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431. An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa

Author:
Todd Moss, Nicolas Van de Walle, and Gunilla Pettersson
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
A number of proposals today support a substantial increase in foreign aid levels to sub-Saharan Africa even though this region already receives a historically unprecedented volume of aid. This essay reviews the evidence regarding the potentially negative effects of aid dependence on state institutions, a topic which has received relatively little attention. We note several pathways through which political institutions might be adversely affected and devote particular attention to fiscal and state revenue issues. In addition to reviewing the economic literature on the aid-revenue relationship, this essay brings in the long-standing political science literature on state-building to consider the potential impact of aid dependence on the relationship between state and citizen. We conclude that states which can raise a substantial proportion of their revenues from the international community are less accountable to their citizens and under less pressure to maintain popular legitimacy. They are therefore less likely to have the incentives to cultivate and invest in effective public institutions. As a result, substantial increases in aid inflows over a sustained period could have a harmful effect on institutional development in sub-Saharan Africa.
Topic:
Development, Humanitarian Aid, and Political Economy
Political Geography:
Africa

432. Fuelling the Niger Delta Crisis

Publication Date:
09-2006
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Less than a year before Nigeria holds its third national elections since the end of military rule in 1999, tensions are running high in the southern Niger Delta. A number of militant groups have begun allying themselves to local politicians with electoral aspirations. These groups and others continue to use legitimate grievances, such as poverty, environmental destruction and government corruption, to justify increasingly damaging attacks against government and oil industry targets. Removing the incentives for violence will require granting a degree of resource control to local communities. Engaging Delta groups in sustained, transparent dialogue also remains critical to finding a solution to the militant puzzle. Equally important, credible development efforts must be supported and stiff penalties for corruption imposed upon those who embezzle and squander funds.
Topic:
Corruption, Development, and Politics
Political Geography:
Africa and Nigeria

433. Guinea in Transition

Publication Date:
04-2006
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
For too long, public figures within and outside Africa have been timid about discussing Guinea's deep-rooted problems. Its strong anti-imperialist stance in the 1960s and beyond earned it respect among pan-Africanists, but the hands-off attitude that grew out of that respect has long since degraded into indifference and cynicism. The probability is now high that President Conté's term will end in a military takeover, which some seem prepared to accept before the fact, as if it were a means of preserving Guinea's sovereignty. But parts of Guinea's civilian elite are finally beginning to treat the country's future as their own collective concern, one not to be resolved by a third party, whether the army or foreign diplomats. They should be given every encouragement, including by relevant international actors, to do so.
Topic:
International Relations, Development, and Diplomacy
Political Geography:
Africa and Guinea

434. Liberia: Resurrecting the Justice System

Publication Date:
04-2006
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Reform of the justice system needs to be a top priority for Liberia's new government and donors alike. After fourteen years of civil war, the system is in shambles. Impunity prevails, and in this atmosphere, the government cannot adequately address economic governance, transformation of the military and reconstruction of war- scarred physical infrastructure – all primary areas for reform and reconstitution in 2006. Courts that do not prosecute those who siphon resources from government coffers impede progress in all other areas. Within the next six months, stronger and impartial mechanisms are required in both the statutory and customary law systems, and community-based justice programs should be created.
Topic:
Development, Economics, and Government
Political Geography:
Africa and Liberia

435. After Doha: II. Is globalisation history?

Author:
Mark P Thirlwell
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
For some observers, the announcement in late July of the indefinite suspension of the Doha Round of multilateral trade negotiations signalled the beginning of the end for globalisation. The fear was that history would repeat itself; just as an earlier era of globalisation came to a bad end, so too could the current episode.
Topic:
Development, Globalization, and International Trade and Finance
Political Geography:
Africa

436. After Doha: I. The search for Plan B

Author:
Mark P Thirlwell
Publication Date:
09-2006
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
On 24 July, the Doha Round of multilateral trade negotiations was suspended indefinitely, due to irreconcilable differences over the liberalisation of agricultural trade. While the suspension of negotiations may or may not turn out to mark the death of the Doha Round, it will almost certainly mark a watershed for the future of the international trading system. With even a 'good' outcome for the faltering trade round likely to deliver little in terms of new market access when set against the scale of negotiating resources devoted to Doha, the appetite of the world's trade ministers for any repeat performance will be limited. As a result, the era of giant, set piece trade rounds like Doha and its predecessor the Uruguay Round may well be over.
Topic:
Development, International Trade and Finance, and Treaties and Agreements
Political Geography:
Africa

437. Asset Portfolios in Africa: Evidence from Rural Ethiopia

Author:
Christian Rogg
Publication Date:
11-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper considers asset holdings in rural Ethiopia. It shows that households own mostly non-financial assets and that the composition of asset portfolios varies significantly with the household's overall wealth and its exposure to uncertainty. As regards the distribution of assets, inequality is lowest for land holdings and much higher for all other assets. More generally, asset inequality is higher than consumption inequality but, somewhat surprisingly, lower than income inequality. Less surprising is the finding that asset holdings are positively correlated with income and consumption. An analysis of how asset holdings vary with key demographic variables shows that assets increase with the size of the household and the education of the household head. Finally, the paper concludes by exploring the role that assets play in marriage markets in rural Ethiopia.
Topic:
International Relations, Development, and Political Economy
Political Geography:
Africa and Ethiopia

438. Marketable Wealth in a Poor African Country: Using an index of consumer durables to investigate wealth accumulation by households in Ghana

Author:
Frikkie Booysen, Ronelle Burger, Servaas van der Berg, and Michael von Maltitz
Publication Date:
11-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The study uses an asset index of consumer durables to track changes in household wealth in Ghana during the recent period of strong growth. Using the Ghana Living Standards Survey of 1998 that contains both wealth data and consumer durable data, the authors demonstrate that the asset index approximate marketable wealth adequately. Although asset index estimates of wealth cannot match the precision of wealth surveys, this approach can provide useful information on marketable wealth in countries where more appropriate sources are not available. The asset index analysis with the three demographic and health surveys for 1993, 1998 and 2003 suggests that the solid economic growth seen over this period has been accompanied by a strong rise in the average asset index scores.
Topic:
International Relations, Development, and Political Economy
Political Geography:
Africa and Ghana

439. Gender and the Distribution of Wealth in Developing Countries

Author:
Cheryl R. Doss and Carmen Diana Deere
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Only recently has it been recognized that women may not share in the wealth of men, even within the same household or family. Moreover, there is growing evidence that the gender distribution of wealth matters. This paper first reviews the available evidence for developing countries on the gender asset gap and finds that it is significant. It then considers the constraints on women's asset ownership with particular attention to the role of legal marital and inheritance regimes. The paper then turns to a more detailed examination of women's land ownership in Latin America and Africa. The final section considers the impact of women's land ownership on household income and welfare.
Topic:
International Relations, Development, International Political Economy, and Third World
Political Geography:
Africa and Latin America

440. The Structure and Performance of Ethiopia's Financial Sector in the Pre- and Post-Reform Period with a Special Focus on Banking

Author:
Alemayehu Geda
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Since 1992 Ethiopia has been engaged in liberalizing its financial sector. The hallmark of the strategy is gradualism. The approach is not without problems especially from Bretton Woods Institutions that saw the reform as a sluggish process. This study examines this liberalization program by analyzing the performance of the sector before and after the reform. The study notes that given the nascent development of the financial sector in the country, the relatively good shape in which the existing financial institutions find themselves, and given that supervision and regulation capacity of the regulating agency is weak, the government's strategy of gradualism and its over all reform direction is encouraging. However, we argue for charting out clearly defined time frame for liberalization and exploring the possibility of engaging with foreign banks to acquire new technology that enhance the efficiency of the financial sector in general and the banking sector in particular.
Topic:
International Relations, Development, and International Political Economy
Political Geography:
Africa and Ethiopia