VOL. NO: 19    DATE:
 
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AFRICAN ECHO NEWS

FOREIGN AID TO AFRICA WILL NOT MAKE POVERTY HISTORY- Njualem Columbus

No to begging! No to foreign aid! We want fair trade! These are echoes raised by African leaders and experts especially at the most recent African union summit in Libya.

Perhaps these momentums are likely to set a different tone on the G8 summit in Scotland, which adopted a $50 billion aid increase for Africa. Tony Blair had vigorously lobbied for concerted action from his G8 colleagues to increase Africa's share of international trade and debt relief but much response was paid to aid than trade.

Present paradoxes about African's poverty have seemingly attracted a multiplicity of varied theory and political hypocrisy especially from the west. The cornerstones of these misconception lies with the impressions propagated by some leaders and western media that AFRICA is plaque with conflicts, disease, corruption and misery and only needs aid to survive, without which there will be a catastrophe. At the heart of this discomfort felt by many African professionals is the belief that the language used by some European leaders reinforces the stereotypes that Africans are helpless and can be rescued only by giving more money to their governments. This is absolutely wrong and misguided. What many African wants is not aid but the opportunity to invest and trade under fairer international rules of commerce with cleaner and accountable African governments.

For instance protective trade policies practiced by developed countries, subsidies and high tax charges for Africa products in the world market render them less competitive and the continent lose billions of pounds a year from this. The G8 well understand this dilemma. The proportion of this lost is more than what most Less Develop Countries spend each year in debts servicing. Zambia for instance spend a significant amount of its GDP in foreign debt payment, far less than what the government invest in providing vital services to its people. Cameroon, which is the largest producer of banana in Africa, cannot have access to world market due to unfair trade policies. And Cocoa farmers in Ghana and Ivory Coast, reckoned to be one of the largest in the world will ever remain poor as long as these commodities continue to face restrictions into the world market.

International trade restrictions have inflicted serious blow to African economies and greatly hinder their ability to develop. African economist have so far calculated that trade barriers is the most damaging policy that has continue to ravage African economies 70-80% of which rely on agricultural exports as a major source of foreign earnings.  

Unfortunately Attempts by The world trade organisation to harmonised trade operations in Cancun have been halted leaving African delegates helpless especially when they discovered that such collapses meant so much financial turmoil to the African economies. According to a British expert sir Rigby Jones the bulwark of this hypocrisy is the present row over "subsidies" and "CAP" between U.S.A. and E.U

A lot of AFRICANS have told Blair we don't want to be "saved" but we want "trade", a senior African diplomat in London said. Many African now ask why British plan is not aimed primary at encouraging local investment and discouraging capital flights rather than focusing on aid. This is because unless a firm and accountable system of financial management is put in place any financial aid may be misprioritised or merely given to enrich some personalities in African governments.

International economist and diplomats have often argue that debts relief would not have been necessary if there were fair terms of trade with African states.

This is to say how many times will industrialised nations keep offering debts relief to African states at the same time depriving them of every chance to boost their own economy and be self dependent. For instance Africa share of world trade felt from 6% in the 80s to 2% in 2002.A continent of about 800 million people(12% of the world population) holding just 2% of trade. It has been estimated that if African share of global trade in increased just by 3%, they will benefit about 150 billion annually which is 4 times what THE G8 is offering as debt relief.  Conversely much economic benefit can be enhanced if African exporters are allowed to take advantage of the European markets. According economic experts a sharp increase in aid could even hurt the ability of African to attract the investment needed to boost economic growth. 

For instance the currencies of Tanzania, Mozambique and Ghana have strengthened a lot due to the large amount of aid they have received. "It makes their economies less effective and appealing for foreign investors" said a Standard Bank expert Robert Bunyi .Most African experts have also pointed out that Africa does not lack wealth but that leaders long coddled by the west have siphoned off, much of it. The same may hold true if aid is sent without adequate check. A study by the economist estimates that 187 billion left Africa between 1970 and 1996.The Nigeria concord newspaper estimated that Nigerians held about $32 billion in foreign bank accounts, a figure then equivalent to the country's foreign debt.

Some find Blair's push however well intentioned, comfortably reminiscent of utterances about the alleged backwardness of Africa by European missionaries and explorers of about 160 years ago, reflecting deep wells of "prejudice".

According to president Obassanjo of Nigeria, for Africa" to fight poverty, it will require not only the debt forgiveness for which we have been vigorously campaigning, but also a massive inflow of finance through repatriation of corruption -tainted funds in foreign banks, the fulfilment of commitments made by our development partners, and our own political will to undertake our own part for our upliftment". Begging will not make poverty history in Africa. Instead it creates a greater gap between great ones and small ones.

In essence poverty in African cannot be eradicated by organising several life8 concerts and raising awareness about misery in Africa. Concrete action and remedies have to go beyond canvassing aid, but removing barriers especially economic setbacks that continue to erodes the economy of most African states since independence.

These new ideological thinking as expressed by African leaders and educated Elites, have to be backed by action if the G8 is committed in addressing the plights of Africa and make poverty history.

 

 

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