We need a Marshall plan for Africa, one that marshals the resources of the United States and the ingenuity of the African people to build a truly prosperous continent.
So, the US extends credit to African governments. Those funds are then loaned to local organisations (we might hope mostly private sector but doesn’t need to be). The local organisations repay to the govt in local currency. TRhe govts repay the US in $.
Oh, and all the money is in fact to be used to buy goods and services from the US.
As that is the way the Marshall Plan worked that’s what’s being called for right now, right? OK then.
Although quite how this differs from much foreign aid already is difficult to see. Because that’s how much of it does work, right now…..
The Marshall Plan invested in prosperous countries, albeit having a hard time.
It didn’t have to do anything about graft or incompetence. It would have failed if it had needed to.
Did you know that 85% of Marshall Plan funds were outright grants, never to be repaid?
And $2 billion of aid to Germany was written off when Reparation payments to Jews was promised.
Value of reparations $800 million.
Net gain to Germany $1.2 billion. With Uncle Sam paying the reparations.
“The ingenuity of the african people!!!!”
Don’t scoff too much! Those Nigerian generals offering a share of their billions in return for a small favour must be making a profit, or they’d have given up by now.
the resources of the United States and the ingenuity of the African people
This doesn’t seem like particularly even-handed contributions: what price in development terms the ingenuity of the African people on its own?
Better for the United States to avoid the accusations of white supremacy and calls for decolonisation by hanging on to those resources.
S’OK, China’s BRI is doing that already, let’s sit back and watch..
And if Ilhan Omar wants to fix an African shithole, she can start in her own district.
Marshall Plan? Do we get to bomb Africa flat first?
‘S’OK, China’s BRI is doing that already, let’s sit back and watch.’
Splendid suggestion Rhoda!! I understand the Zimbos are already up to their eyebrows in Chinese debt.
I understand the Zimbos are already up to their eyebrows in Chinese debt.
I think the CCP is cottoning on to the idea that they aren’t going to see the Afro money, that payments in kind (ports, mines, etc) are also tenuous; and they don’t have the might to just go get.
Or… remove tariffs and non-tariffs and buy what Africans produce. The money then goes directly to the roots of the economy, expanding it, making Africans better off – we in the developed Countries get more choice, lower prices and don’t get out pockets picked to take money to send to Africa for no benefit to us and of questionable benefit to Africans not having Swiss bank accounts.
John B
You nailed it. Tariffs are the problem. Example: sweet potato is imported to EU under at least 10 different tariffs (raw or cooked, type of packaging, etc). Multiply by three tariff regimes depending on country of origin. It’s a disgrace but it makes work for PPE graduates.
“the ingenuity of the African people”
What ingenuity? Africans didn’t get round to inventing the wheel.
This is just more Gibs
“The Marshall Plan invested in prosperous countries, albeit having a hard time.”
Plus Ireland.
“ What ingenuity? Africans didn’t get round to inventing the wheel.”
The fairly ingenious when it comes to shifting western tax payers’ money in to their own Swiss bank accounts.
Was talking to someone from Africa and he had a different take on BRI, said the Chinese were integrating and they are bringing in rural Chinese who have a lot in common with the locals, subsistence farming tends towards the same issues and attitudes it seems
BniC
I generally feel that the Chinese and Africans deserve each other. Still, it’ll be interesting to see if I’m proven wrong.
John B
I do agree with you about tariffs. I also tend to sympathise with the pick-and-shovel lot who dig up cobalt, diamonds etc and sell them to the local smugglers. At least they get some of the income, instead of the ruling kleptocrats stealing it all.
Uh oh:
https://twitter.com/Woessmann/status/1581884461007785986
Umm, yeah. Another explanation of that is that being able to gain a high score in the PISA tests is a result of living in a rich country. Correlation and causation and all that…….
If the Africans use the loans to buy productivity-boosting machinery and build out infrastructure, then it could work out fine. However all experience suggests that it will be spent on backhanders for government officials.
YMMV…
‘However all experience suggests that it will be spent on backhanders for government officials.’
Yep Andrew M. If we wanted to sort this out we’d have to send Mr Commissioner Sanders back to keep them on the path of righteousness with his noose and his lash.
But since they now run their own affairs, they have to sort it out for themselves.
haven’t we fucked them over enough already?