Thursday, August 5, 2010

Into Africa

From the Center for International Finance & Development at the University of Iowa College of Law:

Do not be mistaken, there is still hardship in Africa, but a recent report has carefully examined and explained why the African economy has the potential to thrive. Africa has an abundance of natural resources as well as human capital. Furthermore, African economies were more resilient through the worldwide recession of 2009 than many more developed economies . This resilience may have proven to investors that the African economy is not as risky as was once thought, resulting in an increased willingness to invest.

If they were "more resilient through the worldwide recession," if they can bounce back quicker, then I expect they have less debt. They may be poor, but they have less debt.

I expect they have less private-sector debt, so that the private sector is less disturbed by the sorts of problems that plague debt-ridden nations -- financial crisis and the threat of deflation chief among them.

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