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Role of New Economics to African Problems

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African Area Studies

Every African colony depended entirely on producing a few items by the European

powers. It enhanced output and European profits; however, the system meant that even little

variations in the cost of a specific item might have enormous consequences for the status of the

economy, subjecting Africans to severe economic suffering.

Colonial rulers collected fees on African people to support the colonial system, claiming

that colonialism benefitted Africans. Yet, the colonial authorities spent relatively little on

African-specific services like health care and education. Instead, most resources went to

providing services for Europeans and strengthening the economic system (Watson, 2014).

Africans were forced to labor for European enterprises and settlers to pay the heavy taxes levied

on them.

European colonial regulations favored Europeans more than Africans doing

business. European banks have declined to lend to African enterprises. The British frequently

used an indirect rule approach to govern. Colonial officials used traditional chiefs as

representatives of the colonial administration under this arrangement (Watson, 2014). Traditional

chiefs took on new duties as tax collectors and labor recruiters. Although traditional leaders kept

their power roles in this arrangement, their authority came from the colonialists rather than their

people.

The Cold War had a suffocating impact on Africa. It was, in many ways, a second rush

for Africa. In this situation, the big powers, the United States and the Soviet Union, tried to

prevent one another from owning Africa. Neither the United States nor the Soviet Union

achieved their African policy goals (Iliffe, 2007). The Soviets sought to impose a rigorous

philosophy and economic model on an area starving for innovation. Even though the United
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States fought for African freedom from slavery, anti-communism and cold war measures were

insufficient to meet the demands of post-independent Africa.

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References

Iliffe, J. (2007). Africans: The History of a Continent. Cambridge University Press.

Watson, T. (2014). Colonization and Independence Africa. The Choices Program, Watson

Institute for International Studies, Brown University, Providence, RI.