Aug 11

Although Africa has virtually unlimited potential it is still a place of severe poverty, famine and in some cases a war zone. Humanity strives for total democracy and so should the countries of Africa. But this will not be an easy and quick undertaking.

US Secretary of State Hillary Clinton has just began her tour through Africa. Her main aim is to convince the local governments that democracy is a vital part of country development. She is completely right because as long as there will be no stability foreign investors will be afraid invest their money, develop industry and generate trade. Yeah sure foreign companies buy African natural resources, but that is no trade it is more like exploitation. With this visit the US shows that Africa is still a key element of their foreign policies. As the family of the president of USA Obama, is originally from Kenya, now it is even more important. Of course USA understands that the trade between USA and countries of Africa can be very profitable. If achieving democracy is one thing then maintaining it is another.

In general newly turned democracies are very prone to corruption which is a global problem. There is not much difference between a dictatorship and democracy if both governments exploit the country and its nation. Though I have nothing against corruption in small scale, which actually can sometimes be an effective tool, on large scale it prevents successful trade operations.

Will things change in Africa? They probably should, but it will not happen in months, probably not even years. We must realize that democracy is not a magic wand that changes all wrongs and cures every disease. Democracy is important, but it will reach its full potential only when the thinking of people in general will change. If Africa is ready to begin this journey then it is good news for international trade.

Jun 07

Although democracy is considered the best government type and every country in the world should strive fore it, for international trade it can be the worst enemy. Many people do not like China, for example, because it is a communist country, Chinese people do not have their freedom and all other ‘’blabla’’, but at the same time many of the worlds biggest enterprises, I mean the ones from the ‘’free’’ world allocate their factories and manufacture their goods in China. And why? Simply because that the labor costs are low and there is no minimal wage. Show me a democratic country with no minimal wage set by the government. Yes we might feel bad for the poor Chinese, but we still wear sneakers and drive cars that are produced there and we do not complain about the price of the items. Continue reading »