An Economist Traverses West Africa
Itinerary
Day 1:
Accra, Ghana
✈️ Ever realized days into travels that you were ripped off?
Often, what feels like being scammed while traveling is just information asymmetry at play — a vendor knows the local price, you don't. The “ignorance gap” makes the difference.
This travel journal explores these kinds of economic observations as I traverse Ghana🇬🇭 , Togo🇹🇬 and Benin🇧🇯.
🚕 Economics lives in taxi queues: Upon exiting the airport, I was quoted £17 to get into town. I opened Uber — £5. I showed the driver, his price dropped. Information asymmetry collapsed the moment I had a reference price — shifted bargaining power from seller to buyer.
🌿 The theory is applicable more widely. I met a researcher today using a similar price discovery logic to help Shea butter farmers here better negotiate with procurers.
Day 2:
Accra, Ghana
🏛️ What happens when two governance systems compete?
Explored Jamestown, the city's oldest neighborhood.
🚶 Our guide introduced Ghana’s two parallel governance systems. The state and a clan-based system where local kings — chiefs — hold significant political authority. Disputes between and within the community are often settled by the chiefs, not courts. Going to the official judiciary carries social stigma.
Though the courts hold ultimate authority, there’s quite a bit of tension — e.g if a federal court overrules a chief's decision, it would lack the legitimacy to enforce the ruling.
I'm rather curious as to how despite the tension, the legal pluralist system continues.
🚧 We also walked past a half-renovated market which had been paused since it was a flagship project of the previous government — the incumbents have no incentive to complete it. Reminded me of a recent Society Of Professional Economists industrial policy debate we had re autocracies being able to plan long term since they're less susceptible to the whims of election cycles.
Day 3:
Accra, Ghana
✈️ Ever realized days into travels that you were ripped off?
Often, what feels like being scammed while traveling is just information asymmetry at play — a vendor knows the local price, you don't. The “ignorance gap” makes the difference.
This travel journal explores these kinds of economic observations as I traverse Ghana🇬🇭 , Togo🇹🇬 and Benin🇧🇯.
🚕 Economics lives in taxi queues: Upon exiting the airport, I was quoted £17 to get into town. I opened Uber — £5. I showed the driver, his price dropped. Information asymmetry collapsed the moment I had a reference price — shifted bargaining power from seller to buyer.
🌿 The theory is applicable more widely. I met a researcher today using a similar price discovery logic to help Shea butter farmers here better negotiate with procurers.