Friedman had it right

Africa's share in global exports decreased from 6.3% in 1980 to 2.5% in 2000. Source: UN Conference on Trade and Development, 2003

Last July at the G8 summit at Gleneagles, EU Trade Commissioner, Peter Mandelson, pointed out that if Africa could gain an additional 1% of global trade, then that additional 1% would deliver seven times more income every year than the continent currently receives in aid.

Let me state the obvious: poverty is a significant problem in Africa. Increasing economic opportunities will help alleviate this poverty. The continent of Africa has a lot of potential but "potential" is not tangible to the average African. The majority of global aid organizations had at one time or another told African leaders that aid was the solution to their problems, when in fact, this aid has only hindered the unleashing of their true human potential.

We're not trying to alleviate poverty or solve world problems; that would be extremely naive. In fact, throughout this pilot project, we WILL make many mistakes. What we ARE trying to do is learn, share and help coordinate the business tools to assist youth in Kibera, the largest slum in sub-Sahara Africa, to succeed in their entrepreneurial ventures. Ultimately, it will be these Kenyan youth that will contribute to the growth of their economy which will lead to the trickle-up effect.

Today, after-hour oil prices reached $78 USD a barrel. Hopefully more African nations will put their differences and internal politics aside and collaborate to futher leverage off this opportunity.

The bureaucrats should put a little more faith into the free-market - let the market find its equilibrium.


Posted by Brittany Baum