Capital flows in sub-Saharan Afica

Checked out two podcasts from the World Economic Forum's symposium on Africa. Neither were terribly substantive though its nice(?) to see that African journalists are as insular and self-absorbed as their western counterparts. Its an arrogance that comes from ignorance: reporters always think they're smartest people in the room but then they're always surprised. They discussed Barak Obama's victory over Hillary as an impressive hard fought campaign against a formidable veteran. Hillary didn't win but she managed to make herself look like the biggest second placer since Alydar.

One of the discussions largely revolves around Zimbabwe and ponders Mugabe's use of food aid as a weapon. Dude, he bulldozes houses in some of the poorest neighborhoods on the planet, you think he won't starve his enemies? This guy is a throwback to the days when dictator's could openly pillage. The UN may be a bureaucratic anachronism but occasionally giving worldwide attention to goons like Mugabe becomes an opportunity for other politicians around the world to pile on a guy less popular than they are. Turning our politicians into image-ific entertainers may yet be useful (but why is Mugabe still in power?).

Leadership that is beholden to the people would be a good place to start. European, American and Chinese interlopers traditionally have benefited from dictatorships around the world most specifically in Africa. The dearth of political opposition means your bribes are better spent, more efficient and in the hands of people who can actually get shit done. In a democratic system you gotta grease senators, judges, and other bureaucrats along the way--and you still may not get what you want! Power is dispersed in a democracy. This is why Mussolini thought Fascism was great for business. Until you realize that without an expanding consumer class, business grinds to a halt.

This new global realpolitik seems to be pushing for more transparency and an understanding that middle classes must emerge for economies to approach their potential. Hopefully leaders will see their people as their greatest asset rather than they're greatest threat. Hopefully capital investment will become more rational, more reliant on faithful and capable stewards of civic infrastructure rather than the greediest local power broker. Dictatorships limit civic participation and encourage fear and sloth, this is no good for the workers--who must become the consumers. Democracies encourage peaceful participation where societies may be built rather than ruled but they can only rise from an educated and motivated populace.

As the global economy grows it cannot survive simply writing off certain resources--namely humans! The global order must incorporate all populations. Africa has a long way to go to meet the demands of the global economy. But economic forces are driven by momentum (inertial) so any move in the right direction opens the possibility of advancement.

African Headlines Roundtable