It has vast quantities of oil, timber, and precious metals. Countries such as the Democratic Republic of Congo, Sudan, and Nigeria have so many resources that it is logical for them to have powerful, vibrant economies…
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Throughout the continent of Africa corruption is rampant. In order to receive even the most basic services Africans must pay bribes. In order for companies such as Shell to do business in Nigeria (ranked 121 in the world by Transparency International1) a huge amount of money must be paid out to local officials to “grease the wheels.” In hospitals, patients may have to put money in doctors’ consulting books in order to be treated. In schools, students may have to pay their teachers for passing grades.2 All of these situations are commonplace. Studies have shown that Africa loses $150 billion a year due to corruption and that products cost as much as 20 per cent more.3 It is impossible to measure how much more developed Africa would be at this moment had not a culture of corruption existed there for so long.
In countries with poorly constructed, inefficient, and non self-enforcing constitutional rules, opportunistic behavior (including rent seeking) are usually quite pervasive. In such countries, the rules that regulate socio-political interaction, have failed to adequately constrain the government. As a result, state intervention in private exchange is equally pervasive. Excessive regulation of economic activities creates many opportunities for rent seeking, including bureaucratic corruption.4
Many public servants in Africa may have power to allocate resources, but they make small salaries. It is very easy for them to make a lot of money on the side by taking payments from special interests. Plus, public servants may have poor relatives who they are also supporting. They may not simply take bribes out of selfishness, but possibly to help feed their extended families. Nevertheless, it is clear that more rules and guidelines are required for public servants in their dealings with the private sector. Enforcement of such rules is desperately required.5
John Githongo argues that corruption usually begins at the top of a country’s leadership, and
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Throughout 2008, the unemployment rate was higher than usual 3. There was huge inflation in energy prices, agricultural products, industrial products, and precious metals 4. Falling stock market index 5. Huge decline in U.S. net lending and borrowing rates during 2008 6.
As a child grows up, there are many false stories and misrepresentation of the Dark Continent passed on by parents, teachers and seniors. This leads to formation of biases and negative perceptions about Africa that influence western view and reception of anything African.
Name Instructor’s Name Business 14 October 2012 An Assessment of the Current Economic Conditions of Africa The year 2004 was a difficult year for Africa. This was as a result of the humanitarian crisis in Darfur, a region in Sudan, warfare in Cote d’Ivore and the struggle in Zimbabwe (“Africa’s economy: Aid and growth” oecdobserver.org).
Over the past 3 billion years the process called supercontinent cycle has resulted into formation and breakup of five supercontinents of the earth. Today we need to travel by air for hours to go from one continent to another, but it is said that some 200 million years ago, continents like North America and Africa, the largest units of landmasses on the earth touched each other.
This view is again supported by the low acid test ratio in both the years. Acid test is part of current ratio but excludes inventory in its calculation. Acid test ratio is also very low to confirm that liquidity wise Arriva Plc. is
The end of the cold war resulted in a lot of changes in Africa. The reason behind this is because Africa was no longer of interest since fears of whether it would fall into the United States of America’s
The scope of human resource management has evolved over time as a result of technology and globalization. Historically, the major function of HRM was to manage labor and human relations in the organization. Over time,