Africans-Stop-Being-Poor

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1563-4108

AFRICABIZ ONLINE SYNOPSIS RSS FEED
Trading And Investing In & Out Africa

ISSUE 112 - VOL 2
October 15, 2008 - January 14, 2009

Dr. Bienvenu-Magloire Quenum
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Welcome to the quarterly issue of Africabiz Online /free access Synopsis & RSS Feed edition. Previous issue available at this link

Click here for the beginning of the article

Due to the setup of the new brand paid service - VIP-Membership/ VIP-Lounge - and the heavy workload that it implies, the periodicity of the free access magazine - Africabiz Online Current - had been extended from a monthly delivery to quarterly dispatch. Click here for more


Eyes Wide Opened: Lessons From the Evolving Financial Crisis

By Dr. Bienvenu-Magloire Quenum

The major financial crisis forecast by economists and financiers (samples of books about the crisis are exposed here) is now ragging across the world. All financial places are struggling to contain the debacle and governments in developed world are meeting with each other, feverishly discussing to find a solution to shore up collapsing banks and insurance companies.

All developed world governments are now ready to totally or partially nationalize faltering banks to avoid the looming bankruptcy and a devastating credit crunch.

The British government on October 8, 2008 announced Europe's most far-reaching bank rescue plan, promising to inject tens of billions of dollars in capital into UK banks after two consecutive days of dramatic losses in share prices. Warning that global financial markets had "ceased to function," Prime Minister Gordon Brown said the "comprehensive restructuring" of the banking sector was designed "to put the British banking system on a sounder footing and to build strength for the future."

Gordon Brown continues, declaring "This is not a time for outdated thinking or conventional dogma. Extraordinary times call for bold and far-reaching solutions," he said, promising that the plan would "show that we have led the world in changing the terms and conditions on which we can help to renew the flow of money in the system."

The same thing is occurring in France, Belgium, Germany and other west European countries. Only finance powerhouse Switzerland is holding back the tsunami. In the United States, the authorities, after putting in place USD700 billion rescue package to shoe up the banks, are mulling now considering the possibility to use part of the bail out plan to take stakes/equities in the banks in distress.

- Gordon Brown Spilled The Beans

So, we can see that triumphant deregulation and promotion of the mantra "the market decides" that is unregulated liberalism is no more the gospels.

Well, now the truth is out from one of the singer of the free market cathedral. From now on, we, in developing countries can make counter proposals to advises given by developing countries's experts, who, for three decades running had advocated and imposed free market rules on our frail economy, forcing for the sales of state owned companies that had been setup by our nations since the independence era.

From now on, African nations and other developing nations from Asia, and latin America have plenty of arguments to challenging the "dictatorship" rules established by the World Trade Organization, that it forcing young nations still in third economic development league to play with nations that are in the first league since at least two centuries.

- Dr. Mohamed Bin Mahathir is Vindicated

In a previous delivery dating back to three years ago, titled: "Should African Countries Surrender For Ever To T.I.N.A.", the problem of the state involvement in the developing process of emerging countries had been briefly discussed.

In said article it was stated that African countries do have alternatives, contrary to the statement of international financing institutions that "There Is No Alternative" - T.I.N.A., meaning that these countries have no choice but to follow the free market law and nothing else.

Remember the Asian crisis of the 1990s. The IMF-World Bank's experts advised the Asian countries, experiencing a severe financial crisis, that was not their own making [1, 2], to let go and leave the market decides. That is to leave speculators move freely money from these countries, which were already submitted to credit crunch.

Dr. Mahathir, the then Prime Minister of Malaysia took a contrarian path, to pull out his country out of the crisis far in advance of the other Asian countries that followed the advise from the IMF-World Bank. Few years later, Argentina, experiencing a similar financial crisis, chose to innovate and succeeded in turning around its economy in a short span of times. Click here to read briefs about the experiences of both countries: Malaysia and Argentina.

At the time, Dr. Mahathir has been vilified by the "international community" of orthodox economic thinkers. And now UK Prime Minister, Gordon Brown is stating the same as Dr. Mahathir did two decades ago, declaring on October 8, 2008: "This is not a time for outdated thinking or conventional dogma. Extraordinary times call for bold and far-reaching solutions," he said, promising that the plan would "show that we have led the world in changing the terms and conditions on which we can help to renew the flow of money in the system."

You may re-read issue 73 to compare above outlined Gordon Brown's declaration to the one made by Dr. Mahathir to a gathering of Asian businesspeople at Bangkok on July 6, 2002. The similarity, in spite of different words, is striking.

- Now, Forever, African Countries Should Not Surrender To T.I.N.A.

The conclusion to the article published three years ago is still valid: African countries' policy makers should always propose alternatives to the solutions advocated by international experts and avoid surrendering to the "There Is No Alternative" mantra. Gordon Brown words "...we have led the world in changing the terms and conditions on which we can help to renew the flow of money in the system," should be put into practice by African decision makers and negotiators to international gathering such as The World Trade organization negotiations.

About the author: Dr. Bienvenu-Magloire Quenum is the principal/ managing director of Dr. Quenum & Associates, IBC. He is an experienced Investment & Business Planner with 28 years consulting practice in African countries. He is the author of Africans, Stop Being Poor! and the editor in chief of Africabiz Online

MORE ON FINANCIAL CRISIS
1- Financial Shock: A 360 Look at the Subprime Mortgage Implosion,
and How to Avoid the Next Financial Crisis
by Mark Zandi (Hardcover - Jul 19, 2008)
2- The New Paradigm for Financial Markets:
The Credit Crisis of 2008 and What It Means
by George Soros (Hardcover - May 5, 2008)
3- Manias, Panics, and Crashes:
A History of Financial Crises (Wiley Investment Classics)
by Charles P. Kindleberger, Robert Aliber, and Robert Solow (Paperback - Oct 4, 2005)
4- Chain of Blame:
How Wall Street Caused the Mortgage and Credit Crisis
by Paul Muolo and Mathew Padilla (Hardcover - Jul 8, 2008)
5-
Understanding Financial Crises
(Clarendon Lectures in Finance)
by Franklin Allen and Douglas Gale (Hardcover - May 17, 2007)
6- The Subprime Solution:
How Today's Global Financial Crisis Happened, and What to Do about It
by Robert J. Shiller (Hardcover - Aug 24, 2008)
7- The Trillion Dollar Meltdown:
Easy Money, High Rollers, and the Great Credit Crash
by Charles R. Morris (Hardcover - Mar 3, 2008)
8- Empire of Debt:
The Rise of an Epic Financial Crisis
by William Bonner and Addison Wiggin (Paperback - Oct 6, 2006)
9- Financial Crisis, Contagion, and Containment:
From Asia to Argentina
by Padma Desai (Hardcover - April 21, 2003)
10- America's Financial Apocalypse:
How to Profit from the Next Great Depression
by Stathis (Paperback - Nov 14, 2006)
11- Crash Proof:
How to Profit From the Coming Economic Collapse (Lynn Sonberg Books)
by Peter D. Schiff and John Downes (Hardcover - Feb 26, 2007)
12- Bad Money:
Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism
by Kevin Phillips (Hardcover - April 15, 2008)

"CONTRIBUTOR'S GUIDELINES" are available here. We invite you to contribute to AFRICABIZ ONLINE MONTHLY ISSUE - with articles related to "How Africa Could Bridge The Developing Gap".

Your feedback / objection / contribution is welcome. Visit WorldWide BizCenter, and choose General Information (as topic) to create a thread for discussion. On the top of the WorldWide BizCenter page, there is a HELP link to assist you making an efficient use of the discussion board. This link also is useful


Many thanks for subscribing to Africabiz. See you here on January 15, 2009.


  Dr. B.M. Quenum
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Business Opportunities

LIVESTOCK & GAME DEVELOPMENT - PART IX: - A SMALL SCALE OPERATION TO SMOKING FRESH CATTLE MEAT

Based on preliminaries, available at this link, the following table summarizes the operation's economics:

Items
US$
INVESTMENTS

Total investment

81,000
OPERATING COSTS

Operating Expenses: to purchasing 350 Metric tons of fresh cattle meat (Click here for fresh meat purchasing cost) ) including management 10 workers salaries and wages.

850,000
PRODUCTION COSTS

315 metric tons of smoked cattle meat (in portion weighting each 180 gram in average (taking in account a weight loss of about 10% resulting from the preparation and smoking operation) That is 1,750,000 smoked portions of cattle meat per year for 850,000 US$ production costs. That gives a production cost per portion equals to .486 US$ or 2,698 $ per kg of smoked cattle meat =

1,208
GENERATED REVENUES
Smoked Meat: 315,000 x 3,238* US$ (with 20% profit margin applied to the cost of production per kg above outlined) = 1,020,000
GROSS PROFIT
GROSS PROFIT 168,792

This delivery explores solutions to minimizing infection risks.

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Control Your Desktop

RESET SEND/RECEIVE IN MICROSOFT OUTLOOK WHEN IT STOPS PERFORMING


Sometimes, punching the Send/ Receive label in Outlook's menu does not send or receive mails. This happens often when one had sent mails clicking an email link on a webpage, which loads Microsoft Outlook newmail interface to be filled in. And when one clicks the SEND button, the mail is sent to the OUTBOX, kept in waiting till one loads Microsoft Outlook through the normal sequence of START/ALL PROGRAMS/Microsoft OUTLOOK or any other appropriate sequences.


For more on the matter visit this link

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Freebie Of The Month

MAKE USE OF A FREE TRADE FINANCING GUIDE

To sell your products on international marketplace, you need to have a good product, that sells at competitive price. But that is not enough. In addition, you need to have a good working knowledge of international trading tools and payment methods such as: Letters Of Credit; Export Credit Insurance; Export Factoring and Foreign Exchange Risk Management. Etc.

Knowing how to "toy" with these definitions and payment method can save your life and make you sell successfully and have your money back.

There is a comprehensive guide written for U.S. exporters, but suitable for business people worldwide. The book can be downloaded in PDF format clicking this link


 
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