Which African news stories are undercovered?

Central_african_times

Early 20th century masthead of the Central African Times, now the Daily Times, one of the longest running newspapers in Malawi

Daniel Kopf of Priceonomics put an interesting question to me recently: which stories about African economies don’t get the news coverage they should?  I thought of a number, and also Storified some great responses I got on Twitter.  What would you add to this list?

  • The Continental Free Trade Area has the potential to be the biggest trade deal that no one’s heard about.  I read African news constantly and I hadn’t heard of it before last week.  Where did this come from, and what are its prospects?
  • I’m quite interested in the expansion of both rail infrastructure and air travel.  Rail transport is much cheaper than road, particularly for the bulky commodities that get traded regionally or exported, but it seems like governments are more inclined to invest in roads, and it’s not clear why.  Light rail also has promise for urban areas but is being stymied by weak urban planning & the influx of motorcycles.  Similarly, air travel has huge potential but there’s all manner of politics around deregulation.
  • The insurance market is another place that looks like it should be taking off but has been slower than expected to do so.  For example, researchers were very excited about cheap rainfall insurance for subsistence farmers a few years ago, but takeup has been very low.  Personally I think there’s a rational distrust of institutions at play here — many people are accustomed to government officials extorting their money, or banks failing, and probably have good reasons not to hand over money now and expect a payout later.  (There’s also some interesting discussion of a move from humanitarian aid to catastrophe insurance for individuals, but presumably it would face the same challenges.)
  • The huge focus on China’s investments obscures the fact that many other middle- and low-income countries are building relationships in Africa.  Some of it is fairly benign, like India and Turkey‘s investment plans; but Israel is looking for countries to house deported African immigrants and North Korea is exporting weapons.
  • One thing that strikes me about African tech start-ups is that they’re consistently solving different problems than American start-ups do.  For example, they’re substituting for effective fire departments and national blood donation agencies in places where these institutions are weak.

Updates from PacDev

I had a great time at the Pacific Conference for Development Economics this weekend.  Sendhil Mullainathan really stole the show with an amazing keynote on his new book, Scarcity (which looks like essential reading for anyone interested in poverty issues), but there were also a number of fascinating studies on the political economy of conflict and post-conflict recovery.

  • Tarek Ghani presented some of his joint work with Michael Callen and Josh Blumenstock on the use of mobile money for salary payments in Afghanistan.  Given the amount of violence ongoing in the south of the country, there’s a premium on liquidity in case one has to suddenly flee, and the authors were interested in whether cash or mobile accounts better met this need.  They found that respondents who believed that higher rates of violence would occur in the future were less likely to hold a balance on their mobile accounts, preferring cash instead.  For all the potential of mobile money, there’s still a lot that implementors don’t understand about why people do (or don’t) decide to adopt it.
  • Bilal Siddiqi discussed results from a justice sector intervention in Liberia (joint with Justin Sandefur).  They framed the study with the observation that, while most Liberians prefer customary forms of dispute resolution to (expensive, inefficient) state courts, women are actually more likely to go to state courts when they’re suing men.  The implicit idea is that customary courts are less likely to rule in their favor.  The authors look at the effects of a legal aid program which made it easier for people to access state courts, and found that respondents who participated in the program were happier with their judicial outcomes and had better food security.