Question

why has africa lagged behind other counrties in economic development? what can multinational companies do to encourage economic progess on the contient

Answer 1

Answer) Africa is a poor Nation because of high incidence of poverty, missing health infrastructure, and unstable political institution. However, the most important reason for the backwardness is the inability of African people to transition from natural capital to human capital. African nation still rely upon natural resources for their sustenance. And this causes natural resource curse over a period of time for instance in Botswana.

Africa needs to make a jump towards science and innovation. This technological revolution needs to come internally. Opening up of African economy through globalization can bring about new technology, skills and inventions along with the multinational national enterprises. However a blind Faith blind upon globalization would cause financial and natural resource drain.

Botswana is recent times have overcome resource curse by investing in science and technology, establish political institution, and abiding by fiscal consolidation. Domestic reforms and use of comparative advantage in the neoliberal regime could trigger African nations toward economic prosperity.