The Long-Run Economic Impact of the Tse Tse Fly in Sub-Saharan Africa

The Tse Tse is estimated to have had substantial effects on precolonial Africa: a one standard deviation increase in the TSI [Tse Tse suitability index] is associated with a 23 percentage point decrease in the likelihood an African ethnic group had large domesticated animals, a nine percentage point decrease in intensive cultivation and a six percentage point reduction in plow use. A one standard deviation increase in the TSI is correlated with a 53 percent reduction in historical population density….

The TSI has a negative correlation with current economic outcomes as measured by satellite light density or the observed cattle distribution in Africa. The modern analysis is performed at the district level and is robust to including country fixed effects. The evidence suggests that the relationship between the TSI and satellite lights is driven by the Tse Tse’s effect on shaping historical institutions, particularly political centralization.

You can find the entire paper here.

HT Tyler Cowen.

On Bad Roads (in pictures)

Even presidents get stuck on bad roads when it rains. Here is President Joseph Kabila of the Democratic Republic of Congo. The DRC has a landmass of 2,267,048 sq km, and 2,794 km of paved roads.

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What can be done to increase road access in the DRC? Big projects like this will definitely help. But a big accelerator of the process will probably be urbanization. Kinshasa is the second largest city in Sub-Saharan Africa, after Lagos. Many of you probably have never heard of Mbuji Mayi, a city of about 1.7 million people (Other big cities in the DRC include Lubumbashi, Kisangani, Bukavu, and Kananga, and Tshikapa).

The projected rapid urbanization rate in Africa, and much of the developing world, is often depicted as a disaster waiting to happen (largely due to poor infrastructure and lack of jobs). But urbanization can also be seen as an opportunity to take advantage of economies of scale to provide public goods at a lower cost. It might even have a positive impact on agricultural productivity – by creating reliable concentrated markets in urban areas and possibility through greater levels of land consolidation to take advantage of scale. That said, governments will still have to build major highways linking cities, and farms with markets.