An IEA study* edited by leading economist Professor Peter J. Boettke** shows how entrepreneurship is the key to economic growth in Africa. Small scale trading by indigenous traders provides the foundation of development rather than aid from rich nations. Boettke points out that billions of dollars have been already spent on Africa, yet such aid funds have not led to development. Instead, the focus needs to be on the adoption of sound political and legal institutions. In particular, secure private property rights are needed to encourage local entrepreneurs to make long-term investments.
The study is partly based on the empirical findings of the Ente