Munk Debates: Is Africa held back by circumstances? (8 of 15)

[AngryUSCitizen1]

capitalism will be the worst thing for africa... u think blk american slavery was horrible... try capitalism in africa...

[CrowdPleeza]

If capitalism is so bad for Africa then why does Botswana have one of Africa's best economies? Free markets and trade(with moderate regulations) can work in African countries but African countries need more basic infrastructure like more roads and railroads so that the benefits of trade can touch more people.

[Eye0fTheStorm]

The connection is not a universal one, and varies from country to country, depending on the ineptitude of its 1st african leader(s)

Take the country I was born in for example. Kenya's most valuable foreign export is Tea/ Coffee . When Kenya gained independence, the 1st president made backroom deals with the british before they left

To this day, the lions share of Kenya's most valuable resource (tea/coffee) is owned by British companies and ends up in London banks. That is a big problem

[CrowdPleeza]

As far as the British benefiting more from Kenya's tea/coffee how have Kenyan leaders addressed this?

Has Kenya's leaders made business activity easier? I checked Kenya's economic freedom ratings from the Heritage Foundation and they pointed out that corruption and lax property rights were hurting the country. Are Kenyan leaders addressing these things?

[Eye0fTheStorm]

The vast majority of Kenya's presidentship was run by Daniel Moi. A kind of pseudo-dictator who stayed in power with dirty politics for almost a quarter century

Then Kibaki came into power, and remained for one term before a new election. Memories of Moi's corruption is what exploded the country in violence a few years ago when people thought he rigged the election. The country is currently a dual-presidentship with Kibaki and Raila

[Eye0fTheStorm]

So there has not been much chance for the 2 presidents to make much of a difference.

The chief problem is that those british companies outright own the tea/coffee sectors, and you cannot simply re-write legislation because they are protected by contract rights.

The lazy option is to do what Mugabe did in Zimbabwe did to the white farmers and try to take everything over by force.

Not a good option

But nevertheless a very difficult thing to do.

[CrowdPleeza]

Could you elaborate on your capitalism-slavery connection? Europeans at that time were practicing mercantilism and not capitalism. Adam Smith,considered the father of capitalism,was opposed to slavery.

[RickW05]

@CrowdPleeza And when Carlyle declared economics to be the "dismal science" it was because economists opposed slavery while Carlyle thought that blacks should be forced to work against their will, which he thought was to everyone's betterment.

[cmbradford]

Slavery is enforced through law, not market structures.

[RickW05]

@cmbradford More specifically, by legislation (to call on Hayek's law/legislation dichotomy).

[r43007]

Dambisa well put in this video.

[Craigvadams]

Hernando and Dambisa tagged Paul Collier good followed by more long-winded worthless rambling by Collier.