Monday, August 15, 2005

Niger needs capitalism not charity

The Washington Post is clear where the blame lies for Niger's food crisis.
"vendor profiteering, a government policy shift toward a free market, and a decline in the traditional culture of generosity".

Niger's problem is in fact the exact opposite. It is virtually impossible to do business in this country. Some facts -

i) It costs nearly four years' income to pay the fees required to set up a limited liability company in Niger; entrepreneurs also have to deposit minimum capital of over seven years' income.
ii) Niger has the most rigid employment laws in the world.
iii) If you want to get a loan, it costs nine months' income to set up some kind of collateral.
iv) Coverage by credit registries is almost nonexistent.- Trying to collect an unpaid invoice by going through the courts will take nearly a year and cost over 40% of the invoice's value.