Psychology, Economic Policy Design, and Implementation: Contributing to the Understanding of Economic Policy Failures in Africa

Abstract

When designing economic policies, policy makers work with the assumption that targeted beneficiaries would respond in a manner that would lead to success of the policy. However, the responses of beneficiaries do not always follow the expected pattern. Drawing on Thaler and Sunstein’s (2008) and Asante’s (2003) theses, this paper projects the view that economic policies that fail to take account of the psychology of the target people fail. The position in this paper is based on the premises that human beings, as choice architects, are not necessarily rational beings always acting in their self-interests and that culture, traditions, and national aspirations influence the success of economic policies. It is argued that inertia (the unwillingness to move or change the status quo) is related to how individuals living in poverty respond to policies intended to alleviate their conditions. New theoretical insights are advanced and recommendations made on the basis of the exploration of the literature.

Psychological literacy: proceed with caution, construction ahead

“… 16 Just as there has been concern with politicians’ lack of scientific literacy, 17 concern has been expressed regarding their lack of psychological literacy. 18 , 19 O’Hara 20 notes the lack of psychological literacy demonstrated by reporters commenting on issues such as terrorism. Inaccurate and misguided psychological knowledge may be worse than a lack of psychological literacy.…”

Raising a new generation in a postcolonial era through decolonised early childhood development and care services

“…Given that formal colonisation ended approximately 50 years ago in most parts of Africa, why is metacolonialism possible? Oppong (2014) demonstrates the intergenerationality of the learned helplessness associated with colonisation through the socialisation process. In development economics, Acemoglu et al have accumulated empirical evidence in support of the persistence of colonial institutions into the postcolonial era, which has an impact on the economic performance of formerly colonised persons (Acemoglu et al, 2001; Acemoglu and Robinson, 2006, 2008).…”

“…A more recent study shows that colonial institutional persistence continues to influence health disparities in Africa (Brown, 2018). When the evidence of institutional persistence from development economics (Acemoglu et al, 2001; Acemoglu and Robinson, 2006, 2008; Brown, 2018) is integrated with psychological studies about the long-lasting effects of early childhood experiences (Bandura, 1994, 1997; Bandura et al, 2001; Boydell et al, 2017; Goodman et al, 2015; McDougall and Vaillancourt, 2015; Nelson, 2012; Orth, 2018) and the intergenerationality of adverse experiences during colonisation (Bulhan, 2015; Oppong, 2014, 2019), it becomes clearer that early childhood education and care is one of the agents, amongst others, that can counter metacolonialism. It is particularly useful to think of the fact that positive childhood experiences result in positive self-perceptions and self-awareness (Bandura, 1994, 1997; Bandura et al, 2001; Orth, 2018), and these positive self-perceptions and awareness contribute to improvements in life outcomes, including socio-economic improvements (Bandura, 1994, 1997; Bandura et al, 2001; Goodman et al, 2015).…”

Locus of control and culture of poverty. An appraisal of Lawrence M. Mead’s ideas in ‘Culture and Poverty’

“…However, Ross shows that the locus of control has ancestral roots such that ancestral control over subsistence (dependence on agriculture for subsistence and more variable inter-annual rainfall) results in external locus of control (Ross, 2018). This further suggests that locus of control correlates with learned helplessness -the belief that one's actions will not matter even in situations when one's actions can change life outcomes (Oppong, 2014).…”

“…In effect, locus of control forms during early childhood and persists throughout the life course of an individual and that the immediate family environment (including poverty and parental locus of control) influences the development of a child's locus of control. Thus, there is no doubt that there is intergeneration transmission of such self-perceptions from parents to children (Oppong, 2014;Ross, 2018). However, Ross shows that the locus of control has ancestral roots such that ancestral control over subsistence (dependence on agriculture for subsistence and more variable inter-annual rainfall) results in external locus of control (Ross, 2018).…”