Rents, military elites, and political democracy

In autocratic regimes the military elite is in a position to extract rents, because without the support of the military the government is in general not able to sustain itself. In this paper, we empirically confirm the negative relation between transfers to the military and the degree of democracy for developing countries. We use an instrumental variable approach to account for the simultaneity that arises since the degree of democracy is itself a function of transfers to the military.     

Political instability and economic development in Sub-Saharan Africa: Some recent evidence

Political instability has become endemic to Sub-Saharan Africa. Since the early 1960s, when most of the African countries began to achieve independence, more than fifty coups have taken place in the continent. This rise in political decay has significantly affected economic development. This study examines the relationship between elite political instability and economic development in Sub-Saharan Africa. It concludes that lack of political stability has contributed significantly to economic stagnation in the continent of Africa.     

Female headship,feminization of poverty and welfare

Female-headed households are at greater risk of slipping into poverty than male-headed households. Indeed, sex and marital status of the head of household are the most important determinants of a family's poverty status in the US. Divorce, separation, death of a husband, and out-of-wedlock births can lead to female headship. Transfer payments, especially the Aid to Families with Dependent Children program, are blamed for contributing to increased marital instability and out-of-wedlock births. The authors examined the role of welfare benefits in influencing female headship. Preliminary results using standard estimation procedures indicate that transfers do not significantly influence female headship. Standard estimation procedures are, however, erroneous because they ignore differences in propensities to establish mother-only households. Therefore, adjusting for differences in propensities to establish female-headed households, the level of welfare benefits is indeed an important factor in explaining the variation in the changes in the birth rates to unmarried women. The use of a weighted measure suggests that welfare benefits, by increasing female headship of women who otherwise have low propensities to be female heads, have played a significant role in the feminization of poverty.     

Political instability and economic development in Sub-Saharan Africa: Further evidence

After more than three decades of independence, many countries in Sub-Saharan Africa have not yet developed stable political systems. Since the 1960s, when African countries began to achieve independence, many of them have encountered significant levels of institutional instability. In recent years, political violence has emerged as the most common method of governmental change. In this study, the effects of political violence on economic and human development in Sub-Saharan Africa are examined. It is seen that political instability is a significant constraint to the improvement of the human condition in the region.     

Rent Seeking in the Cameroon Economy: Krueger's Analytic Technique Helps to Account for Development Lag in Colonial States

Abstract . Traditional economic theory regards the social costs of monopoly as the reduction in both consumer and producer surplus as a result of monopolization of certain sectors of the economy. Recent research has shown that a proper accounting of the social costs of monopoly must include the costs of obtaining and maintaining monopoly positions. Anne O. Krueger used the term “rent seeking” to refer to the expending of scarce resources by entrepreneurs to fight for rents created through government activity in the economy. Excessive interference in the economy by government can result in an increase in the social costs of monopoly. In a developing country such as Cameroon, where government activity in the economy has been quite pervasive since the latter part of the 1800s, opportunities have been created for rent seeking. This type of activity has helped to impede the economic growth of the country.     

Preparing Africa for the twenty-first century: Lessons from constitutional economics

In the 1960s, when most African countries gained independence, they had an opportunity to select new political and economic institutions to promote growth and development. After more than three decades of political autonomy, it now appears that the opportunity made possible by decolonization was wasted and never fully utilized to promote sustainable development in the continent. As a result, after more than thirty years of independence, most of Africa remains poor and highly deprived. Political economy in the continent is characterized by opportunism, promoted by political coalitions whose primary objective is to subvert the rules to generate benefits for themselves. The end of the Cold War and the subsequent cessation of superpower rivalry, in addition to the demise of apartheid in South Africa, has provided policy makers in Africa another opportunity to choose new institutions to lead Africans into the twenty-first century. Public choice and constitutional economics provide guidelines that can be utilized to develop efficient and self-enforcing institutions to enhance development and effect significant increases in social welfare in Africa in the next century.