Landson Tz
JF-Expert Member
- May 8, 2011
- 304
- 237
WHY AFRICAN COUNTRIES ARE POOR AND WHAT CAN BE DONE
African countries must understand that, all prosperities and poverty in their nations are the results of their citizens. Citizens are responsible for their poverty and/or prosperity. The governments in African countries must understand this concept and start investing in their people. The Africans must understand that there will be no miracle, but working hard and thinking smart. Every person in Africa must take his /her responsibilities to build up their economies.
The relationship between people, government and national development are explain in the national wealth equation below;
Lc = Lcc + Gc +NWc
Lc = Labour of the citizen
Lcc = Citizen Consumption
Gc = Government consumption
NWc = National development consumption
Why poor countries remain poor?
It is because they don’t know the national wealth equation. And if they understand the above equation, they don’t apply it. If they apply and fail, it means they don’t deal with all factors at once.
Through the above equation, it is clearly stipulated that the main source of life and development in the country is determined by nature of their citizens. If the citizens don’t work hard and smart the yield will be very small even not enough for their consumption.
Look at the following situations facing different countries in modern Africa of today:
Lc – Lcc = 0
This means that the citizens are producing only enough for their consumption, no excess for government and development. For the government to consume, there must be exploitation by the government because they must consume no matter what. There must be the need of aid, grants and loans from other countries. Most of African countries fall at this situation of the wealth equation.
Lc – Lcc = -ve Value
This means that the citizens are producing less than they can consume. Remember there is no excess for their government and development projects. In this situation, there must be exploitation by the government because they must consume no matter what. This situation is very dangerous because the citizen needs help through aids. When they demand help and get aids, they become beggars as a result they become minor. In this situation, the citizen becomes the subject of charity and poverty. Most of African countries fall at this situation of the wealth equation.
Lc – Lcc – Gc = 0
This means that, the citizen produce enough for their consumption and for their government no excess for development projects. Therefore there is a need of loans for development projects and social services. Very few African countries fall at this situation of the wealth equation.
Lc-Lcc – Gc = -ve Value
This means that there is a need for external help, to support both the government and the citizens. This situation is very common in Africa.
Lc-Lcc-Gc = +ve Value
This means that the citizen have produced enough for their consumption, government consumption and a certain amount has remained for development projects. The bigger the amount remain after consumption by citizen and government the bigger amount available for development projects. This state of equation is the one that must be created, maintained and improved.
Poor countries fall into debts trap due to failure to balance the national wealth equation. In poor countries Lc (citizen labour productivity) is very low to the extent that it is not enough even for citizen consumption. Due to that reason most poor countries becomes subject for charity and poverty. To make things worse, they fall into debt traps. They become beggars forever looking for aid and grants everywhere possible. If the poor nations will not struggle to balance the wealth equation, they will remain poor forever and ever.
Look at what it happens when they try to struggle without balancing the wealth equation:
They will introduce other factors in the wealth equation,
Lc + G + A + Lo= Lcc + Gc + NWc + Loc
Lo = Loan
Loc = Loan consumption/repayment
G = Grant
A = Aid
But A+G is less than Loc
This means that even little which was available in Lc will be taken away through Loc.
Another tragedy G and A makes the citizens and their government weak to the level of becoming BEGGARS as a result they become minors. When they become minors they fall into severe poverty which makes them more vulnerable.
POOR NATIONS TO PROSPEROUS NATIONS
There is no miracles for national prosperity but applying the national wealth equation. In order poor countries to balance the equation, there must be intentional strategies to be done. The national wealth equation indicates clearly that, the citizens are the source of wealth in the country. Some of the governments in the poor countries have been among the problems on national wealth creation by ignoring citizens. But the truth is that, the left side of the wealth equation (Lc) is the source of wealth in any nation. So in order the poor countries to prosper, they must embrace the citizens (Lc). Now, how can the citizens (Lc) be embraced?
Returning to Lc
This is very crucial, returning to Lc means consuming what Lc is producing. When the overall consumption in the nation is done within the nation, more people in Lc will be involved in production. Because the demand of products and services will be high within the nation, it will put too much pressure on Lc as result more products and services will be produced and sold as a result, much money will be generated.
Lc = Lcc + Gc + NWc
In ideal situation, all consumption within the country must be done within the country. In case, some products, resources and services are not available within the country they can be found outside the country but must be very small compared what is available in the country. The demand from outside must be balanced by exports.
In ideal situation, all Citizen Consumption (Lcc) must be done within the country. The consumption includes food, clothing, building materials, medicines, services, vehicles, fuel and so on must be produced by the citizens themselves.
Welcome for comments (this article is just a part, a lot of things will come later).
Landson Tanzania
African countries must understand that, all prosperities and poverty in their nations are the results of their citizens. Citizens are responsible for their poverty and/or prosperity. The governments in African countries must understand this concept and start investing in their people. The Africans must understand that there will be no miracle, but working hard and thinking smart. Every person in Africa must take his /her responsibilities to build up their economies.
The relationship between people, government and national development are explain in the national wealth equation below;
Lc = Lcc + Gc +NWc
Lc = Labour of the citizen
Lcc = Citizen Consumption
Gc = Government consumption
NWc = National development consumption
Why poor countries remain poor?
It is because they don’t know the national wealth equation. And if they understand the above equation, they don’t apply it. If they apply and fail, it means they don’t deal with all factors at once.
Through the above equation, it is clearly stipulated that the main source of life and development in the country is determined by nature of their citizens. If the citizens don’t work hard and smart the yield will be very small even not enough for their consumption.
Look at the following situations facing different countries in modern Africa of today:
Lc – Lcc = 0
This means that the citizens are producing only enough for their consumption, no excess for government and development. For the government to consume, there must be exploitation by the government because they must consume no matter what. There must be the need of aid, grants and loans from other countries. Most of African countries fall at this situation of the wealth equation.
Lc – Lcc = -ve Value
This means that the citizens are producing less than they can consume. Remember there is no excess for their government and development projects. In this situation, there must be exploitation by the government because they must consume no matter what. This situation is very dangerous because the citizen needs help through aids. When they demand help and get aids, they become beggars as a result they become minor. In this situation, the citizen becomes the subject of charity and poverty. Most of African countries fall at this situation of the wealth equation.
Lc – Lcc – Gc = 0
This means that, the citizen produce enough for their consumption and for their government no excess for development projects. Therefore there is a need of loans for development projects and social services. Very few African countries fall at this situation of the wealth equation.
Lc-Lcc – Gc = -ve Value
This means that there is a need for external help, to support both the government and the citizens. This situation is very common in Africa.
Lc-Lcc-Gc = +ve Value
This means that the citizen have produced enough for their consumption, government consumption and a certain amount has remained for development projects. The bigger the amount remain after consumption by citizen and government the bigger amount available for development projects. This state of equation is the one that must be created, maintained and improved.
Poor countries fall into debts trap due to failure to balance the national wealth equation. In poor countries Lc (citizen labour productivity) is very low to the extent that it is not enough even for citizen consumption. Due to that reason most poor countries becomes subject for charity and poverty. To make things worse, they fall into debt traps. They become beggars forever looking for aid and grants everywhere possible. If the poor nations will not struggle to balance the wealth equation, they will remain poor forever and ever.
Look at what it happens when they try to struggle without balancing the wealth equation:
They will introduce other factors in the wealth equation,
Lc + G + A + Lo= Lcc + Gc + NWc + Loc
Lo = Loan
Loc = Loan consumption/repayment
G = Grant
A = Aid
But A+G is less than Loc
This means that even little which was available in Lc will be taken away through Loc.
Another tragedy G and A makes the citizens and their government weak to the level of becoming BEGGARS as a result they become minors. When they become minors they fall into severe poverty which makes them more vulnerable.
POOR NATIONS TO PROSPEROUS NATIONS
There is no miracles for national prosperity but applying the national wealth equation. In order poor countries to balance the equation, there must be intentional strategies to be done. The national wealth equation indicates clearly that, the citizens are the source of wealth in the country. Some of the governments in the poor countries have been among the problems on national wealth creation by ignoring citizens. But the truth is that, the left side of the wealth equation (Lc) is the source of wealth in any nation. So in order the poor countries to prosper, they must embrace the citizens (Lc). Now, how can the citizens (Lc) be embraced?
Returning to Lc
This is very crucial, returning to Lc means consuming what Lc is producing. When the overall consumption in the nation is done within the nation, more people in Lc will be involved in production. Because the demand of products and services will be high within the nation, it will put too much pressure on Lc as result more products and services will be produced and sold as a result, much money will be generated.
Lc = Lcc + Gc + NWc
In ideal situation, all consumption within the country must be done within the country. In case, some products, resources and services are not available within the country they can be found outside the country but must be very small compared what is available in the country. The demand from outside must be balanced by exports.
In ideal situation, all Citizen Consumption (Lcc) must be done within the country. The consumption includes food, clothing, building materials, medicines, services, vehicles, fuel and so on must be produced by the citizens themselves.
Welcome for comments (this article is just a part, a lot of things will come later).
Landson Tanzania