AFRIPOL.ORGIDEAS HAVE CONSEQUENCES
VIEWS, COMMENTARIES & ARTICLES.
COMMENTARY BY AFRIPOL: ETHIOPIA AND STARBUCKS ON TRADEMARK ISSUE 02/07/07
Ethiopia in recent history have overcome a disastrous period marked with extraordinary hardship of drought, famine and war. Apart from foreign aid, the major source of foreign currency for Ethiopia is from coffee. Starbucks an enlightened company has for a while been doing business with this nation and its farmers anchored on mutual benefit.
Now protuberance have emerged, the crust of the matter is the issue of trademark, which is tearing the nation and the company apart.
Starbucks have to rise to the occasion and formulate a deal with Ethiopia. This can be done when cool-heads are put together, and when bottom-line cannot be look upon as the final frontier. Starbucks must realize that the country they are dealing with, is not a wealthy nation and Ethiopia needs all the help it can get to take care of her bulging population. The farmers, the growers of this cash crop must be bring into the equation, a little surge in price of coffee is translated to feeding more mouths. This can be the justification for the trademark of the coffee.
In Starbucks mission statement, it emphasized its commitments to paying liveable prices and “are committed to paying fair prices for the coffee we buy. In addition to the higher prices we pay, we help farmers produce the highest-quality coffee beans in the world, in a manner that will sustain their farms and the industry as a whole.”
Trademark of the coffee can translate to higher income for Ethiopian farmers.
The time has come to live up to these commitments and Starbucks have to act accordingly.
© 2007 AFRIPOL.org
COMMENTARY AND ANALYSIS : EFCC TO NAME CORRUPT LEADERS IN NIGERIA
President Olusegun Obasanjo created the Economic and Financial Crimes Commission in 2002 to fight and eliminate corruption in Nigeria.
Mallam Nuhu Ribadu, the head of the Economic and Financial Crimes Commission(EFCC), Nigeria's anti-corruption agency says it will publish the names of all past and present political leaders who have looted and stolen money from Nigeria’s treasury. Mallam Nuhu Ribadu, said more than $400bn (£211) of oil revenue had been stolen from the treasury. He also said that the chronicle would deter corrupt politicians from seeking office in elections due 2007.
"We are going to trace the activities of past and present leaders and publish the names of those leaders who have laundered money, their accounts and the names of the banks where the money is being kept. We will also close the accounts of those politicians who have laundered money and converted it for their political ambitions. This will stop bad people from coming into power," he said.
Meanwhile a legal luminary and a Nigerian frontline human rights activist Gani Fawehinmi (SAN) and fondly called Senior Advocate of the Masses has given an express support to EFCC in respect of making good on its declared intentions. “Fawehinmi offered the services of his chambers free of charge to the commission, should anyone go to court to challenge EFCC's insistence on checkmating corrupt political office seekers. Citing a plethora of legal authorities and the 1999 Constitution, Fawehinmi averred that one of the greatest contributions that EFCC could make to Nigeria is to prevent known corrupt people from getting into government again.”
L-R : President Obasanjo and EFCC Chairman Nuhu Ribadu (Pointing)
AFRIPOL supports and encourages a genuine, candid and sincere fight against corruption in Nigeria and Africa in general. We therefore commend the Economic and Financial Crimes Commission (EFCC) and the leadership of Mallam Nuhu Ribadu for their clear mission, dogged fight and achievements. All hands must be on deck to encourage and sustain the tempo of the fight against the menace. Nigeria is a nation endowed with both natural and human resources and is a major exporter of oil, but corruption has always been the bane of development in the most populous nation in Africa. When the natural and human resources of Nigeria are prudently harnessed, the result will be so tremendous that it will literally propel Africa to Olympian height.
Some of the leaders have little or no vision and therefore lack the where-withal to transform the system. They exploit the execution of white elephant projects as a bait to siphon money. This myopic inclination no doubt makes them shy away from the provision of basic amenities of life. Corruption is a clog on the wheel of development in any nation. With all intents and purposes, Nigeria supposes to be making waves in technology empowerment and economic advancement but could not, because she is enmeshed in corruption. The money meant to develop her infrastructures is being siphoned to foreign lands. These foreign accomplices, who assist to commit this heinous crime, use the money to develop theirs, while Nigerians are left battered and stricken with diseases and poverty. Poverty grows geometrically; the middle class has virtually disappeared, the few rich that exert power get richer. Graduates roam the streets with no job at sight. The obvious trend however, is a harbinger of calamity, apathy and destruction. Democracy cannot comfortably foster on such incursion. Corruption has done much damage to Nigeria, It has eroded trust, fairness and justice in this great country. Without Nigeria as an affirmative agent of progress, Africa may be unimaginably stagnant.
All the citizens especially the public servants must be made to shun corruption or worse still be ready to be punished to deter this evil. It is a vice that must be aggressively fought and won by any right thinking government. We must prove and demonstrate ourselves and to friends and even foes that we as a people have sincerely renounced corruption in all its facets. The battle against this evil must be thorough and steady.
Our families, schools and religious institutions must help to circumvent this parasite devouring our society. In primary and secondary institutions, social studies must emphasis the culturalization of probity and good mannerism in order to instill trust and restraint in one. Our universities must introduce lectures on ethics that delineate good governance, self-discipline and patriotism. Our courts must play a vital role in the fight against corruption by dispensing justice, with expedite and fair trials.
Our leaders must lead by example so that hard work will be encouraged and emulated as against preference to quick and ill-gotten wealth. Probity and accountability must be the cornerstone of our management and administration in modern day Nigeria.
© 2006 AFRIPOL.org
click:THE EFCC REPORT ON ABUBAKAR ATIKU - THE VICE PRESIDENT OF NIGERIA
WHAT DOES AFRICA NEED FROM THE WEST
SUMMARY: The West have made foreign aid and corruption elimination as the epicenter of poverty alleviation in Africa. Aid is not necessarily the engine of development. As for corruption, no continent has monopoly on corruption. Liquidating corruption is more complex to be projected only on Africans.
At Glenglades in Scotland 2005, the G8 nations under the leadership of Prime minister of Britain, Tony Blair, proposed to increase foreign aid to African countries to the tune of $50 billions in the next decades. The G8 nations pledged to effectuate debt remission for most highly indebted nations in the developing nations. Fourteen nations in African benefited from the program after completing austere structural programs and having graduated to completion points approved by their creditors and International Monetary Fund (IMF).
The G8 nations at that point mapped out modalities for the proposed foreign aid, and of recent Tony Blair formed an organization of eminent personalities including Bono, President Obasanjo, Geldof, Kofi Annan with Bill Gates as the chairman - to monitor G8 nations in their pursuit of redeeming the pledge. This is a good development; besides the level of Africa’s ills cannot ordinarily be wished away by mere increase in aid support.
"Africa faces many barriers to growth and development. The ravages of the slave trade, the European carve-up of the continent, followed by colonial rule and the seizure of African land and resources, the support of tyrants during the Cold War, all added up to a history of exploitation by outsiders. Today globalisation has had a mixed impact on the continent."
Aid is not an engine of development, rather its impact is short term and sometimes it can be a barrier to economic development because of the attached strings.
First and foremost, the procedural disbursement of aid from government to government does encourage corruption and in some cases becomes a ploy to lobby leaders of recipient nations to dance to the tune of the donor nations.
As for debt remission, Africa received $540 billion loans between 1970-2002, she paid back $550 billion (i.e. principal with interest inclusive) and she still owned $295 billion as at the end of 2002.
AFRIPOL to this end is canvassing and looking forward to having a situation where the entire Africa‘s foreign debt will be written off unconditionally in order to achieve the UN Millennium Development Goal of halving global poverty by 2015. There is no gainsaying that Africa has not paid enough dues even with all the litany of problems confronting the continent.
Beyond aid and debt remission, the West should ask, what does Africa really need from us?
Encouragement and Empowerment to foster Freedom and Liberty: Africans must live in the system of government that encourages freedom and justice. The respect for fundamental human rights must be instituted and adhered to; an environment that provides self-help, self-improvement and self-innovation must be encouraged. Only freedom can make these things possible and make free enterprise a reality, so that free people can create wealth and advance human dignity.
The West must encourage and support governance that accommodates checks and balances in Africa. This will in turn provide accountability and respect for the populace. What Africa needs mostly include, elimination of dictators and socialist regimes, establishment of virile/free political platform and economy, rule of law and respect for individual rights. All these things do border on fundamental issues which foreign aid alone cannot redress. Until these issues are properly put right, the story of the optimum utilization of these billions of dollars from foreign aid will always remain a mirage.
Anti-corruption legislation: The responsibility of fighting corruption is too complex and gigantic to be left for one party. Both Africa and West must partake in the fight against corruption. The West must enact banking laws that will fish out bankers that accept laundered money and tainted wealth from corrupt African leaders and bureaucrats. Ill-gotten wealth must be returned to Africa without much ado, while the culprits must be exposed and prosecuted.
The West must work together with African governments on the war against corruption and bribery. Corporations and Transnational companies operating in Africa must not induce politicians and bureaucrats by bribes in their quest for contracts.
" African Union estimates that the continent loses as much as $148 billion a year to corruption. This money is rarely invested in Africa but finds its way into the international banking system and often into western banks. The proceeds of corrupt practices in Africa, (which the African experts group recommended in 2002 should be classified as a ‘crime against humanity’ because of its impact on ordinary people), are often laundered and made respectable by some of the most well known banks in the City of London or the discreet personal bankers of Geneva and Zurich.”
Elimination of wars and Promotion of Peace and conflict resolutions: The West can work with African union in finding solutions to the cessation of conflicts and wars.
Wars (especially internal strife) are ubiquitous in the continent. Some African governments and warmongers commit their resources to executing endless wars. The West must frown upon the sell of arms to these parties by checkmating their natives arms industries.
Fair and Balance Trade : The West must encourage fair and equitable trade with Africa. The giving of aid must not be the only means to defeat poverty and alleviate quality of life in Africa.
The promotion of trade can be possible when concessions are made to infant industries in Africa. The West can improve technological developments by investing in areas of science and technology that can sharpen the technical-know-how in the continent.
The West must stand for fair trade at the World trade organization by conscientiously removing agricultural subsidies given to their own agricultural sectors that adversely affect the traffic of commodities from Africa. Only trade can be the panacea to poverty in Africa, this will by and large booster a higher GDP and a decent standard of living.
Africa must embark on the area of trade specialization where she has the greatest comparative advantage. It seems that agriculture is the best possible for Africa. The Western World must take the initiative of reducing trade tariffs and removal of agricultural subsidies. By this, developing nations and poor countries especially in Africa can participate and compete favorably with the West. In practice, free trade must be made to work for every nation. World trade Organization must implement trade policies that are doable, workable and all-inclusive. Foreign aid is good and dandy, though on the contrary, history has always proved that aid has slightly or insignificantly improved nations nor ameliorated the well-beings of the fabric of the needy class at the long run. Foreign aid can be given via reduction in prices of medicine, pharmaceutical equipment and of essential commodities needed for survival in the less technological nations. We cannot downplay the role of foreign aid when fully utilized, when it goes to the required projects that ought to impact the needy positively. But Africa core need is beyond these immediate measures.
© 2006 AFRIPOL.org
PRESS RELEASE: THE DATA REPORT 2006
Background:
DATA - DEBT. AIDS. TRADE. AFRICA.
DATA aims to raise awareness about, and spark response to the crises swamping Africa: unpayable Debts, uncontrolled spread of AIDS, and unfair Trade rules which keep Africans poor.
DATA is part of a rising tide of action by people like you to beat back these crises.
The organization was founded in 2002 by Bono, the lead singer of U2, along with Bobby Shriver and activists from the Jubilee 2000 Drop the Debt campaign. At the core of DATA's mission is a view that these issues are not about charity, but about equality and justice.
DATA calls on the governments of the world's wealthy nations — the United States, Europe, Canada and Japan — to put more resources towards Africa, and to adopt policy that helps rather than hinders Africa in achieving long-term prosperity. We also call on Africa's leaders to strengthen Democracy, Accountability and Transparency toward their own citizens- to make sure that support for African people goes where it's intended and makes a real difference.
DATA is bringing people and organizations from all around the world together to stop the spread of AIDS and extreme poverty in Africa. From our offices in Washington D.C. and Los Angeles, we work in partnership with grassroots organizers and other non-governmental organizations across the US to build a movement of Americans who want to help Africans achieve a better future and want their government to do the same.
In Europe, our office in London works with other organizations to raise awareness and put pressure on governments, especially the members of the G8 and the EU (UK, France, Germany, Italy) who, alongside the US, are the world's largest economies. Through international networks, we also work with campaigners in other countries such as Australia, Canada and Japan as well as in Africa itself.
DATA has focused public attention on Africa through trips to the continent with high-profile celebrities (such as Bono, Bob Geldof and Chris Tucker), politicians and media, as well as inviting African activists from Uganda and Ghana to tour with celebrities through the United States (such as Ashley Judd, Warren Buffett and Lance Armstrong), as well as through reports on whether politicians are keeping their promises to Africa.
Click here: For the complete text on the DATA REPORT 2006
The Rights of Refugees and Displaced Persons
Darfur Refugees
Not only does Africa continue to host more refugees per capita than any other continent, its experiences present a microcosm of both the major challenges to, and opportunities for, innovative approaches to the protection of the displaced.
Despite severe political and economic difficulties, Africans continue to offer generous hospitality towards millions of refugees and internally displaced people. The region’s progressive human and refugee rights framework reflects this strong commitment. Unfortunately, there are signs that the tradition of welcome for the stranger may be under threat as conflict continues to affect many regions, borders are closed and refugee camps are viewed as threats to state security. There is a danger that African governments may capitulate to the policies of restrictionism which have already firmly taken hold in Europe, North America and elsewhere.
As the pressures on African host communities mount, the continent is at the same time creating new opportunities for challenge to these trends. Not only are a number of protracted conflicts drawing to a close but major institutional changes—including the creation of the African Union, the New Partnership for Africa's Development (NEPAD), and the strengthening of sub-regional arrangements—hold out great hope for African refugees. There is real potential that progressive law and policy making, increased accountability for refugee rights, and greater access by civil society to the centers of decision making can be achieved.
A strong transnational network of advocates is required to trigger this potential and build on those best practices which already exist. Many African non-governmental organizations (NGOs) and human rights advocates have the knowledge with which to frame messages of refugee rights protection—but rarely the time and resources to examine protection challenges from a regional or international perspective. IRRI particularly works to facilitate the exchange of insights from the ground across national borders and to spur the design of effective NGO research and advocacy strategies. (IRRI - International Refugee Rights Initiative )
Understanding the Rights of Refugees and Displaced Persons:
1.The history of international protection of refugees and displaced person
2.The role of the United Nations High Commissioner for Refugees
3.The main international protection mechanism for refugees: the 1951 Convention
relating to the Status of Refugees
4.The European Convention on Human Rights and how it protects refugees and asylum-seekers
5.Procedures for determining refugee status
6.International assistance to internally displaced persons
Click here: For complete Text on Refugees and Displaced
Underdevelopment in Africa: The Role of the Private Sector and Political Elites
by Moeletsi Mbeki
Moeletsi Mbeki is deputy chairman of the South African Institute of International Affairs, an independent think tank based at the University of the Witwatersrand.
Summary
Economic growth in Africa, as in the rest of the world, depends on a vibrant private sector. Entrepreneurs in Africa, however, face daunting constraints. They are prevented from creating wealth by predatory political elites that control the state. African political elites use marketing boards and taxation to divert agricultural savings to finance their own consumption and to strengthen the repressive apparatus of the state. Peasants, who constitute the core of the private sector in Africa, are the biggest losers. In order for Africa to prosper, peasants need to become the real owners of their primary asset — land — over which they currently have no property rights.
Peasants must also be given direct access to world markets. They must be able to auction their cash crops, including coffee, tea, cotton, sugar, cocoa, and rubber, freely rather than being forced to sell them to state-controlled marketing boards at discounted prices. In that respect, South Africa is unique in the region. The country does not have a large disenfranchised peasantry. Most of South Africa’s private sector belongs to South Africans, who also have a say in the political process. The future will show whether those factors will constrain the power of the South African political elite in a manner that is sufficient to safeguard South Africa’s growth potential.
Click: FOR THE COMPLETE TEXT BY MOELETSI MBEKI ON AFRICA
Freedom, Not Foreign Aid, For Africa
by Walter Williams (July 12, 2005)
British Prime Minister Tony Blair is pressuring the rich nations of the world to give more foreign aid to Africa -- to the tune of $25 billion a year by 2010. The U.S. already gave $3.2 billion last year. In the wake of this pressure, we might ask ourselves whether it's foreign aid that Africa needs most for economic development.
A standard myth is there's a "vicious cycle of poverty" that makes economic development virtually impossible for the world's poor nations. This myth holds that poor countries are poor because income is so low that savings cannot be generated to provide the kind of capital accumulation necessary for economic growth. Thus, it is alleged, the only way out of perpetual poverty is foreign aid.
Let's examine the "vicious cycle of poverty" myth and whether foreign aid is a necessary ingredient for economic development. The U.S., Britain, France, Canada and most other countries were once poor. Andrew Bernstein of the Ayn Rand Institute wrote in an article titled "Capitalism Is the Cure for Africa's Problems" that pre-industrial Europe was vastly poorer than contemporary Africa.
A relatively well-off country, like France, experienced several famines between the 15th and 18th centuries as well as plagues and diseases that sometimes killed hundreds of thousands. In France, life expectancy was 20 years, in Ireland it was 19 years, and in early 18th-century London, more than 74 percent of the children died before reaching age 5.
Beginning in the late 18th century, there was a dramatic economic turnabout in Europe. How in the world did these once poor and backward countries break the "vicious cycle of poverty" and become wealthy, without what today's development experts say is absolutely necessary for economic growth -- foreign aid handouts, World Bank and International Monetary Fund loans, and billions of dollars of debt forgiveness?
The answer is simple: Capitalism started taking root in Europe.
Capitalism is an economic system where there's peaceable, voluntary exchange. Government protects private property rights held in goods and services. There's rule of law and minimal government regulation and control of the economy.
Check out the Washington, D.C.-based Heritage Foundation's "Index of Economic Freedom." Heading its list of countries with the freest economic systems are: Hong Kong, Singapore, Luxembourg, Estonia, Ireland and New Zealand. Bringing up the rear as the countries with little or no economic liberty are: North Korea, Zimbabwe, Angola, Burundi and the Congo.
It's not rocket science to conclude that economic liberty and the wealth of a nation and its peoples go together, not to mention greater human rights guarantees.
Some economic development "experts" attribute Africa's troubles to its history of colonialism. That's nonsense, because some of the world's richest countries are former colonies, such as the U.S., Canada, Hong Kong and Australia. In fact, many of Africa's sub-Saharan countries are poorer now than when they were colonies, and their people suffer greater human rights degradations, such as the mass genocide the continent has witnessed.
One unappreciated tragedy that attests to the wasted talents of its peoples is that Africans tend to do well all around the world except in Africa. This is seen by the large number of prosperous, professional and skilled African families throughout Europe and the United States. Back home, these same people would be hamstrung by their corrupt governments.
The worst thing that can be done is to give more foreign aid to African nations. Foreign aid goes from government to government. Foreign aid allows Africa's corrupt regimes to buy military equipment, pay off cronies and continue to oppress their people. It also provides resources for its leaders to set up "retirement" accounts in Swiss banks.
What Africa needs, foreign aid cannot deliver, and that's elimination of dictators and socialist regimes, establishment of political and economic freedom, rule of law and respect for individual rights. Until that happens, despite billions of dollars of foreign aid, Africa will remain a basket case.
About the Author:Born in Philadelphia in 1936, Walter E. Williams holds a bachelor's degree in economics from California State University (1965) and a master's degree (1967) and doctorate (1972) in economics from the University of California at Los Angeles.
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ONITSHA NEEDS ENVIRONMENTAL FACELIFT
Onitsha the commercial Mecca of Anambra State, the city that gave us Main Market, the largest market in Africa has been neglected so much that it desperately cries for a facelift. Some of the roads are so deteriorated that they pose both traffic and health hazard to the urban habitants. The quality of life has been and will continue to depreciate if the trend is left unchecked. The multiplicity of the pot-holes unfortunately has become pool of dirty waters and raw sewage. With these facts, the pot-holes teem with mosquitoes. The devastating effect of mosquitoes and its malarial consequences cannot be overemphasis within this context. Wastes and refuses that litter all the nooks and corners of Onitsha especially streets and roads contribute to this menace. There is no adequate waste management program for the collection and disposal of refuse. The ubiquitous trashes are health peril to the urban dwellers; the reckless abandon of rubbish has however, diminished and disfigured the aesthetic configuration of the city.
With the coming of the new governor Mr. Peter Obi, the local and state governments could liaise to formulate sound environmental course of actions and principles that will revive Onitsha. A solid waste service and prudent management must be instituted for the collection, disposal and recycling of discarded materials in a manner that will be safe, efficient, environmentally sound and cost-effective. A blueprint strategy of comprehensive refuse disposal to the landfill in Onitsha will spell a new beginning for the city and its inhabitants of nearly 1 million. This will create a neat ambience that will automatically elevate the quality of life. By improving the environmental quality of Onitsha, it will definitely spur rapid economic development. This is possible because it will attract new businesses and capitalists - who will be willing to invest in the city and as well, spend some time there. Not only that the improvement will facilitate business activities; it will also help to position Onitsha as a Mecca of business and tourism in Nigeria.
Environmental deterioration in Onitsha does not augur well for the citizens of Anambra State in particular and Nigeria in general, in view of the sociopolitical and economic symbolism Onitsha stands for. These have significantly diminished against the status quo -due to neglect and in-action. A city that had produced great legal and political bigwigs like Dr. Nnamdi Azikiwe and others, who were in vanguard of Nigeria’s independence struggle and actualization, cannot be abandoned to rust and decay. The task of rebuilding, restoring and refurbishing a new city does not rest entirely on finance, though it is important, the primary and key condiment is the political will. The resolve to combat the detrimental state is and must be rooted on the political will and commitment.
All stakeholders –politicians, government executives even public companies (as a result of their social responsibilities) must seize the opportunity at this moment to act on the best interest of the masses. Initiating a master plan and mustering the will-power to move forward must be the order of the day. The electorates have rendered power or mandate to the leaders through their elections into offices for an all-encompassing performance. With the exception of God, no other is more sacred than the votes of the electorates. The Governor and Chairmen of the local governments need no extra mandate than the power already derived from the people as reinforced in the constitution. Leadership must therefore, take the bull by its horns, by nipping this menace in the bud.
The major environmental defect is the refuse abandonment, which must be tackled to accomplish the lofty task of creating and cultivating sustainable strategies for a cleaner environment in Onitsha. The initial strategy is to constitute a task force under the auspices of the ministry of works, which will then come up with the comprehensive plans to formulate the methodology and implementation of refuse disposal. The committee will formulate environmental policies and ethics that will delineate the responsibilities of the private citizens and government officials in sustainable clean environment.
"Trash receptacles will be strategically placed to ensure that the public is given ample opportunity to dispose of litter. Messages will be stenciled on the trash barrels to enlighten the public on how to properly dispose of litter. This will help to ensure that trash is removed before runoff; wind or birds move it to the drainage channel."
Trash containers are to be emptied at a minimum of once a week. All collected trash and debris will to be hauled to an approved landfill by licensed solid waste disposal vehicles. Vehicles used to haul the debris shall have a sealed bottom to prevent leaks or seepage, and the trash materials shall be covered while the load is in transit. All personnel will be instructed the correct procedure for trash disposal."
External monitors and strategists in the form of experts, consultants and managers are needed to work with government. Government alone cannot segregate itself from the private enterprises towards the planning and implementation of sustainable clean environment. In the free market economy, the presence of private industries does enable fast delivery of services and portends well for probity, transparency and it deepens capitalistic democracy.
I personally call on the Governor: His Excellency Peter Obi to use the power of his persuasive office to show leadership and to empower the Onitsha residents by cleaning Onitsha and return her to her past splendor.
---- Emeka Ted Chiakwelu
WHY DEBT CANCELLATION FOR AFRICA?
In this continent, the four horsemen of the apocalypse - conquest, conflict, famine and death are no mere visitors. They have taken up residence.
-Martin Wolf (Financial Times)
In view of mismanagement of Africa’s resources and funds; even the looting of her treasury by some of her leaders, it can be said thereof, that corruption has attained an alarming proportion in the continent. In fact, it has eroded the system. It may therefore, sound incredible and laughable when one suggests that time has come for a cancellation or rather a major debt relief to Africa’s enormous foreign debt.
The cost of the foreign debt payments to the African citizens is not a child’s play. The funds that would have been used to upgrade the health care system and quality of education were diverted to debt servicing and payments. African children are paying the price for debt servicing.
These debts are owed to industrialized nations. African governments have been unable to meet up with their financial obligations and have resorted to continuous rescheduling of the loan payments as regulated by International Financial Institutions and their agents, such as IMF, London Club, Paris club, World Bank and others.
As years progress, so also the burden of the debt widens. However, all the stakeholders fully take cognizance of the fact that these loans seem impossible to be liquidated with ease.
So many figures have been thrown around, but the most recent data stated that Africa’s foreign debt currently stood at $350 billions. This is outrageous, a gigantic yoke!
To buttress the level of poverty in Africa, out of the 41 nations identified as Heavily Indebted Poor Countries (HIPC) according to World Bank, 33 of those nations are from Africa.
Africa has nothing to show for such an enormous debt but weak and dilapidated infrastructures with a very devastating low human development index.
Below are the intrinsic reasons why AFRIPOL subscribe to debt cancellation for Africa, which must go forward without much ado or conundrum:
1. Mutual Benefit: Africa and the West can share an affirmative interdependence based on mutual respect and benefit. This can only be possible when the burden of debt is released from African’s shoulder. When Africa is stable, this spells well for democracy and capitalism. This will in return stimulate trade.
2. Global Stability: A healthy and wealthy Africa will contribute to the world stability. Moreover, Africa will have the adequate resources to make impact in resolving conflicts within her continent. This is good for Africa in particular and the world in general.
3. Social Security and Freedom: Actually, the brunt of the debt payments mostly rests on children and women and not on African leaders. Those who absorb the agonizing pains are the poor masses. For them, there is no job; no food; no shelter. The leaders hide under the guise of being incapacitated because of foreign debt payment obligations, to shy away from their responsibilities and they allow the masses to wallow in abject poverty while they themselves live flamboyantly and affluently. Therefore the debt cancellation at least, if judiciously managed will affect the poor positively, when such funds are channeled to areas that will make life worth living.
4. Non Restrictions on Economic Policies: The truth is that as a result of these foreign debts, the West directly or indirectly dictates Africa’s economic policies. Africa’s economy is import driven. They rely heavily on importation. It is not always economic policies that suit African that matter but those that are favored by the foreign creditors. That is why their policies are tailored to suit foreign debt demands. If debt relief is granted, Africa can now employ policies that will be considered unique to her economic goals.
5. A Clean Slate /Economic Freedom: What Africa desperately needs now is a fresh beginning. For the fact that the debts are cancelled, it will give Africa hope and a sense of belonging. Africa will now put up confidence to bargain for what is good for the continent in the comity of nations without ego problem of being indebted.
6. Africa’s History: Yes, it is important too. This is not just to be visceral but to be realistic to Africa and again for the sake of history, Africa has suffered untold hardship via slavery and colonialism. This time around, reasonable people can conclude that Africa needs a push.
7. Principal Loan Accomplishment: The actual principal borrowed had been paid. The problem now is the accumulated interest over the years and it is still going up. It is point clear now that Africa has demonstrated concerted commitment to her financial obligations.
8. State of Health Care in Africa: Against all odds, a case must be made for a sound healthcare in Africa. There is no fund to implement Africa Union agenda on health. The cost is beyond the resources and funds at hand. AIDS, Malaria, Polio, Ebola are confronting Africa. This continent needs the funds to aggressively fight back these killer diseases.
9. Promotion of Democracy: A political paradigm based on fairness and equality with broad-based representatives known as Democracy cannot survive on an empty stomach. Democratic system of government is quite expensive to operate. For democracy to have a true light of the day in Africa, the needed resources must be available.
10. Reinforcement of Economic Capitalism: For Adam Smith’s concept of free enterprise to take hold in Africa, Africans must have good impression of capitalism. These foreign loans servicing and payments do not augur well for capitalism and laissez faire before the suffering masses of Africa. Africa’s weak and dilapidated infrastructures must be developed to international standard. This will enable industrialization and investments to be realized in the continent.
AFRICA AND FOREIGN DEBT
The progress of the enormous debts which at present oppress, and will in the long-run probably ruin all the great nations ...
-Adam Smith
A linguistics sociologist once defined a disaster as something one can smell, touch and feel. African foreign debt is an enormous disaster; its ugly consequences litter everywhere even along the roadsides. Yes, a great disaster indeed! You can smell it, touch it and feel it in Africa’s heartland.
Africa received $540 billion loans between 1970-2002, she paid back $550 billion (i.e. principal with interest inclusive) and she still owned $295 billion as at the end of 2002.
Africa from what we can deduce, has overtly tied herself to the apron string of foreign debt payments. Unfortunately these payments are endless. The borrowed principal has already been paid, yet the interest continues to accrue at a whopping rate. With such a trend, it is erroneous to believe that the continuous rescheduling of the debt payment by Paris club or any other allied group could proffer lasting solution but fire brigade approach. This will only succeed in delaying the great disaster that is lurking behind.
Already the disaster has arrived! The effects of the disaster have commenced amplifying and will continue to permeate to all facets of life in Africa. Without mincing words, the people that are hardly hit by the brunt of the debt services are the poor and the children. Majorities of Africans fall into these categories. It is pathetic to note that qualitative education, good health care, affordable shelter, clean and drinkable water supply, sewage system and reliable power supply have all eluded these poor people. Their government in question has failed in providing basic amenities that will affect them positively, all in the name of servicing foreign financial obligations.
Enough is enough. This abuse and torture meted out on Africa as a result of these foreign debts have diminishing impact on the well being of the continent. Without deferment or holding back, somehow, something must be done to bring this apparent disaster to an end. A sensible and constructive compromise must be reached with the western creditors and international bankers.
It is truism to acknowledge that self inflicted torture rooted in ignorance, naivety and lack of intellectual insight on the part of the greedy and corrupt African leaders, who took out the loans in the first place, created such an agonizing situation.
The western bankers and financial institutions did not twist round African leaders with their little fingers in order to compel them to borrow to their demise. It was their choice to borrow, most times, they were propelled by avaricious inclination and in the process they stole from their constituencies without minding the ensuing retardation it will have on the economy in particular and populace in general. Corruption is and has been the bane of development in Africa.
Most of these debts were accumulated during the cold war. During the era of bipolar world, African leaders were granted loans at the height of cold war for political reasons and these had nothing to do with sound financial decisions. The funds were wasted on some white elephant projects or rather siphoned to some secret bank accounts that were beyond spying eyes of an average African. Most of these loans were acquired without the consent of the citizenry, ironically now; they are the ones absorbing the greatest burden of the loan services.
In Congo, the maximum President, late Mobutu, took out so many loans that were indirectly deposited into his France bank accounts.
Nigeria was granted loans particularly because of her oil wealth, unfortunately some of those loans were more or less not put to good use that would alleviate the sufferings of her people by creating employment opportunities and enabling environment for a sustainable industrial growth. The vast majority of Africans were aware of their leaders’ misadventures but were helpless and as well powerless to compel them otherwise. Even Apartheid South Africa borrowed money without the consent of the black majority. Today who is paying the price? There is this clarion call to African citizens to pay back the loans with the shocking interest rate that was acquired without their blessing. Though this may be inimical to their psyche, the Black South Africans have to pay back the loans of apartheid era. The Congolese have to pay back loans made out to their dictator.
African governments at the expense of their peoples’ livelihood carry out debt payments and in some countries, a great chunk of their GDP is devoted to these loans services. Those funds would have been ordinarily invested in healthcare and education, the two core areas that needed immediate attention in Africa. The money owned to the industrialized nations have so much quadrupled, due to the malleable interest rate. It is beyond anybody’s wildest imagination on how these debts will ultimately be repaid in this lifetime. It will also be inconceivable and fallacy to believe that they can be repaid in this our generation or the one to come, if nothing is urgently done.
By Stevie C. Chiakwelu
CEO of Stebil Computers Ltd & Senior Fellow at AFRIPOL.
Press Release No. 05/183
August 3, 2005
Statement by the IMF Managing Director Following Executive Board Discussion on the G-8 Proposal for Further Debt Relief
Mr. Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), issued the following statement after today's meeting of the Executive Board to discuss the proposal for HIPC debt cancellation agreed by the G-8 Heads of State and Government at the Gleneagles Summit on July 8, 2005:
"Executive Directors reiterated their commitment to further debt relief by the IMF as part of the international support for low-income countries, including its poorest and most heavily indebted members. They emphasized that the G-8 proposal could go a long way to complete the process of debt relief for these countries by providing additional balance of payments support from the Fund, thereby freeing up resources to help them reach the Millennium Development Goals.
"Directors noted that to provide effective benefits to its recipients, debt relief must be designed and implemented carefully. There was a clear consensus among Directors on the importance of preserving: (i) the Fund's ability to provide concessional financial support to its low-income members; and (ii) the principle of uniformity of treatment, to ensure that all low-income members are treated by the Fund in an even-handed manner. Staff will work on potential modalities to implement the proposal as a basis for further discussions by the Executive Board before the Annual Meetings. Directors reiterated that the Fund will continue to operate under existing policies and procedures until decisions to change or modify these policies are taken by the required majorities.
"The meeting followed the Executive Board's initial formal exchange of views on the proposal that took place on June 22 and provided an opportunity for Executive Directors to explore in more detail the financial, legal, and policy implications of the proposal for the Fund. It also complemented the continuing discussion in the Executive Board on ways to enhance the role of the Fund in low-income countries, including through: (i) the establishment of a nonfinancial mechanism to support policies in low-income countries; (ii) financing the continuation of the Poverty Reduction and Growth Facility; and (iii) the establishment of a facility to help countries facing exogenous shocks."
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END OF FOOD SHORTAGE AND SEARCHING FOR A POSITIVE IMAGE FOR AFRICA:
NIGERIA AND SOUTH AFRICA MUST LEAD.
Nigeria and South Africa are the most outstanding nations in Africa. Without any doubt, they will become the new face of Africa as they take their respective seats in the proposed UN expansion of permanent seats. The two are the most qualify in Africa for permanent seats at UN.
Nigeria an economic powerhouse is the most populous country and South Africa the most technological advance country in Africa.
These two countries are contributing a lot for the realization of the African renaissance. Credit must be given to President Olusegun Obasanjo of Nigeria and President Thabo Mbeki of South Africa for their effective leadership in Africa. From finding solutions and peacemaking in war torn countries to formulating conflict resolutions agenda. These are capable and problem solving leaders. Their leadership are truly needed and appreciated in this continent of unending problems. Nigeria and South Africa must expand their spheres of responsibilities to connote the solutions of ending food shortage and starvation in Africa. This will salvage the image of Africa and alleviate the spirit of Africans as they continue to take their place under the sun. This is a complex and multi tasks endeavor that requires resources, logistic and strategic planning. But African problems must not be continue to be out source to do nothing international community.
These two nations - Nigeria and South Africa in concert with African union can setup a panel or a body that will be empowered to come up with resources and strategy that will identify the genesis and elimination of starvation anywhere in Africa. Nigeria and South Africa are equal to the task. African image must be rescued with African solution and initiative.
Famine is distorting the face of Africa with perilous effect. It must not be allowed to take up permanent residence in any country or anywhere in Africa. Drought, desert encroachment and pest invasion are primary causes of famine and must be addressed. These are tasks worth undertaking. Let’s act for sake of our children and posterity. Yesterday it was Ethiopia, today is Niger and the next is to institute a road map to the end of starvation in Africa. Yes it is doable. All that is needed is a collective will power and effective leadership. Nigeria and South Africa can provide the needed leadership and Know-how. Federal Government of Nigeria must be applauded for approving the release of over 10,000 Tonnes of Grains for food crisis in Niger and Chad. COMMENTARY BY AFRIPOL
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AFRICA : ON THE ROAD TO ECONOMIC SERFDOM
By Emeka Chiakwelu, Director of Afripol Organization
In the negative part of Hayek’s thesis there is a great deal of truth. It cannot be said too often collectivism is not inherently democratic, but on the contrary, gives to a tyrannical minority such powers as Spanish Inquisitors never dream of
-George Orwell on F. Hayek’s book - ON THE ROAD TO SERFDOM
Friedrich Von Hayek, one of the greatest libertarian economists of 20th century, wrote the book - ON THE ROAD TO SERFDOM, which emphasized an economic liberation principle based on free market and abandonment of economic collectivism. Hayek argued that centralized government and economic planning were inherent threats to liberty. Hayek did not have Africa on his mind when the book was written . But he must have as well had Africa in his thought and motivation, for he is an economic prophet Africa desperately needs at this juncture.
Africa having finally begun to dismantle the shackles of colonialism and legacy of slavery; have already commenced to imbibe the poison of serfdom probably without grasping the ramification. And this serfdom is a dogma of collectivism and central planning, devoid of market forces and free enterprise.
Africa is at perilous stalemate, for the time has come for Africa to make the big decision. To yield to democratic capitalism and rule of law. Or to wallow in the sea of outdated economic paradigm of centralization and collectivism.
ON THE ROAD TO SERFDOM, a classic work of Hayek in political economy, he warned us about the danger of state control over the means of production. A state with an economic model rooted in central planning is doomed to become a totalitarian state. Where tyranny of the people becomes the order of the day, human decency is destroyed and human creativity is supplanted and stifled.
Collectivism and central economic planning are pandemic in African countries, the affinity for this economic paradigm and organization have its anatomy on European colonialism in Africa. The so-called European panglossian view of economic outlook was attractive to African countries. The consequence is a disaster in economic productivity and economic order.
West African countries, Nigeria and Ghana for example inherited their fabian socialism disposition from her colonial Britain. During the era of colonialism in Nigeria, the destination of Nigerian students for higher education was Britain and the impact of the sociology of the status quo on the young minds were inevitable. When they returned back, their re-engineered minds were felt heavily on the methodology of their governance and management. They bought the ideology of collectivism and central planning.
The ambition of socialism to make a new man and to engineer an economic model that is absolutely fair is not feasible and not sustainable, for it is antithesis of mankind experience and make up. Human beings are born to be free and adventurous, and any process, system or mechanism that seeks to limit our spontaneity will have a perennial effect on us. The peril of central planning is rooted in its elitist functionality, for the common man is not found fit to pursue his life ambition without the big brother regulating all aspects of his economic life.
When the state is in control over the means of production, the forces of market disappeared. The law of supply and demand are no more appreciated nor given a chance to operate. The market is being tinkered from the top. The laissez faire of the market economy is muted and private enterprise is literally abolished, competition the soul of market is destroyed. Monopoly will become dominant order when competition has been demolished. Then , price control will be introduce and ration of goods and services will subsequently follow put.
One of the greatest evils of collectivism, is the destruction of human potentials, to dream big and to be ambitious. Once creativity is destroyed and private enterprise over regulated with taxation and decrees, the impact on the GDP and lower productivity becomes a reality. When the market is not given a chance to function, the economy suffers because it is not operating at its optimum capacity.
Central planning of the economy has its political implication, for once one controls the economic life of a state, one must also control the political and sociological aspect of the nation. In the words of Ludwig Von Mises, "In exclusively controlling all the factors of production, the socialist regime controls also every individual's whole life."
This is where dictatorship of people comes in and the tyranny of the massed will be deepened. When choice as a word and a economic functioning tool cease to exist in a society, then a totalitarian system of governance will easily find a suitable home in that given society.
So what do all these mean for AFRICA ?
At interim it begins to appear that some African countries are moving towards market economy and democracy. But the configuration and destination are still foggy and dim. The journey towards democratic capitalism must be a deliberate, diligent, compassing and judicious process.
The fundamental of a economy must be sound. Fiscal and monetary policies must be prudently managed. Free enterprise and ownership economy must be encouraged and economic paternalism shunned. Most of all, states will stir away from means of production and inhibits corruption. A legalistic framework must be instituted because laws of economics and economy must be implemented.
Competition which is the essence and core of free market economy must be encouraged by breaking the government’s jar of monopoly. The re-engineering of the market is necessary if this free market paradigm will have a chance of surviving. The white elephant projects, where public funds are wasted without any return to the taxpayers must be terminated.
In the name of incubation of infant industries, great wall of protectionism were unnecessarily erected and subsidies were thrown on the feet of inefficient industries. One cannot continue to appease this monster of dormancy at the expense of taxpayers. At a point the so-called infant industries must mature and graduate to compete without asking for the big brother’s aid. The over bloated industries must be allowed to find their course in the economy. If they cannot make it, so be it! Without not being loquacious about capitalism nor dogmatic, laissez faire is probably the way which is crystal clear for Africa to succeed in 21st century. Africa can be laboratory of true capitalism with developed and efficient economies.
