Most of us African
Countries want to become like Asia! Well at least economically. We want to
learn from Taiwan (FAMOSA), Japan, South Korea, Singapore and most recently
China. We want to learn how these countries correctly got it right in capitalism
and globalization or in other words we want to become developed economies.
For over 30 years most
of Asian countries have experience an incredible economic accomplishment; An
accomplishment that has led to many people from different countries including
African countries to migrate and do business in/with Asia, with the likes of countries
such as China and Singapore. These countries have captured the point of view of
many historians, Economists and Politicians in many countries worldwide.
The big question is, is it
possible? Is it possible to “copy
and paste” what the Asian Tigers did. Can
Africa become a developed economy? , Well, let’s find out.
Asian Tigers were
nations that experienced high economic growth in Asia (Hong Kong, Singapore,
South Korea, and Taiwan (FAMOSA)), these countries where maintaining a growth
of excess 7% per year in the early 1960`s and 1990`s. Nowadays these countries
are notably known for achieving a substantial triumph in finance, technology,
and manufacturing sectors. The Asian Tigers Transformed from been called underdeveloped
countries into an “Asia Miracle”.
Asian Tigers Outlook:
For the matter of this
study I will highly pay attention to two Asian tigers, namely Taiwan (FAMOSA)
and South Korea and very briefly China and Japan.
South Korea have
achieve tremendous economic and democratic success over the past decade despite
of her experiencing a devastating war in the middle of 1950`s and many
calamities that followed after that. South Korea has risen from the ashes of
war and poverty into becoming a major player in global business.
In the 1950, South Korea was not even richer than
any country in Sub Saharan Africa. For example, in 1957 Ghana and South Korea
had about the same per capita GDP. Thirty years later, South Korea’s
annual purchasing power per head was about 10 times that of Ghana’s (From US$ 79 in the 1960 to US$ 20,500). South
Korea came from a recipient of foreign aid into the donor of foreign aid, (praised
by the International Monetary Fund (IMF) for giving a lesson on a different way
of giving aid to developing countries).
What
did they do?
Prior toward the
beginning of the 1960`s throughout 1970`s -1980`s South Korea underwent various
economic transformations, From an agricultural based economy into an
industrialized economy. The people of South Korea decided that the only way it
can defend itself against its enemies is to achieve economic growth and become
an industrial power, and the same was for Taiwan and Japan. There was a need of a national leadership focused on the
development of state institutions that were focused on rapid growth, a
well-educated workforce, Promotion of private sector and technology-intensive
economic development; they began to pay attention to capitalism and globalization.
What Did The Tigers Do?
Seoul; South Korea. Fourth Richest City in The world
1. Having a Highly Dedicated Government
South Korea and Taiwan (FAMOSA) governments
took critical footsteps to achieve certain outcomes. The state intervention and
a strong national leadership are crucial. The economic strategies of successful
countries are influenced by leaders who were committed to rapid development. According
to the renowned South Korean Economist, Ji Hong Kim "By large,
the governments should seek for the industrial policy of 'getting the basics
right' within a market-conforming framework. And incentives and disincentives have
to be designed in order to promote efficiency in the allocation of limited
resources with the help of market forces as much as possible”. Also the drawing
up and monitoring of development plans, and by ensuring that the private sector
achieved the goals set in the plans that were continuously revised in response
to changing economic conditions.
2.
Investment in Education or
Human Capital
Another key area of focus
among the Asian Tigers has been investment in their youth. But the youth need
education to be academically and technically ready to explore the boundaries of
knowledge and technology for their own benefit and that of their countries. The Koreans and
Taiwanese have invested a lot on education, from the early stages up to
university level. They have managed to create extraordinary educational centers
that are now world-prominent. These centers and schools provided the human
capital for the private sector that transformed the country into a hi-tech and
industrial powerhouse. Africa should exploit the youth dividend, as it is the most important
natural resource.
3.
Investment In Technology And
Research And Development
The Asian Tigers also all have a national
innovation system that links government, well-funded research and development
institutions such as the universities and industry. Taiwan boasts 21 research
institutes, some covering the most advanced technologies like
nano-technologies, and also South Korea spends big on research, relative to
income. In 1999, South Korea invested in research and development
(R&D) totaled 2.07% of its gross domestic product (GDP). The major portion
of the money goes towards practical research and development in industry, but
the government has also made major investments in basic science, too. Again,
African nations do not have such institutions.
4.
Strong Public Policies and Growth
The highest determination of economists who examine the East
Asian success is to identify a set of public policies that has promoted
economic growth there and gives promise of doing so elsewhere. What they find out is that Asian Tigers first
establish what we economists call “Investment Climate”, Simply this means a
state is establishing various economic policies such as industrialization and
policies that were aimed at removing various economic difficulties such as
corruption and abuse, taxation, red tape, inadequate infrastructure and high
inflation.
These policies where not only put in place with the purpose of boosting internal investment
but to give the private sector a chance to increase productivity so as they can
compete in the global arena. Professor
Kim said in a lecture titled: Lessons from Asia: The Experience of Korea "Globalization provides immense opportunities
and significant risks, and African economies should be ready to participate in
the global economy”
Africa needed to
adopt an outward-oriented strategy and export promotion policy to overcome its
small domestic market size and to earn foreign exchange. Mr. Kim was given a round of applause when dismissing the belief that Africa had
everything to lose and nothing to gain from globalization, noting that a
good number of the continent's economies could compete favorably in the global
market "if the right policy mix is
conscientiously put in place."
To be clear, not every
country in Asia got it right. Others totally failed and other failed in small
magnitude. For example Philippines, Indonesia and Thailand fail in their goal
to become one among the Asian Tigers.
Back to my Africa
Africa.
My Home; for years African leaders and their western and eastern propaganda
machines have keep on reporting Africa is growing, Africa is booming, Africa is
prospering, But come to reality of the living standard of its people we don’t
see that, a huge percent its citizens are still in poverty, the cost of living
keep on increasing, war and political instability is almost everywhere, our
very own rights and freedom is just an imagination and fear in reality.
We get
carried away by a very well-coordinated propaganda strategy of our governments
whether is our state controlled Televisions, Newspapers or Non-Government
Organizations or foreign controlled institutions and their puppets.
When international
institutions such as The World Bank and IMF are saying the fastest growing economies
in the world to be Africa; perhaps, their reports have been orchestrated by our
very own elected leaders and their partners.
I want
to keep the optimism that, Africa we still have our chance if we get the timing
right; “Timing Matters”.
History
Ever
since Africa was discovered by the Colonialist was considered a land of “Vast
Natural Recourses” Towards the 1930`s many of the African countries began to
fight for their own independence, whereby in the 1930s, the colonial powers had
cultivated, a small elite of leaders educated in Western universities.
But
the coming of the cold war throughout the 1960`s up to late 1980`s killed the “African Dream”, it divided the
continent into various factions with different political and religious
ideologies. African began turning arms against each other, Africa became a
dangerous continent. The west divided our continent and install puppet leaders
who are in line with their interests and assassinate the ones who went against
them. The victims have been as usual average Africans, entrepreneurs and
Businesses.
For that reason, what’s next!?
What will save Africa?
Saying the truth and
nothing else; AFRICA WILL BE SAVED BY AFRICANS, and only Africans; for years the
most debated topic in development economics is: what does it take to steer a poor country from Third World to First
World status?
It is a debate of
particular importance to Africa.
Within decades, many
Asian countries made the transition from Third World status to First
World status. Some countries in Africa are well placed to make this transition.
These include Ethiopia, Rwanda, Uganda and Kenya, Ghana, Côte d’Ivoire Gabon,
Mozambique, Angola and South Africa.
Many
believe that these countries can emulate the “Asian miracle”, but only if
governments take decisive steps to achieve certain outcomes. We can make it
possible if we start now before technology and the economy go through another
major transition such as the coming era of artificial intelligence , robotics
and other coming up technological innovations that will led to Africa lose its
hope. Why? Well this is because we don’t invest in human capital or in simple
words we don’t want to put money in educating young generation. (Which
hold almost 70% of the population)
Without
education of the youth we will have a future of dumb people who lacks
innovation and creativity and also a population of people who consume but not
produce. We need to get rid of the notion that agriculture will save us and
start to focus on the important issues. For example right now the world is
racing toward automation fast than ever, where by the rise of the robots will
probably reduce economic opportunities for emerging nations. Countries such
as Uganda and Tanzania, are projected to have two hundred million and
three hundred million inhabitants respectively by the end of the century. What
is going to happen to these people if there are no opportunities for work and
wages because the manufacturing of goods has become insignificant, automated
low-returns business? Not all of us will get a decent job in the cities,
regardless of how big our cities are.
Robots could scoop up the rest of jobs in agriculture over the next two decades, as machines become smarter, economical, and more efficient.
How long will it take?
Time
frames matter when attempting to understand how long it takes to make the
transition. Examining the economic trajectory of some countries between 1960
and 2016 suggests that it can take about 25 years to turn a nation from Third
World to First World.
Japan was the outright
leader, but in time other Asian nations started leading in certain industries.
Examples include Taiwan and South Korea. They had no mineral wealth. What they
had, instead, were national systems of innovation and, critically, they
invested in human capital. They copied technologies from First World economies
until they were on par and even overtook the First World countries. In many
cases they started off equal or lower in GDP per capita when compared with a
number of African countries.
Many
of African leaders to put it in a fair personal view “got wrong the Asian Miracle”, rather than African leaders start copying
their strategy of success, we tend to shift our hands for receiving donations from
the United States and Europeans towards Asia especially China and Japan. We
think china is our savior, we still think donations and loans will help us, but
not studying, analyzing and implement what the Chinese and the Asian Tigers did
into our own economies. We have to start having the dream of becoming
Industrial power a high tech and business player in the global business.
My Conclusion
Well I am a student; I like learning and understand
things. These views are not in any way influenced by any personal economic or
political views or ideology; I like to think of myself as “free from any ideology but open for an argument and discussion”.
And I don’t want to point out that Africa is not doing anything, at least the
few ones got it right such as South Africa, Ethiopia, Rwanda and Others. Also
many other countries on the continent don’t have the same success factors as
the Asian Tigers, especially landlocked ones with very poor infrastructure, and
constant political instabilities.
There is a need of putting more effort into doing
practical things. African Policy makers and economist need to pack their bags
and rush to Asia in cities such as Hong Kong, Seoul, and Taipei and bring home
that “Asian Miracle Formula” If not possible we can take our intellectuals in
our prominent universities and smart policy makers and put them together and
come up with a “GOAL” or “A VISION” that will have Africa interests in it very
core footing both economic, political, cultural and social values.
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