A short comment around Economics and Africa
"African countries will see a sharp jump in growth this year, according to an assessment by the IMF. The short-term outlook for Africa was described as "very positive", reflecting rising oil prices in crude exports, macroeconomic stability, a strong demand for commodities and debt relief."
When I read this comment in an on-line newsletter (http://www.businessinafrica.net/news/west_africa/530921.htm), I just smiled. Anybody with basic background in Economics and some interest for development issues may understand that:
- Rising oil prices: means that more companies hungry for oil are coming to Nigeria, Equatorial Guinea and other several Sub-Saharan countries. Instead of looking for other types of energy, governments just care to take short term incomes. If you are updated with global news, you may know about the strong link between the oil industry in developing countries and the social and economical problems that those countries face, since it is not just a matter of pollution but also that an elite receives the economical benefit out of it.
- Macroeconomic stability: this means that no catastrophe is expected. Or like saying: be happy, this year there will be no tornados!
- Strong demand for commodities: another vicious circle, Africa sells raw materials and imports manufactured products. I can see the big smile of Chinese companies.
- Debt relief: sure, Africa owes money to developed countries, but why? Because they need to repair all the damages caused during colonialism? Because of the economic deficit faced due to the previous points?
Yes, surely the short term outlook for Africa looks good… for some.
There's a human factor in the equation in the economy (actually economics is considered a social science, since it studies the human nature in terms of use of resources and welfare). But do we really consider human impact when doing big business?
"African countries will see a sharp jump in growth this year, according to an assessment by the IMF. The short-term outlook for Africa was described as "very positive", reflecting rising oil prices in crude exports, macroeconomic stability, a strong demand for commodities and debt relief."
When I read this comment in an on-line newsletter (http://www.businessinafrica.net/news/west_africa/530921.htm), I just smiled. Anybody with basic background in Economics and some interest for development issues may understand that:
- Rising oil prices: means that more companies hungry for oil are coming to Nigeria, Equatorial Guinea and other several Sub-Saharan countries. Instead of looking for other types of energy, governments just care to take short term incomes. If you are updated with global news, you may know about the strong link between the oil industry in developing countries and the social and economical problems that those countries face, since it is not just a matter of pollution but also that an elite receives the economical benefit out of it.
- Macroeconomic stability: this means that no catastrophe is expected. Or like saying: be happy, this year there will be no tornados!
- Strong demand for commodities: another vicious circle, Africa sells raw materials and imports manufactured products. I can see the big smile of Chinese companies.
- Debt relief: sure, Africa owes money to developed countries, but why? Because they need to repair all the damages caused during colonialism? Because of the economic deficit faced due to the previous points?
Yes, surely the short term outlook for Africa looks good… for some.
There's a human factor in the equation in the economy (actually economics is considered a social science, since it studies the human nature in terms of use of resources and welfare). But do we really consider human impact when doing big business?
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