gvA Update

Without an increased capacity to produce tradable goods, the real GDP growth rates across Africa will continue modest and may never approach the seemingly inexorable pace set by China during its contemporary economic renaissance. As I said last time, to me Africa has been experiencing immesirizing growth, typically meaning economic growth that does not eliminate misery because it doesn't create well paying jobs. With just about 5 percent average real GDP growth rate across Sub-Saharan Africa, translating into a 2.5 percent real per GDP growth you can't really create jobs that way. And for sure with that type of speed you cannot compete with China its Asian Tiger relatives. To compete with Usain Bolt, you will have to have Usain Bolt speed levels. To compete with Tigers you have to be able to beat tigers at their game. What the Asian tigers do is that they produce, and with incredible efficiency. China produces virtually everything you see around you. So what can you produce to sell to China? In fact, wait a minute, what can you produce to sell in your own local market to ward off apparent China's predation? Frankly, I have nothing against China and the Asian tigers. In fact, I am proud of them and the extraordinary achievements they have recorded in the past couple of decades. We want to be able to continue business with them, but this has to be mutually beneficial. And so it is left to us how to design strategies for this, because the on-going one sided benefit in our trade relationship will continue to kill production and jobs in Africa. So let us start with training such as we now doing at the EBS in our Refined Economic Development (RED) strategies. These are development strategies that include productivity training and global value chaining in production. All these start at the community level. We must have communities that are economically competitive in the production of goods and services. Fortunately, we are starting to see the emergence of more competent and committed leadership across Africa, thankfully also at community and provincial levels. After all in the end, as Dr. Martin Luther King Jnr had said, "It is left to us" I am Magnus Kpakol, and that's my view

 

Posted: Aug 18th, 2015 @ 01:34:53 AM