Rising Inflation and Africa

With the world facing rising inflation and thus decreasing real income, how will this stabilise?

What if the world population rises more than the food supply? It is sure to cause increasing inflation. It will mainly affect the middle and lower income. In this capitalist world economy, where countries are increasing relying on domestic consumption to sustain themselves in times of economic uncertainty, such as India, capitalist main target is the middle income group because of their mass population.

But this rising inflation will not hit them in a direct way. People will still spend because of the instilled culture-ideology of consumerism through mass media (TV, paper media, internet, advertisements).

People who still live with their parents will rely them for food and lodging, thus a "subsidy" for this rising inflation. Those that cannot stop spending always have alternatives such as using the lovely plastic cards or borrow from their generous friends.

Tackling Food Inflation

Although the world cannot do much to the energy inflation because of the OPEC, we can do something to food inflation. This problem has to be tackled globally in order to achieve stability in every country.

If not for the goal for profit and growth of capitalistic companies, major excess food supply can be channelled to poor countries such as Africa. For a start, those people need at least carbohydrates to sustain themselves. Only when they have the energy to work, they channel their time to start at the basics at every civilisation. They have to start by agriculture or by farming. But the problem is that these people are used to grow all these food for export purposes.

If only the food problem is solved in these poor places will they break their poverty cycle. It is the first step so that everyone can concentrate to build a civilisation. These countries need some hero like Gandhi to make a spark for them to get out of their situation. Perhaps benevolence like Gandhi and leadership like Hitler(excluding his atrocities).

This means that the country needs high bureacracy at the start - central planning. The government can then progress to democracy slowly. Only then can they build infrastructure for growth - Industrialisation. They could perhaps be the next place for cheap labour and for FDI to flow in. Although this is exploiting, the people will still benefit until a growing middle class emerge.

However, this may not be the case. It's because everyone is thinking for the short term in this fast paced world. People wants to make profit in the short term. Bureacrats knows that they cannot be in their position for long so they need to increase their wealth by corruption. The cycle continues. The irrationalities of rationality indeed.