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Responsible aid in a time of crisis

Shanta Devarajan's picture

My friend, former colleague and one-time co-author Bill Easterly, in his inaugural blog post, takes issue with Bob Zoellick’s Op-Eds in the New York Times and the Financial Times  on the need for more aid to poor countries in the wake of the global financial and economic crisis. Bill’s argument is that Bob is calling for more aid without specifyi

Empowering matatu passengers

Shanta Devarajan's picture

In low-income countries, road traffic accidents account for 3.7 percent of deaths, twice as high as deaths due to malaria.  Anyone who has traveled in Kenya won’t be surprised to hear that 20 percent of recorded crashes involve matatus, the private buses that careen around the city.  Billy Jack and James Habyarimana have a fascinating impact evaluation where they randomly put posters in matatus encouraging passengers to “heckle and chi

The human crisis

Shanta Devarajan's picture

My colleague Justin Lin says that it is important not to let the global financial crisis become “a human crisis.” Nowhere is this truer than in Africa. Although spared the first-round effects of banking failures, Africa is already facing the second-round impacts of declining capital flows, slowing remittances, stagnating foreign aid and falling commodity prices and export revenues. The c

DR Congo Perspectives on the Financial Crisis

Emilie Mushobekwa's picture

The main impact of the global financial crisis on the DRC economy is the slowdown in overall economic growth, which is projected to be 6 percent in 2009. With the crisis going on, the situation is likely to deteriorate. Two of the major sectors expected to drive DRC growth in 2009, i.e. infrastructure and mostly mining, have already been severely affected by the crisis.

Using economics to fight AIDS

Shanta Devarajan's picture

I gave one of the keynotes (based on joint work with Markus Goldstein) at the recent ICASA 2008 in Dakar, Senegal on the title of this post. The fight against AIDS involves allocating scarce resources to multiple uses; and contracting, avoiding, preventing, testing for, and treating the disease all involve behavioral choices.

Fertilizer Subsidies in Malawi

Shanta Devarajan's picture

At a recent AERC research workshop in Nairobi, I made a comment about African governments’ not spending enough money on public goods, and spending too much on private goods such as fertilizers. The comment seemed to have struck a nerve. Several people in the audience pointed out that, in Malawi, fertilizer subsidies have increased cereal production, so government spending on fertilizers was not such a bad thing. Going beyond the general arguments that these fertilizer subsidies often don’t reach farmers (they’re

Impact of the Global Financial Crisis on Lesotho

Preeti Arora's picture

In the last few years, Lesotho has made significant progress in macroeconomic performance (strong GDP growth, fiscal surplus, current account surplus, and high international reserves). Nevertheless, Lesotho remains exposed to economic developments in South Africa (through the monetary union and the pegged exchange rate) and relies heavily on workers’ remittances, customs revenues from SACU, and royalties for transfer of water to South Africa.