Giant_and_Dwarf-FIN

From Diagnosing the Problems to Remediationand poor that the only possible economic purpose would be to manufacture for export.Investors with good reasons to produce something in Kenya or Nigeria would quickly giveup the idea due to the corruption and unprofessional reputation of the local officials andpoliticians. The most likely is that they wouldn’t even consider such an option to any seriousextent, in large part due to the poor, and often time deserved image of such countries.Of course there are companies that do not have scruples and will lead the way, even at theexpense of bribing officials and politicians.In addition to these barriers, potential investors will run into even more hindrances.In the first place, they are no longer competing with high wages in Europe and the USA;rather they are forced to compete with low wages in India and China, which indeed isa tall task. As opposed to the populous Asian countries with massive human resources,the largely smaller and less educated countries of the bottom billion run into anotherfundamental problem in the form of a lack of qualified labour. Eastern Asian competitionhas added another factor: the enormous growth of industrial production in China is nowforcing China itself to secure raw materials for its industries. This search for raw materialsand land is the main reason for Chinese engagement in Africa, which helps to push Africancountries even deeper into the trap of raw materials. The unscrupulous practices of Chinesebusinesses when obtaining licenses, reserves and land, only serves to engrain corruptionand bad governance. The strategy of turning back to the East, as was once articulated byone of Central Europe’s now forgotten political leaders who had a problem with Westernstandards, is popular in Africa today but it’s only a matter of time before it loses support.Globalization also has not helped the countries of the bottom billion in terms of capitalflows. Even those countries that have made great efforts towards economic reforms to benefitinvestors are unable to attract significant capital. This is a result of the high risk thatpotential investors are averse towards. The reputation of a country is easily destroyed andrepairing that reputation is difficult and takes an extremely long period of time. Ugandais an excellent case study as it was the centre of the world’s attention through the bloodygovernment of dictator Idi Amin (Collier indulges and uses his full official title which wecould not resist adding: “His Excellency President for Life, Field Marshal Alhaji Dr. Idi AminDada, VC, DSO, MC, Master of all the Animals on Earth and Fish in the Sea and Conqueror ofthe British Empire in Africa in General and in Uganda in particular”). 133 At the end of 1978,Idi Amin attacked neighbouring Tanzania and occupied a portion of the province of Kagera.Tanzania responded with a strong counterattack that resulted in the capture of Kampala133 The bizarre personality of Idi Amin was brilliantly portrayed by actor Forest Whitaker in the internationalacclaimed British film The Last King of Scotland. The film was shot in 2006 and tells the story ofa fictive Scottish doctor who first earns the favour of and then falls under suspicion and out of favourwith Idi Amin. The film accurately portrays the real events and situation in Uganda in the background ofthis fictive story as Idi Amin’s government was responsible for the violent deaths of 100,000 to 500,000of Uganda’s inhabitants. Forest Whitaker won an Oscar for his acting performance in the film.149