What role does the Western businessman play in this process? Rado explains that "Although most African countries are predominantly agricultural, the majority of paid employment is provided by the urban economy: industry, commerce, mining, transport and the public services. In most African countries the majority of these jobs is provided by private foreign (i.e. Western) capital. Furthermore, there can be little doubt that it is these 'urban' activities which will provide a large part of whatever economic growth Africa is going to see over the next generation." Redo does not see a 'back to the land! move as the answer because: "..judging by the experience of the recent past, it takes a 4% -annual rise in the national income of the advanced countries simply to maint-in their present level of demand for tropical foodstuffs end raw matcrials,"
Rado works out what would be required to maintain the present level of employments "Given an averaze income per head in the region of £33 per annum and £1,000 as the average capital requirement per urban job..this means that 30 men's annual production creates one new job, If we combine this vith the need to find jobs for the 24% annual increase in working population..the resulting net investment requirement is 30% of the national income" and a further 7% hes to be added ¢ to wipe out dedts, Part of this staggering figure of 37% will have to be foreign = investment, says Rado. But because "Production methods of an increasingly capital using and labour-saving nature are being introduced everywhere.." the position is being made worse. For example, "In Uganda..a 3% annual growth of real national product has accompanied by an overall fall of 3% in employment.." and "A large part of it must have been due...eto modernisation programmes..." Rado says the businessmen pursue their policy because of "taxation laws", "pressure of trade unions for higher wages", and "minimum wage laws.",. He argues that trade unions will have to show “unprecendented restraint" to meet this situation! Does Rado really expect businessmen to invest to make jobs instead of profit? The flaw in his argument is that he forgets the loss of capital through profits going abroad, the squandering cf resources to ‘police! foreign investment, etc,
from an economics corresnondent