Economics of Africa

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Economics of Africa

• Yes, you need to take notes!

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Lets review the types of economies first

• Mixed
• Traditional
• Command
• Market
• For each type, what is produced? How are items
  produced? For whom are they produced???

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Mixed Economies

• Most countries (as you know of course) are mixed
  economies located on a continuum between pure
  market and pure command AKAright around
  herethat means some government involvement.

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Economics of South Africa

• Mixed (command)
• Strongest African economy
• White South Africans still hold the majority of
  wealth.
• 13 are HIV positive, therefore, less money is
  available for businesses due to healthcarethink
  human capital.

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Economics of Nigeria

• Mixed
• Oil rich, but poor economy and unstable
  government (what does that lead to?)
• Due to money invested in oil, many Nigerian
  farmers are poor and there is a lack of food.

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Diamonds, Oil, and More oh my!

• Please look on page 486 and 485 of your textbook.
  What do you notice about the location of the
  resources. Think about other facts that we have
  learned about like the location of disease
  throughout Africa
• Does the location of raw materials have any
  relation to the stability of a countrys
  government?
• http//news.nationalgeographic.com/news/2006/11/06
  1130-diamonds-video.html

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Take an educated guess (for candy??), which
regions in Africa have high literacy rates, low
literacy rates? Why?

• http//en.wikipedia.org/wiki/FileWorld_literacy_m
  ap_UNHD_2007_2008.png
• Now, make another educated guess. Which regions
  in Africa have a high GDP (gross domestic
  product, everything added together), which
  regions have a low GDP?

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Questions for Homework

• Go to Typepad and print the Economics of Africa
  word document and answer the following questions
• Compare/Contrast the economies of South Africa
  and Nigeria
• How does specialization encourage trade?
• Pretend you have a business idea in Nigeria or
  South Africa. Describe your idea below. Make sure
  it relates to your particular country. Explain
  what the entrepreneur does, what goods or service
  you want to provide, where you got your training,
  and what obstacles you may have ahead of you
• How does investment in capital and human capital
  effect the GDP of a country? Cite examples.
• How does the distribution of diamonds, gold, oil,
  and uranium impacts the economic development of
  Africa? Give examples.