The African Success Story What Next By Arun Panchariya-ca1290

Finance Africa South of Saharas GDP grew with 4.9 % last year. The World Bank estimates a stronger growth this year of 5.2 %. Many of the countries that experience the strongest growth have benefitted much from the natural resource boom, but some countries like Rwanda and Ethiopia have managed a good growth without much help from such resources. Also the first time the number of people below the UNs poverty line has been falling. Africa is now in a unique position to take further steps to increase its growth even further and also make it more resilient to external shocks. The focus should be to enable the new generations of well educated people with a strong drive and a lot of .petence to create and develop new and old businesses. The most important is to avoid hindering them in their pursuit of their ideas. Many governments seem to understand the importance of creating policies to take care of these opportunities. The politicians do not need to decide what these people shall do or decide in which areas businesses should be started or how businesses should be run. What the governments need is to provide the conditions such as rule of law, reasonable predictability in policy matters, social services, education and infrastructure. In other words if the governments continues to work on creating the framework the people themselves will be able to create the growth and run their businesses. In a continent with a few very populous countries, but with many mid-sized and small countries it is extremely important not just to focus on these issues on a national level, but also on a regional level. For example, a pan African stock exchange as I previously have suggested would be an important element in the financial infrastructure. Further the development of the aviation industry including an African hub for travel westwards to the Americas. Even more important is the inter-African transport systems that is improving, but should be improved even quicker than today. Some of the improvements especially in building of new roads, railways and other physical infrastructure are very capital and resource intensive. Even the most ambitious has to accept that the development has to take some time. Other important steps, however, do not cost much if anything, but demand political will and ability to sell the importance to the people. For example the fact that Kenya last year established a . service where public laws and regulations are made public in a good and reasonably pedagogic way is perhaps a small, but not an insignificant step to create a platform to enhance the rule of law. Rivalry between African states on who can quickest and best introduce such reforms and project are only good. But sometimes rivalry can hurt everybody. Rivalry should not include building trade barriers or making it difficult to move between countries. Quite the opposite, to reduce regulations to make it easier and less costly to trade and move people between the African countries is essential to take full advantage of Africas potential. Africa is already a success story in many ways, but success put more obligations on the governments. Most of them have shown that it is possible to create a success. Why shouldnt it now be within reach to create in Africa something like the Japanese miracle a generation ago or the Chinese miracle of today? I think that is within reach. Mr. Arun Panchariya is specialising in cross border transactions globally and is currently involved in a number of project related to Africa About the Author: 相关的主题文章: