Confronting Capitalism

Why do civil wars plague the African continent? Because many of the countries are headed by a dictator whose family takes most of the “goodies.”

most African countries established a socialist rather than a capitalist economic system with many state-owned enterprises (SOEs) to run the utilities, produce the steel and oil and other basic products, and carry on the commerce and trade of the nation.

The real cause of African poverty is bad African governance following independence, not colonialism.

Most African countries claim that Africa’s deep and persistent poverty is due to the years of Western colonialism and imperialism. This is more an excuse that African dictators propagate to stay in power.

The difference between economic growth and economic development is well illustrated by the African country of Angola, where the GDP grew by 20 percent and yet poverty increased substantially.

Still another theory blames poverty on the greed of the ruling elite. The theory starts by drawing a distinction between economic growth and economic development. You can have economic growth without economic development. Economic growth is a necessary but not sufficient condition of economic development. Economic growth simply means that the pie (measured by GDP) has grown bigger, but it says nothing about how the pie is divided.

to push the legal system to allow the monetization of these assets so the dead capital becomes alive.

Because these assets are not recognized, they create an extralegal style of living within their informal social circles.

poverty persists because the poor don’t own any fungible property or capital on which they could borrow money.

poverty continues to be a problem because of overpopulation.