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241. SACU Revenue Sharing Formula: Towards a Development Agreement

Author:
Masedi Motswapong and Roman Grynberg
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The South African Customs Union (SACU) Revenue Sharing Formula (RSF) has been revised substantively twice; once in 1969 and in 1994-2002 since the creation of the customs union in 1910 and each time the changes in the treaty were a reflection of the historic changes occurring in Southern Africa. The apartheid regime created a RSF that served to increase the share of revenue of Botswana, Lesotho and Swaziland (BLS), leaving the South African share as a residual of revenues. As this made South Africa a residual claimant it was unsustainable and required reform in the post-apartheid era. The 2002 formula increased the share to the Botswana, Lesotho, Namibia and Swaziland (BNLS) and removed South Africa as a residual claimant but did not change the fundamental economic relationship between members. While the International Monetary Fund (IMF) supports orthodox fiscal adjustment imbalances this paper argues that the order of magnitude makes those adjustment implausible and a new political arrangement is needed between South Africa and Lesotho and Swaziland to create a viable way forward for Southern African Development Community (SADC). It is argued that even in the case of Botswana and Namibia a new developmental formula, based on investing SACU revenues for regional and national development projects is needed to relieve those countries that have suffered the effects of polarization.
Topic:
Development, Regional Cooperation, Regional Integration, Economic Development, Integration, and Economic Cooperation
Political Geography:
Africa, South Africa, and Botswana

242. Combating Energy Policy in Sub-Saharan Africa

Author:
Matthias Chika Mordi
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
The Diplomatic Courier
Abstract:
With its high poverty levels and low degree of industrialization, Africa arguably faces the largest development gap of any region. Beyond the usual misery indices and welfare evaluation metrics, we have fundamental challenges that impede meaningful sustainable development. Energy is an incontrovertible challenge across sub-Saharan Africa (SSA). Data from the World Bank and International Energy Agency (IEA) on energy poverty does not make for good visuals. Two out of three of SSA households—585 million people—live without electricity. In stark contrast, 99 percent of North African households have electricity supply. Only 14 percent of rural SSA households are linked to the grid. This compares unfavorably with Latin America where 74 percent of rural households are connected to power. The figures mask a more disturbing fact about electricity supply in most SSA countries: a high frequency of blackouts and unstable power supply. The World Bank estimates that SSA households experienced 91 days of blackouts in 2007. Beyond low electrification, energy poverty extends into inefficient and perilous forms of domestic energy for cooking attributable to a lack of modern fuels and clean cookers. According to IEA reports, more than 80% of SSA households—653 million people—use biomass for cooking, with devastating consequences for people and the environment. In 2009, more than 1.45 million African lives were lost to household pollution caused by inefficient biomass cooking stoves. Fewer people died from malaria.
Topic:
Development, Energy Policy, Poverty, and Industrialization
Political Geography:
Africa and Sub-Saharan Africa

243. Resource mobilisation and fundraising in basic schools: A case study of Copperbelt and North-Western province

Author:
Malunga Syacumpi
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Like many other countries, Zambia removed a major barrier to access to primary education when it abolished user fees for Grades 1–7 in 2002. The resulting fall in basic schools’ income, however, has not been relieved by adequate government resources trickling down through the complex school funding system. In an attempt to address their funding problems, some schools have adopted fundraising ventures as a way of supplementing government resources. The successes and practicability of implementation of such ventures remain to be seen. There is a lack of information about the adequacy of such measures and no institutional framework to guide their implementation. This study explores the range of resource mobilisation and fundraising activities adopted by basic schools. It looks into how basic schools are raising funds and how these funds are being utilised based on a sample of 30 basic schools (15 each from Copperbelt and North-Western provinces). The research was conducted through questionnaires with head teachers and school accountants/bursars as well as interviews conducted at the provincial and district level.
Topic:
Development, Education, Natural Resources, Infrastructure, and Mobility
Political Geography:
Africa and Zambia

244. Food Security from the Forest: Regulating Wild Edible Plants for Household Food Security in Sub-Saharan Africa

Author:
Stephanie Shumsky
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University
Abstract:
Food insecurity caused by population and consumption growth affects one in seven people worldwide. In the past, rising food demand was addressed by increasing or intensifying agriculture; however, this has become less effective as scarce land resources stress production and environmental consequences become more pronounced. The nations of Sub-Saharan Africa are particularly vulnerable as they are import-dependent, suffer from severe land degradation and lack the resources to increase production. Globally an estimated one billion people use wild edible plants in their diet to supplement protein and vitamins, and improve palatability of staple foods. Wild foods are especially important for the poorest members of user communities, rural populations and women, particularly during critical food shortages. These products are poised to contribute significantly to household food security, but only if local management systems and national policies ensure their sustainable extraction and use. When there is a lack of effective regulation, over-harvesting of wild edible plants can occur at such high levels that resource degradation occurs. This can have lasting negative effects (ex: loss of future harvests, damage to the targeted ecosystems and surrounding areas, and loss of benefits for local populations). Although each situation is unique, there are several characteristics that correlate to successful shared resource management - namely good rules, clear boundaries, tenure rights and benefit sharing, along with public participation. As the vast majority of natural areas in Sub-Saharan Africa are managed by the state, an analysis was conducted of the formal regulatory structures for each of CIDA’s African countries of focus (and CIDA policy itself) in each of these criteria. The results offer some interesting points, raising possible areas of improvement for each party.
Topic:
Security, Development, and Food
Political Geography:
Africa

245. Understanding the Links Between Sexual and Reproductive Health Status and Poverty Reduction

Author:
Nata Duvvury and Philip Oxhorn
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University
Abstract:
The interrelationship between poverty and sexual and reproductive health status (SRHS) is widely noted in academic, policy and programmatic discourses, though none establishes causality. The primary emphasis in these discourses is that poor SRHS is an outcome of poverty, and thus can be addressed through poverty reduction programmes. The purpose of this brief is to understand what factors contribute to the interrelationship between SRHS and poverty, with a specific focus on understanding how SRHS impacts household poverty. Future studies may then focus specifically on these factors in order to address issues of causality. This brief is based on desk research involving two sources of data: 1) a review of global literature and 2) three country case studies. The global literature review examined literature documenting the nature, extent and strength of the interrelationship between poverty and SRHS. The literature search was conducted using keywords from different disciplinary perspectives demography, economics, development, women’s studies, sociology, human rights and public health. Key databases such as JSTOR, PubMed, MEDLINE and Elsevier Science Direct were consulted, as well as the specific library databases at National University of Ireland, Galway and McGill University. Researchers at McGill compiled an annotated bibliography of literature on India. The three country case studies were undertaken in Brazil, Ghana and Lebanon. Consultants in each country undertook an extensive search of academic, policy and programmatic literature including journal publications, research reports, policy briefs, and non-governmental organization (NGO) reports. The literature search in each country followed the same method as the global literature review, including identifying keywords from different disciplines and exploring different databases. In addition, the consultants searched grey literature through contacting various NGOs and research institutions. They also obtained statistical information from governmental and institutional databases. All country case studies explored three key questions: 1) Is there literature that demonstrates the impact of poor SRHS on poverty? 2) What factors have been highlighted in the literature as influencing the relationship between SRHS and poverty? 3) Are there trade-offs involved for women between education, fertility, status and work participation? and 4) Do programmes by civil society organizations, such as micro-credit or income-generating programmes, promote sexual and reproductive health?
Topic:
Development, Education, Poverty, Health Care Policy, and Reproductive Health
Political Geography:
Africa, Middle East, Brazil, South America, Lebanon, and Ghana

246. Stimulating Sustainable Economic Growth in Sub-Saharan Africa with Legal Systems Enabling Women Entrepreneurs’ Creativity

Author:
Isabelle Deschamps
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University
Abstract:
This brief addresses the problem of gendered poverty in Sub-Saharan Africa and argues that multifaceted context-sensitive business law reform is necessary for tackling issues underlying the problem. It takes the reform initiatives led by the Organisation pour l’harmonisation du droit des affaires en Afrique (OHADA) as a case study and draws on interviews carried out by the author with women entrepreneurs, OHADA agents, lawyers and journalists in Benin and Cameroon in 2010, 2011 and 2012. The brief argues that business law modernization in Africa should not be only or predominantly aimed at attracting foreign investors and ensuring a secure legal climate for multinational corporations. Rather, African business law reform should also attend to the informal sector and aim to make states’ legal systems friendlier to micro, small and medium businesses (MSM), in particular ones operated by women. Concomitantly, Canada’s international development assistance policies should aim at promoting, through commercial law reform, entrepreneurial skills and creativity among principals of MSMs. Strategies and recommendations for reaching policy goals should be rooted in local needs and frames of reference. They should target and be accessible to those running MSMs in the region. This brief notes CIDA’s successes in this area, and shows how current programs can be adjusted to prioritize the achievement of policy goals and the development of strategies in cooperation with female-run MSMs, financiers, jurists and organisations like the OHADA operating in sub-Saharan Africa.
Topic:
Development, Women, Entrepreneurship, and Economic growth
Political Geography:
Africa

247. Africa and the Arab Spring: A New Era of Democratic Expectations

Publication Date:
11-2011
Content Type:
Working Paper
Institution:
Africa Center for Strategic Studies
Abstract:
A question often asked since the launch of the Arab Spring in January 2011 is what effect will these popular protests have on democracy in the rest of Africa. Frequently overlooked in this discussion is that Sub-Saharan Africa has been experiencing its own democratic surge during this time with important advances in Guinea, Côte d'Ivoire, Niger, Nigeria, and Zambia, among other countries. This progress builds on nearly two decades of democratic institution building on the continent. Even so, the legacy of "big-man" politics continues to cast a long shadow over Africa's governance norms. Regime models on the continent, moreover, remain highly varied, ranging from hard core autocrats, to semi-authoritarians, democratizers, and a select number of democracies.
Topic:
Democratization, Development, Governance, and Popular Revolt
Political Geography:
Africa, Arabia, and Nigeria

248. Diversity, Unity, and Nation Building in South Sudan

Author:
Jok Madut Jok
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The government of South Sudan and its development partners appear to be heavily focused on state building and less so on nation building: the question of how to turn the young state into a nation in which all South Sudanese can see themselves represented.
Topic:
Civil Society, Development, Ethnic Conflict, Fragile/Failed State, and Governance
Political Geography:
Africa

249. The backstory of China and India's growing investment and trade with Africa: Separating the wheat from the chaff

Author:
Harry G. Broadman
Publication Date:
02-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The dramatic increase in recent years of trade and foreign direct investment (FDI) in sub-Saharan Africa by firms from Asia—notably China and India—has become an emotionally charged issue. This is not surprising, since the resulting greater integration into international markets is exposing African firms and workers to greater competition, an inevitable by-product of development in today's globalized economy. Most assessments of this topic, with few exceptions, have relied on anecdotes and subjective judgments. Meaningful policy recommendations require systematic, objective analysis.
Topic:
Development
Political Geography:
Africa, China, India, and Asia

250. Sensitivity of Loan Size to Lending Rates

Author:
Samuel Kobina Annim
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the combined effect of interest rates and poverty levels of microfinance clients on loan size. Cross section data on 2,691 clients and non-clients households from Ghana is used to test the hypothesis of loan price inelasticity. Quantile regression and variants of least squares methods that explore endogeneity are employed. We find the expected inverse relationship only for the 20th to 40th quantile range. The semi-elasticity of loan amount responsiveness to a unit change in interest rate is more than proportionate and significant for the poorest group only. Market segmentation based on poverty level is suggested in targeting and sustaining microfinance clients.
Topic:
Development, Economics, Markets, Poverty, and Foreign Aid
Political Geography:
Africa