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Old 10-04-2015, 11:57 PM
 
513 posts, read 378,752 times
Reputation: 444

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I just wanted to see what African people here think of economics. It seems to me obvious that the wealth of nations has not entered in a substantive way in Africa. Much due to colonialism, but also due to domestic policy. Pushing forward, what is your view on ideas about economics? I will list some as a person who believes very strongly in economics and its benefits to society.

1. Trade - What do you think of free trade? Do you believe in free trade? What limits do you believe should be set on trade if any?

2. Private property rights - What is your opinion on private property? Where would you draw a line in terms of private property and why?

3. Regulations - What aspects of society need help or protection? Social safety nets? Environment? Certain types of industries? Why?

4. Sound money - What do you believe about money? This is a contentious area for economics. How would you ensure sound money for the people? A commodity backed currency? Small inflation/deflation controlled by a central bank? Peg your currency to a dominant one (Like China)

This is a list put out by Heritage foundation on freedom in the different countries.

Index of Economic Freedom: Promoting Economic Opportunity and Prosperity by Country

As you can tell, many African nations are in the lower quartiles. Do you think this is coincidence? Something else is a driver for the problems.

I like how they define what we mean when we say economic freedom.

1. Rule of Law
2. Limited Government
3. Regulatory Efficiency
4. Open Markets

I generally will agree with them on many points. (I might disagree on a few such as the validity of environmental regulations) But there is far more agreement than not.

I obviously believe that these principles are true and effective and would help any country (or continent such as Africa) grow and be successful. So go ahead, I hope to get some discussion out of this.
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Old 10-06-2015, 02:51 PM
 
45 posts, read 99,324 times
Reputation: 57
Good questions.

1. Trade - I think Free trade overall isn't that good for developing countries, i said overall and not every country. China has done well in that area, but it's because they had decent infrastructure to do that in the 1980's. Most African countries don't have that infrastructure so they are already in a disadvantageous position. On top of that, Africa doesn't have big business, so they lose out to foreign companies in their own markets before they even can flourish. South-Africa is a exception, but that's because the big business there is owned by south-african whites who had time to flourish. In the 60's Africa could feed itself, but then they openen up their markets and they lost out. Now they import expensive food imports from outside while they have the land to do just that. Second is foreign banks make most revenues in African countries who openend up to them instead of domestic owned banks. Sure they may choose a african individual as ceo, but it's about who OWN the banks. I believe Free trade isn't good for Africa because Africa is in a vulnerable position and they have to develop their domestic industries before opening up to foreign competition.

2. Water can't be privitizated because it's essential, private companies can't withold water or raise the prices to unacceptable levels. If it doesn't seriously endanger the citizens or environment then it's good to have a clear private property law regarding to land ownership etc.

3. I would subsidize the mining industry so they could bring the cost of raw material down, which in turn help companies overall but especially the manufacturing industry. They would be able to bring cheaper goods on the market so they could conquer foreign markets, much like China is doing with rare earth mineral monopoly right now. Second i would focus to the most vulnerable in society, especially those affected with HIV/AIDS and Malaria. I would make a fund which will be fundend by taxes, this fund would provide malaria nets and subsidize medicine for malaria, and also raise awareness for HIV/AIDS and Malaria and how to avoid it. Condoms would be at a minimal cost or even free for youngsters to encourage safe sex. The impact it would have is less sick people, means more active people to work and more revenue. A universal healtcare system is needed and people starting from 18 would need to pay a certain fee, those who earn more have to pay a bit more than those who don't.


4. It dependens on the stage of the economy, if it's low per capita, maybe peg it just like China to a stronger currency. Or more favorably is that the currency would be pegged by a commodity mostly owned by the certain country, if you supply the lion share of a certain currency, it's worth while to back your currency in that commodity. If your country supplied 70% of the world platinum which is needed to produce much of the worlds motor vechiles amongst others you should be confident to peg your currency to platinum.

Quote:
Originally Posted by Logicist027 View Post
I just wanted to see what African people here think of economics. It seems to me obvious that the wealth of nations has not entered in a substantive way in Africa. Much due to colonialism, but also due to domestic policy. Pushing forward, what is your view on ideas about economics? I will list some as a person who believes very strongly in economics and its benefits to society. I will also digitalize acces to money 24 seven, which is not always the case in most of Africa. Just pay via internet instead of going to the bank, such services would boost the economy.

1. Trade - What do you think of free trade? Do you believe in free trade? What limits do you believe should be set on trade if any?

2. Private property rights - What is your opinion on private property? Where would you draw a line in terms of private property and why?

3. Regulations - What aspects of society need help or protection? Social safety nets? Environment? Certain types of industries? Why?

4. Sound money - What do you believe about money? This is a contentious area for economics. How would you ensure sound money for the people? A commodity backed currency? Small inflation/deflation controlled by a central bank? Peg your currency to a dominant one (Like China)

This is a list put out by Heritage foundation on freedom in the different countries.

Index of Economic Freedom: Promoting Economic Opportunity and Prosperity by Country

As you can tell, many African nations are in the lower quartiles. Do you think this is coincidence? Something else is a driver for the problems.

I like how they define what we mean when we say economic freedom.

1. Rule of Law
2. Limited Government
3. Regulatory Efficiency
4. Open Markets

I generally will agree with them on many points. (I might disagree on a few such as the validity of environmental regulations) But there is far more agreement than not.

I obviously believe that these principles are true and effective and would help any country (or continent such as Africa) grow and be successful. So go ahead, I hope to get some discussion out of this.
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Old 10-06-2015, 10:24 PM
 
6,573 posts, read 9,094,271 times
Reputation: 2847
I'd like to see African governments remove the red tape and bad regulations that are hampering economic development on the continent in relation to intra-African trade.

Red tape and trade barriers costing Africa billions | International Centre for Trade and Sustainable Development



Some parts of east Africa are making progress in this area.

East Africa: Intra-African Trade Rises As Market Access Between Blocs Improves - allAfrica.com
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Old 10-07-2015, 01:58 PM
 
6,573 posts, read 9,094,271 times
Reputation: 2847
Quote:
Originally Posted by Beautymustbeseen View Post


Most African countries don't have that infrastructure so they are already in a disadvantageous position.
What's keeping African governments from improving the infrastructure of their countries especially those with valuable natural resources?
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