Social Instability, Immigration, and Business Climate in Africa.
Hello Africa,
In the last century, social and economic upheavals have always stalled progress, economic growth and development in most African countries. Social changes in these countries have often resulted in conflicts, fear, crisis, strikes, and breakdown of law and order.
Social changes in most advanced countries have brought about strong and stable institutions, socio-political, and economic progress. Europe is known for her numerous social and economic changes. The Great Renaissance, Protestant Reformation, and the Industrial Revolutions were major changes that have impacted the lives of Europeans and these changes can still be felt till this day. The first and second industrial revolutions led to massive urban growth, increased productivity, and progress. The overall impact of these social changes were Imperialism and global dominance
The impact of political instability, social and civil unrest, strikes, terrorism and religious extremism on immigration cannot be overemphasized. World Economic Forum Global Risks (2015) cited social instability, poverty, income inequality, and growing contrasting societal groups, as major indicators for global business assessment. Other indicators include rising unemployment, lack of good governance, and fiscal crises.
There is a positive correlation between political stability and economic growth. Many sub-Saharan countries of Africa have experienced one form of social and political instability or the other. Pew Research Center Report (2018) observed that at least one million sub-Saharan Africans have migrated to Europe and America since 2010. These continents have witnessed a dramatic rise in international migration, and asylum seekers, and the major factors pushing people to leave include conflicts, unending wars, and religious persecution.
International migrant population has been increasing dramatically in the last ten years. India remains the country with the highest number of main origins of international migrants, with about 17.5 million Indian-born living abroad. According to UNFPA (2019), more than 40 percent of the total number of international migrants, worldwide, were born in Asia. In 2019, the number of international migrant population has supposed 270 million people, and this represent over 20 percent pre-2010 figure. According to the United Nations (2019), the global migrants growth rate has grown faster than the world’s population growth, and the United States of America remained the largest country of destination, with over 50 million migrants in 2019, and this constitutes about 18 percent of the world’s total.
The figure above represent migration flows since 1500. It is reported that people have been forced from their homes, and displaced. International migration from Sub-Saharan Africa has grown dramatically in the last 10 years, between 2010 and 2019. Sub-Sahara Africa account for 8 out of the 10 fastest growing global migrant population. It is estimated that this number grew by as much as 50 percent since 2010. The factors responsible for this increase have been due to the population increase, the quest for economic opportunities, education and better life, civil strife, conflicts, natural disasters, and political instability. Socio-political and economic conditions play a major role as some of the reasons people from sub-Sahara Africa migrate.
Migration from sub-Sahara has grown in the last ten years, and the major destinations include the United States of America, Europe, South Asia, North Africa, and Middle East. Conflicts, and other forms of social-political factors make up a larger percentage of the reasons why people move.
Research has shown that the economies of countries with relative peace tends to thrive more than those with incessant socio-political conflicts. A peaceful environment attracts investments by way of the accumulation of physical and human capital. The Sustainable Development Goal 16 identifies the need for promoting peace and inclusive societies for sustainable development. The European Union Knowledge for Policy Platform (2020) identified eight pillars of peace that should be addressed simultaneously, and these include: a well functioning government; a sound business environment; an equal distribution of the state’s resources; a high level of human capital; and low levels of corruption. These pillars are not dependent on one another, and are jointly supporting, such that the individual strength has the capability to influence global peace positively or negatively.
Democracy and social inclusion breeds stability. Violence, conflicts, and unrests have adverse consequences on the short and long term Africa's social and economic activities. The absence of peace hinders productivity and economic output, reduces investment and business confidence. The overall implication is a high level of unemployment, low levels of growth in GDP, and ultimately low levels of foreign direct investments.
Africa's potentials remains largely untapped, and it is gradually making an impressive progress toward social stability, peace, and democratization. A stable polity attracts and retain its people, and foreign direct investment in the long run. There is no nation that can develop without peace. Peace creates the necessary environment for economic growth and development, and leaders of Africa must do more to promote peace, and strengthen its democratic institutions. Social and political instability often results in migration, low foreign direct investments, and the overall impact on the welfare of the people cannot be overemphasized.
Africa Arise!!
Enoma Ojo (2022)
enomaojo.blogspot.com
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