1. Economics 172 Issues in African Economic Development Lecture 23 April 18, 2006

2. Economics 1722 Outline: (1)Language politics in Africa (Laitin 1992) (2)Ethnic diversity and economic development (Easterly and Levine 1997)

3. Economics 1723 Sub-Saharan Africa is the world’s most ethno- linguistically diversity continent 14 of the world’s 15 most diverse countries are in Africa (the one exception is India) Next topic: ethnic diversity and development

4. Economics 1724 Sub-Saharan Africa is the world’s most ethno- linguistically diversity continent 14 of the world’s 15 most diverse countries are in Africa (the one exception is India) What language should be chosen as the national language of such diverse countries? (Laitin 1992) Next topic: ethnic diversity and development

5. Economics 1725 LanguageRegion (main countries) SwahiliEast Africa (Tanzania) ChichewaSouth-east Africa (Malawi) LingalaCentral Africa (Congo) WolofWest Africa (Senegal) HausaWest Africa / Sahel (Nigeria) Lingua francas in Africa

6. Economics 1726 Drawbacks to retaining the European colonial language as the official language: (1) School learning may suffer when children are taught in a language that they do not know well Should the colonial language be retained?

7. Economics 1727 Drawbacks to retaining the European colonial language as the official language: (1) School learning may suffer when children are taught in a language that they do not know well (2) Language is an important component of national identity (3) Others? Should the colonial language be retained?

8. Economics 1728 Benefits to retaining the European colonial language as the official language: (1) Ability to communicate with the rest of the world Should the colonial language be retained?

9. Economics 1729 Benefits to retaining the European colonial language as the official language: (1) Ability to communicate with the rest of the world (2) Ease of keeping laws, administrative records, textbooks, etc. from the colonial period Should the colonial language be retained?

10. Economics 17210 Benefits to retaining the European colonial language as the official language: (1) Ability to communicate with the rest of the world (2) Ease of keeping laws, administrative records, textbooks, etc. from the colonial period (3) European languages may be the most ethnically neutral choice (4) Others? Should the colonial language be retained?

11. Economics 17211 Somalia is a medium-sized ethnically homogenous country in East Africa, one of the few on the continent. This is an ideal case for a single national language Choosing an official language in Somalia

12. Economics 17212 Somalia is a medium-sized ethnically homogenous country in East Africa, one of the few on the continent. This is an ideal case for a single national language Yet the three official languages during the post- independence period were English, Italian, Arabic – not Somali! Choosing an official language in Somalia

13. Economics 17213 Somalia is a medium-sized ethnically homogenous country in East Africa, one of the few on the continent. This is an ideal case for a single national language Yet the three official languages during the post- independence period were English, Italian, Arabic – not Somali! Why? (1) There was a dispute over the correct Somali script Choosing an official language in Somalia

14. Economics 17214 Somalia is a medium-sized ethnically homogenous country in East Africa, one of the few on the continent. This is an ideal case for a single national language Yet the three official languages during the post- independence period were English, Italian, Arabic – not Somali! Why? (1) There was a dispute over the correct Somali script (2) Elites have an incentive to restrict access to government jobs and power to those who speak the colonial language fluently – people like themselves (3) Others? Choosing an official language in Somalia

15. Economics 17215 Focus on ethno-linguistic fractionalization (ELF) as their measure of diversity. The data was compiled by Soviet anthropologists in the 1960s Easterly and Levine (1997) on ethnic diversity

16. Economics 17216 Focus on ethno-linguistic fractionalization (ELF) as their measure of diversity. The data was compiled by Soviet anthropologists in the 1960s Highest ELF Countries: Tanzania (0.93), Uganda (0.90), Democratic Republic of Congo (0.89), Cameroon (0.89), India (0.89), South Africa (0.88), Nigeria (0.87), Ivory Coast (0.86), Central African Republic (0.83), Kenya (0.83), etc. Easterly and Levine (1997) on ethnic diversity

17. Economics 17217 Their main finding is that economic growth is negatively related to ethnic diversity across all countries in the world. Regression equation: GROWTH i = a + b(ELF) i + cX i + e i Ethnic diversity and economic growth

18. Economics 17218 Their main finding is that economic growth is negatively related to ethnic diversity across all countries in the world. Regression equation: GROWTH i = a + b(ELF) i + cX i + e i Their estimate is b = -0.02 (t-statistic = 3.2). Why? Ethnic diversity and economic growth

19. Economics 17219 Their main finding is that economic growth is negatively related to ethnic diversity across all countries in the world. Regression equation: GROWTH i = a + b(ELF) i + cX i + e i Their estimate is b = -0.02 (t-statistic = 3.2). Why? Outcomes/channelsb (t-statistic) Schooling-0.991 (-6.2) Financial depth-0.266 (-3.7) Exchange rate distortion 0.252 (3.4) Budget surplus-0.013 (-1.4) Telephone lines/person-3.07 (-7.2) Ethnic diversity and economic growth

20. Economics 17220 Whiteboard #1

21. Economics 17221 Whiteboard #2

22. Economics 17222 Whiteboard #3

23. Economics 17223 Whiteboard #4

24. Economics 17224 Whiteboard #5

25. Economics 17225 Map of Africa