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What factors do you think are responsible for Africa's slow economic development? What can the multinationals do to help?
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The paper reflects factors responsible for Africa’s slow economic development and the role of multinationals towards the country. There are few of the diseases like HIV AIDS which is considered a major threat towards the economic development. This is considered as the vicious cycle by which the poverty boosts and spread the HIV increases the poverty. The multinationals investing throughout the market segments of Africa have the desired resources which will help in enhancing the growth and development of Africa. It has been seen that the poor economic choices of the concerned economic policy of Africa are responsible for the growing shortfall of the country. Poor policies along with institutions explain the large share of the slow rate of growth.
Africa’s slow growth can by some different variables. Things like measuring economic policy, initial conditions, demography, and physical geography can account well for the growth performance of other parts of the developing world. Africa’s poor choices of economic policy in turn are responsible for much of the growth shortfall. Poor policies and institutions explain a large share of the slow growth. Also poverty in Africa is paradoxical: the continent is made of 54 countries of low population density and rich in natural resources. Of course, as usual the resources are not evenly distributed between regions, countries and within local populations. Diseases, in particular HIV-AIDS – are another major threat to economic development. This is a vicious cycle by which poverty boosts the spread of HIV which in turn increases poverty. The case of the poor in South Africa shows that despite the country's substantial growth, that wealth is still too concentrated in the hands of an "uninfected" minority. That way the gap between the rich and the poor only gets bigger and bigger, making it harder for impoverished populations to catch up with the well-off
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