After Completing These Readings, Are You More or Less Optimistic About the Future of Africa? Why?

After completing these readings, are you more or less optimistic about the future of Africa? Why?

Most of the African countries are in a phase of slow transition. The prolonged effect of African slaver trade, internal civil wars and the influence of powerful international organizations have affected the growth of these countries. Although the emphasis is primarily on Africa's exploitation by outsiders, the local loot cannot to forgotten.

The IMF on examining the national accounts of Angola, reported that between 2007 and 2010, a sum of $32B had gone missing. This massive misappropriation of national funds by the government is a clear example of current state of the African countries. Even after identifying the irregularity in accounts, neither IMF nor other western countries have made efforts to rectify it. I definitely would argue that, the western countries’ interest in the continents abundant supply of minerals and oil makes them remain mute over the issues that arise in the countries they operate in.

Very little of the $333B from the export of minerals and oils in Africa reaches the right account. The slim margins in the sale is a result of the sheer pressure of the financial institutions, led by World bank and IFC, which pressurize poor countries by warning them of dire consequence for non cooperation. A classic example of is the export of copper in Zambia. Even though the country is the largest producer of copper in the world, only 2.4% of its $10B export is from copper trade.

It is hard to discount China’s relatively recent entry and interest in the African continent. On the outset, China directly competing with the West looked a fine prospect for the poor African countries, but on the downside China has operated only in countries having sharp credit crunches. While securing credits governments have not received from IMF or World Bank in a long time, the economic thought of the government lost while borrowing from Chinese organizations. Chinese organizations have used this condition of these countries in their favor. Even the hiring of local labor doesn’t happen with the Chinese companies that establish in Africa. This hinders the transfer of knowledge and skill which are the extremely important for the growth of a nation.

There is a common thought that foreign investment improves the economy of the country. But this is extremely sinusoidal in Africa’s case. A number of companies setting up operations and bases in African countries have only fueled the fire. A classic example is the state of affairs in Congo and the operation of Bralima -  a Heineken subsidiary. After setting their foot in 1960s, the beer brewer has amassed 60% of the countries’ market share. Such wide spread operation hinders the prospect of the country in a rather strange way. M23 -  a sanctioned organization receives at least a million dollar every year from the Brewer as fees for passing roadblocks. In a country where the average income is just over a dollar and AK-47s cost just $50, it is worrisome to imagine $1M in the wrong hands. Thus, International Organizations eyeing only their profits, discounting the ethics and prosperity of the nation, only make the situation worse.