Tyler Cowen on Africa

Tyler Cowen on Africa:

My long-term prediction is that Africa will stay quite poor. Rich countries should offer Africa complete free trade, but the benefits of this move are overrated. Low productivity, and transport costs and corruption within Africa remain the central problems, not foreign tariffs.

Libertarians are too quick to say that foreign aid is counterproductive. Most African governments would be corrupt anyway, and there is usually some positive trickle-down from the aid. The wastage is massive, and I can understand the desire to stop sending government-to-government aid, but there is a real moral dilemma.

I also think most of Africa is in a Malthusian trap. That is perhaps the better critique of aid, but alas also of trade as well. But even within this trap, wealthy foreigners can help make the transition from one steady state to another less painful. And the trap need not hold in every local corridor. Plus we are offering a lottery ticket (with what p?) ouft of the trap. Malthus doesn't mean we should turn our backs on suffering.

Africa is a much bigger moral dilemma than most people are willing to admit. And that moral dilemma appeared pretty big in the first place.

Follow the link for more.

I hate being pessimistic, but I agree that I don't see Africa not being poor anytime in the near future. That doesn't mean things can't be improved on the margin, but the issues there seem so overwhelming at times. Corruption, disease, lack of infrastructure, poor institutions, and conflict plague the continent. I don't think there are any qucik fixes to get them out of poverty. I am undecided if I think most aid makes things better or worse.

Cowen also links to this post about Bono and Africa:

Advertising Age calculates that around $100 million has been spent blanketing billboards and magazines with images of Bono and other "celebrities", while the total sum raised for Africa is $18 million.

Just to be clear... Total spent on making Bono more famous = $100 million.

Total spent on drugs for Africans = $18 million.