Tuesday, May 24, 2005

Third World Poverty

If you listen to the mantra of Bob Geldof and his ilk, if only the first world was more generous, third world poverty could be "abolished" for ever. Unfortuantely for him, the BBC highlighted the real problems facing Africa, particularly Nigeria, this morning. Having pumped $300bn of oil since achieving independence, Nigeria should be one of Africa's richest nations, yet Nigerians remain relatively poor. Even more money would clearly not fix the problems Nigeria faces. Proper legal and economic reform are essential to achieve Bob's goal!! Clamping down on corruption, smuggling and reducing Government regulation (not just a British cancer!!) would all improve business conditions in Nigeria and attract more foreign direct investment. A country where imports currently take up to three months to gain customs clearance can only slow an economy and increase poverty. I doubt customs in China, Singapore or Hong Kong are that slow.

Unfortunately, campaigners against global poverty achieve a notable double whammy. They are against global poverty (who isn't?) but they also against global free trade, the only proven means of raising people out of poverty.

No comments: