The political economy of African countries has long been shaped by an activist paradigmJacob MahlanguPhD: Political SciencesUniversity of Pretoria2025Ever since the 1960s an activist paradigm has plagued the political economy of African countries, it has centred on anti-colonial resistance, redistributive justice, and state intervention. This means that most African countries have been welfare states who are paternalistic and aim for economic reconstruction, path-dependence and development. They depend on financial aid, socialistic models of economic systems and policies, freedom and emancipation. It is rooted in valid struggles against inequality, and the continent being intentionally placed at the bottom of the pyramid in the hierarchy of the world by powerful states resulting in unfair global structural imbalances. This article argues that such a paradigm prevents the continent from advancing in economic growth through innovation, makes them remain dependent, and ignores democratic processes of checks and balances that make for good governance further leading these countries to underdevelopment, poverty and corruption. There is an increasing need for a transition from an activist model towards a more economically competitive pragmatic model which advances the African continent through meritocracy, technocracy, entrepreneurship, labour-intensive, administrative and managerial functionality and industriousness based on the continent’s resourcefulness. There are limitations in the African approach that is activist-centric- consisting of moralistic policymaking, populist rhetoric, and its obsession with external blame. The article uses the dependency theory as a theoretical framework, which is the perspective often used by African countries to justify their activism. Using a comparative analysis this article compares the economies of developed countries with those of the African continent and makes recommendations to African countries in areas of improvement. This is a qualitative desk-top study, making use of secondary sources such as online websites, journal articles, and etc.IntroductionThe 1960s in the African continent has been shaped by the wave of independence. An activist paradigm has been used by African states in their political economy. The features of this paradigm include a devotion to redistributive justice, anti-colonial resistance and the intervention of the state in the economy. Inspired by historical injustice and motivated by emancipation most governments in Africa adopted a welfare-oriented and paternalistic model of governance operating for the purposes of attaining economic development and reconstruction. These models resembled a path-dependent route premised on socialist ideologies, dependence on foreign aid, and a stubborn classification of Africa’s global position as below the hierarchy, being that of systemic marginalization in an international order that is unequal.While the activist paradigm may be valid based on history- emanating from exploitative colonial legacies and actual global structural imbalances- critical limitations have been revealed by it in the recent decades. This article makes an argument that a persistent usage of activist-centric political economic paradigms has prevented economic growth, perpetuated continued dependency and blocked innovation. Through moralistic policymaking, making use of external blame narratives and populist rhetoric, many governments neglect domestic mechanisms of accountability, technocracy, and meritocratic governance which are important for sustainable development, remaining globally competitive, and democratic consolidation. The negative outcomes produced by this include corruption, administrative inefficiencies, widespread poverty, and underdevelopment. There is a pressing need to remodel the activist paradigm and transition toward a more competitive, pragmatic and an economic model that is future-focused. Such a model would make use of Africa’s resourcefulness through labour-intensive industrialisation, effective public administration, entrepreneurship, and a technocratic merit system with the capability of creating inclusive growth and good governance. This article makes use of the dependency theory, which is a theoretical lens used predominantly by African states to rationalize activist economic approaches. Through a comparative analysis of African and developed countries’ economies, the study examines opposite outcomes in economic policy, institutional performance and governance. This qualitative desktop study utilises secondary sources such as policy papers, journal articles, and credible online platforms, with the intention to provide constructive recommendations for recalibrating Africa’s political economy for the 21st century.Theoretical frameworkFrank (1966) argues that internal factors or isolated regions are not the cause of underdevelopment but rather underdevelopment is caused by historical and continuing exploitation of developing nations by developed nations through capitalist world systems. Dos Santos (1970) describes that dependency as a condition where the economy of particular countries is shaped by the development and expansion of another. Cardoso and Faletto’s (1979) suggest that while constraints are created by dependency, internal development and transformation are not prevented; with the right policies and state intervention some form of “dependent development” can be achieved by dependent nations. Prebisch (1950) argues that the prices of agricultural products and raw materials (primary goods) exported by developing countries were consistently decreasing in relation to the prices of finished goods imported from industrialised countries. This idea along with the concept of “center-periphery” and the unequal distribution of income were a solid foundation of dependency theory. Amin (1976) stresses on the role of unequal exchange, where peripheral nations are pushed to trade labour and raw materials for finished goods from the core, resulting in an unchanging flow of wealth from the periphery to the core. Rodney (1972) argues that the underdevelopment of Africa is not an inherent characteristic but is rather an outcome of centuries of exploitation by Europe including colonialism, slavery, and imperialism. He stresses that this exploitation enriched European nations while at the same time preventing African development (Rodney 1972).Literature reviewThe 1960s saw a decolonization wave across Africa, with about 17 countries attaining independence in 1960 alone. This period reflected an important turning point where postcolonial states aimed to assert sovereignty and have their development paths defined. Scholars however, argue that the initial end of colonialism did not result in economic liberation (Nkrumah 1965). Rather, what appeared was a new kind of “neo-colonialism” where previous colonies remained economically reliant on their previous colonizers through monetary systems, trade and aid (Nkrumah 1965; Rodney 1972). African political elites inherited economies which were focused on the export of raw materials and dependent on Western markets. Regardless of efforts towards achieving African socialism and developmentalism (for example Julius Nyerere’s Ujamaa in Tanzania), these first models had difficulty deconstructing the colonial economic infrastructure (Mamdani 1996). During the Cold War, African states were pulled into ideological alignments with either the Soviet socialist bloc or Western capitalist bloc. Western powers, specifically the United States and previous colonial states, offered financial, military, and diplomatic support to African regimes whose design aligned with their strategic interests (Westad 2005). For instance, substantial U.S backing was received by Mobutu Sese Seko’s Zaire as a bulwark against communism in Central Africa (Gibbs 1991). This support most of the time entrenched authoritarian regimes and formed dependencies that put constraint policy autonomy. While some African leaders exploited the rivalry to draw concessions from both blocs, the broader result was perpetual reliance on external powers (Clapham 1996). Post-independence Africa’s economic weakness was worsened by increasing debt crises in the 1980s, calling for extended engagement with the International Monetary Fund and World Bank. These institutions enacted Structural Adjustment Programs whose aim was to liberalise African economies, privatise state assets and cut public expenditure. Critics argue that SAPs weakened public institutions, deepened poverty and erased the developmental role of the state (Mkandawire and Soludo 1999). The conditionalities accompanying the loans limited sovereignty and policy space, with dependency being reinforced instead of allowing autonomous development (Stiglitz 2002).While Foreign Direct Investment is most of the time encouraged as a development tool, in Africa it has excessively flowed into extractive industries such as oil and mining, with restricted linkages to the broader economy. Transnational corporations (TNCs) gain from tax breaks, minimally contribute to local capacity building and repatriate profits (UNCTAD, 2021) Scholars such as Taylor (2016) argue that Africa’s weak regulatory systems are exploited by TNCs, effectively recreating the colonial model of resource extraction for outside benefit. This pattern of investment mainstains Africa as a supplier of raw materials instead of industrial power. The export of unprocessed raw materials stays as a hallmark of African economies, with countries Angola, Nigeria, and the DRC heavily dependent on mineral and oil exports. In a similar fashion, agricultural economies in Ethiopia and Cote d’Ivoire rely on coffee and cocoa respectively. This mono-crop and raw material reliance restricts value addition and reveal countries to commodity price shocks (Bates 1981). Moreover, Africa’s young labour force is often not used enough nor is employed informally, while some countries are labour reservoirs for wealthier countries (Crush and Tevera 2010). The outcome is a structural subordination in the global division of labour.Moreover, Africa’s young labour force is often underutilized or employed informally, while some countries serve as labour reservoirs for wealthier economies (Crush & Tevera, 2010). The result is a structural subordination in the global division of labour. The continued usage of the CFA franc by 14 Central and West African countries is proof of how monetary policies can worsen dependency. Underwritten by the French Treasury and pegged to the Euro , the CFA zone restricts African states’ ability to pursue independent monetary policy, affecting economic planning and competitiveness (Sylla 2016). Debates regarding monetary sovereignty argue that the CFA franc system is a historical artefact of colonial control, and efforts of reform such as the proposed Eco currency in ECOWAS have had difficulty in dependency on France and gaining traction because of divergent national interests (Van de Walle, 2001). Regardless of these structural limits, African states have gotten involved in regional activism through participating in organizations such as the Economic Community of West African States, African Union, Southern African Development Community, and Southern African Customs Union. These bodies lead political integration, peacekeeping, collective bargaining and intra-African trade. For example, ECOWAS has militaristically gotten involved in crises in Liberi, Gambia and Sierra Leone, placing itself as a regional guarantor of democratic order (Adebajo 2002). In a similar fashion the AU has encouraged regional integration and pan-African values through Agenda 2063. However, these efforts are often taken lightly by constraint funding, weak institutional capacity and donor dependence (Murithi 2008).Results (Comparative Analysis)This section compares African and Western economies across seven ideological and structural domains: Infrastructure, labour, international trade, economic ideology, currency, and wealth. This comparative analysis is important in understanding the systemic inequalities that emphasize dependency theory and the discourse of development in the Global South.1. TechnologyThe Gap in technology is a fundamental indicator of economic inequality between Africa and the West. Western economies, such as those of the United States, Japan, Germany, and Nordic countries, feature high levels of digital integration, technological innovation and research-intensive industries (Schwab 2017). According to the Global Innovation Index (2023), the top 20 countries are heavily Western, with the U.S, Switzerland and Sweden leading.In contrast, most African countries are behind in technological development because of lack of investment in research and development (R&D), weak intellectual property regimes, and dependence on imported technology (World Bank, 2020). For example, Africa contributes less than 1% to global scientific output (UNESCO, 2021). The digital divide remains severe, with broadband penetration below 30% in many Sub-Saharan countries (ITU, 2023).2. Infrastructure and UrbanismWestern economies have advanced infrastructure, consisting of extensive transportation networks, planned urban development, and reliable energy grids. Urbanization in North America and Western Europe is connected to infrastructural investment and industrialization during the 19th and 20th centuries (Harvey, 2012).In contrast, African infrastructure is most of the time fragmented and underdeveloped. The African Development Bank (2018) estimates a $130–$170 billion annual infrastructure financing gap. Urbanization in Africa is appearing without commensurate industrial growth, resulting in weak municipal planning, informal settlement and overburdened services (UN-Habitat, 2020).3. LabourWestern labour markets are highly skilled, formalized and protected by union regulations and social security. Labour productivity in OECD countries is significantly higher, backed by strong educational systems and technology (ILO, 2021).In Africa, the labour force is largely informal—over 85% in Sub-Saharan Africa (ILO, 2021). Many Africans are employed in low-productivity services or subsistence agriculture, with restricted access to social protection. Youth underemployment and unemployment are widespread, resulting in a ”labour surplus economy” (Mkandawire, 2005).4. International TradeGlobal trade is dominated by Western economies through value-added exports such as machinery, pharmaceuticals and digital services. They are core players in global value chains and most of the time set trade rules via institutions like the WTO (Rodrik, 2011).By contrast, African economies remain marginal in global trade, contributing only 2.8% to global exports, primarily in primary commodities and raw materials (UNCTAD, 2021). This pattern in trade resembles colonial legacies where African states import finished goods while they supply inputs—what dependency theorists call ”unequal exchange” (Emmanuel, 1972).5. CurrencyWestern currencies such as the Euro, U.S Dollar, Pound Sterling are global reserve currencies, stable and widely accepted in international transactions.. Their monetary systems are supported by independent central banks, strong institutions and deep financial markets (Eichengreen, 2011).Oppositely, many African currencies are weak, volatile and suffer from low convertibility. Some are even externally pegged (e.g., CFA Franc to the Euro), limiting monetary sovereignty (Sylla, 2016). Currency devaluation, inflation, and dollarization are common, resembling sensitive macroeconomic environments.6. Economic IdeologyWestern economies, regardless of rhetorical commitments to free markets, practice “embedded liberalism” (Ruggie, 1982), where welfare institutions and state regulation coexist with capitalism. Their development paths were historically encouraged by industrial policy, protectionism and state intervention (Chang 2002).In Africa, economic ideology has largely been influenced by outside prescriptions, especially neoliberal conditionalities from the Bretton Woods institutions and Structural Adjustment Programs (Mkandawire & Soludo, 1999). African states therefore function under restricted policy autonomy and constraint fiscal space, most of the time adhering to outside imposed economic orthodoxy.7. Wealth and IncomeThe West has in it the most of the world’s high-income countries. According to the World Bank (2022), the U.S. GDP per capita is over $70,000, compared to Sub-Saharan Africa’s average of less than $2,000. The wealth gap is based on centuries of accumulation through industrialization, colonial exploitation and financialization (Piketty, 2014).Africa remains the poorest continent, with over 400 million people living below the international poverty line (World Bank, 2022). While some African countries have faced growth, wealth stays concentrated, and inequality persists both within and between states (Acemoglu & Robinson, 2012).DiscussionThe comparative disparities between African and Western economies reveal a deeply entrenched global economic hierarchy that resembles structural, historical and ideological asymmetries. Each of the seven dimensions analyzed— infrastructure, labour, currency, trade, economic ideology, wealth, and trade—represents not only a secret site of inequality but also a node in a larger system of dependency and uneven development. This system is historically produced and not accidental, it is also maintained institutionally.Technological Disparity as Structural ConstraintThe technological gap indicates how innovation ecosystems are both a cause and consequence of inequality. Western states, through investments that are sustained through research and development, have nurtured endogenous technological capacity, emphasizing their position in the economy of global knowledge. Africa’s peripheral status- appeared in low R&D output, technology dependence and poor digital infrastructure—restricts its capacity to leapfrog into post-industrial development or higher stages of industrial development. This echoes dependency theory’s warning that latecomers in the global system face structural shortcomings not easily overcome by market reforms alone (Prebisch, 1950; Rodney, 1972).Infrastructure and Labour: The Missing Link Between Urbanization and IndustrializationAfrica’s informal labour markets and infrastructural deficits are symptomatic of what scholars label “Structural heterogeneity”—a coexistence of underdeveloped sectors and modern enclaves (Furtado, 1964). Western countries were able to urbanize together with industrialization, creating formal employment, productivity gains and social security nets.. In Africa, however, rapid urbanization with no equivalent industrial development has resulted in megacities mixed with jobless growth, informality, and weak state capacity.Trade and Currency: Echoes of Colonial Trade PatternsThe unequal participation in global trade and the subordination of African currencies to Western monetary systems resembles the legacies of colonial economic structures. While the West exports complex finished goods and digital services, African economies stay locked into raw material exports, exposing them to terms of trade losses and commodity shocks. Emmanuel’s (1972) notion of “unequal exchange” aptly captures how global trade rules and currency hierarchies recreate African dependency and restrict sovereign development strategies. The persistence of outside pegged currencies, such as the CFA Franc, underscores how monetary sovereignty remains compromised for many African states.Ideological Imposition and Policy SpaceOne of the most important findings is the ideological asymmetry in economic governance. Western economies gained historically from state intervention and protectionist policies while prescribing neoliberal orthodoxy to African states through Structural Adjustment Programs and conditional aid. Chang’s (2002) metaphor of the West ”kicking away the ladder” is not just a critique of hypocrisy but a structural diagnosis: African states are denied the very tools—capital controls, industrial policy, public investment- that facilitated the prosperity of the West As Mkandawire and Soludo (1999) argue, this outside driven policy regime contrains the continent’s ability to chart endogenous development paths.Wealth, Income, and Historical AccumulationThe contemporary global wealth gap cannot be understood outside the historical processes of slavery, colonialism, and imperialism, which enriched Western states and impoverished African ones. Piketty’s (2014) observation that wealth begets more wealth is particularly relevant in explaining how early capital accumulation in the West has compounded into generational prosperity, while African countries remain caught in cycles of aid dependence, debt, and extractive economies. The disparity is not just economic—it is epistemic, political, and institutional.Towards an African-Centered Development ModelThe findings underscore the need to reimagine Africa’s development trajectory beyond Western prescriptions. This contains investing in science, innovation and technology, building regional value chains, building regional value chains, reclaiming macroeconomic sovereignty, and promoting institutional resilience. Importantly, development must be embedded in local realities rather than externally imposed paradigms. Concepts such as Afrocentricity, Pan-African economic integration, and postcolonial statecraft become essential frameworks for thinking about long-term transformation.Policy Recommendations for African DevelopmentTechnology: Building Indigenous Innovation SystemsInvest in R&D and Higher Education: governments in Africa must contribute a greater percentage of GDP to research and innovation (targeting 1-2% as per UNESCO recommendations). Partnering with local universities and industry can promote relevant innovation ecosystems (Mazzucato 2013)Strengthen Intellectual Property Systems: formalize regional patent frameworks and technology transfer agreements to reward local invention and protect knowledge productionLeverage Digital Leapfrogging: promote fintech and mobile technology fintech (for example M-pesa in Kenya) to defeat limitations of legacy infrastructure and encourage inclusive digital economies.Infrastructure and Urbanism: Closing the Infrastructure GapPublic-Private Partnerships (PPPs): Have private capital mobilized with clear regulations to invest in energy, transport and housing while maintaining public interest (AfDB, 2018).Regional Connectivity Projects: Have cross-border infrastructure expanded like fiber optics, trans-African highways, and power pools through frameworks such asthe Program for infrastructure Development in Africa and NEPAD (PIDA)Smart and Resilient Urban Planning: take up integrated urban strategies that prioritizes public transport, affordable housing, and green infrastructure in fast-growing citiesLabour: Formalization and Skills DevelopmentInvest in TVET: Shift the focus from rote learning to technical and vocational education aimed at industrial demand (ILO 2021)Formalize the informal Economy: allocate small businesses with tax rewards, legal identity and access to microfinance to oversee their transition into the formal economyLabour rights and Social Protections: increase universal health coverage, decent work policies to reduce precarity and pension schemes.International Trade: Value Addition and Regional integrationDevelop Agro-processing and Light Manufacturing: Moveup the value chain by investing in sectors like food processing, textiles and pharmaceuticals instead of exporting raw materials.Strengthen the African Continental Free Trade Area (AfCFTA): Harmonize standards, get rid of tariff and non-tariff barriers, and have intra-African trade boosted (UNECA 2021).Negotiate Fairer Global Trade Deals: Build collective bargaining power through blocs like the G77, AU and ACP to challenge unequal trade terms.Currency: Enhancing Monetary Sovereignty and StabilityBuild Regional Monetary Unions: Promote convergence through blocs such as ECOWAs and the East African Community to decrease dependency on external currencies (Sylla 2016).Develop Soverign Wealth Fund: Use commodity surpluses to invest in productive sectors and stabilize national currenciesExpand Access to Pan-African Payment Systems: enact systems .lile PAPSS to decrease dependence on the U>S dollar in intra-African trade.Economic ideology: Strategic Autonomy over Neoliberal ConditionalitiesReject one-size-fits-all neoliberal reforms; accept context specific development strategies inspired by successful Asian models like development states (Mkandawire 2001).Strengthen Domestic Revenue Mobilization: enhance tax collection, decrease illicit financial flows, and stop capital flight to decrease dependence on aid.Encourage Industrial Policy: Use state-led planning, public procurement to build productive capacity and infant industry protectionWealth and Inequality: Redistribution and Economic JusticeProgressive Taxation and Wealth Redistribution: capital gains, tax land and inheritance to address inequality and fund public servicesInclusive Growth Strategies: Prioritize sectors that hire large numbers fo people (services, agriculture) at the same time encouraging SMEs and women’s entrepreneurship.Regional Development Banks: Strengthen institutions like the African Development Bank and the African Export-Import Bank to finance continental prioritiesConclusionThis paper has critically examined the enduring disparities between African economies and their Western counterparts across seven interrelated dimensions: technology, infrastructure and urbanism, labour, international trade, currency, economic ideology, and wealth and income. These dimensions collectively illustrate the systemic nature of global inequality and the entrenched position of African economies in a structurally subordinate role within the international economic order.Technological lag, infrastructural deficits, and labour informality are not isolated issues but symptoms of deeper historical and structural imbalances rooted in colonial exploitation, dependency, and externally imposed economic models. Meanwhile, the West benefits from technological innovation, institutional stability, and the cumulative advantages of early industrialization and capital accumulation. Western dominance in global trade, finance, and economic governance further entrenches these asymmetries, perpetuating a cycle where Africa remains a supplier of raw materials while relying on imported goods, ideas, and financial systems.Moreover, Africa’s policy space continues to be constrained by neoliberal orthodoxies propagated through institutions like the IMF and World Bank, limiting the continent’s capacity for homegrown development strategies. The weak and volatile currencies, underdeveloped infrastructure, and unprotected labour markets are not merely economic failures but reflections of limited sovereignty and skewed global power dynamics.Addressing these challenges requires a radical rethinking of Africa’s development model—one that prioritizes endogenous innovation, regional integration, and macroeconomic sovereignty. 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