"Commentary"-A Marshall Plan for Africa
Monday, June 25, 2007SUSIE GHARIB: In tonight's commentary, a business plan to improve the economic infrastructure in Africa. Here's Glenn Hubbard, dean of the graduate school of business at Columbia University and former chairman of White House Council of Economic Advisers for President George W. Bush.
GLENN HUBBARD, GRADUATE SCHOOL OF BUSINESS, COLUMBIA UNIV.: Sixty years ago this month, U.S. Secretary of State George Marshall announced what became known as the Marshall plan for Europe in a famous commencement address at Harvard. Given the high rate of extreme poverty in sub-Saharan Africa and the fact that Africa is poorer today than it was 20 years ago, why not a Marshall plan for Africa?
A true Marshall plan for Africa could ignite growth and reduce poverty, but only through a different set of institutions than the current aid system. Familiar grand aid plans have little in common with the original Marshall plan. Familiar grand aid plans have little in common with the original Marshall plan. The Marshall plan for Europe fostered business sector development with an emphasis on loans and economic infrastructure. A real Marshall plan for Africa would also do only business development. Of course, Africa has tremendous social needs that call for concentrated attention from expert agencies, but those same aid agencies contain many small units that have pioneered support for African business.
An African Marshall plan would expand the best practice of those agencies from a sideshow to the main event in African aid. George Marshall was very clear that the breakdown of Europe's business structure was the problem that aid must solve. That logic applies to Africa today. A thriving business sector is the key to improving political and social progress. Aid must help, not hinder, and reform itself and our business leaders have a responsibility to act. I'm Glenn Hubbard.
