Magatte Wade, entrepreneur on a mission to unleash Africa's potential, discusses African poverty, over-regulation, corruption, Ubuntu, socialism's negative impact, flavors of capitalism, foreign aid, special economic zones, startup city rules, common law vs civil law, and how people can get involved.
Excessive regulations and over-regulation are the main causes of Africa's poverty, stifling business growth and economic development.
Africa needs to focus on creating an enabling environment for economic growth, including improvements in governance and a business-friendly climate.
Foreign aid, when in the form of government-to-government assistance, perpetuates dependency and corruption, hindering self-sufficiency and sustainable development in Africa.
Startup cities, or special economic zones, have the potential to drive economic growth and development in Africa by attracting investment, creating jobs, and unlocking the continent's potential.
Deep dives
The Negative Impact of Over-Regulation on Africa's Development
Africa is often referred to as the poorest region in the world, with 17 out of 25 lowest GDP per capita countries located in sub-Saharan Africa. However, the main cause of Africa's poverty is not colonization or lack of education, as commonly believed. The real issue lies in excessive regulations that make it extremely challenging for entrepreneurs to operate. The over-regulation stifles business growth and hampers economic development. To address Africa's economic challenges, it is crucial to have a proper diagnosis of the problem and focus on creating an environment that harnesses the power of the free market.
The African Paradox: Rich in Potential yet Hindered by Mismanagement
Africa faces a paradox as the poorest region with abundant human capital and vast natural resources. The continent has a young and growing population, making up a significant portion of the world's future population. However, if not managed properly, this demographic advantage can become a ticking time bomb leading to poverty and instability. Africa needs to shift its focus towards creating an enabling environment for economic growth, including improvements in governance, investment in education, and the development of a business-friendly climate.
Reexamining Africa's Historical Roots and Philosophy
Contrary to popular belief, Africa's historical roots reveal a market-driven economy and a decentralized approach to governance. While Ubuntu, a philosophy emphasizing community and collaboration, exists, it does not contradict a capitalist economic system. Africa thrived with sophisticated trade routes and self-enforced mechanisms to ensure fairness and justice. The problem arose when Western ideologies, such as socialism, were embraced without fully understanding Africa's history and culture. Recognizing the strengths of pre-colonial Africa, along with implementing systemic changes, is crucial for Africa's future development.
Rethinking Foreign Aid and Focusing on Systemic Change
Foreign aid, particularly when it comes in the form of government-to-government assistance, has often perpetuated dependency and corruption in Africa. Rather than leading to meaningful development, foreign aid can entrench power in the hands of corrupt leaders, while stifling individual agency and fostering a culture of entitlement. Instead of focusing solely on charity and aid, it is essential to address the root causes of Africa's challenges, such as creating an environment conducive to entrepreneurship and economic freedom. Changing the rules of the game, including property rights, rule of law, and reducing excessive regulations, can enable self-sufficiency and sustainable development in Africa.
Solving poverty in Africa through startup cities
The podcast episode highlights the importance of addressing poverty in Africa through the establishment of startup cities. These startup cities, also known as special economic zones, function as next-generation zones with their own governance and commercial laws. By creating an environment conducive to business and investment, these cities aim to provide a world-class business environment in Africa. Privately funded and supported by governments, these cities offer the opportunity to attract investment, create jobs, and unlock Africa's potential. The podcast emphasizes that by solving poverty, Africa can unlock the full potential of its population and play a significant role in shaping the future of the world.
The role of conscious capitalism and value creation
The podcast discusses the importance of conscious capitalism and value creation in creating prosperous startup cities. Conscious capitalism emphasizes purpose maximization over profit maximization, considering the well-being of various stakeholders, including employees, suppliers, customers, the community, and the environment. By promoting a win-win approach, conscious capitalism encourages businesses to create value in a sustainable and ethical manner. The podcast suggests that adopting conscious capitalism principles can lead to better business performance and attract investment. It emphasizes the importance of companies operating within these startup cities to have a long-term view and prioritize value creation for all stakeholders.
The potential of startup cities and getting involved
The podcast explores the potential of startup cities to drive economic growth and development in Africa. It highlights that these cities can serve as catalysts for change, providing opportunities for investment, entrepreneurship, job creation, and innovation. The podcast encourages individuals to get involved by educating themselves about startup cities and their potential impact on poverty alleviation. It suggests reading relevant books and research papers on the topic. Additionally, the podcast mentions the African Development Fund for Startup Cities, which provides an opportunity for individuals to contribute to the exploration and realization of startup cities in Africa. By supporting the development of startup cities, individuals can actively contribute to solving poverty and building a brighter future for Africa.
Magatte is an entrepreneur on a mission: to unleash the potential of Africa. She’s a well known speaker, author and researcher who has written extensively about economic structures in the developing world, and the urgent need to create fairer regulatory environments to give everyone on earth access to the power of markets.
She is also the founder of various Senegalese companies including Adina drinks, Tiossan and SkinisSkin, and an advisor to various institutions including the Charter Cities Institute
Chapters
00:00:00 - Intro
00:01:20 - African poverty, and her personal story
00:22:01 - Over-Regulation and Corruption
00:27:42 - What is Ubuntu?
00:32:17 - Kritarchy vs centralized structures
00:37:20 - Why Socialism was bad for Africa
00:42:57 - Flavours of Capitalism
00:49:35 - Thoughts on Foreign Aid
01:02:48 - Special Economic Zones
01:10:21 - What Rules Should a Startup City Have
01:15:50 - Common Law vs Civil Law
01:28:16 - How people can get involved
Links
♾️ Her website - https://www.magattewade.com/
♾️ Heart of a Cheetah Book - https://www.magattewade.com/book
♾️ Givedirectly - https://www.givedirectly.org
♾️ Against Malaria Foundation - https://www.againstmalaria.com/
♾️ Noah Smith - Futurism is Afro-Futurism - https://www.noahpinion.blog/p/all-futurism-is-afrofuturism
♾️ It’s Not About Whiteness It’s About Wealth Book
https://www.amazon.com › Its-Not-About-Whiteness-...
♾️ Kritarchy - https://en.wikipedia.org/wiki/Kritarchy
♾️ Conscious capitalism - https://www.consciouscapitalism.org/
♾️ Startup/Charter cities - https://chartercitiesinstitute.org/
♾️ Prospera - https://www.prospera.co
Credits
♾️ Hosted by Liv Boeree
♾️ Produced & Edited by Raymond Wei
♾️ Audio Mix by Keir Schmidt
The Win-Win Podcast:
Poker champion Liv Boeree takes to the interview chair to tease apart the complexities of one of the most fundamental parts of human nature: competition. Liv is joined by top philosophers, gamers, artists, technologists, CEOs, scientists, athletes and more to understand how competition manifests in their world, and how to change seemingly win-lose games into Win-Wins.
Watch the previous episode with Boyan Slat of the Ocean Cleanup here: https://youtu.be/QEYbLN-LC5k
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