Friday, August 21, 2020

Ethiopia's Proposed Dam on the Nile: Will it bring shared benefits or cause war among Ethiopia, Egypt and Sudan?

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Charvi Trivedi

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Ethiopia's Proposed Dam on the Nile: Will it bring shared benefits or cause war among Ethiopia, Egypt and Sudan?

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Global Views 360

Publication Date

August 21, 2020

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Nile River View Cairo, Egypt

Nile River View Cairo, Egypt | Source: Sherif Moharram via Unsplash

The longest river in the world, the Nile,  spans a distance of over 4000 miles, passing through large parts of Africa including Tanzania, Rwanda, Ethiopia, Sudan and Egypt, to name a few, and finally emptying into the Mediterranean Sea.

The Nile is a lifeline for Egypt, Ethiopia and Sudan, whose mutual relation took a beating when Ethiopia proposed to build the Grand Ethiopia Renaissance Dam (GERD). The proposed dam would make Ethiopia the biggest exporter of electricity in Africa and give a boost to its growing economy.

However, this project invited furious responses from Egypt as Nile is deeply connected to the history of the country since ancient times. Also about 95% of Egyptian population resides along the banks of the Nile and are heavily dependent on the river for sustaining their livelihood. Building the large reservoir will deplete the water resources of Egypt which will threaten their livelihood.

The Nile is experiencing pernicious effects of escalating population and climate change and the United Nations has projected that it is expected to cause immense water scarcity by 2025. “We’re worried. Egypt wouldn’t exist without the Nile. Our livelihood is being destroyed. God help us” says Hamed Jarallah, an Egyptian farmer.

This 5 billion-dollar project was initiated in 2011, is capable of producing a whopping 6000 megawatts of hydro power and has a reservoir capacity of 74 billion cubic metres. This dam is projected to annually contribute over a billion dollars to the Ethiopian economy. It is alleged that Ethiopia has already started filling the reservoir despite the protests from other countries.

In 2015, Ethiopia, Egypt, and Sudan signed a ‘Declaration of Principles’ which called for the equal water distribution. Despite more than five years of negotiations, these countries are still not able to reach mutually acceptable agreements. Earlier, Sudan supported Ethiopia’s dam proposal as it was promised adequate electricity at a cheaper cost. However, the failure to reach a conclusive agreement led it to oppose Ethiopian dam. Sudan has already gone ahead and notified the United Nations Security Council (UNSC), the dangers its people will face via a letter advocating them to step in.

Al-Sisi meeting President Trump | Source: The White House via Wikimedia

When Egypt made a demand for GERD to release around 40 billion cubic metres of water every year, Ethiopia denied this suggestion while Sileshi Bekele, minister for water, irrigation and energy, called the volume of water ‘inappropriate’. Finally, in 2019, Egyptian President Abdel Fattah al-Sisi turned towards U.S President Donald Trump to settle this long dispute. “The Ethiopian side does not want an agreement and has not offered an alternative” says Egyptian minister Mohamed Abdel-Ati as Ethiopia retracted from the US-led conciliation over GERD.

Secretary Pompeo Meets with Ethiopian Foreign Minister Gedu | Source: U.S. Department of State via Wikimedia

Ethiopia further provoked Egypt when Ethiopian Foreign Minister Gedu Andargachew tweeted that Ethiopia will have “all the development it wants” from the river and that the Nile is theirs. This was a strong posturing which sparked whispers of an apparent war between Egypt and Ethiopia. If it escalates into a war involving the military then Ethiopia might succumb to the powers of the Egyptian army. However, according to Sisi, military intervention is unlikely to take place as he believes negotiation is the best way to arrive at a viable agreement.

As these three countries march ahead in their task to find a middle ground, they should focus on ideas which would include potential for a ‘shared economic advantage’ and also include organizations like the World Bank which can provide financial backing for improvement purposes in such regions.

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February 4, 2021 4:52 PM

Randomised Control Trials and the Alleviation of Poverty in India

Abhijit Banerjee and Esther Duflo won the 2019 Nobel Prize in Economics for their “experimental approach in alleviating global poverty”. Their experimental approach encompassed a variety of novel methods to understand and analyse interventions and Randomised Control Trials (RCTs). Their research has been used by policy makers to make informed policy decisions to best help the marginalised.

What are RCTs?

To understand the effect of a policy, intervention, or medicine, decision makers try to measure the efficacy of the treatment. Do deworming pills given to children improve test scores? Does providing chlorinated water improve the health and economic outcomes of villages? These are some causal (read causal, i.e. caused by, not casual) questions researchers are interested in. The best way to analyse causal effects is to randomise the selection of people in the treatment and the control group (for example: children who are given deworming pills versus children who are not given the pills). This random selection of the two groups removes many statistical biases that might affect the results.

RCTs in India:

Many of the RCTs performed by Banerjee and Duflo were in India. They involved short- and long-term impact assessments of various interventions, policies, models, and treatments. We look at a few RCTs implemented in India:

Teacher absenteeism rates:

Troubled by the low attendance rates (or high absence rates) of public-school teachers in India, Duflo assessed the impact of financial incentives on the absence rates of teachers in Rajasthan. The study monitored teacher attendance by cameras, which was tied to a financial incentive if the attendance was high. From a baseline absence rate of 44%, teacher absenteeism in the treatment group fell by 21%, relative to the control group. High teacher attendance caused child test scores to improve too.

COVID-19 and health-seeking behaviour:

In the context of COVID-19, Banerjee tested the effect of sending messages via SMS that promoted health preserving behaviour. The results were very positive. By sending a short, 2.5-minute clip to 25 million randomly selected individuals in West Bengal, the intervention i) found a two-fold increase in symptom reporting to village health workers, ii) increased hand washing rates by 7%, and iii) increased mask-wearing by 2%. While mask-wearing rates increased only marginally, the spillover effects (wearing a mask stops the virus from infecting more people) were moderately high and positive.

Asset Transfers and the Notion of Poverty:

An RCT by Banerjee in West Bengal involving a productive asset transfer accompanied with training found large and persistent effects on monthly consumption and other variables. The treatment group reported 25% higher consumption levels relative to the control group, who did not receive the asset transfer and training. Implications of such RCTs are huge. The notion that the poor are lazy and unwilling to perform strenuous labour is falsified by this RCT. Often, what the poor lack are opportunities that are hard to come by, given their financial status. A small nudge, like the asset transfer, can cause large and positive effects on their well-being.  

Salt fortification to reduce anaemia:

RCTs also help rule out less cost-effective interventions. Duflo and Banerjee evaluated an RCT which distributed fortified salt in 400 villages of Bihar, to reduce the prevalence of anaemia. However, this intervention found no statistically significant impact on health outcomes like anaemia, hemoglobin, etc.  Thus, while RCTs help introduce novel methods of impacting the lives of the poor, they also help in ruling out in-effective measures. A policy maker might try other alternatives to reduce the prevalence of anaemia.

Are RCTs the gold standard?

Maybe. Extrapolating results from a regional RCT to national policies could present problems. Contextuality matters. A study that indicates positive gains for one region might present different, and rather adverse effects for another region. Nation wide effects might not be as prominent as regional results of a single RCT. The good part is that Banerjee and Duflo have a solution. Just perform more RCTs!

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