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Luddite
I watch Fox News


Registered: 03/23/06
Posts: 2,946
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Only capitalism can save Africa
#7707791 - 12/02/07 06:27 PM (16 years, 1 month ago) |
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At last, instead of constantly rewarding the poor for their poverty, people have woken up and realized that only capitalism can save Africa from poverty.
Can Greed Save Africa? Fearless investing is succeeding where aid often hasn't
Quote:
In many ways, Africa's economic situation seems hopeless. While $625 billion in foreign aid has poured in since 1960, there has been no rise in the region's per capita gross domestic product, notes William R. Easterly, economics professor at New York University. What's more, from 1976 to 2000, Africa's share of global trade dropped to 1%, from an already negligible 3%. The U.N.'s scale of human development, which considers health, education, and economic well-being, ranks 34 African nations among the world's 40 lowest. Thus far, foreign aid hasn't made a dent.
Greed, however, might. Thanks to the global commodities boom of the past few years, sub-Saharan Africa's economies, after decades of stagnation, are expanding by an average of 6% annually—twice the U.S. pace. And like bees to honey, investors are swarming into the region in search of the enormous returns that ultra-early-stage investments can bring. Blue Financial, for example, has already netted its early private equity backers a ninefold gain thanks to the 385% rise in its stock since its October, 2006, initial public offering in Johannesburg. Emerging Capital Partners has bought all or part of 42 African companies this decade and cashed out of 18, with gains on their investments averaging 300%. "The money we can make is matchless," says Emerging Capital Partners CEO Thomas R. Gibian, a former Goldman Sachs (GS) banker.
The region's public stock markets are attracting foreign investors, too.
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Many African leaders have come to regard private investment as the only route to sustainable economic development. "Investors put their money down for what they will get as a profit," says John Agyekum Kufuor, Ghana's President, in his palace in the capital city of Accra: "It's business." Botswana President Festus Gontebanye Mogae even appealed directly to private equity and hedge fund managers during a September trip to New York. Over time, these leaders hope, the benefits accruing from private investment will give locals more of a vested interest in the permanence of historically volatile institutions—governments, currencies, banks—and put sub-Saharan Africa on a path to self-sufficiency. But for that to happen, the region must first prove that it can be hospitable to cold-eyed investors.
Masoud Alikhani is no moral crusader; he thinks the "We Are the World" movement of the 1980s, which sought donations to end African hunger, "made beggars of whole nations." The burly 66-year-old is among the new wave of investors at the tenuous nexus of venture capital and agribusiness in Africa. Five months ago he pitched a large hedge fund in New York on the merits of ESV Biofuels, as his company is called. The fund's partners agreed to take a tour of the facility in January. "We are capitalists and opportunists," says Alikhani. "We are doing this to make money. That's the only way to help."
A lot more here: http://www.businessweek.com/magazine/content/07_50/b4062046700574.htm?chan=magazine+channel_top+stories
Edited by Luddite (12/02/07 06:30 PM)
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Luddite
I watch Fox News


Registered: 03/23/06
Posts: 2,946
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Re: Only capitalism can save Africa [Re: Luddite]
#7707850 - 12/02/07 06:37 PM (16 years, 1 month ago) |
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zappaisgod
horrid asshole


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Re: Only capitalism can save Africa [Re: Luddite]
#7707885 - 12/02/07 06:46 PM (16 years, 1 month ago) |
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But don't ya know, imposing West European imperialist ideology doesn't properly take into account their culture, which will no doubt be over-run by the running dogs of white supremacist thought? Oh, the humanity!
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Silversoul
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Re: Only capitalism can save Africa [Re: Luddite]
#7707953 - 12/02/07 06:57 PM (16 years, 1 month ago) |
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A free market is important, no doubt. Equally important is effective land reform that distributes the benefits of capitalism broadly amongst the general population. The key is to distribute the benefits of progress amongst the population while avoiding the pitfalls of socialism.
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zappaisgod
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Re: Only capitalism can save Africa [Re: Silversoul]
#7707986 - 12/02/07 07:02 PM (16 years, 1 month ago) |
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Like Zimbabwe?
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Silversoul
Rhizome


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Re: Only capitalism can save Africa [Re: zappaisgod]
#7708030 - 12/02/07 07:12 PM (16 years, 1 month ago) |
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Quote:
zappaisgod said: Like Zimbabwe?
That is a good example of a power grab disguised as genuine land reform. The best land reform efforts do not confiscate the land, but create economic disincentives for land monopolization.
http://en.wikipedia.org/wiki/Land_value_tax
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zappaisgod
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Re: Only capitalism can save Africa [Re: Silversoul]
#7708071 - 12/02/07 07:19 PM (16 years, 1 month ago) |
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Non-sequitur?
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Silversoul
Rhizome


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Re: Only capitalism can save Africa [Re: zappaisgod]
#7708128 - 12/02/07 07:32 PM (16 years, 1 month ago) |
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Excuse me?
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Seuss
Error: divide byzero



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Re: Only capitalism can save Africa [Re: zappaisgod]
#7709722 - 12/03/07 06:01 AM (16 years, 1 month ago) |
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> Like Zimbabwe?
Zimbabwe isn't a good example of a free market because it isn't a free market. Zimbabwe is a good example of what happens to a free market when government gets involved and starts to regulate market forces... such as redistributing ownership of land, fixing prices of goods, etc. The sanctions against Zimbabwe also take away from the free market concept.
-------------------- Just another spore in the wind.
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zappaisgod
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Re: Only capitalism can save Africa [Re: Seuss]
#7711304 - 12/03/07 02:46 PM (16 years, 1 month ago) |
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Any land reform is de facto anti-capitalist. Rhodesia had been capitalist. Of course, only white people played but still they competed against each other. Now? Nothing. Any gummint incentive/disincentive amounts to some form of a taking, although it can often be quite small.
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Silversoul
Rhizome


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Re: Only capitalism can save Africa [Re: zappaisgod]
#7711320 - 12/03/07 02:49 PM (16 years, 1 month ago) |
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Quote:
zappaisgod said: Any land reform is de facto anti-capitalist. Rhodesia had been capitalist. Of course, only white people played but still they competed against each other. Now? Nothing. Any gummint incentive/disincentive amounts to some form of a taking, although it can often be quite small.
By that measure, any kind of tax is anti-capitalist, and thus capitalism is indistinguishable from anarchy. I don't support anarcho-capitalism, and I know you don't either. What I'm talking about here is reforms within realistic capitalism.
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zappaisgod
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Re: Only capitalism can save Africa [Re: Silversoul]
#7711354 - 12/03/07 02:56 PM (16 years, 1 month ago) |
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I don't necessarily equate absence of taxation with anarchy but you're right, any taxation on a non-equal basis is anti-capitalist. Of course, if everyone is taxed exactly the same...... I don't think that's a particularly good idea either but my point is nonetheless true that managing capitalist structures does amount to a form of taking. I appended no particular value judgment to the practice as a whole, just pointed out a fact.
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DreamSignals
Morphogenetic Truth


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Re: Only capitalism can save Africa [Re: zappaisgod]
#7712222 - 12/03/07 06:08 PM (16 years, 1 month ago) |
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I find this whole discussion ironic since it was a capitalistic enterprise that put them in the situation they need to "be saved from".
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Do what thou wilt shall be the whole of the law. (93) Love is the law, love under will. (93 93/93)
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SlashOZ
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Re: Only capitalism can save Africa [Re: Luddite]
#7712327 - 12/03/07 06:34 PM (16 years, 1 month ago) |
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only africans can save africa. if they choose capitalism to do so then so be it but i wouldn't chalk up a point in the capitalist column just yet. africa has a long road to being on the same level as the western world.
-------------------- "Life sucks but in this really beautiful way" - Axl Rose "Life's a bitch and then you die that's why we get high cuz you never know when you're gonna go." - NAS "When people don't know what you're about they put you down and shut you out" - Black Sabbath "An eye for an eye makes the whole world blind" - Gandhi "Look up at me I am God, look down on me and I am evil, look at me I am you." - Charles Manson. "Don't question my reality." - Me (as far as I know)
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Silversoul
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Re: Only capitalism can save Africa [Re: DreamSignals]
#7712337 - 12/03/07 06:38 PM (16 years, 1 month ago) |
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Quote:
DreamSignals said: I find this whole discussion ironic since it was a capitalistic enterprise that put them in the situation they need to "be saved from".
Well, it was imperialism and colonialism, which Marxists argue are natural extensions of capitalism. I don't quite agree, especially considering that the Soviets engaged in some imperialism of their own. In fact, throughout the Cold War, much of Africa served as a battle-ground of ideology between the US and Russia, where each side tried to put their guy in power and topple the other guy.
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DreamSignals
Morphogenetic Truth


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Re: Only capitalism can save Africa [Re: Silversoul]
#7713321 - 12/03/07 10:29 PM (16 years, 1 month ago) |
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Quote:
Silversoul said:
Quote:
DreamSignals said: I find this whole discussion ironic since it was a capitalistic enterprise that put them in the situation they need to "be saved from".
Well, it was imperialism and colonialism, which Marxists argue are natural extensions of capitalism. I don't quite agree, especially considering that the Soviets engaged in some imperialism of their own. In fact, throughout the Cold War, much of Africa served as a battle-ground of ideology between the US and Russia, where each side tried to put their guy in power and topple the other guy.
Although I don't favor either side (that is imperialistic capitalism vs. communist dictatorship, and take into consideration it isn't so black and white), I would argue that the things that led towards the formation of the Soviet Union stemmed directly from resentment of the capitalistic way of life, and that Africa was already well into their hole of misery from monarchies exploiting their people and resources. But how can capitalism really save anyone? If anything it is the destruction of us all. The system itself is designed upon competition and productivity, in an infinite loop that assumes the resources are of the same nature, infinite.
Interesting article I stumbled upon not that long ago. http://www.guardian.co.uk/environment/2006/feb/02/energy.comment
Edit: Also let's make something VERY CLEAR:
Marxism =/= Stalin
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Do what thou wilt shall be the whole of the law. (93) Love is the law, love under will. (93 93/93)
Edited by DreamSignals (12/03/07 10:30 PM)
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fireworks_god
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Re: Only capitalism can save Africa [Re: DreamSignals]
#7713903 - 12/04/07 03:01 AM (16 years, 1 month ago) |
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Quote:
DreamSignals said: But how can capitalism really save anyone? If anything it is the destruction of us all. The system itself is designed upon competition and productivity, in an infinite loop that assumes the resources are of the same nature, infinite.
This isn't true. The marketplace is increasingly seeking out new innovation to make alternative sources of energy more cost-effective, so that they may profit. As a resource becomes less available, the cost increases in the marketplace. It isn't government regulation that prevents a disaster regarding too much usage of resources, or too much strain on the environment, either - its public opinion, awareness. Whoever serves the customers most effectively gets their money. If the customers want their house to be powered by solar energy or anything sustainable because they are concerned about the environment, then you bet your ass that there are firms out in the desert right now, constructing an arrangement of mirrors that reflect light into one concentration to make collection of solar energy more efficient than using cells, for example.
There is incentive for the marketplace to effectively respond to the dynamic nature of the market.
Capitalism can save the environment better than government regulation can. In fact, the most effective thing the government is to not stand in the way, giving tax-incentives, and not subsidies.
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If I should die this very moment I wouldn't fear For I've never known completeness Like being here Wrapped in the warmth of you Loving every breath of you
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Silversoul
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Re: Only capitalism can save Africa [Re: fireworks_god]
#7714925 - 12/04/07 11:24 AM (16 years, 1 month ago) |
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Quote:
fireworks_god said: In fact, the most effective thing the government is to not stand in the way, giving tax-incentives, and not subsidies.
Well, yes and no. I think the Clean Air and Clean Water acts have been a great benefit for America. But to give a better idea about government's role in the environment, let's look at alternative energy. The government definitely should not be in the business of picking winners, as they're doing with corn ethanol. That is a function best left to the market. However, the government can set higher fuel and emissions standards for cars, trucks, and SUVs, and then let the market figure out how to meet them. So it should be with most areas of the environment. In terms of air quality, emissions trading has been a pretty good idea, though there should be some adjustment for location. In general, the government should use a light touch when trying to influence the market in an eco-friendly way, but that's not to say that they should just get out of the way.
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