Finance, Social Stratification, and Governance
- Political Geography:
- Africa and Ghana
310. Corruption and the Rule of Law in Sub-Saharan Africa
- Author:
- Stuart S. Yeh
- Publication Date:
- 01-2011
- Content Type:
- Journal Article
- Journal:
- African Journal of Legal Studies
- Institution:
- The Africa Law Institute
- Abstract:
- The World Bank and IMF attribute underdevelopment in sub-Saharan Africa to the practice of directing economic activity through centralized planning. They prescribe privatization and economic liberalization to restructure African economies, promote competition, reduce the scope for corruption, and promote good governance. However, inadequate checks on political power permit African elites to subvert these reforms. This article reviews the political economy of sub-Saharan countries as well as a case study of Sierra Leone to illustrate the problem. The analysis suggests the need for an international agency such as the UN to provide the capacity to investigate, expose and check corruption by employing UN inspectors who are immune to pressure from powerful African elites. This type of check on corruption is necessary to promote the rule of law in sub-Saharan Africa.
- Topic:
- Economics, United Nations, and Law
- Political Geography:
- Africa