Sunday, July 17, 2011

updates and reading!

More on Nairobi trip soon, but first two updates:

1. I was misinformed about world's poorest countries. Note to self: check references (oops). Apparently, by GDP, Tanzania is 24 or 25th poorest and Kenya is ranked 30th. How then is the disparity between each, particularly in each comparing the countries' most prominent cities? Interestingly however, in the UN's list of 50 least developed countries, Tanzania is named, but Kenya is not. It leads me to believe that the gap between the rich and the poor is much bigger here in Kenya, which would make sense and is in line with what some of my driver-informants told me. Another factor is that the population in Tanzania exceeds the population in Kenya, so while the total country GDP may not be significantly different (in 2010, the IMF lists Kenya's total GDP in PPP international dollars at about $66B, Tanzania at $58.4B (apparently US$ equivalent is something like $23B); World Bank has slightly different but correlated numbers--btw, these are nowhere near the poorest countries in terms of total GDP), there is somewhat increased difference in per capita income (population is Tanzania is 44 million with the vast majority rural; population in Kenya is just shy of 40 million with 8 million in Nairobi alone).

In some very very quick internet research, it seems that things are looking up for Tanzania, however: they received the biggest Millennium Challenge Grant and also weathered the economic meltdown better than Kenya. From 2000-08, they achieved 7% GDP growth (wow!!) and a very respectable 6% in 2009, compared to Kenya 1.5%, not even keeping up with inflation. Tanzania has recently had bank reforms and other sorts of policies to incentivize investment so let's see what happens in that decade or two!

2. Speaking of interesting models, please please please read this article from yesterday's NY Times. It's fascinating--a new model of poverty support based on creating a framework and system for success and achievement rather than focus on need, led by the organization Family Independence Initiative (FII) which was by a young entrepreneur who saw things differently.

3. Finally, I'm making a list of books I should read about development and that are relevant to this project, just for my own knowledge. Suggestions are very welcome. So far the list includes: Poor Economics, Abhijit V. Banerjee and Esther Duflo (MIT's Poverty Action Lab--if you don't know about this find and read a fascinating New Yorker article about Duflo and her work); The End of Poverty, Jeffrey Sachs; The Innovator's Prescription, Clay Christiansen (really health care in developed world but maybe some interesting parallels). I'm sure there are some Africa-specific books I must read as well. Anyone have any ideas?(Oooh even looking those up on Amazon gave lots of ideas! The Bottom Billion, Paul Collier; Dear Aid: Why Aid is Not Working, Dambiso Moyo; various by Amartya Sen; which reminds me, someone just recommended Cornel West's recent memoir Brother West: Loving and Living Out Loud--any thoughts?)

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