Economic fix by design

Submitted by Boko on 9 December, 2006 - 05:03.

You are today where your thoughts have brought you; you will be tomorrow where your thoughts take you.
- James Allen

A lot of parallels can be drawn between the informal/underground economies of developed countries like the US, UK, Canada, and the economies of sub-Saharan Africa (SSA) -- lost tax revenues, distrust of government, lawlessness, crime breeding grounds, low education and work skills, poor quality of commercial services (no warranty nor returns on purchases,) etc.

These characteristics pretty much define the economic twilight zone called the underground economy – regardless of whatever society it occurs in, however, the major difference lies in the proportions of occurrence. According to this article, the US loses about $35 billion tax revenues per annum to the US underground economy ($35 billion ~ GDP of Uganda OR almost 4X the GDP of Rwanda.) A minuscule 0.3% of US GDP, whereas in SSA, the underground economy typically constitutes 50% or more of the gross economic agenda.

The underground economic environment frequently and conveniently, forms the backdrop of crime paperbacks and movies – ruthless goons, mugging, homicide, violence, drugs, prostitution, etc. Or in the case of the above referenced article where the author conveniently builds his case against illegal immigration/immigrants in America entirely on the underground economy cliché. But I am seriously at odds with the author’s implied inference; shutting down illegal immigrants will shut down the underground economy. No sireeee – in good times or bad times, you will always have legal citizens who are criminals, prostitutes, working for under-the-table pay, etc., and neither can anyone attribute the chronic SSA underground economy syndrome to illegal immigration. Hence, I agree more with Venkatesh’s field notes, which gives a more humane face to the phenomenon; shadow economies are sustained in survivalist communities via a complex web of relationships that are not always criminal.

On the one hand, underground economies merely indicate flashpoints in any given socio-cultural specimen where social contracts between governments and the citizens have become very weak or completely broken. Besides arrantly corrupt and kleptocratic leadership, the failure of SSA economies is largely attributable to compromised, or outright lack of economic policies -- if they did exist and were seriously enforced, then kleptocratic leaders would not be above the law – the Mobutus would not pre-occupy themselves with building diamond encrusted mansions while children died of malnutrition, nor would the Bokassas cripple their entire economy in a week's worth of coronation charade – a whole week of naive pretensions at bourgeois aspirations and self-mockery!

Then on the other hand, underground economies are symbolic for lack of trust in the state or government as a result of (real and perceived) government breach of social contracts; hence the freedom-fighter premise: If the government does not provide any amenities to the citizens such as schools, electricity, roads, transport, security, employment, etc., what right does the government then have to demand any kind of recompense, acknowledgement or respect from the people?

Regardless of who’s right or wrong, the burning question is; what ways can we apply information and communication technologies (ICT) to reclaim and stabilize these pirate infested and out of control SSA economies — the most obvious advantage being the automatic doubling and tripling of their individual GDPs?

Let us persistently ask ourselves this question and continually apply our intellects to designing solutions instead of succumbing to dismissive superstition and defeatist maxims; don’t ever catch yourself saying, “everything will work out eventually” – someone or some people have to work hard to make things work out ok! Don’t just throw up your hands and say it’s the signs of the end times because it’s not – if there was going to be an end time, it would have been 300 years ago when African slaves got their feet and penises chopped off, their wives and children ravished routinely or their parents swapped or sold at the masters’ whim.

A Solution Approach

I have always fantasized about SSA governments operating as efficiently as commercial corporate entities – and even if I say “fantasize”, the concept is not totally fruitcake – Singapore already did it – they staked their entire economic future on the now famous PSA project, and next thing you knew they were the biggest port operation  in the world handling about 25% of global container shipments – heck, they were engaged as technical consultants in Rotterdam – yes, the legendary port of Rotterdam< which taught the modern world ocean freight logistics.
So let’s swap out our tech consumer hats for tech producer ones; think about the mobile phone in your hand for instance, examine all the features – volume control, ring tones, text messaging capability, Internet capability, hands free capability, open it up and look at the internal circuitry and imagine the thousands of lines of source code that constitutes the software that drives all the different features of the phone, (Hint: An artificial pacemaker  contains over 20,000 lines of source code.) and what processes it took to get it all together. And if you don’t find the mobile phone concept challenging enough, then consider the mobile phone towers and base stations, the transmitters and switches, the transmission and signaling protocols that all work in concert to enable you make and receive phone calls. (A mobile phone tower costs about $200,000 to build and equip, and the cost of buying and installing an exchange carrier switch with software licensing and support runs into the 7 and 8-figure range.)
I believe in social engineering just like I believe in engineering technologies -- the same engineering principles as obtained in the above mobile telephony concept is equally applicable towards fixing the SSA underground economic scourge in all it’s ramifications. That’s a start.

Please let us hear your thoughts on how to rein in and streamline these aberrant SSA economic segments by leveraging ICTs.

Submitted by roo on 9 July, 2007 - 06:03.
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Submitted by haw on 21 February, 2010 - 03:33.
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Submitted by bell22 on 29 March, 2010 - 16:30.
But I am seriously at odds with the author’s implied inference; shutting down illegal immigrants will shut down the underground economy. No sireeee – in good times or bad times, you will always have legal citizens who are criminals, prostitutes, working for under-the-table pay, etc., and neither can anyone attribute the chronic SSA underground economy syndrome to illegal immigration. effective online ads
Submitted by jimb12345 on 10 November, 2009 - 16:48.
its all about lost tax revenue. States need to draw in more tax revenue to help the state. this is why they are all broke. Orlando Personal Injury Lawyers
Submitted by shekar55 on 5 March, 2010 - 13:13.
Economic fix by design!!!! The underground doings could be improved on the economic downturn,eventually information and communication technologies (ICT) to reclaim and stabilize the pirated infested.THanks for such great post and sharing it.. træningsmåtte
Submitted by BlogT on 16 November, 2009 - 05:25.
There are many ways that the ICT industry can bring itself back to contribute to GDP - primarily, business confidence needs to increase. I wouldn't worry too much about it just yet - And here are some Blog Tips on the economy.
Submitted by shekar55 on 5 March, 2010 - 13:14.
Economic fix by design!!!!!!!! States need to draw in more tax revenue to help the state. The case of the above referenced article where the author conveniently builds his case against illegal immigration/immigrants in America entirely on the underground economy is cliché. But I am seriously at odds with the author’s implied inference; shutting down illegal immigrants will shut down the underground economy.Thanks for sharing this information... træpille
Submitted by sam242 on 17 November, 2009 - 17:05.
I believe that the U.S looses at least 35 Billion is revenue in "underground" doings. They spend money to fight drugs and the drug users spend money to buy them. I am not sure what the answer is but they need to do something! bridal shower games questions|funny bridal shower games
Submitted by bell22 on 29 March, 2010 - 03:19.
Yeah, I think US government should think more about it. Not to mention the worse financial global crisis that makes everything even worse. combat arms aim bot
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The gov is just a spending system, they spend spend spend and do not do it very well. They need a complete overhall! baby shower games|lawn mower review|wedding songs|cancer symptoms
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Submitted by bell22 on 24 March, 2010 - 06:03.
But I am seriously at odds with the author’s implied inference; shutting down illegal immigrants will shut down the underground economy. No sireeee – in good times or bad times, you will always have legal citizens who are criminals, prostitutes, working for under-the-table pay, etc., and neither can anyone attribute the chronic SSA underground economy syndrome to illegal immigration. Coats for women
Submitted by Alice Yusmic on 24 November, 2009 - 04:08.
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Submitted by manages on 16 January, 2010 - 06:45.
I think there will be no problems to get the African culture to “organically” evolve around the new ICTs. There were also other countries which made a similiar process and it always got faster as the most people thought. bankruptcy
Submitted by manages on 19 January, 2010 - 05:53.
The government does not provide any amenities to the citizens such as schools, electricity, roads, transport, security, employment, etc. Games
Submitted by kalayan on 20 January, 2010 - 10:13.
its all about lost tax revenue. States need to draw in more tax revenue to help the state. this is why they are all broke. free games online
Submitted by manages on 22 January, 2010 - 07:16.
I believe in engineering technologies -- the same engineering principles as obtained in the above mobile telephony concept is equally applicable towards fixing the SSA underground economic scourge in all it’s ramifications. lotto
Submitted by shekar55 on 13 February, 2010 - 14:29.
Economic fix by design!!!!!!!!! States need to draw in more tax revenue to help the state. The underground doings could be improved on the economic downturn,eventually information and communication technologies (ICT) to reclaim and stabilize the pirated infested.THanks for such great post and sharing it.. Horse Girl
Submitted by bell22 on 14 February, 2010 - 13:13.
The case of the above referenced article where the author conveniently builds his case against illegal immigration/immigrants in America entirely on the underground economy is cliché. But I am seriously at odds with the author’s implied inference; shutting down illegal immigrants will shut down the underground economy. memory foam
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This bookmarkingsite article clarifies some important aspects of World Bank report on the current economic condition of different parts of the World and special focus is on the future of sub-Saharan Africa (SSA) ICT panorama. easybookmarking
Submitted by Brande on 20 February, 2010 - 10:39.
This is the result of bad governance, in the older times the government wanted to remain in power so they would preach bribe to become richer and this thing has sort of got into the blood of the people. There is no billing or control over goods bought and sold. Money exchanges hands and the businesses are controlled by the wealthy. Sympathy flowers
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Submitted by bell22 on 4 March, 2010 - 08:08.
No sireeee – in good times or bad times, you will always have legal citizens who are criminals, prostitutes, working for under-the-table pay, etc., and neither can anyone attribute the chronic SSA underground economy syndrome to illegal immigration. insurance guide blog
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Submitted by bell22 on 17 March, 2010 - 13:22.
Or in the case of the above referenced article where the author conveniently builds his case against illegal immigration/immigrants in America entirely on the underground economy cliché. But I am seriously at odds with the author’s implied inference; shutting down illegal immigrants will shut down the underground economy. No sireeee – in good times or bad times, you will always have legal citizens who are criminals, prostitutes, working for under-the-table pay, etc. watch entourage here | watch true blood
Submitted by James on 18 March, 2010 - 07:51.
The case of the above referenced article where the author conveniently builds his case against illegal immigration/immigrants in America entirely on the underground economy is cliché. restraints