An ethnic group, mostly found in the Opuwo area of the Kunene Region in Namibia is known for its vast pastoral culture, it raises livestock; traditionally, that is all what is known for, raising cattle, goats and sheep.
This group makes a good living by selling its livestock to other groups in Namibia.
In turn, the other groups slaughter the livestock and cook the meat, which then sell the cooked meat back to the ethnic group which raises the livestock for a living.
This is the economic tradeoff between these two economic powers. And there is a lot of cash, millions of dollars each year, exchanged between these two economies.
Each economy must supply the other economy with adequate supply in order to meet each other’s demands. One group supplies the livestock to the other group in the exchange of cash, and then the other group supplies the cooked meat to the other group in exchange of the same cash that was received in exchange of the livestock.
The two economies thrive.
A good live example is the economy of Canada and the USA. These two economies have got large tradeoffs among each other.
What if the group which raises the livestock would also slaughter its own livestock and sells its own cooked meat to the other group which normally buys the other group’s livestock? What would happen to the two economies?
This is the concept of raw materials and manufactured goods.
Africa has got plenty of raw materials for nearly all the demanded manufactured goods in the world. But Africa also has got a huge appetite for fine manufactured goods.
Africa’s population is now over a billion, with an average per capita GDP of about US$25,000 and a buying power of over US$2 trillion.
As in the economies of the two ethnic groups, trading livestock and cooked meat to each other and they live happily in harmony. Can African countries and their massive raw materials survive without tradeoffs with other countries in the world?
What are the current economic tradeoffs between African economies and other economies in the world?
No man is an island.