Should Africa Rely On Automation To Leapfrog Cheap Labor Phase?

Africa got 1 billion plus people and yet the whole continent’s economy is only about the size of South Korea. This means the whole African continent is still very poor and needs to be developed a lot so the Africans can have some hope for a better future. Unfortunately, as cheap labor is moving out of China to China’s neighbors such as Vietnam, the whole world is now all the rage on how to rely on the automation of machines so even cheap labor cannot compete. If this is the case, I don’t think the Africans will have a chance of mobilizing their 1 billion plus people to industrialize the African continent.

So, the question is if Africans cannot rely on cheap labor to develop and industrialize the African continent, then what else could the Africans rely on to develop Africa? If Africans tries to rely on the aids of the Western countries, then Africans will never be able to develop their own industries that are necessary to pull the African continent out of poverty for good. Although the Chinese are building the infrastructures inside Africa to better the livelihood of the Africans, without a staple of strong industries the Africans will still face the problem of not being able to industrialize the African continent.

Although I don’t know much about Africa, in my humble opinion, Africans should try to go for automation themselves to leapfrog the cheap labor phase. This means Africans have to develop a very entrepreneurship mentality so they can come up with business models that need automation as a necessary ingredient for their business. Furthermore, instead of only relying on aids from the West and the infrastructures from China, Africans should demand the Chinese to teach them how to develop and incorporate Artificial Intelligence in their businesses. I think the machine learning and higher AI will definitely be able to help the Africans to automate the needs in their entrepreneurship businesses and leapfrog the cheap labor phase.


How To Fix A Corrupt Country?

I stumbled on a Quora’s question “How do you fix a corrupt country?” and so I decided to give my two cents on Quora in regards to how I think such a country could fix its problems.  Well, I will quote myself fully right after the break.  Nonetheless, you can also visit Quora for this specific answer too, but you may have to go through countless other answers that were given to this same question.

Here I quote myself:

When a country is being weakened by a weak leadership or a weak governance structure — having both would be a disaster — such a country needs to find a way to exert law and order so everyone in the country could recognize a corruptive behavior isn’t acceptable. When people are actually supportive of a measure against such corruptive behavior, the government could slowly gather strength through the recruitment of a strong leadership to carry out the enforcement of rules and regulations to curb the corruptions.

I think many forms of corruption could be very subtle too, and so corruptive agents could actually thrive in almost all governments — doesn’t matter what form a regime is actually practicing. For example, a democratic country is relatively poor, and so such a country will not be able to have strong leadership even though it got a democracy. Without a strong leadership, things tend to slip in and out between cracks, and so the corruptive agents could easily use such opportunity to do corruptive things out in the open.

In a dictatorship regime, corruptive agents in the position of power would be unchallenged since there won’t be enough checks and balances to curb such power. If a dictatorship regime got a weak leadership, the country could experience widespread corruptions that go unchecked. A good thing about the dictatorship regime is that if a country got a strong leader who actually cares for the people, such a leader could use the absolute power to weed out the corruptions really fast and effective. Basically, there are pros and cons to a different form of governance and style of a particular government.

I think to fix a corruptive country, the most important things are to find the right leadership and enhance or rebuild a governance structure so the country could thrive on rules and order. As long the rules and order are making sense and the people could feel safe, then other good things may come eventually. For example, a strong economy is a must for a leader to keep the people happy and healthy. When people are happy and healthy, they tend to do the right things and be supportive of the government. With strong support from the people, the government could exert enforcement to weed out corruptions without much of any opposition. Heck, when a government is being loved by the people, the government could take a lot more risks to achieve its aspirations.

I’m curious anyone else thinks this is the right approach to fixing a corrupt country?  Please leave a comment or two in the comment section if you agree or disagree with my suggestion.  Thanks.

Will China Force The World To Trade In Yuan?

Dr. Mahathir Mohamad thinks that the richer the Chinese get, they will not accept the domination of the Dollar.  He thinks that China may force the world to trade in Yuan.  This is certainly a scary thing for the United States!

If China could force the world to trade in Yuan, people like me who are living in the United States would have to face many scary outcomes of a much weaker Dollar.  Just imagine if the world decides to drop the U.S. Dollar as the reserve currency, the United States then has to worry about the balance of trade even more than ever before.

A country in some ways is not that different than a normal household.  Besides getting loans, what you make is what you have got to spend.  Nonetheless, a normal household got bills to pay, and so what you make is what you have got to save somehow.  Without enough saving, you don’t have enough money to spend.  Living beyond one’s means will get one into huge debts.

Dr. Mahathir Mohamad hints that if China forces the world to abandon Dollar for Yuan, the United States won’t have enough gold and whatever to pay back debts and could declare bankruptcy overnight.  I’m an American and so I don’t want to see something like this to occur, but we’re not Chinese and so we can’t really know what the Chinese would do when they get even richer.

Check out the video right after the break to see Dr. Mahathir Mohamad — current Malaysia’s prime minister — speaks on how the Chinese may drop the Dollar in the near future and force the world to trade in Yuan.

Could The Yuan’s Sliding Allow China To Unload Treasury Bonds?

I’m just wondering!  Lately, the headlines are screaming that China is devaluing the Yuan to help cushion the blow of Trump’s tariff on China’s exports to the United States.  Although this is a legitimate concern that the headlines raise, I’m wondering if there is another hidden motive for the Yuan to slide.

Could it be that the Chinese government is letting the Yuan slides so the treasury bonds that the Chinese own which Americans are in debt to China could stay valuable?  This way China can begin to sell the treasury bonds while the treasury bonds are still valuable.  Once China unloads enough of the treasury bonds onto the market, whatever value China receives from such transaction could then be converted to other favorable assets, investments, and currencies.

Of course, China could always convert the selling of treasury bonds into Yuan and then raise the Yuan’s buying power back up to stave inflation — but then it could begin a deflation.  How?  Well, if too many Yuans that are chasing the same thing could raise the price of whatever, but when the buying power of Yuans get push up the Chinese government then could lend out these Yuans to other countries and International projects such as Belt and Road Initiative projects to stave inflation.  A more powerful Yuan could also allow the Chinese to get more bang for the buck whenever they use the Yuans to acquire whatever.  Thus they also have to be careful about the deflation.

I’m no economist and so I could be wrong on what I’m suggesting.  Nonetheless, I would love to hear other people’s opinions on the suggestion that I’m suggesting.  Am I wrong?  Am I even close?

Why China Doesn’t Care About Bad Economy Leads To Color Revolution!

Some China watchers suggest that when China’s economy is going south to the sour, Chinese government would flame the nationalism to shift the blame outward.  Personally, I think it’s wrong to think like that!  I think China is a one-party system government with a lot of policies that are in place to prevent color revolution or any sort of revolution from happening, and so China doesn’t need to point outward to shift the blame of bad economy at home.

Furthermore, China had been there when the former revolutionary leader Mao Zedong, founder of today’s China and the Chinese Communist Party, prescribed the wrong policy “Great Leap Forward” in which famine raped the country to the point of almost no return.  Yet Chinese didn’t demand the Communist party to step down.  Of course, there was the Tiananmen Square revolution, but that didn’t really destroy the Communist Party even though at the time China was still super poor.

Today, China is prosperous and strong, and so I doubt there would be a revolution even if the Chinese economy takes a huge hit to the chin.  I think the Chinese government knows this, and so they probably would not take any action to flame the nationalism unnecessarily as such a flame would be easy to stoke but very hard to put down.

Nonetheless, I think the Chinese government may want to economically restrain potential rivals and enemies from conducting businesses inside China, thus the bad foreigner’s case could come up from time to time to create difficulties for the non-Chinese companies.  I think that is as much as the Chinese government may want to stoke the flame of nationalism.

So, when the outsiders think of utilizing strategies that depend on the outlook of how China would behave nationalistic when the economy goes south could produce little to no effect.  Perhaps, this may irritate the Chinese government enough in which the Chinese government may put up countermeasures that may have undesirable effects in diplomatic and economic relations.  For an example, China may want to make it a lot harder for non-governmental organizations that support or belong to a foreign entity from operating within China.

Inescapable World – Ticking Time Bomb Of Uncertanties

In chess, there are circumstances that you could force your enemy into a position of no escape, and of course, if the enemy seizes the opportunity first then you would be the one who could not escape the trap.  It could be your king which is the most important piece on the board to be forced into a position of retreating into a trap and cannot escape.  I think it’s the same for bigger picture as in a national circumstance.

When a country got too many friends to please, too many problems to be solved, too many places to keep the peace, then it’s a lot harder for such a country to be able to be nimble and flexible.  Without nimbleness and flexibility, stiffness could creep in and force a country into many weird positions that are unfavorable.  Too many unfavorable positions could push such a country into a subtle death trap which eventually envelopes into the inescapable trap!

Then again we could also argue that when a nation is a hermit, it’s easier for others to gang up on such a nation.  In today world, when there are so many powers that aspire to be more than what they’re yesterday, I think it’s a ticking timebomb of uncertainties.  Like if you do you’re damned and if you don’t you’re damned still.

For an example, let’s say a fictitious country named Carol is making a lot of friends, and she knows that she hates Bob, the hermit, a lot.  Bob though, he would love to inflict real damage on Carol, but he doesn’t have any friend to help him out in doing such a thing against Carol.  Friends of Carol got a friend who is the only reluctant, casual friend of Bob, and they know this friend, for some strange reasons, doesn’t want Carol and Bob to have any confrontation.  Let’s say Bob tried to tickle Carol in the most grotesque way, and Carol went on a rampage against Bob.  Friends of Carol suddenly didn’t want to have anything to do with the whole madness, because Bob got a friend that prevented others from involving with Carol and Bob.  But then this Bob’s mysterious friend suddenly teamed up with Bob to take Carol down.  Now, Carol’s friends got a problem, because they don’t know if they should side with Carol or Bob’s mysterious friend!

Let’s say Carol and Bob both thought that they would be able to outsmart the other, but perhaps one of them didn’t know that a string of scenarios that came before and after their ugly feud could turn one of them into a mouse that got trapped in a rat trap.  The inescapable trap is definitely easier to imagine for today’s geopolitical matter I think!  Why?  Too many countries got their own ambitions to worry about, and so they are making friends and enemies left and right all the time.  Just take a look at Syria and various parts of the Middle East and we could see that sometimes we couldn’t know who is a friend and who is an enemy anymore — of course, it’s also depending on which side you’re on too!

Sometimes though, I think sitting pretty and only making move when it’s prudent and safe would keep a nation safe for a long time to come in a world like ours today!  Why?  The one who sits out the longest would be the victorious one in the end!  I think it’s smart to save up energy and resources — while making gains in both energy and resources when you’re in a favorable position — for the right time!  Of course, if you’re being forced into an unfavorable position, then sitting out may not be possible in the end.  That would be unfortunate for sure.