The Changing State of Africa

This article centers on what I have talked about previously--the changing face of Africa and the development of its economy. However, there are some new and interesting ideas in this article that I would like to point out:

1. It talks about how rising commodity prices "bolster Africa's economy prospects." Sure, in the short-term rising commodity prices will boost Africa's economy, but commodity prices will not continue to rise for ever. If the resource-rich African countries  fail to ground their economies in good governance, leading to a wise fiscal policy and solid social safety-nets, then their economies will continue to be volatile; they will never achieve sustainable economic growth do to the booms and busts of commodity prices.

2. The article continues to discuss the fact that many countries, especially China, are "seeking to cash in on Africa's commodity bonanza." These foreign investments add to Africa's booming economy, but as soon as commodity prices begin their downward decent, foreign investors will turn and run. Thus, if Africa does not reform the structure of its government and economy, its economy will fall hard. The article mentions that according to the African Economic Outlook, "Africa needs a clear engagement strategy" when dealing with these foreign investors.

3. One very interesting point the article makes is the Chinese perspective on development. They believe that "new states need to build buildings and dignity, not simply strive to end poverty." In accordance with this strategy, they are investing in infrastructure, especailly along the coast of Africa. But isn't it better for long-term economic growth if Africa itself invested in its own infrastructure? This would definitely lead to less exploitation by employing African workers and African materials. Groups such as NEPAD, a program of the African Union, believe in this principle. NEPAD encourages African self-reliance by spearheading coordination between African countries to eradicate poverty and increase the standard of living.

4. The article remarks that Africa has a "youth bulge" in that it has the youngest population in the world. Unfortunately, Africa cannot fully take advantage of this valuable resource because it has "jobless economic growth." This phenomenon occurs due to Africa's resource curse and the foreign investors that I discussed in #3. Programs such as Aid for Trade, proposed during the currently-stalled Doha Round, may help create jobs by eliminating problems in the supply-side of Africa's exports.

5. Finally, the article mentions that better education, more government transparency, increased urbanization, a more favorable business climate, less corruption, and increased peace are all necessary for sustainable growth in Africa.