The state has a principal role to play in the economic development of any society. The central pl... more The state has a principal role to play in the economic development of any society. The central place of the state in development remains the same irrespective of the economic model being practiced. Whether it is based on free market principles or anchored on state interventionism, one cannot wish away the state. Under free market economies, the state must provide an enabling environment, including the soft and hard infrastructures necessary for businesses to thrive. With state interventionism, the state bureaucracy must be made up of highly qualified and motivated staff who have the authority to devise and implement industrial policies effectively. In a society where the state exists primarily to serve the selfish desires of incumbent political leaders, growth and development would be impossible irrespective of the economic model in practice.
Exploitation and Misrule in Colonial and Postcolonial Africa, 2019
This chapter provides an introduction to the volume and summarizes the arguments advanced by the ... more This chapter provides an introduction to the volume and summarizes the arguments advanced by the contributors. The central argument is that the lot of the average African citizen has, in several respects, followed the same path from colonial exploitation to postcolonial misrule. What has changed over the years has been the beneficiaries of Africa’s exploitation. Political independence has so far not produced stable polities and balanced development in most African states. While changes have happened on several fronts, these changes have not been sufficient to transform key governance institutions that have facilitated rabid exploitation of the common wealth in favor of the ruling elite. The recommended way forward for African states is conscious efforts by domestic actors and the continent’s external development partners to transform the institutions that have fostered exploitation and bad governance over the years.
It is doubtful that underdevelopment and poverty in Africa is caused by a shortage of financial, ... more It is doubtful that underdevelopment and poverty in Africa is caused by a shortage of financial, human, material or natural resources. Several countries in other regions with little or no natural resources, and with lower population than Africa has achieved tremendous successes during the past few years. On the other hand, despite Africa’s huge natural resources, large and youthful population and various episodes of community booms, most of the continent remain poor. It is no coincidence that Africa also has had the largest number of dictators during the past fifty years, with bad governance and state corruption almost a permanent narrative of the continent’s political economy. Unfortunately, it would seem that donors find it convenient to wish away the obvious predatory nature of the African state when such donors and other development partners suggest that more cash given to African countries could help to cut poverty in half. Because poverty in Africa has been caused by rapacious...
PurposeThis study adopts an institutional entrepreneurship perspective in the context of public–p... more PurposeThis study adopts an institutional entrepreneurship perspective in the context of public–private partnerships (P3s) to highlight the role of social actors in enacting institutional change in a complex organizational setting. By studying the actions of two prominent social actors, the authors argue that successful institutional change is the result of dynamic managerial activity supported by political clout, organizational authority and the social positioning of actors.Design/methodology/approachThe authors conducted a field-based case study in a complex institutional and organizational setting in Alberta, Canada. The authors employed an institutional entrepreneurship perspective to identify and analyze the activities of two allied actors motivated to transform the institutional environment for public infrastructure delivery.FindingsThe empirical study suggests that the implementation of institutional change is both individualistic and collaborative. Moreover, it is grounded i...
The assumption that political independence will bring economic independence and improve the quali... more The assumption that political independence will bring economic independence and improve the quality of life of Africans has largely been a mirage. After political independence, many African states experienced massive political and economic crises. Military rule was rampant across the continent, beginning in the 1960s, and a number of countries experienced civil wars. Although every new military dictator promised to rescue the state from the exploitation and bad choices of politicians, in reality, military rule did not produce the transformation needed to bring development and prosperity to African states. As poverty persisted across the region, the rest of the world responded to the continent through various forms of grants and aids. Despite the promises of globalization, such as enhanced access to global markets, Africa has been unable to effectively domesticate globalization to its advantage, largely because there is little production in the continent. Consequently, Africa has lar...
Die Ausgabe 2020 nimmt mit Subsahara-Afrika erstmals einen geografischen Fokus ein und mochte daz... more Die Ausgabe 2020 nimmt mit Subsahara-Afrika erstmals einen geografischen Fokus ein und mochte dazu beitragen, stereotype Vorstellungen aufzubrechen. Kein anderer Kontinent unterliegt so klischeehaften Charakterisierungen wie Afrika, das oft nur im Kontext von Krisen, Kriegen und Katastrophen wahrgenommen wird. Alleine die Wachstumszahlen vermitteln ein Bild von der Dynamik, die den Kontinent erfasst hat: 2018 befanden sich sechs der zehn am schnellsten wachsenden Volkswirtschaften in Afrika. Der Sammelband durchleuchtet die Chancen und Risiken des Wirtschaftswachstums in Bezug auf die Armutsbekampfung, denn neue Kooperationsformen und Wachstum kommen nicht automatisch den Armen zugute. Fakt ist namlich auch, dass mehr als die Halfte der von extremer Armut betroffenen Menschen in Afrika lebt. Der Almanach Entwicklungspolitik geht den Ursachen auf den Grund und beleuchtet Entwicklungen, welche afrikanische Gesellschaften einschneidend pragen – dazu gehoren unter anderem die Urbanisier...
This paper examines the nature and origins of state-society relations in sub-Saharan Africa (SSA)... more This paper examines the nature and origins of state-society relations in sub-Saharan Africa (SSA). It traces the region's predatory state-society relations to slavery and colonialism and the concomitant extractive institutions, which are not conducive to sustainable economic development. Consequently, attempts to achieve sustainable development have been largely futile. The paper proposes a strategy for transforming the region's economic and governance institutions for inclusive and enduring growth and development. This strategy includes the promulgation and enforcement of coherent international codes and guidelines for state-society relations.
International Journal of Economics and Finance, 2017
The purpose of this paper is to reconcile previous findings of prolonged asymmetrical relationshi... more The purpose of this paper is to reconcile previous findings of prolonged asymmetrical relationships between interest rates and stock returns, where a reduction in interest rates in one month was shown to produce positive stock returns over a twelve-month period. This study provides evidence that the puzzling relationships suggested by a previous study are sample-dependent and cannot withstand further scrutiny. Test results presented in this study show that investors are not likely to earn abnormal returns through an investment strategy constructed on the expectation of long-term positivie returns following a reduction in interest rates.
This chapter provides a succinct review of the role of the major Cold War actors (the USA with it... more This chapter provides a succinct review of the role of the major Cold War actors (the USA with its European allies and the USSR) on Africa’s decolonization process. Based on the actions of these major actors, Kalu argues that the intrigues of the Cold War shaped Africa’s decolonization process in very significant ways, and led to the evolution of extractive and utterly predatory political and economic institutions in postcolonial Africa. Drawing from several cases of foreign interventions in Africa during the Cold War, Kalu contends that the activities of the USA and its allies were not always focused on advancing the interests of Africans, but were more concerned with ensuring that African countries did not imbibe communist ideas.
International journal of business and economics, 2019
This study examines financial market structure and the finance-growth relationship in the emergin... more This study examines financial market structure and the finance-growth relationship in the emerging markets of Brazil, Russia, India, China, and South Africa (BRICS).While causality runs from the stock market to economic growth in Brazil, credit drives economic growth in South Africa. On the other hand, our results show that causality runs from economic growth to financial development in Russia, India, and China. We explore the financial market structure and economic management arrangements of each country in order to explain the observed test results. In countries with extensive government controls over the financial sector, economic growth is more likely to drive to financial sector development. On the other hand, in open market economies with developed financial systems, causality is more likely to move from financial sector development to economic growth. JEL Classification: G21, G28, G32, E44 Keywords: Financial Sector; Economic Growth; BRICS.
In the introductory chapter, Kalu and Falola recount Africa’s weak position in global political a... more In the introductory chapter, Kalu and Falola recount Africa’s weak position in global political and economic spheres. They acknowledge that globalization has created enormous opportunities in the global market and created new winners, especially in the newly industrializing countries of Southeast Asia. However, Africa has been unable to reap much benefit from the expansion in global trade. This inability, so far, to play an important role in the global economy is attributed, at least in part, to weak institutions, poor governance records and lack of productive capacities in most of Africa’s states. Kalu and Falola want African leaders and policymakers to look inward and take steps towards transforming the state and its institutions to allow sustainable and inclusive growth.
The state has a principal role to play in the economic development of any society. The central pl... more The state has a principal role to play in the economic development of any society. The central place of the state in development remains the same irrespective of the economic model being practiced. Whether it is based on free market principles or anchored on state interventionism, one cannot wish away the state. Under free market economies, the state must provide an enabling environment, including the soft and hard infrastructures necessary for businesses to thrive. With state interventionism, the state bureaucracy must be made up of highly qualified and motivated staff who have the authority to devise and implement industrial policies effectively. In a society where the state exists primarily to serve the selfish desires of incumbent political leaders, growth and development would be impossible irrespective of the economic model in practice.
Exploitation and Misrule in Colonial and Postcolonial Africa, 2019
This chapter provides an introduction to the volume and summarizes the arguments advanced by the ... more This chapter provides an introduction to the volume and summarizes the arguments advanced by the contributors. The central argument is that the lot of the average African citizen has, in several respects, followed the same path from colonial exploitation to postcolonial misrule. What has changed over the years has been the beneficiaries of Africa’s exploitation. Political independence has so far not produced stable polities and balanced development in most African states. While changes have happened on several fronts, these changes have not been sufficient to transform key governance institutions that have facilitated rabid exploitation of the common wealth in favor of the ruling elite. The recommended way forward for African states is conscious efforts by domestic actors and the continent’s external development partners to transform the institutions that have fostered exploitation and bad governance over the years.
It is doubtful that underdevelopment and poverty in Africa is caused by a shortage of financial, ... more It is doubtful that underdevelopment and poverty in Africa is caused by a shortage of financial, human, material or natural resources. Several countries in other regions with little or no natural resources, and with lower population than Africa has achieved tremendous successes during the past few years. On the other hand, despite Africa’s huge natural resources, large and youthful population and various episodes of community booms, most of the continent remain poor. It is no coincidence that Africa also has had the largest number of dictators during the past fifty years, with bad governance and state corruption almost a permanent narrative of the continent’s political economy. Unfortunately, it would seem that donors find it convenient to wish away the obvious predatory nature of the African state when such donors and other development partners suggest that more cash given to African countries could help to cut poverty in half. Because poverty in Africa has been caused by rapacious...
PurposeThis study adopts an institutional entrepreneurship perspective in the context of public–p... more PurposeThis study adopts an institutional entrepreneurship perspective in the context of public–private partnerships (P3s) to highlight the role of social actors in enacting institutional change in a complex organizational setting. By studying the actions of two prominent social actors, the authors argue that successful institutional change is the result of dynamic managerial activity supported by political clout, organizational authority and the social positioning of actors.Design/methodology/approachThe authors conducted a field-based case study in a complex institutional and organizational setting in Alberta, Canada. The authors employed an institutional entrepreneurship perspective to identify and analyze the activities of two allied actors motivated to transform the institutional environment for public infrastructure delivery.FindingsThe empirical study suggests that the implementation of institutional change is both individualistic and collaborative. Moreover, it is grounded i...
The assumption that political independence will bring economic independence and improve the quali... more The assumption that political independence will bring economic independence and improve the quality of life of Africans has largely been a mirage. After political independence, many African states experienced massive political and economic crises. Military rule was rampant across the continent, beginning in the 1960s, and a number of countries experienced civil wars. Although every new military dictator promised to rescue the state from the exploitation and bad choices of politicians, in reality, military rule did not produce the transformation needed to bring development and prosperity to African states. As poverty persisted across the region, the rest of the world responded to the continent through various forms of grants and aids. Despite the promises of globalization, such as enhanced access to global markets, Africa has been unable to effectively domesticate globalization to its advantage, largely because there is little production in the continent. Consequently, Africa has lar...
Die Ausgabe 2020 nimmt mit Subsahara-Afrika erstmals einen geografischen Fokus ein und mochte daz... more Die Ausgabe 2020 nimmt mit Subsahara-Afrika erstmals einen geografischen Fokus ein und mochte dazu beitragen, stereotype Vorstellungen aufzubrechen. Kein anderer Kontinent unterliegt so klischeehaften Charakterisierungen wie Afrika, das oft nur im Kontext von Krisen, Kriegen und Katastrophen wahrgenommen wird. Alleine die Wachstumszahlen vermitteln ein Bild von der Dynamik, die den Kontinent erfasst hat: 2018 befanden sich sechs der zehn am schnellsten wachsenden Volkswirtschaften in Afrika. Der Sammelband durchleuchtet die Chancen und Risiken des Wirtschaftswachstums in Bezug auf die Armutsbekampfung, denn neue Kooperationsformen und Wachstum kommen nicht automatisch den Armen zugute. Fakt ist namlich auch, dass mehr als die Halfte der von extremer Armut betroffenen Menschen in Afrika lebt. Der Almanach Entwicklungspolitik geht den Ursachen auf den Grund und beleuchtet Entwicklungen, welche afrikanische Gesellschaften einschneidend pragen – dazu gehoren unter anderem die Urbanisier...
This paper examines the nature and origins of state-society relations in sub-Saharan Africa (SSA)... more This paper examines the nature and origins of state-society relations in sub-Saharan Africa (SSA). It traces the region's predatory state-society relations to slavery and colonialism and the concomitant extractive institutions, which are not conducive to sustainable economic development. Consequently, attempts to achieve sustainable development have been largely futile. The paper proposes a strategy for transforming the region's economic and governance institutions for inclusive and enduring growth and development. This strategy includes the promulgation and enforcement of coherent international codes and guidelines for state-society relations.
International Journal of Economics and Finance, 2017
The purpose of this paper is to reconcile previous findings of prolonged asymmetrical relationshi... more The purpose of this paper is to reconcile previous findings of prolonged asymmetrical relationships between interest rates and stock returns, where a reduction in interest rates in one month was shown to produce positive stock returns over a twelve-month period. This study provides evidence that the puzzling relationships suggested by a previous study are sample-dependent and cannot withstand further scrutiny. Test results presented in this study show that investors are not likely to earn abnormal returns through an investment strategy constructed on the expectation of long-term positivie returns following a reduction in interest rates.
This chapter provides a succinct review of the role of the major Cold War actors (the USA with it... more This chapter provides a succinct review of the role of the major Cold War actors (the USA with its European allies and the USSR) on Africa’s decolonization process. Based on the actions of these major actors, Kalu argues that the intrigues of the Cold War shaped Africa’s decolonization process in very significant ways, and led to the evolution of extractive and utterly predatory political and economic institutions in postcolonial Africa. Drawing from several cases of foreign interventions in Africa during the Cold War, Kalu contends that the activities of the USA and its allies were not always focused on advancing the interests of Africans, but were more concerned with ensuring that African countries did not imbibe communist ideas.
International journal of business and economics, 2019
This study examines financial market structure and the finance-growth relationship in the emergin... more This study examines financial market structure and the finance-growth relationship in the emerging markets of Brazil, Russia, India, China, and South Africa (BRICS).While causality runs from the stock market to economic growth in Brazil, credit drives economic growth in South Africa. On the other hand, our results show that causality runs from economic growth to financial development in Russia, India, and China. We explore the financial market structure and economic management arrangements of each country in order to explain the observed test results. In countries with extensive government controls over the financial sector, economic growth is more likely to drive to financial sector development. On the other hand, in open market economies with developed financial systems, causality is more likely to move from financial sector development to economic growth. JEL Classification: G21, G28, G32, E44 Keywords: Financial Sector; Economic Growth; BRICS.
In the introductory chapter, Kalu and Falola recount Africa’s weak position in global political a... more In the introductory chapter, Kalu and Falola recount Africa’s weak position in global political and economic spheres. They acknowledge that globalization has created enormous opportunities in the global market and created new winners, especially in the newly industrializing countries of Southeast Asia. However, Africa has been unable to reap much benefit from the expansion in global trade. This inability, so far, to play an important role in the global economy is attributed, at least in part, to weak institutions, poor governance records and lack of productive capacities in most of Africa’s states. Kalu and Falola want African leaders and policymakers to look inward and take steps towards transforming the state and its institutions to allow sustainable and inclusive growth.
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Papers by Kenneth Kalu