📚 This is an archive of Aid Thoughts, a development economics blog that was active from 2009 to 2017. Posts and comments are preserved in their original form.

The cost of clear skies

Looks like I picked the wrong week to quit blogging

I was walking around south London with a friend on Saturday, discussing how nice it was to have the sky devoid of airplanes on such a clear, sunny day. Then I got home and was reminded by Owen Barder that I should actually be feeling quite guilty about enjoying the lack of air transport:

This evening here in Addis Ababa I bumped into the owner of one of the big flower-exporting businesses.  He was looking pensive.  Unseasonal rain had damaged part of his crop, and now he is unable to get his roses into European markets.  A whole container had had to be destroyed because there was nowhere for them to go.  On the back of an envelope, he calculated that the blockage of rose exports is costing Ethiopia about €200k a day. This may not sound very much but it is a big chunk of the export earnings of a poor nation.
The BBC reports on a similar situation in Kenya, where the flower industry might be losing up to $2 million a day due to the crisis.
According to the Kenya Flower Council, 97% of all Kenya's flower exports are sent to the European Union. About 300 growers employ an estimated 100,000 people, with about 1.2m people deriving their livelihood from the flower export industry.

.... some staff had already been sent home until it became clear when flights would resume again.

The Kenyan flower trade was already hit quite hard by the post-election violence two years ago, when exports were reduced by a quarter due to violence disruption and a decline in tourism-driven passenger flights, which are used to ferry the flowers to the EU. If the current flight ban continues on for a few days, the potential damage to African export industries could be much greater.

So yes, feel sorry for BBC listener Mayank Sharma, who is bored of watching CNN on his hotel room television, but while the overall cost might be incurred by Europe, the severity of the crisis could be much greater down south.

Categories: Africa

3 Comments

Ranil Dissanayake · April 19, 2010 at 12:43 PM

You have to admit that a large proportion of the motivation behind this post was to use a photo from Airplane!

The Rose farms in Navaisha are spectacular, you know. They have really interesting labour practices too, though I'm not familiar with intricate details. But like some of the tea plantations in Sri Lanka, plantations have schools, hospitals, sports grounds etc. dedicated for the use of the workers. Not sure if it's in response to unions there, as it is in SL, though.

Philip · April 20, 2010 at 01:32 PM

A lesson for everyone, southern exporters, airlines and myself included, to buy insurance.

Matt · April 20, 2010 at 01:36 PM

Philip - that would seem like the most reasonable approach, but unfortunately all insurance companies consider volcanic eruptions an uninsurable risk:

http://www.economist.com/world/international/displayStory.cfm?story_id=15939414&source=features_box_main