About 12% of ships around the world fly the Liberian flag

This is from The Economist:

Over 4,400 vessels (about 12% of global shipping) fly its flag. And the number is growing.

How did this happen?

The secret of this maritime success is an old practice known as the flag of convenience. In the 1920s shipowners began to register their vessels abroad for a small fee. This allowed them to avoid taxes and labour laws back home. Liberia had few regulations and made it easy to sign up. By the 1960s it had the largest merchant navy in the world.

Read the whole thing here.

Apparently, the government of Liberia makes over $20m a year from its shipping registry.

Two of the “unique advantages” cited on the registry’s website include:

Vessel Construction – The Liberian Registry does not require vessels to be constructed by a particular nation. The supplies for construction and outfitting are also free from similar restrictions. Without this type of protectionism, shipowners are allowed to search and solicit shipbuilders solely on commercial considerations, such as competence, experience, and price.

Vessel Manning – Manning requirements specified by the Liberian Registry are based exclusively on competence, international recognition and safe operation. Many national registries require manning by citizens of the country of registry. This promotes higher wages, inflated labour costs and overheads, excessive bureaucracy, and the potential for interference from organized labour.

The Liberian Registry is headquartered in Dulles, Virginia in the United States.

Since its inception, the Liberian Registry has been operated from the United States. In fact, the U.S. structure and principles governing the Administration of the Liberian Registry are embedded into Liberian law. Pursuant to these statutes, the Registry must be principally operated from the U.S. and managed by international maritime professionals for the benefit of the people of Liberia. The strong U.S. – Liberia alliance provides the Registry with the ability to participate in the international arena with key industry institutions.

People Are Brains, Not Stomachs

Alex Tabarrok over at MR has a fantastic summary of some of the works of this year’s three Nobel Prize winners in Economics. This paragraph on one of Michael Kremer’s papers stood out to me:

My second Kremer paper is Population Growth and Technological Change: One Million B.C. to 1990. An economist examining one million years of the economy! I like to say that there are two views of humanity, people are stomachs or people are brains. In the people are stomachs view, more people means more eaters, more takers, less for everyone else. In the people are brains view, more people means more brains, more ideas, more for everyone else. The people are brains view is my view and Paul Romer’s view (ideas are nonrivalrous). Kremer tests the two views. He shows that over the long run economic growth increased with population growth. People are brains.

Here is the abstract from Kremer’s QJE paper:

The nonrivalry of technology, as modeled in the endogenous growth literature, implies that high population spurs technological change. This paper constructs and empirically tests a model of long-run world population growth combining this implication with the Malthusian assumption that technology limits population. The model predicts that over most of history, the growth rate of population will be proportional to its level. Empirical tests support this prediction and show that historically, among societies with no possibility for technological contact, those with larger initial populations have had faster technological change and population growth.

Read Tabarrok’s entire post here. Highly recommended.

Since Sunday I’ve been asking around if the Prize got any mention on local radio in Busia, Kenya — the cradle of RCTs, if you will, and where Kremer conducted field experiments. No word yet. Will report if I hear anything.

The world’s largest measles outbreak has killed over 4000 people in the DRC

This is astonishing news:

The world’s largest measles outbreak has killed more than 4,000 people in the Democratic Republic of the Congo this year, according to UNICEF.

The agency found that 203,179 measles cases have been reported throughout the country’s 26 provinces since January, according to UNICEF, including 4,096 deaths. Seventy-four percent of infections and nearly 90 percent of deaths have been children under the age of five.

According to the WHO:

  • Even though a safe and cost-effective vaccine is available, in 2017, there were 110 000 measles deaths globally, mostly among children under the age of five.
  • Measles vaccination resulted in a 80% drop in measles deaths between 2000 and 2017 worldwide.
  • In 2017, about 85% of the world’s children received one dose of measles vaccine by their first birthday through routine health services – up from 72% in 2000.
  • During 2000-2017, measles vaccination prevented an estimated 21.1 million deaths making measles vaccine one of the best buys in public health.

The measles outbreak in the DRC is attributable to low immunization rates due to the country’s weak public health infrastructure. According to the UNICEF:

measles.png“We’re facing this alarming situation because millions of Congolese children miss out on routine immunization and lack access to health care when they fall sick,” said Beigbeder. “On top of that, a weak health system, insecurity, community mistrust of vaccines and vaccinators and logistical challenges all contribute to a huge number of unvaccinated children at risk of contracting the disease.”

Two doses of the measles vaccine are recommended and roughly 95 per cent of the population needs to be vaccinated to ensure immunity and prevent outbreaks, according to the World Health Organization.  In DRC, measles immunization coverage was only 57 per cent in 2018.

Emergencies like these are reminders of the unfinished business of state-building in most of the Continent, and not just post-conflict states the DRC.

A Ugandan cartoonist’s take on the country’s relations with China

uganda

The Ugandan president recently leaned on his administration to approve what will arguably be the most expensive road in the world. According to The East African:

In the letter, seen by The EastAfrican, the president directs the minister to stop an on-going procurement process in a move he calls ‘’controlling Uganda’s growing external debt’’ but which technocrats in his government say is likely to deny the country an opportunity to lower the cost of the project.

The road will cost $14.7m per kilometre.

African countries account for over 45.6% of global mobile money activity

This is from Wiza Jalakasi on Medium:

There is nowhere else in the world that moves more money on mobile phones than Sub-Saharan Africa

The region is currently responsible for an astonishing 45.6% of mobile money activity in the world — an estimate of at least $26.8 billion in transaction value in 2018 alone — this figure excludes bank operated solutions.

Mobile money operators like MTN, who also own the mobile network, typically charge in between 0.5–3% for their various digital services, a small price to pay for the convenience and luxury.

The whole thing is worth reading if you want to know about the current state (and future) of mobile money on the Continent.