Income In Africa Research Articles

Commercialisation of Food Crops and Farm Productivity: Evidence from Smallholders in Central Africa

ABSTRACTCommercialisation of agriculture has long been considered an important driver of intensification, production, food security and farm incomes in Africa. This article investigates whether commercialisation is able to increase the intensification and yield of banana and legumes in central Africa. The study utilises survey data from 480 smallholder farmers in selected regions in rural Rwanda and the Democratic Republic of Congo (DRC). The findings show a positive effect of commercialisation on improved seed varieties use and food crop yields, even after controlling for an endogeneity problem. There is no strong evidence of commercialisation effect on fertilizer use among the sampled farm households. Apart from commercialisation, better education, larger farm sizes, access to markets and credit facilities, good roads and extension contacts are necessary for farmers to increase input use and crop yields. Overall, these findings suggest that programmes targeting to increase smallholder farm productivity through commercialisation will only work if they consider production and marketing conditions surrounding the target households.

The impact of gender inequality in education on income in Africa and the Middle East

We use data for a group of sub-Saharan African, North African and Middle Eastern countries to explore the impact of gender inequality in education on levels of income per capita. Two gender inequality indicators are used: the gap in female to male primary education enrolment ratios and the gap in female to male secondary education enrolment ratios. Estimation results indicate that gender inequality in primary and secondary education has a statistically significant negative effect on income, especially in North African and Middle Eastern countries. In relatively open economies, gender inequality in education seems to have an additional effect, but this effect is consistently positive, suggesting that while trade contributes to higher income it may be accompanied by greater inequality. Overall, the results in this paper provide further evidence that the international development community's focus on reducing gender inequality and achieving universal primary education is well founded.

Development and Evaluation of an Antigen Capture Enzyme-Linked Immunosorbent Assay (AC-ELISA) for the Diagnosis of African Swine fever

African swine fever (ASF) is a viral haemorrhagic fever of pigs with devastating impact on pig production and household income in Africa. Lack of a vaccine and treatment for ASF has increased the dependence on accurate diagnosis as basis for control and possible eradication of the disease. The aim of this study therefore, was to develop and evaluate an in-house sandwich enzyme linked immune sorbent assay (ELISA) using antibodies raised against African swine fever virus (ASFv) isolates from Uganda for diagnosis of ASF. The ASFv was grown in pig alveolar macrophages, the infected cells harvested, lysed and the virus precipitated using polyethylene glycol 6000. The virus was purified on Sepadex G-200 column equilibrated with 50mM Tris-HCl PH 7.2 containing 0.15M NaCl and viral proteins separated by SDS-PAGE. The target protein (vp73), was quantified and used to immunize rabbits to produce polyclonal antibodies against it. The purified immunoglobulin IgG (rabbit anti ASF-vp73) was used for antigen capture in sandwich ELISA. Eighty eight (88) known positive and 176 known negative pig serum samples were used to evaluate assay performance. The diagnostic sensitivity of the ELISA was 82.95% (95% CI, 78-100%), diagnostic specificity was 96.59% (95% CI, 90–100%). Positive and negative predictive values were 92.4% and 91%, respectively. The inter samples coefficient of variation of raw optical density values for known positive samples in different runs was <10% (range 1.1-7.8), while intra sample coefficient of variation ranged from 0.6-5.5% between runs. The developed antigen capture ELISA has a high diagnostic sensitivity and specificity and is therefore good for detection of active ASF infection. However, the developed assay should be further validated using larger sample size under different laboratory conditions and referenced serum samples from different ASF endemic countries.

Does Foreign Land Acquisition Deprive Per Capita Income in Africa?

This study investigates the implications of large scale foreign land acquisitions on per capita income in Africa. It employs data from World Development Indicators, World Governance Indicators and World Trade Indicators on key variables such as arable land per person, agricultural land as percentage of land area, net food import, regulatory quality, among others (1995-2012) on selected African countries where instances of foreign land deals have been reported. The study formulates empirical models that draw from institutional development theory, which was estimated using Fixed Effects (FE) and Generalised Method of Moments (GMM) techniques in order to handle the issues of country-specific effects and endogeneity. The results from the empirical analysis show that agricultural land influences per capita income significantly. It hereby implies that as more agricultural land are cultivated; the wellbeing of the populace is likely to be enhanced primary through increased income for farmers, increase in real money income for non-farmers, drastic reduction in food inflation and foreign exchange gains for the government. The results of the study suggest the need for controlling the issue of massive foreign land deals through viable institutional framework, though there is need for foreign investment in Africa’s agricultural sector but sound institution is pertinent in order to avoid rent seeking behaviour among stalk holders.

Income Heterogeneity and Environmental Kuznets Curve in Africa

The Environmental Kuznets Curve (EKC) hypothesis asserts that pollution levels rises as a country develops, but reaches a certain threshold where pollution begins to fall with increasing income. In EKC analysis, the relationship between environmental degradation and income is usually expressed as a quadratic function with turning point occurring at a maximum pollution level. This study seeks to examine the pattern and nature of EKC in Africa and major income groups according to World Bank classification comprising low income, lower middle income and upper middle income in Africa. In ensuring the robustness of our study; the paper proceeded by ascertaining the nature of EKC in all fifty-three countries of Africa in order to confirm the results obtained from basic and augmented EKC model. The study could not validate EKC hypothesis in Africa (combined), low income and upper middle income but empirical and analytical evidences supports the existence of EKC in lower middle income countries. Likewise, evidences from the robustness checks confirmed the findings from the basic and augmented EKC model. The study could not attain a reasonable turning point as there are evidences that Africa could be turning on the EKC at lower levels of income. Also, there is need to strengthen institutions in order to enforce policies that prohibits environmental pollution and ensure pro-poor development agenda.

Income Heterogeneity and Environmental Kuznets Curve in Africa

The Environmental Kuznets Curve (EKC) hypothesis asserts that pollution levels rises as a country develops, but reaches a certain threshold where pollution begins to fall with increasing income. In EKC analysis, the relationship between environmental degradation and income is usually expressed as a quadratic function with turning point occurring at a maximum pollution level. This study seeks to examine the pattern and nature of EKC in Africa and major income groups according to World Bank classification comprising low income, lower middle income and upper middle income in Africa. In ensuring the robustness of our study; the paper proceeded by ascertaining the nature of EKC in all fifty-three countries of Africa in order to confirm the results obtained from basic and augmented EKC model. The study could not validate EKC hypothesis in Africa (combined), low income and upper middle income but empirical and analytical evidences supports the existence of EKC in lower middle income countries. Likewise, evidences from the robustness checks confirmed the findings from the basic and augmented EKC model. The study could not attain a reasonable turning point as there are evidences that Africa could be turning on the EKC at lower levels of income. Also, there is need to strengthen institutions in order to enforce policies that prohibits environmental pollution and ensure pro-poor development agenda.

Does Foreign Land Acquisition Deprive Per Capita Income in Africa?

This study investigates the implications of foreign land deals in Africa with regards to per capita income. It employs data from World Development Indicators, World Governance Indicators and World Trade Indicators on key variables such as arable land per person, agricultural land as percentage of land area, net food import, regulatory quality, among others (1995-2012) on selected African countries where instances of foreign land deals have been reported. The study formulates empirical models that draw from institutional development theory, which was estimated using Fixed Effects (FE) and Generalised Method of Moments (GMM) techniques in order to handle the issues of country-specific effects and endogeneity. The results from the empirical analysis show that agricultural land influences per capita income significantly. It hereby implies that as more agricultural land are cultivated; the wellbeing of the populace is likely to be enhanced primary through increased income for farmers, increase in real money income for non-farmers, drastic reduction in food inflation and foreign exchange gains for the government. The results of the study suggest the need for controlling the issue of massive foreign land deals through viable institutional framework, though there is need for foreign investment in Africa’s agricultural sector but sound institution is pertinent in order to avoid rent seeking behaviour among stalk holders.

Beneficial Ownership Provisions In Tax Treaties Between Developed And Developing Countries: The Canada/South Africa Example

In the years since the Organisation for Economic Cooperation and Development (OECD) adopted its first draft tax treaty in 1963, the world has experienced an astonishing surge in international trade and investment. The tax treatment of these cross-border transactions is affected by double tax agreements. As tax treaty networks will likely continue to expand, concerns about tax treaty abuse might be expected to grow. The extent to which a countrys tax treaty policy favours developing countries - or not - depends upon the extent to which the country is prepared to adopt provisions from the UN model tax convention as opposed to the OECD model. Developing countries, in particular, should carefully consider the design of their tax treaties so as to effectively combat tax avoidance without sacrificing foreign direct investment. To this end, the Canada/South Africa tax treaty is compared and contrasted with these two models. The concept of beneficial ownership is reviewed in this context. It is contended that a general definition in South Africa's Income Tax Act of 'beneficial ownership' would assist in the interpretation of the term for the purposes of South Africa's tax treaties. It is submitted that the scope for the source taxation of passive investment income (viz. dividends, interest and royalties) in the developing country could be magnified through treaty negotiations.

Towards the Implementation of the Comprehensive African Agricultural Development Plan (CAADP) in Zimbabwe: A Propositional Analysis of Key Activities Required for Pillar 1

CAADP is the agricultural programme of the New Partnership for Africa’s Development (NEPAD), which is therefore a programme of the African Union (AU). Established by the AU assembly in 2003, CAADP focuses on improving food security, nutrition, and increasing incomes in Africa's largely farming based economies. It aims to do this by raising agricultural productivity by at least 6% per year and increasing public investment in agriculture to 10% of national budgets per year. One of the key areas for agricultural and investment is pillar 1 and this paper using evidence and best practices from agriculture projects implemented in three districts in Zimbabwe propose some activities to achieve the goals of this Pillar. Zimbabwe is highly endowed with various natural resources, that if sustainably utilized can help in facilitating household food security. Of critical importance as leant from Wedza district is the pre-requisite of supporting all the activities along commodity value chains (input, production, post-harvest, processing, utilization and marketing) especially targeting crops and livestock that are the main activities in the economy of Zimbabwe covering the 70% of the habitants that reside in rural areas. There is also need to conserve the factors of production especially land that has been degraded and is now highly infertile due to continuous use without nutrient replenishment over the years. Low productivity is the order of the day in most communal areas and this is because of inadequate crop/animal husbandry, limited access to cash to buy inputs, limited access to inputs and commodity markets, complete reliance on rain fed agriculture and unsustainable management and utilization of natural resources. There is therefore need to design activities to address these constraints. Activities like conservation farming, beekeeping , organic farming which uses less inputs while conserving the resources like land, credit schemes to ensure capital to purchase inputs timely and linking the farmers to markets are a potential solution to the constraints faced by farmers. Value addition on all enterprises has not been explored by communities at a commercial level but it is a highly potential lucrative venture.

Africans in Europe: The Culture of Exile and Emigration from Equatorial Guinea to Spain (review)

Reviewed by: Africans in Europe: The Culture of Exile and Emigration from Equatorial Guinea to Spain Sebastiaan Faber Keywords Exile, Migration, Displacement, Spain, Africa, Equatorial Guinea, Spanish Literature, Peninsular Studies, Donato Ndongo-Bidyogo, Afro-Spanish Studies, Bartolome De Las Casas, Law Michael Ugarte. Africans in Europe: The Culture of Exile and Emigration from Equatorial Guinea to Spain. Urbana: U of Illinois P, 2010. 201 pp. The United Nations has called the twentieth century the century of displacement; and it’s hard indeed to think of any region on earth that, over the past 100 years, has not been affected by massive movements of people forced to leave their homes in response to natural, political, or economic crises and disasters. “Exile,” Michael Ugarte writes in Africans in Europe, “is more and more blatantly a human condition” (29). Social scientists have long studied migration and refugee patterns as topics in their own right, of course. But for some reason humanists still tend to treat displacement as a nagging anomaly, beholden as we are to the legacy of philology and its investment in a Romantic ideology of organicity. Many of our disciplinary structures—including the way we organize academic fields, specializations, and core curricula—continue to rely on the default assumption of the writer or artist who produces her work in her home environment and her home language. As a result, exiles, immigrants, and refugees never cease posing bureaucratic and institutional problems: Should U.S. Latino literature be part of American or Latin American Studies? Who gets to teach Jorge Semprún, the Spanish or the French professor? Does or doesn’t Cristina Peri Rossi belong in a survey course on twentieth-century Peninsular literature? This is why opening up institutional space for the study of displaced cultures—and cultures of displacement—is one of the most urgent and effective ways to rethink the way we organize our teaching and research. Michael Ugarte did this for Peninsular Studies twenty years ago; his Shifting Ground (1989) spear-headed a theoretically astute approach to Spanish Republican exile literature, showing that, more than being a mere appendix to Spanish cultural history, intellectual exile destabilizes the very foundations of traditional literary studies. His new book, Africans in Europe: The Culture of Exile and Emigration from Equatorial Guinea to Spain, is just as ground-breaking. Once more, Ugarte manages to pry open the field in order to make room for a group of writers who tend to be written out of Spanish cultural history altogether: émigrés and exiles from Equatorial Guinea, Spain’s only colony in Central Africa. And once again, Ugarte invites us to question some of the most basic assumptions informing our academic practice. Equatorial Guinea, which is roughly the size of Massachusetts and has a population [End Page 250] of less than 700,000, is a country of paradoxes. Largely thanks to its immense oil reserves, it now boasts both the highest per capita income in Africa (globally, it is in the top 30). But it also has one of the continent’s worst human-rights records. Its history is one of endless transitions and displacements. Its independence from Spain in 1968 was preceded by centuries of exploitative colonial rule at the hands of different imperial powers, which considered the area as both a source and a destination for slaves and former slaves. The hard-fought independence from dictatorial Spain was ironically followed by two bloody dictatorships (the regimes of Francisco Macías Nguema, 1970–79, and his nephew Teodoro Obiang, 1979-present), which have left thousands of victims and made life for artists and writers exceedingly difficult. Many have ended up seeking refuge in Spain—a Spain that is as ignorant of their country as it is uninterested in it. Ugarte’s first chapter deals with theoretical and conceptual matters, while a short second chapter provides a general outline of the political and cultural history of Equatorial Guinea. The remainder of the book presents close readings of a dozen core texts. Beginning with writings from the colonial period—which Ugarte shows to be more ambivalent about Spain than the exalted Hispanist rhetoric would seem to suggest—they include three major works by Donato...

Investigating the Impacts of Intraregional Trade and Aid on Per Capita Income in Africa: Case Study of the ECOWAS

In the past 50 years, a striking stylized fact has been the downward—or flat—trend of intra-African trade as a share of Africa’s total trade, while official development assistance (ODA) has experienced a noticeable expansion. During the same period, economic growth performances have not been consistent and robust enough to put a dent in the poverty level across the African continent in general and the Economic Community of West African States (ECOWAS) in particular. Using a two-stage least square (TSLS) estimation technique, this paper finds out that intra-ECOWAS trade stimulates per capita income growth substantially more than foreign aid, which rather constitutes an impediment to that growth in most specifications. Additionally, comparable results are obtained when the scope of the study is expanded to include trade of ECOWAS members with the rest of the world. As a result, it becomes appropriate to suggest policy recommendations encouraging increased cooperation among member states in an attempt to (i) expand and build new cross-states infrastructures, aimed at boosting communications and telecommunications networks, (ii) accelerate the trade facilitation process by addressing administrative red tapes that balloon both transaction costs and delays in the flows of goods across borders, seaports, and airports, and (iii) develop and diversify the industrial base in member states.

Gene diversity, agroecological structure and introgression patterns among village chicken populations across North, West and Central Africa

BackgroundChickens represent an important animal genetic resource for improving farmers’ income in Africa. The present study provides a comparative analysis of the genetic diversity of village chickens across a subset of African countries. Four hundred seventy-two chickens were sampled in 23 administrative provinces across Cameroon, Benin, Ghana, Côte d’Ivoire, and Morocco. Geographical coordinates were recorded to analyze the relationships between geographic distribution and genetic diversity. Molecular characterization was performed with a set of 22 microsatellite markers. Five commercial lines, broilers and layers, were also genotyped to investigate potential gene flow. A genetic diversity analysis was conducted both within and between populations.ResultsHigh heterozygosity levels, ranging from 0.51 to 0.67, were reported for all local populations, corresponding to the values usually found in scavenging populations worldwide. Allelic richness varied from 2.04 for a commercial line to 4.84 for one population from Côte d’Ivoire. Evidence of gene flow between commercial and local populations was observed in Morocco and in Cameroon, which could be related to long-term improvement programs with the distribution of crossbred chicks. The impact of such introgressions seemed rather limited, probably because of poor adaptation of exotic birds to village conditions, and because of the consumers’ preference for local chickens. No such gene flow was observed in Benin, Ghana, and Côte d’Ivoire, where improvement programs are also less developed. The clustering approach revealed an interesting similarity between local populations found in regions sharing high levels of precipitation, from Cameroon to Côte d’Ivoire. Restricting the study to Benin, Ghana, and Côte d’Ivoire, did not result in a typical breed structure but a south-west to north-east gradient was observed. Three genetically differentiated areas (P < 0.01) were identified, matching with Major Farming Systems (namely Tree Crop, Cereal-Root Crop, and Root Crop) described by the FAO.ConclusionsLocal chickens form a highly variable gene pool constituting a valuable resource for human populations. Climatic conditions, farming systems, and cultural practices may influence the genetic diversity of village chickens in Africa. A higher density of markers would be needed to identify more precisely the relative importance of these factors.

AFRICAN GROWTH RECURRING: AN ECONOMIC HISTORY PERSPECTIVE ON AFRICAN GROWTH EPISODES, 1690–2010

ABSTRACT Africa has not suffered a chronic failure of growth. In fact, Africa has experienced recurring periods of growth, and this paper reviews some of these growth “spurts” to substantiate that claim. The immediate cause of low income in Africa is that these “spurts” have always been followed by a ‘‘bust’’. This is a significant reorientation of the central research question – away from a search for the root causes of Africa's underdevelopment and towards explaining the causes and effects of growth and decline. The growth spurts are approached as local responses to a global demand for African produced commodities. In this paper, I shall argue that these supply responses involved more than a reallocation of land and labour; they entailed investment and required institutional change. It is precisely because these periods of rapid economic change and accumulation caused significant qualitative changes in how society and the economy were organized that they cannot be ignored – as they have tended to be in the search for a root cause of Africa's chronic failure to achieve growth.

Food insecurity in South Africa: Where does gender matter?

abstract This article maps food insecurity in South Africa and plumbs the data to women-headed households at the municipal level. Local contexts provide a better understanding of people's experiences by studying the impact their geographical location has on their economic status, and the impact their raced and gendered identities have on that experience. Localised information could also ensure that more nuanced policies are developed to address inequalities. Food insecurity is a marker of exclusion and poverty in urban and rural areas across South Africa, but women are more likely than men to be food insecure, especially in the rural areas. Data are combined from Statistics South Africa's Income and Expenditure Survey and Community Survey (both 2008) to arrive at a more accurate assessment of food insecurity at municipal level in South Africa. The National Department of Agriculture places food insecurity at 50%, while this study argues that approximately 64% of households in South Africa are food insecure, a result which has policy implications. Our study also uses data that provide a more nuanced approach that shows provincial and municipal variations that are much higher than the national average, which should support provincial and local government policies that address food insecurity more effectively. The article also argues that due to male-biased economic, cultural and community practices, women-headed households are most food insecure. In light of this information, the article provides a nuanced understanding of women's food insecurity in the country. We offer policy recommendations on how women's food insecurity could be reduced in the areas where it is most prevalent. The importance of gender-sensitive development policies, localised contextual knowledge, and innovative strategies that would assist women in their efforts to become food secure, particularly in rural areas across South Africa, are highlighted.

Rural nonfarm employment in developing countries in an era of globalization

AbstractRural nonfarm employment (RNFE) has become a topic of major importance in rural development, as by the mid 2000s, RNFE constituted 35% of rural incomes in Africa and 50% in both Asia and Latin America. The traditional view of RNFE was a sleepy hinterland activity cut off from changes in the national, let alone the global economy. That view was assailed by sweeping changes in rural areas starting with the Green Revolution, then rur‐urbanization, and lately, by globalization intervening via both trade and modernization of the national economy including the rise of modern retail and processing. In this article, we hypothesize and offer emerging evidence that the strongest and most positive effects on RNFE of globalization come in the zones that are rur‐urbanized, with a tradeables growth‐motor induced RNFE sector with clusters of small/medium enterprises for manufactures, and a preponderance of services. Surprisingly, the trade effects are least and the domestic market transformation effects are the strongest. The most challenges are posed for zones that are rur‐urbanized and dense zone RNFE with low‐moderate local growth motors. The least effects are on hinterland zones. The policy implications are to promote tradeables growth motors (key to creating RNFE in services, the major component of RNFE), and to incorporate “competitiveness”—in a changing urban and global economy—into RNFE promotion.

Does trade liberalization accelerate convergence in per capita incomes in developing countries?

The objectives of this paper are to examine whether trade and/or financial liberalization have resulted in the acceleration or deceleration of convergence of per capita real incomes in Africa, Asia and Latin America. Data for 14 Asian countries, 30 African countries and 20 Latin American countries are available, some of which never liberalized during the period 1970–1999. The panel data methodology and the concepts of beta-convergence and sigma-convergence are used for each of the regions. The study concludes that liberalization has accelerated convergence in real per capita incomes to their regional income levels for Asian and Latin American economies while for African countries, liberalization seems to have diverged real per capita incomes from its mean level.

Can Africa develop?

Can Africa Develop? Michael Chege (bio) Development and Democracy in Africa. By Claude Ake. Brookings Institution, 1996. 173 pp. This is the last book of renowned African political scientist Claude Ake, who died in a plane crash in Nigeria in November 1996. It is also one of his finest, the closing act to a spectacular academic career that began at Columbia University in New York (his alma mater) in 1969 and later took him to other campuses in the United States, Canada, Kenya, Tanzania, and Nigeria, as well as to the Woodrow Wilson Center and the Brookings Institution in Washington, D.C. Ake was also past president of the pan-African Council for the Development of Social and Economic Research in Dakar, Senegal. Though it inspired high hopes at independence in the 1960s, the continent that Ake traversed so often has since produced one of the most disappointing overall records of economic development and political stability of all the regions in the developing world. World Bank data indicate that real average personal incomes in Africa are lower today than they were in 1960. International news coverage of the region in February 1997 dwelt on civil war in Zaire, Burundi, and Sudan, and on the continuing strife in Somalia, Liberia, and Sierra Leone. Even allowing for the inevitable hyperbole and anti-African bias, there is genuine cause for concern. Development and Democracy in Africa constitutes a valiant effort to address this abysmal situation. In it, Ake makes an eloquent plea for combining democratic governance with new community-based development initiatives that emphasize self-reliance and are designed to build Africans’ self-esteem by giving individual communities the opportunity to set and work toward their own economic goals. Ake, then, does not bemoan the “marginalization” to which Africa has allegedly been subject in the post-Cold War era. On the contrary, international neglect is [End Page 174] portrayed as a blessing in disguise that can spur community action and advance the region along the path to self-reliance. Development, Ake says, is both a process and an end. For too long, according to this book, Africa’s development policies have been determined from without—by bilateral donors such as the U.S. Agency for International Development and its European counterparts as well as by multilateral development organizations like the World Bank, the International Monetary Fund (IMF), and the United Nations Development Programme. This has prevented African development projects from acquiring the domestic legitimacy that they need in order to take root, a situation aggravated by the authoritarian ways of African despots, whether civilian or military. Again and again Ake reminds us that “the problem is not so much that development has failed as that it was never really on the agenda in the first place.” The new citizen-based and community-based alternative that the book advocates has already acquired a wide following, especially among nongovernmental organizations (NGOs), local and external voluntary associations, and various churches. Some of these groups, working in the trenches with “the people,” have adopted a stridently populist line. So strong is the trend described here, however, that the World Bank and bilateral donors are now consulting with and funding such organizations, all in the name of reaching the people by bypassing government. The derailment of African nation-building initiatives can be traced to the authoritarian tradition established by the colonial authorities. Colonial rule, writes Ake, was based on force; it was arbitrary and inclined to compel obedience to unpopular policies like taxation, land acquisition, changes in indigenous laws, and abolition of participatory local authorities. Independence brought some change in the personnel managing the state but not in its policies; government “continued to be totalistic in scope, constituting a statist economy.” Worse, after self-rule came, the African political class nurtured a culture of unbridled competition for raw power, thereby marginalizing economic development, which increasingly became the concern of external organizations. Ake does not explain exactly how this particular political culture came about. He repeatedly proclaims that the premium placed on wielding power and exploiting it for personal gain is unusually high in the region; yet he neither attacks nor endorses the growing culture-based literature centered on...

Shall We Go Home? Increasing Urban Poverty in African Cities and Migration Processes

The impact of economic decline in 1980s as well as that of IMF structural adjustment programs on urban incomes in Africa is explored. The author notes that in addition to devastating real income of a large proportion of urban population the gap between real rural incomes and real urban incomes has often narrowed considerably. It appears that rate of urban growth in some African countries has slowed considerably and there is also some evidence that new forms of `reverse migration from urban to rural areas have occurred. An attempt will be made to assess this evidence drawing on examples from different countries including Zambia Uganda and Tanzania. (EXCERPT)

Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985

The long run trade orientation of an economy is measured in this article by an index which measures the extent to which the real exchange rate is distorted away from its free trade level by the trade regime. The technique for estimating a cross country index of real exchange rate distortion uses the international comparison of prices prepared by Robert Summers and Alan Heston. Resource endowment constitutes the norm and real overvaluation or undervaluation relative to this norm reveals whether incentives are directed to the domestic or international market. The index is constructed based on data for GDP/capita average price level in US dollars 1976-85 and GDP growth rate/capita 1976-85. Other sections are devoted the comparison of the procedure for 117 countries between 1976-85 and an examination of the empirical relationship between outward orientation and economic growth and sensitivity analysis. The results indicate that Latin America generally was overvalued by 33% relative to Asia and Africa was overvalued by 86%. The real exchange rate distortion index supports the view that Asian countries are more outward oriented. Asian economies have lower price levels which reflect relatively modest protection and incentives oriented to external markets. Latin American countries with moderately high price level and African countries with very high price levels reflect strong protection and incentives directed to production for the domestic market. An alternative specification which eliminates the dummy variables for Africa yields similar results with slightly lower magnitude; i.e. overvaluation is 60% instead of 86% for Africa and Latin America is overvalued by 39% instead of 33% over Asia. A table is provided which indicates by country the distortion and variability of the real exchange rate the GDP growth the 1976 GDP/capita and the investment rate. Another finding was that there is a significant negative relationship between distortion of the real exchange rate and growth of GDP/capita after controlling for the effects of real exchange rate variability and investment level with both the original specification and the alternative. The growth rate/capita of Latin American and African countries would increase 1.5-2.1% with a shift to move outward oriented trade policies. This gain as well as devaluation of the real exchange reate trade liberalization and maintenance of a stable real exchange rate would contribute to positive growth rates. In the analysis of the poorest 24 countries the result was that only rate distortion and not variability and investment rate explained the growth rate. The gain for Ghana for example of adopting the trade policies and exchange rate of Bangladesh would be 5% to its growth.

Measures to facilitate the return and reintegration of highly skilled migrants into African countries.

A very large number of skilled Africans are found to be operating in the developed industrialized countries of the West at a time when their national economies are crying out for their services. Ways must be found to return as many of these skilled Africans as possible to the African economy. This out-migration or brain drain has a number of causes, including: 1) real incomes in Africa have been on the decline in the past several years while prices were constantly rising. Professional and salaried workers seek employment in other countries that pay much higher salaries. 2) Promotion on criteria other than merit is common in Africa and diligence and high productivity are not often rewarded. 3) Political interference frustrates public services professionals; they are rendered unable to use their professional judgement in making decisions that affect the economic and social fabric. 4) The inadequacy of higher education facilities and opportunities in African countries encourages the brightest and best qualified Africans to go to Western Europe and North America for school; they tend not to return after graduation. 5) Political upheavals and general instability contribute to feelings of individual insecurity, sending Africans to seek sanctuary in more politically stable and less repressive environments. Actions needed to control this out-migration include: 1) incentive systems should be reviewed with a view to providing realistic levels of renumeration and working conditions should be made to promote job satisfaction and self-actualization. 2) Capacities and capabilities should be strengthened so as to ensure that production of goods and services becomes indigenized and that the development and operation of institutions emanates from within the continent. 3) Educational services should be expanded and improved to obviate the need for large numbers of Africans to seek educational opportunities abroad.