How I would not lead the World Bank – Bill Easterly

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

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

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

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

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?

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

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.

the mdgs

Since everyone is currently talking about the MDGs and how they may or may not be achieved on time here is a nice piece from Bill Easterly.

According to an Oxfam study, eliminating US cotton subsidies would “improve the welfare of over one million West African households – 10 million people – by increasing their incomes from cotton by 8 to 20 per cent”.

I may not always agree with Bill but I think his basic approach to development is spot on. Just like in most human endeavors (politics, economics, sports) systems based on human goodwill are bound to fail while those based on self-interestedness thrive. There is no magic bullet in development, but there is definitely a better approach than is currently being employed. Lets not forget that aid is supposed to eventually lead to self-reliance.

It is already clear that the goals will not be met by their target date of 2015. One can already predict that the ruckus accompanying this failure will be loud about aid, but mostly silent about trade. It will also be loud about the failure of state actions to promote development, but mostly silent about the lost opportunities to allow poor countries’ efficient private business people to lift themselves out of poverty.

Bono has a slightly less realistic more hopeful take on the progress towards achieving the MDGs.

slum politics

The just released results of the 2009 population census dethrones Kibera from the dubious status of Africa’s largest slum. The figures are much lower than most analysts believe. Only 170,070 people live in the slum. This compared to the oftentimes cited figure of close to a million. The total population of the immediate Nairobi area is 3.1 million.The Nation adds:

“Erasing the Kibera lie from history will need one enormous eraser. The lie has been fed to all, from poor residents of the slum who have since grown accustomed to flashing camera lights from tourists taking shots of “the biggest slum in Africa,” to schoolchildren who cram the lie everyday in geography classes.”

More interestingly…

“According to a UN report, over 90 per cent of Kibera residents pay an estimated Sh4.5 billion every year to the real owners of Kibera. This makes the Kibera a sociological paradox-a slum to the poor, a gold mine to the rich.”

And it is not just slum lords who are benefiting from Kibera’s title of biggest slum in Africa. Aid workers Easterly where are you? are also having a field day:

“there are between 6,000 and 15,000 community-based organisations working in Kibera. That is one charitable organisation for every 15 residents of Kibera. Throw in an estimated 2,000 governmental organisations, and you get a rough idea exactly how the billions of shillings pumped into “the biggest slum in the world” are spent.”