The Shackled Continent

By Alex Singleton | 11 February 2005

The Shackled Continent is an important book. Written by Robert Guest, Africa Editor of The Economist, it provides an illuminating account of why Africa is so poor. His conclusion is that sub-Saharan Africa is poor because it is shackled by poor government. Guest has spent six years reporting from Africa, and fills the book with accounts of what he has witnessed.

Guest argues for "fair aid, free trade". He explains how aid has often been wasted on arms, to provide luxuries for the ruling elite, and to be put away in Swiss bank accounts. African leaders sometimes call for a "Marshall Plan" to help Africa like the Marshall Plan that helped rebuild Europe after World War II. But, as Guest explains, Africa has already received the equivalent of six Marshall Plans, and yet is still poor.

Aid without economic reform, he shows, has a negligible or negative effect on economic growth. Free trade and economic reform without aid, however, does lead to economic growth. A combination of reform and aid together brings the fastest growth. His book contrasts strongly with politicized Western campaign groups like "War on Want" who counterproductively argue against economic reform.

Western campaign groups knock economic reform, but it is essential. Guest compares Zambia and Botswana. Zambia nationalized "everything from the copper mines to hair salons and dry cleaners". Currency controls and tariffs stopped imports. Officials directed the economy. Its economy withered. Foreign aid helped the government to avoid essential reforms, which kept the country poor. Conversely, Botswana allowed private business to flourish, followed the path of economic freedom, and in the last 35 years has experienced the world's highest economic growth.