A lot of people probably think the building of a massive hydroelectric dam in a developing African nation is a good thing. Economic stimulation, sustainable and reliable electricity, the end of poverty (maybe) for a lot of people… However, after reading Confessions of an Economic Hit Man a few years back, I look at announcements like this in a little different light. For example, how long do you think it’s going to take a nation with a GDP of a little under $6 billion (that’s 2003, couldn’t find anything more recent) to pay back the debt associated with financing an $80 billion hydroelectric project? Well, how long would it take you to pay off a house that is over 13 multiples of your annual salary?! I wonder how much the Bain and Companies of the world get to skim off the top off a deal like this, and by doing so put a developing African nation forever in debt to the superpowers of the globe…
