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10
ways of prospering without aid
Michael
Holman and Andrew Rugasira
Extracted from The Africa Report
October 2006
1. ENCOURAGE
IDEAS
The high cost of books in Africa is a de facto tax on ideas. Publishers
in rich countries should allow African publishers to print a limited
run of their books. If the authors forgo royalties and publishers
co-operate, locally printed versions could sell at a fifth of the
foreign price.
2.
MAKE FOREIGN NGOS COMPETE
NGOs should work more with the private sector: much of their development
work should be open to tender. Companies running large projects
should include a social component (primary education or healthcare)
that the voluntary agencies would tender for and operate.
3. THE
PRIVATE SECTOR SHOULD BUILD INFRASTRUCTURE
In Kenya, the pot-holed Nairobi-Mombasa road should be rebuilt under
a build-operate-transfer scheme. The construction company operates
the project for an agreed period before handing it to the state.
4. CHARGE
FOR PROFESSIONALS' VISAS
Professionals who emigrate from Africa, whether doctors or dentists,
engineers or lawyers, should have to pay a market rate for the privilege
of a visa which allows them to work abroad. The money raised should
be used in the emigrants' countries of origin to train replacements.
5. CHOCOLATE
MUST CONTAIN MORE COCOA
Double the minimum amount of cocoa required to make chocolate under
current trade rules. Cocoa prices will rise and chocolate will taste
better.
6. PROMOTE
AFRICAN MUSIC
Africa needs a Nashville-style center to promote its music and attract
more commercial backing. It would be a center for the production
of great music and would train managers and musicians.
7. MAKE
AID CONDITIONAL ON IMPROVING THE BUSINESS CLIMATE
The latest International Finance Corporation's report on impediments
to business shows that registering a company in Kenya takes ten
times longer than in Hong Kong and requires five stages, compared
to two. This is repeated across Africa, whether registering a business,
selling property or recovering debt.
8. ABOLISH
TAXES ON COMPUTERS EXPORTED TO AFRICA
Privatization, deregulation and the emergence of democracy go hand
in hand. Computers are critical to this development. In return,
African governments would end import levies on computers.
9. FAIR
TAXES ON COFFEE AND FAIR RETURNS FOR FARMERS
Imported raw coffee is taxed at a third of the rate of processed
beans, the first stage in a trading system that ensures that less
than 0.2% of the value of processed coffee is retained by the growers
themselves. Reforming this tax will benefit Africa's growers
and their families, some 60m people. There should also be better
marketing and packaging for Africa's products. East Africa's
coffee producers now use attractive vacuum-sealed, foil packets
but in Congo a fine soap made from pure palm oil is sold wrapped
in newspaper and in northern Uganda, mangoes rot on the ground because
no one can dry and package them to international standards. Foreign
retailers should share their expertise with African traders.
10.
GIVE POWER TO AFRICA'S WOMEN
Disenfranchise African men for 5 years.
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