OpenUCT :: Browsing by Subject "Economic Development"

Browsing by Subject "Economic Development"

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Open Access
A Critical Assessment of the Sustainability of South Africa's Fiscal Policy and Related Institutional Frameworks
(2019) Ngewana, Azande; Mateane, Lebogang
Historically, there are many examples of countries that have had to deal with the unpleasant consequences of economic mismanagement. A recent example is Venezuela, which has imploded into hyperinflation. It is therefore important to consider the question of fiscal sustainability in the South African context. This study ultimately aimed to test the sustainability of South Africa’s fiscal policy and public debt, with fiscal policy defined as the satisfaction of the intertemporal budget constraint. The Augmented Dickey–Fuller test was used to assess the stationarity of national government revenue and national government expenditure – both expressed as percentages of GDP – while the Engle–Granger test was used to test the residuals of the regression between national government revenue and national government expenditure for a long-run relationship. A long-run relationship was found between these two variables, suggesting that fiscal policy and South Africa’s public debt are sustainable. However, due to weakened institutions, the South African government should remain aware that the country’s fiscal policy could easily move into unsustainable territory.
Open Access
A model for the utilisation of networks and leveraging of the economic benefits of migration capital in emerging markets
(2018) Chunnett, Wanda Ingrid; Shelley, Elanca
The research considers the question: What can emerging market economies do to leverage sustainable growth opportunities from resource constrained, involuntary migrant entrepreneurs? It explores the positive economic impact that involuntary migrant entrepreneurs have made in an emerging market economy, South Africa, through the establishment of sustainable businesses. The objective is to understand the underlying enablers and constraints that facilitated the establishment of such businesses historically and to use them to develop a model that might be implemented by public and private institutions to maximise the economic benefits that groups of migrant entrepreneurs can deliver. It took the form of an inductive study of behavioural attributes to which a critical realist epistemology has been applied, using network theory and the lens of “desirable difficulties” within the context of social, economic and migration capital. The research was inspired by the work of Elizabeth and Robert Bjork (1996 and 2015) and extends the concept of desirable disabilities into the realm of societal “disabilities” that have been overcome by resource constrained migrant entrepreneurs, to accumulate the necessary social, knowledge and economic capital (Bourdieu, 1985) to establish sustainable businesses. The theoretical contribution of the research is to take the involuntary migrant debate beyond the "refugee as burden" paradigm, by focusing on constrained, involuntary migrants as potential economic contributors through: 1. A theoretical proposition that the legal, knowledge, language and economic capital required by constrained migrant entrepreneurs to leverage the enabling disabilities that they have and to establish their locus of power, is augmented by additional "migration capital", an offshoot of mobility capital, which originates from the interactions within and between the migrant group networks. 2. The development of a model, based on migration capital, which may be used by emerging market countries to maximise the economic growth opportunities that severely resource constrained entrepreneurs can offer. The model utilises a newly defined form of capital, namely migration capital, as its basis. It provides an alternative view to traditional, “push” based economic theories which have categorised refugees and migrants as economic burdens that must be supported by the host country for extended periods of time, to the detriment of the local population. The “pull” model is premised on the finding that migration is a temporal rather than geographic or ethnic issue and that there is additional value to be extracted over the lifespan of a migrant business if the social integration can be expedited through the facilitation of migration capital in addition to individual social, knowledge and economic capital. It considers the benefit that can be realised by the host country, where the process driver remains the migrant entrepreneur, eager to become established in a new country and achieve their long term vision.
Open Access
Analysis of factors influencing the technical efficiency of smallholder maize farmers in northern province, Zambia
(2023) Mumba, Elijah; Conradie, Beatrice
This study investigated the efficiency of smallholder farmers in Northern Province, Zambia. The research utilized data collected in 2014/2015, which was representative of the province and gathered by the Institute for Agricultural Policy Research Institute in collaboration with the Zambia Statistical Agency and Ministry of Agriculture. To assess technical efficiency, a stochastic production function with a translog functional form was developed. The model included four characteristics related to the farms and farmers, as well as three institutional variables, all of which were found to be statistically significant. The efficiency levels observed ranged from 0.02 to 0.93, with a median value of 0.67. The findings indicated that the primary factors influencing total output were the extent of cultivated land, followed by the use of fertilizers. The empirical analysis demonstrated that access to credit, extension services, and farmer input support programs, as well as the distance between the household's residence and the farm, the gender, age, and educational level of the household head, all played vital roles in determining the technical efficiency at the farm level.
Open Access
The announcement effect : the impact of early warnings of future thresholds under different framing and risk contexts
(2015) Child, Alexander Fairfax; Visser, Martine
The effect of announcing future institutional change is investigated in three different contexts: a gains frame, a loss frame, and a loss frame with risk. The institutional change is the transition from a normal public goods game into a threshold public goods game. Announcements may change subject behaviour, through influencing their expectations, before the implementation of the new institution (adjustment effect) and/or after the implementation (adaptation effect).We find that announcements in the gains frame cause zero adjustment effects and negative adaptation effects; while announcements in the loss frame cause positive adjustment and adaptation effects. However, including risk into the threshold phase of the loss frame causes the announcements to have zero effects. These results have important implications for the climate change debate.
Open Access
Autos for Africa? : possibilities and pitfalls for an automotive industry in Africa
(2016) McLennan, Thomas; Black, Anthony
Sub-Saharan Africa (SSA) has grown very rapidly over the last decade. Demand for light vehicles has rapidly increased in this period, albeit from a very low base. Growing demand is almost entirely supplied by the import of used vehicles from the developed world. This has led to an enormous automotive trade deficit in the region where, apart from South Africa, there is almost no domestic production. The dissertation establishes the trends and scale of automotive demand in SSA and then considers the question of whether and how the region can begin to meet this booming demand by developing its own industry. Despite limited industrialisation levels and relatively small domestic markets, some larger countries, such as Nigeria and Kenya, are putting policies in place to encourage domestic production. However, if countries follow individual national strategies it is unlikely that any will have sufficient market scale or investment levels to become sustainable automotive producers. A regional automotive strategy needs to be adopted in SSA in order to attract large scale productive investment.
Open Access
B-BBEE and its impact on the South African construction industry
(2016) Mpanza, Jabulile; Levy, Brian
This dissertation seeks to critically investigate, examine and describe how four large South African construction companies have responded to and engaged with Broad-Based Black Economic Empowerment (B-BBEE). Using these companies as a case study, namely, Murray & Roberts, WBHO, Group Five and Basil Read, the paper highlights the extent to which BEE and later B-BBEE implementation has been effective in so far as meeting its objectives as articulated in the scorecard that is embedded in the Construction Sector Black Economic Empowerment Charter. Moreover, the study discusses the strategic changes undergone by each of the firms over a twenty year period (1994-2014) in their efforts to comply with policy, while remaining profitable and sustainable. Additionally, through an evaluation of these corporate strategies and various growth paths, the paper aims to articulate the approaches employed by each company in the face of a reformed political environment, assessing the common tendencies displayed in the industry. The paper consequently seeks to fill in the gaps in literature with regards to the strategies that large companies in the construction industry have gradually adapted in order to continue operating in a democratic South Africa. Thus, through its investigations, it addresses how and why the (1) industry designed and adapted its corporate strategies to fit the institutional arrangements, i.e. B-BBEE, (2), how the industry has responded and implemented BEE, and (3) how the industry has influenced the policy.
Open Access
"Beyond the Sparkle" : diversification of mineral-rich economies: The case of Botswana
(2018) Modungwa, Bame; Black, Anthony
Botswana is known as Africa's growth miracle, having transformed from one of the poorest countries in the world at independence, into a middle-income economy in a short period of time. The country's success has been reliant on high revenues accrued from its diamond mining industry, however, government expects diamond production to decline rapidly in the next 10 - 15 years. Diamond depletion presents a threat to Botswana's economic growth, development and macroeconomic stability, which has created the urgent need for economic diversification to be realised in the near future. This dissertation explores the concept and theory behind economic diversification for resource abundant countries. Country cases are reviewed alongside the literature on economic diversification, in order to build an analytical framework on economic diversification for mineral-rich economies. The drivers of diversification are classified under three themes: the enabling environment approach, the interventionist approach and the sector-driven approach. Botswana's efforts to diversify are evaluated against these themes, highlighting the prospects and barriers to success. The dissertation concludes that the quest for economic diversification is not an easy one, particularly in countries such as Botswana with single-resource dependence. Moreover, in order for Botswana to succeed, it will require a policy mix incorporating aspects of the three themes. The government of Botswana (GoB) must ensure that they develop an enabling environment to incentivise increased export development; they should invest in physical and human capital in order to facilitate private sector growth, and they should set policies and targets to support sectors that show potential to become internationally competitive.
Open Access
Cardiovascular risk status of Afro-origin populations across the spectrum of economic development: findings from the Modeling the Epidemiologic Transition Study
(2017) Dugas, Lara R; Forrester, Terrence E; Plange-Rhule, Jacob; Bovet, Pascal; Lambert, Estelle V; Durazo-Arvizu, Ramon A; Cao, Guichan; Cooper, Richard S; Khatib, Rasha; Tonino, Laura; Riesen, Walter; Korte, Wolfgang; Kliethermes, Stephanie; Luke, Amy
Abstract Background Cardiovascular risk factors are increasing in most developing countries. To date, however, very little standardized data has been collected on the primary risk factors across the spectrum of economic development. Data are particularly sparse from Africa. Methods In the Modeling the Epidemiologic Transition Study (METS) we examined population-based samples of men and women, ages 25–45 of African ancestry in metropolitan Chicago, Kingston, Jamaica, rural Ghana, Cape Town, South Africa, and the Seychelles. Key measures of cardiovascular disease risk are described. Results The risk factor profile varied widely in both total summary estimates of cardiovascular risk and in the magnitude of component factors. Hypertension ranged from 7% in women from Ghana to 35% in US men. Total cholesterol was well under 200 mg/dl for all groups, with a mean of 155 mg/dl among men in Ghana, South Africa and Jamaica. Among women total cholesterol values varied relatively little by country, following between 160 and 178 mg/dl for all 5 groups. Levels of HDL-C were virtually identical in men and women from all study sites. Obesity ranged from 64% among women in the US to 2% among Ghanaian men, with a roughly corresponding trend in diabetes. Based on the Framingham risk score a clear trend toward higher total risk in association with socioeconomic development was observed among men, while among women there was considerable overlap, with the US participants having only a modestly higher risk score. Conclusions These data provide a comprehensive estimate of cardiovascular risk across a range of countries at differing stages of social and economic development and demonstrate the heterogeneity in the character and degree of emerging cardiovascular risk. Severe hypercholesterolemia, as characteristic in the US and much of Western Europe at the onset of the coronary epidemic, is unlikely to be a feature of the cardiovascular risk profile in these countries in the foreseeable future, suggesting that stroke may remain the dominant cardiovascular event.
Open Access
Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution
(2018) Moosajee, Muhammad Ali; Edwards, Lawrence
Iraq is a country with exceptional natural resource wealth, but also consistent political turbulence manifested by high levels of state corruption, patronage networks, weak governance, poor institutional quality, civil unrest and sectarian conflict, all of which have undermined the sovereignty of its vast petroleum wealth and limited its potential for economic prosperity. As a mechanism for reducing the high levels of corruption and patronage networks as well as stimulating economic activity, this dissertation proposes the use of citizen-based direct distribution of oil revenues and studies the economic impacts of this policy using Social Accounting Matrix analysis. The methodology for this analysis includes testing the policy at different levels of per capita distribution, as well as with three variations in the design of the distribution programs. These variations include a universal cash transfer funded by oil revenue surpluses, a targeted cash transfer funded by oil revenue surpluses and a universal cash transfer funded by the reallocation of funding from the existing food subsidy system. The results illustrate that in each of the scenario variations, cash transfers are shown to have a significant positive impact on household incomes, producing activities and aggregate demand in the economy. The results also illustrate a net welfare gain to households when replacing the existing food subsidy system with cash transfers. In the comparison of distribution variations, targeted programs are shown to have the largest effect on the economy, primarily as lower-income households were allocated a greater proportion of income and subsequently also spend a greater proportion of their income on goods with lower leakages. Higher-income households, who are non-recipients in the targeted programs, benefit from targeted programs through the indirect/induced effects, which are largest in comparison to the other distribution variations. The results also show increased consumption on essential goods & services, primarily agricultural produce, which would ease concerns that cash transfers may generate increased consumption on non-essential/temptation goods.
Open Access
Constraints to Small Firm and Medium’s Contribution to Economic Growth in Zambia
(2019) Matakala, Bridget Sikopo; Mundia, Kabinga
Small to medium scale enterprises (SMEs) arguably drive economic growth and job creation in developing countries, but factors that hinder their growth are generic or specific to sectors and remain a crucial area of research. This study examines factors constraining SMEs from optimally contributing to economic growth of Zambia. The study answered the following research questions; what factors act as constraints for SMEs to contribute towards economic growth; how conducive are the policy and institutional infrastructure for the SMEs to operate efficiently and to establish whether the evidence presented by these factors are specific to Zambia or apply elsewhere. For research design, the study adopted the mixed research approach. Both quantitative and qualitative research approaches were implored in order to produce the findings outlined in this report. Simple random sampling was used to draw a total of 250 SMEs to which structured questionnaires were administered. Semi-structured interviews were also conducted with three major stakeholders. The study used the statistical package of social science (SPSS) to analyse the quantitative data while qualitative data was analysed thematically- by identifying key themes and summarizing related information under each theme- for perspectives around SMEs contribution to economic growth. The study findings identify internal and external factors that constrain SMEs from contributing efficiently to economic growth and these include; 1) poor access to finance, 2) competition, 3) lack/inadequate infrastructure, and 4) lack of skills and training and these are similar across regions and other countries. On the other hand, it was stated that the high cost of production (as a result of high/multiple taxes and tariffs) prevent SMEs ability to effectively contribute to economic growth. The findings further show that institutionalised efforts created to ensure the SMEs flourish contribute effectively to economic growth. However, the correlation between targeting and segmentation of the SMEs for funding key areas of economic activities is not clear. Results show that the major factors according to the survey were the failure to access finance as attested by 160 of the 250 respondents who put this as the biggest impediment in success of their business and 65 of the respondents gave high taxes as the factor affecting them the most. The rest of the respondents gave competition and the absence of appropriate infrastructure to support business growth as a reason for poor performance and contribution to wider economic growth. Additionally, the findings show that there is no significant relationship between internal and external constraining factors and enterprise contribution to economic growth. To ensure greater SME contribution to economic growth, this study emphasises government interventions in financial services and infrastructure development, clarity in the implementation of policy and institutional provisions, encouragement of SME value-chain and market linkages as well as creation of knowledge hubs.
Open Access
Crowding-out Of Household Expenditure By Tobacco In Ghana
(2019) Masa-ud, Abdul Gafar Abubakar; Van Walbeek, Corné
This paper examines whether other expenditure in Ghanaian households is crowded out by expenditure on tobacco over the period under study (2005/2006 and 2012/2013) and whether the magnitude of crowding-out over the period has been changed by the introduction of the tobacco control law in July, 2012. The paper uses household survey data from the Ghana Living Standards Survey in the years 2005/2006 and 2012/2013. A system of quadratic conditional Engel curves was estimated for a set of eleven groups of commodities for both periods. The results show a crowding-out of food, alcohol, clothing and transport and a crowding-in of furnishings, health and communication expenditure by tobacco. The magnitude of crowding-in and crowding-out declined over the period under study. The tobacco control law of 2012 was positively associated with a reduction in the prevalence rate of tobacco use among households, and a reduction in household budget share allocation to tobacco.
Open Access
Determinants of student achievement in Botswana, South Africa and Zimbabwe : a multilevel approach
(2016) Ndlovu, Ntobeko; Piriano, Patrizio
An educated population has significant advantages relative to an uneducated one, since education has a high economic and social payoff. However, in the education process, scholars are not in agreement on which factors better explain student achievement. Some argue that school resources are key determinants, whereas other scholars maintain that factors outside the school better predict student achievement. Even within these sentiments, there are arguments on which school-level, classroom-level or student-level variables better explain achievement. Knowledge of such factors is critical, as it helps stakeholders to devise strategies that improve student success. It also helps to maximise budget allocations and at the same time gets the most out of per dollar expenditure. This study has used data from the Southern and Eastern Africa Consortium for Monitoring Educational Quality (SACMEQ III) to estimate the determinants of student mathematics achievement in three developing countries in Southern Africa; namely, Botswana, South Africa and Zimbabwe.
Open Access
Developing a South African services agenda : case study of the mining services sector
(2015) Mtshali, Sithembile Nokwazi
The services sector accounts for approximately 70% of South Africa's gross domestic product (GDP) and has emerged as one of South Africa's key exports with regional and global destinations. The sector is also a key provider of employment registering just above 8.5 million jobs in March 2014, according to Statistics South Africa. It is for this reason that the sector has been earmarked to give the required impetus to realise the export driven growth, which underpins the current government strategy for economic development and growth. Using the mining services sector, as a case study, this study highlights the importance of services, as an important input to operating costs in the production and manufacturing sectors. It further highlights the importance of services in determining the competitiveness of the manufacturing and production sectors, through effective sourcing and more importantly availability. This is done in the context of the growing African market, especially the mining sector and the opportunities presented by new mineral discoveries in Africa. This study is presented to support the development of a strategic and comprehensive trade strategy for services. Tracking the development of South Africa's trade policy, the rationale for the different positions that have been taken by government are presented to illustrate how government has used trade policy as a tool to advance its objectives at varying stages of South Africa's economic development. The study thereafter undertakes an analysis of the current trade policy to better understand how government view the role that is to be played by trade policy in supporting economic development. This analysis identifies gaps within the current trade policy in terms of the role that trade policy ought to play.
Open Access
Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'?
(2017) Nxele, Musawenkosi; Morris, Michael
This study sets out to evaluate the impact of industrial mining on local economies, within a context of a developing country with a strict procurement policy on its extractive industry. It contributes empirical evidence on two main ideas on the impact of mining on local communities. The one idea is that mining has a positive impact on local communities because it creates economic activity through economic linkages with local markets; and thus contributes to local industrialisation, economic development, and poverty reduction. The other idea is that mining harms local economies through negative impacts on the environment; which hurts local agriculture and health, leading to an increase in local poverty. By evaluating a case study of a poor rural economy driven by mining and agriculture, this study measures the net average impact of the opening and expansion of mining on local income poverty. Using ward level data combined with firm data, the study essentially uses a difference-in-differences estimation procedure, by exploiting a local input demand shock from large industrial mines, as well as changes in distance to a mine, as sources of variation. The study finds that the opening of a mine is associated with poverty reduction in surrounding communities, while the impact from an expansion of a mine depends on the type of commodity mined. Unpacking these results by commodity gives insight into the concentration of labour and community unrest in the platinum and gold mining sectors in South Africa. The findings of this study remain robust to different indicators of mine expansion, and checks for alternative explanations such as selective migration and sample checks. The study uses the Limpopo Province of South Africa as a suitable case study.
Open Access
Dreams come true: youth entrepreneurs in eSikhawini township, Richards Bay
(2016) Manqoyi, Ayanda; Fuh, Divine; Broadhurst, Jennifer Lee; Franzidis, Jean-Paul
This research project examines the emergence of youth entrepreneurs in the moments just before mining and industrial activities develop within a community. It focuses on how young people engage with the hopes and promise of opportunities engendered by the expansion of mines and industry within a particular place. Using ethnography as methodology, it looks at how young people's dreams and desires in eSikhawini, a township in the Richards Bay area within the uMhlathuze Municipality, are activated by the coming of mining activities and how they use these to create entrepreneurs. In the context of mining and industrial expansion, young people use the promise of opportunity and the pursuit of dreams and desires to create particular kinds of entrepreneurs who attempt to stabilize their lives and that of their community in the face of precarity. It argues that the interrelations emergent in the daily enterprise of creating a stable future are key resources and insurance against uncertainty that sustain "community" in the context of eSikhawini. Overall, the thesis attempts to demonstrate that by recognising and strengthening youth entrepreneurs' capacity to aspire and realise their dreams can entrepreneurship interventions and programmes foster and sustain empowering relationships amongst marginalized people living in areas affected by mining and mineral beneficiation.
Open Access
Economic Complexity and the Potential for Green Growth in South Africa
(2020) Wewege, Sarah Joy; Bhorat, Haroon
South Africa's reintegration into the global economy post-1994 has not produced the expected levels of industrialisation and growth-enhancing structural transformation that has traditionally been achieved by developed countries in the past. South Africa faces the triple challenge of poverty, inequality and unemployment and needs structural growth that is inclusive and sustainable. However, trying to emulate the traditional structural transformative growth paths that developed countries have followed previously, will prove unsuccessful due to changes in the global economy. This paper, therefore, argues that an alternate growth path is needed, especially given that global warming and the effects of climate change act as a threat multiplier to economic growth and development. Furthermore, the world economy is shifting away from fossil fuels and resource depletion towards greener technologies and products. South Africa needs to adopt a growth path that accounts for the current climate and global context to ensure sustainable and inclusive growth for future competitiveness. This paper, using the Economic Complexity Methodology, identifies green industries that South Africa is best positioned to develop and grow given the existing knowledge and capabilities within the economy. A case study is conducted on the wind-power industry which proves to be a promising option given South Africa's current economic climate and the potential for employment creation. This paper aims to highlight the opportunities for the development of green industries in South Africa and the limitations that hinder this potential.
Open Access
Employment opportunities in the South African hotel industry with special reference to tourism
(1986) Uken, Ernst-August; Ferrario, Franco
The continued growth of the South African tourist industry was assumed and projections up to year 2020 were made to establish the corresponding growth in employment opportunities in the hotel industry. Overseas tourism is sensitive to and dependent on many factors. These were identified and the performance over the past two decades for bona fide overseas visitors, excluding mere border crossings, were extrapolated, accepting that oscillations about the suggested trend line will become greater in the future. In order to predict the growth of domestic tourism, cognisance had to be taken of the demographic development of the various population groups. The distribution of wealth among the various groups was estimated in the short, medium and long terms. On it depends the choice of accommodation when going on holiday. An evaluation was made of the employment pattern in the South African hotel industry. Published data from the Central Statistical Services and the Bureau of Financial Analysis (BFA) of the University of Pretoria were used. The 1982 Manpower Survey of the BFA proved particularly useful in establishing the present distribution of skilled staff in the industry by hotel grading and by geographical area. Performance ratios were calculated relative to capital invested and to revenue earned. The lowest staff to room ratios were used as criterion for optimal and most efficient usage of staff. The model thus developed with the aid of the Hewlett Packard STATP computer program, was based on actual present performance of a certain category of hotels. Unlike other approaches reported in the literature, a clear distinction was here made between skilled and unskilled labour. This distinction is considered to be of prime importance to any developing country where a shortage of skilled staff generally prevails, in contrast to a vast supply of untrained labour.
Open Access
Essays on institutional evolution and economic development: evidence from Nigeria
(2015) Fadiran, David Oluwatosin; Sarr, Mare
The important role of institutions is relatively agreed on within the growth literature, with most empirical evidence pointing towards a positive influence of institutions on economic growth. However, empirical analysis of the institutions and growth nexus have faced a few problems, which include: the lack of a clear distinction between the different types of institutions; (i.e. political institutions, economic institutions, and customary institutions); a lack of long-run data measuring institutions for most of sub-Saharan Africa; and the paucity of country specific studies - the majority of the empirical evidence have mainly focused on cross-country analysis. While extensions from cross-country analysis to country specific analysis is growing, empirical studies focused on sub-Saharan Africa remain limited. Within the African context, majority of empirical evidence suggest weak institutions as one of the main causes of its poor economic performance. However, due to the paucity of long-run data on institutions, such an hypothesis has not been empirically tested for specific countries. Motivated by these gaps, this thesis contains three essays that examine three types of institutions and their impact on the economy. The specific issues focused on include: the evolution of institutions; persistence of institutions; interdependence between political and economic institutions; interdependence between institutions and economic development; and the role of institutions in determining resource wealth effects. This thesis uses Nigeria as a case study, because of its standing as one of the larger economies in sub-Saharan Africa, especially in terms of its natural resources. In addition to this, Nigeria has experienced numerous regime and constitutional changes over the past few decades which may lead to interesting institutional dynamics.
Open Access
Essays on institutions and economic development in Kenya
(2015) Letete, Emmanuel Maluke; Mare, Sarr
This thesis focuses mainly on three related issues of the broader new institutional economics and political economy research: (i) the evolution of formal economic and political institutions over time (ii) the causality between political institutions and economic institutions, and that between institutions and economic development; (iii) and the role of institutions on economic development through the channel of foreign direct investment, and on the control of rent seeking and corruption in Kenya. These issues are discussed in four distinct essays, each essay constituting an independent and self-contained chapter. It adopts the conceptual framework on institutions proposed by Douglass North. The central theme of the thesis across all chapters is the demonstration of how political players holding de-facto political power operating under weak political rights and civil liberties use legal operators to benefit themselves and their close associates. For instance, starting with British rule - protectorate period (1885-1920) and colonial period (1920-1963) - an extensive legal apparatus designed by those holding de-facto political power expropriated much of the land and redistributed it to themselves at the expense of the indigenous populations whose political rights and civil liberties were crossly undermined. However, even after independence, several political players in the newly independent Kenya made little effort to fundamentally change the colonial laws that governed land rights and could not as well promote strong political rights and civil liberties. The thesis argues that despite pressures from the populace, political leaders and their interest groups holding de-facto political power entrench themselves in the system under weakly institutionalized environment, and oppose the constitutional reforms by all means including force, since such reforms go against their interests. The delay in such reforms often leads to the breakdown of governance. Such breakdown inevitably leads to conflict and social crisis such as the Kenya post-election crisis of 2007. The chapters in the thesis are organized in such a way that they start by tracing the evolution of rights promoted by people holding de-facto political power, then later the remaining chapters take on the assessment and implications of how such rights promoted under weakly institutionalized environment affect economic outcomes.
Open Access
Essays on the economics of foreign aid in Niger
(2017) Pedrosa Garcia, Jose Antonio; Leiman, Anthony; Sarr, Mare
This thesis identifies the gaps in the literature on foreign aid, and tries to fill some of them focusing particularly on Niger, a country that has received aid since its independence in 1960, yet remains one of the world's poorest. The work contributes to the literature in three ways: First, it addresses moral hazard: the relationship between the International Monetary Fund (IMF) and the country is analysed through a historical case study. Niger's requests for assistance are accompanied by promises to undertake reforms; however, once aid is disbursed, these undertakings rarely materialize. Despite this record of poor (and deteriorating) compliance, IMF aid continues to flow, engendering perverse incentives and moral hazard. Secondly, it analyses whether aid is associated with poverty reduction. Aid is correlated with poverty, which is to be expected due to its pro-poor targeting nature. However, this study found increases in poverty associated with communities which were recipients of aid. To shed more light on this, households receiving aid were compared with those receiving no project assistance at all, and with households who benefited from non-aid based development projects. The results showed that changes in poverty levels among aid recipient households were not statistically different to those among households receiving no assistance. However, households benefiting from aid under-performed those who benefited from other projects. Thirdly, it explores whether aid brings utility to households through the provision of public goods. The results suggest that aid projects do help households. However, other sources of development projects are more efficient at doing so. Information is the key: it is a vital prerequisite for projects to address the needs of the population, and not all donors have the same information. Information can be obtained through co-funding projects with other donors, although there are also coordination costs. The models estimated allow the prediction of the benefits a project could provide to a household. Such predictive abilities could allow policymakers to coordinate donors' initiatives to maximize their effectiveness. However, at present Niger lacks the capacity to achieve such coordination. Furthermore, such an approach would involve having to reduce the least efficient donors to mere providers of finance (i.e. channel their resources through other donor types), a role they might not be willing to accept.

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