CIBER Focus: "Dynamic Markets in Africa" with Lyal White
From Group Institute for Intl Business on February 8th, 2016
Dr. Lyal White joins Kelley MBA student Nick Sterne to discuss the dynamic markets of the African continents. Dr. White, Director at the Centre for Dynamic Markets, explains that dynamic markets are driven by the economic potential of a country. These markets are dynamic because of their ability to create an enabling environment for business to operate. He explains that dynamic markets classification differs from emerging markets classification because of its consideration not just of a country's economic trajectory, but also its geopolitics, international relations, demographic energy, and influence in the world. He gives the examples of Mozambique, Myanmar, and Turkey to illustrate what a dynamic market looks like. "Demographic energy" is a key driver of dynamic markets as it determines future consumer markets and labor force. Africa's predominantly young population gives it the potential to have one of the greatest labor markets in the future. Dr. White predicts that Africa will have the largest labor force in the world in 2035. In the face of the recent worldwide economic crisis, Africa stayed mostly unaffected partly by chance but also because of how much more disconnected it is from the rest of the world than previously thought. African economic policies have also become a lot more rigid in order to withstand the turmoil in the world economy. Dr. White explains that politics, social instability, and ongoing conflict are preventing certain African markets that have the potential to become dynamic markets from succeeding. The "resource curse" is another factor that must be managed properly in order to allow African nations to thrive. He gives the example of the Democratic Republic of Congo, a country with plentiful resources and a young population but whose political turmoil and poor infrastructure prevent it from being a true dynamic market. White finishes up the discussion by explaining the changes that need to keep occurring in order to maintain the positive growth Africa has seen in recent history; Africa needs to become more democratic, more connected, and better managed. *This video was recorded as a part of the Indiana University CIBER Focus Vodcast Series.