Africa

1. Africa Economy

2. Different economic systems • Traditional • Most decisions made based on customs, traditions, and habits of the culture • Production is for their own families and neighbors • Bartering, a system of trading without use of money • Command • Government makes decisions about what to produce, how to produce and for whom to produce

3. Different economic systems • Market • Individuals make decisions about what, how and for whom to produce • Mixed • Located on a continuum between a pure market and a pure command

4. Voluntary trade and trade barriers • Voluntary Trade: happens when both parties see that they will be able to gain something from the exchange • Encourages specialization • Specialization: specializing in a product a country makes best and is in high demand on world market • South Africa: gold, diamonds, platinum • Nigeria: oil • Uganda: cotton • Kenya: textile manufacturing plants

5. Voluntary trade and trade barriers • Trade barriers: anything that slows down or prevents one country from exchanging goods • Sometimes used to protect local industries from lower priced goods from other countries • May be created due to political problems between countries • Tariff: tax placed on imported goods

6. Voluntary trade and trade barriers • Quota: sets a specific amount or number of a particular product that can be imported over a given time period • Embargo: when one country refused to trade with another • South Africa was under an embargo with member countries of the United Nations

7. International trade and currency exchange • Necessary for countries to trade with each other • Many currencies of African nations are harder to exchange because there has been so much political unrest and economic problems • CFA franc: A common currency between several African nations; created after WWII when economies of world were unstable. Based on French franc. • West African CFA franc: linked to euro • Central African CFA franc: also linked to euro

8. Human capitalcapital resourcesGDP • Human capital: knowledge and skills that make it possible for workers to earn a living producing goods or services • Capital goods: factories, machines and technology used to produce • GDP: determined by taking the total value of all goods and services produced in a year and dividing that number by the total population • Generally countries who invest in human capital and capital resources have a high GDP

9. Human capitalcapital resourcesGDP • South Africa: one of highest GDP in Africa • Invested heavily in human capital and capital resources • Nigeria: low GDP, should have high • Oil rich nation • Years of government corruption, civil war, and military rule have Nigeria poor • Nearly 70% of people have to live on less than $1 a day • Invested heavily in capital goods for its oil industry • Heavy concentration has neglected other areas and left Nigerians without food and housing

10. Uranium, oil, gold and diamonds • Uranium: element essential for nuclear weapons • Undercover trade (illegal) • Also used as fuel component in nuclear plants • Used in process to age artifacts • Used in some photographic chemicals • Africa supplies about 20% of world’s uranium

11. Uranium, oil, gold and diamonds • Oil: • Most known sources are along Mediterranean coast • Profits have been going to corrupt politicians and businessmen • Gold and Diamonds: • Diamond wealth has gone to good of economy for South Africa • Conflict diamonds: diamonds mined and put on market to fund armed conflict • South Africa believed to have about 40% of world’s gold; has helped the economy

12. How do the politics in africa impact the standard of living • How do factors like money, political stability, and even traditions shape the educational systems of Kenya and Sudan? • Kenya: • Literacy rate of about 85%, has improved in recent years • About 85% of children attend elementary school • About 24% attend high school • About 2% attend college • About 7% of the national budget is spent on education • United Nations and World Bank have offered aid to help provide educational opportunities

13. How do the politics in africa impact the standard of living • Kenya: • Difference in education/literacy rate for boys and girls • Literacy rate for boys is about 91% • Literacy rate for girls is about 79% • School attendance is higher for boys than girls in the cities • Attendance rate drops for all children in rural areas • Traditional views in rural areas for boys and girls impact their education • Boys need education to get better jobs • Girls need to prepare for marriage • In rural areas, early marriages are common and brings a dowry to a bride’s family

14. How do the politics in africa impact the standard of living • Sudan: • National literacy rate of about 61% • Decades long civil wars have has meant chaos for southern (now South Sudan) and western parts of the country • Civil wars have destroyed schools in rural areas • Literacy rate for boys is about 72% • Literacy rate for girls is about 50% • Of the money reserved for education: • 2/3 go to boys’ education • 1/3 go to girls’ education

15. How do the politics in africa impact the standard of living • Sudanese Girls and their education: • Face many of the same problems as girls throughout Africa who live in rural or traditional communities • Parents believe allowing girls to attend school will learn bad behavior • Parents believe the money they spend on education should be for the boys who will be able to have better jobs • Girls only need to prepare for marriage • Marriage brings dowry to the girl’s family and the boy’s family gains a new household worker • When girls are sent to school it is generally for religious reasons and for studying the Quran

16. How do the politics in africa impact the standard of living • AIDS-Acquired Immune Deficiency Syndrome • Sub-Saharan Africa has one of the highest rates of HIV-AIDS infections • Estimates are 23 million live with the diseasewhile another 1.5 million have died • Many of the dead are young and middle aged adults • Result is over 11 million orphans; some able to live with family and others have to survive on their own

17. How do the politics in africa impact the standard of living • Why such high rates in Africa? • Poor health care systems • Poverty • Lack of government organization • Ignorance/lack of education about the disease and prevention • AVTS-antiretroviral drugs to slow the progress of the disease are too expensive for many infected with the disease

18. How do the politics in africa impact the standard of living • South Africa • Estimated 1 in 5 infected • Few people can get the drugs they need • Ignorance/lack of knowledge about the disease lead many to: • Believe it is a disease only for the poor • The men blame the women • Zimbabwe • One of highest rates in world • Why? • Government corruption • Civil unrest • Suspicion of other countries’ offers of help • Poor economy

19. How do the politics in africa impact the standard of living • Nigeria • 3.1% rate; relatively low compared to other African nations • Government has made prevention, treatment and care a priority • Botswana • High rate of infection • Diamond trade has helped create a sound economy • Government has provided education, prevention training, and medical care

20. How do the politics in africa impact the standard of living • Famine: food shortage/crisis • Zimbabwe • Land reform program begun was to place more land in hands of natives • Old landowners were run off the land • In chaos, new famers were unable to produce under their new owners • Angola • Long civil war was over and hundreds of thousands of refugees returned

21. How do the politics in africa impact the standard of living • Sudan • Civil war destroyed much land, men were off fighting and not farming • Many in South Sudan dependent on international aid to not starve • Uganda • Fighting among ethnic groups, rebel forces, armed gangs, and military factions disrupts agriculture and trade

22. South afica

23. nigeria