Privatization is the wrong policy for Africa.

[Gedo_Boy]

If all the Western companies can nationalize at their whims, Africa should nationalize all the assets and NEVER allow them to be in the hands of private companies.

[Kolombo]

Gedo_Boy,

Assalamu Aleikum, yaa akhi. This is Koronto91.

Privatization usually means Western companies come out winners. Argentina in the 1980s is a prime example of the failures of Privatization.

[ModerateMuslim]

conspiracy brother, that's crazy talk. i mean, if you're a citizen of an african country, would you trust your country's assets with your dictatorial - or tribal - government? no, right? so i tought.

private, selfish hands are better than easily bribable and corrupt hands.

black power! 8)

[dawwa9]

Africa and the Middle East are the regions that are the least affected by the financial crisis.

Dubai building frenzy is still continuing, African stocks still rising and most African economies have growth rates of over 5%.

[Gedo_Boy]

Koronto91,

So that was you all along? I thought you were someone else.


Somali-Star,

Both are dangerous, but with a dictator the assets still lie in the country. He can't sell them anywhere else and he will eventually die, so the assets can end up back in the hands of the people.

But with privatization, those assets are gone forever and some rich bankers in foreign countries can decide whether you eat or not with YOUR own resources.

[ModerateMuslim]

conspiracy brother,

after colonization, africa's biggest tragedy is corruption IMO. westerners - or communists - know if they want to continue getting africa's resources, assets and labor, as they've gotten them in the colonial era (i.e. for nothing), they just have to buy off one man, or a tribe. sadly corruption is, basically, a continuation of the colonial era; albeit through corruption instead of the gun.

But with privatization, those assets are gone forever and some rich bankers in foreign countries can decide whether you eat or not with YOUR own resources.

that's the story of post colonial africa; however, it's because of corruption, tribalism and form of governments in most african countries and not privatization, right?

black power!

[ModerateMuslim]

[gurey25]

Gedo boy you are looking at it from the wrong angle..

the truth is your economy will get fuked if you privatize or nationalise.

it depends on the government.

when you have a strong and responsible government interested in the welfare of the people,
this is when you want government direction.

when there is a bad goverment or no government then privatization is the way to go , e.g somalia

[Padishah]

Nationalisation? Are you serious? We're still talking about this nonsense? What does it take for this voodoo economics to be consigned to the dustbin of history? Obviously, repeated and disastrous failures are not enough.

[AbdiWahab252]

GedoBoy,

Nationalisation has been a disaster for Africa due to:

1. Lack of incentive and best management practices in Government run companies

2. Political interference in management decisions for example laying off a bloated workforce is very difficult to do if there is a lot of political patronage.

3. Opportunity cost of national funds towards a few businesses instead of it being spent on public goods such as infrastructure, health, education etc.

Look at Somalia's former National bank. It was highly inefficient, made loans not on business criterea but political influence and HORRIBLE to get money out of unless you bribe someone. It was the ONLY BANK you could use and it sucked that my father had to pay up to 5% of money withdrawls from his USD account just in kickbacks