NEPAD should re-design Africa’s economy

The author contends that sub-Saharan Africa's underdevelopment stems from the mismanagement of economic surpluses by political elites who exploited their power to maintain high living standards and fund failing industrial projects. Comparing the divergent paths of Ghana and South Korea since 1965, the text argues that current frameworks like Nepad fail to address the power imbalance between elites and producers. To achieve development, the author proposes introducing freehold land ownership for peasants, granting producers direct access to world markets for cash crops, and establishing independent financial and technical institutions supported by foreign donors.

• The underdevelopment of sub-Saharan Africa is attributed to the mismanagement of economic surpluses by political elites, who used their power to increase their own living standards, fund unsuccessful industrialization projects lacking educational support, and facilitate capital flight from agriculture and extractive industries like oil, diamonds, metals, and timber.
• A comparison between Ghana and South Korea illustrates Africa's economic struggle; while Ghana had higher incomes and export per capita than Korea in 1965, Korea's exports per capita overtook Ghana's by 1972, and its income level surpassed Ghana's by 1976.
• The author argues that the New Partnership for Africa’s Development (Nepad) is insufficient because, while the African Peer Review Mechanism addresses some elite excesses, it does not resolve the fundamental power imbalance between the political elite and private sector producers.
• To foster development, the document proposes three structural changes: replacing communal land tenure (which it defines as state ownership) with freehold ownership for peasants, allowing producers to auction cash crops like coffee, tea, and cocoa directly to world markets, and creating independent financial institutions such as credit unions and co-operatives.

APA

South African Institute of International Affairs (2008). NEPAD should re-design Africa’s economy. https://saiia.org.za/research/nepad-should-redesign-africas-economy/

Chicago

South African Institute of International Affairs. NEPAD should re-design Africa’s economy. 2008. https://saiia.org.za/research/nepad-should-redesign-africas-economy/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=NEPAD should re-design Africa’s economy |date=29 April 2008 |url=https://saiia.org.za/research/nepad-should-redesign-africas-economy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2008nepad, author = {{South African Institute of International Affairs}}, title = {{NEPAD should re-design Africa’s economy}}, institution = {South African Institute of International Affairs}, year = {2008}, month = apr, url = {https://saiia.org.za/research/nepad-should-redesign-africas-economy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }