Friday, July 06, 2007

Africa: Land of Hope

President Kigame of Rwanda
In the early 1990s, Rwanda reinforced all the worst stereotypes of Africa: wretchedly poor, torn apart by war and seemingly destined to be an international basket case forever.

Yet now it has become the little nation that could. It is clean, safe and enjoying economic growth more than twice as fast as the U.S. or Europe. And Rwanda underscores something that is easy to forget: There are signs of a turnaround in Africa, and plenty of reason for optimism.

This is the last column from my win-a-trip journey in Africa with a student, Leana Wen, and a teacher, Will Okun, and the stories have been long on gloom and suffering. But there is also a cheerier side to Africa, and Rwanda reflects the continent’s potential when there is both stability and good governance.

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In the early 1960s, most of Africa was richer than Asia and many economists expected Africa to zoom far ahead of Asia. Back then, the World Bank named a group of African countries that it projected to grow at 7 percent annually.

Instead, Africa drove over a cliff. Of those countries with good data, one-third now have lower per capita incomes than they did at independence (typically about 1960), and the five worst-performing economies in the world from 1960 to 2001 were all in Africa.

What went wrong? The two most important reasons were that Africa was terribly governed and that it was torn apart by wars.

The problem of conflict is as bad as ever (Darfur sums it up), but governance is getting far better.

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And when African countries have enjoyed stability and sound policies, they have often thrived. Indeed, the fastest-growing country in the world from 1960 to 2001 was Botswana (South Korea was second, and Singapore and China tied for third).

More and more African countries are now following the Botswana model of welcoming investors and obeying markets. Aside from Rwanda, countries like Mozambique, Benin, Tanzania, Liberia and Mauritius are among those trying to build a future on trade more than aid.

“We’re not going to say ‘We don’t need aid,’ ” Mr. Kagame said. “But there’s no question about trade being more important than aid. There’s no question about that.”

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