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New insurance product protects pastoralists from losses due to drought in Kenya

This is rather interesting. Pastoralism is characterized as a complex system of avoiding, accounting for and taking advantage of risk, not unlike hedge fund managers in the United States. Animals represent potential earnings, prices at markets vary with grazing conditions and perceived long term benefits, and decisions to sell animals are not made lightly.

In the past, pastoralists have protected against devastating losses through herd maximization and cooperation and conflict over prime grazing spots, along with systems of redistribution where animals from wealthy herders are given away or stolen with the approval of the community. The world has become complicated, though, as droughts become more and more frequent, political borders and conflicts constrain the movements of pastoralists, and as the spear has been replaced with the AK-47.

An interesting though appropriate insurance system might help to mitigate losses and stabilize communities.

Capital and inequality

Joseph Joyce, professor of economics at Wellesley College wrote and interesting piece to day on capital liberalization and inequality.

I’m glad to see that so much attention is being fawned on Piketty’s most excellent book, “Capital in the 21sr Century.” It’s sure to go down as a classic in the economics literature, but the debate and discussion surrounding the book couldn’t come at a better time.

I don’t think it’s an accident that Piketty’s book, would top the NYT best seller list just a week after appearing, that a sitting President of the US would mention that inequality is one of the most important issues of our time, or that Christine LaGarde, head of the IMF would make a case that we need to address inequality at a global level.

They (Florence Jaumotte, Subir Lall and Chris Papageorgiou) analyzed the effect of financial globalization and trade as well as technology on income inequality in 51 countries over the period of 1981 to 2003. They reported that technology played a larger role in increasing inequality than globalization. But while trade actually reduced inequality through increased exports of agricultural goods from developing countries, foreign direct investment played a different role. Inward FDI (like technology) favored workers with relatively higher skills and education, while outward FDI reduced employment in lower skill sectors. Consequently, the authors concluded, while financial deepening has been associated with higher growth, a disproportionate share of the gains may go to those who already have higher incomes.

This is a scenario we’re all mostly familiar with, though the broad effects are still debatable. Increasing investment by giants like the US in overseas manufacturing push down wages on domestic unskilled labor, but it’s hard to say whether this had a major effect on overall employment. Unemployment remained steady even after Clinton signed NAFTA, and continues to remain well under European levels today, though the lowest level of workers feel the worst pain. I’m not sure if I can really advocate for protectionist measures to keep capital at home or dissuade foreign investment on principle alone, but it is true that the worst effect of foreign competition has been the erosion of labor’s political power.

Jayati Ghosh of Jawaharlal Nehru University of New Delhi has examined the role of capital inflows in developing countries. She maintains that the inflows appreciate the real exchange rate and encourage investment in non-tradable sectors and domestic asset markets. The resulting rise in asset prices pulls funds away from the financing of agriculture and small firms, hurting farmers and workers in traditional sectors. Eventually, the asset bubbles break, and the poor are usually those most vulnerable to the ensuing crisis.

Well, this is somewhat more interesting. Foreign investment in developing countries appreciates the exchange rate, leading domestic investors to put their money into, say, real estate assets. This is certainly the case all over Africa. Land and building developments are occurring at a breakneck pace, with the hopes that expensive properties will be bought up by foreign companies and individuals. It’s certainly the case that no common African could ever afford some of these places (or would even want to buy them if they could). Nairobi, Dar es Salaam and Luanda, Angola are all in the middle of a real estate bubble. The problem, of course, is that domestic investors are hoping to make a quick buck, rather than attempting to create long term, profitable industries. No wonder Africa imports the lion’s share of it’s manufactured goods. No local will invest in the infrastructure to create it locally since urban real estate is so absurdly profitable right now. This, of course, means that money flows directly into the pockets of the urban elite and then sent back out to bank accounts and retailers in France and England, further entrenching the poorest of the poor.

Without the development of local industries, domestic economies can’t function and opportunities for revenue collections are missed. and countries like Tanzania and Kenya, for example, will continue to be beggar economies which depend on the good graces of the international community to support domestic social programs.

Articles I liked 4/12/2014

Here’s a few articles I’ve been reading this morning that I liked.

Intellectual Property Rights, the Pool of Knowledge, and Innovation by Joe Stiglitz (National Bureau of Economic Research)

We began by noting that some observers of innovation have claimed that a more important determinant of the levels of investment in R & D and the pace of
innovation than the intellectual property regime is the “opportunity set,” the knowledge pool from which applied researchers can draw. Knowledge, it is has long been recognized, is a public good—a
common resource from which all can draw (see, e.g., Stiglitz 1987).32 Intellectual property provides a way of appropriating the returns to investments in knowledge, but in doing so, effectively privatizes a public good. But every innovation draws upon prior knowledge, and the boundaries of “new” knowledge are inherently imprecise. Patents inevitably enclose what would otherwise have been in the
public domain. In doing so, not only do they impede the efficient use of knowledge, but because knowledge itself is the most important input into the production of further knowledge (innovations),
they may even impede the flow of innovations.

Democracy does cause growth (National Bureau of Economic Research)

Our baseline results use a linear model for GDP dynamics estimated using either a standard within estimator or various different Generalized Method of Moments estimators, and show that democratizations increase GDP per capita by about 20% in the long run. These results are confirmed when we use a semiparametric propensity score matching estimator to control for GDP dynamics. We also obtain similar results using regional waves of democratizations and reversals to instrument for country democracy. Our results suggest that democracy increases future GDP by encouraging investment, increasing schooling, inducing economic reforms, improving public good provision, and reducing social unrest. We find little support for the view that democracy is a constraint on economic growth for less developed economies.

Abe’s Law: Domestic Dimensions of Japan’s Collective Self-Defense Debate (HERE)

The Edutainment Industrial Complex (Africa is a country)

So this is their strategy? Ask a bunch of relatively wealthy, globally-mobile pop superstars to tell rural youth to not participate in the flashy urban lifestyle they (the artists) usually promote–to stay in the countryside and participate in the resource extraction side of global capitalism? As Sean pointed out to me over email, the video isn’t unlike the type campaign some dictatorship (South Africa’s racist regime was fond of it) might use as a tool of “national development” or to fight crime or build national morale.

Is this a surprise? Western liberals have long romanticized rural poverty and encouraged Africans to simply do nothing about their developmental problems. Sorry, I had to put on my curmudgeon hat for a while.

Did pathogens influence the course of human development?

Roman toilets

Roman toilets

I would say “it depends.” I was just reading an interesting article on the “pathogen stress theory” of the development of human societies, most often attributed to Randy Thornhill, an evolutionary biologist at the University of New Mexico.

According to the “pathogen stress theory of values,” the evolutionary case that Thornhill and his colleagues have put forward, our behavioral immune systems—our group responses to local disease threats—play a decisive role in shaping our various political systems, religions, and shared moral views.

If they are right, Thornhill and his colleagues may be on their way to unlocking some of the most stubborn mysteries of human behavior. Their theory may help explain why authoritarian governments tend to persist in certain latitudes while democracies rise in others; why some cultures are xenophobic and others are relatively open to strangers; why certain peoples value equality and individuality while others prize hierarchical structures and strict adherence to tradition. What’s more, their work may offer a clear insight into how societies change.

This is a reasonable view, and something I’ve long observed from working on infectious diseases in developing countries. The developmental trajectory of a country is influenced by the deliberate avoidance of illness. An example can be seen in the locations of African cities. Many African administrative capitals are located on isolated, cool hilltops, far away from rivers and lakes. Colonialists would intentionally set up shop in areas where they were unlikely to encounter malaria.

Developmentally, this has had major implications for trade within Africa. European cities are often placed along water ways amenable to domestic European trade. The lack of trade between African countries is one of the reasons the continent has developed so poorly. This is the direct result of not only colonial priorities of resource extraction to Europe, but also the unfortunate placement of economic centers in response to malaria.

Certainly, the nature of cities themselves have much to do with the control of infectious diseases. Public works often involve the management of sewage waste and the delivery of clean water. Thornhill might suggest that the development of democracy, citizen involvement and taxation to pay for urban improvements are in direct response to enteric diseases.

However, while it is interesting to try to apply this view, it can be taken to the extreme:

Fincher (a graduate student of Thornhill) suspected that many behaviors in collectivist cultures might be masks for behavioral immune responses. To take one key example, collectivist cultures tend to be both more xenophobic and more ethnocentric than individualist cultures. Keeping strangers away might be a valuable defense against foreign pathogens, Fincher thought. And a strong preference for in-group mating might help maintain a community’s hereditary immunities to local disease strains. To test his hypothesis, Fincher set out to see whether places with heavier disease loads also tended toward these sorts of collectivist values.

I’m not sure it’s that easy to boil down political differences between Asia and Europe to a need to manage infectious disease. Certainly, Sweden is more collectivist than England, but I wouldn’t say that their infectious disease profiles are all that different.

Worse yet, if taken to the extreme, this “hunt for significance” will provide one with evidence to support any crazy theory at all. Pathogens exist wherever humans do. Moreover, we risk attributing the contribution of pathogens to human development based on current conditions, assuming that the present is deterministically preordained centuries ago. Until very recently, nearly the entire world was at risk for malaria, but despite this, various societies have embarked on different social and political trajectories.

The biggest problem I have with the theory is in its basic in rational theory. It assumes that humans are making rational choices based on pathogen threats, when we know, and particularly those of us who work in the tropics, that humans often have poor conceptions of disease transmission and causes of illness. At times, despite very obvious threate, humans will act in manners which exacerbate that threat. The history of enteric disease is filled with tales of ignorance and folly.

If we are going to subscribe to a rational model of political and social development which includes pathogens, then we have to also address first, the ability of pathogens to hijack human behavior to create new opportunities for replication and survival and second, that social changes can exacerbate the worst effects of infection. For the first point, I would look to the development of international trade systems which allow pathogens such as influenza to move around the world quickly, increasing opportunities for mutation to avoid immune responses. For the second I would point to polio, a disease which becomes a problem on after the introduction of water sanitation practices.

Thornhill’s ideas are interesting, and certainly provide good material for the popular press and BBQ conversation, but they require that the reader suspend too much consideration of the details of the complex history of human social and political development. Taken with restraint, as in the example of the locations of African cities, they can provide interesting insights into how current conditions are impacted by past pathogenic threats.

I like to think that we are doing better now…..

Every once in a while, you run across something that just gives you the chills.

“A report presented to the World Health Organization (WHO) in 1948 states: “It is not enough to quote that about 3,000,000 deaths are caused yearly by malaria in the world, or that every year about 300,000,000 cases of malaria occur …… that malaria is prevalent in tropical and subtropical areas where food production and agricultural resources are potentially very high, and that, by affecting the mass of rural workers, it decreases their vitality and reduces their working capacity and thus hampers the exploitation of the natural resources of the country. At a time when the world is poor, it seems that control of malaria should be the first aim to achieve in order to increase agricultural output” (WHO, 1948).

Snow RW, Amratia P, Kabaria CW, Noor AM, Marsh K: The changing limits and incidence of malaria in Africa: 1939-2009. Adv Parasitol 2012, 78:169-262.

Today is World Health Day!

dengueToday, April 7th. is World Health Day, an annual event sponsored by the World Health Organization to help bring attention to pressing public health issues.

This years event focuses on vector borne diseases like dengue fever and Chagas disease, which are transmitted through a third party host such as Aedes mosquitoes or triatomines (kissing bugs).

Both of these diseases are becoming increasingly relevant as the world urbanizes. Dengue and malaria form a complementary nexus of diseases. Malaria is largely associated with rural areas, and rarely found in cities, where dengue fever is almost exclusively found in urban areas. Generally speaking, dengue is a disease of development, where malaria is a disease of the lack of development.

While known to be distributed widely through Latin America and Southeast Asia, dengue has yet to make it on Africa’s radar yet, simply (in my opinion) because not enough people are looking hard enough. Africa, as the most rapidly urbanizing area of the world will eventually face a double burden of dengue and malaria and health facilities aren’t yet prepared to deal with it.

Do field research projects do the world any good?

IMG_3931It’s a reasonable question to which no one really has an answer. I work in a field site located on Lake Victoria, the office of which is based out of the International Centre for Insect Physiology and Ecology (ICIPE) station on Mbita Point.

We do malaria field surveys and have a large health and demographic surveillance system that has monitored births, deaths, migration and health events of nearly 50,000 people over the past six years.

The goals of the project are to monitor changes in demographics, outbreaks and changes in the dynamics of the transmission of infectious diseases and gauge the effectiveness of interventions.

While I view those as scientifically important, I don’t think that people on the ground experience any immediate benefit from scientific research activities. In fact, I’m pretty sure that, unless they’re getting a free bednet, it’s mostly an annoyance. Of course, we appreciate their cooperation and they are free to tell us to bugger off at anytime.

We are seeing rapid declines in malaria incidence, infant mortality and fertility in the communities we study. This is, of course, cause for celebration. Less kids are dying and people are having fewer of them.

In fact, the shift in the age distribution was so dramatic from 2011 to 2012, that we thought it an aberration of the data: the mean age of 12,000 people rose nearly two years from the beginning of 2011 to the latter part of 2012. Old people died off, and fewer babies were there to replace them, resulting in an upward shift in the age distribution. Cause for celebration in an area where women normally have anywhere from 5 to 10 children, who often end up malnourished, poorly housed and uneducated.

But we have to ask ourselves, how much of this is representative of trends in communities similar to the ones we study and how much is directly influenced by the presence of the research station itself?

A recent article in Malaria Journal documents the positive impacts that a research facility had on the local community:

To make the community a real partner in the centre’s activities, a tacit agreement was made that priority would be given to local people, in a competitive manner, for all non-professional jobs (construction workers, drivers, cleaners, field workers, data clerks, and others). Of the 254 people employed at the CRUN, about one-third come from Nanoro. This has strengthened the sense of ownership of the centre’s activities by the community. Through the modest creation of new jobs, CRUN makes a substantial contribution to reducing poverty in the community. In addition, staff members residing in Nanoro contribute to the micro-economy there.

Another crucial benefit for Nanoro and CRUN stemming from their productive engagement was electrification for the area. This was made possible by the mayor of Nanoro leading the negotiations for extending the national electrical grid to the CRUN, and with it, to the village of Nanoro. Electrification spurred a lot of economic activity and social amenities that enhance the wellbeing of the community, such as: (1) improved water supply through use electricity instead of generator; (2) ability to use electrical devices, such as fans during the hot season (when temperatures can reach 45-47°C), lighting so students can study at night, the use of refrigeration to safely store food and the extension of business hours past sunset.

Health care services have been improved through CRUN’s new microbiology laboratory. Before this laboratory was established, local patients had to travel about 100 km to the capital city, Ouagadougou, for the service.

This agrees with my experience on Lake Victoria. The presence of the research facility (built originally in the 1960′s) and the subsequent scale up of research activities has been transformative for the area. As more and more people have moved to the area, a bridge to Rusinga Island has been built, two new ferry routes have been installed, the existing ferries have been upgraded, power has been extended to the area and finally, after years of waiting, a paved road has been built from Kisumu to Mbita Point.

..which brings back me to my initial question. It is clear that the building of research facilities can be a major spur for economic development and economic activity in a previously desolate and marginalized area. In case of Mbita Point, it is possible that these gains can be sustained even following an eventual cessation of research activities and strangled funding. In this sense, field research projects are doing at least some of the world good.

However, the gains which these communities are experience really have little to do with the research projects themselves and more to do with the influx of employment and infrastructure that come with research stations and research projects. This is non-controversial and I’m sure that the locals appreciate it.

But the quality and goals of research need to be assessed. Are the results we are seeing truly representative of communities which may be similar to the Mbita Point of the past? Are we unnecessarily influencing the outcomes of the research and then perhaps inappropriately generalizing them to contexts which little resemble our target communities? From a scientific perspective, this is troubling.

Of greater concern, however, are we claiming that gains against malaria are being made, when in fact, morbidity and mortality in communities we haven’t looked at is increasing? This could result in a dangerous shift away from scaled up ITN distributions or even a total reduction in international funding. If this happens, kids will die.

What I’m reading now March 23, 2014

Well, it should really be, what I was reading two weeks ago, but… details, details….

TOEThe Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor Generally speaking, I like Bill Easterly’s views on aid and development. Easterly questions traditional models of development, arguing that top down strategies which rely on purely technical solutions rarely work, and often do more harm than good. Here, Easterly again makes the argument that the development world is full of bumbling technocrats, who fail to see the simplicity of the real problem of African development.

Note, however, that I do not share the views of uninformed cynics, which laugh at the “folly of development” and the evils of foreign aid indiscriminately. Easterly is often propped up by cynical opponents of foreign aid as a spokesperson for why we shouldn’t be given money to poor people, or by Ron Paul style non-interventionists who are quick to dismiss anything the United States does outside it’s borders, not to suggest at all that the United States alone is responsible for development. To me, and call me stupid, the issue is far too complex to boil down to a black and white view of a few self satisfied cynics. Debates over what works and what doesn’t work in development are far more interesting to me than debates of whether development is “good” or “bad.” But… I digress…

Easterly argues that what’s missing from the picture is the guarantee of true democratic rights, that is, legal restrictions on the powers of government. The reason democracy is faulty in Africa, is that most African governments equate democracy with merely having elections, when, in fact, democracy is a function of checks on the ability of government to stifle opposition and the guarantee that citizens are fully protected under the law. He is absolutely right. The structures of African governments (in general) were initially constructed to support a colonial model, which guaranteed that power would be held by a privileged (white) few. However, post-independence, few governments have made substantive changes to the ways in which they govern, despite having had, in most cases, nearly 50 years to do so. Easterly lays blame with development organizations, which offer highly technical solutions to basic problems, but are weak-kneed in demanding that governments work to guarantee basic rights to their citizens.

While I agree that democracy is about more than just having elections, and agree that basic rights must be guaranteed in order to have a free state, I wonder if he gets so caught up in the grand academic thought process, and misses some of the details. His treatment of Asia is quite limited, for example. There, most governments achieved their developmental goals without guaranteeing the rights of citizens and sometime achieved them under incredibly authoritarian and sometimes brutal one party systems. While I don’t think that the end of development is worth the means of authoritarian brutality, it must be pointed out that many governments (for example, South Korea and Taiwan) only loosened their grip after they had an educated middle class which demanded increased freedoms and rights (see the work of Ha-Joong Chang and Joe Stiglitz for a reasonable treatment of the subject). While Africa and Asia are two very different places, any discussion of development has to include both.

Easterly makes me feel good, though, in his preface. Mentioning anywhere that markets are good things in a discussion of development will have one branded as a rabid right winger, which is just a pathetically myopic view (or merely a by-product of total ignorance). The tired argument of market vs state which dominates political discussions in the US (and elsewhere) is merely a distraction from the real argument we should be having, which is over rights vs. non-rights. Are rights being protected or not? Is there proper representation or not? You can have any type of free market system you like or even a heavy welfare state, but if the guarantee of basic rights to free speech, assembly, expression and representation aren’t there, you don’t have a democracy and you probably don’t have continued development of the type that matters most.

But, I’m not a political scientist, and could easily rant on aimlessly for hours to no end whatsoever.

Politics in West Africa – Sir Arthur Lewis (1965) - Sir Arthur Lewis was a Nobel Prize winning economist from St. Lucia. He wrote this fantastic little book on the state of West African politics following independence in 1965. It’s just as relevant now as it was back then. His scathing criticism of authoritarian African governments and the multitude of missed opportunities for development for African countries were both timely and eerily prophetic. I’m particularly drawn to his criticism of viewing Africa through a Marxist lens, pointing out that, outside of a few foreign corporations, there are few true capitalists and that the plentiful nature of land compromises efforts to commodify it, and thus create a European style, class based system. He also points out the problems with the one party state, pointing out that the one party state was often created by force following independence, rather than consensus. In fact, the nature of the independence movements themselves compromised the creation of true constitutional democracies, which guarantee the rights of the minority. Independence movements were created to topple minority rule. Great book.

ATSAgainst the State: Politics and Social Protest in Japans I can’t put this book down. An excellent account of the fight to stop the building of Narita airport in the 1960′s, the implications of which were more than merely a struggle of some farmers unwilling to part with land. The struggle for Sanrizuka was a culmination of the coalescence of a wide variety of actors, many of which had little in common ideologically, reacting to an ever disconnected state. Apter rightly points out that despite strict rules on social behavior and self-control, Japan’s history is filled with examples of social change brought about not through discussion, but incredible and coordinated violence.

VOFCThe Violence of Financial Capitalism (Semiotext(e) / Intervention Series) I bought this book thinking it might be an interesting perspective on the financial crash and the events which followed it. I was somehow let down to find that the book didn’t really live up to it’s striking title. Marazzi views the crash as not an aberration, but rather another aspect of capital accumulation by financial elites, a tool of undermining labor and a method of creating conditions of social change which benefits a minority of privileged individuals. While I don’t really argue that these things didn’t (aren’t) occurring, the treatment of the subject was far too academic and disconnected for me to get behind. It is possible that I’m just not well informed on the particular academic perspective of this author. I will have to read it again.

What I’m reading now

While I was in Kenya, I picked up a number of books from Kwani?, a Nairobi based publisher which (mostly) specializes in Kenyan writers.

Established in 2003, Kwani Trust is a Kenyan based literary network dedicated to developing quality creative writing and committed to the growth of the creative industry through the publishing and distribution of contemporary African writing, offering training opportunities, producing literary events and establishing and maintaining global literary networks. Our vision is to create a society that uses its stories to see itself more coherently.

At the very least, reading these books allows one to see Kenya somewhat more coherently.

one-day-i-will-write-about-this-placeOne Day I Will Write About This Place: A Memoir Binyavanga Wanaina is now famous for bravely having come out as gay in an area famous for conservative and often violent attitudes toward homosexuality. He should be more famous for his books or at least for taking the prize money from one of his literary accolades and starting Kwani Press.

“One Day I Will Write About This Place” is a memoir of growing up in a middle class household in central Kenya, following some of the country’s most tumultuous social and political upheavals. Wanaina experiences Kenya on the periphery, looking in at Kenya through the lens of reruns of the Six Million Dollar Man, formerly colonial schools, local libraries and the staggering complexity of Kenya itself. Wanaina even makes several attempts to leave Kenya for good, jetting off to South Africa for law school during apartheid and after, even coming back to Kenya for the disastrous and bloody 2007 elections. His descriptions of the latter and of supermarkets sold out of pangas are no less than chilling.

Kenya has long been a mystery to me. While the country was set to become on of the world’s economic success stories, it’s progress was rapidly squandered due to a combination of demographics and bad politics. Wanaina might be even more perplexed.

If anything, the book needs to be read for Wanaina’s excellent prose. It doesn’t matter whether one understands or knows anything about Kenya (though it helps). His writing is engaging enough to keep ones attention even without understanding the details. This is one of the best books I’ve read in years.

kwani7Kwani? 4 Kwani? is a series of collections of Kenyan writing from both writers within and without Kenya. This volume focuses on subjects of travel, emigration, immigration and the lives of the Kenyan diaspora. Discussions of Africa must recognize that Africans are some of the most mobile people on the planet.

The experience of the diaspora is essential to understanding the state of present day African people, who often lay on the front lines fighting for survival in a world which mostly doesn’t want them, while providing support for all the people who depend on them back home. Immigration nightmares, the loss of connection with home, and the shaping of new identities make up this great collection of stories, poems and artwork.

(Note that the link is for Kwani 4.)

the-stone-hills-of-maragoli The Stone Hills of Maragoli – Stanley Gazemba I have not finished this one yet (“reading now”), but I was excited to pick up something from Gazemba, who bills himself as a humble gardener living in a slum outside of Nairobi. He is clearly much more than that. He is a prolific writer and journalist, whose works have appeared in many of the major Kenyan newspapers, New African and the New York Times (where I first became aware of him).

“The Stone Hills of Maragoli” follows Ombima as he overcomes his morals to find that stealing food from a garden is delightfully empowering. Mostly, the book is about life in a rural area of Western Kenya, filled with the complexities of daily life and a tightly knit, though deeply divided society.

The book won the Jomo Kenyatta literary prize in 2003. Gazemba apparently has frou other novels waiting to see the light of day.

Kenya Day 9

We visited another rehabilitation facility in Nairobi. We found out that the guy we are looking for has been telling his counselors about his employers, but they thought he was just making it all up. His story was so implausible that his employers were a figment of his troubled imagination.

They are surprised to find these fictional characters standing in the sitting room of their facility. One of them has the same name as a good friend of mine, Justin Farrar. I’m somewhat taken aback by his business card.

Capitalism is the cause of drug problems in Kenya, apparently. The market economy has robbed Kenyans of their culture and they are now turning to drugs for comfort and solace. I’m interested in this. I ask where most of the patients of this $500 a month facility come from. They are mostly children of the wealthy Kenyans, half of which probably have real problems, and the other half of which are sent here to get them out of their parents’ hair.

I’m wondering if all those with brains pickled (or eyes blinded) from changaa (an awful homebrewed alcoholic beverage common in the villages) are the victims of capitalism as well. While it’s important to discuss the causes and roots of social problems, it was an odd aside.

We stop by a new Ethiopian restaurant. The owner is excited because we are the first foreigners at his place, which opened up three days ago. He takes numerous pictures.

I’m told that much of the real estate boom in Nairobi has been funded through proceeds from Somali piracy. I look and find that it’s probably true.

In fact, I reflecting on how Nairobi is in the middle of a real estate bubble. Rents are absurdly high in Nairobi, but then one will pay a premium for security, particularly after Westgate. I keep thinking about what an awful strategy this is. Investors are looking to make a quick buck, building and turning over real estate prices for ever higher prices. I remark that Kenyans are wholly uninterested in developing their country, preferring risky, short term assets like real estate to investment in new manufacturing sectors.

The Kenyan government, of course, is uninterested in encouraging growth through enterprises which create jobs, preferring to skim off the top of real estate in the form of bribes and taxation for imported supplies. It’s all sad, really. I’m wondering when the bubble is going to finally burst.

It turns out the Nairobi Java House that got bombed was the one outside, not the one inside the terminal. I’m looking at it and noticing how dangerous the location is. Anyone could drive by, lob a bomb here and kill five or ten foreigners in a split second.

It’s time to go, though I’m sad. Nairobi is an exciting place, far more exciting than my own boring, though pleasant, Ann Arbor.


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