Simon Rabinovich, the US economics editor for The Economist, dives into the challenges faced by Africa's educated and ambitious youth grappling with economic hardship and political disillusionment. He discusses how many young Africans are turning to side hustles and even considering emigration for better opportunities. The conversation also scrutinizes the so-called Department of Government Efficiency, revealing discrepancies in their claims about budget efficiency. Additionally, Rabinovich compares Germany's generous sick leave policies with those of other European nations.
African youth face significant economic barriers despite being well-educated, often resorting to side-hustles due to insufficient job opportunities.
A growing disillusionment with democracy among young Africans is prompting a shift towards authoritarian ideals for perceived stability amid economic turmoil.
Deep dives
The Economic Struggles of Young Africans
Many young Africans are grappling with economic challenges, often unable to find stable and well-paying jobs despite being more educated than previous generations. This situation creates a stark contrast to global trends, where youth typically have better employment opportunities than older individuals. In Africa, the rapid influx of young people into the labor market outpaces job creation, resulting in many having to juggle multiple informal gigs to survive. Amid this frustration, there's a growing sentiment of disillusionment with political leadership, as many young Africans attribute their economic hardships to ineffective governance.
Discontent with Democracy and Political Trust
A significant portion of young Africans is losing faith in democracy, with 60% expressing dissatisfaction with its functioning in their countries. This growing disenchantment occurs partly because many feel their votes do not count in a political landscape marred by manipulation and corruption. As a result, many young people have distanced themselves from traditional political parties and are increasingly attracted to more authoritarian solutions, reflecting a longing for stability amid economic uncertainty. Historical context plays a role, as this generation has no personal memories of the harsh military regimes, leading to a romanticized perception of authoritarian governance.
Inflation and Economic Realities in Germany
Germany faces economic challenges exacerbated by one of the highest rates of employee sick leave in Europe, which is largely influenced by its generous sick pay system. Employees receive full pay for six weeks while sick, with insurance covering any further leave, creating little incentive to return to work quickly. This system has contributed to escalating costs for employers, with annual expenses related to sick leave soaring significantly in recent years. As debate swirls around potential reforms, such as introducing waiting days for pay, conflicting viewpoints highlight the difficulty in striking a balance between supporting genuinely ill workers and preventing misuse of the system.
Africa’s young are educated, ambitious side-hustlers. But they are hampered by their economies and dispirited by their politicians. How to harness their vast potential? America’s so-called Department of Government Efficiency is, in a real-world accounting, not actually budging the budget much (8:25). And why Germans take more days off sick than other Europeans do (15:48).