Mr. Jassey-Conteh, I am glad that we are now focussing on issues other aspects of growth and development. I will be very brief and to the point. I am the least surprised at the “arrogance and ignorance” displayed by some of your strategic management classmates. In fact, I am surprised that you were surprised. They cannot help but be ignorant about Africa because there is no news coverage at all unless there’s one form of disaster or another. And they will continue to be arrogant as long as the American economy continue to perform well and American raw power and diplomacy continue to dictate the terms of trade. Do we, as Africans, sit back and do nothing? Certainly not. You will continue to be unhappy with the company you work for, for their lack of interest in investing in Africa, unless we take the necessary steps to reverse the current trend. The environment must be business- friendly if direct foreign investment is to flow in our direction. Presently, the cost of doing business in Africa is high “where transport and related costs raise the cost of capital goods by 50%”. Power outages, bribes and violence add to costs and our woes. “ In Uganda, an average of 91 days a year of lost production due to power outages”. In The Gambia, the unofficial figure is estimated to be higher than Uganda’s average. ADB/WD Report shows that in Uganda, the median firm pays bribes equivalent to 3% of gross sales or 28% in investment in plants and equipment. (No comparable figure is available for The Gambia). Even a robust economy like the United States cannot sustain inefficiencies of this magnitude. We must commit ourselves to creating the necessary environment to attract and retain business entities such as the one you work for. In my view, the risk factor in doing business in Africa must be addressed which goes beyond political and social stability, which are necessary but not sufficient conditions for growth and development. The fiscal deficits that our governments continue to run must be brought under control. Huge debt service obligations make our respective economies more vulnerable to both internal and external shocks. We must contract concessional rather than commercial loans. These loans should not only be managed well by they must also be properly targeted. Foreign firms do not also trust our governments because of frequent policy reversals. Our national markets are small and fragmented. We must integrate our economies if we are to survive in the new global economy. Governments must lift restrictions, which seem to be everywhere; “restrictions through regulations designed purposely to generate rents for officials and favoured groups, constrain business activity and stifle growth”. We can make headway provided that the political will is there and the right policies in place. The Vision Statement of the Bank, with all its imperfections, is an attempt at addressing some of the issues raised in this note. Your comments on the Vision Statement are highly solicited. Sources: ADB Annual Report 1999 & Can Africa Claim the 21st Century? ---------------------------------------------------------------------------- To unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web interface at: http://maelstrom.stjohns.edu/archives/gambia-l.html ----------------------------------------------------------------------------