New Economic Order Required to Combat COVID-19 in Africa

COVID-19 will spread in Africa (courtesy theconversation.com)

New Economic Order Required to Combat COVID-19 in Africa

Lawrence Freeman

March 30, 2020

As of March 30, 2020, the Africa CDC reports the total number of COVID-19 cases-4,760, deaths-146, and recoveries-355. The totals for individual nations vary from higher levels:  Algeria 511 cases and 31 deaths; Egypt 609 and 40; Morocco 479 and 26, South Africa 1280 and 1; Nigeria 111 and 1 (cases and deaths respectively); to dozens of nations reporting 10 or less cases and 0 deaths. Africa CDC COVID-19

While these figures for Africa are significantly lower than nations in Europe, Asia, and North America, in some cases orders of magnitude lower, there is reason for great concern for the spread of the Coronavirus throughout the African continent. Many African nations are unable to adequately test their citizens, and one should assume the number of cases is vastly unreported. Also, there unique features of African society that present an impediment to isolation of those infected with COVID-19, and social distancing. African society are centered around crowded mass markets, and culturally Africans are prone to show their friendliness towards others by holding hands.

Factoring in a weak healthcare system, poor nutrition, inadequate housing, lack of electricity and clean water, and already prevalent existing diseases (HIV AIDS, Malaria, TB) in the population, COVID-19 could propagate very rapidly, overwhelming an insufficient number of beds, hospitals and doctors. For Africans, the consequences of the proliferation of COVID-19 could be catastrophic, resulting in higher levels of mortality and morbidity than we have presently experienced.

Debt Restructuring Necessary for Africa’s Health

In response to the COVID-19 pandemic, for the first time in many years, African leaders are demanding a restructuring of the onerous debt, whose payment has diverted nations’ revenues away from investing in vital categories of infrastructure, including healthcare. Payment of debt, mere loans, cannot be, to quote from William Shakespeare’s Merchant of Venice, “the pound of flesh” used to kill people. Tragically, since African nations liberated themselves from European colonialism, debt has been used as a weapon to repress the development of emerging nations.

On March 24, the office of the Ethiopian Prime Minister, Dr Abiy Ahmed, released an incisive three point proposal to the G20 nations outlining necessary actions to be taken to safeguard African nations during this pandemic. He began by dramatically stating the truth, “COVID-19 poses an existential threat to the economies of African countries. Our economies, fragile and vulnerable even in the best of times will face serious shocks.” He than discussed a crucial underlying constraint imposed on African nations, “the heavy debt burden, the servicing of which alone costs many of them [nations] significantly more than their annual health budgets.”

Prime Minister Abiy requested from the G20:

  • $150 billion “Africa Global COVID-19 Emergency Financing Package”
  • “Global Africa Health Emergency Package”
  • “Debt resolution and Restructuring Package.”

Elaborating on debt restructuring, Prime Minister Abiy wrote, “Ethiopia proposes all interest payments to government loans should be written off. We suggest the remaining debt be converted into long term low interest loans with 10 years grace period before payments. All debt payments will be limited to 10% of the value of exports.”

The theme of restructuring Africa’s debt to deal with the present crisis, was also discussed in a virtual conference of African finance ministers on March 19, according to the United Nations Economic Commission for Africa (UNECA).  To battle COVID-19, the ministers said, “Africa needs an immediate emergency economic stimulus to the tune of $100 billion” The UNCEA reports that they are asking that $44 billion, almost fifty percent of the funds requested, would come from halting payments of debt service, and in the most fragile nations to the loan principal as well.  African Finance Ministers Discuss Debt

In an insightful column, published in the March 25th edition of the Financial Times, Prime Minister Abiy again raises the necessity of debt alleviation: “Building on what has been announced by international financial institutions, the G20 must launch a global fund to prevent the collapse of health systems in Africa. The institutions need to establish a facility to provide budgetary support to African countries. The issue of resolving Africa’s debt burden also needs to be put back on the table as a matter of urgency.” (emphasis added)  PM Abiy “If Covid-19 is not beaten in Africa it will return to haunt us all”

 

Crowded Nigerian Market (courtesy buzznigeria.com)

 

Emergency Actions Taken

Nigeria—March 18, with 8 confirmed cases, imposed a travel ban on 13 high-risk COVID-19 infested countries; mandated a ban open worship and other public gatherings; mandated compulsory laboratory tests on all staff and members of the national assembly; mandated that public institutions should be equipped with temperature gauge.  All airports in Nigeria are closed to international commercial flights until 23 April.

Rwanda—March 21, with 17 confirmed cases of COVID-19, suspended all arriving and departing commercial flights for 30 days; shutdown of schools, universities, and places of worship for two weeks; the office of the Prime Minister released a list of nine preventive measures.

Ethiopia—March 23, with 11 confirmed COVID-19 cases, enforced a 14 day mandatory quarantine for all travelers entering the country; closed all schools, and banned all gatherings and sports events for 15 days. March 25, Ethiopian President Sahle-Work Zewde ordered that more than 4,000 prisoners be pardoned.

Senegal–March 23, declared a state of emergency.

Ivory Coast–March 23, declared a state of emergency, imposed a curfew from 9:00 pm to 5:00 am, and shut the country’s borders

South Africa—March 26, with over 900 confirmed cases, began a three-week nationwide lockdown; the lockdown is considered one of the strictest, banning alcohol sales, dog-walking, and jogging in public.

In response to the COVID-19 crisis, China has sent to the African Union, 2,000 test kits to be dispersed across the continent, and is expected to send another 10,000, along with medical supplies. China has also launched a new Health Silk Road. On Sunday, March 22, African Union received 1.1 million test kits, 6 million masks, 60,000 medical protective suits and face shields, donated by Chinese billionaire Jack Ma.

Lessons We Must Learn

We can and should learn the following lessons from this contagious and lethal virus. Decisions made by nations for securing their future can now be informed from the very painful consequences of the global spread of COVID-19. If society, had learned the principles of the science of physical economy, instead of being seduced by the “smell of money,” we might very well have been able to avoid the worst of the tragic effects of COVID-19, which continue to plague our planet.  An unprepared and underfunded national economy gives society little chance to deal with any serious crisis, much less a pandemic.

*Globalization has always been a trojan horse, an Achilles heel for the security of any nation. The idea that a nation should gamble its security on the premise of buying necessary commodities from anywhere in the world at the cheapest price was always insane.  Witness today’s disruption of multi-thousand mile long supply chains as proof.

For example, properly understood, feeding one’s population is a matter of national security. African nations have undermined their security and sovereignty by failing to be food self-sufficient. Procuring food from other continents or at great distances across Africa is not only foolish, but totally unnecessary given the fecundity of African soil.  By conservative estimates, African nations spend $35 billion on imported food. A colossal and senseless waste of foreign exchange, which contributes to a nation’s poverty.  And a poor-hungry population is fertile ground for orchestrated destabilizations. Nations are ordered by institutions like the World Trade Organization to buy their food at the cheapest price regardless of domestic consequences.

The alternative to globalization is obvious; each nation has the sovereign obligation to foster productive agriculture and manufacturing sectors. The current pandemic of the coronavirus has brought to the fore the perilous effects of nations dependent upon importing lifesaving products from other nations.

Africa’s huge infrastructure deficit has always been a killer for Africa; literally!  Many of my friends and critics alike have objected to my insistence that the most critical prerequisite for Africa’s development is infrastructure. The most essential human right, is the right to live, and to live as a dignified human being. That is impossible with pathetically low, in some cases, non-existent levels of infrastructure.

Hospital in South Africa (courtesy borgenproject.com)

*Healthcare infrastructure is a necessity to sustain longevity of life—the essence of a human right. It embodies all components of infrastructure, manufacturing, and agricultural industries.

Examine what is necessary to maintain a hospital. Abundant electricity for lights and machines, access to clean water, roads and rail lines to transport patients, advanced medical equipment, a manufacturing sector to produce all the products consumed by hospital staff, food production to feed patients and staff, colleges, medical schools to train nurses and physicians, clothing for patients and staff, protective gear, and the list goes on. Now ask oneself, how many hospitals are there per 100,000 population in Africa?  How many basic hospital beds exist? How advanced intensive care units? If you look at the chart in the link below, which admittedly is several years old, you can see the huge discrepancy in hospital beds per 1,000 people in Africa compared other parts of the world. Hospital Bed per 1,000 in Africa

In the years 2012-2013, the US had 2.9 beds per 1,000 people, Italy 3.9 and Spain 3. All these nations are now experiencing a shortage of beds and all are considered hot spots in this COVID-19 pandemic. Shockingly, in that same time frame, over 25 African nations were recorded to have 1 bed or less per 1,000.

In 1975 the U.S. had 1.5 million hospital beds, and today has 925,000-over half a million fewer. Today the US has an average of 2.5 beds per 1,000 people, and California, Oregon, and Washington have 2 beds or less per 1,000. By contrast, before the outbreak of COVID-19, Wuhan, China had 4.3 beds per 1000, and they have added 10,000 hospital beds since the outbreak began by building several new hospitals.

Think for a moment would kind of investment in infrastructure, production, and labor that would be required for African nations to even reach the insufficient US level of hospitals and beds. How many hundreds of thousands of megawatts of electricity would have to be generated to supply these new hospitals? How many million gallons of water would be required? Africa has never built up a minimum healthcare infrastructure and is woefully unprepared should the pandemic surge on the continent in the weeks and months ahead.

 As we are witnessing today, the West is suffering greatly from the deliberate slashing its own healthcare infrastructure over recent decades. This has been accomplished through austerity, shortsightedness, and an indecent obeisance to a desire to make fast-money by gambling on Wall Street.

*State government intervention has risen to the fore during this scourge of COVID-19, despite decades maligning the role of the state. It is now clear that contrary to the false claims that the state has no role in the world of neo-liberalism, laissez-faire, and unregulated free-trade, government supervision and government credit-debt to sustain people and the economy have proofed invaluable and lifesaving. Putting aside the multi-trillion dollar bailout to the global gambling casino known as the financial system, governments have issued emergency funds necessary to maintain society. Much more government intervention will be required to save lives in the weeks and months ahead.

Globalization (courtesy thegeopolitics.com)

 A New Just Economic Order       

Prime Minister Abiy’s column in the Financial Times beseeches the need for a coordinated global response to COVID-19:

 “There is a major flaw in the strategy to deal with the coronavirus pandemic. Advanced economies are unveiling unprecedented economic stimulus packages. African countries, by contrast, lack the wherewithal to make similarly meaningful interventions. Yet if the virus is not defeated in Africa, it will only bounce back to the rest of the world. 

That is why the current strategy of uncoordinated country-specific measures, while understandable, is myopic, unsustainable and potentially counter-productive. A virus that ignores borders cannot be tackled successfully like this.

We can defeat this invisible and vicious adversary — but only with global leadership. Without that, Africa may suffer the worst, yet it will not be the last. We are all in this together, and we must work together to the end.”

His comments implore the urgent necessity for an entirely different global approach to be taken by nations. We must absorb the horrible reality of today’s deadly crisis to motivate our passions to create a better future for civilization.

For humanity to survive, we can no longer tolerate living in a world governed a geo-political doctrine that views other countries crudely as either friend or foe, with winners on top and losers underneath.  We can no longer live in a system that values mere money above human life. Look at Sudan, whose people are suffering, while Western institutions led by the International Monetary Fund use Sudan’s $53 billion in (unpayable) debt as weapon to dictate their “reforms.”

Months before COVID-19, the United Nations asked for $135 million to fight the unprecedented Desert Locust threatening the food supply in Kenya, Somalia, and Ethiopia. The fund is still $100 million short of that goal. The UN has called the locust swarm in East Africa “extremely alarming.” Tthe current pandemic is affecting the ability for African nations to obtain the minimal equipment and pesticides required.

We must bring into creation a new model for governing. A new paradigm that values human life above all else. One that acknowledges the universal moral resemblance of all human beings.

The call for a New Just World Economic Order was first articulated in the 1970s and has been echoed for decades by world leaders. All foreign, domestic, economic policy should be formulated upon the recognizable principle that all people share a common aim and destiny. We, the human race, are unified by our endowed unique quality; the power of reason-creative imagination.  To resolve the multiple crises facing humanity, including a meltdown of the global financial system, it is urgent that an international conference be convened to establish a new template for economic and political relations among sovereign nations. The foremost underlying principle for such deliberations is acknowledging that the aspiration of all nations should be the elevation of human creative life. For all peoples.

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

 

Africa Updates: Malian Crisis, Uganda’s New Hydroelectric Dam, Rwanda’s Infrastructure Goals, Kenyatta Speaks on China, US and Africa

In this interview, Lawrence Freeman exposes that the root cause of the present deadly crisis in Mali stems from the overthrow and assassination of of Muammar Gaddafi by the West in 2011, led by President Obama, Susan Rice, Hillary Clinton, and French President Sarkozy. .

 

Uganda is intending to build with ChinaPower, the Ayago Hydroelectric Power Station, located on a section of the Nile between lakes Kyoga and Albert. When completed, it will produce 840 megawatts of electricity at the cost $1.4 billion, and increase Uganda’s generating capacity by 40% to 2,800 megawattsTogether with the completion of Grand Grand Ethiopia Renaissance Dam GERD, East African nations are beginning to produce power necessary to develop their economies.  Read: Uganda-China Build New Hydroelectric Dam on the Nile

Rwandan Minister of Infrastructure, Claver Gatete, outlines plans for Rwanda to reach 100% access to electricity for its population in 2024, by adding 2.4 million households to the electrical grid in the next four years. Watch: Minister of Infrastructure on 100% Electricity by 2024

During his visit to the US, Kenyan President, Uhuru Kenyatta, warned about forcing African nations to chose between the US and China. China has made major contributions to building infrastructure in Africa that cannot be denied. The US should change its policy from treating Africa as a “pawn” in its geo-political chessboard, and instead join China in developing the vast underdeveloped African continent. Read: Kenya President Kenyatta Warns Against US-China Rivalry in Africa

End Racism Against China: CORONAVIRUS is a Human Disease

Director-General of the United Nations World Health Organization (WHO), Dr. Tedros Adhanom Ghebreyesus, praised China for its efforts to contain the Coronavirus. (Courtesy of CGTN)

February 7, 2020

I concur with the statement below by Mrs LaRouche from the German based Schiller Institute. China is making an heroic effort to contain the Coronavirus, and I might add without international support. While President Trump supports President  Xi Jinping, the US has given no assistance. Building a new hospital from scratch in 9 days is nothing short of stupendous! Racism against China, by many of US elected officials, fellow citizens, and some of my African friends, must end. China has emerged as a global power. A more thoughtful policy would be for the United States to collaborate with China and Russia to find solutions to various strategic crises endangering peace and security in the world. 

CHINA DESERVES PRAISE AND COOPERATION IN THE FIGHT AGAINST THE CORONA VIRUS

The name of the German weekly magazine “Der Spiegel” actually means in English, “The Mirror.”  And indeed what you see this week on the cover page of the print version of Der Spiegel—a person with a gas mask, goggles, earphones and a hoody⁠—is the mirror image of the ugly face of the racism of its editors. The caption “Corona-virus Made in China” should actually be “The ugly face of the racist monster Spiegel.”

This piece of yellow trash journalism was so bad that the Chinese embassy in Germany issued a formal complaint on their website. The notorious Jylllands-Posten of Denmark had an equally disgusting so-called cartoon putting the corona virus on the Chinese flag. Various American so-called mainstream media use the abdominal racist term “The Yellow Peril.”  What all of these portrayals demonstrate is the ugly reality of an obviously deep-seated racism under a very thin varnish of “western values.”

The reality of the matter is, that the Director General of the WHO, Dr. Tedros Adhanom Ghebreyesus, has praised China repeatedly for the excellent handling of the epidemic, noting that China has set a new standard of dealing with such problems. That the Chinese government had published a full genome-mapping of the new variants within days of the outbreak made it easier for scientists in other countries to start working on possible vaccines, but also that China has made significant breakthroughs in the biological sciences over the past 15-20 years. Other health officials stated that the response of the Wuhan regional government and the dissemination of information was “state of the art“ and that an extremely impressive quantity of new information contained in their daily updates had been published since December 31st/January 1st.

To call any virus a “Chinese” virus is as silly as to say that it is someone’s fault if he catches the flu or gets sick in general. It can happen anywhere in the world and it can happen to every person on the planet. The lesson from this recent case of the reaction to the outbreak of the coronavirus is that it shows who in the international community is capable of responding to dangers that threaten all of humanity, and who is a troglodyte, and who is not.

If  Europe and the US want to be credible in talking about “human rights” and “western values” then they should join hands with China and cooperate on the fight to defeat the coronavirus. The coronavirus and the fact that every year 100,000s of people get killed by the influenza shows how urgent it is to make new breakthroughs in the fundamental understanding of living processes to overcome what are today, life threatening diseases.  Europe and the US should also cooperate with the most future oriented vision on the international agenda, namely the extension of the BRI into south west Asia and Africa and the international cooperation in the Space Silk Road.

For sure we should reflect on the actuality of the judgment of Gottfried Leibniz who said:

“In any case it seems that the situation of our present conditions in light of the growing moral decadence is such that it almost seems necessary that Chinese missionaries are sent to us, who could teach us the application and practices of natural theology….I therefore believe, that if a wise man would be elected not to judge about the beauty of goddesses, but about the excellence of peoples, he would give the golden apple to the Chinese.”

I think Leibniz was a lot wiser than Der Spiegel, Jyllands-Posten and New York Times. 

For more background read: Act on the Novel Coronavirus Immediately!

US Anti-China Narrative on Africa Unmasked

AFRICA: THE FIRST U.S. CASUALTY OF THE NEW INFORMATION WARFARE AGAINST CHINA

Chinese President, Xi Jinping addressing conference in Industrializing Africa

February 5, 2020

The article below by Caleb Slayton, director for the U.S. Air Force Special Operations School, Africa course, unmasks the self feeding loop of  US anti-China propaganda. “The U.S. narrative misjudges the full scope of China’s influence in Africa,” according to the author. The narrative attacking China’s relationship with African nations is blinding our elected officials, so called academics, and the general citizenry from understanding the contributions China is making to Africa. This false narrative, intense, widespread, and bi-partisan, has created a dangerous defect in US strategic policy toward China and Africa.  As a result, President Trump only sees Africa as a pawn in a global game to stop China’s influence on the continent. To the dismay of many Africans, the US, unlike China, lacks any serious policy that would assist African nations in pursuit of developing their nations.  

Excerpts:

“According to the U.S. strategic narrative on China in Africa, Beijing intends to steal Africa’s resources, secure corrupt business transactions, and pursue low-quality infrastructure projects. American officials argue that China’s political and diplomatic maneuvers yield little good for Africa and ultimately intend to indebt the continent to China’s bidding. This narrative is misleading. It has served to develop a crippling ignorance of the changing nature of information warfare, China’s weapon of choice. The narrative has also masked the successful means by which China has become a partner of almost every country on the continent and garnered their support at the international level. Perhaps worst of all, the focus on China is inattentive to the needs and ambitions of African partners, the key stakeholders in U.S.-Africa partnerships…

As the director from 2012 to 2016 of the Africa Theater Course for Special Forces out of Hurlburt Field, Florida, I engaged with hundreds of military members, government employees, analysts, operators, and practitioners directly engaged on the African continent. Every sidebar conversation or most student interjections on the topic of China maintained a similar skewed perception of China in relation to Africa.  China’s development projects were all “broken,” the projects hired mostly Chinese laborers, its merchandise was low-grade, China’s aim was to deplete Africa of its resources, the communications infrastructure was a tool of Chinese control, and all of China’s aid was a debt liability. Any mention of potentially beneficial partnership with China was laced with a political, social, or economic spoiler. This consistent negative narrative aligns to many Department of Defense and Department of State talking points….

“African countries draw inspiration from China’s rise. Beijing’s success is more profound than any criticism the United States levels against China’s internal social, religious, and political oppression…

Africa Isn’t Buying Washington’s Message on China

In Africa, Beijing has demonstrated that it has a lot to offer. Washington, by contrast, appears to offer only criticism. The U.S. narrative against China-Africa activities misrepresents China’s strategy, underestimates its influence, and downplays what a majority of Africa’s population really thinks about China partnerships and great-power competition. The current facts on the ground already give China impressive influence and access to political, economic, and communication sectors across Africa.”

Read the entire article

Africa: The First U.S. Casualty of the New Information Warfare Against China

China Has Embraced Africa’s Development; The US Has Not

Courtesy of Global Research

January 16, 2020

China Has Embraced Africa’s Development; The US Has Not.

By Lawrence Freeman

It is as clear as day and night, the difference between China’s approach to Africa and that of the United States. There is no equivalence. Historically, China has viewed African nations as part of the developing sector from which China emerged.  This has contributed to China’s distinct attitude to partnering with African nations in promoting economic growth. Over the last two decades especially, the ties between China and Africa have grown stronger, with Africa’s East Coast materializing as an integral part of China’s Belt and Road Initiative.

The US has not always dismissed the importance of contributing to Africa’s growth. President John Kennedy, following in the footsteps of President Franklin Roosevelt, was a strong opponent of colonial subjugation of Africa. President Kennedy, as US Senator advocated Africa’s liberation movement, and as US President supported President Kwame Nkrumah’s plans to construct the hydro-electric dam and bauxite smelting complex on Ghana’s Volta River. By the end of the 1960s the US had lost its optimism and vision for the world, adopting in its place, a British inspired cynical “geo-political” doctrine.

Geo-politics divides the world into two categories; winners and losers in a zero sum game. Today’s unfounded attacks against China’s involvement in Africa, alleging that China is deliberately entrapping nations into debt and stealing their natural resources flows from this perverted world view. Chinese President, Xi Jinping promotes a different philosophy; it’s called “win-win.”

Building, Not Extracting

Unlike British Imperialist Cecil Rhodes, and degenerates like King Leopold II, China is not raping Africa for its resources. Since Royal Dutch Shell discovered oil in southern Nigeria in 1956, the West has focused its investment chiefly in oil and gas-i.e. hydrocarbon extractive industries. China in recent decades has become the leading nation in financing and building infrastructure in Africa.  It is well known that investment in extractive industries do not expand the economy nor provide a large amount of jobs. However, it does yield large streams of revenue.  China has chosen a different business mode; one more beneficial to the African people.

According to McKinsey consulting company’s publication, Dance of the lions and the dragons, released in June 2017, China in 2015 financed $21 billion worth of infrastructure projects in Africa. That is three times the combined total of France, Japan, Germany, and India. US financing of infrastructure in Africa was too minimal to even mention. Detailed in the same document, China’s export and import trade with Africa is quantified as $188 billion in 2015, compared to the US at $53 billion. Deloitte’s 2017 Africa Construction Trends, further documents China’s role in expanding Africa’s infrastructure. As of June 2017, China was only second to African governments in funding large infrastructure projects, 15.5% and 27.1% respectively. The US was listed at 3%, the UK and France at 2%. When it comes to who actually builds these projects the figures are more shocking; China constructed over one quarter or 28.1% of these projects, the US 3.3%, and the UK 2.3%.

Infrastructure Is Essential

Infrastructure is critical for every economy to expand, grow and develop. Africa’s deplorable lack of infrastructure is literally killing its people. There is no more crucial single element of economy that must be addressed for African nations to develop. Infrastructure adds value to the entire economy by augmenting the productive capability of every farmer and worker. More capital intense economies will be affected by technologically advanced infrastructure platforms.

The history of humankind demonstrates that progress of civilizations emanates from the realization of scientific discoveries transmitted through more efficacious technologies. Infrastructure reflecting more advanced machinery is a primary means of transferring technology (science) to the economic production process.

There is nothing wrong with African nations using their resources for collateral or payment of loans for infrastructure. Wealth is not the monetary value of natural resources extracted from the earth. Economic wealth is understood to be that which contributes to the increase of the power of society to provide the material wellbeing of its citizens and their posterity. Infrastructure performs that function.

China’s contribution to building new railroads in Africa, replacing century old British and French antiquated rail lines, and constructing new hydro-electric dams, and ports, is precisely what African nations need to develop.  China is providing indispensable assistance; the US and Europe are not. An experienced former US ambassador to Africa told me bluntly; the US stopped investing in infrastructure in Africa in the early 1970s. Sadly, today, the US continues to repeatedly proclaim, “we don’t build infrastructure.”

 

Debt-Trap or Claptrap?

In her latest paper, A critical look at Chinese ‘debt-trap’ diplomacy: the rise of a meme, Deborah Brautigam, China-Africa scholar and Director of the China-Africa Research Initiative-(CARI) at SAIS*, puts a nail in the coffin regarding false accusations of China deliberately entrapping African nations through debt.

She writes: “…for over a decade Western politicians and pundits have warned that China is a rogue donor with regard to its finance, is a new colonialist, and a predatory and pernicious lender that snares vulnerable states in a debt trap leveraging its loans in order to have its way with weak victims.”

Brautigam responds to these allegations by asking: “However, does evidence exist for this kind of debt leverage?” Then she answers: “It [SAIS database] has information on about more than 1000 loans and, so far, in Africa, we have not seen any examples where we would say the Chinese deliberatively entangled another country in debt, and then used that debt to extract unfair or strategic advantages of some kind in Africa, including ‘asset seizures’.” (emphasis added)

With the population of 55 African nations projected to reach 2.4 billion in the next three decades, the continent needs trillions of dollars in new infrastructure. Presently, the US is more concerned in countering China in Africa, than developing Africa. Many African leaders are hopeful the US will establish a more robust economic relationship with their nations. As has been the case with previous administrations, the lack of vision, and adherence to “geo-politics” is preventing the US from engaging with Africa in a win-win relationship. This can and should change.   

*Johns Hopkins School of Advanced International Studies

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

 

China Investing in Africa’s Future, Why Isn’t the US?

January 5, 2019

In the article below you can read about China’s strategic investment in making Djibouti’s port a major port in Africa and the Middle East. The West can criticize as much as it likes, but China, not the US and Europe, is building vitally needed infrastructure in Africa. Without infrastructure Africa will not develop and progress. U.S policy known as  “Prosper Africa” is cynical joke.

NEWS

In strategic Djibouti, a microcosm of China’s growing foothold in Africa

By Max Bearak
December 30, 2019

Excerpts:

DJIBOUTI — Above ground in this tiny but strategically located country, signs of China’s presence are everywhere.

Chinese entities have financed and built Africa’s biggest port, a railway to Ethiopia and the country’s first overseas naval base here. Under the sea, they are building a cable that will transmit data across a region that spans from Kenya to Yemen. The cable will connect to an Internet hub housing servers mostly run by China’s state-owned telecom companies.

Beijing’s extensive investments in Djibouti are a microcosm of how China has rapidly gained a strategic foothold across the continent. Western countries, including Africa’s former colonizers, for decades have used hefty aid packages to leverage trade and security deals, but Chinese-financed projects have brought huge infrastructural development in less than a generation.

The construction is fueled mostly by lending from China’s state-run banks. Spindles of Chinese-paved roads have unfurled across the continent, along with huge bridges, new airports, dams and power plants as part of Chinese President Xi Jinping’s 152-country Belt and Road Initiative.

Overall, Chinese companies have invested twice as much money between 2014 and 2018 in African countries as American companies, spending $72.2 billion, according to an analysis by Ernst & Young.

“The Chinese are thinking far into the long-term in Djibouti and Africa in general,” said David Shinn, a former U.S. ambassador to Ethiopia who was also the State Department’s desk officer for Djibouti as far back as the late 1960s. “Djibouti is one node in an economic chain that stretches across the northern rim of the Indian Ocean, from ports in Cambodia to Sri Lanka to Pakistan. They have a grand, strategic plan. We don’t.”

In Djibouti, that strategic plan is all the more evident because of the country’s location at the entrance to the Red Sea, where about 10 percent of oil exports and 20 percent of commercial goods pass through the narrow strait right off Djibouti’s coast on their way to and from the Suez Canal.

That location has made it a crucial way-point for undersea cables, which transmit data between continents. China’s investment in Internet infrastructure here comes as the region surrounding Djibouti is just starting to come online, including some places that are entirely reliant on Djibouti as a transit point for data transmission…

“Yes, our debt to China is 71% of our GDP, but we needed that infrastructure,” Mahamoud Ali Youssouf, Djibouti’s foreign affairs minister, said in a phone interview on the sidelines of a meeting in New York earlier this month, where Djibouti was pushing to gain a non permanent seat on the United Nations Security Council.

“It was quite natural that we raise our partnership with China. Neither Europe nor America were ready to build the infrastructure we needed. We’re projecting our country into the future and looking after the well-being of our people. Even the United States has trillions of dollars in debt to China, you know,” Youssouf said.

The most significant investment China has made in Djibouti is Doraleh Port, Africa’s biggest and deepest. As with Internet through the data center, a full 90 percent of landlocked Ethiopia’s imports now transit Djibouti, giving the minuscule country, with a population of less than a million, leverage over its gigantic, 100-million-strong neighbor.

Read the full article

In the Next Decade, Nuclear Power for Africa Is A Necessity, Not An Option

Image credit: IAEA

12/28/2019

In the next decade, beginning on January 1, 2020, African nations must pursue nuclear energy. This is necessary to provide energy to the continent, which is suffering from a huge deficit in electricity, but nuclear technology has many additional benefits to African economies.  This includes creating large amounts of potable water. With nuclear power plants along the Mediterranean and Red Sea, the equivalent of a “second Nile River” from desalination through nuclear powered desalination would transform the nations of the Nile Basin. Constructing Small Modular Nuclear Reactors-SMRs (see below) in every African nation would be a important first step towards ending poverty and industrializing the continent.  Let me bluntly state: without abundant, low cost energy, Africa will not develop, and its people will suffer. Energizing Africa is not an option, it is a life and death necessity!

{Sustainable Times} published a valuable article on December 23, 2019: Can Nuclear Unlock Africa’s Development?

Excerpts:

“Combining renewables with nuclear power, however, makes the task of powering Africa’s growing economies more viable – not to mention the other useful and often overlooked aspects that nuclear can contribute to development. Although South Africa is the only country on the continent currently operating a nuclear power plant, the technology is being increasingly considered by African leaders. For example, works are set to begin on a new 4.8GW plant in El Dabaa Egypt next year, which is being developed by Russia’s Rosatom.

“Other countries including Ethiopia, Zambia, Nigeria and Ghana also have memorandums of understanding with Rosatom that pave the way for nuclear development. South Korea are also looking to invest in the continent’s energy industry, while Chinese nuclear firms have entered into agreements with Kenya, Sudan and Uganda. Energy is a key driver for development. In Ghana, for example, nuclear is seen as the obvious way to provide reliable energy for bauxite refineries which would increase jobs and export capacity.

Technology beyond electricity

“But nuclear technology provides more than just energy: many advanced nuclear designs produce high-temperature process heat for uses in desalination plants, chemical production and even district heating systems. These subsidiary features would allow nuclear technology to benefit society beyond the generation of electricity – and potentially accelerating its deployment.

“Nuclear technologies are already being used in agriculture, for example, where isotopes and radiation techniques are harnessed to combat pests and diseases or to increase livestock and crop production. For instance, farmers in Benin have increased their maize yields by 50 percent, while simultaneously reducing the amount of fertiliser used by 70 percent, thanks to the deployment of nuclear-derived nitrogen-fixation methods – the same techniques that are allowing Maasai farmers in Kenya to double vegetable crop yields with half the irrigation of traditional methods.

“By contrast, nuclear desalination could use the excess heat from new reactor designs like Small Modular Nuclear Reactors (SMRs) to produce thermal and electrical energy without emitting greenhouse gases, which then transforms seawater into freshwater. While capital costs for nuclear plants are initially high, fuel costs are low and stable: a doubling in the price of uranium would result in only a five percent increase in the total cost of energy generation. In contrast, an equivalent increase in oil would cause freshwater production costs to surge by 70 percent.”

 Read: Can Nuclear Unlock Africa’s Development?

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Progress for Small Modular Reactors

December 13, 2019—There’s some real good news for the U.S. economy today.  NuScale, an Oregon company that is developing a small modular nuclear reactor (SMR), has passed the next stage of review by the Nuclear Regulatory Commission.

Progress for Small Nuclear Reactors

Cross-section of NuScale small modular reactor (world nuclear news)

As this blog has reported before, the mass development of nuclear power is a critical component to bringing the productivity of the U.S. economy out of the doldrums, and thus bringing us into a new era of prosperity.  High-speed rail, modernized water systems, the space program, and many other components of an economic recovery program depend upon generating huge amounts of electricity that are way beyond our current capacity.  Nuclear represents a leap in productivity that will allow us to get there, as well as a step on the way to the development of thermonuclear fusion.

NuScale’s design for an SMR has now gone through four phases of review. It still has to go through stages 5 and 6. According to the company’s press release, the Oregon-based company is partnering with the U.S. Department of Energy, as well as other companies. It has received support from Congress.

As I outlined in a post approximately one year ago, the promise of SMRs lies not only in their safety design, but in the fact that the United States still has the industrial capacity to produce them assembly-line fashion. Over the past 40 years, the heavy industrial capability for producing a standard-sized nuclear reactor (measured in hundreds of megawatts or over 1000) has been dismantled. But a small reactor of 12 to 50 megawatts could be produced in assembly-line fashion, and provide a flexible means of providing power outside major urban areas, including hard-to-reach regions.

The United States is not the only country working on SMRs, and some in the industry are seeking to motivate investment in NuScale on the basis of “beating the competition.”  Such peaceful competition has a huge positive payoff for the human race, and can only be encouraged. Thus NuScale’s progress with the NRC is most welcome news.

The NuScale press release can be read in full here.

Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa

(Courtesy of Quartz Africa)

December 24, 2019

Deborah Brautigam, an expert on China-Africa relations, exposes the fraud of China’s debt-trap diplomacy in her report: A Critical look at Chinese ‘debt-trap diplomacy’ Brautigam, who is director of the Johns Hopkins Center for China-Africa Research Initiative, writes unequivocally that there is no evidence of an intentional effort  to trap African nations into owing debt to China. China is not manipulating African nations in an attempt to control their resources. Ironically this is what the Western institutions did to African nations  following their independence from colonialism. Whether out of ignorance and/or prejudice, Africans and Westerners have been repeating unfounded propaganda that China is the new colonizer of Africa. It is time to finally end this malicious mantra.

Excerpts:

“The Johns Hopkins School of Advanced International Studies curates a database on Chinese lending to Africa (Brautigam & Hwang, 2016). It has information on about more than 1000 loans and, so far, in Africa, we have not seen any examples where we would say the Chinese deliberately entangled another country in debt, and then used that debt to extract unfair or strategic advantages of some kind in Africa, including ‘asset seizures’. Angola, for example, has borrowed a huge amount from China. Of course, many of these loans are backed by Angola’s oil exports, but this is a commercial transaction. China is not getting huge strategic advantage in that relationship. Similarly, others have examined Chinese lending elsewhere in the world – some 3000 cases – and while some projects have been cancelled or renegotiated, none, aside from the single port in Sri Lanka, has been used to support the idea that the Chinese are seizing strategic assets when countries run into trouble with loan repayment (Kratz, Feng, & Wright, 2019).

The evidence so far, including the Sri Lankan case, shows that the drumbeat of alarm about Chinese banks’ funding of infrastructure across the BRI and beyond is overblown. In a study we conducted using our data on Chinese lending and African debt distress through 2017, China was a major player in only three low-income African countries that were considered by the IMF to be debt distressed or on the verge of debt distress (Eom, Brautigam, & Benabdallah, 2018). A similar country-by-country analysis that included use of our data shows that the Chinese are, by and large, not the major player in African debt distress (Jubilee Debt Campaign, 2018). Therefore, the role of China in African debt distress was limited when one remembers that there are 54 countries in Africa.”

Read: A Critical look at Chinese ‘debt-trap diplomacy’

Ethiopia Celebrates Launch of First Satellite-Science is the Driver of Economic Growth

Ethiopia Launches First Satellite into Space from China
Ethiopia’s satellite orbiting the earth. (courtesy of africanexponent.com)

December 22, 2019

Space exploration is an essential driver of economic growth. Mankind’s discovery of new physical principles of the universe leads to the creation of new technologies, which transform economies to higher levels of production of physical wealth.  It is science and assimilating new technologies like fission and fusion energy that are the  engines of real economic growth; not money or stock values. Exploration of space stimulates the mind and breeds optimism.  

“Ethiopia’s first satellite was sent into space on Friday, a landmark achievement for the ambitious country that also caps a banner year for Africa’s involvement in space.

“A Chinese Long March 4B rocket hoisted the first Ethiopian Remote Sensing Satellite (ETRSS-1) aloft from the Taiyuan space base in northern China.

“Scores of Ethiopian and Chinese officials and scientists gathered at the Entoto Observatory and Research Centre outside the capital, Addis Ababa, early Friday to watch a live broadcast.

“The 70-kilogramme (154-pound) satellite was developed by the Chinese Academy of Space Technology with the help of 21 Ethiopian scientists, according to the specialist website africanews.space…

“For us as a society, we are valuing this launch as something which lifts our national pride,” Paulos said.

“You know, this is a very poor country. Many in the younger generation don’t have big hopes of reaching space. But today we are giving this generation hope, helping this generation to think big and have self-esteem.”

Read: Ethiopia Celebrates Launch of First Satellite

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Nuclear Energy is Necessary for Africa’s Growth

Russia’s Rosatom already is building a $29 billion nuclear plant complex for Egypt, and the company is also helping Nigeria, Uganda, the Republic of Congo, and Rwanda establish nuclear facilities. The El Dabaa Nuclear Power Plant in Egypt will have four VVER-1200 reactors, or water-water energetic reactors, which are Russian-designed Generation III+ reactors. Russia is financing 85% of the project with a loan of about $25 billion to Egypt, and Egypt is paying the remaining 15% over a period of 13 years, wrote Darrell Proctor in Power on Dec. 2.

Africa’s only current operating nuclear power plant is the 1.8 GW Koeberg Nuclear Power Station, north of Cape Town, which is owned and operated by Eskom, South Africa’s power utility. The plant recently had its operational period extended for another 20 years from 2024 when it was originally supposed to be decommissioned.

African nations are trying to increase their power generation capacity on a continent that has long struggled to sustain reliable power. The International Energy Agency recently reported that 57% of Africa’s population still does not have easy access to electricity, and those with access to power deal with frequent power outages.

African nations desperately  need nuclear power for their survival. Without access to plentiful energy,  people will die and nations will not develop.

 

Trump, Impeachment, and the Future of the U.S.–CGTN

U.S. House Intelligence Committee Chairman Adam Schiff (1st R) speaks at a news conference to announce articles of impeachment against U.S. President Donald Trump on Capitol Hill in Washington, DC, U.S., December 10, 2019. /Xinhua Photo

On the week that the Judiciary Committee is determined to vote for the impeachment of  President Donald Trump, CGTN published my analysis on the invalidity of this impeachment process. 

Trump, impeachment, and the future of the U.S.

Lawrence Freeman, December 11, 2019

“This week the Judiciary Committee concludes the impeachment proceedings against Donald J. Trump, the 45th President of the United States. This committee, controlled by the Democrats, is likely to approve articles of impeachment within the week.

“It is anticipated that the majority Democratic Party in the House of Representatives will vote for impeachment before the Christmas Holiday break.

“Therefore, it is quite possible that when the Congress returns to Washington. D.C. in January, the first order of business will be a trial of President Trump in the U.S. Senate. Thus, America, and indeed the world, will begin the new year of 2020 with a dangerous strategic destabilization caused by a weakening of the U.S. Presidency. Regardless of the outcome, this course of events bodes ill for the future of our U.S.

“For me, a lifelong Democrat, who has been involved in American politics for over half a century, this impeachment process, driven by the leadership of the Democratic Party, is not legitimate. Removing a U.S. President, elected by the American voters is the most serious and extreme measure allowed under the U.S. Constitution.

“A President should not be removed from office without overwhelming and provable evidence, that she or he is endangering the security and existence of the U.S. No such evidence has been provided. I fear for my country when a partisan majority has the power to remove a President between national elections (as was the case of the impeachment of President Clinton, which I also opposed).”

Clash over foreign policy

“Once you get past the headlines of Russia-gate, followed by allegations of obstruction of justice, and now, the so-called quid quo pro in Ukraine; examine the real underlying issue of conflict between President Trump and the establishment. He disagrees with Washington’s anti-Russia policy…”

Read the entire article: Trump. Impeachment, and the Future of the US