Alcohol abuse is very prevalent in Sub-Saharan Africa. The problem is especially acute in rural areas, where consumption of informally produced liquor is common. High alcohol consumption not only has negative health impacts, but can impede economic development by depressing productivity and causing suboptimal allocation of household capital. This talk will discuss the outcomes of a randomized control trial implemented in 2021 among smallholder farmers in villages of western Kenya that used an intensive counseling program together with nurse visits to decrease alcohol consumption. A 16 month follow-up found the program decreased the likelihood of heavy drinking by men in the sample by 19 percentage points compared to a control group. Moreover, agricultural outcomes improved among those in the treatment, with annual harvest values increasing by 38% compared to households in the control. Potential reasons for the improved agricultural outcomes include a reallocation of spending from alcohol to fertilizer, an improvement in self-control and household relationships, withdrawal medication, and information sharing among peers in the treatment group. The study illustrates that widespread use of addictive substances can impose a constraint on economic development and illustrates psychological interventions as a potential pathway towards its alleviation.

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