Ep. 48: Reframing development in Africa

The past weighs on every country, and nowhere is that more true than in Africa. The continent's legacy of slavery, colonialism, and division has stood in the way of Africa's struggle for stability and economic progress. But in a paper in the Journal of Economic Perspectives, authors Nathan Canen and Leonard Wantchekon argue that economists must primarily consider the impact of modern-day policy choices to fully understand long-term growth in Africa. They say that political distortions—situations where special interest groups are able to direct economic development toward their own ends rather than toward improving general welfare—play an underappreciated role in Africa's development. Approaching the continent's economic growth through that lens may lead to more insights about how to create institutions that give average citizens a leg up on special interest groups. Canen and Wantchekon recently spoke with Tyler Smith about how state capture is holding back economic progress in Africa and what to do about it.