Mistakes Behavioral Economists Make

While behavioral economics continues to open old questions in development to new scrutiny, I am still having a lot of problems with the very unreflexive approach BE takes toward its own work (see earlier takes on this here and here).  Take, for example, Esther Duflo’s recent lectures discussing mistakes the poor make.  To discuss the mistakes the poor make, we must first understand what the goals of the poor are.  However, I simply don’t see the behavioral economists doing this.  There is still a lurking, underlying presumption that in making livelihoods decisions people are trying to maximize income and or the material quality of their lives.  This, however, is fundamentally incorrect.  In Delivering Development and a number of related publications (for example, herehere, and here) I have laid out how, in the context of livelihoods, material considerations are always bound up in social considerations.  If you only evaluate these actions as aimed at material goals, you’ve only got a part of the picture – and not the most important part, in most cases.  Instead, what you are left with are a bunch of decisions and outcomes that appear illogical, that can be cast as mistakes.  Only most of the time, they are not mistakes – they are conscious choices.

Let me offer an example from Delivering Development and some of my other work – the constraint of women’s farming by their husbands.  I have really compelling qualitative evidence from two villages in Ghana’s Central Region that demonstrates that men are constraining their wives’ farm production to the detriment of the overall household income.  The chart below shows a plot of the size of a given farm versus its market orientation for the households operating under what I call a “diversified” strategy – where the husband farms for market sale, and the wife for subsistence (a pretty common model in sub-Saharan Africa).  As you move up the Y axis, the farm gets more oriented toward market sale (1 on that scale is “eat everything”, 3 is sell and eat equally, and 5 is sell everything).  Unsurprisingly, since men’s role requires them to produce for market, the size of their farm has little impact on their orientation.  But look at the women’s farms – just a tenth of a hectare produces a marked shift in orientation from subsistence to market production…because women own that surplus beyond subsistence, and sell it.  They take the proceeds of these sales, buy small goods, and engage in petty trading, eventually multiplying that small surplus into significant gains in income, nearly equaling their husbands.  What is not to like?

Well, from the perspective of those in these villages, here is something: among the Akan, being a “good man” means being in control of the household and out-earning your wife.  If you don’t, your fitness as a man gets called into question, which can cost you access to land.  For wives, this is bad because they get their land through their husbands.  So as a result, being in a household where the woman out-earns her husband is not a viable livelihoods outcome (as far as members of these households are concerned).  Even if a man wanted to let his wife earn more money, he would do so at peril of his access to land. So he is not going to do that.  What he is going to do is shrink his wife’s farm the next season to ensure she does not out-earn him (and I have three years of data where this is exactly what happens to wives who earn too much).  There is a “mistake” here – some of these men underestimated their wives’ production, which is pretty easy to do under rain-fed agriculture in a changing climate.  That they are this accurate with regard to land allocation is rather remarkable, really.  But the decision to constrain women’s production is not a mistake, per se: it is a choice.

We can agree or disagree with the premises of these choices, and their outcomes, but labeling them as mistakes creates a false sense of simplicity in addressing problematic outcomes – because people only require “correction” to get to the outcomes we all want and need.  This, in turn, rests on/reproduces a sense of superiority on the part of the researcher – because s/he knows what is best (see a previous post on this point here).  That attitude, applied to the case above, would not result in a productive project design aimed at addressing income or other challenges in these villages.

Yes, people do things against material interest…but there is always a logic behind a decision, and that logic is often deeply entrenched.  We would be better off talking about decisions poor people make (for better or worse), and dedicating our time to understanding why they make these decisions before we start deciding who is mistaken, and what to do about it.

I’ve just burned 15,000 words in Third World Quarterly laying out my argument for how to think about livelihoods as more than material outcomes – and how to make that vision implementable, at least via fieldwork that runs in length from days to months.  I am happy to send a copy of the preprint to anyone who is interested –and I will post a version to my website shortly.

Fiscal cliff or Food cliff – how the farm bill threatens food aid

While all the current screaming in Washington is about the fiscal cliff, an aspect of USAID’s aid efforts has already slipped off its own precipice, and is hanging by the roots of a dried-out shrub.  The farm bill is stalled – some analysts don’t expect any movement until April 2013.  Given all of the fiscal challenges the country faces, this might sound reasonable – but within the aid and development world, the deferral of the farm bill is setting up a trainwreck.  The Office of Food for Peace’s (FFP) Title II programs are authorized by the farm bill.  In the absence of a new bill, a number of FFP’s authorities expired at the end of the fiscal year (September 30th).  The rest of Title II’s new awards, which are authorized by the farm bill, will expire at the end of the calendar year.

What is Title II?  According to the Foreign Agricultural Service of the USDA:

Title II provides for the donation of U.S. agricultural commodities by the U.S. government to meet humanitarian food needs in foreign countries. Commodities may be provided to meet emergency needs under government-to-government agreements, through public and private agencies, including intergovernmental organizations such as the World Food Program, and other multilateral organizations. Non-emergency assistance may be provided through private voluntary organizations, cooperatives, and intergovernmental organizations. Commodities requested may be furnished from the Commodity Credit Corporation’s (CCC’s) inventory acquired under price support programs or purchased from private stocks. The CCC also finances the costs of ocean transportation to ports of entry, or to points of entry other than ports in the case of landlocked countries, or when the use of a point of entry other than port would result in substantial savings in costs or time. The CCC may also pay transportation costs from designated ports of entry or points of entry abroad to storage and distribution sites, and associated storage and distribution costs for commodities, including pre-positioned commodities, made available to meet urgent or extraordinary relief requirements.

Who cares?  Title II funds authorize a huge chunk of the FFP program each year.  There are some limited community development funds, and similarly limited emergency food security funds.  In fiscal year 2009, this was a $2.6 billion program.  Billion, with a B.  For FY 2012, the appropriated amount was $1.466 billion, down significantly but still a huge share of the global food aid budget.  Note that this is the aid that the United States moves through various NGOs and intergovernmental organizations like WFP, so if Title II grinds to a halt, these organizations and their work will be severely compromised.

We might get away with this without a total disaster.  For example, FEWS-NET shows a lot of stress in the horn of Africa right now, but projects improving situations over the next few months.  But if Title II grinds to a halt, and any major food crisis hits (which could include food price spikes), FFP will little capacity to do anything about it.

Congress cannot agree on much these days, but I suspect there are few in that august body that think it is OK to leave the world’s poorest and most vulnerable to their fates because they can’t get their legislative act together.  Let’s hope they figure this out.  Soon.

My effort to get an economist to understand geography…

Update: 11/22: So, after seeing Tom Murphy’s Storify of the twitter exchange, it is now clear that Sachs was on fire – the man was engaged in several conversations at once along the lines below…and he seems to have been responding to all of them pretty coherently, and in real time. I admit to being impressed (No, seriously, click on the Storify link there and just scroll. It is boggling). So recognize that what you see below is what I saw in my feed (his other conversations were with people I don’t follow, so I didn’t realize they were ongoing). Still, glad to get geography’s foot back in the door…

So, quite by surprise, I found myself on the end of an extended twitter exchange with Jeff Sachs.  I’ve hassled him via twitter before, and never had a response. So, I was a bit taken aback to see my feed light up about 30 seconds after I tweeted with @JeffDSachs at the front end! To give Sachs credit, he stayed quite engaged and did seem to be taking on some of my points. Granted, 140 characters is hardly enough to really convey the issues at hand, but I did the best I could to represent contemporary human geography. Y’all be the judge – this is the feed, slightly rejiggered to clarify that at times Sachs and I were crossing each other’s messages – he was clearly responding to a previous message sometimes when he tweeted back after one of my tweets. Also, Samuel Danthine was also on the conversation, and I kept him in the timeline as it seems he and I were coming from the same place:

Data Wins! Is The End of Poverty Traps the End of the White Man’s Burden?

I’ve long hated the term “poverty traps,” development shorthand for conditions in which poverty becomes self-reinforcing and therefore inescapable without some sort of external intervention.  They made no analytic sense (nobody ever defined poverty clearly across this literature, for example), and generally the idea of the poverty trap was hitched to a revival of “big push” development efforts that had failed in the 1950s and 1960s.  Further, it was always clear to me that the very idea of a poverty trap cast those living in difficult circumstances as helpless without the intervention of benevolent outsiders.  This did not align at all with my experiences on the ground in rural sub-Saharan Africa.

This is not to suggest that there is no such thing as structural inequality in the world – the running head start enjoyed by the Global North in terms of economic development has created significant barriers to the economic development of those residing in the Global South.  These barriers, perhaps most critically the absurd and damaging regime of subsidies that massively distorts global agricultural markets, must be addressed, and soon.  Such barriers generally result in perverse outcomes that impact even those in the Global North (anyone who thinks the American food system makes any sense at all really needs to read more.  Start with Fast Food Nation, move to The Omnivore’s Dilemma, and work out from there. And don’t get me going on the potential climate impacts of structural inequality).

But this enduring focus on structural problems in the global economy has had the effect of reducing those in the Global South to a bunch of helpless children in need of salvation by the best and most noble of those in the Global North, who were to bring justice, opportunity, and a better future to all.  If this isn’t the 21st Century version of the White Man’s Burden, then I don’t know what is.  Bill Easterly makes a very similar point very eloquently, and at much greater length, here.

I am a social scientist*, and I believe that the weight of evidence eventually wins arguments.  And today it occurred to me that in this case, this long line of arguing that those who insisted on talking about poverty traps were a) generally misrepresenting the world and b) inappropriately infantilizing those living in the Global South now has that weight of evidence behind it.  Andy Sumner’s work on the New Bottom Billion basically blows up the idea of the poverty trap – he demonstrates that since the 1990s, a lot of people that were thought to be living in poverty traps have improved their incomes such that many have moved out of poverty (at least if one defines poverty on the basis of income).  People who were thought to be trapped by structural inequality have been defying expectations and improving their circumstances without clear correlations to aid or development efforts, let alone the “big push” arguments of Sachs and others.  In short, it looks like we don’t really understand what people are doing at the margins of the Global South, and that the global poor are a lot more capable than development seems to think.  Poor people attached to the anchor of structural inequality are dragging it to improved incomes and well-being in thousands of small, innovative ways that are adding up to a massive aggregate change in the geography and structure of global poverty.

In short, the Global South never needed the most enlightened of the Global North to clear the path and push them up the ladder of development (if you want to get all Rostow about it).  Instead, what is clearly needed is a new, substantial effort to better understand what is happening out on Globalization’s Shoreline, and to work with the global poor to examine these efforts, identify innovative, locally-appropriate, and locally-owned means of transforming their quality of life, and find means of bringing those ideas to (appropriate) scale.  Anything else is just hubris at best, and subtle class/race bigotry at worst.

The data is speaking. Anyone ready to listen?

No timebomb here, y’all

The Guardian recently ran a piece titled “Food scarcity: the timebomb setting nation against nation.” It was retweeted a lot across my social network, enough that I feel the need to respond to it.  So, here it goes.  The article is yet another example of the remarkably durable narrative of production crisis that dominates discussions of food security today.  The article operates from the assumption that we are running out of food, and then selectively interprets quotes from Lester Brown and Oxfam to support this attention-grabbing story.   The problem here is that Brown/Oxfam make much more nuanced claims than suggested by the headline, which perpetuates the neo-Malthusian agenda of scarcity that dominates modern food security.  In short, I find the very title and tone of the article to be terribly irresponsible – in attempting to bring attention to the very serious issue of global hunger, this article sets back intelligent conversation about the causes of the problem, and therefore its solutions.

It takes little but careful reading to see that the Guardian piece doesn’t actually have the evidence to say that food scarcity is a geopolitical timebomb.  Brown never says we have an absolute scarcity of food in the world, just increased levels of pressure on the food system.  The issue of increased pressure is not, as the article suggests, about production, per se: it is about a complex global political economy that intersects in complicated ways with the remnants of colonialism, failed development, and environmental change in particular ways in specific places.  Sure, US grain production is down 15%…but that isn’t a big deal against the GLOBAL 40% rate of waste in the food system.  We can cover the current US shortfall (indeed, more or less any conceivable global shortfall) with ease just by cleaning up some low-hanging fruit in the global supply chain, such as improving the transportation networks from farm to market in the Global South.

The only actual argument for scarcity in the article is buried down the page, in Evan Fraser’s claim:

“For six of the last 11 years the world has consumed more food than it has grown. We do not have any buffer and are running down reserves. Our stocks are very low and if we have a dry winter and a poor rice harvest we could see a major food crisis across the board.”

It seems to me that Fraser is misreading his evidence. It is possible that the world has consumed more food than has been available on agricultural markets…but this is NOT THE SAME THING as the amount of food grown.  In each of the last 11 years, humanity grew much more food than it consumed. It’s just that each year we then wasted about 40% of that production as it either rotted on the way to market (a common problem in the Global South) or we threw it away uneaten (a problem in the wealthy countries).

So if there is no global food production crisis, why are we seeing land grabbing that will set “nation against nation”?  After all, if there is plenty of agricultural production globally, land-grabbing for food supplies is nonsensical behavior. Prices are where they are because the global food system has significant problems that could be addressed relatively easily and at relatively low cost (when compared to the challenge of completely reengineering an agricultural ecosystem). Anyone analyzing things in a serious way should see this, and recognize that food prices are a bubble that could be popped by a serious infrastructural development push.  And, as it happens, they have.  If you read the article carefully, you realize that there is no evidence in this article that land grabs are for food as much as they are for biofuels. Oxfam’s report is more to the point – the planting of biofuels has to be taken seriously, as that does take arable land out of local production, which can stress local food systems.  But if anyone thought there was a serious global food shortage, they would not buy arable land for biofuels – they would buy it for food itself, as after a certain point food prices become inelastic. The very fact the land grabs are heavily for biofuels tells us all we need to know about the idea of a global food shortage.

Rising food prices in today’s world just signal a stress point on today’s (astonishingly inefficient) food system. Leveraged correctly, these pressures could bring about dramatic changes in global food markets, as saving even half of the food that rots on the way to market in the Global South would more than offset all but the most extreme local food deficits.  This is an opportunity to make changes in the food system that are immediate and relatively cost-efficient.  For all of the noble intents here, ginning up cries of false scarcity in the name of focusing attention on global hunger drags the policy conversation away from real, achievable solutions.

Why academic and implementation debates diverge in development

I just witnessed a fascinating twitter exchange that beautifully summarizes the divide I am trying to bridge in my work and career.  Ricardo Fuentes-Nieva, the head of research at Oxfam GB, after seeing a post on GDP tweeted by Tim Harford (note: not written by Harford), tweeted the following:

To which Harford tweeted back:

This odd standoff between two intelligent, interesting thinkers is easily explained.  Bluntly, Harford’s point is academic, and from that perspective mostly true.  Contemporary academic thinking on development has more or less moved beyond this question.  However, to say that it “never has been” an important question ignores the history of development, where there is little question that in the 50s and 60s there was significant conflation of GDP and well-being.

But at the same time, Harford’s response is deeply naive, at least in the context of development policy and implementation.  The academic literature has little to do with the policy and practice of development (sadly).  After two years working for a donor, I can assure Tim and anyone else reading this that Ricardo’s point remains deeply relevant. There are plenty of people who are implicitly or explicitly basing policy decisions and program designs on precisely the assumption that GDP growth improves well-being. To dismiss this point is to miss the entire point of why we spend our time thinking about these issues – we can have all the arguments we want amongst ourselves, and turn up our noses at arguments that are clearly passé in our world…but if we ignore the reality of these arguments in the policy and practice world, our thinking and arguing will be of little consequence.

I suppose it is worth noting, in full disclosure, that I found the post Harford tweeted to be a remarkably facile justification for continuing to focus on GDP growth. But it is Saturday morning, and I would rather play with my kids than beat that horse…

GMOs, crisis narratives, and the precautionary principle

Friend/colleague/journalist Keith Kloor has a very interesting piece about the problematic character of some research that recently purported to cast doubt on the health safety of GMOs.  The piece is an excellent effort to push back against crap science and crap evidence in the GMO debate, and stands as an interesting example of a general need to critically evaluate “scientific” claims about any number of issues from the harmful character of vaccines to those would deny anthropogenic climate change.  However, the piece, in making a strenuous argument for evidence, overreaches in its conclusions and too-quickly dismisses the ecological issues associated with GMOs – exactly the opposite outcome Keith was seeking.

In general, I agree with Keith that the screaming about the health impacts of GMOs has greatly outstripped the evidence, but I take issue with the idea that GMOs have been largely proven safe all around.  There remain significant questions about ecological impacts that have not attracted a solid scientific consensus (i.e the impact/cost/tradeoffs of gene flow between GMOs and the surrounding ecology, pest resistance, etc. –.  The evidence base in this area is pretty small, and ecological systems are very diverse and complex, so the levels of uncertainty here are fairly epic (Pamela Ronald, whose article Keith references approvingly, even notes that the ecological impacts of GMOs are still an open issue).  Honestly, Keith is too dismissive of this challenge:

Some of these folks are worried about new genes being introduced into plant and animal species. But humans have been selectively breeding plants and animals pretty much since we moved out of caves, manipulating their genes all the while. The process was just slower before biotechnology came along.

Modern genetic engineering does not have all that much to do with selective breeding.  We are doing things in GMOs that could not occur in nature, which is rather different then applying what amounts to a modified evolutionary force (human selection of seeds to plant the next season or animals to breed) in the selection of traits within certain crops.

Another big concern that has been widely reported is the “rapid growth of tenacious super weeds” that now defy Monsanto’s trademark Roundup herbicide. That has led farmers to spray their fields with an increasing amount of the chemical weed-killer. Additionally, some research suggests that other pests are evolving a resistance to GMO crops. But these problems are not unique to genetic engineering. The history of agriculture is one of a never-ending battle between humans and pests.

Again, this is a bit off to one side.  Yes, agriculture has always been about the radical simplification and management of ecosystems in a complex world, and therefore is indeed an endless battle for control between farmer and surrounding ecology.  What this elides, though, is the fact that some of these GMOs have made things harder for us in the long run.  It is hard to sell this as a good, or even neutral, outcome.

I raise this issue because of its implications for conversations about food security. People (some, but not all) working in food security tend to be a bit dismissive of the ecological concerns surrounding GMOs, loosely equating them with the human consumption concerns that have largely been disproven at this point.  The response to insistent questioning about ecological impacts is the argument that, on balance, GMOs have done more good than harm and/or that GMOs are necessary for global food security going forward.  The “more harm than good” argument seems to me based on evidence that is hardly complete, and often references a glowing, startlingly unproblematic vision of the Green Revolution.  The “we need GMOs” is a crisis narrative of food production that drives current and future claims about their value.  At the moment, much of the food security world is arguing that there is a dire food production crisis either coming or just arrived (embodied in the 2008 and 2011 food price spikes), and therefore we cannot wait for the burden of proof surrounding any issue associated with GMOs – we must act now!  This crisis narrative effectively reduces anyone who raises objections to an all-out push for more production to some sort of monster who would rather let innocents starve than engage with the messiness of the real world. Basically, precaution is conflated with timidity, making those who show concern over the ecological impacts of GMOs into the food security equivalents of Neville Chamberlain.

This would perhaps be true…if, in fact there were a global production crisis and we needed GMOs to feed everyone. This is a much harder thing to sell, however, when one realizes that the world produces roughly twice as much food as needed to feed everyone adequately each year.  There isn’t a global production crisis (though there are local production crises that arise from complex causes and need to be addressed in locally-specific ways). I’ve said it before, and I will say it again: globally, there is plenty of food. Now, and likely for quite some time. Period.

In the twitter conversations that emerged around Keith’s article, Robert Wilson, a mathematical ecologist, argued for “an adjusted precautionary principle where we consider the risks of inaction, as well as action.”  This strikes me as both reasonable and necessary when discussing food security policy and programs these days.  If we did this, though, I think we would find that the risks of inaction are, in fact, substantially smaller than the risks of action – this is not to say there are necessarily huge risks to action, just that when you are producing twice the calories needed already, the risk from doing nothing is, at least in the short term, pretty small.  There is time to test more crops, more widely, under more conditions, before we arrive at any production crunch.  There is no need to rush.

In short, we need to be sure that our efforts to push back against crap science (which is really what Keith was doing in his article) don’t overreach and inadvertently empower narratives and arguments that are not supported by the evidence – exactly the opposite outcome Keith sought.

GDP versus State Accessible Product (SAP)?

As I mentioned a few posts ago, I am working through James Scott’s The Art of Not Being Governed (my endorsement is in the linked post).  In the course of my reading, I have been thinking about what Scott calls the State Accessible Product, which he sets in contrast to the Gross Domestic Product.  To Scott’s thinking, the states/kingdoms he is discussing in Southeast Asia were motivated not to maximize the value of all goods and services in their realms, as such maximization might include the production of goods that could not be transported/taxed/otherwise used to enrich the state.  Instead, it was in the state’s interest to maximize the production of things it could see, count and move – in other words, to push the growth of a State Accessible Product.  Two things resonate for me about this idea:

1) It scales. Just as states pushed for the production of SAP, so too the households I I discuss in Delivering Developmenttend to divide up livelihoods roles and activities in a manner that maximizes not individual well-being, but activities that only make sense when bundled with the activities of other members of the household – a sort of Household Accessible Product.  In an uncertain economy and environment, it makes no sense to focus one’s entire agricultural production on market sale, or to focus entirely on subsistence reproduction of the household.  Yet this is just what we see men (playing the former role) and women (playing the latter) doing in some of the households I examined in Ghana.  They do this for a lot of complex reasons, but certainly there is something to the idea that these roles force the members of the household into the production of a HAP that certainly does not maximize all possible production and income, but does a lot to reproduce social roles and social stability.

2) It explains why my argument that a lot of farmers on globalization’s shoreline strategically deglobalize was both surprising and, at least to some people, threatening: the opting in and out of global markets is exactly the sort of thing states fear, as it means that the production of these farmers goes in and out of legibility from year to year – making it hard to extract value from that production. In short, there is a GDP that is not coterminus with an SAP along most of globalization’s shoreline – and that non SAP production is critical to the well-being of those engaged in those activities.

It strikes me that a key question here is whether or not our focus on governance in development has led us to inadvertently emphasize activities, projects and programs that render greater and greater percentages of GDP as SAP – certainly, without access to the financial resources produced by the control of a SAP, states are in a weak position.  But if many of the activities that actually keep people alive on a day-to-day basis are non-SAP activities, what are we to do?  Are we to wipe out/make legible these activities so the state can profit from them?  If we do, are we going to enhance the vulnerability of the populations whose livelihoods we alter?  Is the enhancement of vulnerability an appropriate trade-off for the creation of a state-legible economy?  Can addressing vulnerability and building a strong state be made to rhyme at all?

It’s Easy To [Tell People How To] Govern

In my previous post, I objected to the way in which Tyler Cowen’s recent NYT blog post pushed the dominant “crisis of production” narrative in discussions of food security.  In my opinion, the recurrence of this problematic claim in various popular outlets has a lot to do with people’s relatively surficial understanding of food security and the causes of hunger in the Global South.  For some reason, development seems to lend itself to dilettantism…at least in part, I suspect, because people assume that the global poor are so bad off that any new ideas would be an improvement on what is there.  Of course, there is also the subtle, durable assumption that poor people (especially of darker skin tones) somehow (re)produce their problems because they don’t think rationally/clearly/etc*.  Such arguments fall apart when they are tested with actual evidence, but most op-eds and policies have nothing to do with evidence…

This problem extends beyond how we talk about the poor themselves to how we think about the governments under which they live.  While governance (not the same as government, folks – please try to remember this) is really important to development outcomes, it is not everything…and government (as in the formal rules and structures of governance in a particular place) can be even less important, as many of the global poor live beyond the reach of the state.  So blaming the state and its policies for hunger can be a pretty tricky proposition. When Cowen, in an offhand way, wades into the role of the Malawian government as an illustration of how his presumed production shortfalls are exacerbated by problematic government policies, his lack of understanding of the African context becomes clear:

many African nations have unhelpful policies toward agriculture. Malawi, for instance, subjects corn to periodic export and import restrictions as well as to price controls, all of which thwart development of a well-functioning market. When market speculators save corn in anticipation of greater scarcity, they may be punished by law. These restrictions of market incentives exacerbate the basic supply problems.

First, Cowen cherry-picks Malawian government actions to make this point.  While price controls and import/export restrictions have been used, there is another side to Malawian intervention in the markets: the subsidization of inputs to boost overall farm productivity.  As a result, he ignores the near-perfect correlation between the years when the government intervenes in input markets – effectively, when the Malawian government subsidizes fertilizers – and the years when Malawi is a net food exporter to the extent that it can pay for the entire subsidy several times over (this correlation has proven very durable and very vexatious to some of the more theologically-inclined free marketeers out there).  In the case of Malawi, some market intervention, however distortionary, actually does work to ensure adequate food production within the country each year. Which gets to a much larger point: the Malawian government is doing this not out of ignorance or irrationality, but because it is being responsive to citizens whose short term needs are so dire that to take a long-term only view would result in mass morbidity, if not mortality, in the short run.

For example, in a priori assuming that Malawi’s decision to punish market speculators when they “save corn in anticipation of greater scarcity” (one person’s “saving” is another’s “hoarding”), Cowen fails to parse between the needs of an efficient market (a means of transmitting future price situations into current pricing decisions) with human needs (a means of obtaining adequate food such that members of the household do not die) – in most places I work, there is a large disjoint between the two.  It is this disjoint that the government of Malawi, and indeed many governments around the world must negotiate.  It is this disjoint, and its attendant reality, that is Cowen’s second major problem, as he doesn’t really understand it.  This reality has two parts:

1) Yes, in the long run markets can transmit information about pricing and preferences that can lead to more productive and useful decisions, but in contexts where people are living on a dollar a day, their margins for error are small and their ability to wait for markets to work things out is limited.

2) There is a presumption that the anticipatory price signal will result in actions to address the problem before the shortage actually hits.  However, the causes of shortage generally extend well beyond the management capacity of any single state.  In short, transmitting shortage signals into the present only serves to prolong the challenges that the Malawian poor are going to face, without producing any effective policy or market response because there is no government capacity to respond.  In short, why transmit the emergency into the present when you are going to need help to address it now or in the future?  This is why many African states punish hoarding…though they could be looked upon as comprising a de facto futures market, hoarders transmit not just information, but shortage into the market and onto very vulnerable populations earlier than would otherwise be the case, undermining safety and security sooner and to no good end.  Given the option of an efficient market populated by a lot of dead people and an inefficient, or even broken market populated by live people, most African states are going with the latter.  Until someone sorts out how to set up functioning markets near-instantly, builds enough financial resilience into African livelihoods to weather this sort of market behavior, or builds the financial and infrastructural capacity of African states to a point they can manage this short of shock without external assistance (or some combination of the three), states will continue to be forced into this sort of decision, and will make the same choice.  I am not convinced that the manipulation/corruption of markets Cowen describes is a cause of hunger as much as a symptom of a hugely problematic global political economy that no one small country can effectively manage.

In short, the situation in Malawi is very common in sub-Saharan Africa.  For most countries, the issues I raise above have been in play since independence.  The typical African country is dealing with a set of pressures that make straightforward economic decision-making nearly impossible – from state-building to market-building, these countries cannot just make economic decisions, they must make political-economic decisions that reflect the immediate reality around them.  Government is easy…until you actually have to govern.

 

 

*This is not to absolve all poor people of all responsibility for their situations. The global poor, like everyone else, are human – they are subject to emotions, biases, prejudices, etc. that sometimes do cause major problems for their well-being.  However, it has been my experience that this is not a dominant cause of the problems of poverty…mainly because if these problems were exacerbated more than they were helped by the efforts of the global poor, we’d have a lot fewer poor people because they would mostly have died. The global poor make fantastically difficult decisions about the allocation of scarce resources every day with a shocking degree of success…something we overlook at our peril.

Can’t we talk about hunger without lapsing into crises of production?

While I appreciate the overall sentiment behind “World Hunger, the Problem Left Behind”, Tyler Cowen’s op-ed piece in the New York Times earlier this week, in trying to put forth an important message he reinforces really problematic understandings of hunger. Cowen, like so many others, continues to frame food security and hunger issues as a crisis of production and productivity.  Citing Michael Lipton, Cowen writes:

Rwanda and Ghana are gaining, but…most of the continent is not. Production and calorie intake per capita don’t seem to be higher today than they were in the early 1960s. It remains an issue how Africa’s growing population will be fed.

First, production and caloric intake per capita are not necessarily directly linked.  As I have observed elsewhere on this blog (and as Hans Herren and I argued at the New America Foundation/Slate event Feeding the World While the Earth Cooks), there is a massive loss problem in most food systems that more than accounts for most food shortages in the world today.  Considering the absolutely remarkable explosion of the African population since 1960, when it held about 300 million people and today, when it holds 870 million, holding the line on per-capita production means that people effectively tripled the agricultural output of the continent.  But when you lose 40% of that production between the farm gate and market, you are going to get a disjoint between production and caloric intake that has nothing at all to do with the skills of the farmers or their on-farm circumstances.  Are there ways to augment production and improve it?  Probably, but this is not the central problem at the moment, nor is it the low-hanging fruit.  Don’t reengineer the ecosystem, just fix the road!

It would be good to see some serious discussion of food insecurity that did not center on agricultural productivity.  It seems that the urge is to start from the hardest end of the process to fix, perhaps because it is in the fields that food goes from abstract to concrete. It is hard to argue that the biggest problem is loss in the supply chain, because that is harder for people to see.  We need more posters of rotting loads of food on the back of trucks, and less pictures of dusty fields with stunted crops.  Maybe that would start to shift the narrative?