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Category: Development

Anger Without (State) Power is Folly

State power is not as easy to exercise as you’d think, especially in Africa. From an article in last Sunday’s New York Times:

The radical Islamists who control northern Mali appear incapable of managing basic services — including electricity, water and schools — and in some cases are asking for the return of state functionaries to run them, according to a delegation that went to the region for talks recently.

The Islamists allied with Al Qaeda appear to have gained a firm military hold in the north, and have subdued the local population with a brutal application of Shariah law, including public beatings, amputation and a stoning death. (…)

But the Islamists’ grasp on administering the vast desert region, which is larger than France, seems much less secure, members of the delegation said. The delegates — members of an unofficial group of concerned citizens called the Coalition for Mali — unexpectedly found themselves listening to demands from the Islamists that the government in Bamako send back bureaucrats to run state services.

“They asked for the state to resume its functions, because it’s too complicated for them to manage,” said Daouda Maïga, who used to run a state development program in Kidal, a region of nearly 70,000 people before the Islamist takeover emptied it. “They are not used to running things.”

Looks like Ansar Dine — the radical Islamic group that controls northern Mali — bit off more than it could chew.

The article excerpted above brings to mind Jeffrey Herbst’s States and Power in Africa, in which the author offers an excellent discussion of how although African states usually enjoy external legitimacy (i.e., they are officially recognized by other states), they rarely if ever enjoy internal legitimacy (i.e., they have a hard time broadcasting their power within their own borders).

How and When Is Poverty Transmitted from One Generation to the Next?

That’s the theme of a special issue of the Development Policy Review, published last month. The special issue contains papers on:

  1. Widowhood and asset inheritance in Sub-Saharan Africa, by Amber Peterman,
  2. How inheritance is a gendered and intergenerational dimension of poverty, by Elizabeth Cooper and Kate Bird,
  3. Inheritance practices and gender differences affect poverty and well-being in Ethiopia, by Neha Kumar and Agnes Quisumbing,
  4. Women, marriage, and asset inheritance in Uganda, by Cheryl Doss et al.,
  5. Intergenerational poverty traps in India, by my Sanford School colleague Anirudh Krishna, and
  6. Women and inheritance in Sub-Saharan Africa, by Elizabeth Cooper.

This is a very important topic considering that up until recently, we did not have good datasets tracking people over time. We had even fewer datasets tracking people and their children over time.

Roads to Development?

We return to two questions concerning the 19th century U.S. transportation revolution. First, to what extent were transportation improvements responsible for the large changes in the regional distribution of population in the United States and, within regions, for the changes in industry structure? Second, how important were transportation improvements for welfare gains? We find that transport improvements were the key factor driving where people lived and what industry they worked in. We also find that transport improvements were important for welfare gains: Gains over 1840-1860 would have been only half as large if there had been no transportation improvements.

From a new International Economic Review article by Berthold Herrendorf, James A. Schmitz, Jr., and Arilton Teixeira.

The emphasis is mine and, quite frankly, I’m surprised that the effect of transportation improvements on welfare is not larger. Better transportation  decreases transaction costs, which means that for many goods and services, buyers pay a lower effective price (i.e., market price plus transaction costs) and sellers receive a higher effective price (i.e., market price minus transaction costs).