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281. Nigeria: Elections and Continuing Challenges

Author:
Robert I. Rotberg
Publication Date:
04-2007
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Nigeria's vital importance for Africa's political development, for U.S. and European interests, and for world order cannot be exaggerated. Nigeria's sheer aggregate numbers—possibly as many as 150 million of the full continent's 800 million—and its proportionate weight in sub-Saharan Africa' s troubled affairs, make the country's continuing evolution from military dictatorship to stable, sustained democracy critical.
Topic:
Democratization and Economics
Political Geography:
Africa, Europe, and Nigeria

282. Does Influence-Peddling Impact Industrial Competition? Evidence from Enterprise Surveys in Africa

Author:
Vijaya Ramachandran, Manju Kedia Shah, and Gaiv Tata
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Prior research has emphasized that the high costs and risks arising from a poor investment climate—lack of clear property rights, macro-instability , the burden of regulation and taxation, poor infrastructure, lack of finance, and lack of human capital—have impeded the development of the private sector in sub-Saharan Africa, despite adoption of structural adjustment and liberalization policies. Given the resulting wide differentials in productivity, it is not surprising that most of the African manufacturing sector has not been competitive in exports. However, trade liberalization should have had greater impact on domestic markets for manufactured goods in Africa, leading to either a rapid decline in the size of the manufacturing sector due to import competition, or to a rapid increase in productivity of surviving enterprises. In fact, neither has happened to any significant degree over the last 20 years.
Topic:
Development, Economics, and Regional Cooperation
Political Geography:
Africa

283. What About Women? The Failure of HIV/AIDS Initiatives to Address the Needs of African Women

Author:
Victoria Okoye
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
Africa Policy Information Center
Abstract:
HIV/AIDS continues to claim the lives of more African men, women and children than any other disease or conflict. As populations across the continent experience the destructive effects of this pandemic, the most marginalized communities feel the brunt. Africa Action calls for a new and intense international focus on the situation of African women, as the only effective means to combat this pandemic.
Topic:
Economics, Health, and International Organization
Political Geography:
Africa

284. Africa: Confronting Complex Threats

Author:
Kwesi Aning
Publication Date:
02-2007
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
Africa is grappling with several difficult security challenges. These difficulties result not only from the magnitude of these challenges, but also from the lack of capacity of African states and organizations to respond quickly and effectively to them. While wide swathes of Africa are compelled to deal with problems in an ad hoc manner, there are indications that some states, Regional Economic Communities (RECs) and the African Union (AU) are undertaking promising steps to respond. Some of Africa's core security challenges are (a) the legacy of historic notions of state sovereignty; (b) the rise of regionalism in the absence of common regional values; (c) the difficulty of managing hegemonic regionalism; (d) elitism in the form of regional integration occurring only at the level of leaders without permeating the consciousness of the people; (e) the creation of institutions with little or no capacity to manage them, resulting in a merely formal regionalism; and finally (f) the perception of regionalism as an externally driven project.
Topic:
Conflict Prevention, Development, and Economics
Political Geography:
Africa

285. Credit Elasticities in Less-Developed Economies: Implications for Microcredit

Author:
Dean Karlan and Jonathan Zinman
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Policymakers often prescribe that microfinance institutions increase interest rates to eliminate reliance on subsidies. This strategy makes sense if the poor are rate insensitive: then microlenders increase profitability (or achieve sustainability) without reducing the poor's access to credit. We test the assumption of price inelastic demand using randomized trials conducted by a consumer lender in South Africa. The demand curves are downward-sloping, and steep for price increases relative to the lender's standard rates. We also find that loan size is far more responsive to changes in loan maturity than to changes in interest rates, which is consistent with binding liquidity constraints.
Topic:
Development, Economics, and Markets
Political Geography:
Africa and South Africa

286. Why Are There So Few Black-Owned Firms in Africa? Preliminary Results from Enterprise Survey Data

Author:
Vijaya Ramachandran and Manju Kedia Shah
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Much of the growth in Sub-Saharan Africa in the past decade has come from extractive industries, rather than from private, entrepreneurial activity. Furthermore, non-extractive activity in the private sector is often dominated by firms owned by ethnic minorities. This paper analyzes the characteristics of the formal private sector in five countries in sub-Saharan Africa, with a particular emphasis on Black African-owned (indigenous) firms. We find that indigenous firms start smaller and grow more slowly; however their rate of growth is positively influenced by whether the owner-entrepreneur has a university degree. We do not find overwhelming evidence that credit is the binding constraint but we do find that indigenous firms get less access to trade credit than firms owned by minority entrepreneurs. Finally, we discuss policy solutions that might enable a larger number of indigenous entrepreneurs to enter and survive in a vibrant, multi-ethnic private sector.
Topic:
International Relations, Development, Economics, and Humanitarian Aid
Political Geography:
Africa

287. What's in it for Labour? Private social standards in the cut flower industries of Kenya and Tanzania

Author:
Lone Riisgaard
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Export of cut flowers from East Africa to Europe is an example of how tightened quality regulations and increasing concern with social and environmental issues have created a highly codified industry. For producers participating in value chains driven by large retailers, adopting social and environmental standards is a requirement and specificities are dictated by the buyers. In this paper focus is on private social standards and the opportunities and challenges they pose for labour organizations, especially trade unions. By incorporating the concept of labour agency, global value chain analysis is widened to encompass not just industrial development but also labour development.
Topic:
Agriculture, Economics, and Emerging Markets
Political Geography:
Kenya, Africa, Tanzania, and East Africa

288. The role of freight transport in economic development: An analysis of the interaction between global value chains and their associated transport chains

Author:
Poul Ove Pedersen
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The purpose of this paper is first to discuss the paradox that freight transport, which so clearly is an important prerequisite for the processes of regional development and economic internationalisation and globalisation, since the 1970s has almost vanished from mainstream economic geography and development studies, and is most often hardly mentioned in studies of international industrial development and global commodity or value chains. Secondly, the paper discusses the consequences of leaving freight transport out of the value chain analyses and argues that it has had serious consequences for economic development especially in the peripheral parts of the world, not least in Africa, and for our understanding of rural poverty.
Topic:
Development, Economics, Globalization, and Third World
Political Geography:
Africa

289. The Spice Industry in Tanzania: General Profile, Supply Chain Structure, and Food Standards Compliance Issues

Author:
Evelyne Lazaro and Adam Akyoo
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The fall in the agricultural sector's contribution to Tanzanian export earnings since the early 1990s has increased attention toward new crops with the potential of supplementing the country's traditional export crops. Particular attention has been focused upon identifying crops enjoying price stability, high demand elasticity and low substitutability. Spices fall into this category. Consequently there have been efforts by public agencies and private exporters, both on the mainland and on Zanzibar, to promote the crop. However, access to high value export markets raises issues of supply chain dynamics and conformity with international standards. This paper focuses upon the recent history of the spice industry in Tanzania with reference to these issues. The main conclusions are that Certified Organic standards are the only international standards complied with, and that a very loosely coordinated chain exists alongside a more coordinated one. Macro- and micro-institutional weaknesses need attention if the full potential of the sub-sector is to be realized.
Topic:
Economics, Health, and Industrial Policy
Political Geography:
Africa, Zanzibar, and Tanzania

290. The economics of certified organic farming in tropical Africa: A preliminary assessment

Author:
Simon Bolwig and Peter Gibbon
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The paper examines the relative profitability of certified organic and conventional farming operations in tropical Africa as well as differences between organic and conventional farmers in rates of adoption of farming practices and in household factor endowments. The paper is based on three surveys in Uganda of smallholder farmers of respectively, organic coffee, cocoa, and pineapple and of matching control groups of conventional farmers. Organic production was in all cases organised on a contract farming-type basis, in schemes operated by the firm exporting the organic product. The central conclusion from the study is that farms that engaged in certified organic export production were significantly more profitable in terms of net farm income earnings than those that engaged only in conventional production. This was the result of generally significant differences between organic and conventional farmers' gross farm incomes, although these differences were further amplified by differences in costs. Income differences related partly to differences between organic and conventional farmers' factor endowments. Preliminary analyses indicted that, among factor endowments, area under crops subject to organic certification (CSC) and numbers of CSC plants had the strongest relations to farmers' sales volume and incomes,. Labour availability and average age of CSC plants had a much lower level of importance. As for other factors, yields were strongly related to sales volumes, but average price received was of lesser importance. The precise relative contribution of these different factors to sales volumes and incomes remains to be established in a further paper, however. The results for average net income also show enormous differences in profitability between organic farmers of different cash crops, with pineapple farmers earning three and five times more than cocoa and coffee farmers, respectively. It is worth underlining that, in contrast to the experience in developed countries, we found that organic conversion in tropical Africa is associated with increases rather than reductions in yield, which relates to the low-input characteristics of conventional farming on the continent. Focus group interviews suggest that organic farmers enjoyed higher yields due to more effective farm management technique, but the survey results on rates of adoption of yield-enhancing farming practices could not verify this.
Topic:
Agriculture, Development, and Economics
Political Geography:
Uganda and Africa