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I thought this brought some clarity on the role of subsidies.
Quote:
BILL MOYERS: How do farm subsidies and manufacturing subsidies in the West hurt Africans?
GEORGE AYITTEY: Well, the farm subsidy issue is really peripheral to the fundamental cause of African poverty. Farm subsidies, you know, take cotton, sugar, tobacco, for example. They affect only a few African exports, cotton exports from Mali, Niger, Senegal and say Nigeria for example. Now, tobacco subsidies don’t affect African tobacco. Look at Zimbabwe. The tobacco industry in Zimbabwe has totally collapsed, not because of U.S. subsidies. And there aren’t any trade barriers against Nigerian oil. There are no trade barriers against African mineral exports. There are no trade barriers against gold, diamonds, et cetera, et cetera. So, see again, the subsidies have been utilized by Africa leaders in order to divert attention from their own economic mismanagement...
I'am of the general belief that post colonial Africa has been hurt more by the political and economic approaches taken by its post colonial leaders.
Too many chosed economic systems such as state socialism or some form of heavy gov't control of the economy along with autocratic rule. This has shown itself to not be the best way to run and manage a newly independent developing country. In order for countries to develop it will require some form of democracy and some brand of capitalism. Botswana's post colonial leaders chosed a democratic system of governing that has influences from their traditional sytem of governing called Kgotla and they didn't reject capitalism. Mali is another African country that has found an approach to democracy that seems to be working for them.
So once more African leaders start adopting democratic reforms and market reforms then you will see more African countries improve and move themselves out of poverty. This is why I hope more African leaders will start learning from Botswana's and Mali's example.
Ok... I think many people, especially Africans know that there own leaders have more than often not looked out for their people's interests.
With regard to subsidies:
the only issue is that resource industries tend to employ fewer people. Agricultural and manufacturing empoy more people and help to build the middle class, which historically has been the predecessor of fair and just governments.
However, a leading issue is the infrastructure of the countries and health of the population due to lack of simple neccessities (hygeine, water, nutrition, etc...). Again, it is rare for a decent political system to grow up before these are at least somewhat developed, rather than lead to them.
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