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Submitted by N. Bah gambia on
Few economists did forecast the economic melt down especially in the US, but their concerns where not taken seriously or just sweep aside as politically motivated.It is important for economists and other social science professional working and be able to deciminate their work for the ordinary person to be able to read it and understand it. There is no economy that can work without an effective and effecient government and strong institutions. Governments in the past decades have largely been re-engineered through and it size and role reduced. This has lead to lot of development and innovations and rapid economic developments especially in the developed and emergin markets. One of the problems of this down-sizing and less government involvement is given too much powers to few and loosening of rules and ethic of some professions. Too much discresions and domant institutions to monitor this power lead to such catastrophic economic delt-down. In the case of the developing countries (SSA), governments were advise to down-sze, when in the first place the institutions and the human capatal is not there. Even where there is a capacity, the institutions are weak and marred with poor governance. Moreover, developing countries markets are so weak and depended on Dollars for business, no matter what forecast is given, if US dollar plummets or if there is a financial crisis in the US, it will automatically affect us. Therefore even if they predicted it, the African countries had little or no other strategy but to wait and hope that the West fastly rectify the economic discripancies. A possible solution in the future is for example the economic regions with Africa (SADC; ECOWAS etc) developing their own regional currencies that can be used as an international currency and also the currency have equal or about the same value to currencies like the euro or the dollar. In such a way, ecomomists and politicians can make local strategies to solve their financial crisis and if there is a crisis in other parts of the world forecast can be made and solutions lead-down.