Growth & Development That Africa Thesis

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Governments will not provide public goods to those they mistrust, as they will not expect to be able to collect taxes at a later date. In Africa, this again can be related to ethnic tensions -- governments and regions from different ethnic groups may have mutual mistrust that predates the colonial era.

Conclusions

Every nation will develop in its own way. For the most part, however, specific antecedents to development can be identified. Strong government is essential as lack of security will reduce investment -- both domestic and international -- and thus stifle economic growth. Strong government must nonetheless not confuse the rule of law with a mandate to expropriate wealth.

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The government will need to tax, but must do so only in accordance with the needs of the region for public goods. At some point, trust will need to be developed between the government and the people of the region. This trust fosters an environment that facilitates investment in private enterprise and subsequent investment of taxes by government in public goods. Nations that have struggled to develop typically lack security in all regions, they lack trust between government and the people and they lack responsible government taxation and spending policies.

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