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IN AFRICAN COUNTRIES THE STATE SHOULD BE A STRATEGIC PLANNER
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Since Ronald Reagan's election in 1980, U.S.' conservatives won the argument for a shrunken state, one that taxes and spends less. In other words the anti big government lobby prevailed in U.S.' politics.
That neoliberal model, which put emphasis on privatization and deregulation - spread across the world, imposed on developing countries that had no alternative (till now) than to comply.
It is the apple of discord inside the European Union, where Blair's United Kingdom is at odds with France and Germany, which insist on keeping the "social model" they deemed better that neoliberalism.
Gordon Brown - UK's finance minister /
chancellor of the Exchequer - delivered a speech on October 13, 2005, in which he urges for the European Union shake up. That would certainly deepen the malaise and political fight within the European Union's leadership.
Particularly now that Katrina tosses everything in the air, revealing to the world at large the appalling superpower's disorganization to support the populations of wrecked U.S.' Gulf Coast region (Louisiana, Alabama, and Mississippi).
Indeed, hurricanes Katrina and Rita underlined the misconception and failure of "less state or no big government" dogma that led to globalization and deregulation. That misleading dogma is now naked for everyone to see and would lead to a change in tone, with neoliberals obliged to cool down the anti-government or no big government rhetoric.
Indeed, Katrina reopened the debate in neoliberalism's motherland and the world at large. And African countries should reshape the globalization and deregulation policy imposed on them not to remain the perpetual losers.
Since mid 1985's - the start of Structural Adjustment Programs - globalization policy tightens its grips on the Southern countries' economy, through the promotion of an economic dogma that "enacted" less state to be the better way to achieve a developing pace, which would help bridge the gap with the North.
The World Bank and the International Monetary Funds (IMF) advised African countries' governments to disengage from (productive) developing matters and give free way to private companies to set up and run companies; the state being only in charge of establishing infrastructure (road building, telecom infrastructure, social infrastructure (schools, universities, hospitals).
African governments complied, sold state-owned companies (built over years of hard work) - to private (most of the time) international) companies.
Said move was supposed to improve the economic situation of African countries to stopping the decline and reverse the trend.
"LESS STATE" DOGMA FAILED TO DELIVER IN AFRICAN COUNTRIES
As we all know, the economic situation of African countries did not improved with the implementation of less state involvement in the developing process. The situation rather worsened to the point of desperation as poverty level increased all over African countries.
Globalization and Deregulation created disaster in developing countries, particularly in sub-Saharan African countries, destroying national entrepreneurship and initiatives. [Click here for World On Fire - How Exporting Free Market Democracy Breeds Ethnic Hatred and Global Instability; click here for African Commodities In the Globalization Jungle; click here for How African Countries Could Counter Predatory Trading Practices]
Nowadays, the disastrous effect of Deregulation and Globalization on African countries' economy is a well documented matter implicitly recognized by the big powers. (If not yet, the last assault of thousand of African migrants that occurred on the first week of October 2005, on Ceuta and Melilla - the Spanish enclaves inside the Kingdom of Morocco - is there to refresh the memory.)
Big powers are now feverishly searching for ways and means to assist African countries reverse the economic decline through debts remittance or cancellation.
However, they have, till now, made proposals without dropping the globalization concept of "less state".
Should African countries continue with the same policy of non-intervention in the productive developing process as theorized and advocated for by U.S.' neocons; advised and imposed by the World Bank and the IMF? Should they avoid to get involved in companies setup? Should they leave private business "alone" in charge of the economy?
DEVELOPING COUNTRIES PERFORM BETTER WHEN GOVERNMENTS ARE FULLY IMPLICATED IN THE PROCESS
Persevering on the same path of "no big government or less state" would be counterproductive and plainly suicidal for African countries. That way of developing cannot continue as the situation is already desperate.
True, the policy of state run economy that prevailed in most African countries from independence day till mid 1985's cannot also be reinstated as such.
That policy failed. However, it was necessary because private sector was not at all developed when the countries became independent nations. Therefore, the state was obliged to take the lead, setup companies and build up infrastructure.
The necessary state owned companies' policy, however, was flawed because the management had been "given" to militants of the one party system who proved to be bad managers, not experienced or qualified. The management's failure was the reason for the state bankruptcy that brought in the World Bank and the IMF in the 1985's.
One cannot say therefore that the policy of the state involvement in the developing process was a bad one. It is the way it had been carried out that was bad.
Old developed countries like France, UK, Italy and many others had, for decades, established state-owned companies that performed well. No need to give examples. They number in the thousand. These state run companies performed well because the management was experienced and dedicated.
The same happened in Brazil, Taiwan and Singapour, Malaysia and Korea. The state, in these countries, leads the show, setting up state owned companies
that contribute to the developing success worldwide acclaimed for. Singapore's airlines, the best company in the business, is the example. There are thousand others in Asian countries.
Let us consider Taiwan. Doubtless, Taiwan’s policy-makers followed the free enterprise’s doctrine to achieve the successful development of the economy.
Nevertheless, the state of Taiwan did play a powerful driving part in completing the development policy, through a sophisticated planned strategy without any compelling pressure against national and international investors.
Yet, in view of economic statistics, one should acknowledge that Taiwan economic “miracle” is not the result of only free enterprise undertaking.
Indeed, until mid 1970's, Taiwan’ state contributed for more than 50% to the capitalization market; and, nowadays, the government of Taiwan is still in control of one third of the banks, and one fourth of the industrial units - to name only these two economic activities.
In few words, the state of Taiwan played – and is still playing – a fundamental role as strategic planner, partner-investor and guardian to national interests.
Actually, Taiwan’s policy-makers made a harmonious use of both free enterprise and state run economy. They did promote free enterprise but in the meantime, the state of Taiwan participated in manufacturing and services activities. Local and foreign investors benefited from incentives; however, the state itself is still an equity partner in several Industries and Services.
In brief, one sees that Taiwan's economic success story is not the result of unbridled free enterprise’s policy, which the IMF, the World Bank and international financing institutions are enforcing on SSA countries under Structural Adjustment Programs
COMPETENCE IS THE KEY TO SUCCESS
The main mistake African nations made till 1980's was to put the management of state-owned companies in the hands of incompetent people. The other mistake was to promote non productive activities.
Now that the one party system is dead, the state should get involved in the developing process, taking initiatives to set up companies in collaboration with the private national, regional and international investors.
However, the management should never be in hands of state's officers. The private sector should be in charge - under the scrutiny of the state. If sometimes it is necessary to put in charge state officers, they should be chosen by open contest supervised by independent consulting firms. The selected managers should have detailed road maps and comprehensive agenda with clearly defined yearly objectives. If they succeed fulfilling objectives and making profits, they should be rewarded by incentives. If they failed, they should be sacked.
In short, African countries should copy the success recipe followed by Asian tigers, which succeeded in blending state-owned companies' policy and free enterprise.
Anyway, time is ticking by as shown by the assaults of thousand of African migrants on Ceuta and Melilla during the last week of September and beginning of october 2005.
One can predict the recurrent happening of such desperate actions from poverty stricken Africans if the big powers continue to ignore the destructuring effect globalization and deregulation are causing in African countries.
Electrified barriers would not protect "Fortress Europe" from the surge of illegal
immigration from desperate African countries. Only efficient developing national strategies to assist African countries bridge the developing gap would do. Strategies that yield in each national African state, year in year out, double-digit growth rates.
The world national had been highlighted to stress the point that Regional Groupings are not the answer to the developing gap.
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| Business
Opportunities PART I: - INTRODUCTION TO FISH FARMING AS BUSINESS OPPORTUNITY IN AFRICAN COUNTRIES
Fish is a popular diet all over Africa. The potential of inland fish-farming, however, had not yet been fully exploited by African countries and fishermen keep on "harvesting" fish in rivers, and lakes.
Therefore, to cope with demands, huge quantities of fish - frozen, dried, smoked, salted - are imported by most sub-Saharan African countries - the landlocked ones in particular. This document summarizes the potential of fish-farming in Africa
In some sub-Saharan African countries, fishing is a traditional economic activity. There are villages’ communities that earn their living through extensive river, lake or sea fishing. Fishermen even live on the spot - alongside rivers or lakes’ banks in central and western Africa.
Fishermen in sub-Saharan African countries practiced fishing on small-scale. They use barks or pirogues propelled by oars or motors to practice coastal fishing (one to two miles off the coast) avoiding high sea. Fishermen practicing inland fishing (river and lakes fishing) use small pirogues to cast fishing nets and harvest immersed hoop nets.
- FISH FARMING IS A TRUE ECONOMIC CATALYST
Fishing complies with the conditions set in this delivery defining Economic Catalysts and is an excellent business opportunity to boost up local or regional economic activities.
Nevertheless, small African fishermen all around the continent hardly have governments’ support to develop and expand their business. This is an economic aberration - among many others. Below briefly outlined are four suggestions to develop and expand fishing activities in African countries:
1. To provide financing to existing fishing communities to buying equipment (motors, fishing-nets, storage rooms and tanks).
2. To provide training and support to processing fresh fish to dried- fish, salted and smoked fish.
3. To develop small fish farming in landlocked sub-Saharan African countries.
4. To set up large-scale fish farming. |
Carrying out any of above listed proposals would help villages’ communities setup sustainable income building power.
Click here for more on the introduction to Fish-farming as business opportunity for African countries.
Control Your Desktop
THE BROWSER'S WAR IS STILL RAGING. DON'T BE A VICTIM.
Do you think that the browsers' war of the late years of the 1990's is over? Remember when Microsoft Internet Explorer (IE) was battling to dethrone Netscape and conquer the desktop empire.
Now IE is the the king dominating the browsers' market - above at least 75% of the market share. However, in spite of its dominance, you certainly noticed that you cannot use it when visiting some websites, which proprietors decide to somehow block IE.
That happens more often than you may think. Sometimes, your security setting in IE can also impede you from making some browsing such as downloading a file.
In such cases what do you do? Normally you are obliged to fire up other players like Nescape, Firefox or Opera to get the job done. Very annoying.
You can now make it simple when you encounter such problems. There is a little utility that helps open another browser than IE when you encountered a "blockade". It is called URlaunch.
URLaunch is a tiny program that sits in your system tray, which can automatically launch any URL that you copy to the clipboard in a browser of your choice. There is a configuration easy to setup to choosing the browser to open if necessary and the program will ask for confirmation before launching your browser. Right click here and chose Save As to get a zip copy of URLaunch.
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