Ethiopian Leader Reviews Hamilton Versus Wall Street

(June 23, 2025—I am delighted to share this review of my book Hamilton Versus Wall Street. It is printed with permission from Lawrence Freeman, author of the blog Africa and the World, who published it in his June 22^nd newsletter. Would that more Americans would take this book as seriously as Dr. Lenjiso, whom I thank sincerely for providing his analysis and recommendation. To get a copy of the book, click here.  )

Hamilton versus Wall Street: Relevance to Ethiopia & Africa

By Dr. Birhanu M Lenjiso. Former State Minister of Irrigation Development, & Director General of Oromia Agricultural Authority, Ethiopia

Introduction

About five years ago, my friend Lawrence Freeman, gave me an enlightening book: Hamilton Versus Wall Street: The Core Principles of the American System of Economics published by Nancy Bradeen Spannaus in 2019.

Alexander Hamilton is regarded as a Founding Father of the United States. Beyond, being a chief of staff to General Washington, one of the most influential interpreters and promoters of the Constitution, and the founder of the nation’s financial system, he was the first Secretary of the Treasury, who established the nation’s financial system, including the national bank, federal assumption of state debts, and a framework for economic growth. As an aide to George Washington, he was an artillery officer and strategist. He was also chief author of the Federalist papers, which urged ratification of the U.S. Constitution. He is credited for shaping early American politics, but also made powerful enemies, most notably Aaron Burr, who fatally shot him in 1804. His legacy continues to influence the U.S. financial system and debates surrounding federal power. (For an overview of Hamilton’s contributions, click here.-ed.)

The book, Hamilton versus Wall Street challenges the notion of Hamilton as a proponent of speculative finance, instead revealing his visionary economic principles that prioritized national development, infrastructure, and public welfare over Wall Street’s short-term profits. This sparked my curiosity about how Hamilton’s ideas might provide valuable insights for Ethiopia and Africa, where economic sovereignty and sustainable growth are pressing concerns. My reading, along with my recent discussions with Mr. Freeman inspired me to explore the book’s relevance to Africa, making it a compelling subject for review.

Hamilton versus Wall Street examines Hamilton’s economic philosophy, which laid the groundwork for America’s emergence as an industrial powerhouse. The book argues that Hamilton’s principles of protectionism, infrastructure investment, and a national banking system offer a timeless blueprint for economic development. While the book primarily focuses on the U.S., I believe its concepts resonate beyond, and particularly relevant for developing nations who are striving to secure economic sovereignty. Therefore, my goal here is to evaluate the relevance of the book for Ethiopia and the broader African continent, where countries grapple with industrialization, foreign debt, and economic dependency.

In fact, Spannaus presents Hamilton’s American System of Economics as a counterpoint to the laissez-faire capitalism promoted by Wall Street. To show that the author outlines three key pillars of Hamilton’s philosophy:

1. Protectionism: that is explained by implementing tariffs and subsidies to nurture infant industries and shield them from foreign competition.
2. Infrastructure Development: this is about state-led investments in roads, irrigation canals, and later railroads to enhance economic connectivity.
3. National Banking: this relates to establishing a central bank that focuses on stabilizing currency, managing debt, and funding development projects.

The author tried to illustrate these three principles with historical examples, such as Hamilton’s Report on Manufactures (1791), advocating for industrial self-sufficiency. She also cites the rapid industrialization of the U.S. in the 19th century as evidence of Hamilton’s success, noting, “Hamilton’s system provided the unique basis for building the United States into an industrial power.” Spannaus’ book contrasts Hamilton’s vision with Wall Street’s focus on speculative finance, asserting that his principles remain relevant for nations seeking economic independence – justifying the relevance of this review.

Critical Analysis of the Book

Spannaus did a wonderful job in making complex economic ideas accessible for the reader, it is a well-written and easy to read book. The historical depth, grounded in primary sources like Hamilton’s writings, supports the argument effectively. The book also challenges the dominance of free-market ideology, offering a refreshing perspective on state-led development. However, the book’s U.S.-centric limits its global perspective. In fact, Spannaus briefly mentions its relevance for developing countries but she does not delve into how Hamilton’s ideas apply to post-colonial contexts. Additionally, the book risks oversimplifying Hamilton’s policies and downplaying criticisms of protectionism or centralized banking in modern economies. In general, Spannaus’ clear, engaging prose makes the book accessible to non-economists, although the repetitive emphasis on Hamilton’s genius occasionally detracts from a nuanced discussion of the limitations of his policies.

Relevance to Ethiopia

Ethiopia, one of Africa’s fastest-growing economies, provides fertile ground for applying Hamilton’s principles. With an average GDP growth rate of more than 7% annually over the past decade, Ethiopia has made significant investments in infrastructure, such as the Grand Ethiopian Renaissance Dam (GERD), industrial parks, irrigation systems, telecommunications, and roads. However, challenges like foreign debt, reliance on agricultural exports, and limited industrial capacity mirror the early U.S. conditions Hamilton addressed.

1. Protectionism: Ethiopia’s government has enacted policies to protect local industries for years, such as tariffs on imported textiles to support its garment sector. Hamilton’s advocacy for shielding infant industries aligns with Ethiopia’s strategy to develop manufacturing. Spannaus notes Hamilton’s belief that “government must play a role in fostering industry,” a principle evident in Ethiopia’s state-led industrial parks.
2. Infrastructure Development: Ethiopia’s ambitious infrastructure projects, like the GERD, reflect Hamilton’s emphasis on state-driven public works. The GERD, funded domestically to maintain sovereignty, aligns with Hamilton’s vision of national control over critical assets. Spannaus highlights Hamilton’s promotion of canals and roads, which “created the arteries of commerce,” a model Ethiopia could adopt to enhance regional connectivity.
3. National Banking: Ethiopia’s dependence on foreign loans underscores the need for financial independence. Hamilton’s national bank helped stabilize U.S. finances, and a similar institution could assist Ethiopia in managing debt and funding development. Spannaus argues that Hamilton’s bank “provided a stable currency and credit system,” a lesson for Ethiopia as it navigates currency devaluation and inflation.

However, Ethiopia must balance protectionism with global trade integration. Over Reliance on state intervention, as cautioned in the book’s critique of centralized systems, could stifle innovation if not accompanied by market reforms.

Relevance to Africa

Africa’s economic landscape, characterized by raw material exports, foreign debt, and underdeveloped industries, makes Hamilton’s principles broadly applicable. Many African nations, such as Nigeria and Rwanda, are pursuing industrialization to reduce dependency on volatile commodity markets.

1. Reducing Financial Dependency: Africa’s $700 billion external debt burden highlights the need for financial sovereignty. Hamilton’s national banking model could inspire institutions like the African Development Bank to prioritize local financing. Spannaus notes that Hamilton’s system “freed the U.S. from foreign creditors,” a goal African nations could strive for to avoid debt traps.
2. Promoting Industrialization: Hamilton’s protectionist policies could guide African nations in nurturing industries. Nigeria’s efforts to revive its textile industry through import restrictions reflect Hamilton’s tariffs. Spannaus emphasizes that Hamilton’s policies “built a manufacturing base from scratch,” serving as a blueprint for African economies transitioning from resource extraction.
3. Regional Infrastructure: Africa’s infrastructure deficit, estimated at $100 billion annually, necessitates Hamilton-style investments. Rwanda’s focus on digital infrastructure and regional trade hubs exemplifies this approach. Spannaus’ description of Hamilton’s infrastructure as “essential for national unity” underscores its relevance for African integration, such as the African Continental Free Trade Area (AfCFTA).

Nevertheless, Africa’s diverse political and economic contexts complicate the application of Hamilton’s ideas. Global trade agreements and multinational corporations may limit the feasibility of protectionism, and state-led projects risk corruption without strong governance.

Critical Reflections

Hamilton’s principles provide African policymakers with a framework to prioritize economic sovereignty, but adaptation is essential. Ethiopia’s substantial investment in infrastructure, including the GERD, industrial parks, irrigation systems, and roads, showcases the potential of state-led development, while Rwanda’s technology-driven growth illustrates how Hamilton’s ideas can be modernized. However, the risks of protectionism, such as trade retaliation or inefficiency, must be carefully navigated. The book’s U.S.-centric lens also overlooks Africa’s unique challenges, such as colonial legacies and global economic pressures. Policymakers should blend Hamilton’s ideas with local innovations, ensuring accountability and inclusivity.

Conclusion

Hamilton Versus Wall Street serves as a well-crafted defense of Alexander Hamilton’s economic vision, offering valuable lessons for nations pursuing industrial and financial independence. Its relevance to Ethiopia lies in its alignment with ongoing infrastructure and industrialization efforts, while its broader application to Africa addresses the continent’s quest for economic sovereignty. Although Spannaus’ focus on the U.S. limits the book’s global scope, its clarity and historical insight make it a compelling read. Policymakers in Ethiopia and Africa should consider Hamilton’s principles as a guide, tempered by the realities of 21st-century globalization. For readers interested in economic development, this book provides a thought-provoking starting point for reimagining state-led growth.

To get a copy of Hamilton Versus Wall Street, click here .

Tags: Africa, Alexander Hamilton, Birhanu Lenjiso, Ethiopia, Hamilton Versus Wall Street, infrastructure, Lawrence Freeman