With so many natural resources why is Africa still a poor nation, shouldn't it be one of the richest ?

Answer 1

For starters, Africa is not a nation; there are more than 50 nations in Africa.

As to natural resources, they typically don't make you rich, unless you have vast amounts of them per capita (as in, say, Dubai or Norway). What does make a country rich is a steady development of large-scale labor-intensive export-oriented enterprise. But large-scale labor-intensive export-oriented enterprise needs a decent institutional environment: relatively free international trade, relatively corruption-free government, relatively well-developed court system that can not only pass decisions quickly and fairly, but also enforce them. African countries typically lack all of that... The few that tend to do things right (Botswana is one bright spot) succeed well beyond average.

Another persistent problem in Africa is pathogens. Africa has the highest prevalence of malaria and tuberculosis in the world. Economy and health create a sort of chicken and egg problem; you can't build a decent economy if your population is too sick, but you can't improve your population's health unless you have a decent economy...

You might also check out this paper:

Easterly, W., and R. Levine, "Africa's Growth Tragedy: Policies and Ethnic Divisions," Quarterly Journal of Economics, 112, No.4, November 1997, 1203-1250

Easterly and Levine conducted a comparative statistical analysis of economies in Africa and South-East Asia and found that about 70% of differences in their growth rates are attributable to four factors: budget deficit, black market premium for hard currency, real interest rates, and the average number of years of schooling. Needless to say, oppressive governments tend to run budget deficits, play exchange control games, repress the financial sector (so that real interest rates are very low or even negative), and underspend on education...

Answer 2

Africa generaly is not a place where there are good conditions for business gorwth so that jobs and wages can grow.

Governments are corrupt and inneficent. Investment from both domestic and foregn sources is lessened.

Civil wars and conflict exist in a lot of places

Taxation, regulation and trade restrictions are much too burdening.

AIDS and malari are destroying the population in many nations.

The population is not particuarly well educated.

Natural resources, though can potnetially help a nations wealth also creat an incentive where the government does not have to make beter governance or macro econonmic reforms. A government that just relies on exporting commodities gains a lot fo money, particuarly if they are state run companies, so in order to get money to keep the government in place, the general economy does not have to be growing and thus there is less of an incentive for governments to make reforms.

Except for a few nations, Africa is generally just a dasterous economic mess.

Answer 3

Africa is tribal so the biggest tribe runs the show. They have no idea of democracy, and let's face it, they are violent people. If you don't believe that, then who is it that brought guns and murderous gang warefare to Britain? With few exceptions, Africa is a violent place, and the top men generaly are greedy incompetent thugs. As to the slavery issue, I for one am sick to death of everything being blamed on an institution that Britain banned throughout the British Empire 200 years ago. If you look at the conditions that the so-called free man worked under in Britain at the time and indeed well into the present century then we had it a damn sight worse than any slave. Life expectancy in Reddich, for example, where needles were made was about 28 years. Manchester was no better, and the living conditions of the poor beggar description. Look at any photo of the old factories and you will see naked gears and flapping belts and machines without guards well into the 1930s. Death and severe injuries were common. If you want to get your money's worth out of a slave you have to feed him, house him, and doctor him when he is sick, otherwise you lose your investment. A 'free' man on the other hand you use until he slows down then you sack him and hire another. He and his family usualy starved to death, especialy when they were thrown into the street to die. There is too much time spent in snivelling and breast beating over the slavery issue, and not nearly enough time spent on ramming it home to kids just how badly their own great grandparents were treated in this country..

Answer 4

Until the industrial revolution all nations were poor, and the ones that developed first got richer by conquering and/or exploiting other nations. Africa was exploited the most, first by the slave trade, which not only removed productive workers but distorted their cultural and political development, and then by colonialism. Since they have had less than 50 years to establish political institutions as independent nations that are necessary for an industrial economy to flourish, it should not be surprising the many have not yet succeeded. They also have not reduced their birth rates as the more successful poor Asian countries have, but this is also probably due the failings in their political institutions.

Answer 5

Africa is a continent and yes the vast majority of it's countries are poor. This is largely down to the corrupt politicians that run the governments. But there are some successes.

Botswana is affluent and in fact they devalue their currency as they trade a lot with other African countries. The Botswana currency should be on a par with the pound sterling (or at least it was when I was there in 2004). Namibia is also fairly affluent as is South Africa.

Answer 6

Because of the rich elites taking the money and paramilataris taking the money and spending on weapons!! Also because of countries like Britain and America puttin so much tax onto trade that when Countries in Africa try to make a living off trading coffee, chocolate, fruit etc they are making next to nothing while those same products are expensive to buy over here!! Its totally corrupt!

Answer 7

like a few of u have said, africa is a continent. 2nd of all i will also agree with the few that have said that there is lots of wars there so that is where a big chunk of them nations money will go towards. Buying weapons etc

I agree that yes europeans have done alot of bad things to the African countries over the last few centruies. but what id like 2 know is, would they be in an even worse state if we had never gone there? As they would not have a lot of things that we do. Am not saying they all have luxuries but there is alot of things we gave them and showed them to do

Answer 8

Poor Africa had been ripped off by European countries in the last 2 centuries. Poor African been bought and sold as slaves and now been ruled by most corrupted leaders.

Answer 9

Africa will only get going when the women take over. At the moment it is mired in tribalism and corruption. Mad Bob is the Continental hero. Bring on the women entrepreneurs.

Answer 10

Africa is neither a nation nor a country. It´s a continent. If you want to know the answer you should go back in History and see how the european superpowers of the 17th and 18th century exploited, pillaged , looted and devastated it.