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Urban Development

Why do Kenyans want to live in cities?

Wolfgang Fengler's picture

Every day, Kenya’s capital Nairobi is facing endless traffic jams. Our colleagues spend hours every day to commute to and from work. One Kenyan colleague escapes traffic by leaving home at 4.30am, others by leaving the office as late as 9pm. Given this congestion, escalating costs of living and high crime, why are Kenyans moving into cities more rapidly than ever – more 250,000 every year?

Will the South African economy get a kick from the World Cup?

Sandeep Mahajan's picture

As the month-long FIFA 2010 World Cup tournament kicks-off on June 11, all eyes will be on South Africa. Quite literally, since the 2006 tournament in Germany had a global viewership of around 30 billion.
 
The event is an opportunity for South Africa to showcase itself not just as an attractive destination for tourism and investment but also as the Rainbow Nation, home to people of every race, color, and creed.
 
The economic dividends will be plenty. As President Zuma explained: “the country’s transport, energy, telecommunications, and social infrastructure are being upgraded and expanded. This is contributing to economic development in the midst of a global recession, while improving conditions for investment.” 
 

Some economists are skeptical, seeing white elephants in large stadium constructions and citing analyses that show little net economic benefit to the hosts of previous such events.

Varieties of African successes

Shanta Devarajan's picture

Tolstoy notwithstanding, the 20 African success stories described in the booklet “Yes, Africa Can” show that success comes in many different forms.  Broadly speaking, the cases fall into three categories:

- Success from removing an existing, major distortion.  The best example is Ghana’s cocoa sector, which was destroyed by the hyperinflation and overvalued exchange rate in the early 1980s.  When the exchange rate regime was liberalized and the economy stabilized, cocoa exports boomed (and continue to grow).  Similar examples include Rwanda’s coffee sector and Kenya’s fertilizer use.  Africa’s mobile phone revolution, too, is an example of the government’s stepping out of the way—in this case by deregulating the telecommunications sector—and letting the private sector jump in. 

China’s Miracle Demystified

Justin Yifu Lin's picture

Since beginning its transition 30 years ago, China’s economic development has been miraculous.

The average annual growth rate of GDP reached 9.8 percent, far exceeding the expectations of most people in the 1980s or even early 1990s, including Deng Xiaoping who initiated the reforms. Deng’s goal was to quadruple China’s economy in twenty years, implying an average annual growth rate of 7.2 percent per year.

In 1979, China was inward-looking and its trade as a percentage GDP was only 9.5 percent. Now China is the world’s largest exporter and the third largest importer, with trade contributing around 70 percent of GDP. Over 30 years, more than 600 million people got out of poverty.

China’s miracle raises the following five questions.

  1. What was behind China’s extraordinary performance?
  2. Why Did China Fail before the Transition in 1979?
  3. Why Didn’t Other Transition Economies Perform Equally Well?
  4. What Costs Did China Pay for Its Success?
  5. Can Other Developing Countries Replicate the Miracle?

Your Comments on Africa's Successes

Shanta Devarajan's picture

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.  

Les Réussites Africaines

Shanta Devarajan's picture

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.

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