A surplus of workers, more technology, and stability transform Africa’s economies, making it less dependent on extractive industries.
Foreign direct investment (FDI) in Africa was almost solely centered on extracting and exporting natural resources. This went on for more than a century. However, since the turn of the millennium, the momentum has shifted. The trend has finally changed in the past few years. Investors worldwide now come to Africa more often for the assurance of its people than for its physical properties.
The Bookwire
Dr. Samuel Enajite Enajero authored “Collective Institutions in Industrialized Nations: Economic Lessons for Sub-Saharan Africa.”: It is a book that compares the economics of sub-Saharan Africa with other countries, particularly in Asia and Europe, where collective institutions exist to usher in social prosperity and economic development.
“Collective Institutions in Industrialized Nations” conveys the role of historical collective institutions famous in Europe and Asia compatible with today’s prosperity compared to institutions in pre-colonial Africa. Views about Africa are, were, and most likely will continue to be highly polarizing. Some economists, finance professionals, multinational executives, global entrepreneurs, and businesspeople are bullish, as investment opportunities in infrastructure, manufacturing, and technology are coupled with a young population that is increasingly more educated and confident. However, many are less optimistic and concerned about misgovernance, conflict, weak state capacity, corruption, and poor infrastructure. Pessimists point to Africa’s dark past, including the atrocities and exploitation during colonization and the slave trades.
The African Association for Evolutionary Economics convinces Dr. Enajero wherein individuals and society determine the country’s economic behavior and its financial processes evolve. Before, Africa was “the hopeless continent.” After solid growth and institutional advancement, the country was renamed “the hopeful continent.” A vibrant stream of research on African political economy and economic history has emerged. The new economic history approach departs significantly from prevailing thinking in meaningful ways.
Dr. Enajero argues that there exists a vital institution historically peculiar to all advanced nations. This institution is salient in practice as much in free-market capitalism as in communist dictatorship countries of the world. It is the institution of social collectivism. As in the book, collectivism recognizes human interdependence and an all-inclusive and charitable society. It enables men and women to create economic opportunities rather than wait for them, thus making the economic man and molding a nation into an organic whole.
Macroeconomic Management
In macroeconomic management, Dr. Enajero stresses that “To raise the quality of life over time, the collective goal of society would be to engage in activities that lead to continuous increase in aggregate output.” One way to encourage widespread economic activities is by transforming traditional-prone people into economic forces through collective institutions.
“First of all, societies and economies would have to be established through the practice of economic cooperation,” Dr. Enajero added. “Economic agents would have to be mobilized en masse through other institutions as experienced in nations of Europe and Asia.”
“The lack of historical and contemporary collective institutions in some societies are fully responsible for economic and social woes,” Dr. Enajero wrote. The author also said, “The absence of historical cooperation and collectivism created poor use of economic resources, including labor and land.”
Author’s Bio
Dr. Samuel Enajite Enajero obtained his Ph.D. (2000) in Economics in the areas of Public Choice/Public Finance. He taught at various universities with undergraduate and graduate courses in economics and business. He has presented peer-reviewed papers at many academic conferences and recently about economic and housing development. Dr. Enajero has also published articles in peer-reviewed journals.
Dr. Enajero had firsthand knowledge of how the local and federal governments’ partnership spur development at the grassroots by working in the Department of Planning and Development in a City government. He complimented his academic background in the public choice/public finance with practical, real-world experience.
