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Economic and Development Problems in Sub-Saharan Africa

Economic and Development Problems in Sub-Saharan Africa. Nicholas Spaull & Nico Katzke. A little bit about me… Nicholas Spaull I love to Travel Studied at UKZN / SUN / UCT Economics by profession (PhD...) Education by passion Office: Schumann 202 NicholasSpaull@gmail.com NicSpaull

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Economic and Development Problems in Sub-Saharan Africa

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  1. Economic and Development Problems in Sub-Saharan Africa Nicholas Spaull & NicoKatzke

  2. A little bit about me… • Nicholas Spaull • I love to Travel • Studiedat UKZN / SUN / UCT • Economicsby profession (PhD...) • Educationby passion • Office: Schumann 202 • NicholasSpaull@gmail.com • NicSpaull • www.nicspaull.com

  3. Admin Course information 3 American credits; 6 ECTS credits Venue: Wilcocks 3018 Mondays 10:00 – 13:00 Tuesdays 09:00 – 12:00 *NB – see lecture schedule for dates! ___________________________ Evaluation 4 x MCQ tests 80% Class participation:20% There will be no exam. **The above is subject to change

  4. What I want to accomplish in this course The aim of this course is to get you to think critically about some of the major developmental issues facing Sub-Saharan Africa today. Some caveats: • This is not a typical course • I am only a graduate student, not the Oracle at Delphi But… • It will be interesting! • You will learn how to think and you will learn about Africa • More specifically…

  5. Economic and Development Problems in South Africa and AfricaUnderstanding Foreign Aid

  6. Aid – The ‘good’... • Sachs • ‘Poverty trap’  • Firemen logic • Big push • Conclusion? • BIG SOLUTION Health – Education - Infrastructure

  7. Economic and Development Problems in South Africa and AfricaEducation in SA?

  8. $ Ed Benefits of education H S Ec • Improved human rights • Empowerment of women • Reduced societal violence • Promotion of a national (as opposed to regional or ethnic) identity • Increased social cohesion • Lower fertility • Improved child health • Preventative health care • Demographic transition • Improvements in productivity • Economic growth • Reduction of inter-generational cycles of poverty • Reductions in inequality Economy Health Society Specific references: lower fertility (Glewwe, 2002), improved child health (Currie, 2009), reduced societal violence (Salmi, 2006), promotion of a national - as opposed to a regional or ethnic - identity (Glewwe, 2002), improved human rights (Salmi, 2006), increased social cohesion (Heyneman, 2003), Economic growth – see any decent Macro textbook, specifically for cognitive skills see (Hanushek & Woessman 2008)

  9. Labour Market • University/FET • Type of institution (FET or University) • Quality of institution • Type of qualification(diploma, degree etc.) • Field of study (Engineering, Arts etc.) • High productivity jobs and incomes (17%) • Mainly professional, managerial & skilled jobs • Requires graduates, good quality matric or good vocational skills • Historically mainly white High quality secondaryschool Unequal society High SES background +ECD High quality primary school Minority (20%) Some motivated, lucky or talented students make the transition • Vocational training • Affirmative action • Big demand for good schools despite fees • Some scholarships/bursaries Majority (80%) Quality Type Attainment Low quality secondary school • Low productivity jobs & incomes • Often manual or low skill jobs • Limited or low quality education • Minimum wage can exceed productivity Low SES background Low quality primary school cf. Servaas van der Berg – QLFS 2011

  10. Economic and Development Problems in South Africa and AfricaPoverty and Inequality in SA

  11. Economic and Development Problems in South Africa and AfricaHealth in Africa

  12. Translating expenditure into outcomes (2) Maternal mortality vs. total per capita healthcare expenditure, 161 countries - WHO, 2010 (maternal mortality) & 2011 (healthcare expenditure)

  13. Links in the chain in translating expenditure into outcomes in developing countries (2) Filmer, Hammer & Pritchett, 2000 Incentives Expenditure Outcomes Choices • Composition of expenditure, e.g. primary vs. secondary vs. tertiary care, HIV vs. TB, HIV vs. malaria, preventative vs. curative care • Output of the public sector: efficiency in translating inputs into outputs • Net impact of public sector supply on overall consumption: do people use more of the service simply because government is spending more? e.g. crowding-out of private services • Health production function: the impact of health inputs is mitigated by biological and medical facts, i.e. the effectiveness/appropriateness of certain treatments

  14. Nico to teach the second half of the course

  15. What do I expect from you?? • To think!!!! • To learn!

  16. Instructional method? • Lectures • Readings • Podcasts (interviews and videos) • Class discussion (!)

  17. Fastest growing cities (Total growth, 2010-15, %) • Yamoussoukro, Cote d’Ivoire 43.8 • Ouagadougou, Burkina Faso 38.5 • Lilongwe, Malawi 28.9 • Blantyre, Malawi 28.8 • Abuja, Nigeria 28.4 • Huambo, Angola 26.1 • Luanda, Angola 26.0 Lowest GDP per head ($, 2008) • Burundi 140 • Congo-Kinshasa 180 • Liberia 220 • Guinea-Bisau 270 • Malawi 290 • Somalia 300 • Zimbabwe310 • Ethiopia 320 • Eritrea 340 • Sierra Leone 350 Trivia • Longest river? • Biggest desert? • Top 8 countries most economically dependent on agriculture (all African) • Least literate, most AIDS deaths

  18. Questions ???

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