Africa's private sector strategy for alleviating poverty

Submitted by Al Hammond on July 11, 2005 - 13:18.
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In a short cover story in the International edition of Newsweek, dated July 11, the magazine contrasts the promises at the G-8 summit with the entrepreneurial revolution already taking place on the ground in Africa. It's not planned, rather much more spontaneous and bottom-up. But the evidence is that its working in at least 25 of the continent's countries. Even World Bank President Wolfowitz is impressed, according to the magazine.

Before an Africa tour last month, the newly installed World Bank president, Paul Wolfowitz, called corruption "the worst threat to democracy since communism." But after visiting Nigeria, Burkina Faso, Rwanda and South Africa, he was striking a more positive note: "Every—where I found people who had a real willingness to work hard, intelligence, energy and a can-do attitude. Africa is a continent on the move."

That corresponds to the entrepreneurial activity we are tracking--in microfinance, in cellular, in wireless internet, in franchised health care, in new SME investment funds--that suggests the reach and power of private sector approaches in Africa.

Al Hammond's blog | | printer friendly version | 2018 reads
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African Aid
Submitted by SeanG on July 11, 2005 - 14:03.

I think this might be the article you are mentioning:
http://msnbc.msn.com/id/8444218/site/newsweek/

One thing I take away from this piece is the importance of battling corruption in these countries. A climate where people feel financially safe to start businesses and to invest might be the most important objective.

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Tackling corruption
Submitted by _Jeff Mowatt on July 13, 2005 - 12:33.
I hadn’t imagined that I’d be in agreement with the new President of the World Bank but on the subject of corruption, I believe he has it right. Imagine for one moment an “Africa” devoid of many of its problems. A country with flourishing agriculture, large scale industrial output, well organised public heath programs and an abundance of university graduates. In such a country, it would seem nigh impossible that poverty could be a problem and that millions might live on less than 2 dollars a day. Yet such a country does exist and has been paralysed by corruption and its grey economy, it is Ukraine where my organisation currently attempts to promote a major social enterprise initiative. Such is the grip of corruption that it taints every aspect of daily life, nothing can be accomplished without bribery. Organised crime feeds off all business activity, including many built on micro-credit initiatives. In many cases what we contribute in aid allows business to barely survive and bandits to flourish. That’s why we’ve built anti-corruption safeguards into our business models, with a strategy proposed nearly a decade ago, to eliminate poverty by means of good business practice, directed towards the poor majority rather than minority shareholders. And it works, as one corrupt politician discovered when attempting to tap 10% off a $40m US Aid grant, business copyright preventing him from dealing with anyone else. Two years on with a democratic revolution behind us, I’m glad to say that his position has been filled and there’s no good reason why the plan shouldn’t continue as intended. Dangerous stuff, as one might imagine, but the war on poverty isn’t going to be won with academic paperwork and good intentions. If corruption can be overcome in Ukraine, then there’s a lot more hope for Africa. Jeff Mowatt People-Centered Economic Development www.p-ced.com
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