Chocolate-Fueled Growth

Poverty continues to linger in most Sub-Saharan countries, in large part due to the shortsighted nature of their export-based commodity economies. In an opinion essay for Project Syndicate, Kandeh Yumkella, director general of the UN Industrial Development Organization, suggests the time has come for these nations to upgrade their economies by focusing on ““value-added, agro-industrial manufactured products.” This would result in selling chocolate or garments rather than exporting raw cocoa and cotton. The benefits of such a transition are manifold: “enhancing agricultural productivity, upgrading value chains, strengthening technological effort….and improving infrastructure.” Given the trajectory of the world economy – with the flow of aid and finance from OECD countries scheduled to decrease due to the economic crisis, the growth of emerging economies with new consumer centers, and rapid urbanization within Africa – such a transition is not only timely but also necessary. China could be an ideal target market, Yumkella proposes. Such a transition requires Africa’s leaders to have vision, political will and governance capabilities. – YaleGlobal