The development bogeyman? Understanding the role of middlemen

What happens from the moment goods are manufactured or harvested, until they are bought by consumers? As we know from experience, most of the things we consume reach us having been bought and sold, sometimes many times, by intermediaries – most of us don’t order a phone from the factory. Many interventions designed to increase the welfare of consumers in developing economies are designed to shorten these supply chains by cutting out those traders in the middle. But what happens when you do that in the real world? 

Meredith Startz of Dartmouth College tells Tim Phillips why the story of what intermediaries deliver, and even their effect on the prices consumers pay, is more nuanced than our economic models often suggest.