The Collapse of the Euro if it happens

The collapse of the Euro if it happens will be bad for Europe and for everyone at least in the interim. However, it plays squarely in the hands of emerging economies..and definitely signals the final shift towards China as the country sitting side by side with the US at the 'economic high table' surrounded by European countries armed with a proverbial economic begging bowl with India, Russia and Brazil with a wide grin as permanent invitees to economic power table. The collapse of the Euro on the hand could be the best thing for Europe as it will finally bring to end a misconceived economic experiment (Euro) without political integration. Europeans expected monetary union without political integration and will ...i.e the Euro is good in principle but I am suprised it lasted this long given the economic, social and political disparities that exist in the Euro Zone area and the wide EU. When this happen we shall see Old Europe i.e German ,the UK, France emerge less battered compared to Portugal, Spain, Greece, Italy, Albania, Croatia, Poland, etc..countries that did not join the Euro will definitely feel vindicated though not immune from the fallout. Scandinavian countries such as Sweden, Norway, Finland with the exception of Iceland (would need to revisit some economic data on Iceland and I would love to hear what Icelandic comrades think). ...the old alliances will resurface as European major economic powers fight for 'clean economic air to breath'. A whole new scramble for new alliances and resources will begin...expect the the full circle here..more like a dejavu or a worst case scenario a nightmare. The fall of the Euro will impact alot of things from immigration to political relations to financial rules to regulations. Here are some important questions: 1. Are African leaders and decision makers learning from what is happening in the Euro-zone given the fact that they have sounded the idea of a common currency? 2. What would be Africa's economic position post Euro i.e would Africa be affected and in what way? 3. What would be the position of the IMF and World bank post Euro given that alot effort to stem the contagion has the blessing of the European central bank (ECB), IMF and WB? 4. Would the failure of Euro go down in history as the spectacular failure of the IMF and World bank?

Mining in Africa benefits and Challenges

There is no other continent that is truly endowed with the abundance of natural resources like Africa (90% of all known metals are found in Africa). The continent is a major producer of several metals including Diamonds, Gold, Uranium, Manganese, Bauxite, Nickel, Cobalt, etc.  

Copper wires

However, Africa does not benefit from her abundant natural resource at a significant level to impact economic development and remove most of her population out of poverty.  Africa has about 35% of the planet's mineral reserves, including 50% of gold, 70% cobalt and 92% of the world's platinum group metals.

Gold bars

Variety of precious stones

Africa is well endowed with fossil fuels and gas resources. However, knowledge about the quantities of these resources is limited and a comprehensive, country-based assessment still remains a challenge. However, new discoveries of oil and gas resources on the continent continue to emerge and present unique economic opportunities. However, the exploration and exploitation of these resources are yet to benefit the populations.  Nigeria, for instance, has been exploiting oil resources for the last 50 years and is now the world’s fourth largest oil exporter. Yet, its human and physical capital development is assessed to be 400 percent lower than it would have been if the oil revenues had flown into public funds, and if such funds had been utilized in the public interest to generate economic opportunities for all.  This is often in stark contrast to Middle Eastern oil producing countries such as Oman, Kuwait, etc.

Oil Refinery

Metal Market trading

The increase in exploration and mine development in Africa has been primarily focused on Copper, Gold and Diamond exploration, now Iron, Manganese. Most African governments have failed to focus on turning mineral raw materials and crude oil into finished products. They export copper cathode only to import copper wires, they export crude oil only to import refined oil which defies logic and conventional wisdom. This ignorant act only benefits the countries that turn raw materials into finished products in terms of jobs and revenues.  There is also an issue of location in terms of trade of mineral commodities, For example, major mineral markets and exchanges are in countries that do not produce Copper, Iron, Manganese or Diamonds.  Thus, the non mineral producing countries through self-interest unethically control both the market and production of finished products.  African countries that produce ores are often left at the mess of the volatile metal markets despite the tremendous abundance and potential for base metal and industrial mineral deposits.