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G20. How did Africa do?

April 3, 2009

Before the G20 meeting, there was a lot of talk inside and outside Africa about making sure the continent did not get left out while the world’s richest and most powerful set out plans to save their own economies.******So how did Africa fare?******On the face of things, perhaps not too badly.******“Our global plan for recovery must have at its heart the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too,” the communique says in paragraph 3.******In concrete terms:******• Resources available to the IMF will be trebled to $750 billion.***•  There will be support for a new allocation of Special Drawing Rights of $250 billion – something that could help poor countries***• There will be support for $100 billion more lending by Multilateral Development Banks (those include the World Bank Group and the African Development Bank)***• There will be $250 billion support for trade finance.***• Use will be made of resources from IMF gold sales “for concessional finance for the poorest countries”.***• Global financial institutions will be strengthened and reformed, ensuring that emerging and developing economies, including the poorest, must have greater voice and representation.”******The point on the gold sales was something for which Africa, represented at the summit by Ethiopian Prime Minister Meles Zenawi, had made a particular push.******But not all appeared so impressed. In East Africa based Business Daily, Allan Odhiambo’s piece was headlined “Africa thrown to back burner at G20 meeting.”******According to Nigeria’s ThisDay newspaper, President Umaru Yar’Adua’s main lament was the fact that Africa’s most populous country was not there (South Africa, with the continent’s biggest economy, was represented).******South Africa’s President Kgalema Motlanthe was quoted as saying he was “quite pleased” with the results of the summit.******How well do you think the G20 did for Africa? Will Africa really have a bigger say over the global financial system in future? Will that help?

Comments

The new economic reality is every country for itself, says the Stock Research Portal: “I have been saying on this blog for some time that countries will invoke ‘protectionist measures’ in circumstances where they believe they must do that to protect the well-being of their citizens. It will surprise me if things turn out otherwise.”Via Stock Research Portal

 

Power belongs to those who have money, as they plot the design and manage it. Africa has no money and can only beg, wait and see what the world superpowers left overs does not necessarily need. Up to present, African economy has drastically not taken off for lack of diversity, the lack of research and development, the lack of investment in public infrastructures, the lack of political leadership and will, the lack of investment in education and scientific research and the mismanagement of public finance. Africa remain in the position of a big begger while there is no need for that if brains were put to work in the effort to produce what we lazily expect from the West and the East. Africa resembles to a man who asks from another man to marry him a wife, to make her pregnant and to provide the money for the daily needs of the family when he can do it himself. Africa had nothing from the G20 summit, except promises as usual.

 

What Afica needs is not just “a say”. But rather a “do sth”We are fed up with words without concrete actions!!!There is a real need to see change in ways of doing things.But africans should first learn how to use the ressources they have already.

Posted by Patrick | Report as abusive
 

When the going gets tough, the tough get going!The West and the developing countries have the democratic institutions and systems that have allowed them to address the economic crisis squarely and quickly. Africa has no such system; Africa’s economy continues to operate in the same chaotic and corrupt ways. The world economic crisis has turned Africa’s crippled aid dependent economy into life threatening complications as the aid is certain to dry up. The donor are having to cut back on their own spending and are demanding greater efficient use of resources then ever before within their own countries. They will certainly want to see an end to Africa’s history corruption and waste before they extend any new aid to the continent.Africa has had countless warning in the past to do end corruption and waste and has done nothing. The day of reckoning is now upon us; corrupt and wasteful African countries will find it increasingly difficult to get any financial assistance from now on!The G20 have increased the funds available to institutions like the Africa Development Bank but African leaders will soon realise the Bank will demand water tight assurance that the money will be used prudently. The days of free-money are gone!

Posted by Wilbert Mukori | Report as abusive
 

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