Wednesday, February 14, 2018

Africa showing the way.

"The African Development Bank (AfDB) has just published its African Economic Outlook for 2018," wrote Prof K Basu. "According to the AfDB report, Africa's 54 economies grew by 2.2% in 2016, on average, and 3.6% in 2017. In 2018, the AfDB predicts, average growth will accelerate to 4.1%, while the World Bank expects Ghana to grow by 8.3%, Ethiopia by 8.2%, and Senegal by 6.9%, placing these countries among the fastest-growing economies. And these figures are not wishful thinking: in 2016, Ethiopia's economy grew by 7.6%." Africa has enormous amounts of resources and has been afflicted by 'resource curse', as they have been exploited by rich western nations. African countries suffered from the Gatt deal which lowered prices of commodities, the main exports of African countries, while avaricious western countries tried to patent natural plant life. They learnt. African nations showed their strength by walking out of the Cancun round of WTO talks. But rich countries do not give up. In 2016, African nations refused to discuss rules for e-commerce. Rich nations want no customs duty on digital business and no need for technology transfer or local barriers. Which meant that they wanted their companies to conduct business without the need for paying any taxes. For those of us who are not Africans the continent is synonymous with brutal dictators like Idi Amin, Mobutu Sese Seko and Robert Mugabe. Even today Burundi President Nkurunziza ignored constitutional requirement to stand down after 2 terms, won a third term by vote rigging and is now holding on to power through violence. But, democracy is gradually coming to many countries, with Nelson Mandela an example to the whole world. Three months back Robert Mugabe of Zimbabwe was forced to resign peacefully after 37 years in power, often through extreme violence, as in the Gukurahundi massacres that killed 20,000 civilians. Yesterday President Jacob Zuma of South Africa was forced to resign his post following allegations of corruption. He fought against apartheid and was imprisoned at the Robben Island prison for 10 years along with Mandela. Perhaps Zuma was undone by his friendship with the Gupta brothers who are accused of 'state capture' because of the way they took over various businesses in South Africa. They were following the way business is done in India by bribing politicians and civil servants. The list of scams in India is long and expensive. But, politicians in India seldom go to prison. South Africa and Zimbabwe are showing the way. No wonder Africa is growing.

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