The myriad of political pundits, politicians, economists and sundry money men across the length and breadth of the African continent continue to make me wonder, if imaginative thinking has somehow avoided the whole continent.
Take for example the newly elected president of Senegal, said to be the youngest president ever to have been elected in the history of the country.
What does he do?
He is inaugurated with two First Ladies.
Whereas to be taken seriously he would have left his two wives out of the equation simply because they were never on the ballot alongside him.
Instead of ‘inaugurating’ with his two wives he should perhaps have ‘inaugurated’ a rapid acceleration to bridge the technological gap. After all, he’s of the age group of many tech billionaires in the United States. To be fair to him though, it’s still early days yet.
But to this extent the ‘follow follow’ mentality doesn’t allow the young president to be any different to other nonagenarian presidents of other francophone African countries.
The reasons for this mental inertia are not far fetched when you consider that policies like these listed below require a certain level of mental agility and geopolitical thinking.
Developing countries should look beyond ‘pedestrian follow follow’ economic policies for several reasons:
Innovation and adaptability: Traditional economic policies might not cater to the unique challenges and opportunities that developing countries face. Embracing innovative policies allows these countries to adapt more effectively to changing global economic landscapes.
Diversification: Relying solely on conventional economic strategies can lead to over-reliance on a few sectors or industries. Diversifying the economy through novel policies can mitigate risks associated with sectoral downturns.
Sustainability: Modern economic policies often prioritise sustainable development, taking into account environmental, social, and governance (ESG) factors. This holistic approach ensures long-term growth without compromising future generations’ well-being.
Inclusive growth: Conventional policies may not always address inequality and social disparities effectively. Progressive economic strategies can foster inclusive growth, ensuring that the benefits of development reach all segments of society.
Global competitiveness: To compete effectively in the global market, developing countries need to adopt forward-thinking policies that promote innovation, enhance productivity, and attract foreign investment.
In this regard Vietnam stands as a perfect example of a country which has taken advantage of its proximity to China and has also benefited from the western world’s disaffection with China.
Resilience to shocks: Flexible and adaptive economic policies can help countries better withstand external shocks, such as economic downturns, pandemics, or natural disasters.
Harnessing technology: Embracing advanced economic policies allows developing countries to leverage technology and digital transformation, driving productivity gains and enhancing competitiveness on a global scale.
There are additional ideas on why developing countries should explore more innovative economic policies:
Human capital development: Investing in education, healthcare, and skill development through modern economic policies can enhance the quality of the workforce, leading to higher productivity and competitiveness in the global market.
Infrastructure investment: Strategic infrastructure development, facilitated by innovative economic policies, can improve connectivity, reduce transaction costs, and attract both domestic and foreign investments.
Public-Private Partnerships (PPPs): Engaging in PPPs through progressive economic policies can leverage private sector expertise and resources to accelerate infrastructure development and service delivery, while also ensuring transparency and accountability.
Financial inclusion: Implementing policies that promote financial literacy, access to credit, and inclusive financial services can empower marginalised communities, spur entrepreneurship, and drive economic growth from the grassroots level.
Trade and investment liberalisation: While protectionist policies might offer short-term benefits, embracing liberalised trade and investment regimes through modern economic policies can foster greater integration into the global economy, expand market access, and stimulate economic diversification.
Institutional reforms: Strengthening governance structures, rule of law, and regulatory frameworks through innovative economic policies can enhance transparency, reduce corruption, and create an enabling environment for business growth and investment.
Regional cooperation: Developing countries can leverage regional cooperation and integration through collaborative economic policies, fostering trade, sharing resources, and addressing common challenges collectively.
Adaptive and evidence-based decision making: Utilising data analytics, research, and evidence-based policy formulation can help developing countries make informed decisions, prioritise interventions, and monitor progress more effectively, ensuring policy relevance and impact.
By embracing these multifaceted approaches and integrating them into their economic policy frameworks, developing countries can unlock new growth opportunities, build resilience, and accelerate their journey towards sustainable development and prosperity.
At this juncture it may be useful to delve deeper into some key aspects that developing countries should consider when adopting innovative economic policies:
Digital transformation: Leveraging digital technologies and promoting the digital economy through progressive policies can drive innovation, enhance productivity, create new job opportunities, and improve service delivery across various sectors.
Environmental sustainability: Incorporating green growth strategies and promoting sustainable practices through economic policies can mitigate environmental degradation, address climate change challenges, and unlock opportunities in renewable energy, eco-friendly technologies, and green industries.
Social protection and safety nets: Developing robust social protection mechanisms and safety nets through modern economic policies can mitigate the adverse impacts of economic shocks, reduce poverty, enhance resilience, and promote social cohesion.
Cultural and creative industries: Recognising and supporting the potential of cultural and creative industries through innovative policies can stimulate economic diversification, foster cultural preservation, promote tourism, and generate employment opportunities.
Gender equality and women’s empowerment: Implementing policies that promote gender equality, women’s empowerment, and women’s participation in the economy can unlock untapped potential, drive inclusive growth, and foster social progress.
Youth engagement and entrepreneurship: Creating conducive environments for youth engagement, entrepreneurship, and innovation through tailored economic policies can harness the energy, creativity, and potential of the youth population, driving economic dynamism and renewal.
Responsible investment and corporate governance: Encouraging responsible investment practices, promoting corporate governance standards, and ensuring corporate social responsibility through progressive policies can enhance investor confidence, attract sustainable investments, and foster long-term business growth.
Adaptive and flexible policy implementation: Adopting adaptive and flexible policy implementation mechanisms that allow for continuous learning, feedback, and adjustments based on evolving realities, emerging challenges, and changing circumstances can ensure policy effectiveness, relevance, and resilience over time.
Incorporating these additional considerations into their economic policy frameworks can enable developing countries to address complex challenges, seize new opportunities, and pave the way for inclusive, sustainable, and resilient economic development.
In summary, developing countries should explore innovative and progressive economic policies to unlock their full potential, foster sustainable growth, and achieve broader socio-economic objectives.
And certainly the new young President of Senegal has an opportunity for a ‘breath of fresh air’ instead of the usual ‘follow follow’ of his predecessors and many other African leaders.
Innovation is key!
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