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a podcast about ideas on growth, progress, and prosperity

www.ideasuntrapped.com

Ideas Untrapped Tobi Lawson

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a podcast about ideas on growth, progress, and prosperity

www.ideasuntrapped.com

    The Dynamics of Growth

    The Dynamics of Growth

    In this podcast episode, Tobi interviews Rasheed Griffith - who is the CEO of The Caribbean Progress Institute, and host of The Rasheed Griffith Show explores the adaptability and policy implementation in smaller countries compared to larger ones, noting that smaller nations can change more swiftly due to simpler institutional structures. Rasheed contrasts this with larger countries like China and India, where changes, although rapid, are often driven by cultural homogeneity and authoritarian governance, which may not be desirable in Western democracies. The discussion also touches on the impact of leadership and institutional capacity on economic development, emphasizing that the quality of governance often outweighs the mere structure of political systems in influencing a country's developmental trajectory.
    You can listen to episodes of Rasheed's brilliant podcast (The Rasheed Griffith Show) here. You can also subscribe to the Carribean Progress Institute newsletter here, where you can read many interesting and important writings.

    Transcript
    Tobi;
    Welcome to the show, Rasheed.
    It's great to talk to you.
    I want to start with something that you mentioned in our first conversation, which has stayed with me. I haven't been able to stop thinking about it since, which is that small countries are somewhat more amenable to change than big countries. You know, when we talk about ideas and policies and economic development,
    I just want you to expand on that a bit. I know I'm paraphrasing, but I want you to expand on that a bit.
    Why do you suppose that is?
    Rasheed;
    Small countries have less people to influence politically, economically, socially. So ideas can spread faster and ideas can spread deeper in small countries. So for example, if you have a country like Nigeria, you have over 200 million people, you have vast, vast institutions that are captured or incentivized in very radically complex ways.
    Compare that to a country like Saint Lucia that has 180,000 people. Very small institutions, very small number of schools, very small number of just social actors.
    For the difficulty of idea spread and idea capture, it's a lot less in a very small place, and yet these are still essentially independent sovereign UN vote countries that have as much rights in that league as Nigeria.
    You know, Walmart...Walmart in the US has more employees than all of Saint Lucia has population. Or even Saint Vincent, or even Trinidad, Walmart has more employees.
    So, when you talk about turning the ship of these small countries, it's a lot less complicated than trying to influence Nigeria or Ethiopia or the US or Canada.
    Tobi;
    I want to square that a bit with what we saw in China in the last 40 years.
    China is obviously a very large country and some people would say that it went through a process of rapid change, I mean, after the 1978 reforms. How did a country like China and to some extent what we are seeing in India recently, do you think that having, even if you're a big country, having a homogenous culture, language, ethnic population, does that also help speed up the process of change.
    China, obviously, communism being the central guiding ideology and of course, majority of the population is Han Chinese. And we're seeing Modi, you know, rally around Hinduism as the national identity of the country. So, how does homogeneity play in here? And you see some pretty screwed up small countries, you know, Haiti…
    What are the constraints and what are the catalysts?
    Rasheed;
    So China is obviously a good example, but China didn't just transform itself via ideas. It transformed itself via a dictatorship. And I think most people would not want that trade-off. You know you go to Shanghai, [which] I've been to many times, you go to Shanghai and you say “it's so great here, the transportation is fantastic the skyline is amazing, all this happened in 30 years” but then the problem is this; the way [and] how it's done, the effects, the results are quite spec

    • 47 min
    History and the Future of Prosperity

    History and the Future of Prosperity

    In this episode, I had a conversation with economic historian Johan Fourie, who is a professor of economics at Stellenbosch University, and the author of one of the most enjoyable books on economic history called Our Long Walk to Economic Freedom. We spoke about the resurgence of economic history, particularly in Africa. Johan attributes this revival to multiple factors, including an interest in understanding past economic patterns, technological advancements enabling data analysis, and scholarly work drawing global attention to the field. We discuss Africa's economic development, noting the continent's reliance on primary goods and the impacts of political and economic policies on growth. Johan stresses the heterogeneity within Africa and warns against generalizing the continent's economic narrative.
    The discussion then delves into the role of ideas in shaping economies, with a focus on industrial policy. Johan highlights the importance of empirical evidence in policymaking and warns against the potential misuse of industrial policy for political gains. He emphasizes the need for a more inclusive research ecosystem in Africa, advocating for better representation and the promotion of economic history as a vital sub-discipline.
    Johan also addresses the importance of economic freedom, defining it in simple terms and discussing its implications in policy decisions. He touches on the challenges of racial history and representation in academia, emphasizing the need for diverse voices and a marketplace of ideas for better policy formulation.
    Finally, Johan discusses the optimism inherent in economic history, acknowledging the significant progress humanity has made while remaining cautiously hopeful about the future. He advocates for policies that ensure the equitable distribution of the benefits of increased productivity, highlighting the potential of new technologies to contribute positively to Africa's economic growth.
    Transcript
    Tobi;
    Welcome Johan. It's good to talk to you. I guess where I’ll start is economic history is enjoying a bit of a renaissance, I'd say. Personally, for me, I'll say in the last five years I've read more economic history books and papers than actual economics itself. So I just want to ask you, what was the turning point, at least in recent time, why does economic history seem to be having a moment or its moment right now?
    Johan;
    I think there are many answers to that question. I'll focus on African economic history because I think that's something, firstly, that I know a little bit of, and secondly, that the factors that affect African economic history might be slightly different than those that make economic history attractive to, kind of, global audience.Although I do think your sentiment is true also for for global economic history, that there's certainly been a resurgence in interest. Of course, they were previous episodes where this also happened in the 1960s there was a great interest in econometrics, but that kind of died down by the 80s and 90s. And certainly I think in the last decade or two that's made a comeback, but certainly in African economic history, also by the 60s and 70s, for different reasons, again, because of the end of the colonial period and many Africans being interested in their own economic pasts;  it was, you know, certainly intended to improve the development outcomes of many of these countries. And so studying what had happened in the past became important. And then by the 80s, you know, for reasons like the shift in history towards more cultural aspects of African history and, perhaps, also, to some extent, the fact that economics became more technical, more mathematical.
    The fields really, economic history really, had kind of dialed down interest in Africa's past, but perhaps also to some extent, the fact that many African countries were struggling to grow. And so there was little interest in understanding of why these things had persisted. But by

    • 57 min
    The Promise and Challenges of Charter Cities

    The Promise and Challenges of Charter Cities

    In this episode, I had a conversation with Kurtis Lockhart who is the executive director of Charter City Institute - a non-profit that thinks and executes governance models for cities to power developing economies into growth and productivity.
    Our conversation started with an update on the concept of Charter Cities and how they differ from traditional models like Special Economic Zones (SEZs), particularly in the context of economic development. Kurtis describes Charter Cities as new cities with distinct governance models designed to drive sustained economic growth and alleviate poverty, primarily in lower-middle-income countries. This approach is seen as an alternative to the model first prescribed by the economist and Nobel Laureate Paul Romer, which involved a high-income country importing its governance to a low-income nation. Kurtis emphasizes a public-private partnership (PPP) model, where a host country collaborates with an urban developer, ensuring local involvement and sustainable development.
    The conversation addresses concerns about Charter Cities being enclaves for the wealthy, clarifying that the Charter City Institute (CCI) focuses on broad-based economic growth and poverty alleviation. Kurtis highlights the importance of political buy-in and stability, acknowledging the challenges of expropriation and policy consistency across different political regimes. He suggests mitigation strategies like revenue-sharing agreements, equity stakes for host countries in city developers, and political risk insurance.
    Discussing the geographical constraints, Kurtis acknowledges that location and economic geography play a crucial role in the success of Charter Cities. However, he argues that geographical advantages can evolve with changing technologies and transportation networks, as seen in historical examples like the Erie Canal.
    Addressing concerns about existing urban challenges and inequalities, Kurtis talked about CCI's involvement in upgrading existing cities and supporting secondary cities, especially in Sub-Saharan Africa, where most urban growth is anticipated. He shares plans to collaborate with Kenya's State Department for Housing and Urban Development to empower select secondary cities through the Special Development Zone initiative, leveraging their success as models for other cities.

    Transcript
    Tobi;
    Welcome to Ideas Untrapped. It's fantastic to talk to you, Kurtis. I've been wanting to do this for a long time.
    Kurtis;
    Yeah. Thanks, Tobi. I know we've been trying to do this for a while. It's good to finally be on with you. 
    Tobi;
    So let's start from the absolute basics. I'm trying not to get carried away because Charter Cities are something that sort of excites me as well. I should also say it annoys me, possibly in equal measure. So I'll try not to get carried away, but if you can just give me an elevator pitch, so to speak, but you can go as long as you want. What are charter cities and how are they relevant to issues surrounding economic development, particularly in the 21st century?
    Kurtis;
    Yeah, so thanks again. And I'll start at the highest level I can, and then you can ask more specific questions as we go on. So at the very basic level, the definition of charter cities is new cities with new rules to improve governance. And so why do we think that that's really important? Zooming out, the best way to lift people out of poverty at scale is through sustained economic growth over one, two, three, four- decades. That's what happened in East Asia, in Japan, in Taiwan and South Korea. It's what happened in China, and I think it's what's happening in India now. You then have to ask yourself, how do we increase economic growth rates over sustained periods of time? Economists are pretty agreed that the single greatest determinant of long-run economic growth rates is governance, right? It's institutions. And the problem with governance and institutions and getting good governance is many countries, espe

    • 50 min
    Rethinking Good Governance

    Rethinking Good Governance

    Welcome to another episode of Ideas Untrapped podcast.
    In this episode, I spoke to Portia Roelofs who is a Lecturer in Politics at the Department of Political Economy at King's College London, and also a research associate at the African Studies Centre in Oxford. She is the author of a fantastic book titled Good Governance in Nigeria; Rethinking Accountability and Transparency in the Twenty-First Century.
    Portia critiques the "good governance" agenda, arguing it's a continuation of structural adjustment programs from the '80s and '90s, which focused on market-driven development, privatization, and state withdrawal. She asserts these reforms didn't consider the social and political realities in African countries, leading to significant challenges, including a narrowed policy scope and "choiceless democracies."
    Portia proposes a more socially embedded approach to governance, emphasizing the need for government officials to be accessible and accountable in more culturally resonant ways, beyond just transparency and efficiency. She suggests practical steps like politicians residing in their constituencies and being directly reachable. The conversation also explores the tension between technocratic and populist approaches in Nigerian politics, highlighting the importance of addressing immediate social needs alongside long-term developmental goals.
    Despite the critique of current governance models, the conversation acknowledges the complexity of governance in Nigeria and the need for nuanced solutions that consider both the efficiency of the civil service and the broader economic and social goals of the state. The discussion concludes by reflecting on the need for a more comprehensive discussion on the role and aims of the state in Nigeria, beyond just improving civil service efficiency.
    Transcript
    Tobi;
    I'll start with where you started your book. I should say I enjoyed your book very much.
    Portia;
    Thank you.
    Tobi;
    It's very interesting, and I really connected with it as a Nigerian. So, what you described as the good governance agenda and its challenges, its failures, and way it has come short in the context of Africa and Nigeria, in this case, is where I’ll like us to really start. So just give me a brief rundown of that, because what you call the good governance agenda or the technocratic World Bank-type description of what good governance is, is still the popular and, I should say, acceptable form of discourse in the popular mind about how we think governance should be. So, just give me a brief rundown of your critique of that.
    Portia;
    Okay, sure. So, I think to understand a good governance agenda you really have to understand what it was a response to and, kind of, the immediately preceding history. So in the 1980s and the 1990s, you have the structural adjustment programs which are promoted by the World Bank and the IMF and adopted by many, many countries both in Africa and in the global south. And these are programs that take aim at the kind of bloated state and too much state intervention in the economy. And they say the economy needs to be structurally changed to allow market forces to drive development. So you see a kind of consistent pattern of privatization, liberalization, devaluation, removal of capital controls. And that was driven by a strongly ideological belief that the market is the best allocator of resources and the best driver of development.
    And Nigeria, in 1986, under Babangida adopted something that was basically the structural adjustment programs, albeit not quite in name. And then by the kind of 1990s, the early 1990s, the late 1980s, people were starting to realize, actually, these structural adjustment programs don't work. They don't achieve what we wanted them to achieve. In many places, they had absolutely disastrous results. And a lot of the critique of that is coming from places like CODESRIA (Council for the Development of Social Science in Africa). So African scholars, from a mor

    • 1 tim. 24 min
    LANT PRITCHETT ON EVERYTHING part 2

    LANT PRITCHETT ON EVERYTHING part 2

    Hello everyone, and you are listening to Ideas Untrapped podcast. This episode is a continuation of my two-part conversation with Lant Pritchett. It concludes the discussion on education with the five things Lant would recommend to a policymaker on education policy, how to balance the globalized demand for good governance with the design of state functionalities within a localized context - along with RCTs in development and charter cities. I also got an exclusive one of his infamous ‘‘Lant Rants’’. I hope you find this as enjoyable as I did - and once again, many thanks to Lant Pritchett.

    Transcript
    Tobi;
    Yeah, I mean, that's a fine distinction. I love that, because you completely preempted where I was really going with that. Now, on a lighter note, there's this trope when I was in high school, so I sort of want us to put both side by side and try to learn more about them. There's this trope when I was in high school amongst my mates, that examination is not a true test of knowledge. Although it didn’t help the people who were saying it, because they usually don't test well, so it sort of sounded like a self serving argument. But examination now, or should I say the examination industry, clearly, I mean, if I want to take Nigeria as an example, is not working. But it seemed to be the gold standard, if I want to use that phrase. It's as bad as so many firms now set up graduate training programs. Even after people have completed tertiary education, they still have to train them for industry and even sometimes on basic things. So what are the shortcomings of examination, the way you have distinguished both? And then, how can a system that truly assesses learning be designed?
    Lant;  
    Let me revert to an Indian discussion because I know more about India than Africa by far. There are prominent people, including the people around JPAL and Karthik Muralidharan, who say, look, India never really had an education system. It had a selection system. And the ethos was, look, we're just throwing kids into school with the hopes of identifying the few kids who were bright enough, capable enough, smart enough, however we say it, measured by their performance on this kind of high stakes examination who are going to then become the elite. So it was just a filter into the elite, and it really meant the whole system was never really in its heart of heart geared around a commitment to educating every kid. I've heard teachers literally say out loud when they give an exam and the kids don't master the material, they'll say, oh, those weren't the kind of kids who this material was meant for. And they leave them behind, right? There's a phrase “they teach to the front of the class.” You order the class by the kid's academic performance, and then the teachers are just teaching to the front of the class with the kind of like, nah, even by early grades. So the evils of the examination system are only if it's not combined with an education system. So essentially, an education system would be a system that was actually committed to expanding the learning and capabilities of all kids at all levels and getting everybody up to a threshold and then worried about the filter problem much later in the education process.
    So if they're part of an education system like they have been in East Asia, they're not terribly, terribly damaging. But if they're part of a selection system in which people perceive that the point is that there's only a tiny little fraction that are going to pass through these examinations anyway and what we're trying to do is maximize the pass rates of that, it distorts the whole system start to finish. My friend, Rukmini Banerjee, in India started this citizen based assessment where it was just a super simple assessment. You need assessment in order to have an effective education system, because without assessment, I don't know what you know or don't know, right? And if I don't know as a teacher or as a school w

    • 52 min
    LANT PRITCHETT ON EVERYTHING part 1

    LANT PRITCHETT ON EVERYTHING part 1

    Welcome to the Ideas Untrapped podcast - and my guest today is Development Economist Lant Pritchett. He is one of the most incisive and insightful scholars in the field, and his influence at the frontier of development research cannot be overstated. His research mostly focuses on economic growth, its contributing factors, and the development implications for peoples and countries. It was a privilege for me to talk to Lant, and I took the chance to ask him questions about some of the big themes of his research like Migration, Education, and State Capability.
    This is a two-part conversation. In this episode, we discussed Migration and Education. Lant provides insights into how the demographic transition in many rich countries has now pushed the migration debate to the forefront, as opposed to when he was writing about it two decades ago. How the Solow model might explain the absence of migration on the development agenda, and why he thinks the ‘‘brain drain’’ is ‘‘mostly a myth’’. He also explained to me how we ended up with the wrong dashboard in education policies and the distinction between assessment and examination in measuring learning. I want to thank Lant for talking to me, and thank you all for always listening. I hope you enjoy it.

    Transcript
    Tobi;
    My guest really needs no introduction. There's nowhere in the world of development, global development, and development economics, where Lant Pritchett is not a household name. So I’ll like to say welcome, and it's a pleasure to talk to you.
    Lant;
    Thanks for inviting me.
    Tobi;
    On a light note, let's start on a very light note. What have you been working on recently?
    Lant;
    So recently I've been doing two things. I've been wrapping up a large research project on basic education in the developing world, sort of K to twelve, and that had been an eight year research project that's just wrapping up. But more recently, I'm trying to ramp up my engagement on labour mobility. The world is facing a real demographic transition point, with the rich industrial world, particularly workforce age populations, just in constant decline while their aging population is increasing. And at the same time we have this massive youth bulge in parts of, not all of, but in parts of the developing world. And, you know, I'm an economist, whenever you see huge differences, you think, well, here's an opportunity for exchange. So the world's biggest opportunity for exchange right now is the West, as we call it, desperately needs workers, Africans definitely need the hide productivity income and jobs. And it's a great opportunity for exchange, but it's blocked by laws and policies that just make migration next to impossible. And I'm working to break that gridlock and get some sensible ways in which we can put willing workers into needed jobs.
    Tobi;
    I think that's a good launchpad to start the conversation on migration, which you've worked quite a lot on. I read your book Let Their People Come a couple of years ago. As a general question, what do you think we have learned from the time you wrote that book and you were compiling that research and now? Because definitely to me, it doesn't feel like much has changed in terms of the debate. And like you said, migration is such a big issue with economic and political consequences on both sides of the Atlantic. So what have we learned? And if nothing, why is that so? Why is there such a resistance to thinking differently about migration?
    Lant;
    What have we learned is a great question. Let's start with the demography of this. That book was written in 2006. One thing about demography is you can predict it very far into the future, right? Everybody who's going to be a 30 year old worker in 20 years is ten years old today. And so it's really not that hard to know what the future, the 20-, 30-year future of the labour force is going to look like, because everybody gets a year older. So on one level, we've learned nothing. But on anoth

    • 52 min

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