Of The Rise Of Africa

                  Throughout the colonial era from the 1500's to the late 1800's European traded with various African civilizations and colonized much of Africa, eventually imposing their own economic and political system.  Also, the European colonist imposed Christianity onto the natives in many cases.  During this time European colonists took an exorbitant amount of resources out of Africa either by trading peacefully or forcefully taking control of an area and harvesting the resources from that area.  The English would establish their own government in the area when they took over a region for the purpose of harvesting the resources from the region.  When the French did this they allowed a respected native man to rule as a puppet for France.  When the Europeans did this they had governance over the natives living in that region.  European languages are still widely spoken in many African countries.  When the first World War took place from 1914 to 1918 much of the fighting took place in North Africa as European nations still had colonies there.  Indeed, resources such as rubber came into European nations from Africa to help the war effort.  World War 1 was the first Total War because it was the first war in which countries devoted their full resources to the war.  This brought a boom the manufacturing industry and some European countries.  However, after the war ended it took time for industry to switch from making guns to "butter".  This difficulty in switching back to consumer products result in high levels of inflation.
              Eventually, technological advances such as the radio and the latest car brought the economy into the Roaring 20's.  The Roaring 20's was characterized by a rising middle class, growth of a financial elite, and jazz.  Also, then American President Coolidge followed a hands-off economic policy.  Thus, keeping the role of government limited.  The stock market soared to new heights as investors brought more and more shares of stock on margin.  Buying on margin allows an investor to buy shares of stock by borrowing money. The Federal Reserve lowered interest rates and even more people borrowed money to buy stock.  Meanwhile, farmers were deeply in debt as overproduction caused prices of crops and meat to sink.  Eventually, overproduction spread to manufacturing as factories had warehouses full of inventory.  On October 29, 1929, Wall Street was forever changed when Black Tuesday hit and the stock market crashed.  Many people lost their life savings and people who borrowed money to buy stock had the most to lose.  There a run on banks as many people withdrew large sums of many from banks en mass causing many banks to fail.  It is important to note that throughout American history up to this point due to regulations that made it difficult for banks to operate in multiple states, so most banking was done with a locally owned and operated bank.  The Great Depression hit as many people lost their jobs as business shut down.  Eventually, many people struggled to survive as food became scarce and many farms were foreclosed.  Sometimes if a farm was going to be foreclosed, the farmers friends would take down advertisements for the auction so that no one else would come.  Then when the foreclosure auction took place the farmers friends would bid low to buy the farm and then give the farm back to the farmer.  People moved from one place to another thinking that one area would be more prosperous then the rest of the country.  In 1933 Franklin D. Roosevelt was elected president of the United States.  Roosevelt implemented a series of regulations and programs that became known as The New Deal.  Roosevelt started the Works Progress Administration which put many people to work.  Also, he created the first social security program for the elderly and widowed.  He passed regulations that encourage workers to unionize.  The Glass Steagall Act of 1933 was into law under his administration.  This law separated commercial banking from risky investment banking.  Furthermore, he created the FDIC (Federal Deposit Insurance Corporation) to insure deposits up to a certain amount.
             In 1939, when Germany invaded Poland, World War 2 started.  The U.S did not get involved in World War 2 until 1941 when Pearl Harbor was bombed by the Japanese.  This war proved to be far more wide spread and devastating.  I will explain World War 2 further in depth in later blogs.  In the aftermath of World War 2, many European countries abandoned their colonies allowing the natives and the European colonist to govern themselves.  Eventually, violence erupted as people could not agree on the results of elections.  Also, Europeans drew up the borders for African countries and in many cases accidental put several ethnic groups into one country.  These ethnic groups did not get along.  Civil war broke out in many countries.  This conflict stunted economic development in many African countries.
        Recently some African countries have held elections that both sides have accepted the results of.
 Also, Africa is slower becoming more politically stable.  However, terrorist groups such as ISIS and Boko Haram still terrorize North and West Africa respectively.  It is important to note that 2010 there was a regime change in Tripoli, Libya, and Egypt.  The presidents of these countries had been in office for forty years with no legitimate elections to justify their lengthy administrations.  This may lead to North African nations becoming stable Democracies.  Also, Sudan split into Sudan and South Sudan.  This may lead to more stability in the country.
          In recent years, China's One Belt, One Road Project has extended into Africa.  China has been giving loans to African countries for China to build infrastructure there.  In other words,  African nations are borrowing money from China to pay China to extend its One Belt, One Road Project into Africa.  This could lead to more economic growth in Africa as upgraded infrastructure helps businesses and individuals.  Also, the improved infrastructure will facilitate trade and foster entrepreneurship.  It is important to note that South Africa is seizing land from white farmers and giving the land to other people.  Often times the people that the government gives the land to do not know how to take care of it and agriculture suffers.  This could lead to starvation and violence in South Africa.
          As I've mentioned in an earlier blog, Mummer Qaddafi was named chairman of the African Union.  He immediately proposed the formation of a unified state with a single currency.  In March 2009 the African Union released a document about running a central bank under an African gold standard for a single currency for the whole continent of Africa.  This idea may have brought peace and prosperity to the continent of Africa.  However, there are problems with a gold back currency.  Under a gold back currency the government is limited in the amount of money it can issue by the gold supply.  Also, inflation tends to be higher under a gold standard.
   

References

"Why South Africa's Gov't Plans to Strip Land From White Farmers"

https://www.rt.com/news/420181-south-africa-land-redistribution-explained/