Charter Cities Podcast Historical Events and Economic Development with Dr. Nathan Nunn
There is a growing body of empirical evidence that points toward the important, long-term effects that historic events can have on economic development, and today’s guest, Dr. Nathan Nunn, is major player in this area of research. Dr. Nunn is a Professor of Economics at Harvard University, and his research ranges across development economics, political economy, economic history, and other areas, especially focusing on the long-term impact of historical processes on economic development today, often mediated through factors like culture, social structures, norms, and institutions. In this episode, Dr. Nunn shares his views on Canada’s response to COVID, his critique of foreign aid tied to the strategic interests of the donor country, and shares the case for unconditional cash transfers or universal basic income instead of foreign aid. He explains the link between food aid and civil conflict, the benefits of industrial policy, and his thoughts on a devolution of authority, as well as urbanization in Africa, the correlation between the slave trade and mistrust in Africa, and the effect of corruption on culture. Dr. Nunn also takes a deep-dive into group level selection and competition, the long-term impacts of mining versus plantation farming in Africa, and why he believes that it’s impossible to understand development without history, and he also includes some suggested reading for grad students outside of economics. Tune in today to find out more!
Key Points From This Episode:
• The current projects Dr. Nunn is working on, specifically a review called History as Evolution.
• Why Dr. Nunn believes Canada’s response to COVID has been better than that of the US.
• Dr. Nunn’s critique of foreign aid when it’s tied to the strategic interests of the donor country.
• The case for unconditional cash transfers or universal basic income – low overheads, simplicity, it allows people the most choice.
• Some issues and concerns when aid or food aid is tied to politics, like increased civil conflict.
• Thoughts on industrial policy and its benefits, such as alleviating the poverty trap.
• Dr. Nunn shares his take on the benefits of the devolution of authority to a local or city level.
• When smaller units have autonomy, through trial and error, it results in positive externalities.
• Dr. Nunn comments on ruggedness and rapid urbanization versus economic rationale in Africa in response to the slave trade.
• Why Africa isn’t seeing the same improvements that accompany urbanization elsewhere.
• Dr. Nunn describes the paper he coauthored with Leonard Wantchekon on the correlation between the slave trade and mistrust in Africa.
• How correlations between trust and urbanization or education have not been proven.
• Dr. Nunn’s predictions for trust levels in the US, based on contact hypothesis and immigration.
• How cultural norms are shaped in individuals from countries with higher or lower corruption.
• Dr. Nunn talks about some of his colleagues, like Leonard Wantchekon and Melissa Dell.
• The long-term impacts of mining versus plantation farming in Africa.
• Why Dr. Nunn strongly believes that it’s impossible to understand development without history.
• Anthropologists or sociologists that have informed Dr. Nunn’s work or been impactful and how.
• Dr. Nunn explains how learning about anthropology and evolutionary anthropology benefitted his research in development economics.
• Some valuable lessons that Dr. Nunn learned from the late, great institutional and political economist, Alberto Alesina.
Links Mentioned in Today’s Episode:
The Top Doctor Who Aced the Coronavirus Test
U.S. Food Aid and Civil Conflict
The Slave Trade and the Origins of Mistrust in Africa