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The fastest path to African prosperity

palladiummag.com

11–20 of 29 posts

Re: The fastest path to African prosperity

#11
If you don't put energy and infrastructure first, nothing else will follow. This raises an immediate issue: Western economies are still largely fossil-fuel-reliant and there is no way Africa can start burning fossil fuels at the rate the USA does. Ignoring the pollution and climate aspects, there simply isn't enough fossil fuel production for that scenario.

This means step one - securing the energy needed to support infrastructure and industrialization - must involve a renewable-centric approach, and given that Africa is centered around the equator, that means mainly solar (plus some wind and of course storage). The only country with the capacity to provide solar PV at scale is China, as they've mastered monocrystalline silicon PV production. This is already happening (June 2023):

https://www.pv-tech.org/china-offers-66gw-of-solar-infrastru...

Once the energy infrastucture is in place, everything else follows from that. Water can then be pumped long distances or from aquifers to combat intermittent drought conditions; railroads can be built to move goods long distances efficiently, and factories for conversion of raw materials to manufactured goods for export, aka moving up the value chain, can be built. Similarly, malaria was defeated in the USA because of infrastructure, not by genetically engineered mosquitos or similar schemes - malaria is a solved problem.

This article doesn't even mention the energy issue, it just trots out some revamped version of what, cheap labor in economic zones controlled by foreign investors? And we don't need to educate that labor for the simple tasks they will be given? Listen to this:

> "The belief that increasing educational provision is the key to unlocking prosperity in Africa is therefore incorrect. African economies instead need market opportunities to make use of their abundant human capital..."

I think that used to be called the African slave trade... so what's the author saying, instead of exporting slaves to the West they can just move the sweatshop factories to Africa, now that China is off the table for the neoliberal outsourcing program?

Re: The fastest path to African prosperity

#13

Rory Stewart, a well known British politician turned pundit, often talks compellingly about how giving money directly to women is the way to lift countries out of poverty. The charity he is involved in: https://www.givedirectly.org/team/rory-stewart/

Doesn't that only work if you first ensure that they will be able to use it before it is stolen from them?

Re: The fastest path to African prosperity

#14
post #4

Bitcoin is the fastest path. I will spend the time explaining if someone asks for it.

Please do.

1. Financial Inclusion: Many Africans lack access to traditional banking services. Bitcoin provides an alternative financial system that is accessible to anyone with a smartphone, enabling people to participate in the global economy without needing a bank account.

2. Remittances: Bitcoin facilitates cheaper and faster international remittances. Traditional remittance services often charge high fees and take several days to process. Bitcoin transactions are generally quicker and can be less expensive, helping migrants send money back home more efficiently.

3. Inflation Hedge: In countries with high inflation rates and unstable currencies, Bitcoin can serve as a store of value. People can convert their local currency to Bitcoin to protect their savings from devaluation.

4. Reverse Income Inequality: Income inequality is often tied with inflation. A hard asset like Bitcoin would help to distribute some wealth.

For all of these reasons, many Africans are already investing in Bitcoin. Bitcoin as a capital asset will help fund infrastructure/education etc

Re: The fastest path to African prosperity

#15

If you don't put energy and infrastructure first, nothing else will follow. This raises an immediate issue: Western economies are still largely fossil-fuel-reliant and there is no way Africa can start burning fossil fuels at the rate the USA does. Ignoring the pollution and climate aspects, there simply isn't enough fossil fuel production for that scenario. This means step one - securing the energy needed to support…

Those come after fixing corruption. Roads and energy are important, but a road isn't going to help if bandits take everything you try to move on the road.

Re: The fastest path to African prosperity

#16

Yeah, sure. Rule of the Law and respect for private property lead to prosperity. We get it. But in Africa, Latin America and many parts of Asia no one else gets it. The people love their authoritarian thieves, from Mugabe to Bolsonaro, from Maduro to Zuma. And don't ideologize this. In those places, the right is as corrupt and parasitic as the left.

Man oh man, I couldn't agree more. I've been living in Zambia for the last 3 years trying to start an export business. What a nightmare.

I laughed out loud when I read "e-government". The sad truth is countries like Zambia are just not equipped or capable of running anything "e". I am forced to use Zambia's Electronic Single Window (https://zesw.gov.zm/zesw/). What an absolute shambles, a total failure. If you don't know the right individuals in the right departments you're getting nowhere.

From my limited experience the problem is centuries of poor to no education and such an extreme level of poverty that individuals are constantly in survival mode. How can I make it through the next day/week/month vs. family, financial and career planning.

So, if we can wave a "give Africa what it needs" wand, I wouldn't suggest Startup Cities, Cryptocurrencies & E-Governments, rather good quality education, healthcare and just enough financial security to exit survival mode. If you can hand that to Zambia (without the corruption that is there now), you'd likely see a nation flourish and carve their own path to success, probably without "startup cities" too.

P.S. Zambia has Special Economic Zones: https://www.lsmfez.co.zm/. They're fine for large conglomerates who want to save a few kwacha in taxes but are mostly useless to all other small business owners.

Re: The fastest path to African prosperity

#17

If you don't put energy and infrastructure first, nothing else will follow. This raises an immediate issue: Western economies are still largely fossil-fuel-reliant and there is no way Africa can start burning fossil fuels at the rate the USA does. Ignoring the pollution and climate aspects, there simply isn't enough fossil fuel production for that scenario. This means step one - securing the energy needed to support…

Zambia has had almost 100% renewable energy for a very long time. It's only recently with more extreme weather patterns that energy consistency is becoming an issue. We've been exporting electricity for decades.

Despite that the country has remained incredibly poor and continues to circle the drain.

So I'd suggest, "they don't need X they need Y", is always going to be wrong because what is really needed is a blend of everything deployed in a very specific order depending on the country.

Re: The fastest path to African prosperity

#18

Earlier quoted context omitted.

Please do.

1. Financial Inclusion: Many Africans lack access to traditional banking services. Bitcoin provides an alternative financial system that is accessible to anyone with a smartphone, enabling people to participate in the global economy without needing a bank account. 2. Remittances: Bitcoin facilitates cheaper and faster international remittances. Traditional remittance services often charge high fees and take several d…

what fraction of Africans have a smartphone?

why, for those with a smartphone, wouldn't they just log into citibank.com or whatever, instead of a bitcoin blockchain app?

There's nothing inexpensive about bitcoin, in the big picture. you seem to only be hoping that the organizations running the electricity into servers are providing free or super cheap banking to users, i.e., they're eating the massive expense of bitcoin over, say, hosting MySQL on trhifty digital ocean or azure or aws. is that correct understanding of what you mean?

How is bitcoin a hard asset?

> many Africans are already investing in Bitcoin.

do you have a citation for that assertion? i have not found one.

Re: The fastest path to African prosperity

#19

Yeah, sure. Rule of the Law and respect for private property lead to prosperity. We get it. But in Africa, Latin America and many parts of Asia no one else gets it. The people love their authoritarian thieves, from Mugabe to Bolsonaro, from Maduro to Zuma. And don't ideologize this. In those places, the right is as corrupt and parasitic as the left.

Man oh man, I couldn't agree more. I've been living in Zambia for the last 3 years trying to start an export business. What a nightmare. I laughed out loud when I read "e-government". The sad truth is countries like Zambia are just not equipped or capable of running anything "e". I am forced to use Zambia's Electronic Single Window ( https://zesw.gov.zm/zesw/ ). What an absolute shambles, a total failure. If you don'…

I'm from Africa, and left a long time ago.

If you look at Western Europe + the "Anglosphere" ex-colonies, there's a long history of how laws and attitudes evolved in such a way as to virtually guarantee rule of law, individual rights, democracy, property rights, and people doing their jobs with genuine effort and in good faith.

For whatever reason, it's been incredibly deeply ingrained into people here in the West - over millennia - to expect these things from and for themselves.

But in Africa, I don't know why, you just don't have all these ingredients. And so you can give it every resource and all the infrastructure and investment, but I don't think you can easily send the true source of wealth from one society to another one.

It's at least 1000x times easier to do business in North America than in Africa. Instead of getting stymied at every turn by some new idiotic stumbling block, the whole system here pulls in the right direction.

There are lots of metrics that are improving incredibly well for Africa, and maybe this is the start of an upward spiral. I certainly hope so - that continent badly needs a couple of centuries of extreme prosperity growth.

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