Why do the poor in Africa suffer so terribly from drought and other natural disasters? Is this simply bad luck, or perhaps bad decision-making? .. Or does economics have something to say about the key issues at play here and moreover, can economists suggest creative solutions to these problems? Stefan Dercon, Professor of Development Economics at Oxford University, UK, is well equipped to answer these questions. His research has principally been on Ethiopia, and more specifically, credit, risk and insurance markets for farmers there. I began our interview by asking Professor Dercon what economic life looks like for a typical Ethiopian farmer.
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