Tag Archives: William Easterly

Quick Hits On Development

25 January 2013

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Dear readers, this is your quarterly reminder to remind your friends (because I know you wouldn’t fall for this) in the development industry to shake off the messiah complex they may have developed in the course of their work.

1. Satire, courtesy of I Studied Abroad in Africa:

You go to one of those fabulously elitist schools where everyone talks about privilege, classism, racism, sexism, etc. as if they don’t practice it in real life. But in order to really see the world, they decide to go somewhere where they can understand what their privilege looks like. So they choose AFRICA! Yay! A whole continent dedicated to helping [non-Africans] people understand what it means to be poor and undeveloped.

2. Bill Easterly on the Ideology of Development: This is an old piece (from 2007) but which should be required reading every week for development expats experts and the wider Global Bleeding Hearts Industrial Complex.

The ideology of Development is not only about having experts design your free market for you; it is about having the experts design a comprehensive, technical plan to solve all the problems of the poor. These experts see poverty as a purely technological problem, to be solved by engineering and the natural sciences, ignoring messy social sciences such as economics, politics, and sociology [This is also a warning to all you mono-issue activists out there. Life is complicated. Accept that fact and move on].

3. And this is how the Canadian International Development Agency, CIDA, defines international development on its website (granted it is in the youth, 13-16, section, but still):

International development is the term used to describe the activities that developed countries, called donor countries, like Canada, carry out to help poor or developing countries lift themselves out of poverty and raise their standard of living to one that is closer to the standard of living we have in Canada. About 2.6 billion people (about two out of five) live on less than $2 per day.

To reduce poverty, donor countries, like Canada, provide developing countries with technical expertise, goods and money.

 

Rational Impatience and marshmallows (and development)

13 October 2012

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Back in 1972 Stanford psychologist Walter Mischel conducted experiments in which he claimed to show a correlation between patience and later success in life – in the experiment kids who could wait for 15 minutes before getting two marshmallows, instead of eating one immediately, were likely to be more successful and self-controlled later in life. Michel attributed patience and self-control to some of the kids’ innate capacities.

It turns out that that might not be the case after all. Researchers in Rochester revisited the experiment and show that kids’ choices over whether to wait or not are “moderated by beliefs about environmental reliability,” in other words, kids react rationally to the proposed deal based on prior experience.

According to Celeste Kidd (more on this here), a University of Rochester grad student and lead author on the study:

“Being able to delay gratification — in this case to wait 15 difficult minutes to earn a second marshmallow — not only reflects a child’s capacity for self-control, it also reflects their belief about the practicality of waiting,”

Adding that:

“Delaying gratification is only the rational choice if the child believes a second marshmallow is likely to be delivered after a reasonably short delay.”

This reminded me of the interesting works in economic history (gated, sorry) that try to tackle issues of culture and socialization and their role in economic development. The punchline from these works is that group-specific socio-cultural values have long-lasting effects on attitudes towards investment, saving, entrepreneurship and ultimately economic development (Think of the fabled frugality and self-discipline of Weber’s protestants). Putting some of the critiques of these works aside for a moment, they are a reminder of just how COMPLEX development is.

Because material conditions both shape and are a result of prevailing cultural norms and practices (both Marx and Weber were right!) it becomes difficult to change one thing while ignoring the other (And this is even before you open the pandora’s box, viz: POLITICS). To put it simply, you cannot increase the investment rate in a society simply by throwing money at people. They will spend it on a new shrine for their god or marry a third wife.

This is not to say that it is impossible to transform entire societies in a short while, just that it is not easy, and that we should be humble enough to accept this fact when thinking about how to promote economic development in the bottom billion societies of the world.

How I would not lead the World Bank – Bill Easterly

5 March 2012

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For those, like me, who still miss Aid Watch, here is Easterly over at FP:

I would not appoint U.S.-educated elites vetted by their autocratic home governments to represent the underrepresented peoples of the world. I would not negotiate the contents of World Bank reports with governments in either the West or the Rest, except possibly for correcting typos.

I would not lead the World Bank by perpetuating the technocratic illusion that development is something “we” do to “them.” I would not ignore the rights of “them.” If the New York Times should happen to report on the front page that a World Bank-financed project torched the homes and crops of Ugandan farmers, I would not stonewall the investigation for the next 165 days, 4 hours, 37 minutes, and 20 seconds up to now.

More on this here.

And for more on leadership selection at IFIs see CGD’s policy brief here.

Aid Watch winds up

18 May 2011

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I hope that William Easterly and Laura Freschi of Aid Watch will reconsider resuming blogging in the near future. Their insights on development matters have been most valuable. I remember, as a college student in wintry New Haven, experiencing a change in my approach to development issues after reading The White Man’s Burden. I read it a few months after reading The End of Poverty while volunteering in the summer at a hospital in eastern Ghana.

I wonder how things would have turned out – as far as my opinion goes in the Easterly-Sachs debate – if I had read the two books in reverse.

Although the blog’s skepticism over interventionist prescriptions oftentimes left me jaded about the prospect of ending poverty in our time, I liked the diversity of the subject coverage and the authors’ dogged commitment to holding aid do-gooders’ feet to the fire.

Finding a substitute for Aid Watch will be hard.

quick hits

6 May 2011

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The long awaited discussion about the real content of higher education in Africa is underway. Be a part of it.

The DRC is getting ahead of itself with elections. One wonders whether holding elections is the wisest thing to do right now. Wars raging in the east. A country the size of western Europe but with the most rudimentary infrastructure. Loads of mineral wealth that create a few billionaires – most of them non-Congoleses – while the real Congolese starve or eke out a living with one eye on the lookout for marauding rebels and government forces thugs. The DRC is one big mess in need of radical clean up. Kabila simply will not do it. But he will win these elections for sure. And that means more instability in the great lakes region.

I just found out that I shall be in Zambia for the election campaigns – elections due in October – so watch this space for stuff on Zambian politics this August and September.

And lastly, China is upping its involvement in the Kenyan economy. According to Business Daily:

Several Chinese manufacturers are already setting up local production plants in Kenya, shifting from the previous strategy in which they supplied the domestic consumer market with goods imported from their home country.

More jobs = lower infant mortality rates. Everybody wins.

Some quick thoughts

14 February 2011

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Grinding poverty and the lack of innovative thinking among their home governments continue to force most Africans to buy second hand-clothing. The few textile industries on the Continent (with a few exceptions in West Africa) are small operations geared mainly for exports – mostly under AGOA to the US. Special interests (second-hand clothes importers), poor economic policies (many countries killed their own nascent textile sectors) and dumping of textiles from the east are to blame.

The result is the indignity of having to buy used underwear or live in a parallel universe in which the Steelers won Super Bowl XLV.

A post on the related topic of the politics of appropriate aid-giving  is here.

In other news, Blattman makes the observation that younger leaders in Africa, because of their different upbringing, will be different from the independence leaders. I beg to differ. Spatial distribution based on ethnicity and malapportionment against urban centres, mixed with the toxicity of ethnic politics will continue to perpetuate rural, ethnic-based tyranny in most of Africa. The fact that University of Nairobi student council elections invariably go tribal says it all.

The current changes in the Arab world should be a wake-up call for most of Africa. Soon enough the set of examples of poor governance and general mediocrity will shrink from Africa, the Middle East and South Asia to just Africa.

elections and democracy in the central african republic

25 January 2011

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The Central African Republic is a country the size of Texas with a population of 4.8 million and GDP that is “significantly smaller than that of Pine Bluff, Arkansas.” Since independence from France, a string of autocrats (including the infamous Emperor Bokassa), have held power in Bangui without much care for the hinterlands. The current president, Francois Bozize, seized power in a 2003 coup. In response to domestic and international pressure, well orchestrated elections were held last Sunday.

Mr. Bozize’s “Work nothing but Work” (KNK) party is expected to win. In 2008 he signed a peace agreement with several rebel movements spread throughout the country that were opposed to his rule. Elections were part of the deal.

But of what use are elections in places like Central African Republic?

“William Easterly recently argued that “good governance” rhetoric notwithstanding, aid to dictators has remained steady since 1972. The rich countries no long have strategic interests at stake, but the “Gerund Defense” enables donors to keep the money flowing: with only a few exceptions, no matter how corrupt or autocratic a regime, it could be said to be “developing” or “democratizing” and hence on a progressive course necessitating assistance. But the dictators hold “farcical ‘elections’” and nothing changes. If we take Easterly’s warning seriously and start to question the progressivist aid ideology, what should we do about those places where elections occur, and aren’t exactly farcical, but meaningful democracy – in which citizens’ grievances and claims are taken seriously and responded to by their political leaders – remains elusive? The Central African Republic (CAR), whose citizens voted in first-round presidential and legislative elections Sunday, is one such place. In the end, the case of places like CAR might prove more insidious, because it calls into question the definitional link between elections and democracy.”

More on this here

exactly when did the rain start beating africa?

9 December 2010

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HDI divergence

The new HDI rankings are out. Some in the blogosphere have beef with the new geometric (as opposed to additive) method of calculating final scores. I don’t.

Aid Watch’s beef is that:

The biggest change in method was that the new HDI is a geometric average rather than a normal (additive) average. Geometric average means you multiply the separate indices (each ranging between 0 and 1) for income, life expectancy, and education together and then take the cube root (I know your pulse starts to race here…)

Now, students, please notice the following: if one of these indices is zero, then the new HDI will be zero, regardless of how great the other indices are. The same mostly applies if one of the indices is close to zero. The new HDI has a “you’re only as strong as your weakest link” property, and in practice the weakest link turns out to be very low income (and guess which region has very low income).

My two cents on this discussion is that the Continent looks bad irrespective of how we arrive at its HDI scores. It’s best performers are tiny Botswana and Mauritius. It’s biggest countries and potential engines for growth are the DRC, Ethiopia and Nigeria, need I say more? And per capita income has not changed in most places in half a century.

I rarely disagree with Easterly but on this count I do. Let’s not shift posts for Africa. The idea of “African Standards” is condescending and demeaning to Africans. Norway and Chad look like they are eons apart. If the numbers reflect that fact so be it.

I hope this year’s report embarrasses the African ruling elite enough to wake them up from their stupor (come on, I am allowed one wishful thought per post).

More on this here and here. For a summary of this see Blattman.

frustrations of the african intellectual

19 October 2010

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William Easterly on Aid Watch captures the frustrations of African intellectuals and their continued neglect by both the aid industry and their home governments.

African intellectuals continue to be on the periphery of the discourse on African socio-economic development. The independence leaders jailed, killed or exiled many of them, leading to fifty years of disastrous misrule and general mediocrity from Dakar to Mogadishu, Khartoum to Jo’burg. The current crop of autocrats and pretend-democrats did not learn a thing from the last half-century and continue to opt for career poverty-voyeurs development experts from donor countries instead of their own people who may have greater incentives to see their homeland match the achievements of the newly emerging states of Brazil, India and China.