How do national governments contribute to the problems faced by developing economies? Provide examples from Africa, and explain measures taken by governments to improve conditions

What will be an ideal response?

Governments in developing economies are often severely indebted. Some countries in Africa, Latin America, and South Asia have debt levels that approach or exceed their annual gross domestic product. This means it would cost a year's worth of national productive output just to pay off the national debt. Much of Africa's poverty is the result of government policies that discourage entrepreneurship, trade, and investment. Bureaucracy and red tape in developing economies deter firms from these countries from participating in the global economy.
However, several African countries are experiencing economic success, with annual GDP growth now approaching 5 percent per year. Ghana is becoming a regional hub for financial and technological services. Nigeria is enjoying a boom in oil and banking. Zambia is developing strengths in mining and agriculture. Tanzania is investing in major power generation projects. Stock markets in Botswana, Nigeria, and Zambia are enjoying record investment. Botswana's diamond trade is booming, thanks to investments from South Africa's De Beers. De Beers is a mining company that is investing some of its profits in Botswana to build roads and schools, and treat people with HIV/AIDS.
Africa looks increasingly attractive. Coca-Cola sells over 100 brands and has more than 160 bottling and canning plants there. China's telecommunications giant Huawei has established production and sales operations throughout Africa, selling its mobile phones and network solutions. Huawei provides thousands of jobs for Africans. Chinese firms are also making huge investments in Africa installing green energy systems such as solar power.