By Grant Bridgman
The air is clearing after the spectacular financial crisis, markets are once again picking up, but will it be business as usual? Modern economic theory has been shaken to its roots, and its core assumptions are undergoing serious revision. What does this mean to Africa?The African economy at present is largely driven by the extraction of its bountiful natural resources, or more precisely, the presence of foreign direct investment (FDI) lured by the prospect of scarce resources and profit. Most foreign investors, as well as the international body of Aid donors, have encouraged a Laissez Faire, neoliberal styled governance of Africa’s resources, and for good reason. Neoliberal economic theory was the champion of the last decade’s commodity boom. Letting the market run free in many African markets sent the growth rates of those resource rich African nations soaring, as China, the US and private investors vied for a slice of Africa’s largely untapped natural resources.