“One of the great tragedies of 20th century Africa is that socialism was associated with anti-colonialism, whereas capitalism was believed to be imperialistic- and therefore colonialist by nature.” – The Heart of a Cheetah
By 2022, 4.25 percent of the world’s population in the United States had created over 30 percent of the world’s wealth, while Africa with four times the population has produced little more than 1 percent. Why Africa remains poor while America is rich seems to be a problem without an answer. While Africa is rich in prized natural resources with 30 percent of the world’s mineral reserves including 40 percent of gold, and 90 percent of platinum, increasing demands have done little to add to their bottom line. In energy production, Africa also holds 12 percent of oil and 8 percent of natural gas reserves. But resources alone are not enough.
Sound and lawful government, the preservation of traditional institutions, and the continuation of economic freedom are more important to the success of a nation than blessings of natural resources, as Hong Kong and Africa, so obviously reveal. Hong Kong, one of the wealthiest and freest nations on earth, receives almost all its supplies from imports; while Africa, rife with endowments, continues to be mired in corruption and international dependence. Although, once a believer in markets and trade, Africa seems to be losing the same struggle between capitalism and socialism that the Western world battles every day.
In Magatte Wade’s 2023 book, “The Heart of a Cheetah”, Wade, a Senegalese-born entrepreneur, once again attempts to answer the age-old question of why the West is rich, and Africa is not. Clinging to the bitterness of colonialism and the false hope of socialism to solve their poverty, Wade instead, endeavors to sway Africans to return to their birthright of entrepreneurship and free markets, while shunning the empty promises from the West. With Africa set to reach a quarter of the world’s population by 2050, its ability to contribute to global wealth is increasingly important to the world.
It was Ghanan economist George Ayittey, in his 2005 book, “Africa Unchained”, who first blamed socialist planning, not colonialism or white oppression, for the chronic poverty of African nations. Coining the terms “Cheetahs” and “Hippos” to differentiate between the capitalist-driven generation and the old guard of time long past, Ayittey recalled how free markets existed in Africa long before colonialism. But colonialism didn’t just screw up borders, it brought to African nations the idea of centralized government along with a socialist Marxist ideology that has stymied Africa’s resurgence ever since.
Precolonial Africa operated under a decentralized structure with family ownership and local initiatives separate from tribal governments. Free trade, free enterprise, and private markets were part of the traditional institutions, where capital came primarily from either family or credit systems, and not a reliance on outside sources often with strings attached. Unfortunately, colonialism was only the first hurdle for Africans to overcome, as an era of dictatorship followed national independence for many African nations, with state interventionism and international development planning directing the economic and political systems.
With the crony socialist Hippos stuck on blaming colonialism and oppression that resulted from Western rule, many happily adapted to the aid industry, often benefiting from its continuation. As such, the Marxist ideas of oppressor and oppressed continue to be used as an excuse for Africa’s lack of performance, choosing statism, and ongoing international aid as an elixir for all of its problems.
The new generation of Cheetahs, young enough to have only read of colonialism in schoolbooks, instead, recognize the corruption of African dictators, who intercepted aid money and sold natural resources for their own gain while ignoring the poverty of their people. Understanding how a growing government bureaucracy and chronic interference from the West continue to hold back their countries, these entrepreneurial-minded innovators reject the empty benevolence of the government in support of the private sector and businesses understanding that success or failure is in their hands.
Most importantly, Wade reveals her own struggles to start a business in Africa. Unable to overcome the mountain of red tape, excessive regulations have caused 90 percent of African workers to operate in an informal sector outside the legal system, with bribery and corruption the unwelcome consequences of bypassing impossible government hoops. To remedy the situation, Wade suggests start-up cities focused not only on improved infrastructure but by making business creation easier, understanding that open markets will allow Africans, once again, to compete in the world markets. Using private property rights, new businesses, and a thriving jobs market can provide the economic development necessary to rebuild Africa from its roots up rather than the top-down demands of international agencies.
Akin to the United States, Africa is home to 54 independent community-based cultures and nations. Rather than approaching Africa with Western solutions, what is needed is a uniquely African approach. And like the US, the government in Africa has proven to be the problem rather than the solution. Wealth comes from jobs, which come from businesses, and an environment where economic development can grow and prosper.
Africa is poor because it is not free. And Africa is not free, because world governance has kept it dependent on foreign aid, hand-outs, and Western-style planning. Returning to their foundational traditions is the only way Africa can survive and thrive.
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