VoxDev Development Economics

In the second of our special episodes recorded at the 5th annual STEG conference, Lucas Conwell of UCL talks to Tim Phillips about how the private minibus networks, such a distinctive feature of urban transit in developing country cities, can improve their service when there is little room for public investment or regulation.  If you have ever tried them, they can seem chaotic, but would require large or small policy tweaks to make them work efficiently, and what would those tweaks be? Lucas has mapped both the service and the opinions of passengers for Cape Town’s public transit minibuses, and discovered that minimal intervention could improve services, increase security, and decrease wait times. Read the full show notes: https://voxdev.org/topic/infrastructure/minibuses-major-gains-rethinking-urban-transit-developing-countries Find out more about STEG at https://steg.cepr.org

This week on VoxDev talks we have two special episodes recorded at the 5th annual STEG conference. STEG is a research initiative that aims to provide a better understanding of structural change, productivity, and growth in low- and middle-income countries.  For many economies in the Global South, fossil fuel extraction has been both a blessing and a curse. Nowhere more so than Nigeria, where oil production generates huge revenues, but also creates an environmental and social burden for the people who live in oil producing regions. Arinze Nwokolo of Lagos Business School has investigated one aspect of this burden: how gas flaring that occurs as part of the oil production process affects local agriculture. He talks to Tim Phillips about the dramatic impact it has on agricultural productivity, and how the policy alternatives can change those outcomes. Read the full show notes on VoxDev: https://voxdev.org/topic/energy-environment/gas-flaring-threatens-agriculture-and-livelihoods-nigeria Find out more about STEG at https://steg.cepr.org

Chatib Basri, an economist and former finance minister of Indonesia, dives into the nation's ambitious 'Golden Indonesia' vision aimed at becoming one of the world's largest economies by 2045. He discusses the dangers of relying on commodity exports and the pressing need for industrial policies to diversify the economy. Basri highlights Indonesia's challenges like an aging population and the shift to informal employment while advocating for strategies that bolster manufacturing. He also tackles the controversial nickel export ban and its implications for local growth.

Mark Rosenzweig, a Yale economist known for his insights on global farming, joins Christopher Udry, who focuses on sub-Saharan rural economies, and Gérardine Mukeshimana, former Minister of Agriculture in Rwanda. They delve into the challenges faced by smallholder farmers in Africa, discussing low productivity and land tenure issues. The trio examines the balance between small and large farms, emphasizing innovation and targeted policies to enhance agricultural efficiency. They advocate for integrating small farms into value chains while addressing climate change and inequality.

Ben Piper, the Director of Global Education at the Gates Foundation, discusses critical challenges in education at the Education World Forum. He highlights that foundational learning is essential amid global funding cuts, offering cost-effective solutions. Piper emphasizes that increased attendance doesn't guarantee better learning, particularly in Sub-Saharan Africa and India. He calls for urgent policy changes and investment in resources, stressing collaboration between governments and philanthropic organizations to foster strong educational outcomes.

Alysson Portella, an economist at Insper specializing in inequality and labor economics, discusses Brazil's impressive reduction in income inequality from 1995 to 2015. He explains the effective policies that contributed to this change, contrasting Brazil's progress with rising inequality in high-income countries. Portella highlights the rise of a new middle class and challenges in policy implementation and evaluation. He examines the intricate factors impacting wage structures, labor market responses to education, and the effects of affirmative action.

David Yanagizawa-Drott, a researcher at the University of Zurich and founder of the Social Catalyst Lab, discusses the dual-edge sword of AI's potential in developing economies. He explores the widening tech gap between rich and poor nations and how AI could revolutionize healthcare and education, yet may also exacerbate existing disparities. Through a Ghanaian project, he examines AI in job recruitment, stressing the need for ethical oversight. Finally, he advocates for mission-driven efforts in AI policy, particularly to address pressing challenges like youth unemployment.

Augustin Tapsoba, theme leader of the ReCIPE programme at the Toulouse School of Economics, dives deep into the intricate relationship between social media and conflict. He discusses how social media can incite both protests and hate crimes, showcasing its double-edged nature. Tapsoba emphasizes the necessity for interdisciplinary collaboration to understand social media's impact better. He also critiques the responsibilities of tech companies in controlling hate speech and examines how media regulation can prevent conflict while forecasting violence.

Yonas Alemu, the founder of Lovegrass Ethiopia, swapped a career in investment banking for entrepreneurship in his homeland, focusing on teff, a gluten-free grain. He discusses the vital role of local businesses in driving economic growth and challenges the stereotype of Africa’s reliance on aid. Yonas emphasizes the importance of investment in nurturing self-sufficiency and local heritage. He shares his journey from rural Ethiopia to the global stage, illustrating how education and personal ties spark innovation and community development.

In this insightful discussion, Karen Macours, a Professor at the Paris School of Economics and co-chair of J-PAL's Health Sector, dives into the global sanitation crisis. She highlights the urgent need to end open defecation and the health risks tied to inadequate sanitation. Karen explores the effectiveness of different sanitation policies, emphasizing community-led initiatives and the surprising benefits of subsidies over loans. She also tackles the complexities of measuring health improvements linked to better sanitation, calling for innovative strategies to ensure lasting change.