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Hurdles everywhere you look. Too much barriers and tariffs on imports, too little enforcement of rules, too much uncertainty with logistics and politics and occ
by temp-dude-87844 8y ago
Hurdles everywhere you look. Too much barriers and tariffs on imports, too little enforcement of rules, too much uncertainty with logistics and politics and occasionally, threat to life, money, and product.
Governments have long had to walk the balance between protecting domestic industry, raising revenue, supporting entrepreneurs, benefiting from globalization, and protecting foreign states and other external parties from exerting too much influence. It's not sensible to place high tariffs on products for whom domestic production is minuscule and unlikely to be competitive, and which enable a value-added product to be made domestically instead, but political and economic desperation can enable this shortsightedness.
One can look at Brazil to set realistic expectations. It shows what happens when a large country full of potential institutes a scheme of extreme protectionism, and that the struggle with vast inequality and dysfunctional politics frequently cause issues for people and industry, despite the outward rule of law. But it also sets an aspirational note for progress in trade, innovation, and quality of life.
The other issue is the role of direct foreign investment. Changing economic realities and political backlash against the taste and legacy of colonialism have made western states less likely to invest in Africa. China has been eager to capitalize on this, much to the concern of western strategists and journalists. These days, China is rethinking the debt load and shelving many projects, but the geopolitical concerns remain. Nonetheless, China built and operates ports, railways, schools, apartments, and factories. These are tangible infrastructure that sticks around even if the institutions around them change. And infrastructure is a prerequisite of delivering reliable institutions.