I applaud President Obama’s promise to address the underlying problems in Africa, yet I wonder: was the speech a true declaration of a commitment to institutional change, or simply a continuation of status quo?

Elena Panaritis, former World Bank economist, current director of the Panel Group, and one of the few practitioners in institutional economics, eloquently outlines the critical impact of secure property rights and formal markets in her book “Prosperity Unbound.” Panaritis notes that lasting, positive change depends on a nation’s institutional foundations, namely a respect for private property and rules representing the social contract – that define how property is secured. Transforming informal to formal property rights has the potential to unlock billions of dollars in assets and encourage investment and entrepreneurship, as Obama himself noted in this address. In short, strong institutions are a must for economic and social development. They provide the foundation for lasting growth and poverty reductions and will effectively determine the impact of Obama’s $63 billion aid commitment. With the opportunity to make a lasting impact on the lives of Africans, Obama must lead the charge toward institutional reforms and real positive change.

I applaud President Obama’s promise to address the underlying problems in Africa, yet I wonder: was the speech a true declaration of a commitment to institutional change, or simply a continuation of status quo?

Elena Panaritis, former World Bank economist, current director of the Panel Group, and one of the few practitioners in institutional economics, eloquently outlines the critical impact of secure property rights and formal markets in her book “Prosperity Unbound.” Panaritis notes that lasting, positive change depends on a nation’s institutional foundations, namely a respect for private property and rules representing the social contract – that define how property is secured. Transforming informal to formal property rights has the potential to unlock billions of dollars in assets and encourage investment and entrepreneurship, as Obama himself noted in this address. In short, strong institutions are a must for economic and social development. They provide the foundation for lasting growth and poverty reductions and will effectively determine the impact of Obama’s $63 billion aid commitment. With the opportunity to make a lasting impact on the lives of Africans, Obama must lead the charge toward institutional reforms and real positive change.

To my my main point. I find your grading on Obama’s support for local conflict resolution initiatives, as those offered by AU and ECOWAS, too harsh. ECOWAS interventions in Liberia and Sierra Leone have proven to be worthwhile in the past. In that respect, what is needed to bring in results are strong institutions, even at regional levels, consistent with the Obama proposition. This would go a long way to ensure that the right things are done in every case and individual country sovereignty is not infringed upon. Africa arise!

I thought he was far more eloquent in off the cuff comments to http://www.allafrica.com on July 2.

One can easily see that you are sincere in your criticism and have the good of the people at heart but I don’t believe that things are so simple in the relationship of Africa to the West.

Quite frequently when Africa has had really good leaders they have been assassinated or pushed out of power by the West. Start with Nhkruma in Ghana, Lumumba in DRC, Sankara in Burkina Faso. Destabilizing wars as that in the Eastern Congo have also had Western sanction and probably backing for the Rwandan invasion. Attempts to destabilize regimes like that of Angola also resulted in debilitating conflicts.

Once the progressive forces were swept away, dictators like Mobutu, or Campore have been kept in power with the acquiescence of the West in Mobutu’s case facilitating transfers of enormous wealth to the West. There is some evidence though inconclusive that even Taylor had some Western support in his attempt to take over Liberia. The history of relations is complex and one can hardly blame the West alone for bad governance but these incidences of harmful meddling have unfortunately not been rare and have cut the wind from out the sails of good governance and reform.

On the commercial front the West and World Bank have been even clearer in affirming their commercial interests while seeing that the continent accumulates massive debts that have prevented much independent development. A series of exploitive mining contracts in the DRC now being reviewed are but one example. Unlike commercial loans World Bank loans are repaid regardless of the success of the project which gives Bank managers little incentive to make good loans in the first place, many are insider deals, or to oversee their execution properly once made. The soverign African nation has to repay them not the failed businessmen or his collateral as would be the case for a Bank loan in the West.

The subject is too complex to do it full justice here but if you look around the world no place under the West’s sphere of influence has really prospered over the last few decades. China the outstanding exception has uniquely gone its own separate way and uniquely prospered. As you become even more familiar with the ins and outs of development keep your eyes open, all is not what meets the eye as national interest commercial and geopolitical trump cooperation and development every time.

SS

I share your reluctance to actively promote interventionism a la Collier, but you seem to imply that no security apparatus can do anything to prevent future Rwandas, Darfurs, Somalias. The OAU and ECOWAS have poor records, but does that mean only bilateral actions or no actions can be taken? Surely African security initiatives are preferable to US lead or UN lead initiatives.

Why has there not been an industrial or agriculture revolution in Africa. Oh the West is responsible for that too. Why are the health and education systems so poor? Inspite of the criticism of Western interference, Africa leaders have played a greater role in the underdevelopment of their countries. The people elect popular leaders that often don’t have a clue about good governance or vision. They have a responsibility to protect against foreign and domestic enemies, interference and oppression their own people. Many African leaders and the elites neglect andoppress their own people.

As far as the Rwandan genocide, why should Western countries come 3000 or more miles to save the Rwandan people when African countries didn’t lift one finger to intervene? What did Rwanda’s neighbor do? Nothing. What have they done in Sudan? Nothing. Shame on you. If anyone should be condemned it should be the African leaders who refused to intervene even though their fellow Africans were being slaughtered. And you wonder why the west doesn’t respect Africa and doesn’t expect much from it. I don’t think many of you respect yourselves. What do the African regional organizations do? Talk talk and talk. Who listens to them? Who implements their recommendations? Member states? I don’t think so. Although my roots are in Africa I am ashamed of what is going on their. Africa should be developed and take its rightful place in the international community. Eventually that will happened but I don’t see it coming for a long time. As far as being white in black skin. What ever, we have over come many obstacles that you can’t begin to imagine. Although racism and discrimation does exist, I would rather be poor, discrimated against, disabled, or deprived in America than be the same way in African countries. I have a chance in America. I would not have a chance in many African countries. I have seem the way many countries in Africa take care of their people it is horror in itself. I have seen many good efforts that go on, but for each one there are ten bad efforts that have been done. Hopefull the young educated professionals will do what their elders have been unabled to do… move their countries forward with all the speed they can muster. With all of the technology, experience, and skills in the world there is no excuse for incompetency, poor governance, and corruption, conflict, etc.

http://africauncensored.com/obama-speech-on-Africa.html

http://africauncensored.com/obama-speech-on-africa.html