Opinion

The Great Debate

Africa and the global economic crisis

- Jorge Maia is head of Research and Information for Industrial Development Corporation of South Africa, established in 1940 to promote economic growth and industrial development. The opinions expressed are his own –

Serious shockwaves are hitting Africa’s shores as the global economic crisis unfolds.

The extent and depth of the damage is extremely difficult to assess or project, but it is clear that the pattern of financial flows associated with investment, lending and trading activity has been dramatically altered, with detrimental economic and social implications for the continent at large. The adverse impact has been gradually spreading from a regional perspective – a serious setback to Africa’s recent growth performance, which had averaged 6 percent a year from 2003 to 2008.

The effects will vary widely, depending on each country’s integration within the global financial system, its dependency on exports and tourism receipts, official development assistance and remittances from African citizens working overseas, among other factors.

Access to trade credit lines used to finance imports and investments is under threat due to the global credit crunch, while portfolio flows have been reversed and remain weak due to institutional deleveraging, pessimistic investor sentiment or extreme risk aversion.

from The Great Debate UK:

Toll of malaria high for African women

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-- Ray Chambers is a philanthropist and humanitarian who has directed most of his efforts towards children. In 2008, the U.N. Secretary-General appointed him as his first Special Envoy for Malaria. The views expressed are his own. --

Malaria infects one quarter of a billion people each year. Nearly one million of those afflicted die, taxing overburdened health infrastructures and decreasing productivity in Africa, where 90 percent of cases occur.

In some countries on the continent, 60 percent of all outpatient visits are malaria related, with one quarter of worker absenteeism due to the disease. Taking all lost time and productivity into consideration, malaria costs Africa more than $30 billion annually.

from Africa News blog:

Time to stop aid for Africa? An argument against

Earlier this month, Zambian economist Dambisa Moyo argued that Africa needs Western countries to cut long term aid that has brought dependency, distorted economies and fuelled bureaucracy and corruption. The comments on the blog posting suggested that many readers agreed. In a response, Savio Carvalho, Uganda country director for aid agency Oxfam GB, says that aid can help the continent escape poverty - if done in the right way:

In early January, I travelled to war-ravaged northern Uganda to a dusty village in Pobura and Kal parish in Kitgum District. We were there to see the completion of a 16km dirt road constructed by the community with support from Oxfam under an EU-funded programme.

The road is bringing benefits in the form of access to markets, education and health care. Some parents say their daughters feel safer walking to school on the road instead of through the bushes. Many families have used the wages earned from construction work to pay for school fees and medical treatment. This is the impact of aid.

Somalia’s slim hope

By Daniela Kroslak, Deputy Africa Program Director, and Andrew Stroehlein, Communications Director, of the International Crisis Group, Any views expressed are their own.

ICGPirates, Islamists, refugees, anarchy, civil war — not much good news has come out of Somalia in the last couple of decades. With warlord replacing warlord over the years and transitional governments constantly hovering between extremely weak and non-existent on the ground, the temptation will be to view this week’s election of a new Somali president with an eye-rolling, “so what?”

Yet there is a chance, albeit a slim one, that this moment will mark the start of some small progress for the shattered country. That is, if the international community plays the next few months very carefully and does not let ideology trump pragmatism.

from Africa News blog:

Time to stop aid for Africa?

Far from being all bad news for Africa, the global financial crisis is a chance to break a dependence on development aid that has kept it in poverty, argues Zambian economist Dambisa Moyo, who has just published a new book “Dead Aid”.

Moyo’s book, her first, comes out at a time when Western campaigners, financial institutions and some African governments have been warning of the danger posed to Africa by the crisis and calling for more money from developed countries as a result. The former World Bank and Goldman Sachs economist spoke to Reuters in London.

“I’m not saying its going to be easy, I’m just saying that there is a real opportunity for policymakers to focus on coming up with more innovative ways of financing economic development. In a way the crisis actually provides the African governments with the situation where they cannot rely on aid budgets coming through from the West.”

from Global News Journal:

What should the world do about Somalia?

Islamist militants imposing a strict form of Islamic law are knocking on the doors of Somalia's capital, the country's president fears his government could collapse -- and now pirates have seized a super-tanker laden with crude oil heading to the United States from Saudi Arabia.

Chaos, conflict and humanitarian crises in Somalia are hardly new. It's a poor, dry nation where a million people live as refugees and 10,000 civilians have been killed in the Islamist-led insurgency of the last two years. A fledgling peace process looks fragile. Any hopes an international peacekeeping force will soon come to the rescue of a country that has become the epitome of anarchic violence are optimistic, at best.

But besides causing instability in the Horn of Africa, the turmoil onshore is spilling into the busy waters of the Gulf of Aden. The European Union and NATO have beefed up patrols of this key trade route linking Asia to Europe via the Suez Canal as more and more ships fall prey to piracy. Attacks off the coast of east Africa also threaten vital food aid deliveries to Somalia.

from Africa News blog:

How serious is Sudan’s Darfur ceasefire?

Sudan's President Omar Hassan al-Bashir was in a jubilant mood when he announced to crowds of supporters that he was declaring a ceasefire in Darfur.

From his body language, you might have thought he had already ended the crisis and achieved his goal of avoiding a possible indictment by the International Criminal Court for alleged war crimes in Darfur.

In the build-up to his speech, supporters surged to the front of the crowd waving sticks and punching the air with their fists to show their support for the army officer who came to power in Sudan in a coup in 1989. There was almost a party atmosphere.

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