Plundering Africa

Léonce Ndikumana and Econ4’s James Boyce describe something you won’t find in economics textbooks:

In the imaginary world of a perfect market economy, natural resources would be a blessing and capital would flow to the countries where it is most scarce. Africa would be a net recipient. The Angolan people would prosper from the proceeds of oil extraction; Ivorians would thrive as the world’s top cocoa exporter (45 per cent of global production); and South Africans would enjoy the fruits of mineral abundance.

Yet, this is not happening. Natural resources are instead a hunting ground for quick wealth extraction and offshore accumulation. Cross-border capital flows are driven, not by relative scarcity in Africa, but by the relative secrecy available in foreign havens.

Read more here.