Tuesday, August 21, 2012

Economical Progress in Africa

I have always taken a different view when you look at African Economic progress. Most problems that stem from Africa have never been Economic problems, they have been political.

If the problems where economic, we would simply educate the technocrats and produce economic progress. However, these problems are political! And you can't take politicians to school and educate them in politics. What has made be wonder with awe, is not the top political leadership that lets Africa down, it has been the advisors or some small political muscles that pull strings and lead the country to disaster.

Now this blog is not about politics, I would condemn so many things about politics not just in Zambia but in all African countries. My aim on this matter is try to reconcile the political problems and the failure to move economically - that totally comes from political problems.

Can Economics Cure Political Problems
I would love the answer to be yes to that. I really do! But it always lead to one conclusion which always even leads people into insulting politicians as to why that problem can not be solved.

Look at Zambia now, the politicians have changed, has the economics changed? The sad answer is no! The politicians has one disease which they never learn to cure all the time and in circles and in leads to many failing to have great political life - they ignore technocrats!

The most interesting result has been the usually labeling of technocrats as opposition cadres! One thing is for sure. The same people were labeled as following the current policies when the MMD was in power. It was common when one politician's desires are meant with proper and sound advice to turn and say these chaps are PF! Now the same PF would look at the technocrats as MMD!

Its a never-ending blame game. The only solution is to learn what technocrats do and then follow things through.

I Know It All
This has been the greatest problem in economics. By definition, an economist will read, research, find solutions and recommend to the powers that be. The usual activity among many countries in Africa has been to reject what you are told and issue your own solutions on the matter as you know it all!

Any educated follow of politics will always sight that problem and fun enough, very few politicians ever learn what to do. So the same problems you blame one government, is the same problem you will bring about. What is interesting is always reconciling what is said to former leaders and the new crop of leaders. The day, this trend will be repaired, is the day we will see progress.

What I'm sure about and have seen it growing is that, every country that performs well, avoids rent-seeking behaviour. And believe me, the same people who backed and were "darlings" of one government and led to its fall, will be "darlings" of the party that is now leading and was in opposition. The technocrats see this and they wonder why politicians are so blind.

Hope Out There
The economics to make a country progress is out there. In the same offices that the former ruling party was controlling and is now in the hands of the new government. I can assure you, the first thing they will do is remove the people they think made the other government unpopular, bring in new stuff. But treat them the same way the other party treated people he had. There is no progress. New bosses but the behavior is the same the advise is also thrown out the window in the same manner.

I will give you an example. Zambia has a problem of funds to invest in sectors that will generate economic activity and lead to backward and forward linkages in all sectors in process lead to demand creation and economic progress. Simple.

What is needed? Each economic player contributing his fair share of investment, responsibility and hard work. Any government that takes that as religion will bring more good to the people than any known foreign investment. All of us paying our share of taxes, anyone in the position of power using the power to ensure the resources are directed at intended targets, and companies tasked to do their part of economic activity sticking to that role.

But Our Problems:
  1. The government of the day will negotiate with companies of what they should not pay! So the next person will now wonder why he should pay when government has chosen some "angels" not to pay. Then the role of rent-seekers is cut in stone. Each company will come and see a minister or a president and when they fail, there is always the deputy minister! And they feel power to shout at any technocrat who "delays" the granting of incentives. Labels them "opposition!" and wonders how the country could develop! What is funny is that the same incentive may have been drafted by the same technocrat that is now considered an enemy of the government.
  2. Lack of appreciating the system. One government comes in, condemns the whole technocratic system spoils the little progress made in the past, and then sets in to develop a better system with no idea what was bad in the previous system. The only people with access to both systems are the technocrats who can be a useful resource of knowledge and progressivity.
  3. Then the technocrat is thought of being a fool, when in actual fact only the technocrat knows who the fool is. Why not take the system, study it and improve on it? The one thing our brothers in the Western world have so wonderfully done.
So now with this problems highlighted, can our new government prevent politics into disturbing economics?

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