Africa: The Winds of Change Must Blow

Published on 13th March 2007

Most politicians everywhere, once elected, try to gradually increase their grip on the very electorate that put them in power and to stay there as long as possible. How can such tendencies be checked and limited? This is the ‘big question.’

The beginning of a solution lies first in admitting that most of Africa’s problems lie in Africa and are caused by Africans. We can no longer live in denial. Africans must take responsibility for what has happened on the continent since independence. Leaders that display honesty and integrity, and are resolutely committed to economic reform for higher growth for the benefit of the people are necessary as an example for Africa. Such reform should begin with limited government and freer markets.

Unless government is limited, Africa can neither have a free market system nor achieve the high economic growth rates needed to solve its poverty crisis. Current and future political leaders must face up to the reality that Africans (especially their leaders) are responsible hence the need for accountability.  

Acceptance of responsibility is half the battle won. The other half is adopting and implementing policies that are consistent with free markets and limited government.  The “blame mentality” should be eliminated. Blaming racism, tribalism, colonialism, apartheid and reactionaries many years after independence will not help. The power of this “victim psychology” is an important contributor to the state of affairs on our continent which must change if conditions are to improve. Politicians should stop being the most important people in Africa, giving way to consumers and producers.  

Devolution of power will diffuse internal tensions and spur innovation as ethnic groups feel less threatened. Co-operation is by mutual consent; not by enforcement. It keeps the peace, which means more time for development and the economy. Certain African countries could adopt the canton system as practised in Switzerland so that no one group is oppressed by another thus ending some of the conflicts that sap Africa’s energy. Local people should make local decisions. That is the ultimate in freedom. There is no harm in learning from others. In this context Africa is not unique in its problems.

An understanding of free markets, freedom of expression and democracies where individuals come first, needs deepening. The only truly legitimate role of government is to protect man from man and to enforce contracts (security and justice). If there is need for it to be involved in, say education, it should be to finance it, not to provide it. Private enterprise will do the rest.  The purpose of government should first and foremost be to provide an enabling environment for consumers and businesses to thrive.

Free trade, globalisation and technology are forces that are likely to assist in the breaking of barriers to limiting government. Free trade and globalisation may for example free farmers from the shackles of controlled prices. Free trade could start by dropping all the trade tariffs between African countries before tackling tariffs in the rest of the world. Technology will foster freedom of expression and make control of the press by governments more difficult.

Africa must resist the recent trend towards greater regulation and red tape that is sweeping the western world currently. Aid should be discouraged and greater trade encouraged. Institutions such as NEPAD must be strengthened so that “misfits” quickly find themselves out of line and pay a heavy price. “African Brotherhood” must be thrown out of the window for non-performers. Expatriates, Emigrants, Non-Governmental Organisations and FDI should be attracted back to the continent to spur and foster economic growth. Social engineering programmes based on race or ethnicity must be shunned.  

To achieve high economic growth, African countries must embrace the rule of law; abolish exchange control; decrease time spent with bureaucrats; have a flexible labour market in which salaries and wages are based on demand and supply; reduce the size of government and its consumption; abolish trade tariffs; reduce legislated business regulation; liberalise financial markets and reduce taxation of individuals and businesses. We must remember that capital is a coward; it hates uncertainty. To attract local and foreign investors who will spur high economic growth, economic policy must be clear and certain. Neglecting the nine characteristics mentioned above breeds poor economic growth, stagnation and poverty for the majority of Africans. 

The winds of change that Harold McMillan spoke of in February, 1960 have been long in coming. They are here at last. It’s worth noting that there are African countries that are now enjoying remarkably high economic growth rates. Botswana is today the second highest growth country in the world after Ireland. Africa can grow faster yet. When conditions are created to foster high economic growth, growth rates will quickly multiply and prosperity will abound for all of Africa’s citizens.  

It is important to demonstrate to Africans that they can succeed. Today, numerous African governments are being limited, new democracies being born and economic reform being implemented. Former dictators are being convicted of their crimes against humanity. FDI is beginning to pour in from the West, India and China, although this is largely driven by the high commodities cycle and may not be sustainable in the long run. (The more reason why we need to build a sustainable foundation for economic growth.) Africa is a continent blessed with many resources. There is no reason why any of its children should continue to wallow in poverty and ignorance.

Africa must bury the bitterness of the past or the past will bury it. We have no more time to waste. High economic growth will lead to a better life for all of Africa’s poor. It will also keep skilled Africans of all races in Africa. A friend of mine, just before he emigrated to Canada (he is a banker) said: “Ayanda, I don’t have 200 years to wait for Africans to fix their own problems.”  We must stop the brain drain immediately.

Africa has based its programmes of development on a reaction to its history rather than on proactively promoting faster economic growth and freedom. It’s all about the economy. We must get this right for our people. The prime step is to limit the power and influence of government and there has never been a better time to act than right NOW! May God Bless Africa.


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