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21. Explaining Wellbeing and Inequality in Cameroon: A Regression-Based Decomposition

Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This study sets out to estimate the determinants of household economic wellbeing and to evaluate the relative contributions of regressed-income sources in explaining measured inequality. In particular, a regression-based decomposition approach informed by the Shapley value, the instrumental variables econometric method, and the 2007 Cameroon household consumption survey, was used. This approach provides a flexible way to accommodate variables in a multivariate context. The results indicate that the household stock of education, age, credit, being bilingual, radio and electricity influence wellbeing positively, while rural, land and dependency had a negative impact on wellbeing. Results also show that rural, credit, bilingualism, education, age, dependency and land, in that order, are the main contributors to measured income inequality, meanwhile, the constant term, media and electricity are inequality reducing. These findings have policy implications for the ongoing drive to scale down both inequality and poverty in Cameroon.
Topic:
Development, Economics, Poverty, Inequality, Economic Inequality, and Economic Policy
Political Geography:
Africa and Cameroon

22. Participants in Non-Farm Activities in Rural Sudan: Patterns and Determinants

Author:
Ebaidalla M. Ebaidalla
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
Despite the importance of non-farm income in the livelihood of the rural population in Sudan, information available on its size and determinants is scanty. This study examined the patterns and determinants of decisions to participate in non-farm activities in rural Sudan. It also investigates whether the determinants of participation in non-farm activities vary across agriculture sub-sectors and income groups as well as among males and females. The data for this study was sourced from the Sudanese National Baseline Household Survey (NBHS) conducted by Sudan’s Central Bureau of Statistics in 2009. The results show that non-farm income is a crucial source of livelihood, contributing about 43% to household income in rural Sudan. The results of multinomial logit and probit estimation methods indicate that educational level, mean of transportation, lack of land and lack of access to formal credit are the most significant factors that push rural farmers to participate in non-farm activities. Surprisingly, the effect of household income was positive and significant, implying that individuals from rich households have higher opportunity to engage in non-farm activities compared to their poor counterparts. Moreover, the analysis revealed some symptoms of gender and location disparities in the effect of factors that influence participation in non-farm activities. The study concluded with some recommendations that aim to enhance the engagement in non-farm activities as an important diversification strategy to complement the role of the agriculture sector in improving rural economy in Sudan.
Topic:
Agriculture, Development, Economics, and Rural
Political Geography:
Sudan

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. Mining and R&D of Rare Earth Elements: Prospects, Challenges, and Avenues for Indo-Japan Partnership

Author:
Monika Chansoria
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
The prospects for exploring seabed minerals, specifically rare earth elements (REEs) have risen courtesy technological innovations in the field of deep-sea exploration. REEs are identified as a group of 17 chemical elements in the periodic table, found relatively in abundance in the Earth’s crust. They share similar chemical and physical properties and are of vital use in a variety of sectors, including by military manufacturers and technology firms. The largest subgroup within the REEs are the 15 lanthanides. The two other elements being scandium and yttrium. Based on quantity, the lanthanides, cerium, lanthanum, and neodymium are the most produced rare earths elements. These elements earn the distinction of being ‘rare’ for their availability in quantities which are significant enough to support viable economic mineral development of the deposits. However, from a cost-effective point of view, they are not consumable. It is not economically viable to extract these elements for consumption purposes since they are not concentrated enough and remain thinly dispersed as deep as 6.4 kilometers underwater
Topic:
Development, Bilateral Relations, Partnerships, Research, Mining, and Trade
Political Geography:
Japan, India, and Asia