Africa Must Shun 'Comparative Advantage' Attitude

Published on 27th October 2009

It is instinctive to take advantage of resources and assets that one has, to push for development and growth. Politically, it is the language of "My people... do not joke with our vote rich zones." TV stations beam such sentiments all over.  "Our country is rich in oil, rich in tourists' sites," country leaders boast as their citizens' wallow in poverty. The 21st century Africa must invest in populations that go an extra mile to employ use of reason in its activities.   

 

I had the honor to host and train East African youth in Busia on the subject: How can one start, run and nurture a successful business enterprise? Among other key issues that one ought to focus on to run a successful enterprise, one must strike a balance between "comparative advantage" and "competitive advantage." I have observed some taxi driver friends for the last 8 years. One particular driver has expanded his business from 1 to 3 cars. He is always on call and has to sublet some assignments to other taxi drivers.  

 

I noticed that the taxi driver who is ever on call is always neat; never drunk while on duty; keeps time and reports back if he is held up in the notorious Nairobi traffic jams. He never resorts to the common Kenyan refrain: "I am around the corner." He is trustworthy; has a mechanically sound car (never runs out of fuel at Nyayo House roundabout!); sublets when busy (never delays customers with a view of doing everything!); is courteous; smiles and always says thank you.

 

I always get amused when I pick this cab from the airport say at 4.30am and overhear conversations between him and colleagues requesting for morning "assignments". Despite the fact that over 10 cabs operate from the same spot, one individual is on high demand! I noted another extreme case of one in this group who sold whatever car he had and now relies on others.

 

Having a car gives one the comparative advantage in starting a taxi business compared to having none. Having land gives one comparative advantage in starting agribusiness. Having wildlife simply gives the country a comparative advantage in the tourism sector. Politically, having an ethnic community that is endowed with a high number of "faithful" voters gives one comparative advantage. However, as observed in the taxi business story above, comparative advantage is not synonymous to good business or efficient service delivery.   

 

Politically, we should move away from celebrating numbers to celebrating quality. Kenya and Africa needs leaders that can rally people to realize their potential here on earth. To brag about numbers (votes) while ignoring the fact that we are talking about poor citizens who cannot afford a meal a day is to insult the very essence of governance. Competitive advantage in politics should focus on policies that ought to reverse the wave of poverty on the continent.  

 

Kenya and by extension Africa is stuck in the "comparative advantage attitude." As in the case of the unsuccessful taxi drivers; we sleep in our cars waiting for customers, whereas our competitors sleep easy in their houses - a call away from business! It is urgent that we invest in creating a "competitive advantage attitude" if we have to make our assets (resources) benefit our people. For example, instead of focusing on parks and wildlife as an element to market Kenya (remember Tanzania, South Africa, Uganda have similar products) our policy makers should consider efficiency, security and connectivity among others, as areas to leverage competitive advantage.  

 

You too must invest in your competitive advantage! Change starts with individual action.  

 

By James Shikwati,

Director, Inter Region Economic Network james@irenkenya.org

 

 

 


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