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on Africa |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Ojong, Nathanael |
| Abstract: | Tracking the progress of countries in inclusive green growth (IGG) is crucial for shaping effective sustainable development policies. However, comprehensive IGG data is often inaccessible. Accordingly, rigorous empirical contributions in this direction in the context of Africa remain sparse. To address this, we computed IGG scores for 22 African countries from 2000-2020. Our data reveal that only nine of these countries are achieving green and inclusive growth. This dataset equips researchers and institutions to assess IGG progress and identify pathways that African governments can leverage to promote sustainable development. |
| Keywords: | Africa, Inclusive green growth, IGG, Sustainable Development |
| JEL: | O55 Q01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:298863&r= |
| By: | Otaviano Canuto; Sabrine Emran; Badr Mandri |
| Abstract: | Africa has a wealth of natural resources, including minerals, agriculture, and energy commodities, which provides an opportunity for the financialization of these commodities on the continent, a concept that has gained global attention and sparked debate on the potential benefits and drawbacks. Although the financialization of commodities has been studied in various contexts, including in African countries, challenges such as liquidity constraints and market readiness have emerged as critical impediments to its widespread adoption. This paper examines the existing literature to clarify the positive and negative aspects of commodity financialization, drawing on global examples and specific cases within Africa. By examining best practices and lessons learned, this paper offers guidance on how African countries can navigate the complexities of preparing for and embracing commodity financialization in order to unlock its potential benefits while mitigating the associated risks. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaper:pp-08-24&r= |
| By: | Nkechi S. Owoo (University of Ghana; World Bank Development Economics Research Group; Center for Global Development) |
| Abstract: | The research paper adopts a mixed methods approach to understanding climate shock and consequences in the Ghanaian context. The nationally representative Ghana Living Standards Household Survey (GLSS) is merged with district-level geocoded information on climate events to quantitatively explore associations between climate shocks and farm inputs demand. Results show commercial purchases of inputs as a potential coping strategy among agricultural households. The remainder of the paper uses qualitative methods to better understand other adaptation strategies. Interviews with women shine more light on their housework adjustments and implications for leisure. Adaptation is, however, not a universal response to climate change and disaster events. Despite observed mental health associations, the paper highlights the role of religion in passive dispositions when it is believed that disaster events are divine and do not merit an adaptation response. The study improves understanding of individuals’ adaptation, and non-adaptation, responses to climate shocks in Ghana. |
| Keywords: | climate change fatalism, farm input demand, gender roles, mental health, mixed methods, Ghana |
| JEL: | Q12 Q54 I15 J16 |
| Date: | 2024–04–15 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:wpaper:692&r= |
| By: | Lidiema, Caspah |
| Abstract: | The aim of this study was to examine the effectiveness of monetary and fiscal policies with a view to establishing the existence of fiscal dominance in Kenya. The study employed monthly data for the period Jan 2010 - Dec 2022. Using Structural Vector Autoregressive (SVAR) Model, the study captured price dynamics through the three channels of foreign exchange, inflation and lending rates. All data was obtained from the Central Bank of Kenya online repositories. The empirical assessment of this paper leads to three broad insightful conclusions. First, from policy front, monetary policy is not fully effective in controlling and stabilizing prices especially inflation; two, expansionary fiscal policy is not only inflationary but leads to higher interests' rates as well and three: there exists traces of fiscal dominance even though it does not appear to very high form of fiscal dominance (which this study calls the slow intrusion of fiscal policy into the monetary policy space). The study therefore concludes that while fiscal dominance may not be very pronounced, there is need to review the interplay between monetary and fiscal policies to fully gain from the interdependence of the two policies by stabilizing prices and enhancing growth as expected and avoid macro-economic instability that comes with fiscal dominance. The paper recommends reducing government borrowing especially domestic borrowing, cutting unnecessary spending, directing spending towards development projects like infrastructure or social-economic projects and sectors that support or influence growth; establish the necessity of currency pegging to avoid unpleasant multiplier effect of fiscal dominance, review the emergence and effects of dollarization in Kenya and lastly review of fiscal policy and establish if there is a need for a Fiscal Policy Committee (FPC). |
| Keywords: | Monetary Policy, Fiscal Policy, Fiscal dominance, inflation, interest rates, interest rates, dollarization, SVAR |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kbawps:297992&r= |
| By: | Verpoorten, Marijke; Stoop, Nik |
| Abstract: | Can job creation help decrease violence in conflict-affected regions? We study this question in the Democratic Republic of Congo, where the construction of three hydropower stations in North-Kivu generated nearly 60, 000 one-month labor contracts for residents of the hosting chiefdoms. To quantify the impact on violence, we analyze close to 9, 000 conflict events from 2009 to 2022 across 21 chiefdoms in North-Kivu, comparing trends and patterns of violence between ‘treated’ and ‘comparison’ chiefdoms. Our findings indicate that the labor-intensive construction program significantly reduced violence, with effects lasting up to 18 months after program end. We observe a 93% decline in the number of monthly conflict events in chiefdoms where the program was implemented. The reduction in violence was most pronounced in chiefdoms with the highest per capita wage injection. In the most remote, rebel-controlled chiefdom, the reduction in violence against civilians was preceded by a temporary surge in battles between the military and armed groups, likely representing the 'clear' phase of the 'clear, hold, build' counterinsurgency strategy. |
| Keywords: | DR Congo, violence, job creation |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iob:apbrfs:2024003&r= |
| By: | Maru, Lucy; Makambi, Steve Anyona |
| Abstract: | One of the most important steps towards a greener economy is assessing the path through which climate risks are internalized in to bank portfolios. Aligned with literature on market risks and credit risks emanating from climate risk exposure, this paper sought to assess the feedback effect between banking sector performance and climate risk and identify the transmission pathway of climate risk to banking sector performance. The paper employed conditional process analysis. Using meteorological data, data on weather disasters, bank level data and interest rate between 2011- 2022, the study found that: - i) there exists a relationship between climate risk and bank performance to the extent that changes in interest rate spread are mediated by climate disasters having been moderated by temperature variation. ii) increase in non-performing loans leads to decrease in interest rate spread. Therefore, this paper persuades policy makers to adjust risks to include climate related risks and develop risk models that capture climate related risks in risk pricing. Additionally, the paper recommends that the regulator may develop an adaptable reporting framework to transition bank portfolios to a green and financially sustainable path. |
| Keywords: | Climate risk, Interest rate spread, non-performing loans, Carbon transition |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kbawps:297994&r= |