The shackled continent

A new book has come out in stores this past week (not in Sweden yet sadly).
The Shackled Continent is an important book. Written by Robert Guest, Africa Editor of The Economist, it provides an illuminating account of why Africa is so poor. His conclusion is that sub-Saharan Africa is poor because it is shackled by poor government. Guest has spent six years reporting from Africa, and fills the book with accounts of what he has witnessed.

Guest argues for "fair aid, free trade". He explains how aid has often been wasted on arms, to provide luxuries for the ruling elite, and to be put away in Swiss bank accounts. African leaders sometimes call for a "Marshall Plan" to help Africa like the Marshall Plan that helped rebuild Europe after World War II. But, as Guest explains, Africa has already received the equivalent of six Marshall Plans, and yet is still poor.

Aid without economic reform, he shows, has a negligible or negative effect on economic growth. Free trade and economic reform without aid, however, dos lead to economic growth. A combination of reform and aid together brings the fastest growth. His book contrasts strong with politicized Western campaign groups like "War on Want" who counterproductively argue against economic reform.

If you have an opinion on why Africa is still poor then Robert Guests book is a good start to understand the mechanics of the poor continent. Compared to South East Asia where free trade has been embraced more readily and economies are in better shape than in Africa where most countries have nationalized companies and resources (Zambia).

If anyone suggests a nationalization and a command controlled economy in orde to reach prosperity, Guest annihilates that thesis with the comparison of Zambia (nationalized everything, currency control and gov't run economy) with Botswana (free trade and a liberal market economy).

Botswana has had the worlds highest economic growth over the last 35 years while Zambia only manages to get by with the help of foreign aid.

Sincerely
Mr Silence Dogood