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VOL.3 August 2011
Putting Africa on the Front Foot

The G20 should work in close collaboration with African countries and regional structures, while dealing with African issues, said Dr. Essop Pahad in his speech at the Second Global Think Tank Summit held in Beijing on June 25-26. One of the points raised by current editor of The Thinker journal is that Africa needs more representation on the G20 and he asked how the organization can claim universal legitimacy if some 172 countries are excluded from its meetings. His edited speech at the summit follows:

Given that the G20 represents over 85 percent of global GDP, more than two thirds of the world's population and approximately 80 percent of international trade, it is in a preeminent position to influence world trade, world markets, international investments and global socio-economic trends, growth and development.

But the question is, can the G20 genuinely work together with and assist the weak, the poor, the marginalized and the least developed countries? Can it claim universal legitimacy and leadership if some 172 countries are excluded from its meetings, deliberations, decisions and contacts - both formal and informal?

At the present time the only country from Africa that has a place on the high table is South Africa. Even if one accepts that the G20 should not become an unwieldy institution, is there no place for an additional African country in the G20? It seems to me that the G20 would be strengthened if Nigeria were invited to join the club. Nigeria, a critically important country in terms of its economy, size of population and geo-strategic location, would be an asset in efforts to improve global economic governance and common development.

I want to raise a number of issues from an African perspective:

1. It is generally accepted that for sustained economic growth and development a country needs to achieve a savings and investment rate of up to 30 percent. But most African countries are unlikely to come anywhere near this target if left to their own efforts. In this context, is it premature to suggest that there be a transfer of surplus savings from the haves to the have-nots. Nevertheless some mechanisms must be explored to encourage a culture of domestic savings.

2. From previous experience we are aware that loans from the IMF, the World Bank, developed countries and the private sector to many African countries have been tied to onerous and unrealistically demanding conditions. To what extent is it the common responsibility of the G20 and other institutions to attempt to secure loans for African countries on much more favorable terms?

3. Is it not possible to work collectively to ensure that debt relief is utilized not to create more debts but for good governance, prudent investment and sustainable economic growth and development?

4. It is essential for the G20 to reduce, if not eliminate, agricultural subsidies in the developed world, which impact negatively on the capacity of African countries to produce and market their own products.

5. It is necessary to encourage domestic and foreign investment in agricultural production, and infrastructure in the rural areas. At the very least this would assist those countries to become self-sufficient in food production and perhaps stimulate export of any surplus products.

6. Stronger measures are required to regulate the behavior, investment patterns and one-sided negotiated agreements of the trans-national corporations operating in Africa. Obviously they will only invest if they get a fair return on their investments. But is it too much to ask that they reinvest a substantial amount of profits back into the domestic economy? Is it possible to get a win-win situation?

7. A new direction of development requires investments - human and capital - in education, health, clean water, sanitation and infrastructure. To what extent do the present global governance mechanisms encourage this?

8. Corruption is a drain on the resources and quality of life in African countries. Far, far too many leaders and elites have benefited at the expense of the vast majority of people. Is it not possible to overhaul the present system so that the corrupter pays a very high price for indulging in corruption? The corrupt have to be apprehended, charged and imprisoned.

It is evident that the G20 will continue to impact on developments in the African continent, and vice-versa. Of course, African countries also need to deepen unity and cooperation within the AU, the Non-Aligned Movement (NAM) and the South-South dialogue. But the growth of that unity and cooperation need not impact in any negative way upon good relations between the G20 and Africa.

We need to remember that Africa's well-publicized problems only tell one side of its story. Africa is a continent, brimming with potential. As Archbishop Ndungane recently pointed out, "Addressing the aspirations of young people is key to unlocking Africa's moment. Youth are dynamic, energetic and creative. Africa's population of 1 billion is expected to double by 2050. The continent's demographic advantage in which 63 percent of Africa's population is under the age of 24 is an asset. This advantage of being the 'youngest and most energetic' continent should be tapped and created as an opportunity to realize the African moment." [The Thinker, July 2011/vol. 29]

A democratic Africa abiding by the rules of freedom of association, free and fair elections and governed by respect for human rights and tolerance of ethnic and religious differences can and must play its role in advancing global economic governance and common sustainable development.

 

 

 

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