VOLATILITY KILLS [SCIENTIFIC AMERICAN MAGAZINE]

Despite gun battles in the capital of Chad, rioting in Kenya and galloping inflation in Zimbabwe, the economies of sub-Saharan Africa are, as a whole, in better shape than they were a few years ago. The World Bank has reported recently that this part of the continent experienced a respectable growth rate of 5.6 percent in 2006 and a higher rate from 1995 to 2005 than in previous decades. The bank has given a cautious assessment that the region may have reached a turning point. 

An overriding question for developmental economists remains whether the upswing will continue so Africans can grow their way out of a poverty that relegates some 40 percent of the nearly 744 million in that region to living on less than a dollar a day. The optimism, when inspected more closely, may be short-lived because of the persistence of a devastating pattern of economic volatility that has lingered for decades.

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...the Democratic Republic of the Congo, which took in $200 million from mineral exports in 2006 yet collected only $86,000 in royalties for its treasury.

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...the so-called Kimberley Process, which has effectively undercut the trade in blood diamonds, and the Extractive Industries Transparency Initiative, in which a government must report to its citizens the revenues it receives from sales of natural resources.

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RLCC Comment: Where does all the money go for the extracted resources? It isn't going to help the poor indigenous peoples in Africa, that's for sure. Most of it ends up in the accounts of the richest White people on the planet. The color of the people is changing now though that so many in India and China are becoming billionaires, but the principle remains the same. It's called stealing the God given inheritance from the poor. Another name for it is unbridled capitalism.

Link to source-webpage, obtained via: Scientific American - Official RSS Feed, April 4, 2008, 6:32am

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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