One of the most urgent challenges in African economic development is to devise a strategy for improving statistical capacity. Reliable statistics, including estimates of economic growth rates and per-capita income, are basic to the operation of governments in developing countries and vital to nongovernmental organizations and other entities that provide financial aid to them. Rich countries and international financial institutions such as the World Bank allocate their development resources on the basis of such data. The paucity of accurate statistics is not merely a technical problem; it has a massive impact on the welfare of citizens in developing countries.Where do these statistics originate? How accurate are they? Poor Numbers is the first analysis of the production and use of African economic development statistics. Morten Jerven's research shows how the statistical capacities of sub-Saharan African economies have fallen into disarray. The numbers substantially misstate the actual state of affairs. As a result, scarce resources are misapplied. Development policy does not deliver the benefits expected. Policymakers' attempts to improve the lot of the citizenry are frustrated. Donors have no accurate sense of the impact of the aid they supply. Jerven's findings from sub-Saharan Africa have far-reaching implications for aid and development policy. As Jerven notes, the current catchphrase in the development community is "evidence-based policy," and scholars are applying increasingly sophisticated econometric methods-but no statistical techniques can substitute for partial and unreliable data.
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PoorNumbers
HowWeAreMisledbyAfricanDevelopmentStatistics and What to Do about It
MortenJerven
CornellUniversityPressIthacaandLondon
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First published 2013 by Cornell University Press First printing, Cornell Paperbacks, 2013 Printed in the United States of America
Library of Congress CataloginginPublication Data
Jerven, Morten, 1978– Poor numbers : how we are misled by African development statistics and what to do about it / Morten Jerven. p. cm Includes bibliographical references and index. ISBN 9780801451638 (cloth : alk. paper) ISBN 9780801478604 (pbk. : alk. paper) 1. Economic development—Africa, SubSaharan—Statistics. 2. National income—Africa, Southern—Accounting. 3. Economic indicators—Africa, SubSaharan. 4. Africa, SubSaharan—Economic conditions—Statistics. 5. Africa, SubSaharan—Statistical services. I. Title. HC800.J47 2013 338.967—dc23 2012045248
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AppendixA.AComparisonofGDPEstimatesfromthe World Development Indicators Database and Country Estimates
vii ix xv
1 8 33
55
83 109
123
v i C o n t e n t s
AppendixB.DetailsofInterviewsandQuestionnaires
NotesReferences Index
139 141 163 179
Illustrations
Tables 1.1.AfricaneconomiesrankedbypercapitaGDP(in international USD)1.2.Availabilityofnationalaccountsdataatstatisticalofficesin Africa and comparison of countrylevel GDP and World Development Institute GDP3.1.Nigerianpopulationincensusyears(inmillions)3.2.EstimatingNigerianpopulationgrowth(%)3.3.Annualpercentagegrowthinproductionofmajorfoodcrops in Nigeria, 1970–19823.4.TotalfoodcropproductioninNigeria,1981–1990(%growth)3.5.TotalcashcropproductioninNigeria,1981–1990(%growth)3.6.EstimatedoutputofmajoragriculturalcropsinNigeriafor the year 1993–1994 (in thousands of tonnes)3.7.Estimatedcorrelationmatrixofannualgrowthratesfor Tanzania, 1961–20013.8.Averageannualgrowthaccordingtodifferentdatasources,Tanzania, 1961–2000
18
24 59 60
62 63 63
64
65
67
v i i i I l l u s t r a t i o n s
3.9.AnnualrateofeconomicgrowthinTanzania1985–1995 (%)4.1.SummaryofdataprovidedinIMFandWorldBankreports on national statistical capacity in subSaharan Africa
Howdotheyevencomeupwiththesenumbers?ThatwasthequestionI wanted to answer. It was 2007 and I went to Zambia to do fieldwork for my doctoral thesis in economic history. I wanted to examine how national income estimates were made in African countries. I was struck by the der elict state of the Central Statistical Office in Lusaka. The planned agricul tural crop survey was being delayed by the need for car repairs, most of the offices were dark, and the computers were either missing or very old. The national accounts division had three employees, of whom only one was regularly in the office while I was visiting. No one at the office could account for how the income estimates had been made more than a decade ago. In the library there was a dearth of publications and no record of any activity that may or may not have taken place in the late 1970s, the 1980s, and the early 1990s. ThedataandmethodsusedtoestimateZambiannationalincomehadlast been revised in 1994. A short report on methodology had been pre pared, but it was unpublished and was circulated internally as a manual for the national accountants. It revealed the real state of affairs of national income statistics in Zambia. I was surprised by the lack of basic data and the rudimentary methods in use. Regular and reliable data were available