Book Review (2/26): How Africa Works by Joe Studwell

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Book Review (2/26): How Africa Works by Joe Studwell<br>On the past and future of African growth and development

Ken Opalo<br>Jun 12, 2026<br>∙ Paid

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I: What African policymakers need to know about the origins of modern economic growth

Modern economic growth is a relatively recent phenomenon. Before the modern era, there was, relatively speaking, a lot less variation around the world in individual-level measures of development outcomes. The average person was illiterate, lived a life characterized by poverty, scarcely had any material possessions, and died young. As late as 1900 about 40% of all children born died before they turned five.<br>Then over a few decades in the 18th century something clicked in northwestern Europe and unleashed what we understand today as sustained modern economic growth and the extension of mass prosperity.

Source: Our World in Data<br>Well, that is one version of the story; and one that admittedly compresses economic history across space and time.<br>There’s another version of the story that is more variegated. In this rendering, modern economic growth did not just spring out of nowhere. Instead, it was the culmination of centuries of cumulative marginal improvements (in trade, finance, law, politics, governance, engineering, science, etc) that eventually came together and ignited the commercial and then industrial revolutions that we are now familiar with. Notably, these societies developed cultures of growth and progress that sustained these processes over centuries.

Trends in per capita income over two centuries. Source: Our World in Data<br>Stated differently, societies that were able to quickly adopt and domesticate the organizational forms (especially polities, firms, and family units), technologies (with emphasis on scientific mastery of the physical world), and human habits (in personal, professional, and civic life) that are necessary to sustain modern economic growth and development were decidedly different from those that did not. With this in mind, to understand contemporary variation in the distribution of national incomes one must first understand (1) the origins of modern economic divergence over centuries; and (2) why certain countries or regions of the world have failed to engineer quick catch-up growth since the advent of modern economic growth.<br>And what were those differences that produced divergence? There are countless bad explanations out there of economic divergence over the last 500 years — ranging from hand-wavy essentialist takes on identity and culture, to heroic extrapolations across entire regions based on well-identified but narrow social scientific studies. There are also some very good academic debates on the topic — especially among works that explore the divergence between China, the Muslim world, and Western Europe (see here, here, here, here, here, and here, for example).<br>For policymakers interested in a practical understanding of the origins of modern economic growth, I’d advise them to rely on established patterns within literatures (as opposed to individual studies); take real histories of real places seriously; and to privilege parsimony over ornate stories that are little more than descriptions of symptoms and not fundamental causes of economic divergence across time and space.<br>This leads me to two factors that policymakers (as opposed to academics) should consider to be important for catalyzing and sustaining modern economic growth: stateness and elite hegemony (these should broadly be viewed as necessary but not sufficient conditions).<br>Centralized polities created the possibility of organizing (competitive) commerce at scale within and across well-defined territories. They provided security and other important public goods necessary for commercial flourishing, allocated and protected property rights, facilitated the scaling up of individual-level innovations, and through competition with other states provided strong incentives for economies to stay competitive and at the cutting edge of emerging innovations (i.e., stateness facilitated catch-up development). And following the advent of the modern era, states also became important vessels of national politics and policies — especially social policies that massively upgraded the quality of human capital. This, in turn, enabled both voluntary (e.g., stable wage labor) and coerced (e.g., taxation) redistribution of the benefits of commerce at scale — thereby enabling mass prosperity in a select set of prosperous polities.<br>Of course, stateness also facilitated the pillaging of less powerful states and peoples...