Monday, November 28, 2011

Africa Unleashed

I don't remember if I posted this awhile back. It's from Foreign policy magazine.

What is less well known is that Africa's prospects have changed radically over the past decade or so. Across the continent, economic growth rates (in per capita terms) have been positive since the late 1990s. And it is not just the economy that has seen rapid improvement: in the 1990s, the majority of African countries held multiparty elections for the first time since the heady postindependence 1960s, and the extent of civic and media freedom on the continent today is unprecedented. Even though Africa's economic growth rates still fall far short of Asia's stratospheric levels, the steady progress that most African countries have experienced has come as welcome news after decades of despair. But that progress raises a critical question: what happened?...

long article explains what happened.

In Radelet's view, five main factors have conspired to turn Africa around. Expanding democratization has opened up governments, bolstering popular accountability. Improved economic policies have curbed the worst tax and regulatory policies that had plagued African households and investors. Debt reduction has freed up resources for education and health care. New technologies (most notably the ubiquitous cell phone) have boosted Africans' access to markets. And the rise of a new generation of energetic leaders, the so-called cheetah generation (in the evocative terminology of the Ghanaian scholar George Ayittey), has brought new ideas and attitudes to the fore.

and presumably China has a role in the upswing of capitalism..

from "Making it" magazine: the investments are small but growing.

but so far, China is importing raw material and exporting manufactured goods....

Saturday, November 19, 2011

Stystem D: Entrepeneurs in Africa

ForeignPolicy magazine has an interesting article about how small entrepeneurs get around a lot of regulations and improve the lot of people.

The growth of System D presents a series of challenges to the norms of economics, business, and governance -- for it has traditionally existed outside the framework of trade agreements, labor laws, copyright protections, product safety regulations, antipollution legislation, and a host of other political, social, and environmental policies. Yet there's plenty that's positive, too. In Africa, many cities -- Lagos, Nigeria, is a good example -- have been propelled into the modern era through System D, because legal businesses don't find enough profit in bringing cutting- edge products to the third world. China has, in part, become the world's manufacturing and trading center because it has been willing to engage System D trade.

In the US, this used to be the way to make jobs, but the government, in it's search to regulate everything, is busy destroying the small business owner.
Free hit counters
Free hit counters