Africa dependence on foreign goods.

agyerich
Posted June 6, 2019 from Ghana

Economic power can be generaly defined as the ability to control or influence the behavior of others through the deliberate and politically motivated use of economic assets. National economic power implies that a government is in a position to use, offer, or withhold such assets even when they are in private hands (for example, by mandating trade embargoes or imposing controls on exports to targeted countries). In fact, the exercise of economic power may well have economic costs because almost by definition it entails interfering with decisions made for economic reasons.

Economic power can also be thought of as the ability to resist external control or influence because dependence on external suppliers is sufficiently diverse to preclude vulnerability to outside pressure. Ghana, for instance, imports about 80 percent of it rice from foreign sources and is thus vulnerable to rice exporters as a group (although not to any one country). But what is sometimes forgotten is that sellers need markets. If Ghana was to significantly reduce its appetite for foreign rice it would gain relative economic power over these suppliers. Persuading others to establish a "consumer cartel," as some have suggested, would have an even greater effect on the balance of economic power.

An extreme example of the ability to resist external control is economic self-sufficiency. Certain great empires of history, such as imperial China, were almost entirely self-sufficient. But in today's world, the pursuit of economic self-sufficiency results in lower levels of technology and productivity and a greater degree of poverty than would otherwise be the case (North Korea is a perfect example). If market forces are allowed to operate, some countries will be more self-sufficient than others, but none will be completely self-sufficient in all sectors.

 

 

This story was submitted in response to Economic Power.

Comments 13

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Jill Langhus
Jun 06
Jun 06

Hi Agyerich,

Welcome to World Pulse! Thanks for sharing your interesting as well as informative first post. I'm looking forward to seeing more posts from you and finding out what you're passionate about.

Hope you have a good day!

agyerich
Jun 07
Jun 07

Great Jill, I am grateful!

Jill Langhus
Jun 07
Jun 07

You're welcome!

Hope you have a great Friday and weekend:-)

Lisbeth
Jun 06
Jun 06

This is pure economic talked. Thanks for sharing it with us and we welcome you to world pulse. On serious note I agreed with you on most of the issues you brought out.
I never like the consumption of foreign rice unless I run out of local rice. Being raise from the northern part of Ghana our local rice taste is still with me. I think its highly time the local rice market is given a helping hand to produce up to expectations.
Hope you have a good day.

agyerich
Jun 07
Jun 07

Thanks a lot! Much respect Lisbeth!!

Z.Elias
Jun 06
Jun 06

Hello dear,
Welcome to world pulse community.
Great to hear that you are passionate about economics the reason why you wrote this post don’t you ?!
Any way, so interesting topic.
Please keep posting.
Thank you.

agyerich
Jun 07
Jun 07

Welcome Z. Elisa much respect!!

Tamarack Verrall
Jun 06
Jun 06

Hi Agyerich,
You have dived into a subject we need to really pay attention to: global economics and how what we depend on each other economically has created the interrelationships we now have. While businesses are bargaining for economic power the system is failing too many people. Thanks for opening the subject for further study together.

agyerich
Jun 07
Jun 07

Great!! Thanks for wonderful contribution and attention.

Hi Agyerich,

Thank you for opening this subject on economics. I agree that nations should be self-sufficient. However, a country needs to have enough resources to sustain the demands of its people. That is true to our country, too. we import a lot of stuff that is not available here. Then we export a lot of our labor workers all over the globe. For jobs, we welcomed a lot of business processing offices here to employ our graduates. For the some other professionals, the opt for online jobs. We as a nation is still very dependent on other countries because the jobs available locally are not enough to sustain daily expenses. Self-suffiency for us will take a long time for now. But thank you for sharing!

Welcome to World Pulse!

agyerich
Jun 07
Jun 07

Very educative Karen thanks a lot!!

You're welcome, Agyerich. Please write more! Looking forward to it.

agyerich
Jun 07
Jun 07

I am grateful for your great contribution is wonderful and I really admire all contributions bless!!