Wed, 31 Oct 2012 Feature Article

Examining 2012 Financial Development index rankings of African States by the World Economic Forum

31 Oct 2012

The Financial Development Report measures and examines the factors allowing the development of financial systems in a couple of economies around the world. It aims to furnish a comprehensive modus operandi for states to benchmark various aspects of their financial systems and put in place priorities for economic improvement. It is published annually so that states can benchmark themselves and track their progress over time. Since 2008, the year that the Financial Development Report was first launched, financial systems around the world have been hit with a couple of devastating crises. From crippling unemployment, serious housing bubbles, unsustainable debt levels and economic stagnation, few states have been spared. Even emerging economies, which showed relative strength during this period, have been unable to decouple successfully from Western markets.

The Report presents the rankings of the Financial Development Index, developed by the World Economic Forum in partnership with business leaders, public figures, the academic community, and multilateral organizations. It puts together an enormous amount of data to create an assessment of the various aspects of complex financial systems, including the business environment, the institutional environment, capital markets, financial stability, banks, and overall capital availability and access.

The Report appeals to a large audience such as policy-makers, business leaders, academics and different organizations of civil society. It aims to provide policy-makers with a balanced perspective on which aspects of their country's financial system are most important and with the ability to empirically calibrate this view relative to other countries.

In the 2012 Report, Hong Kong is ranked first, with the United States of America coming in second place. Concerning African states, South Africa is ranked 28th, as compared to being ranked 29th in 2011. The next African state on the list is Egypt, which is ranked 53rd, as compared to being ranked 49th in 2011. Egypt is followed by Kenya, ranked 54th, Ghana ranked 56th Tanzania ranked 60th and Nigeria 61st. It is rather unfortunate that central African states like Cameroon, the Democratic Republic of Congo, Equatorial Guinea, Gabon and Congo Brazzaville, do not feature in the top 62 of this ranking.

Judging from Africa's performance according to the rankings of the 2012 Report, it is obvious that there are still concerns with the business environment, the institutional environment, capital markets, financial stability, banks, and overall capital availability and access, in African states. This in effect means that African states need to address issues of corruption as well as poor financial management plaguing their economic and financial improvement. The key lies in the central governments of African states and most especially central African states to create a friendly business environment in their states, as well as an institutional environment, for capital markets to flourish.

This Author has published 11 articles on modernghana.com. More Chofor Che Christian-Aimé is a Cameroonian with over eight years of civil service experience. He attended secondary and high school education at Sacred Heart College, Mankon Bamenda, from 1989 to 1996. He holds an undergraduate degree in law (LLB), obtained in1999, from the University of Yaoundé II, Soa Cameroon. He also holds a professional diploma in public administration, obtained in 2002, from the National School of Administration and Magistracy (ENAM), Cameroon. In 2003, he obtained a Master of Laws (LLM) from the Centre for Human Rights, University of Pretoria, South Africa, thanks to a German Academic Exchange Service (DAAD) scholarship.

Still in August 2003, his thirst for free markets and economic liberty, soared, when he attended the Cato University in San Diego, California, USA.This summer university was hosted by the prestigious Washington D.C. based libertarian think tank, the Cato Institute. He was later on a research intern at this prestigious think tank in 2004.

Upon his return to civil service after studies in 2005, Chofor Che was appointed by Prime Ministerial decree as Second Assistant Senior Divisional Officer for Manyu Division, South West region, Cameroon, a position he held from 2006 to 2011. He is currently on study leave from government service and is a Ford Foundation Doctoral researcher with the Multi-level Government Initiative at the Community Law Centre, Faculty of Law, University of the Western Cape, South Africa.His research interests cut across international human rights, multi-level government, federalism and decentralisation.

Chofor Che is also an associate of Africanliberty.org, a collaboration between the Atlas Economic Research Foundation and Imani (Ghana), an African libertarian focused program. The vision at AfricanLiberty.org is to bring African voices for liberty to the wider world and work with African media to disseminate policy ideas for a new century of peace, freedom, and prosperity. AfricanLiberty.org also works with similar free market initiatives such as UnMondeLibre.org and OrdemLivre.org.

In July 2012, Chofor Che alongside prominent libertarian writers like Professor George Ayittey, Franklin Cudjoe, Alex Ndungu, Rejoice Ngwenya, Bright Simons, Kofi Bentil published a book entitled VOICES FROM AFRICA. Africa is still not completely where it ought to be politically and economically. This project sponsored by Atlas Economic Research Foundation and published by AfricanLiberty.org, focuses on freedom especially against the background of Africa’s quest to free itself completely from never-do-well protectionist economies, the remnants of old military eras of leadership and the remains of sit-tight rulers across the continent.

As a researcher and consultant, Chofor Che also consults on a pro bono basis, for Frank’s International, Douala,Cameroon (an oil drilling subsidiary of Frank’s International). He is also a pro bono human/civil rights consultant at Atanga Law Office, a prominent law firm based in Douala, Cameroon.

Chofor Che loves traveling and is happily married to Delphine Mankah Angwafor. They are blessed with a young handsome boy, Chofor Che Chi Ervin.Column: Christian-Aime Chofor Che

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