Sangu Delle: In praise of macro -- yes, macro -- finance in Africa
Вставка
- Опубліковано 3 жов 2024
- In this short, provocative talk, financier Sangu Delle questions whether microfinance - small loans to small entrepreneurs - is the best way to drive growth in developing countries. "We seem to be fixated on this romanticized idea that every poor person in Africa is an entrepreneur,” he says. "Yet, my work has taught me that most people want jobs.” Delle, a TED Fellow, makes the case for supporting large companies and factories - and clearing away the obstacles to pan-African trade.
TEDTalks is a daily video podcast of the best talks and performances from the TED Conference, where the world's leading thinkers and doers give the talk of their lives in 18 minutes (or less). Look for talks on Technology, Entertainment and Design -- plus science, business, global issues, the arts and much more.
Find closed captions and translated subtitles in many languages at www.ted.com/tra...
Follow TED news on Twitter: / tednews
Like TED on Facebook: / ted
Subscribe to our channel: / tedtalksdirector
Now this is a great Ted talk. This dude obviously knows his stuff and is offering real solutions to problems. Fantastic stuff.
Plus he's actually quite funny.
Fantastic talk from this guy. I love Africa. I hope it becomes a prosperous continent in future, Afterall it is the birthplace of humanity.
Yes Africa shall rise, when we stop looking to the west for help. Africans need help from Africa, their are a lot of billionaires in Africa who can stop being so corrupt and help up and coming business ventures. Yes the west wants to help but it comes at cost.
sad but true!
corrupt billionaires in africa? stand up and kill them. show the people that being corrupt is wrong. remember the french revolution? i was there
Its not everyday your neighbor pops up in your youtube sub list.
Proud.
Used to be :)
I was excited about microfinancing but I knew there was something wrong about it. I just couldn't put my finger on it. Now, I see it. I thought micro-financing was the same thing as macro-financing or would at least eventually lead to it. This really clears it up for me. "Macro-financing/Macro-credits"..what a great term for the right idea. Regular investment doesn't quite cut it. Big businesses need support without strings attached. All that is needed is a careful profiling of entreprenueurs with great local business potential. Of course, Selection and regulation are still problems that are exposed to corruption.
This was a fantastic talk.
I'm made sad, though, because I feel that if one was to speak this honestly about these kinds of economic applications here in the States, one would most certainly be ridiculed and branded a conservative that "doesn't care about the poor"
This is basically what I tell charity fund raisers here in the UK (not as eloquently and detailed) when they approach me for a donation. Long-term strategies vs short-term handouts. I know which I prefer.
Best Ted Talk I've seen in a while.
Absolutely true: 2015 MICROFINANCE PRACTICE has extensively discussed on the need to provide people with job not a loan.
There is still a problem, what do we do about the corrupt governments in Africa?
My thoughts exactly, but is there really a solution to corruption? Even successful countries have their share of corruption. I'm not saying corruption isn't the problem nor am I saying it should be ignored, just curious.
Maybe a solution is that all members of government have no salary, this could mean only those passionate to change systems for the benefit the country would get in power. There's prbably a flaw to this solution...
Leo TL How would they be able to live with no salary? Also, a job with a small salary wouldn't attract as many smart and qualified people.
A solution to the problem would include a more transparent government, so the people can see what their government does and vote accordingly.
Mr. Whispers How exactly can a government be made more transparent? Is there another force that can make the government do that?
Freedom of the press and freedom of information (a public "right of access" to information held by public authorities).
Saying that micro-loans imply that there are only entrepreneurs in africa seems like a strawman argument. Who ever said that? Does not the whole community benefit from someone who is an entrepreneur? Does he not employ? Does he not provide goods and services valuable to others? You need to get rid of the corrupt governments and dumb and exploitative leaders who only seek to benefit themselfes. Asking for more money is just.... dumb.
He didn't ask for more money. What are you talking about? He is completely rejecting the aid model.
ananse77 Micro loans, the thing he so arrogantly dismisses ("forget about micro loans"), aren't aid. In case you don't know what the word "loan" means.
Michael Haimerl ??? I didn't say he said micro loans are aid. He can reject more than one thing. He rejected, *separately*, aid, free trade, and micro loans, as strategies that have not worked.
Indeed Africa shall rise
We need to build big businesses.
Yes, trade never made sense. Africa is a different economical environment, it's the core that needs to be treated and that core is it's resources. So it only makes sense that it needs INDUSTRY. It's just that western financial institutions trying so hard to exploit those resources exclusively by setting unproductive trading relations, ...for African nations.
But all that means is that Africa needs to do it themselves mostly since it's an endeavor focused on national production. So they need African entrepreneurs to draw help from developed nations. That's tougher but worth the effort long terms. In my opinion. ;D
I know this is not the topic of the video. But calling banana flour gluten free as if that was revolutionary made me chuckle. All fruits and vegetables are gluten free. Also the vast majority of the world has no problem with gluten despite the gluten free marketing fad that is reigning.
I think he was saying it was a gluten free flour alternative to traditional flour which can give access to flour for poorer people who may be celiac but can't afford the higher costs of gluten-free flour and bread and instead providing a alternative that isn't wheat based and uses locally grown food.
ThePretenderking
I don't think he said all that. I re-listened to it.
Overonator my thoughts exactly!
It doesn't matter how many micro transaction occur in africa because of how poor the continent is as a whole. Its like handing each person who lives in the dessert a bottle of water every month. What are they going to do the rest of the time. They need big business to create jobs for those people who are poor, so they can climb out of poverty and put their kids through school who will in time create businesses for even more people.
That's why this guy makes sense
Good talk except for one detail. Free trade has an extraordinary impact on economic growth. Empirical evidence is found in every developed nation in the world.
Yaaaaay! Let's go!
How is investment not a free market solution?
TCBeads I guess the micro-credit model had the goal of creating lots of local interpreneur that would compete in a free market. What he is proposing is to create big dominant corporations with little competition
assalane
Isn't that the goal of investment large or small, in a free market system?
I guess I don't understand his premise.
He didn't say his solution wasn't free market. He was opposing the idea that has been trendy in the development agency world for the past couple of decades that MICRO credit is the way to achieve development in developing countries.
ananse77
Macro, not micro. There's a difference.
TCBeads ??? Obviously there is a difference. He is *opposing* MICRO credit, which has been promoted by the multilateral development agencies and international charities for the past couple of decades, and instead championing *MACRO* credit, i.e. loans to large entrepreneurs. Did you even watch the video?
I get his point, but he forgets to say thank you for that 1 trillion we gave Africa, even if it didn't work out amazingly over night.
An opposite approach to the ongoing entrepreneurship trend to create jobs.
good idea but u still need kinds entrepreneur, the small and the mid size and the big ones.
This guy has a problem with aid (effectiveness?), yet where should the money to achieve this pan African dream comes from? TED have a lot better presentations on how to help africa imo
aid just goes to the leaders, and none of it goes to the people
WOW, is he talking about free market capitalism?
Capitalism lives!
First
I found this presentation pointless and idiotic.
Getting credit to large corporations in Africa isn't a problem. They have banks over there, the people have savings, so what's the problem?
Protectionism, strangling regulations, and mainly the lack of land &property rights - all mean that investing in Africa simply doesn't pay off. Yet this guy dismisses 'free trade' at the start of the video as not being the solution for Africa.
China eradicated starvation in less than 2 years with their free market reform in the 70s, Africa can do the same quite easily.
Lol. You have to understand the concepts before you critique them. Free trade means removing / lowering tariff and non-tariff barriers to imports from and exports to foreign countries, as promoted by the WTO. China has NEVER embraced "free trade" in that sense. China has always followed its own path, WTO rules be damned.. I am pretty sure the speaker supports free markets within Africa, he just does not support the idea that, for example, US should be able to export goods tariff free to developing countries and forbid them to subsidize their producers, while, in contrast, the US subsidizes its own farmers and has a lot of non-tariff barriers that keep foreign goods out of US markets.
ananse77 not all free trade rules need to be "embraced" in order to improve an economy.
There is no question whatsoever that China's emergence from poverty was due to freER trade with the west.
In 2 years they went from being on par with Africa to situation where hunger doesn't exist. More should be learned from this.
LibertyDownUnder I think what should be learnt from this is that countries should do what they think is right to improve their economies, despite what the world consensus is telling them is the right thing. A lot of China's growth is export driven. They can dominate the world in exports because their goods are cheap, because they keep their currency undervalued, despite the US and all the multilaterals complaining that it is wrong for them do to this. The Chinese also have strong state involvement in entrepreneurship. It is state agencies and banks that play the largest roles in the economy - pursuing resources and infrastructure projects at home and all over the world, and also backing industries and private entrepreneurs at home that they think are winners - other things the traditional economics text books tell you is bad, and anti-free market. If anything, Africa has freer markets than China. If they are to follow the Chinese model, what is missing are strong, educated, highly effective, benevolent states.
ananse77 yes, I've been to Africa, and no, the Chinese recovery was NOT about a strong state.
Prior to the reforms, their Government controlled ALL land, food production & industry. The reforms were a complete reversal of this.
I have never heard anyone suggest that a "strong" state was the key to China's rise.
Please let me know what you're basing it on.
Proud example of efficient and educated aid to Africa, which is hugely diverse and not all countries in the continent share the same problems. We need to educate ourselves, and do things that actually work, rather than just throw money at people and governments.
Obama bin Laden, more reasonable than Obama or Bin Laden!
kakaokuh half obama and half bin laden, but stronger than both!