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Measures taken to curtail the spread of COVID-19 have led to a sharp contraction of the global economy and an even larger decline in trade, with significant implications on the livelihoods of people in Africa. Despite the relatively low number of cases, the region's economy would be hard hit due to its high reliance on trade, heavy dependence on commodities, a fragile food system, and limited fiscal capacity to respond. This reinforces the region's inherent vulnerabilities, posing risks of wiping out the gains made in poverty reduction. Countries that have been registering robust growth face rapid growth declines. The response calls for a regional and global coordination to scale up safety nets, facilitate flow of essential goods and ease the region's debt burden to free some fiscal space. There is a need for active policies to support enterprises so that disruptions are not permanent. As they chart their operations beyond the pandemic, countries should reexamine their industrial policies and firms need to rethink their strategies to address emerging uncertainties.

Business Cycles and Stabilization Policies --- Commodity Prices --- Coronavirus --- Covid-19 --- Economic Growth --- Garment Industry --- Macroeconomics and Economic Growth --- Trade --- Trade Facilitation --- Trade Policy

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This study aims to draw key lessons for the African Continental Free Trade Area using evidence from within the region. Although drawing lessons from the rest of the world is essential, given the unique features of economies in the Africa region, the most relevant lessons can be drawn from the experiences of regional economic communities in the continent. The study draws on the eight regional economic communities that have been recognized by the African Union as pillars on which the continent will rely to implement the African Continental Free Trade Area. The study evaluates the trade creation and trade diversion impacts of each of the eight RECs and examines their performance with the goal of drawing lessons and identifying challenges for the success of the African Continental Free Trade Area. Despite significant heterogeneities, there is more trade creation than trade diversion and a generally positive impact on trade within the regional economic communities. Two regional economic communities in particular-the East African Community and the Southern African Development Community-outperform all the other regional economic communities in terms of boosting intra-regional economic community trade. This is mainly associated with the high level of investment in trade facilitation, the level of synergy between national and regional goals, the density of economic activity, and the advancement in the quantity and quality of regional infrastructure. There are also many challenges that policy makers should address to realize the objectives of the African Continental Free Trade Area and transform the continent. Learning from the regional economic communities is central. But, given the scope of the African Continental Free Trade Area, there is also a need to examine the transition from regional economic communities to the African Continental Free Trade Area, which is expected to be a sticky transition.

African Continental Free Trade Area --- Customs Union --- Free Trade --- Free Trade Area --- International Economics and Trade --- International Trade and Trade Rules --- Regional Economic Community --- Regional Trade Agreement --- Rules of Origin --- Trade and Regional Integration --- Trade Creation --- Trade Diversion --- Trade Liberalization

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This study examines the relationship between food insecurity and trust using the 2014-17 waves of the Gallup World Poll and the Food and Agriculture Organization's Food Insecurity Experience Scale. Trust improves public institutions, social capital, public health interventions, and economic development. Vertical trust is represented as an index of trust in national institutions, while horizontal trust is represented as a measure of trust in friends and family. The findings show that food insecurity is associated with a decrease in both measures of trust. The study further document heterogeneous effects of food insecurity across economic development rankings. The results suggest a need for governments to increase food security to bolster public trust, strengthen the social contract, and enhance the effectiveness of development efforts.

Food supply.

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International economic relations. --- International economic relations --- Mathematical models.

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This paper investigates whether enhanced access to mobile communications, including internet, primarily through smart phones, increases competition as price information is more widely available to customers-both households and firms. The exogenous shock to identify these impacts is the transition from 2G to the 3G broadband network standard in 2008, and the induced changes in the geographic variation across districts of data plan availability for households. The operational mechanism is that better household and firm telecommunications access can close information asymmetry gaps between buyers and sellers, with increased competition leading to improved firm performance. Lower markups and reduced price dispersion can result from better incentives for firms to preserve and grow market share. And as price competition squeezes profit margins, there are more incentives for firms to reduce costs-inducing higher total factor productivity growth. Improved firm performance can generate jobs and economic transformation. Indeed, faster productivity growth, due to enhanced access for buyers to mobile telecommunications, can translate into higher formal employment and wages. One open question is whether the potential competition, driven by the increased mobile telecommunications access of buyers, which help them have the best alternative prices at their fingertips, will also impact export-oriented companies. The prior is that the firm performance improvement effect would be more salient for firms mostly focused on local markets. The primary data sources are manufacturing firm census data and household expenditure survey data across woredas (districts or counties) in Ethiopia. First, the paper investigates the relation between expanded access with the 3G network to price information through mobile phones (measured at the woreda level as share of households with substantive expenditure to access data through smartphones) and firm performance measures (markups, total factor productivity, labor productivity, wage growth, wage gaps and employment growth.), across districts with different shares of mobile telecommunication and data plan penetration subscription. The paper estimates models with difference-in-differences and triple differences. The evidence is consistent with competition intensification after the improvement in access to mobile communication due to the 3G network rollout. In particular, markups were reduced and there was higher growth in productivity, wages, and employment.

3G Broadband --- Employment --- Firm Performance --- Information and Communication Technologies --- Information Asymmetry --- Information Technology --- Internet Access --- Labor Markets --- Private Sector Development --- Private Sector Economics --- Productivity --- Social Protections and Labor