Helpless and Hopeless or a Rainbow with a Pot of Gold at the End? | Alrroya

Helpless and Hopeless or a Rainbow with a Pot of Gold at the End?

Saturday, 19 June 2010  at  16:21, By Walt Schubert, Professor of Finance at La Salle University in Philadelphia

Helpless and Hopeless or a Rainbow with a Pot of Gold at the End?
Paul Theroux’s book Dark Star Safari cast a depressing net on modern Africa. Mr. Theroux was an American Peace Core volunteer as a youth and returned at 60 to travel Africa overland from Cairo to Cape Town. His experience while rich and laced with occasionally wonderful moments, showed an Africa even worse off than it was in Mr. Theroux’s youth. Paul Theroux does not stand alone in that sad view of Africa. There is a sense that Africa has become the lost continent.

As the World Cup is played in South Africa, the world will get an opportunity to see a part of the continent and perhaps to get excited about its possibilities. Let us hope so.

The problems of Africa are immense. Besides a poverty of income, there exist the issues of racism, corrupt government officials, crime, and poor education and health care. In almost every aspect of societal and economic life Africa generally appears to fall short.

The solution ultimately needs to be an African solution. Western, Gulf, and Eastern ideas and models can all be helpful, but Africa needs to build her own solution.

However, having said that there are some universal suggestions that I think will work wonders for Africa. The most important point is to look forward. New ideas and the youth of Africa are the key to success. Racial and ethnic prejudices are always caused by looking at the past. It will do Africa’s future no good to harbor such resentments. Be proud and happy to be African. Next, have a plan for the future and work the plan. Ageless behavior and tools are of course necessary. Reduce corruption, build infrastructure both social and economic, and create ideas unique to Africa but of value to the world.

Governments in Africa are generally crucial sources of capital. The relatively scarce capital needs to be spent in productivity enhancing ways. Better roads, harbors, railroads, education, clean water, and overall healthcare must all become social causes. Not only can government help by spending in such areas, but by creating the marketing aspects necessary to change behavior and getting citizens behind the game plan.

Foreign governments and coalitions of governments from the United States, to Europe, to the Arab league, to the emerging economies of the East and South America, should give financial aid and provide expertise. They should vet all investments since there is not room for failure in this arena, but they should let Africa decide where investments are most needed.

The private sector will always have a role, both domestic and foreign. Unlike the government monies noted above, a culture of “smart” risk- taking needs to be generated. Funding local entrepreneurs with great ideas includes allowing that sometime the idea fails, but not so the person. Foreign investment is typically grounded in the notion of benefitting, first the investor. That is alright as long as the investments fit the growth areas that the African nations are aspiring to. Partner smartly with foreign firms. Do not fear them or bow to them but learn from them and leverage what is good about them to enhance Africa’s well-being.

Non-government organizations should be funded only with a strong plan for success. Continued funding should be fully dependent on results.

We can all cry for Africa and Africa can drown in self pity and corruption. Or Africa can work tirelessly to find the Pot of Gold at the end of the rainbow. Let it be the latter. Oh, and one more thing, may an African team reach at least the semi-finals in the World Cup!

Email the writer:








Your comments

The content of this field is kept private and will not be shown publicly.
  • Allowed HTML tags: <b> <i> <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
  • Web page addresses and e-mail addresses turn into links automatically.

More information about formatting options