If there is an argument that Africa should trade themselves out of poverty, what are the major problems increasing trade? The main two classical answers to unequal trade are (1.) subsidies and protectionism by Americans and European countries to their own farmers and economy and therefore discriminating against imports from Africa, and (2.) the second argument usually follows the line of lacking investments into local economy and the outflow of investments from Africa, neo-colonial financial sector (Stiglitz) and brain drain or outflow of expertiese.
But why are African countries not trading with each other? While Latin American countries trade among each other is close to 50% of the total and Asian countries trade equally by 50% with each other, why the local trade among African countries is only 10% of the total? (World Bank 2010)
