Behavioural Economics

is a new(ish) analysis model that uses our much developed knowledge of psychology and human behaviour to explain and predict human decision-making in an economic context. It is also in my opinion, the single most efficient method of economic analysis on the African Sub-Continent.

Sub-Saharan Africa...for dummies :)

The basic premise - apologies if you already know this - is that people are not endowed with the capacity to efficiently and effectively acquire and process information. This is because humans, to paraphrase one Morris Altman, are boundedly rational, which is to say they do the best they can - given the constraints they face. In Africa as I'm sure you can imagine, there are many constraints that affect the decision-making process.

Dr Africa or: How they learned to become so boundedly rational?

1. Transcontinental Education Failure

• African countries make up 18 of the bottom 20 UNESCO 2015 countries in which literacy was reported, which war torn Afghanistan and Pakistan making up the deficit. FYI my beloved Zambia came in at 23rd from the bottom.
  
  The privileged few to have uniforms, blackboards and a roof over their heads.

1. Poor Quality of Life

• African countries make up...wait for it... 18 of the bottom 20 countries in the Inequality- Adjusted Human Development Index which represents global averages of human development in three dimensions: a long and healthy life, knowledge and a decent standard of living and is then 'discounted' by how those achievements are distributed across a country according to inequality.
  
  Rampant poverty whilst leaders live in houses like this:
  
  Jacob Zuma

Edgar Lungu

Robert Mugabe

1. Religion/Traditional Beliefs

• Die hard old school religious beliefs, fueled by hate mongering American preachers like Scott Lively have created a culture of intolerance - where traditional medicines lead to the killing of albinos for muti (traditional medicines made with body parts). Homosexuality is illegal in 98% of African states and often carries with it penalties of death or incarceration.
  

So with this undisputable bounded rationality, how can these problems be improved? I shall elaborate in my next post!