Building a Hong Kong in Africa?

He's one of the fathers of the new economic growth theory, and he's been on the short list for a Nobel price in economics. He's founded companies, including online teaching firm Aplia.

Now, Professor Paul Romer of Stanford University's Graduate School of Business is leaving the campus to pursue a new, somewhat startling private endeavor. Using Western know-how and bureaucracies, he wants to build modern metropolises in one of the most challenging areas of the world: Africa.

"I am embarking on a whole new direction in my career," Romer said during a recent meeting in Menlo Park, Calif., with Swedish, Finnish, and Pakistani journalists. "I am going to put my whole career on the line with this new idea."

Paul Romer

(Credit: Stanford University)

The idea is to create city-states along the coast of Africa that can become economic hubs for the region and at the same time be insulated from the continent's notorious corruption and political chaos. In a sense, it's what the British did with Hong Kong in the 19th century when China was relatively unstable.

Romer envisions a Nordic country, perhaps, emerging as a champion for his concept. The European host could accelerate economic growth by taking charge of police forces, jails, and courts. Local government would take care of the rest.

A modern form of colonialism? To many, it might seem like it, but the colonizer would be a "disinterested trustee government" that would preside over a form of what Romer calls "delegated democracy."

"The British raised tens of millions of people out of poverty" in the colonial era, Romer said. "Hong Kong is the most successful development program in economic history."

Romer said he would not trust the United States to serve as a steward in Africa, and he even doesn't think even the European Union is up for the task.

A cynic, however, could also point out that Nordic countries have been, historically, relatively homogeneous and isolated and have not had to deal with conflicting ethnic and religious interests like Britain, the U.S., and several African nations. Thus, what makes Scandinavia successful makes it unsuited for an African voyage, he asserts. But Romer prefers to focus on the Nordic countries and their history of conflict mediation and peacekeeping operations, working closely with the U.N.

He has discussed his idea, which might strike some as radical, in small circles for some time, and now he'd like to influence the wider debate on development issues, such as the effectiveness of development aid.

He does not believe in the philosophy of many non-governmental organizations (NGOs) that national governments are best avoided altogether in favor of directly reaching needy Africans. Good governance requires more discipline and a guarantee that the party in power does not abuse its power.

[samar56]

Noble Prize dreams are clouding his mind

I'm from the 'developing' world and smile whenever I read about some do-gooder's attempts to improve this or solve that. Especially someone coming from a cushy life who thinks if it works there, it must work elsewhere.

People wake up. Hong Kong worked because GB was willing to use its impressive force to cajol. I don't see how someone who's strength lies only in words without deeds to back them up can expect the same result. Besides, Africa is much less homogenous than Hong Kong was.

[ctfoley]

just talk

he's not going to do anything for africa, and neither is anybody else in the immediate future. we just have no reason to.

[kschroedermwi]

One comment...

... private property rights. Yes, it's more complicated than that but in a system where people can buy and sell property and ownership is protected, you have a solid foundation on which to build a thriving economy.

[thku4grace]

Africa can't be saved by others or itself

I have to agree that this guy is more than a little naive about the culture, politics, and deeply-ingrained hatred for colonizers. This continent has a long history of Europeans coming to colonialize the various nations. The trouble that ensued was the same ignorance of the culture. While the early colonizers had power due to more advanced weaponry, this difference is insignificant now and the continent has returned to its roots of tribal laws & warfare, rampant government corruption, massive civil right abuses, the uneducated masses, extreme poverty, islamic fascism......etc. No country will allow outsiders to seed a city-state within the confines of their nation without a large financial payday for the leadership. Corruption is a way of life. People don't get involved in political leadership to help others in Africa. Its only to position themselves as high as possible to become the receiver of the most graft as possible. In their eyes, there is no other reason. Its the primary reason that no charitable group nor government in their right mind will give money directly to either government agencies or private African help agencies rather they set up their own help groups and/or provide direct assistance of things such as food, medicine, etc... Even food is sometimes hijacked and later sold back to charitable groups on the ground. There is no moral compass here.