Ethnic divisions have been shown to adversely affect economic performance and political stability, particularly in Africa. However, the underlying mechanisms remain poorly understood. Using experimental data from Kenya, this column studies whether one potential mechanism – co-ethnic bias – affects altruism. Strikingly, most tests yield no evidence of co-ethnic bias, suggesting that other mechanisms must be driving the negative association between ethnic diversity and economic and political outcomes in Africa.
Lars Ivar Oppedal Berge, Kjetil Bjorvatn, Simon Galle, Edward Miguel, Daniel Posner, Bertil Tungodden, Kelly Zhang, 11 February 2016
Stelios Michalopoulos, Elias Papaioannou, 24 December 2015
The carving up of Africa by colonial powers is often a touch-stone for those concerned with African development and underdevelopment. This column looks into the effect imposed borders had on splitting ethnicities across countries. It finds that colonial border designs have spurred political violence and that ethnic partitioning is systematically linked to civil conflict, discrimination by the national government, and instability.
Tessa Bold, 05 December 2015
With the introduction of new technologies such as fertiliser and hybrid seeds, agricultural productivity has experienced an unprecedented rise in the past decades in almost all parts of the world. But not in Sub-Saharan Africa. This column studies the fertilisers available in Sub-Saharan Africa. It turns out that there is a huge variation in terms of fertiliser quality. Farmers should be meaningfully integrated into markets and supply chains to ensure quality and trust.
Toke S. Aidt, Zareh Asatryan, Lusine Samvel Badalyan, Friedrich Heinemann, 28 November 2015
Central bank independence was supposed to end politically driven monetary policy. This column discusses new evidence showing a sizeable spike in the growth rate of cash and overnight bank deposits centred on election days. The spike is present in countries with weak political institutions, but not in OECD countries. The cycle seems to be related to the cash demand created by systemic vote buying.
Ernesto Zedillo, 26 August 2015
In this column, Director of the Yale Center for the Study of Globalization and ex-President of Mexico, Ernesto Zedillo, introduces an eBook he co-edited that illustrates some of the ambitious but necessary steps needed to unleash the tremendous potential of the African people towards the development of their nations.
Graziella Bertocchi, Arcangelo Dimico, 30 July 2015
HIV/AIDS is an endemic economic problem for significant parts of Africa. This column presents evidence suggesting that the demographic shock induced by the slave trade still shapes the contemporary family structures and sexual behaviour of many African countries. Policymakers and human rights organisations should understand that the struggle against HIV/AIDS involves the eradication of deeply rooted beliefs and practices.
Sara Lowes, Nathan Nunn, James A Robinson, Jonathan Weigel, 18 February 2015
Ethnic identity can fracture nations – it is a leading explanation of the Boko Haram insurgency in Nigeria. This column presents evidence from a psychological test that reveals how members of different ethnic groups from the Democratic Republic of the Congo form their respective ethnic identities. This Implicit Association Test reveals that people have a small, statistically significant bias towards own-group. The magnitude suggests that biases are consciously held, rather than being a conditioned response.
Amir Attaran, Roger Bate, Ginger Zhe Jin, Aparna Mathur, 09 October 2014
There is a perception amongst pharmaceutical experts that some Indian manufacturers and/or their distributors segment the global medicine market into portions that are served by different quality medicines. This column finds that drug quality is poorer among Indian-labelled drugs purchased inside African countries than among those purchased inside India or middle-income countries. Substandard drugs – non-registered in Africa and containing insufficient amounts of the active ingredient – are the biggest driver of this quality difference.
Nikoloz Gigineishvili, Paolo Mauro, Ke Wang, 07 October 2014
Sustained rapid growth in many African economies has generated a debate on the sources and likely persistence of a so-called 'African growth miracle'. This column looks at the factors underlying growth in an especially vibrant part of the continent – the East African Community. It suggests that rapid growth has been for real and reasonably well diversified.
Jaime de Melo, Julie Regolo, 17 September 2014
The EU is about to extend economic partnership agreements signed in 2007 with countries of the Africa, Caribbean and Pacific region. Reflecting on the implementation difficulties associated with previous agreements and the minimal engagements in the upcoming ones, this column argues that these partnerships will fall short. No further integration of African economies will come out of them. Economic Partnership Agreements will have been a sideshow in the EU’s trade policy.
Margaret McMillan, 30 August 2014
Some argue that growth across Africa is fundamentally a result of rising commodity prices and that if these prices were to collapse, so too would Africa’s growth rates. This column documents substantial shifts in the occupational structure of most African economies between 2000 and 2010 and thus provides a good reason for cautious optimism about the continent’s economic progress.
Ejaz Ghani, 17 August 2014
Just like the East Asian Tigers, the Lions of Africa are now growing much faster than the developed economies. However, this column shows that the growth escalators in Africa are different than in East Asia. The East Asian Tigers benefitted from a rapidly expanding manufacturing sector. The African Lions are benefitting from increases in productivity in the service sector, while the agricultural sector remains unproductive.
Marco Annunziata, 16 August 2014
Africa has generated a lot of enthusiasm lately. The cynical view of the continent as a hopeless basket case has been replaced by the lofty narrative of Africa Rising. This column argues that Africa’s progress is impressive, and there is more to the story than a commodity boom. But Africa is at a crossroads. The opportunities are huge, but the road ahead is long, and will require persistent and patient effort from policymakers as well as business.
Emanuele Massetti, Elena Ricci, 23 July 2014
Concentrated solar power generation in Northern African and Middle Eastern deserts could potentially supply up to 20% of European power demand. This column evaluates the technological, economic, and political feasibility of this idea. Although concentrated solar power is a proven technology that can work at scale, it is currently four or five times more expensive than fossil fuels. Concentrated solar power could play an important role in Europe’s energy mix after 2050, but only if geo-political challenges can be overcome.
Denis Cogneau, Alexander Moradi , 17 May 2014
The quasi-experiment of arbitrary border design allows for causal interpretation of institutional effects across territories. This column presents evidence on the impact of British and French colonial education policies in West Africa. British flexibility and French centralisation resulted in educational attainment differences that persist – across one border – even among some cohorts of the current workforce.
Julia Cagé, Valeria Rueda, 14 May 2014
African regions where Protestant missionaries were active had indigenous newspapers a century before other regions. This column argues, based on new research, that this difference has had lasting effects. Proximity to a mission that had a printing press in 1903 predicts newspaper readership today. Population density and light density (a proxy for economic development) is also higher today in regions nearer to missions that had printing presses. The results suggest that a well-functioning media – not Protestantism per se – was important for development.
Joachim De Weerdt, Kathleen Beegle, Jed Friedman, John Gibson, 18 February 2014
Whereas the Millennium Development Goal of reducing extreme poverty by half was achieved by 2010, the global hunger rate has only fallen by a third since 1990. Differences in survey design may account for part of this discrepancy. This column presents the results of a recent experiment in which households were randomly assigned to different survey designs. These different designs yield vastly different hunger estimates, ranging from 19% to 68% of the population being hungry.
Leonardo Iacovone, Vijaya Ramachandran, 07 February 2014
There is an urgent need for job creation in Africa yet something seems to be stunting firm growth. This column shows that African firms are about 20% smaller than their counterparts in other locations. It suggests small firms put the brake on growth as the burden of dealing with government and labour costs may increase with size, or perhaps as they start facing trust issues between managers and workers.
Ameet Morjaria, 05 February 2014
Ethnic favouritism is a longstanding problem in Africa. This column presents new evidence of this phenomenon and how democracy affects it. Data on road building in Kenya confirms strong ethnic favouritism that disappears during periods of democracy.
Holger Görg, Christiane Krieger-Boden, Adnan Seric, 10 December 2013
An expansion in the scope of foreign direct investment in sub-Saharan Africa promises to promote development in one of the poorest regions of the world. This column investigates the extent to which working with foreign multinationals enhances the capabilities of African firms. Acting as a supplier to a multinational enterprise improves a firm’s labour productivity, product and process innovation, while buying from a multinational improves only labour productivity. Governments should take advantage of these spillovers by promoting trade.