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This is a presentation about the current situation in Africa, using a report from 2005 and 2010. It was made for the subject 'raising business awareness between EU and Africa' that is teached by mr. Owusu at the Hochschule Deggendorf in Germany.
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General Overview of African Economics
Alieke Baeke
Introduction
Millenium Development Goals
Africa today
The history of Africa
What to do about these problems
Conclusion
I. Millennium Development Goals
Between 2000 and 2015
Encourage development– Improving social and economic conditions
8 goals
Help of the industrialized countries
I. Millennium Development Goals
II. Africa today
Link between political and economical development
Growth of 5 % in 2003
What’s going on?– Founding of a new entrepreneurship– A growing middle class
II. Africa today
Poorest region in the world
Income
Life expectancy
II. Africa today
II. Africa today
III. African history
Countries with high-value natural resources
Conflict: vicious circle
Other problems– Railways and roads of colonial times– Divided by western people– Lack of any geographic, ethnic or political c
coherence– Favourism of some groups– Cold war(1970s)
III. African History
III. African history
Faults– Not diversifying African economies away from
reliance on their primary commodies– Unattractive place to invest or keep money– In need of a healthy and skilled workforce
III. African history
African’s relationship with rich countries– Trade
• World trade from six to two percent• Industrial countries subsidize their agriculture• Taxes on goods exported to developed countries
III. African history
African’s relationship with rich countries– Debt
• Strong resentment• Incurred by unelected leaders• A lever to dictate policy• Difficulties paying interest, not even speak of the
capital
III. African history
Africa’s relationship with rich countries– Aid
• Ineffective, stolen or wasted• How to handle aid effectively?
Weak governance and absence of an effective stateReductions in poverty = economic growth
IV. Solutions
Why take action now?– Lots of people are dying needlessly every
day(actions for short-term survival)– The population of Africa’s exploding– The best chance to make changes
Other point of view on development
IV. Solutions
Weak government– Build capacity– Answer of the government to the people– In need of foreign investors
The need for peace and security– Invest in development = invest in peace – Building the capacity of the African states– Foundations for durable human security
IV. Solutions
Poverty– a healthy and educated workforce– Invest in African health and education– Increase funding water supplies
Reduction of growth and poverty– Public and private sectors need to work
together– Create an environment to attract investors– Investment in infrastructure
IV. Solutions
Trade– internal changes– reduce and simplify tariff systems– reform excessive bureaucracy and corruption
by public servants– dismantle the taxes against African goods– abolish unfair subsidies
IV. Solutions
Where will the money come from?– an additional $25 billon a year– one more additional $25 billion a year by 2015– Two conditions
• Good governance• improve the quality of aid and how it’s delivered
V. Conclusion
Improvements between 2005 en 2010– Growth rate of 6 percent between 2003 en 2008– Reform of the governments– Decline of violent conflict– Debt and aid have been relieved– Not on track to meet the millennium goals
V. Conclusion
Some countries are able to meet the goals and others are not.
Share of poor people declines but number of poor increases
Which kind of aid will be effective?
Does it matter whether Africa doesn’t have to pay back a piece of their loans?
Can Africa get through their own financial crisis?
What about countries that can’t meet their goals?
