unnamed (2)Kingsley Moghalu

Worldviews matter enormously, because their outcomes are never neutral. Indeed they are often reflected in or as world orders. Although initially subjective, they can with dogged application result in ?objective? reality. The transatlantic slave trade was a world order based on a worldview ? repugnant as it was ? of the ?superiority? of slave owners and the ?inferiority? of the enslaved peoples. Emancipation and the abolition of slavery was also based on another worldview, and the hardiness of the worldview of the transatlantic slave trade, faced with a strong opponent in abolitionism, transmuted into colonialism in order to ensure and continue the economic benefits of the exploitation of Africa and the Africans.

Thus, the projection of these worldviews, backed up by the sustained deployment of certain comparative advantages such as military prowess based on technology, established realities that are accepted as ?facts of life?. This has been demonstrated in diverse climes such as the Western world, with its worldview of scientific rationalism and individual freedoms leading to economic progress along a certain model, and the East, which has risen, represented by China, along another model of stability as an end in itself, and the importance of the clan or society above the individual.
From this foundation we can then situate globalization, its impact on Africa?s economic trajectory, and why Africans need to engage the phenomenon from a somewhat different and more sophisticated standpoint.?Globalization is the process of increasing interconnectedness of the economies of?previously well demarcated nation-states; the phenomenon of the instant transmission of ideas, events and culture over long distances through the instrumentality of technology, and the impact of these processes on local environments.
Thus, for our purposes here, there are two highly relevant dimensions of globalization. The first is that it has two main elements, the economic and the social, with technology as its chief instrument. This is why we all believe that the internet has made the world a much smaller place, and Africa now has over 600 million mobile telephone users, more than the United States and Europe.

Second, a more comprehensive understanding of globalization must involve both its scope and its motives. We must go beyond issues such as the extent and the geographies, the boundaries of which have been breached by globalization, to the questions of who is globalizing and why. This is what has been termed ?global intent? or strategic intent, without which globalization will not be what it is and would not have had the economic and other impacts it has had.
Economic globalization has, in fact, hurt Africa more than it has helped the continent, contrary to the received wisdom. The gains for African countries from opening up to international economic forces without adequate internal preparation have been limited and far outweighed by the adverse of the continent?s engagement with economic globalization. Economic policies enunciated by the Bretton Woods institutions in the 1980 and 1990s led to lost decades of development opportunities and outcomes. Structural adjustment and liberalization without the proper foundations as a core condition led to the effective de-industrialization and unproductiveness of the continent by weakening the manufacturing sector and promoting import-driven economies. Trade liberalization under WTO regimes has not brought benefits. It has removed incomes from tariffs that have not been replaced by effective internal revenue mobilization.

It is against this backdrop ? that of an uncritical embrace of globalization and its institutions or agents in the mistaken belief that these forces are benign in intent or impact, or agnostic in belief, or that African countries are obliged to do so as members of a presumed ?international community? or ?global village? ? that Africa?s ?rise? must be evaluated. The road to progress begins with asking and answering the right questions, and African countries must do so. Who is responsible for Africa?s development? Who will shape Africa?s destiny? The answer: Africans and no one else. Not foreign investors; not development ?partners?; not the supposed international community; not foreign aid.

Nevertheless, one of the paradoxes of globalization is that the phenomenon has so opened up the world and its inhabitants to each other that the prospects and opportunities economic advancement are now almost universal. This process, underpinned by the invention and innovation of industrial technology, is not a secret. It is open to any country or region of the world that is prepared to harness it. Perhaps the secret lies in what?s beneath the surface ? the full understanding of all the dimensions of that process and the preparation to harness the recipe. It does not have as much to do with presence or absence of natural resources, with Africa is endowed more than any other continent. If it did, Africa would be the richest continent rather than the impoverished one it has been for far too long.

Paths to Economic Transformation
The first application of these fundamental understandings to take a very clear-headed approach to capitalist economics, the paradigm through which virtually all African states are now seeking to develop in the aftermath of the Cold War and the collapse of communism and socialism.? Most of the growth of Africa?s economies is driven by the private sector. That?s ok, but not unreservedly so. To be clear, I am a capitalist.

But, to drive real economic transformation, capitalism must be managed by the state in a number of ways. The first is that clear choices must be made between the different kinds of capitalism ?indeed there must exist in African governance and public policy an understanding of these different strands, and the implications of each as a possible choice for each African country. Thus, African states must choose between state capitalism as practiced by China, welfare capitalism, crony or oligarchic capitalism, and entrepreneurial capitalism. I recommend a blend of at least two of these according to the peculiarities of each African country, but have a bias for?entrepreneurial, small-business capitalism because that is what most suits Africa?s historical development, societies, and its large informal economies.

Second,?African countries must revisit the role of the state as a guiding hand as opposed to the misguided abdication of the responsibility of the state to the private sector. This creates wealth but with too much inequality in the distribution of that wealth, which is in itself a long-term risk. There must be a public-private approach to the three fundamental requirements for successful capitalism ? access to finance, property rights, and innovation.

The next step in the application of fundamental understandings is that African countries must embrace industrialization. This imperative also extends to the industrialization of agriculture, a mainstay of many African economies but presently largely at a subsistence level. It would be foolhardy to be caught in the fanciful conceptual trap of a supposed post-industrial society that is assumed to have developed in the West, with 3-D manufacturing supposedly threatening traditional industries and service economies challenging manufacturing ones. Africa must first create industrial societies because that is what creates jobs, which African countries need to outpace population growth and maintain economic growth and social stability by avoiding a youth bulge in the future. Moreover, 55 per cent of world trade is based on manufacturing, while 7 per cent is based on agriculture.? And massive infrastructure networks of electric power and transport infrastructure connecting the continent?s countries to one another and their component parts have rightly been recognized as a priority by many African governments which are moving to create such infrastructure over the next decade.

The next two key drivers of economic transformation are science, technology and innovation on the one hand, and education and human capital development on the other. Both must be linked.? African countries need to make technology and innovation a strategic priority from the standpoint of a worldview that Africa can invent and innovate, and must do so if it is to liberate itself from the oppressive dominance of globalization. Some African countries such as Kenya are making strides in the development of innovation with the development of an ambitious, $15 billion ?silicon savannah? in Konza, a 2,000 hectare city 60 kilometres outside Nairobi that is designed to turn Kenya into an attractive location for technology businesses and incubators, and challenge South Africa?s dominance in this area.

Science, technology and innovation is one of the main paths which Africa can exploit to make a great leap forward in the world economy. Talent abounds in the continent, but African governments need to create an enabling environment for innovation and create incentives, institutions and markets to support it. Here the link between innovation and taking innovations to market as commercial products that are priced competitively to counter imports is key. Human capital development in which African countries improve the falling quality of education in several countries and focus on education that builds technical and technological skills that are linked to industrial policies and job-creation strategies will play a major role in economic transformation.

Governance, Leadership and Institution-Building
The intervention of military governments in most African countries in the three decades between the 1960s and the 1990s set back the hand of the clock in Africa?s economic development because it led not to benign dictatorships that drove economic development as happened in some Asian countries, but to the restriction of the space for the evolutionary development of good, accountable governance.? With the return of virtually all African countries to democratic status, this challenge remains, alongside that of economic development.

Governance and leadership determine to a large degree how much progress a country can make on the economic front. If the governance of an African country is based on the search for the economic progress of citizens, and the effort is well directed and managed, economic transformation can occur. But if governance is based on rent-seeking and competition for the spoils of public office, the resources of the state will be drained far more than real wealth can be created, in which case the dividends of democracy become questionable.

The best way to utilize governance as a tool for creating the wealth of Africa?s nations is for governments to create a number of paradigm shifts through public and economic policy. These include the establishment of economic complexity through an industrial policy that supports manufacturing. Countries such as Nigeria and Ethiopia are making progress in this direction. Building strong, independent institutions that will ultimately have a positive impact on economic activity by assuring the rule of law and protecting investments from arbitrariness, and creating a level playing field for economic actors is also critical. Another fundamental requirement of good governance as a wealth creator is the manufacturing of consent of the citizens to a vision of economic transformation to which a nation?s collective energies can be channelled in a united manner.

The difference between the wealth and poverty of nations, their success or their failure, lies in the existence or absence of strong institutions. Institutions, when they function well, function dispassionately as systems that make predictable decisions based on benchmarks and thresholds that are clear to all. They serve to remove the system of economic incentives from the tyranny of the whims and caprices of individuals. Where institutions are weak and caprice reigns, there will be little or no progress because there is no meritocracy. Rewards are aligned not to creativity or productivity, but along lines of unproductive patronage networks that sustain political power but do not create wealth for a nation. A society that functions in this paradigm is fundamentally unable to transform its economy because the playing field is not a level one. Rent-seeking is rampant, but creates pools of plenty for the tiny few that are linked to the patronage network within vast pools of poverty.

The manufacture of consent is absolutely essential for economic transformation in Africa.? Because development is the result of the deployment of creative talent and economic activity in a productive direction, it is necessary for African governments to define economic policy visions and directions and obtain the buy-in of the citizens to such a vision. We have seen this approach utilized by every dominant economic power in the world, whether it is the United States which applies a free-market oriented economic culture or China, which has achieved massive leaps in economic development in the past 30 years through an adaptation to state-directed capitalist activity while maintaining the dominance of the Communist Party. In all instances, this has been achieved through propaganda and mass mobilisation.

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