Essay about Effects Of Colonialism On The South African Economy
From personal exchange to impersonal exchange
Africa has long lagged behind Western civilization when it comes to property rights and impersonal exchange. While the West progressed to impersonal exchange thanks to the introduction of economic institutions, Africa still conducted only personal exchange with no property rights. Property rights are vital to development and the only way to advance to impersonal exchange. African is the most resource rich continent in the world but has often struggled with how to take advantage of those resources. Before the arrival of Europeans, Africa had a pastoral economy. The continent never reached the size of population that the land mass could actually support due to lack of efficient food-production (caused by poor agricultural development). Africa is a continent with diverse climates and conditions thus there isn’t a one size fits all method for farming. Diversification is needed to cultivate crops in different climates and conditions. Even today Africa is plagued with a lack of food and it is holding back the continents potential advancement.
In the 15th century, most countries in Africa measured your wealth by how many cattle you had. Some ethic groups in Africa like the Bushmen lived a nomadic lifestyle and lived as hunter gathers. In the 1400’s the economy in South Africa consisted of subsistence agriculture and hunting until Europeans settled in the region. Subsistence…