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Our Fragile Economy

01 Oct 2014

There is a very interesting article in today’s Wall Street Journal in the Real Time Economics section.  “It’s Not Ebola Sapping Nigerian Economy, but Boko Haram” reminds us of the difficulties developing nations face and the fragility of our own economic condition. While economic barometers do not indicate imminent economic failure and the United States economy continues it’s new trajectory after the Great Recession, there are numerous events that could derail the global economy’s moderate growth.

Ebola has claimed over 1000 lives in West Africa. In addition to the loss of life, there has been a significant economic impact. However, according to this article most of the problems with ebola have been confined to “Sierra Leone, Liberia and Guinea”, only three of the 18 nations that comprise West Africa. According to Nigeria’s finance Minister, the real problem facing her nation is with the Islamic insurgency Boko Haram fighting in the northern part of Nigeria.

Boko Haram has outgunned an overstretched and demoralised army, kidnapping girls and women, forcing boys into their ranks and razing entire villages in their quest to revive an Islamic caliphate. On 14 April, a decade of festering insurgency erupted in the mass abduction of almost 300 girls in Chibok, Borno state. (The Guardian).

While the abduction of the girls brought justified international outrage, Boko Haram has been harming the Nigerian economy for years. There is an acute and chronic failure of the Nigerian government to provide the kind of environment where economic activity will flourish.

Government failure of this type is easy to see in developing countries. We in the developed West should not believe ourselves immune from similar catastrophes. We need to be continually striving to direct our government in the direction of free economy and limited government to ensure economic success.

As depicted in Genesis, when God first addressed Adam after the fall, He said:

cursed is the ground because of you;
    in pain you shall eat of it all the days of your life;
18 thorns and thistles it shall bring forth for you;
    and you shall eat the plants of the field.
19 By the sweat of your face
    you shall eat bread, (Genesis 3:17c-19a).

The advancements in economic knowledge that have allowed us to create tremendous amounts of wealth should not be taken for granted. We have not and will not overcome the curse that is on humanity because of sin. Economic success is given to any nation or group of people is by the grace of God. We should never presume that we will be able to keep it.