This paper analyses what may be the reasons for Africa and the Middle East seemingly lagging behind other world regions in terms of economic development. It explains why entrepreneurship has been slow to develop in the region, and gives suggestions for how it may be developed more assertively. The problems that may constitute the reasons for lagging behind others may be inadequate education systems, division and war or heavy administrative procedures. Furthermore, difficult access and high-lending interest rates as well as colonialism consequences can be a reason. Income or poverty in the regions may reduce the demand for goods and services, support high corruption, lead to low salaries and wages for states employees and insufficient savings for workers to begin new business.
Education in Africa is a heritage of the colonial system which did not intend to develop entrepreneurship in colonized countries. Courses are dominated by modules that are not related to entrepreneurship, but full of content like foreign literature like French and English or History. Courses offered by universities are disconnected to labor market needs and new technologies. Courses are full of theory without practical knowledge. Professional courses are limited, and graduates lack in practical knowledge.
Secondly, African countries are not united. Some of them have much diversity in culture, religion and ethnics. But instead of using the diversity to generate new ideas, creativity and innovation, the diversity is the basis of war in African countries. No entrepreneur can engage seriously in a country at war. Molem indicated Cameroon had linguistic and cultural diversity with more than 289 ethnic groups, and a colonial legacy of French and English cultures and languages, plus remnants of a German substratum.
Table of Contents
1. Introduction
2. Inadequate Education System
3. Division and War
4. Heavy Admistrative Procedures
5. Difficult Access and High Lending Interest Rate
6. Low Income or poverty in the regions
7. High corruption in the regions
Objectives and Core Themes
This essay analyzes the underlying factors contributing to the lagging economic development in Africa and the Middle East, specifically focusing on the barriers to entrepreneurship and providing recommendations for improvement.
- Analysis of systemic educational deficiencies and their impact on entrepreneurship.
- Examination of how regional conflicts and administrative burdens stifle economic growth.
- Investigation into financial barriers, including high interest rates and limited access to capital.
- Evaluation of the negative impacts of corruption and poverty on business development.
- Development of strategies to foster entrepreneurship and economic advancement.
Excerpt from the Book
Inadequate Education System
Education in Africa is a heritage of colonial system which did not intent to develop entrepreneurship in colonized countries. Courses are dominated by modules that are not related to entrepreneurship, but full of content foreign literature like French, English, history, etc. Courses offered by universities are disconnected to labor market needs and new technologies. Courses are fuller of theory without practical knowledge. Professional courses are limited, and graduated are full of theorical knowledge.
Albert et al. (2010) said 1980s experienced stagnation and decrease due to a drastic fall in education financing further to the balance of payment and budget deficits, and the ensuing structural adjustment programmes. He added that African education sector continues to face serious challenges of low and inequitable access to education, irrelevant curriculum and poor learning outcomes, inadequate political commitment and financing, weak education system capacity, and weak link with the world of work. BBy the time I’m writing this essay, some African countries are in civil war like Central African Republic, Somalia, Sudan, etc. Some other countries security is not fully guaranteed like in Burundi, Congo Democratic Republic, South Africa, etc. Situation in Syria is catastrophic now.
Summary of Chapters
Introduction: Provides an overview of why African and Middle Eastern regions lag behind in economic development and outlines the primary obstacles to entrepreneurship.
Inadequate Education System: Discusses how colonial-era education models and a lack of practical, market-oriented training hinder entrepreneurial growth.
Division and War: Explores how ethnic and cultural diversity, when coupled with conflict, creates unstable environments that deter entrepreneurial engagement.
Heavy Admistrative Procedures: Highlights the burden of bureaucratic inefficiency and poor infrastructure in regions like Sub-Saharan Africa compared to global standards.
Difficult Access and High Lending Interest Rate: Examines the prohibitive cost of capital and how high interest rates limit company growth and investment.
Low Income or poverty in the regions: Explains how poverty restricts consumer purchasing power and limits the personal savings necessary for individuals to launch new ventures.
High corruption in the regions: Details how systemic corruption discourages entrepreneurship by increasing operational costs and undermining economic development.
Keywords
Entrepreneurship, Economic Development, Africa, Middle East, Education System, Poverty, Corruption, Lending Interest Rate, Administrative Procedures, Colonial Legacy, Infrastructure, Business Financing, Regional Conflict, Economic Growth, Labor Market.
Frequently Asked Questions
What is the primary focus of this essay?
The essay explores the fundamental reasons behind the lagging economic development in Africa and the Middle East, specifically analyzing the structural and socio-political barriers to entrepreneurship.
What are the central themes discussed in the text?
The key themes include the inadequacies of the education system, the negative impacts of war and regional division, administrative inefficiencies, high financial costs, systemic corruption, and the consequences of poverty.
What is the main research question or goal?
The primary goal is to identify why entrepreneurship has developed slowly in these regions and to offer suggestions on how to facilitate more assertive economic growth.
Which scientific methodology is applied?
The work utilizes a descriptive analysis approach, synthesizing reports from international organizations like the World Bank and Transparency International alongside academic literature to evaluate economic obstacles.
What topics are covered in the main body?
The body covers specific obstacles such as educational gaps, conflict, administrative bureaucracy, financial inaccessibility, low income levels, and high corruption, followed by potential solutions for reform.
Which keywords characterize this study?
The study is characterized by terms such as entrepreneurship, economic development, corruption, structural adjustment, and systemic institutional barriers.
How does the colonial legacy specifically impact the education system in Africa?
The text suggests that the current education system is a heritage of colonialism that prioritizes foreign literature and theoretical knowledge over practical skills relevant to contemporary labor market needs and technology.
Why is the high bank lending rate identified as a critical barrier for entrepreneurs?
High interest rates in countries like Zimbabwe, Angola, and Kenya significantly increase the cost of financing, making it difficult for companies to invest in productive equipment and achieve growth compared to developed economies.
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- Antoine Niyungeko (Autor:in), 2020, Economic Development Obstacles in Africa and the Middle East. Reasons for the Slow Development of Entrepreneurship, München, GRIN Verlag, https://www.grin.com/document/956949
