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Your Comments on Africa's Successes

The African Successes post has generated a vigorous exchange of ideas.  I appreciate receiving your comments on the study, your suggestions for success stories, and your views on development approaches that have worked and those that have not.  

Many of you felt, as I do, that we need to highlight Africa’s recent successes.   Your responses voiced strong support for a focus on education, knowledge and dissemination, health, private-sector development, agriculture (irrigation and fertilizer), community-level development, governance, infrastructure, and information and communication technology.  

Les Réussites Africaines

Ces dernières années, de nombreux pays africains ont commencé à faire preuve d’un dynamisme remarquable.

Le taux de croissance  enregistré au Mozambique est fulgurant, affichant une moyenne annuelle de 8 % sur plus de dix ans. Le Kenya est devenu l'un des plus importants fournisseurs mondiaux de fleurs coupées. Le service M-Pesa, qui permet d’effectuer des transferts d’argent à partir d’un téléphone mobile, rencontre un succès grandissant tandis que le programme KickStart aide les petits agriculteurs à irriguer leurs cultures à moindre coût. Le tourisme rwandais fleurit depuis qu’il s’est axé sur la vie des gorilles et dans la ville de Lagos au Nigéria, les nouvelles infrastructures du BRT (réseau de transport rapide par bus) facilite un développement urbain plus efficace. En deux mots, l’Afrique est en train de vivre une réelle transformation.

African Successes

In recent years, a broad swath of African countries has begun to show a remarkable dynamism.  From Mozambique’s impressive growth rate (averaging 8% p.a. for more than a decade) to Kenya’s emergence as a major global supplier of cut flowers, from M-pesa’s mobile phone-based cash transfers to KickStart’s low-cost irrigation technology for small-holder farmers, and from Rwanda’s gorilla tourism to Lagos City’s Bus Rapid Transit system, Africa is seeing a dramatic transformation.  This favorable trend is spurred by, among other things, stronger leadership, better governance, an improving business climate, innovation, market-based solutions, a more involved citizenry, and an increasing reliance on home-grown solutions.  More and more, Africans are driving African development. 

The global economic crisis of 2008-09 threatens to undermine the optimism that Africa can harness this dynamism for long-lasting development.  In light of this, it might be useful to re-visit recent achievements.  The African Successes study aims to do just that.

The study will identify a wide range of development successes (see list), from which around 20 cases will be selected for in-depth study.  The analysis of each successful experience will evaluate the following: (1) the drivers of success—what has worked and why; (2) the sustainability of the successful outcome(s); and (3) the potential for scaling up successful experiences.  African success stories offer valuable insights and practical lessons to other countries in the region. 

I welcome your comments and suggestions for success stories. Click here to see the list of what we have come up with so far.

Les douanes camerounaises se regardent dans le miroir

En Afrique, l’administration des douanes joue un rôle de tout premier plan dans le développement économique et social puisque les droits et taxes collectées par les douanes représentent bien souvent au moins 30% des recettes du budget national (hors pays pétroliers). Dans le même temps, c’est l’une des administrations les plus décriées étant bien souvent décrites comme le symbole même de la corruption et un terrible frein au commerce.

Empowering matatu passengers

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 chide” the driver if he is driving too fast or recklessly.  The idea is that the posters solve a collective action problem:  most passengers don’t like being driven dangerously, but individually they’re reluctant to speak up.  Their preliminary results are impressive:  the frequency of road traffic accidents in a 12-month period was one quarter in the treatment group compared with the control group (those without posters).

La facilitation des échanges comme réponse à la crise et le développement en Afrique

La réponse de l’Afrique à la crise économique actuelle doit se faire sur plusieurs façades. Une reforme des politiques commerciales permettant l’épanouissement du secteur privé devrait être au centre de tout effort tendant à minimiser l’impact sur les économies africaine à  court terme et à long terme des perturbations des marchés. Comme noté par Shanta dans son exposé de novembre à l’Université Columbia de New, la croissance du secteur privé doit être une priorité pour l’Afrique.

Crisis Management Today and Investing for Tomorrow: Why Trade Facilitation Matters to Africa

There are many factors which will impact Africa’s ability to weather the current economic crisis. Finding ways to reform trade policy that enhances private sector growth should be part of any strategy now and in the long-term to counteract the damage today’s economic crisis is having. As Shanta noted in his lecture in November at Columbia, private sector growth is a key priority for Africa. Policy, institutional, and other barriers, including trade restrictions need to be addressed. We recently examined the most important obstacles to trade facilitation in Africa. This included how increased port efficiency, improved customs, and regulatory environments, and upgrading services infrastructure could help that continent.  We found that improvement in ports and services infrastructure promise relatively more expansion in intra-African trade than other measures. These are the types of investments that can have a stimulus effect now and help over the long-term. Regional trade agreements have a positive effect on trade flows. Acting today to address infrastructure gaps and new commitments to reduce barriers through strong regional agreements should be part of any plans considered for reform in Africa.

How to grow the private sector in Africa

I gave the Jerome A.Chazen lecture at Columbia Business School the other day. The gist of my talk was that:

  • Despite relatively rapid economic growth, private investment in Africa is still relatively low
  • The proximate reasons are poor infrastructure, weak skills and a host of policy and institutional impediments (such as business regulations and trade restrictions.
  • Underlying each of these proximate reasons is some government failure. Transport infrastructure, for instance, is constrained by poor regulation that generates monopoly profits for trucking companies but keeps Africa’s transport prices the highest in the world; poor skills derive from nearly dysfunctional tertiary education systems; and many of the regulations are difficult to remove for political reasons. The few private-sector success stories in Africa (Kenya horticulture, Lesotho garments, Rwanda tourism) all got around these government failures; they have not spread economy-wide.
  • The key to enhanced private sector growth in Africa, therefore, is government leadership that removes the underlying obstacles to infrastructure, skills development and entrepreneurship.

There was a lively discussion after the lecture, although I got the impression that most of the audience was broadly sympathetic to my approach. I wonder if the same is true of readers of this blog.