<<There would be plenty of demand for cars, for example, if the third world development of roads and personal income allowed for their consumption to rise towards industrialized levels. Based on this observation, I've heard it said that the real problem is the capital accumulation and concentration over the past centuries. That capital hasn't found it's best use, growing Rwanda as a nation, say. Now I know this is an oversimplification and that there are cultural issues- some tribes may prefer to live a simple life. But on a really big macro scale, there may be some truth here.>>
i agree, there is some truth here. otoh, i have lived in Africa for ten years, and those cultural issues loom indeed very large. the mentality of native Africans (south of the Sahara - Arab people are different in their own way)is very much different from ours in the Western industrialized nations. mind you this has nothing to do with race, and is not a value judgment either. all i'm saying is that Africans generally have a different set of priorities and beliefs guiding their lives. again without wanting to apportion blame (we do like to exploit their resources after all) it is a fact that most African states have deteriorated economically after gaining independence, basically rendering the continent an economic basket case.
one thing that i believe has gone wrong in Africa is that the old colonial borders were kept when the new nation states came into existence, without taking into account tribal rivalries and territories.
on a more practical note, ALL of Africa's demand for cars can currently be met by the production from the factories situated in South Africa. SA also produces 80% of the continent's electricity, 65% of its GDP, and has the highest literacy rate (still abysmally low by Western standards). so it seems to me that if Africa is to have a future, SA will lead the way. interestingly, SA businessmen are not as pessimistic about Africa as the outside world is.
re: IBM, a very good example of shareholders equity being sacrificed on the altar of ROE. incurring massive debt to finance share buybacks, a phenomenon that can be observed throughout corporate America. exactly the opposite of what corporations SHOULD do when stock prices are unduly inflated.
re. sports stadiums, ho ho ho! |
