Poor people are poor because markets fail them and governments fail them. That markets fail them is well-known. Failures in capital markets mean that young people cannot get loans to finance their education; imperfect or nonexistent insurance markets mean that poor people will not get decent health care if left to unfettered markets; economies of scale as well as the simple fact that basic services such as water are necessities mean that markets will not ensure that poor people will get the services they need to survive. As
The awarding of this year’s Nobel Memorial Prize in Economics to Paul Krugman is a tribute not just to the elegance of Krugman’s pathbreaking contributions to international trade and economic geography, but also to his ability to apply cutting-edge economics to real-world problems. Two pieces by Arvind Panagariya and Arvind Su
We had a fascinating seminar on this topic yesterday. Goolam Ballin of Standard Bank said that Africa today looks like Asia did 20 years ago--poised to grow rapidly over the next two decades. At the same time, he was worried about the next two years because of Africa's dismal experience in adjusting to the external shocks of the 1970s. Nigerian central bank governor Chukwuma Soludo struck a distinctly more optimistic note, pointing out that, for example, Nigeria's non-oil sector was growing even
At a recent videoconference with journalists, I was asked the question in the title of this post several times. Does the fact that private banks in the United States are going bankrupt mean that the free market system is a failure? Does the fact that the United States government is bailing out these banks and in some cases “nationalizing” them mean that state intervention is back?
Pour ceux qui ont raté le débat entre Sarah Palin et Joseph Biden, les deux candidats à la vice-présidence des Etats-Unis, je vous offre une alternative—un débat entre le professeur Kako Nubukpo de l’Université de Lomé et moi-même. Contrairement aux candidats américains, nous avons traité des sujets diff&eac
Chris Blattman is right to question my enthusiasm for information as the solution to seemingly intractable development problems. (By the way, thanks for the complimentary plug for AfricaCan, Chris). Information by itself is not useful unless people can do something with it.
Le Tchad est l'un des pays les plus pauvres en Afrique subsaharienne classé 100ème sur 103 pays selon l'indice de pauvreté. Ses indicateurs de santé sont souvent en deçà de ceux des pays avec un niveau de développement comparable.
Etant donné l’appréciation de l’Euro vis-à-vis du dollar, la question de la parité du Franc CFA (qui est fixé à l’Euro) doit être encore soulevée. L’appréciation est comparable à celle des années 1985-1993 [voir graphique]. Pendant cette période, les économies des pays de la zone CFA ont connu une forte diminution de leur compétitivité, des exp
When asked about the East Asian financial crisis of the late 1990s, Ethiopian Prime Minister Meles Zenawi reportedly said, “I wish we had their problems.” I was reminded of this quip when thinking about the current financial crisis in the U.S. and its possible impact on Africa. In the U.S., there is a constant fear that turmoil in financial markets will spill over to the real sector—in terms of slow growth and unemployment.