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Mitigation to African Economic Problems.

Mitigation to African Economic Problems.

Mitigation to African Economic Problems. The African continent knows a large number of problems. However, economic problems touch many individuals in the continent. Several studies have been done by researchers; they have come up with solutions which at times have not been implemented. In this article we share with you a research done by a scholar, we invite you to examine its viability. The study below is written by Francis Ogbimi from Nigeria.

 

Can Africa claim the 21st century? is the report of a study carried out by the World Bank and published in May 2000. The report found that Africa’s total GDP income, output per capita at the end of the 20th century was lower than it was 30 years earlier in the 1970s. The number of poor had been steadily increasing. The Bank noted in the report that the regression was linked to growing income inequality, unequal access to resources, social exclusion and insecurity.

 

The Bank also noted that growing poverty in Africa is reflected in health and education metrics. In many African countries, the report found that 200 out of every 1,000 children died before the age of five. More than 250 million of the 600 million on the continent do not have access to drinking water and 200 million do not have access to basic health services.

African
African

I disagree with the World Bank’s position on the cause of stagnation and regression in Africa. Africa’s planning has always been influenced by the World Bank and other economists who do not understand the process of human development. African nations started with national development plans right after independence. Nigeria, for example, implemented four national development plans between 1962 and 1985.

 

The World Bank and IMF then introduced African nations to the African Structural Adjustment Programs (SAPs) in the early 1980s. African countries, including Nigeria, continue to implement SAPs.

 

I have analyzed Nigerian national plans and SAPs in a book titled “Understanding Why Privatization Promotes Unemployment and Poverty and Staggers Industrialization in Africa, F. E. Ogbimi (2007)” and showed that national plans and SAPs lacked growth-promoting elements. . They contain reverie objects without corresponding activities to achieve them. National plans and SAPs were based on the fallacious claim that “once capital is invested, growth follows.

Our research revealed that all industrialized nations today had agricultural economies and faced problems of mass unemployment, poverty and insecurity for many centuries. The problems disappeared when nations achieved the modern industrial revolution. We have therefore hypothesized that industrialization is the real solution to unemployment, poverty and precariousness.

 

Therefore, any nation working to eliminate the problems of unemployment, poverty and insecurity must make industrialization its priority objective. Indeed, the World Bank in its World Development Report (!998), stated that technological knowledge means know-how; the countries that have the least are caught in the poverty bracket.

 

Poor countries, the bank continued, and indeed the poor are unable to compete in the global system not because they lack capital or other material resources, but because they have less knowledge. Certainly, the difference between the agricultural economies in Africa on the one hand and the technologically advanced economies in Europe, America and Asia on the other hand, is a matter of difference in the level of knowledge, skills and competences ( KSC) owned and applied by citizens.

 

History shows that wealthy nations learned laissez-faire over many centuries, accumulated knowledge, skills, and competencies, and achieved the Modern Industrial Revolution (IR). All the good things in Europe, America and Asia today – high productivity and productive agriculture; good, adequate and reliable infrastructure; high standard of living; etc., are fruits of IR.

 

The process by which an agricultural economy is converted into an industrialized economy is scientific. Economists, including those of the World Bank, other social scientists, accountants, bankers, lawyers, etc., do not understand this and therefore cannot plan the industrialization of African countries.

 

In President Muhammadu Buhari’s address to the nation on the End SARS protests, October 22, 2020, point 12 of the address reads: The government has put in place measures and initiatives primarily aimed at youth, women and the most vulnerable groups in our society. These include our sweeping plan to lift 100 million Nigerians out of poverty over the next 10 years.

 

The creation of a $75 billion National Youth Investment Fund to provide opportunities for young people and the Micro, Small and Medium (MSME) Survival Fund, through which the government: a) pays three month salary to the staff of 100,000 micro, small and medium enterprises, b) pay for the registration of 250,000 enterprises with the Corporate Affairs Commission, c) provide a subsidy of 30,000 naira to 300,000 artisans; and (d) guaranteed outlets for traders’ products.

 

The 13th element of the address added: These are in addition to many other initiatives such as: a) Farmermoni, b) Tradermoni, c) Marketmoni, d) N-power, e) N-Tech and f) N-Agro. These activities that President Buhari brags about are symbolic at best when it comes to promoting industrialization and solving the problems of poverty and insecurity.

 

This is one of the solutions proposed by a researcher from west Africa and this solution could be applicable to most African countries.

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