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Economic turbulence jeopardizing peace and stability in Africa
African leaders have appealed to the world’s richest countries to invest in the continent to help cushion the devastating effects the economic crisis is having on the region. With developed countries prioritising their own national woes and with few living up to commitments made by the G20 in 2005 to increase aid, leaders are warning that development progress and stability achieved in Africa over the past several years is being undermined, and in the worst of cases, risks leading to conflict. Leaders are arguing that the problems caused by economic turbulence are deeper than originally anticipated. To help offset the difficulties and prevent conflict, Africa is applying pressure on international financial institutions, such as the World Bank, to increase flexibility and ease the availability of funds. In addition, they intend to argue at the G20 London Summit in April that the International Monetary Fund (IMF) should be allowed to sell some of its gold reserves to help support Africa, which could raise between USD 5 billion and USD 15 billion, helping to counterbalance declining investment and trade.
African leaders debate way forward
Africa can do more to recognise its own growth potential and strengthen its resilience, argued participants at a two-day conference on Africa’s economy held in Dar es Salaam, Tanzania. Throughout the “Changes” conference, leaders engaged in a series of panel discussions covering a wide range of topics from slumping commodity prices to building stronger partnerships with the IMF. Participants agreed that while donors must live up to their aid commitments and the international community needs a co-ordinated global response, Africa must also implement strategies that will enable the continent to create a way out of the crisis, invest in their own capacity for future growth, and build a period of sustained growth. Mobilising domestic resources, investing in infrastructure, strengthening public-private partnerships, and reforming relations with international financial institutions were among the strategies put forward to help Africa look beyond the crisis in the short and long term.
Swimming against the tide: How developing countries are coping with the global crisis
In 2009 the global economy will contract for the first time since World War II, according to a recent World Bank released study. What’s worse, for developing countries, the World Bank growth prospects in this newest report are dismal. According to the Bank’s research, the number of people living below the poverty line is expected to increase by several million worldwide as credit becomes more difficult to secure, global trade dwindles, and remittances decline. To combat these negative effects, the World Bank offers a number of suggestions, including increasing direct aid to developing countries who are in desperate need for this assistance to meet basic needs.
To view this report in full, see “Swimming against the tide: How developing countries are coping with the global crisis,” at: siteresources.worldbank.org/NEWS/Resources/swimmingagainstthetidemarch2009.pdf
Contentious issues in the interim EPAs: Potential flexibility in the negotiations
Despite a period of intense negotiations towards interim EPAs that led to several interim Economic Partnership Agreements between the EU and a number of ACP states in late 2007, many negotiators and politicians have voiced concerns over provisions that they view as ‘contentious’. A recently published ECDPM paper seeks to provide a synthesis of different arguments made on a selected number of these issues, as well as a summary of justifications. Suggestions for moving forward in the paper are made with the intent of informing constructive debate at an important point in the negotiations, considering wherever possible, the mutually expressed desire for flexibility to arrive at agreed upon solutions.
To view this discussion paper, see “Contentious issues in the interim EPAs: Potential flexibility in the negotiations,” at www.acp-eu-trade.org/library/library_detail. php?doc_language=en&library_detail_ id=4940.
News Sources
1. “Downturn ‘risks Africa conflict’,” BBC News, David Loyn, 16 March 2009.
2. “Call for IMF gold sale to aid Africa,” Financial Times, William Wallis, 18 March 2009.
3. “Africa Conference Debates Way Forward Amid Crisis,” International Monetary Fund, 13 March 2009.
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