Africa to meet MDGs (updated)

Xavier Sala-i-Martin and Maxim Pinkovskiy today published a working paper today that drops the following bombshell (here’s a free version):

Our main conclusion is that Africa is reducing poverty, and doing it much faster than we thought. The growth from the period 1995-2006, far from benefiting only the elites, has been sufficiently widely spread that both total African inequality and African within-country inequality actually declined over this period. In particular, the speed at which Africa has reduced poverty since 1995 puts it on track to achieve the Millennium Development Goal of halving poverty relative to 1990 by 2015 on time or, at worst, a couple of years late. If Congo-Zaire converges to Africa once it is stabilized, the MDG will be achieved by 2012, three years before the target date. These results are qualitatively robust to changes in our methodology, including using different data sources and assumptions for what happens to inequality when inequality data is not available.

Not much reaction yet – but I’m intrigued to see what other economists are going to make of their work…

Update: Xavier Sala-i-Martin has a wonderfully crazy Columbia University website – he likes FC Barcelona, Salvador Dali and Beavis and Butthead.

Update II: These Economist articles from 2004 (one, two) offer useful background. The crux of the matter seems to be that Sala-i-Martin and Pinkovskiy use GDP to measure poverty (working out distribution of income from household surveys) – the World Bank’s figures are derived directly from the surveys themselves.

The face of aid

“The nature of the ties linking the African with the European has not really changed since the first Portuguese ships went sailing down the west coast of the continent: the sophisticated magic of the white man remains irresistibly alluring to the black.” (Shiva Naipaul)

In all the debates about aid, its visual impact is rarely remarked upon. In rural areas, aid probably looks like a good thing. When you see that a donor has dug a well for your village, you may feel grateful to and enthusiastic about the donor (that is, if you don’t feel embarrassed that your community has failed to dig its own well – a fact rammed home in nearly every village in Guinea-Bissau by a billboard placed next to each well proclaiming that it was a gift of the Kuwaiti, Spanish, Portuguese or American people).

But in cities, to which young Africans are migrating in droves, the visual effect is more ambiguous. When the urban African looks at aid, he sees aid workers and missionaries driving around in brand new Toyota Land Cruisers or Hiluxes. He sees them staring at laptops or chatting on snazzy mobile phones. He sees them dining in expensive restaurants or drinking in smart cafes. And he sees their glittering air-conditioned offices and villas, with iron gates and security guards.

In countries like Senegal, where there are tourists and Western businessmen, aid workers do not stand out. But in poor, remote, unvisited Guinea-Bissau they play an important part in shaping perceptions of the developed world (Guinea-Bissau has no cinemas, precious few internet cafes or televisions, and no press to speak of). And, as they have done for centuries, Africans see all this opulence and want a part of it. Guinean politicians, grown rich on drug money, purchase Land Cruisers and build gated villas. Ordinary citizens spend more than they can afford on mobile phones. And young Guineans, who until recently have not joined the West African exodus to Europe, have begun to talk about taking the boat to Spain – a journey which at least one in six of the many Senegalese who attempt it does not survive.

Of course, foreign aid workers are not the only cause of this new yearning, but it is likely they play some role. Many young Guineans I spoke to, who do not want to risk the trip to Spain, are desperate instead to work for foreign NGOs or the UN. It could be argued that giving young Africans something to aspire to will hasten progress and encourage hard work. Maybe so, but is owning a mobile really progress when you can’t afford your daughter’s $10-a-month school fees (as one mobile-owning mother in Bissau complained to me recently)? And in a country like Guinea-Bissau where aspiration is outpacing people’s capabilities and even well-intentioned governments are struggling to manage expectations, are ostentatious displays of affluence the best way of promoting peaceful development rather than the violent upheavals Nigeria, Guinea-Conakry and others are beginning to experience?

Travelling in style

We achieved the record for a ‘sept places’ (seven-seater) the other day. This is considered the most luxurious form of transport in this part of West Africa. It consists of a Peugeot or Renault estate car slightly modified with an extra row of seats where the boot should be. It is designed to seat seven plus the driver.

If you are seated in the front or middle rows, it is fairly comfortable, provided of course that you don’t object to clouds of dust billowing in through the uncloseable windows, chickens pecking around your feet, or spray from the driver’s spittle occasionally flying in your face.

If you are seated in the back, however, it is less luxurious. You then have to choose either to bend your legs double in front of you so that they are folded tight against your chest (and these cars never stop during the journey, so your knees may be folded for seven hours straight, as mine were on our first sept places journey), or to put your legs on the floor and instead have your head rammed up hard against the metal ceiling. Shifting from one buttock to the other, moreover, to avoid contracting haemmorhoids from the rock-hard seats, is impossible – there is no room.

The middle row is only comfortable, of course, if the driver sticks to the 7-person limit. Often, however, he cannot resist the temptation to fit a few more in. Sometimes there are four people in a row designed to squeeze in three, turning the sept places into a neuf places. This is uncomfortable, but not the worst of all possible worlds.

The other day our driver allowed no less than 16 passengers (plus 3 chickens) into one of these cars. There were people standing up! They were leaning from the rear row over the middle row, where Ebru and I were seated with three others and the chickens. Astonishingly, nobody complained when we stopped to let in more passengers – when there are fourteen of you in a car designed for seven, after all, a couple more bodies doesn’t make that much difference.

The driver was not satisfied with our discomfort. He decided to make the journey even more challenging by giving us a demonstration of his driving skills. He seemed to have only recently passed (or bribed his way through) his driving test, for he looked extremely nervous. Sweat poured down his long hooked nose from under his white Muslim cap. He gripped the wheel tightly, and hunched over it to be closer to the road surface. Then, every time he reached down to change gear, he lost control and the car veered into the middle of the road. This behaviour provoked some complaints from the passengers; we were lucky the road was virtually deserted, so that when he regained control of the wheel we were still intact.

Near the end of the journey, a rotund, stern-looking woman passenger asks him to stop to let her out. “Where?” he asked. “At the mango tree.” The road is lined on both sides, as far as the eye can see, with mango trees. “Which one?” asks the hapless driver, gripping the wheel and staring intently ahead. “That one there, straight ahead,” the woman replies, tutting at the driver’s stupidity. He keeps driving, bemused, sweat pouring down his black robe, until she shouts, “This one! Stop!” We screech to a halt, and are down to a more comfortable 15 again…

Adieu Guinea-Bissau

And so we move on from Guinea-Bissau. The journey to Ziguinchor in the Casamance region of Senegal passed without incident, although reports of the road from here to Gambia are less positive, with the separatist rebellion hotting up in recent months. Have decided to hole up here for a while to write – although Ziguinchor is surrounded by trouble, the town itself is well protected by army roadblocks and appears peaceful.

It was strange and slightly sad to leave Guinea-Bissau, a difficult, testing little country that somehow we’d grown to like. You can learn a lot about a place by leaving it. Although itself one of the world’s poorest nations, Senegal is affluent compared to Guinea-Bissau. It has buildings of two storeys. Some even have three, four floors! Its markets have piles of food rather than just scraps. There are factories, cash machines, bookshops! People in boats are made to wear life jackets. There are tourists, and the incessant hassle from hustlers that comes with them. Guinea-Bissau has none of these things.

Most amazingly of all, Senegal has electricity. You press a switch and a light comes on! Wonder of wonders! Fans turn instead of lying still. There are streetlights, so you don’t need a torch to pick your way through the potholes at night. Food is stored in refrigerators. Guinea-Bissau, whose lights went out in 2003, has none of these things.

But I’d take Guinea-Bissau over Senegal any day. The people are friendly but not overfriendly. Foreigners are left in peace. There is solidarity among Guineans, too – despite its poverty, there are far fewer beggars there than in Senegal, and far fewer people yearn to make the dangerous trip to Europe. Guineans who are in trouble can turn to family and friends for food and shelter, and they are ridiculously generous even to wealthy strangers like us. And despite its governments’ venality, the country is at peace, and its people have hope for the future.

I myself am less optimistic than many Guineans. The drug trade (of which more later), an over-reliance on cash crops, an over-hasty rush to the cities, and the clash of generations are likely to put a brake on the country’s development, while it may not always remain unaffected by the instability of the region as a whole. On the next stage of my journey, I will find out how it compares with Sierra Leone, and then Burkina Faso. It should be an interesting ride.

Wake up Nigeria: lessons from Sierra Leone

While researching my upcoming book on the world’s poorest countries last week, I came across David Keen’s ‘Conflict and Collusion in Sierra Leone,’ an analysis of the causes of the world’s poorest country’s vicious 1990s civil war. What struck me most was the similarity between what I read of the conditions in Sierra Leone before war erupted and what I heard on a recent trip to Nigeria of the conditions prevailing there.

The parallels are remarkable. Burgeoning youth population? Check. Intense competition for services and economic opportunities? Check. Collapsed education system that fails the young? Check. Dependence on a single valuable natural resource? Check (diamonds in Sierra Leone, oil in Nigeria). Neglect of other economic activities like agriculture? Check. Catastrophic lack of jobs? Check.

The result of all these fundamental problems in Nigeria, as in Sierra Leone, is a youth population that cannot establish itself. Denied employment, young people cannot leave their parents’ homes, marry, or start families. Their reliance on the older generation deprives them of the latter’s respect. Their resentment of their elders, who benefited from a better education, faced weaker competition for jobs, and have control over the country’s economy, is acute. The corruption and decadence of those in power and their lack of interest in young people’s demands further fan the flames (both David Keen writing on Sierra Leone and several Nigerians I spoke to said that wealth, no matter how dishonestly acquired, had become society’s’ overriding goal – as a young woman in Lagos lamented, “nobody asks how you got rich”).

In Sierra Leone, young people eventually took out their frustrations with extreme violence. Among their main targets were village chiefs and other figures of authority. When the Revolutionary United Front invaded Freetown in January 1999, its young rebel soldiers sought out and dealt out horrific punishments to journalists and writers who had criticised them and shown them disrespect. Many young Nigerians also bemoan the lack of respect they receive from the older generation, who dominate the country’s institutions.

(more…)