Showing posts from August, 2021

Is East Africa investing excess capacity, white elephants?

 A Railway Line under construction in East Africa  East Africa is racing to improve its socio-economic infrastructure- Roads, Sea Ports, Railway lines, Power generation plants, Telecommunications, you name it.  This effort has generated a lot of negative comments. A common thread is emerging that suggests that the investments are unnecessary, burdening the current and future generations of East Africans with debts. The thread suggests that the region is investing in an excess capacity that will become “White Elephants.” The flipside of this thread of thought is that the current state of infrastructure, especially Seaports and Railroads is sufficient.  This line of thought is not new. We have heard it before in relation to investments in the electricity generation sector. The governments, despite opposition, implemented the projects that are now operational - delivering on the expected outcomes. They are anything but white elephants.   Apparently, the critics have yet to learn f

How America's Predatory Capitalism imporverished the LDCs

Nairobi-Mombasa Expressway. Just a prototype The passage of the  US Marshal Plan in 1947 paved the way for the spread of American "Predatory Capitalism."  The plan helped in the resuscitation of war-ravaged Europe and also opened the European market for American goods. Larger markets demanded more resources, particularly crude oil, which was available elsewhere.  At this point, there was a congruency of interests between profits and power. Both the MegaCorps and the government were wary of the Soviet Union's control of the resources. Therefore, the desire to control resources became intertwined with the desire to dominate the world and control the spread of communism. Coming so soon after World War II, America had no stomach for conflagrations. But still, the industrial complex needed raw materials to produce goods and sell to the world. A subtle way had to be found. The search for a subtle and cheap way of controlling the world and its resources gave birth to an unhol