Structural adjustment in the Latin American and African mobile sectors

In recent times, there has been much discussion about structural changes taking place on the mobile front in Europe and the USA but rather little on developments elsewhere. However, it is in Latin America and Africa where the structure of the mobile sector has recently been undergoing the most rapid and unprecedented change. This paper sets out to explain what has happened in each case covering the period to end-2005, to explain the underlying rationale and to seek finally to answer the question whether there is a common pattern in both cases or whether they are essentially independent.     

Making the energy transition in rural east Africa: Is leapfrogging an alternative?

There is renewed optimism about the potential for leapfrogging in the rural energy sector of East Africa. By adopting highly efficient and renewable technologies many believe the region can rapidly bypass the conventional path of energy development and skip directly into the use of more efficient and environmentally friendly technologies. This study explores the potential for energy leapfrogging by examining three technological approaches targeted at rural households in East Africa: conventional grid expansion, renewable energy technologies supplying electricity, and improved cookstoves. The study identifies economic, social, political, and cultural factors limiting the ability of rural people to rapidly switch into using and/or supplying these technologies. The potential for leapfrogging may be overstated by planners and experts who focus on the technical and economic viability of the technologies while insufficiently considering the social conditions and economic realities of daily life in the region. Moreover, energy leapfrogging itself is considered a misconception. Energy transitions in rural areas are incremental processes—not leaps—dependent upon household and regional accumulations of technological capabilities. These capabilities have technical, organizational, and institutional components and are manifest in individuals' capacity to adapt to new technologies, their ability to take economic risks, and in their desire to modify their behavior. In designing technology dissemination or energy supply projects, planners must thoroughly account for the capabilities existing in rural areas.     

INTENSIFICATION OF RAINFED LOWLAND RICE PRODUCTION IN WEST AFRICA: PRESENT STATUS AND POTENTIAL GREEN REVOLUTION

The objective of the current paper is to explore the factors influencing the expansion and intensification of rice production in rainfed lowland sites. The village/lowland‐level data show the following: (1) the expansion of lowland rice cultivation has been driven by population pressure and accessibility to the market; and (2) the adoption of water control technologies is enhanced by the existence of immigrants and accessibility to the market. Rice cultivator data show that investment in water supply canals is influenced by land tenure security and that the canals enhance yield. This suggests that investment in water control technologies in rainfed lowland is necessary to realize a rice Green Revolution. Considering the fairly high average yield already achieved with water control technologies and the vast area of lowlands without water control technologies in rural area, there is a high potential of a rice Green Revolution in rainfed lowland in West Africa.     

Can Chinese aid win the hearts and minds of Africa’s local population?

The vast increase in China’s aid projects has raised mounting concerns about the effectiveness of Chinese aid. To assess Chinese development assistance in Africa from the perspective of local residents’ attitude toward Chinese projects, we geographically match Chinese aid projects in Africa from 2000 to 2012 to the respondents of the Afrobarometer survey. By comparing the attitudes toward China reported by individuals who live close to ongoing Chinese projects at the time of the interview to those of individuals who live near sites where Chinese projects will be implemented in the future, this study establishes that the presence of Chinese projects induces a positive view of Chinese aid within the local population. Our mechanism analysis shows that people from all statuses can benefit from economic infrastructure projects, while the advantaged tend to have a better view of Chinese aid. In contrast, social infrastructure aid inspires a more positive view among disadvantaged people. We thus demonstrate that aid can have a differential impact on local attitudes, depending on aid types and statuses of recipients.     

Corporate carbon risk,voluntary disclosure,and cost of capital: South African evidence

The study examines the interplay among corporate carbon risk, voluntary disclosure, and cost of capital within the context of South Africa, a “rising power” in the climate policy debate. We develop a system of simultaneous equations models and analyze data drawn from firms traded on the Johannesburg Securities Exchange (JSE), for the period 2010 to 2015, using the three‐stage least squares procedure. We find that voluntary carbon disclosure is associated with lower overall (and equity) cost of capital, after controlling for corporate carbon risk. We also find that firms with higher carbon risk tend to provide better quality carbon disclosure and signal the possibility of high carbon risk to avoid negative market reactions resulting from concealing carbon information. Although the capital market does not appear to incorporate individual firm's carbon risk exposure into the required cost of capital, we find that it generally requires higher returns for companies operating in carbon‐intensive sectors. These findings suggest that firms could exploit the virtues of voluntary carbon disclosure to reduce their overall (and equity) cost of capital. Our findings also imply that regulators and policymakers could point to the cost of capital reducing role of voluntary disclosure to lure firms into voluntarily providing superior quality carbon disclosures.     

Gender,entrepreneurial characteristics,and success: Evidence from Ethiopia

Africa‐based research on gender and entrepreneurship is very limited. This study compares the characteristics and relative successes of men and women entrepreneurs in Ethiopia with a view of isolating the unique hurdles encountered by female entrepreneurs. While both genders in this sample were pulled, rather than pushed, toward entrepreneurship, women were more influenced by family factors. With regard to personality traits, men entrepreneurs in this study were generally more confident in their ability to succeed, whereas women exhibited higher fear of failure and external locus of control. Women entrepreneurs also reported lower business and entrepreneurial skills and relied more on government funding. Furthermore, male entrepreneurs outperformed females in terms of sales, employment growth, and profitability. The study identifies areas in which the skills and competencies of Ethiopian women entrepreneurs can be developed through targeted training programs to enable them to more clearly recognize entrepreneurial opportunities and achieve business growth. The findings of this study and the concrete suggestions it offers to strengthen the success of Ethiopian women entrepreneurs may be relevant to other African countries as well.     

Exchange market pressure,stock prices,and commodity prices in West Africa

As Africa continues its decade of rapid economic growth, the continent also faces the risk of becoming more susceptible to financial ‘contagion.’ Capital flows and trade linkages might cause one country’s currency market to influence those of its neighbors. Likewise, shocks to global commodity or asset markets might induce a crisis in one or more countries in the region. This study generates monthly measures of exchange market pressure (EMP) for four individual West African countries, as well as for the WAEMU franc zone, from 2002 to 2012. Vector Autoregressive (VAR) methods are then used to test for linkages among them, as well as to analyze the effects of various external price shocks. A number of spillovers are uncovered. More importantly, local connections dominate global ones in the case of stock- and commodity-price declines. Ghana, for example, is shown to be a ‘commodity currency’ when West African commodity prices are included in the VAR, but not when a global index is used.     

Democracy,Development and Comparative Institutional Advantage in Africa

Development in Africa has been stalled for decades in a vicious cycle of poverty, underdevelopment, corruption, and conflict. In this paper, we argue that donors should focus on democracy and accountability as a first priority in development aid. We use the theory of comparative institutional advantage to identify the key institutions that are most likely to facilitate economic development in communities in the modern world. These institutions include an efficient non-corrupt government sector. Subsequently, we discuss how a lack of democracy and accountability inevitably undermines development efforts and investment, referring especially to the Ethiopian experience but also considering the experiences of other African dictatorships. Finally, we discuss how donors, by emphasizing democracy and accountability along with other policies that support democratic institutions, have a greater chance of effectively contributing to African economic development.