© 2018 by Robert Person.  The views expressed on this website are my own and do not represent the official policy of the U.S. Army, Department of Defense, or U.S. Government.

Mar 22

Africa's Choice

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https://www.thehoya.com/chinese-growth-model-appeals-african-nations-economist-says/

 

This article explains that African countries are now straying away from traditional economic development models, such as those of the capitalistic liberal world order due to recent economic stagflation and persistent slow growth in the region. Now faced with a choice of whether to follow the western path of market liberalization or the eastern one of state-led development, a growing number of African countries are choosing a new path in the crossroads. A key factor in this is not just China's recent economic performance as an enticing example, but also the country's prevalent influence in the region as it extends its influence via the Belt and Road Initiative. Thus, by following the Chinese growth model, African countries may see more gain in its near future.

This article ties in many concepts that have been discussed in class. First, democratization does not necessarily lead to economic development, as now realized by a growing number of frustrated African nations. Rather, countries like Rwanda who are following the eastern model of state-led initiatives, are quickly taking the lead as the growing economic centers in the region. Secondly, market liberalization may have caused African nations to fall deeper into the resource trap, has historically ineffective governments have been unable to wisely manage the revenues gained from natural resources. More active government involvement and smarter choices may be the solution in Africa. Lastly, the Belt and Road Initiative targets much of Africa, as is a key driver in many leader's decisions to stray away from the western liberal world order and move towards China as an economic and political ally.

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