Question

MACROECONOMICS

(a) Write an essay in which you analyse five common features of the various types of socialism. [15]

(b) Write an essay in which you explain the nature and consequences of the 4th Industrial Revolution in relation to economic development in sub-Saharan Africa. [15]

Answer 1

Part (A)

Socialists have deployed ideals and principles of equality, democracy, individual freedom, self-realization, and community or solidarity. Regarding equality, they have proposed strong versions of the principle of equality of opportunity according to which everyone should have “broadly equal access to the necessary material and social means to live flourishing lives”. Many socialists say that democratic participation should be available not only at the level of governmental institutions, but also in various economic arenas. Socialists often affirm an idea of community or solidarity, according to which people should organize their economic life so that they treat the freedom and well-being of others as intrinsically significant.

core ideas of socialism

• Collectivism-Human society will be strongest when there is collective action by all humanity towards a greater good. Politics, economics and social reform should benefit society, not individuals. There should be wealth redistribution to equalise society
• Humanity-Humans are naturally social. Individuals are shaped by society and capitalism has corrupted natural social tendencies.
• Class consciousness-Society is divided into classes based on how money is earned and professions with higher classes benefiting at the expense of the lower
• workers control-Those who produce should control the means of production. A strong state is necessary to achieve a socialist state, but that state should be governed by the workers
• Equality-Aiding disadvantaged groups to achieve the same outcomes as other groups.

Part (B)

The Fourth Industrial Revolution (4IR)—characterized by the fusion of the digital, biological, and physical worlds, as well as the growing utilization of new technologies such as artificial intelligence, cloud computing, robotics, 3D printing, the Internet of Things, and advanced wireless technologies, among others—has ushered in a new era of economic disruption with uncertain socio-economic consequences for Africa

The agricultural sector is still the primary employment sector in the continent, employing 54% of the total working population. In this respect, there is a fear that the advent of the 4IR in driving agricultural mechanization through the use of automation and robots could lead to a significant decline in employment, forcing many to move to cities in lieu of better opportunities.

True mechanization in the agricultural sector has not been possible due to an inefficient commodity supply chain which creates a reluctance to adopt new technologies. This fear of a loss of income can be mitigated through the use of technology which records the sale and distribution of products, and tackles the mistrust of farmers through more rigorous bookkeeping. Once this is achieved, the mechanization of the sector can occur in a more sustained and profitable manner and enable farmers to more efficiently sell their produce in local and international markets.

Unemployment challenges are compounded by Africa’s education system that is not living up to expectation. While on the one hand enrolment figures have improved, learning outcomes remain rather poor , with recent evidence pointing to deterioration in quality. High enrolment rates, coupled with inadequate funding, have resulted in an education system that is over-stretched and failing to cope with the demands and expectations. This doesn’t bode well for Africa’s structural transformation, particularly in the era of the knowledge centred, 4th industrial revolution. Africa’s education systems do not prepare students for adapting to the nature of 21st century work. Hence, they need to transform in order to address the existing skills mismatch and the changing economic structure resulting from disruptive digital technologies.

Harnessing the demographic dividend requires both supply side (skills enhancement) and demand side (job creation) interventions to ensure that the youth and women are engaged in productive economic activities. As the global transformation of work is unfolding, so should Africa’s education and knowledge institutions as they need to keep up with (if not lead) the transformations. The 4th Industrial Revolution will result in “major disruptions to labour markets in terms of the growth in wholly new occupations, new ways of organizing and coordinating work, new skills requirements in all jobs and new tools to augment workers’ capabilities”

Currently, economies across Sub-Saharan Africa have not fully leveraged the opportunities offered by TVET (technical and vocational education and training) , with formal enrolment standing at only 6% of total secondary and post-secondary enrolment across the region. In parallel to improving the job-relevance of formal TVET instruction, support should also be given to upgrading Africa’s more widespread practice of offering informal apprenticeships.