Due to the recognition of possible exploitation of the Sub-Saharan African (SSA) region, there have been measures put in place to protect the economies and workers within the region. The goal of the 1977 Foreign Corrupt Practices Act (FCPA) is to lower the chance of bribery and corruption in Africa. However, officials in Africa are still being bribed by foreign investors after millions of dollars are being spent to uphold the policies of FCPA. According to a 2002 study, Africa loses approximately $150 billion per year due to corruption. Foreign aid in the region helps makes up for the loss, but this further complicates the relationships between more developed countries and the SSA region. Local alternatives should be considered when searching for a more sustainable solution to economic growth.
With the increase of international trade and investment, it has become more difficult for SSA to manage its economies. However, Local Economic Development (LED) has the potential to bring vital decision-making back to the SSA region. LED strategies include more participation from local stakeholders, more sustainable development practices, combination of economic and social goals, and more. Since the SSA region is not wealthy, LED strategies can be used in addition to regulated foreign aid that enters SSA. Ultimately, the region should be protected from corruption and other forms of manipulation by wealthier countries. With LED, the community and local stakeholders will have more of a role determining best practices for their region.
Demas, R. R. (2011). Moment of truth: Development in Sub-Saharan Africa and critical alterations needed in application of the foreign corrupt practices act and other anti-corruption initiatives. American University International Law Review, 26(2), 315-370.
Rodríguez-Pose, A., & Tijmstra, S. (2005). Local Economic Development as an alternative approach to economic development in Sub-Saharan Africa. A report for the World Bank, World Bank.