Friday, June 30, 2006

Is Africa's Economy Really getting Stronger?

"The Organization for Economic Co-operation and Development (OECD) estimates Africa's economy grew 5% last year, and Africa is expected to do even better this year and next." This quote from an article from the Economist seems promising for African development, but the author is responsibly skeptic about the recent up swing in Africa's economy. Recently, foreign interest in Africa has increased due to Africa's growing oil production. Also, foreign debt relief and aid has increased, in part due to more trust in African government responsible spending. But, one must not jump to conclusions that Africa is on its way to economic stability. As the article points out, Africa's economy has had upswings in the past, and they were partly due to commodity prices, weather conditions and increased aid, but Africa cannot control these factors. So although it might look promising for Africa, one must be weary of the causes of the recent economic upswing. Also, one must not forget, despite overall improvements, African governments still have yet to provide efficient schools, roads, healthcare and other basic needs that they could be providing. The article ends by making a good point that, "despite improvements here and there, it [Africa] still sorely needs accountable and honest governments that people can freely eject when they fail. The current economic upturn, from a very low base, offers a rare chance for governments to build for the future while the going is a bit better. Hold your breath." The level of skepticism in the article is the proper way to handle Africa's recent growth. It would be naive to assume Africa is rapidly on its way to sufficient government and economic development. We can be happy that things in Africa are looking somewhat better, but we should not jump to conclusions, for a lot still needs to happen in terms of African development.

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