Shining A Light On Development

africa-lights

Keating relays a study that uses nighttime satellite photography to illustrate economic changes over time:

In a recent NBER working paper (summary here), Maxim Pinkovskiy of the Federal Reserve Bank of New York and Xavier Sal-i-Martin of Columbia University used luminosity as measured by NOAA weather sattelites as an “independent measurement of true income.”

The comparison above shows a decade of change in sub-Saharan Africa. Angola (the third country from the bottom on the west coast) has many more lights in 2009 than in 2000, as you might expect from a country whose GDP per capita has nearly doubled. Zimbabwe, on the other hand, “has fewer lights, because of its economic collapse under the disastrous hyperinflationary policies of Robert Mugabe.”