Africa Still in Doldrums

++Repost++ This was lost in the update.

The BBC has an article titled “How sustainable is African growth?” where, despite the title, they print optimistic they suggest that Africa’s economy may finally be on the up and up.

How sustainable is African growth?
African economies grew last year at an average rate of 5%, but how much of this wealth is trickling down to the poor? According to a report by the African Development Bank and the OECD that is the fastest rate for nearly a decade.
But many of the economies that are doing best are those with oil and other natural resources… the report also speaks of improved economic management by African governments.

Allow me to rain on the parade: there has been no significant change—anywhere in Africa. The enormous blip upwards for Central Africa is due entirely to Chad’s collosal growth in GDP last year, estimated between 39-60% depending on your source. The reason? A new oil field, drilled by Exxon et al, that now exports several hundreds of thousands of barrels a day through Cameroon (which, with growth rates of 5-14% was also partially responsible for the unusual uptick in Central Africa last year). The deal was actually structured very well in that the government is required to spend most of the money on infrastructure, education and healthcare. But that still doesn’t change the fact that there are no major movements on the continent.

This is the norm for Africa. Officials in think tanks, the State Department, and center-left news publications find one spot of good news and report it like it’s the new IT boom. I understand the State Dept’s position—speaking Victorian is in their job description—just don’t take them too seriously.