Despite The Economist labeling Africa as “the hopeless continent” (McLure, 2012) as late as the year 2000, the sub-Saharan region of Africa continue to prove these words wrong, growing economically as a leading exporter of oil and natural gas. Technological advances, democratic governments, new economic policies and the support by the global community poise Africa to become a leading economy within the next decade (McLure, 2012). This economic growth poses some great problems, as to avoiding the “resource curse” and securing safe long-term job growth for developing nations and a growing population (McLure, 2012).
What evidence is there for a boom of economic growth in Sub-Saharan Africa? What four factors have been fueling this growth? According …show more content…
This “curse” leads to wealth in the hands of a few, and the nation as a whole staying in poverty (McLure, 2012). Experts have identified a few factors that lead to the resource curse. “Rapidly rising energy and mineral earnings tend to boost the value of the exporting country’s currency” (McLure, 2012). This leads to increased cheap imports of foreign goods, which while it may improve the lives’ of citizens, cripples the domestic economy and its ability to compete with foreign imports, both within the country, and outside of it at foreign markets (McLure, 2012). Furthermore, Governance suffers greatly, as public officials focus on capturing expanding export revenues rather than taxing citizens for public service, which results in an increase in corruption as a small amount of people have complete control over lucrative extraction licenses and contracts (McLure, 2012). Lastly, booms in exports caused by high global prices of natural resources can result in unchecked and careless government spending, which can backfire at the failure of the global economy, resulting in crippling national debt and crisis abound (McLure, 2012). Analysts agree that, In order to reverse the resource curse, sub-Saharan Africa …show more content…
Overall, the region shows great economic growth and potential, increasing by 5.1 percent in 2012 (McLure, 2012). Central Africa is rich with oil deposits and hauls in revenue with oil and natural gas exports, yet most of the money goes towards the 1%, and select political leaders, such as President Ali Bongo (McLure, 2012). This region looks economically hopeful, yet at the current outlook, disparity of wealth and corruption run rampant (McLure, 2012). Southern Africa is comprised of the continent’s most wealthy and economically integrated nations, flourishing economically from gem-trading (McLure, 2012). Exports to foreign nations (notably the EU and China) will help their slowly emerging economy, as they become a more developed collective region (McLure, 2012). West Africa is rife with political instability and poor living conditions, containing Niger, one of the worlds least wealthy nations (McLure, 2012). However, they are posed for great economic growth and prosperity in the years to come, as mining and oil operations advance within the region (McLure,
What evidence is there for a boom of economic growth in Sub-Saharan Africa? What four factors have been fueling this growth? According …show more content…
This “curse” leads to wealth in the hands of a few, and the nation as a whole staying in poverty (McLure, 2012). Experts have identified a few factors that lead to the resource curse. “Rapidly rising energy and mineral earnings tend to boost the value of the exporting country’s currency” (McLure, 2012). This leads to increased cheap imports of foreign goods, which while it may improve the lives’ of citizens, cripples the domestic economy and its ability to compete with foreign imports, both within the country, and outside of it at foreign markets (McLure, 2012). Furthermore, Governance suffers greatly, as public officials focus on capturing expanding export revenues rather than taxing citizens for public service, which results in an increase in corruption as a small amount of people have complete control over lucrative extraction licenses and contracts (McLure, 2012). Lastly, booms in exports caused by high global prices of natural resources can result in unchecked and careless government spending, which can backfire at the failure of the global economy, resulting in crippling national debt and crisis abound (McLure, 2012). Analysts agree that, In order to reverse the resource curse, sub-Saharan Africa …show more content…
Overall, the region shows great economic growth and potential, increasing by 5.1 percent in 2012 (McLure, 2012). Central Africa is rich with oil deposits and hauls in revenue with oil and natural gas exports, yet most of the money goes towards the 1%, and select political leaders, such as President Ali Bongo (McLure, 2012). This region looks economically hopeful, yet at the current outlook, disparity of wealth and corruption run rampant (McLure, 2012). Southern Africa is comprised of the continent’s most wealthy and economically integrated nations, flourishing economically from gem-trading (McLure, 2012). Exports to foreign nations (notably the EU and China) will help their slowly emerging economy, as they become a more developed collective region (McLure, 2012). West Africa is rife with political instability and poor living conditions, containing Niger, one of the worlds least wealthy nations (McLure, 2012). However, they are posed for great economic growth and prosperity in the years to come, as mining and oil operations advance within the region (McLure,