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In recent years, however, it has become evident that institutions have an important impact on entrepreneurial activities and thus on the creation of wealth. In each society, the incentive system determines how market participants behave and consequently their ability and willingness to take part in wealth-creating activities. A country's laws and institutions determine the incentive system which citizens face. Consequently, one can argue that the several constraints to development in Africa named above are actually evidence of poorly designed, weak and inefficient institutional arrangements. Basically, the laws and institutions adopted by the African countries at independence encouraged opportunism and prevented the rapid economic growth that could have generated the wealth needed by the African countries to confront poverty and deprivation in their societies...
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