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David Cameron undertakes trade mission on his trip to Africa
by Joseph Ernest July 17, 2011
Newscast Media LONDON, England --As he pushes the message that trade, not aid is the key to Africa's future prosperity, David Cameron has embarked on a two-day trade mission in sub-Saharan Africa. The Prime Minister said trade deals - and an African free trade area - would do more to lift tens of millions out of poverty.
In an article he wrote in South Africa's Business Day, Cameron said: "Trade and enterprise have the power to change lives. What will lift tens of millions out of poverty in the long run is economic growth. And that means African countries buying from and selling to each other, doing business with one another and the world. The key to Africa's progress is not just aid. What will save far more lives and do far more good is an African free trade area. It is time for some fresh thinking.
"With a strong and unified voice in global trade, Africa can deliver a better deal for its citizens, and be a significant driver of growth for the world in future. We need political leadership from all of Africa's leaders to achieve this. As they show the vision and will to get this done, so real leadership is required from the rest of the world. Trade rules must be open and fair to all. When the Group of 20 meets in November, we will press for duty- and quota-free market access for the poorest countries, for sustained commitment to a global trade deal.
"Never before has there been a time quite like this. The economic revolution under way has brought within reach the steps to eradicate poverty in Africa. It is now possible to imagine an Africa no longer dependent on aid, and a source of growth for the world. And the road to get there lies through freeing up the wealth- creating power of enterprise and trade.
"This challenge falls to our generation of leaders. For too long borders have been allowed to hold Africa's people back. It is time to make African free trade the common purpose of the continent and the world. To set Africa on a path to prosperity and stability would be a wonderful legacy from our generation to the next," he said.
However, Cameron seems to get it wrong when he says, "What will lift tens of millions out of poverty in the long run is economic growth."
There has always been economic growth in Africa, but the economies are being managed by the wrong people, since the majority of Africans live in police states. When there are a few people in the highest echelons of power who control the wealth, it is impossible for the average citizen to rise above poverty without being well-connected. In order to be relevant governments in police states create a state of dependency between themselves and the citizens.
It would be almost impossible for a private citizen to get a permit to build a power station to supply electricity in rural areas, because most electricity-generating plants are state-owned and would not welcome that kind of competition. There are several types of power plants that could supply electricity to villages or small-scale farmers like, thermal power stations, coal-fired power stations, (about 50 percent of electric generation in the USA is produced by coal fired power plants), there are also biomass-fueled power plants and solar thermal power plants that are less costly than hydro-electric power plants, and take a relatively short time to construct.
Privately owned media companies in police states are also under continual threat in Africa, and journalists are constantly being harassed for doing their jobs. If one is a journalist in Africa and has never been arrested, one hasn't yet been initiated into the profession. How can an individual be able to generate wealth or contribute to economic growth, if his or her own government is holding him or her hostage and cannot practice the very profession that helps pay the bills?
How can doctors or medical practitioners expand their practices if they are constantly being accused by their very own governments of stealing drugs from hospitals, and re-selling them in their private clinics?
How can agriculturalists, enjoy the fruits of their labor if large chunks of land are being sold off to foreign investors, while the locals are being evicted from these plots of lands?
How can fresh college graduates get employment if they do not belong to a certain tribe, or have uncles who have ties to the military industrial complex?
Cameron doesn't understand how Africans think or their state of mind, so it is easy for him to make simplistic statements that may work in the U.K. but would fail in Africa. The key to growth is to break up economic monopolies, much in the same way we have antitrust laws in America that prohibit anti-competitive behavior, and encourage competition in the marketplace. Small business owners would then have the same opportunities that are given to foreign investors to compete in the marketplace.
Landowners and farmers would start their own cooperatives knowing that their properties would not be sold off to the Chinese. These business organizations would be owned and operated by a group of individuals for their mutual benefit, creating less dependency on government for assistance or on foreign aid.
Unfortunately if one were to dig deep into the maze, one would discover that a high percentage of profitable privately-held businesses are owned by government officials, that's why African presidents are the some of the richest people in the world. Most treat their countries like their personal real estate. As such, it would not be in the best interest of a police state to encourage an economic revolution among its citizens because they (government officials) would run themselves out of business.
Cameron's visit will include South Africa and Nigeria as he promotes trade within the continent. Add Comments>>
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