macroeconomics, growth, growth-theoryEconomists during the 1960s predicted the countries of Africa would be the next area to experience rapid economic growth. Africa is a continent rich in exportable natural resources and economists figured that these resources would fund industries and expansive growth in the region.
The poor countries in south-east Asia were considered limited growth prospects. They were heavily populated but with few natural recourses. As we know, these predictions turned out to be horribly wrong.
So, what did the Asian countries do that enabled growth while the countries of Africa have stagnated???
Expensive investment goods, low levels of education, poor health, adverse geography, closed economies, too much public expenditure and too many military conflicts are seen as key explanations of the economic tragedy [in Africa].
Google Scholar is a good source for answers to such curiosities. A next question that could be asked is what caused these above factors such as low levels of education and closed economies?
In "Acemoglu, Daron, and James A. Robinson. "Why is Africa Poor?" Economic History of Developing Regions 25, no. 1 June 2010 (2010): 21-50", the authors write:
Africa countries emerged at independence with a complex path dependent set of institutions that were probably even worse than those which they had at the time of colonization. It was these that precipitated authoritarianism, sustained economic decline and reinforced the poverty we see in Africa today.
Of course, the above are only a few aspects and a comprehensive survey and a detailed analysis needs to be carried out before reaching any meaningful conclusion.
I think Asian countries have better education system, One of the main reason why India has become outsourcing hub for IT and call center.
All content is licensed under CC BY-SA 3.0.