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901. The Impact of E-Wallet Fertilizer Subsidy Scheme and its Implication on Food Security in Nigeria

Author:
Reuben Adeolu Alabi and Oshobugie Ojor Adams
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This study examined the impacts of the e-wallet fertilizer subsidy scheme on quantity of fertilizer use, crop output and yield in Nigeria. The study made use of the Nigeria General Household Survey (GHS)-Panel Datasets of 2010/2011 and 2012/2013 which contain 5,000 farming households in each of the panel. We applied relevant evaluation techniques to analyse the data. The results of the impact analysis demonstrate that the scheme has generally increased the yield, crop output and quantity of fertilizer purchase of the participating farmers by 38%, 47%, and 16%, respectively. The study concludes that increased productivity, which the scheme engenders, can help to reduce food insecurity in Nigeria. Provision of rural infrastructure, such as good road network, accessibility to mobile phones, radio, etc., will increase accessibility of the small-scale farmers to the scheme or any other similar agricultural schemes in Nigeria.
Topic:
Agriculture, Development, Economics, Income Inequality, Economic Growth, and Rural
Political Geography:
Africa and Niger

902. The Exchange Rate Pass-Through to Inflation and its Implications for Monetary Policy in Cameroon and Kenya

Author:
Dongue Ndongo Patrick Revelli
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
Understanding how domestic prices adjust to the exchange rate enables us to anticipate the effects on inflation and monetary policy responses. This study examines the extent of the exchange rate pass-through to the Consumer Price Index in Cameroon and Kenya over the 1991-2013 period. The results of its econometric analysis shows that the degree of the exchange rate pass-through is incomplete and varied between 0.18 and 0.58 over one year in Kenya, while it varied between 0.53 and 0.89 over the same period in Cameroon. For the long term, it was found to be equal to 1.06 in Kenya and to 0.28 in Cameroon. A structural VAR analysis using impulse-response functions supported the results for the short term but found a lower degree of pass-through for the exchange rate shocks: 0.3125 for Kenya and 0.4510 for Cameroon. It follows from these results that the exchange rate movements remain a potentially important source of inflation in the two countries. Variance decomposition shows that the contribution of the exchange rate shocks is modest in the case of Kenya but significant in that of Cameroon.
Topic:
Development, Economics, Monetary Policy, Exchange Rate Policy, Economic Policy, and Inflation
Political Geography:
Kenya, Africa, and Cameroon

903. The Impact of Regulations on Investment in Mobile Telephone Infrastructure in Southern African Development Community Countries

Author:
Albert Makochekanwa
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
The main objective of the study was to investigate the impact of policy regulations on investments in mobile telecommunications network infrastructure in all the 15 member countries of the Southern African Development Community (SADC) region. The research employed panel data econometrics to achieve its stated objective. Estimated results shows that the coefficient of gross domestic product (GDP) per capita is positive and statistically significant, implying that an increase in this variable results in increase in demand and this in turn motivates infrastructure investment in mobile telephone. The coefficient on the previous level of mobile telephone infrastructure investment variable (Invkt-1) was found to be positive and statistically significant. This means that there is a systematic positive association between the previous level of mobile telephone infrastructure investment and the current. The coefficient of the main variable of interest representing mandatory unbundling (Regkt) was found to be positive and statistically significant. This implies that, overall, mandatory unbundling access regulation boost infrastructure investment in mobile telecommunication. Regression estimates shows that the coefficient on one of the variable of interest, political constraint (POLCON) has a negative and statistically significant impact on determining the level of mobile telephone infrastructure investment in SADC countries. Whilst this result is against expectations, one possible explanation may be presence of high level of rent seeking behaviour.
Topic:
Development, Economics, Regulation, Economic Growth, and Economic Policy
Political Geography:
Africa and South Africa

904. Jal Jeevan Mission

Author:
Avani Kapur and Vastav Irava
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
In Financial Year (FY) 2019-20, the National Rural Drinking Water Mission (NRDWM) was restructured and subsumed into Jal Jeevan Mission (JJM). It is Government of India’s (GoI’s) flagship rural drinking water programme to provide functional tap connections to every household for drinking, cooking, and other domestic needs on a sustainable basis. Using government data, this brief reports on: Overall GoI allocations; Trends in releases and expenditures; Component-wise trends; and Progress on coverage.
Topic:
Development, Government, Water, Infrastructure, Budget, Finance, and Rural
Political Geography:
South Asia and India

905. Restraining Ourselves: Helping by Not Hurting

Author:
Nathan Nunn
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
In this brief, I discuss the current state of economic development policy, which tends to focus on interventions, usually funded with foreign aid, that are aimed at fixing deficiencies in developing countries. The general perception is that there are inherent problems with less-developed countries that can be fixed by with the help of the Western world. I discuss evidence that shows that the effects of such ‘help’ can be mixed. While foreign aid can improve things, it can also make things worse. In addition, at the same time that this ‘help’ is being offered, the developed West regularly undertakes actions that are harmful to developing countries. Examples include tariffs, antidumping duties, restrictions on international labor mobility, the use of international power and coercion, and tied-aid used for export promotion. Overall, it is unclear whether interactions with the West are, on the whole, helpful or detrimental to developing countries. We may have our largest and most positive effects on alleviating global poverty if we focus on restraining ourselves from actively harming less-developed countries rather than focusing our efforts on fixing them.
Topic:
Development, Economics, International Political Economy, Developing World, and Economic Development
Political Geography:
United States and Global Focus

906. No Peace Without Justice in Afghanistan

Author:
Huma Saeed
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
Afghanistan’s presidential election took place on September 28, 2019, with less than 2 million people participating out of 9.7 million registered voters. Taking into consideration Afghanistan’s total population of 35 million, the turnout was a historic low—a problem further amplified by the fact that the government poured a huge amount of financial and human resources into election preparation. The main explanation for such low turnout is twofold. On the one hand, security threats such as suicide attacks or gun violence—which reached their peak during the presidential election campaigns—deterred many people from going to polling stations. On the other hand, Afghans have become wary about determining their own political fate because, for decades, regional and international powers have steered the political wheel in Afghanistan, rather the people. After four months, election results have still not been announced, leading to further speculation and anxiety among a population which has already been the victim of four decades of violent conflict in the country. This anxiety is further exacerbated by the ongoing “peace” negotiations with the Taliban. Afghan people have learned from experience that, even in the best-case scenario of the election results or peace negotiations, they cannot hope for new justice measures to heal their wounds. As demonstrated by the experience of Afghanistan and other countries, peace and security will not last without addressing the people’s demands for justice.
Topic:
Development, Human Rights, Politics, Elections, Taliban, and Justice
Political Geography:
Afghanistan, Central Asia, and Middle East

907. Building a Multi-Directional Transnational Solidarity Movement

Author:
Jeff Bachman
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
Transnational solidarity movements have typically flowed from a central point located in the West, particularly in the United States, to the East and the Global South. Shadi Mokhtari describes this phenomenon as the “traditional West-to-East flow of human rights mobilizations and discourses.” Viewed individually, this phenomenon is not problematic in all cases. However, as Mokhtari argues, this one-directional flow of human rights politics precludes non-Western non-governmental organizations (NGOs) from weighing in on human rights violations committed in the United States. Human rights violations in the United States are typically experienced by marginalized communities, from the mass incarceration and disenfranchisement of African-Americans to the detention and ill-treatment of immigrants, migrants, and refugees. For a truly global human rights movement to emerge—one that is not grounded in Western paternalism and perceived moral superiority—this must change.
Topic:
Development, Human Rights, Post Colonialism, Immigration, Refugees, NGOs, and transnationalism
Political Geography:
Global Focus and United States of America

908. China’s Growing Engagement with the UNDS as an Emerging Nation: Changing Rationales, Funding Preferences and Future Trends

Author:
Mao Ruipeng
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
As China deepens its engagement in global governance and development, its strategic motivation and rising influence within the UN and on international rules and norms are attracting the world’s attention. This paper focuses on China’s engagement with the UNDS, specifically Chinese funding and allocation decisions. China’s UNDS funding has risen rapidly since 2008 and even accelerated in 2013. Between 2013 and 2017, Chinese funding (excluding local resources) grew at an annual average rate of 33.8 per cent. In 2017, its total contribution reached USD 325.869 million. China’s shares of core funding and assessed contribution in its total UNDS funding are much higher than traditional donor countries. However, the share of non-core funding has also jumped. While China tends to mostly provide funds for UNDS development projects, in recent years it has also been hiking funding for humanitarian assistance. This paper also examines three cases of China’s earmarked funding – to the UNDP and the WFP, which receive the largest share of its UNDS funds, as well as for UNPDF operations, which count as a voluntary contribution. There are several reasons for China’s growing engagement with the UNDS, from evolving perception of foreign aid and appreciating the UN’s multilateral assets to fostering the reputation of “responsible great nation” and pushing forward the Belt and Road Initiative (BRI) through cooperation with the UNDS. In general, China continues to integrate into the global development system, and can be expected to maintain its support for the UN and continue to contribute to the UNDS.
Topic:
Development, International Law, United Nations, Belt and Road Initiative (BRI), and Norms
Political Geography:
China and Global

909. African Jobs in the Digital Era: Export Options with a Focus on Online Labour

Author:
Elvis Melia
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This study asks what impact the Fourth Industrial Revolution will have on job creation and catchup development in Sub-Saharan Africa over the coming decade. Can light manufacturing export sectors still serve African development the way they served East Asian development in the past? If factory floor automation reduces the need for low-cost labour in global value chains, can IT-enabled services exports become an alternative driver of African catch-up development? I present case study evidence from Kenya to show that online freelancing has become an interesting sector, both in terms of its growth trajectory, and in terms of worker upward mobility in the global knowledge economy. As life everywhere moves further into the digital realm, and global internet connectivity between Africa and the rest of the world grows, more and more young Africans who stream onto the labour market may find work in the world of global online freelancing. I discuss the building blocks needed to make online work a sustainable vehicle for African catch-up development in the years ahead.
Topic:
Development, Science and Technology, Labor Issues, Internet, Exports, Manufacturing, and Industry
Political Geography:
Kenya and Africa

910. Digitalisation and its Impact on SME Finance in Sub-Saharan Africa: Reviewing the Hype and Actual Developments

Author:
Sabrina Disse and Christoph Sommer
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The vast majority of enterprises worldwide can be categorized as small and medium-sized enterprises (SMEs). They play a crucial role in providing a livelihood and income for diverse segments of the labour force, in creating new jobs, fostering valued added and economic growth. In addition, SMEs are associated with innovation, productivity enhancement as well as economic diversification and inclusiveness. However, almost half of the formal enterprises in low and middle-income countries (LMICs) are financially constrained, meaning that SMEs’ financing needs are unserved or underserved. Digitalisation is often seen as game changer that overcomes the challenges of SME finance by capitalising on the reduced transaction costs, the broader access to more and alternative data and the new customer experience shaped by convenience and simplicity. This paper aims to answer the question what the role of digital financial instruments in SME finance in Sub-Saharan Africa is. It reviews and discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity. It contrasts the hype around digital finance with actual market developments and trends in Africa. Main findings indicate that even though digital advances have led to impressive growth of certain digital finance instruments, it has not triggered a remake of the financial system. Digitalisation of the financial system is less disruptive than many expected, but does gradually change the financing landscapes. Some markets have added innovative and dynamic niches shaped by digital financial services, but new digital players have in general not replaced the incumbents. Furthermore, the contributions of digital instruments to finance in general and SME finance in particular are still very limited on the African continent compared to either the portfolio of outstanding SME finance by banks or the capital raised by similar innovative instruments elsewhere in the world. Many uncertainties remain, most importantly the response of regulators and responsible authorities. They need to provide a suitable legal framework to strike a balance between the innovation and growth aspiration of the digital finance industry and the integrity and stability of markets and the financial system at large. Also regulators have to safeguard data privacy and cybersecurity and prevent illicit financial flows, bad practices around excessive data collection, intransparency and poor reporting as well as exploitation of vulnerable groups with limited financial literacy. Governments also have to address the increasing gap towards those left behind by digital finance due to issues with ownership of a digital device, mobile network coverage and the internet connection or issues of basic digital and financial literacy.
Topic:
Development, Science and Technology, Digital Economy, Business, Economic Growth, and Diversification
Political Geography:
Africa