Showing posts with label Development. Show all posts
Showing posts with label Development. Show all posts

Monday, May 21, 2007

We Seem To Be Doing Alright With Corrupt Governance

Dani Rodrik has a good post about corruption and how it applies to developing countries.

Developing countries seem to have obstacles in every possible sector that stand in the way of further growth. Despite the numerous problems they face, many people (economists, but the general population as well) focus on only a few issues, such as health, education, lack of free markets, and especially poor/corrupt governments. To focus solely on one issue, or even only 2 or 3 of these issues, misses the big picture. Development can't be pursued one sector at a time. It is trying to build a house of cards vertically instead of horizontally. When your building it, you lay down one level, then you slowly move up one level when the foundation is secure and complete. If you tried to build off a weak or incomplete foundation, the whole house will likely fall.

Sunday, May 20, 2007

When Will We (Re)New Orleans?

Some statistics from the the Katrina Index released by the GNOCDC shows how little has really been done in rebuilding New Orleans:

Only 47% of the pre-Katrina public transportation routes are open, and only 17% of the buses are operating.

This is for a city where over 25% of the population heavily relied on public transportation to get to work.

Only 45% of the schools in New Orleans Parish have been reopened. Only 52% of the hospitals have been reopened.

Another figure which at first glance might not seem very significant, but I think has serious implications is the percentage of child-care centers that have been reopened. In New Orleans Parish, only 33% have been reopened. For families with a single parent or families where both parents work (not to generalize, but let's assume these would be mostly poorer families) this gives little incentive to move back. Private child care can be expensive, so many people rely on these centers to take care of their kids when they go to work. I've read articles about the shortage of low-skilled workers that has plagued the area since the rebuilding process began, which is partly because a lot of these workers moved to the construction sector which was offering high wages due to the increased demand. But I think another reason is that the rebuilding process hasn't made it a priority to build in a way that would give the lower class incentive to move back. If they lack schools, hospitals, public transportation, and child care services, it would be very hard for a family which needs all those things to feel any sort of desire to return. Why come back when you may be guaranteed all these amenities wherever you may have moved to. No matter how strong your desire to move "home" may be, if home can't provide the basic living essentials, you may be forced to stay away.

New Orleans still has a lot of problems that it must face in the near future - many more problems than most people think. It's been almost 2 years since Katrina hit, but if you travel through the lower ninth ward, you may feel like it's only been two months.