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Why can't more African gov'ts see that their excessive red tape isn't helping to improve development on the continent?
Quote:
"Much more than corruption, it is the stifling red tape in Africa that is inhibiting trade," Mr Wiese said.
In a report examining the barriers that curb cross-border trade on the continent‚ the World Bank said Africa’s largest retailer, Shoprite, spends a hefty $20‚000 (about R220,000) a week on import permits to truck meat‚ milk and other goods to its stores in Zambia alone...
I once heard Dambisa Moyo,who has been critical of aid,point out that one big reason you see these bad domestic economic policies across the continent is that with too many African gov'ts being dependent on foreign aid money they have no incentives to adopt better economic policies that will help to develop the private sector in their country. So maybe some changes in how aid money is given out could lead to African gov'ts adopting better economic policies for their countries.
What do you mean over regulate? Like on the government scale or local scale, (I know you say government but can you clarify a little) in the U.S besides flea markets the price of everything in set, In Africa you can bargain literally anything and get lower prices if your good, of course this is an exception in malls and out of country stores etc.
African politics at independence were very left leaning as a simple knee jerk reaction of opposing the more liberal economic policies of colonial powers. Even in countries which went through years or series of apolitical dictators their governments were often staffed by bureaucrats trained the Soviet Union, China, Cuba, and other communist states.
Their problem now is the same Russia faces. Eastern Europe had a reflexive move to freer markets almost immediately after the fall of the Soviet Union as leftist policies were seen as an outside imposition. Russia and many African nations will not have this visceral reaction as it is something they have imposed on themselves.
What do you mean over regulate? Like on the government scale or local scale, (I know you say government but can you clarify a little) in the U.S besides flea markets the price of everything in set, In Africa you can bargain literally anything and get lower prices if your good, of course this is an exception in malls and out of country stores etc.
I'm referring more to how African gov'ts affect the ease of doing business around the continent. Like my example talks about how certain polices hamper trade on the continent.
Another example:
" This helps to explain why doing business across much of Africa is a nightmare. In Cameroon, it takes a potential investor around 426 days to perform 15 procedures to gain a business license. What entrepreneur wants to spend 119 days filling out forms to start a business in Angola? He's much more likely to consider the U.S. (40 days and 19 procedures) or South Korea (17 days and 10 procedures). "
The more layers of bureaucracy the more hands can reach into the deal and skim for themselves, hurting everyone else who many have benefited from the business opening up faster and with more cash to directly invest in itself.
Just to clarify a little more. My examples of gov't over regulation with African governments is more about the excessive paperwork involved in starting businesses and engaging in trade across borders on the continent.
Because regulation is the only way you can stop free market capitalism from taking all the wealth for themselves and investing it in rich countries.
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