African Economics or Why Africa is poor

Geographic Pros & Cons Most of Africa’s major rivers are not navigable due to rapid changes in elevation Most of Africa’s major rivers are not navigable due to rapid changes in elevation About ²/ 3 of Africa is either desert or tropical rainforest, i.e. not arable About ²/ 3 of Africa is either desert or tropical rainforest, i.e. not arable Africa does have many natural resources & natural wonders Africa does have many natural resources & natural wonders

Colonialism Africa was colonized late by European countries. Africa was colonized late by European countries. The Berlin Conference of 1884 divided up Africa amongst the major European powers with no consideration for the cultural boundaries already in place. The Berlin Conference of 1884 divided up Africa amongst the major European powers with no consideration for the cultural boundaries already in place. This would lead to great political instability later. This would lead to great political instability later.

Ethnocracy A government where one ethnic group holds most government positions. A government where one ethnic group holds most government positions. The dominant group uses that power to advance its position over other ethnic groups. The dominant group uses that power to advance its position over other ethnic groups. This has resulted in ethnic conflicts and in some cases, genocide. This has resulted in ethnic conflicts and in some cases, genocide.

Colonial Economies The main purpose of colonies were to provide raw materials for the home country to process into finished products. The main purpose of colonies were to provide raw materials for the home country to process into finished products. European powers never focused on building factories or economic infrastructure in Africa. European powers never focused on building factories or economic infrastructure in Africa. What problems do you think this might cause? What problems do you think this might cause?

Primary Activities Most African countries have continued the same economic course set by Europeans. Most African countries have continued the same economic course set by Europeans. This leaves most African countries stuck in the primary stage of economics. This leaves most African countries stuck in the primary stage of economics. It’s difficult for African nations to make the jump to the next level because of political instability and the lack of capital resources. It’s difficult for African nations to make the jump to the next level because of political instability and the lack of capital resources.

Primary Problematics Many African nations rely on a single crop or raw material as their main export. Many African nations rely on a single crop or raw material as their main export. 1. Extracting raw materials doesn’t bring in as much money as producing goods & services. 2. Due to the lack of diversity, economies based on primary activities are much more vulnerable to changes in demand & prices.