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A Resource-based View of Africa: Why Africa Cannot Take Care of itself Despite its Numerous Resources

Allan Afuah, University of Michigan

Description

Semester:

  • Winter 2005

Speakers:

Allan Afuah, Strategy, Ross School of Business, University of Michigan

Lecture Time:

Fri, January 21, 2005 @ 1:30 pm to 3:00 pm

Lecture Location:

Room 4212, School of Education

Speaker Webpage(s):

http://www.bus.umich.edu/FacultyBios/FacultyBio.asp?id=000279039

Introduced By:

No introduction available.

Abstract

Africa is endowed with more natural resources than any other continent and yet, it is so poor that it often has to rely on outside aid to fight starvation and misery. Some scholars attribute this extreme poverty to the ravages of colonialism and the Cold War while others ascribe it to corruption, lack of democracy, property right problems, and laziness. I take a strategic management view and argue that Africa’s continued poverty has its roots in a free rider problem. For most African countries, transactions at all levels—international, national, inter-organizational, and interpersonal—are rife with free riding, making the exploitation of the continent’s resources very inefficient. Free riding can be curtailed by a reduction in information asymmetry, monitoring and the right incentives. I propose that transparency, selfless leadership and an “earn-it” mentality will go a long way to reduce free-riding in Africa and help the continent fight poverty.

Recommended reading:
You can read anything on free riding or Africa’s resources. You could also read King Leopold’s Ghost by Adam Hochshild, Houghton Mifflin (1999) but keep in mind that the book is just one point of view.

Recording & Additional Notes

No recordings available.

Introducer: Aleksandra Kacperczyk, Ross School of Business