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Political Science
PSCI 3100
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PSCI 3100NotesWeek 2 Development performance in AfricaDiscourseWhy focus on development in AfricaClassification on African countriesTheories and conceptualization of developmentWhat are the ends to developmentPaul CollierJW GunningExplaining Africas Economic PerformanceLack of Social CapitalSocial capital can be generated both by the community and by the governmentEconomic benefit can arise from the building of trust which lowers transaction costs the knowledge of externalities of social networks an enhance of capacity for collective actionPublic social capital consists of institution of government which facilitate private activity such as courtsAfrican governments have behaved in ways which are damaging to the long term interests of the majority of their population because they have served narrow constituenciessins of commissionomission damages partly to agricultural taxation and failure to provide adequate infrastructure Africa lacking both types of social capital which is known to be found in growth regressionWhy is Africa short of social capitalPossible barriers to social interaction are ethnolinguistic fractionalization and inequalityAfrica countries are more than twice as fractionalized as other developing regionsFractionalization has a significant negative effect its directly accounts for 35 of Africas growth shortfall and because of its correlated with poor policies it accounts for 45 of the growth shortfallCountries with dictatorships ethnic diversity reduces the growth by 3 per annumEthnic diversity has indeed been costly to Africa because of the low lever of political rightsLack of representativeness rapidly became institutionalized after Africa became independent and led by tiny educated young men who were separated from the mass population In 1975 most African states lacked legislature and most chief executive were unelectedModern part of the economy was owned by ethnic minoritiesLack of African ownership led to induced policies of taxing export agricaulture to finance the expansion of industryAs government expanded its own employment it industrial allies came to have interest in cheap urban food other words agricultural exportsThis was supported by banking systems which lowered interest rates and directed credit to the favoured sectors thus beginning financial repressionBy 1980s most african economic were declining Even though between 75 to 80s there was a increase in accountability by 1985 it was largely reversedOne poor public social capital was a high incidence of corruption Corruption is much more costly to societyAnother is governments having adopted damaging economic control regimes with high trade barriers while attaching low priority to the delivery of public servicesA Lack of Openness to TradeMain manifestation of African control regimes was the restriction of international trade whether directly through quotastariffs and export taxes or indirectly through foreign exchange 1980s africa become less open than other regionsNot only was Africa the area with the highest trade restrictions but the gap between it and the next restrictive area the middle east was wider than that between the middle east and most liberalized region On binary measure almost all African economies were closed whereas 37 of other developing countries were openThe effects on growth can be substantial Finding that restrictive trade policy poor access to the sea and Butch disease between them account for a 12 per annum growth shortfallTrade restriction has been more damaging in Africa than elsewhereDeficient Public Services The restrictive trade policies adversely affected public service delivery lowering thereturn on public sector projects Because African governments have permitted only a low level of civil liberties ordinary people are denied the channel of popular protest and this worsens project performanceA minority of the population feels sufficiently confident to protest when its interests are threatened whereas the majority has been excluded and is quiescent The public sector has been used to create employment rather than to deliver services and this reduces productivity To finance extra employees nonwage expenditures are squeezed and wages are reduced being compensated by declining effortThe public service which has received most attention in growth regressions has been education Paradoxically education is the one public service in which African performance has not been markedly worse than other regions Although Africa has a lower stock of education than other regions it has had a faster rate of growth of the stock If the growth of output is determined by the growth of inputs then Africa should have grown rapidly Conversely if the level of human capital directly affects the rate of growth then the lack of education might be an important explanation of slow African growthHowever one unambiguous effect of the low level of education has been high fertility rates African population growth has exceeded labourforce growth by 04 pa and this reduces per capita growth approximately pro rata Despite the growth in enrolments there is evidence of serious deficiencies in the implementation of educational policies There is a wide gap between plans and schools less than 10 of education policies have been implemented and even when money is voted for a specific purpose much of it does not reach its intended destinationGenerally across the social services even when money reaches the service provider wages are prioritized over nonwage recurrent inputs compared with South Asia Africa spends double the amount on wages per dollar of nonwage recurrent expenditure As a result services suffer For example in Ghana the average public clinic had 22 times the number of staff and a 25 lower probability of having drugs than private facilities In Kenya public clinics had ten times more staff and twenty times the number of days without antibiotics as the private facilities In both the resulting lower quality of public facilities reduced their usage
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