FACTS TO CONSIDER:
- Approximately 46 percent of Africa’s debt is owed by the North African Nations while the remaining 54 percent of the debt is owed by the Sub Saharan African Nations.
- Only ten to twelve countries account for seventy five percent of Africa’s total debt.
- Over 60 percent of Africa’s debt is owed to official creditors such as the World Bank, The IMF and world leaders.
- The high interest rates alongside the cost to reschedule debt have forced Africa and other developing regions into a relapse of instability
The Heavily Indebted Poor Countries initiative (HIPC) was set up in 1996 to reduce the debt of the poorest countries. Poor countries are eligible for the scheme if they face unsustainable debt that cannot be reduced by traditional methods such as austerity and debt repayment. They also have to agree to follow certain policies of good governance as defined by the World Bank and the IMF. Critics of the scheme say the limitations are too strict and more countries should be eligible for HIPC debt relief. Fourteen African HIPC countries will have their debts totally written off under a new plan drawn up by the G8 by 2015.
Lack of Infrastructure
In most African countries, particularly the lower-income countries, infrastructure is a major constraint on doing business, and is found to depress firm productivity by around 40 percent. For most countries, the negative impact of deficient infrastructure is at least as large as that associated with corruption, crime, financial market and red tape constraints.
According to the World Bank, the continent’s infrastructure deficit is considered one of the most significant barriers to sustaining Africa’s growth.
Africa continues to suffer from low levels of agricultural ...
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... society.
The African states that have been able to achieve high growth rates are stable; stability means a predictable political environment, which in turn attracts investment, both internally and from outside. Political instability remains the biggest stumbling block for companies doing business in Africa, with countries such as Nigeria, the Democratic Republic of Congo and Angola seen as the most difficult countries to operate in. This is mainly because of the reluctance of foreign investors coming into countries with political instability to provide employment earn profits.
Civil society must also have the power to demand accountability from officials when they suspect corruption and waste, so transparency requires at least a basic level of participatory democracy in order to make a difference. In this regard, undemocratic countries face a particular challenge.
Corruption is a persistent problem that plagues the world and it knows no boundaries. Transparency International defines it as the “abuse of entrusted power for private gain” (2013). For the purposes of this thread, ‘corruption’ is defined as any individual, collective, or structural act or process that permits the use of public authority or position for private gain. This definition captures the broad and many ways individuals and institutions abuse power and the public trust. In regard to whistleblowing, much conflict stems from the context in which the whistleblower is viewed.
Sovereign lending, throughout history, has been marked by occurrences of partial default and repudiation by governments of all kind; from medieval princes to dictators to democratic regimes. In the 1970s lending to lesser-developed countries led to the rescheduling and partial defaults in the 1980s. Even the sustainability of the debt of nations such as Belgium, Canada, Italy and even the United States is not free from suspect.
The impact of the Structural Adjustment Programs imposed by International Financial Intuitions (IFIs) such as the World Bank and the International Monetary Fund on the developing countries of Africa has led to the destruction of Africa’s social sectors and has handicapped Africa in its fight with poverty, the AIDS pandemic, and keeping children in school.
Africa in all its existence to Europe has relied on others to decide what’s best for them. Africa is now in a Western style mode. This does not mean it should be there but it is now. The government has to start taking advantage of today’s capitalist economy. Money tends to keep people of all nations happier. With money everyone is guaranteed food, a home and a better chance at democracy.
Scholarly interest in transparency has enhanced our understanding of information sharing, accountability, and the removal of corruption, secrecy, and other kinds of misconduct (Flyverbom et al. 2016). Finel and Lord (1999) further argue that governments willing to provide data about policy actions and decisions are also more likely to permit better information flows of all kinds. Transparency, enabled by visibility, also has become a virtual stand-in for democracy by way of observation, clarity, and behavior (Flyverbom et al. 2016; Christensen and Cheney 2015). A fundamental part of democracy is, after all, consent from the public being governed, and that consent is not only without merit but ultimately meaningless if the public is not informed (Florini
What is generally misunderstood about Africa is the wealth available in its boundaries, and the misconception of the middle-class in the U.S. and other countries of a similar economic bent. Though nine out of the ten poorest countries are in Africa and all but three of the top twenty, there is a nearly zero homeless rate, and everybody seems to be doing just fine. However it used to be similar in every single so...
One of the most common misconceptions is that Africa is one large country. Africa is a continent made up of 54 countries, with each country different from the other in terms of political, social and economic structures. For instance, in political spheres, some African countries have heads of states who are kings. The monarchies of Africa include Morocco, Lesotho, and Swaziland. Some African governments are headed by a Prime Minister while others by a President. The 54 countries are all diverse and unique in their own way, and it is a
Overall Central Africa’s dependence on agriculture could improve the wellbeing of the people but a long history of corruption, violence, and prevalent transportation issues have hindered an improvement in the economy resulting in poverty among the region. Poverty will not subside unless these issues are dealt with and improved.
The next time period in which the unbalanced relationship between Africa’s resources and European and American financial interest can be shown though is from 1884 – to the late 1950s/early 1960s. This period was started by the Berlin Conference and ended with the civil rights movement and African countries’ independence movements. The Berlin Conference started a period of European colonization in Africa where European countries got together to “chop” up Africa with no consideration for cultural lines. The division of African countries effectively ended any potential conflicts and Europe that would be caused because of colonization clashes between countries, so this also effectively benefitted Europeans. But what was wrong is that Europeans took over and formed these new co...
...at development. Roads are not well developed in some parts of Africa which increase the transportation cost. Public investors are also not taking interest due to high cost of paved roads in Africa. The accident rate is also increasing as driving license is not compulsory for motorcycles. Health care facilities are also very less in Africa, which leads to deaths due to accidents and diseases. Less health workers, poverty, transportation problems all lead to less health care facilities which result in increase of death rates in Africa.
Many unsolved problems in many African countries, but the issue of the rise of corruption are disturbing, and the amends it has done to the polity are vast. The fear of fraud leads to restrict movement of documents in offices, slow traffic on the highways, port congestion, ghost workers syndrome, queues at passport offices, police extortion tollgates and gas stations, vote irregularities among others. Even the nutty people on the road remember the devastation caused by bribery - the funds allocated for their success disappear into some people pockets. Thus, some people believe corruption is the bane of many African countries. Corruption is the main obstacle to slow down, and knock African economy growing. The problem keeps happening in Africa, and the issue will hardly be solved.
Artadi, Elsa V., and Xavier Sala-i-Martin. The Economic Tragedy of the XXth Century: Growth in Africa. Cambridge, MA: National Bureau of Economic Research, 2003. Print.
Queiroz, Mario de. "AFRICA: A Continent of Orphans - IPS ipsnews.net." IPS Inter Press Service. N.p., 13 Dec. 2006. Web. 14 Jan. 2010. .
Africa is a continent with 54 countries and, it is the second largest and most populous continent after Asia. Africa is blessed with both natural and human resources. Among the natural resources include diamonds, salt, gold, iron, cobalt, uranium, copper, bauxite, silver, petroleum, cocoa beans, as well as woods and tropical fruits. Much of its natural resources are undiscovered or barely harnessed. However, through documentaries and stories, the media portray Africa in a way that people have a widely held and oversimplified image about Africa. So, some people see Africa not only as a country but also as a jungle where people live like animals and die in abject poverty.
Every citizen wishes to have a country where there is transparency. A transparency - that shows the unity and equality among the law, the officials and, of course, for its people is what most of them desire; that can somehow lessen the problems in supporting the needs of others; that helps to broadcast the income and the expenditures of the country; that warns its people that they are living in a democratic country; a way for the nation’s citizens to see the activities of the elected officials; and, of course, a key that somehow lessen the corruption in the government. However, even this transparency is being practiced the saddest part is that, not all officials are aware of this. This is the reason why corruption in the Philippines is one of the major dilemmas that they are still facing.