Adviser to Ethiopian PM Abiy, Kenyan Pres Kenyatta, and US Cong Davis, All Understand: Infrastructure Essential for Economic Growth

Dr Arkebe Oqubay speaking during virtual TIPS 2020 Forum meeting
August 4, 2020

All three articles in this post highlight the essential role of infrastructure in building real economic growth in African nations as well as the United States. We are living in a perilous period of economic breakdown and loss of hundreds of thousands of lives due to the COVID-19 pandemic. Millions of impoverished people around the world are threatened with hunger, and tens of millions more are being forced into poverty and extreme poverty as a result of this dual crisis. Massive development of infrastructure, including nuclear energy, should be financed through public sector credit and a National Infrastructure Bank as part of a  “New Economic Architecture,” which is urgently required. The economic principles to finance infrastructure and an expanding agro-manufacturing sector was brilliantly put forth by President George Washington’s Treasury Secretary, Alexander Hamilton*. The levels of infrastructure required cannot be done by relying on the so called free-market, but must be accomplished by government intervention. When people are dying and suffering, you do not depend on the “markets.” Nations have the obligation to provide for the general welfare of their citizens.

Without infrastructure and manufacturing, AfCFTA will fall short – senior African policymaker

“An Ethiopian senior minister and special adviser to Prime Minister Abiy Ahmed has cautioned that, without major infrastructure investment and the development of manufacturing capacity, African countries will not be in a position to take full advantage of the African Continental Free Trade Agreement (AfCFTA), which is poised to liberalize trading conditions across 55 countries.”
Dr Arkebe Oqubay has been at the center of Ethiopian industrial policy making for over 25 years. He is the founding Chancellor of the Addis Ababa Science and Technology University (AASTU), and in 2015 he authored Made in Africa: Industrial Policy in Ethiopia

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Kenya on Course for $5 Billion Nuclear Plant to Power Industry

  • Plans to expand nuclear-power capacity fourfold by 2035
  • Kenya expects peak demand to top 22,000 megawatts by 2031

The government looks to expand its nuclear-power capacity fourfold from a planned initial 1,000 megawatts by 2035, the Nuclear Power and Energy Agency said in a report on the National Environment Management Authority’s website. The document is set for public scrutiny before the environmental watchdog can approve it, and pave the way for the project to continue.

President Uhuru Kenyatta wants to ramp up installed generation capacity from 2,712 megawatts as of April to boost manufacturing in East Africa’s largest economy. Kenya expects peak demand to top 22,000 megawatts by 2031, partly due to industrial expansion, a component in Kenyatta’s Big Four Agenda. The other three are improving farming, health care and housing.

The nuclear agency is assessing technologies “to identify the ideal reactor for the country,” it said in the report.

A site in Tana River County, near the Kenyan coast was preferred after studies across three regions, according to the report. The plant will be developed with a concessionaire under a build, operate and transfer model.

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US Congress introduces  H.R. 6422, the bill for a $4 trillion dollar National Infrastructure Bank (NIB) based on Hamiltonian principles

New Videos Show the Way Out of Crisis

*Alexander Hamilton’s Credit System Is Necessary for Africa’s Development

*Nations Must Study Alexander Hamilton’s Principles of Political Economy

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

 

New Infrastructure Vital for South Africa to Combat COVID-19 and Save Lives!

South Africa Says Lenders Commit $21 Billion to Building Projects

Banks, development finance institutions and multilateral organizations have committed 340 billion rand ($21 billion) to infrastructure projects in South Africa that could create 290,000 jobs, the government said.

The projects range from water supply to housing, energy, agriculture and roads. They were named in a July 24 government gazette, paving the way for the beginning of private investment in a 2.3 trillion rand program over the next decade.

Infrastructure investment has been identified by South Africa’s President Cyril Ramaphosa as a key plank in his bid to revive a stagnant economy that’s been further damaged by the coronavirus pandemic. While the state has traditionally funded most infrastructure in South Africa, surging debt has seen the government turn to private capital.

The projects need sovereign guarantees and an increase in debt limits, Kgosientsho Ramokgopa, the head of infrastructure investment in the presidency, said at a press conference today.

For more on the initial announcement, click here

Still, the commitments are a step forward in attracting investment into the country, which faces infrastructure deficits ranging from piped water to housing and power plants.

Of the 276 projects being considered by Ramokgopa’s department, the initial list totaled 50 with an additional 12 “special projects.” The projects are “shovel ready,” he said, with work likely to begin within three months.

“We will come with the next wave of projects,” he said. “The state needs to reciprocate by providing those guarantees.”

Private funding

Some of the projects, such as the next stage of the Lesotho Highlands Water Project, are already in process. Ramokgopa was not clear on whether the total investment amount included previously announced expenditure.

“What we need are projects that are financed independently by private investors who then earn a return through operating the projects,” said Theobald. “Those are genuinely fiscal neutral and growth positive.”

Ramokgopa did say one project to build 45,000 housing units was completely privately funded.

The commitments are as follows:

  • Transport: 47 billion rand, creating 50,000 jobs
  • Water and sanitation: 106 billion rand, creating 25,000 jobs
  • Housing: 138 billion rand, creating 190,000 jobs
  • Agriculture: 7 billion rand and 4,000 jobs
  • Digital: 4 billion rand and 700 jobs
  • Energy: 58 billion rand, creating 6,000 jobs

Reported by EIRNS, researchers at South Africa’s National Income Dynamics Study (NIDS) group released a Coronavirus Rapid Mobile Survey (CRAM) on Wednesday, July 15, which provided a bleak picture of the reality currently facing that nation under lock down, conditions which are representative of much of Africa and the Global South.

Conducted over a two-month period during May and June, the extensive (20-minute) survey was conducted by phone this year, with 30 researchers contacting over 7,000 people/homes. Of the hundreds of questions asked — with conversations getting personal to the point of provoking tears — the final report breaks the responses into three categories: Employment, Hunger, and Health.

  • On employment: 30% of income earners who had a job in February did not earn an income in April 2020 (the month South Africa’s hard lock down started and before relief efforts kicked in). As could be expected, job losses were highest in already-disadvantaged areas which could least afford it.
  • On hunger: 47% of respondents reported that their household ran out of money to buy food in April 2020. 1 in 5 respondents told researchers that someone in their household had gone hungry in the last seven days, and 1 in 7 respondents reported that a child had gone hungry in the last seven days. In households with children, 8% reported “frequent” child hunger (3 or more days in the last 7 days) in their household, and 1 in 25 (4%) reported “perpetual” hunger (almost every day or every day), with cases of “food shielding” (adults not eating so their children could survive), evidenced by “adult” hunger surpassing child hunger by almost 8%.
  • On health: 78% couldn’t (or wouldn’t, whether out of fear or poverty) see a doctor at least once during May or June, while 23% reported they were unable to access needed medications. The situation in South Africa is compounded by the unaddressed crisis of AIDS, with victims being unable to access critical care because of COVID-19 overload, a condition which could only be worse if the patient were pregnant.

While the authors do not note it, the survey is the first known to bring together these three aspects of the crisis, providing an accurate physical-economic picture of this harsh reality.

IMF Conditionalities Contribute to Shortage of Health Workers: Africa Suffers

A nurse in Uganda is giving a woman an injection

July 14, 2020

IMF Conditionalities Contribute to Shortage of Health Workers

Lawrence Freeman

As I have told my friends for many years, the International Monetary Fund (IMF) is incapable of helping nations grow their economies. I do not believe the IMF can point to any success story, where its policies led to improving the standard of living of the population. Their macro-monetarist ideology fails to understand the essential driver of real (not monetary) growth. Following IMF prescriptions usually results in more suffering for the victim nation.  For a more in depth analysis read my article from last year: Africa Needs Real Economic Growth, Not IMF Accountants.

The report cited by the ActionAid and Public Service International highlights the failure of the IMF:  IMF Told Countries Facing Critical Health Worker Shortages to Cut Public Sector Wages The statistics are revealing, but should not be shocking to those of us who study physical economics. Throughout its history we have seen the IMF insist on cuts to meet to macro-economic goal at the expense of the population. This report clearly pinpoints the effects of tying loans to cuts back in healthcare. Africa was suffering from an acute shortage of healthcare workers before the COVID-19 pandemic. Sub-Saharan Africa has the fewest physicians per 1,000 population and the lowest number of hospital beds per 1,000 population.

It was pointed out by Ethiopian Prime Minister, Abiy Ahmed, earlier this year, that   payments of debt service equaled or surpassed the amount of money nations spent on healthcare.  He wrote “In 2019, 64 countries, nearly half of them in sub-Saharan Africa, spent more on servicing external debt than on health. Ethiopia spends twice as much on paying off external debt as on health.

African nations, or any country for that matter, should not be subjected to this kind of treatment. Human life is real and precious. Debt is merely a financial accounting mechanism. There is no equivalence.

The COVID-19 pandemic has revealed the failure of the world globalized financial system, which has been become decoupled from the real economy. Genuine economic growth uses credit to promote human life. President Franklin Roosevelt’s Bretton Woods system, in its perverted form, came to an end on August 15, 1971. For the last fifty years, the City of London-Wall Street centered financial system has become more corrupt each decade, serving the interest of a tiny few. Now is the time to launch a New Bretton Woods, dedicated to improve the conditions of life for all people of all nations. I will be writing more on this subject in the future.

Below are excerpts from the cited report:

“New analysis by ActionAid and Public Services International (PSI) reveals how International Monetary Fund (IMF) austerity policies restricted critical public employment in the lead up to the Covid-19 crisis. (emphassis added)

“The analysis, released to mark UN Public Service Day (23 June), shows that every single low income country which received IMF advice to cut or freeze public employment in the past three years had already been identified by the World Health Organisation (WHO) as facing a critical health worker shortage.

“Key findings include:

  • Of the 57 countries last identified by the WHO as facing critical health worker shortages, 24 received advice from the IMF to cut or freeze public sector wages.
  • When countries are told to contain wage bills – it means fewer doctors, nurses and frontline workers in countries already desperately short of medics.
  • All but one of the 18 low-income countries advised by the IMF to cut or freeze public sector employment funding, are currently below the WHO’s recommended nurse-to-population threshold of 30 per 10,000.
  • The WHO predicts that these countries will experience a collective shortage of at least 695,000 nurses by 2030.

“ActionAid’s 2020 report Who Cares for the Future: Finance Gender-responsive Public Services exposed the detrimental IMF loan conditions and austerity measures which have pushed 78% of low-income countries to plan for zero increase in public sector wages.

“When countries are told to contain wage bills it means fewer doctors, nurses and front line health workers in countries already desperately short of medics. This was a dangerous practice even before the Covid-19 pandemic and is unthinkable now.”

Read the full report: IMF Told Countries Facing Critical Health Worker Shortages to Cut Public Sector Wages

Read my earlier posts: 

VIDEO: Africa’s Healthcare Infrastructure Requires a New Bretton Woods

World Needs New Economic Platform to Fight COVID-19

New Economic Order Required to Combat COVID-19 in Africa

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

VIDEO: Africa’s Healthcare Infrastructure Requires a New Bretton Woods

July 10, 2020

I was a featured speaker on a webinar sponsored by Watch Democracy Grow on June 16. The assigned topic of my presentation was: Prioritizing social infrastructure development on the continent. Watch my 18 minute presentation on the impact of COVID-19 in Africa and the need for a New Bretton Woods to build healthcare infrastructure. In my conclusion, I emphasized that human creativity, emanating from the brow of millions of African youth, is the source of wealth for Africa’s future.

I am happy to announce that my website is now entering its fourth year. I began publishing on lawrencefreemanafricaandtheworld.com on July 1, 2017. In three years my website has had over 50,000 views. To increase the influence of my ideas, which are outside the box, I am asking my friends and supporters to subscribe to my website, and circulate my posts. I am also available to provide research, writing, and consultation on all topics related to Africa, including Africa-US, and Africa-China relations.

I hope all of you remain healthy during these challenging times.

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

Russia Bringing Nuclear Power to Rwanda and Other African Nations. Resolving Libya Crisis Requires New Thinking

Russian President Vladimir Putin stands amid African heads of state
In a sign of the continent’s increasing importance for Russia, its president, Vladimir Putin, held the first Russia-Africa summit in October 2019

Ignoring the geo-political overtones from Deutsche Welle (see link below), the article does discuss Russia’s role in helping Africa to build nuclear energy plants, which are vital for the continent. Over 600 million Africans lack access to electricity. Over 1,000 gigawatts of additional power is urgently required. Nuclear power is the most efficient energy to preform work and power an industrialized economy, as well as an optimal energy source to desalinize water. Without abundant accessible electricity, Africa will not develop, and poverty and food shortages will continue. Production of energy and the elimination of poverty are essential for fighting COVID-19 and reducing all diseases in Africa, including cholera.

Excerpts below:

“Rwanda’s parliament has just approved a plan for Russia’s state-owned Rosatom nuclear conglomerate to build it a nuclear research center and reactor in the capital, Kigali.

“The Center of Nuclear Science and Technologies, planned for completion by 2024, will include nuclear research labs as well as a small research reactor with up to 10 MW capacity.

“Ethiopia, Nigeria and Zambia have signed similar deals with Rosatom, while countries such as Ghana, Uganda, Sudan and DRC have less expansive cooperation agreements…

“Rwanda’s planned research reactor will also be used to manufacture radioisotopes, according to Rosatom. Radioisotopes have many applications from irradiating food to increase its shelf life to helping diagnose tumors or heart disease.

“Such research reactors have “definite advantages” in fields such as nuclear medicine, nuclear scientist Michael Gatari, a professor at the University of Nairobi, told DW.

“In addition, on a continent where where more than half of the population lack access to electricity, there is “immense potential” for nuclear to provide a clean source of energy to meet Africa’s large energy deficit, the Center for Global Development study, Atoms for Africa, found.

“In the long term, a nuclear reactor generates electricity cheaper than we are paying now. It is also stable and produces no carbon emissions,” Gatari said in a phone interview from Nairobi.”

Read: Russia Building Nuclear Power In Africa

In my interview with PressTV, Watch: Ending Conflict in Libya Requires New Thinking, I discussed the necessity for a new approach to end the war in Libya. The West turned Libya into a failed state in 2011. Armies on the ground competing for territorial control will not be able to restore Libya’s sovereignty.

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

No More Lies, No More Anti-China Propaganda: There is No China-Africa ‘Debt-trap’

June 20, 2020

China-Africa Research Initiative-(CARI) presented an interesting and useful webinar entitled : Debt Relief with Chinese Characteristics, using research presented from a Working Paper #39 and Policy Brief #46. View: CARI: Debt Relief With Chinese Characteristics

In response to China’s growing economic and political influence in the world, especially on the African continent, various propaganda outlets located in the West have launched a new assault on China. Their line of attack is to malign China and African leaders with the false narrative that China is intentionally luring African nations into a ‘debt-trap’ in order to seize control of their natural resources. This cynical view of China’s alliance with African nations flows from the age old doctrine of “geo-politics” that only perceives nations as either winners or losers in a fixed zero-sum view of the world.  In this evil world view, stronger powers, hegemons believe they can only maintain their supremacy by having their foot on the neck of weaker nations. The “geo-political” doctrine rejects the notion that all nations share a common interest.

Misinformation or Disinformation

As Deborah Brautigam, director of CARI has stated before, there is no evidence, none, not one single case of China using debt to seize control of an African nation’s assets. “We found no “asset seizures” and despite contract clauses requiring arbitration, no evidence of the use of courts to enforce payments, or application of penalty interest rates.” Despite no substantiation of China using debt as a weapon against African nations, the ‘debt-trap’ mantra is repeated by either misinformed individuals, including Africans, or by those who are deliberately disseminating disinformation with malice.

The CARI working paper reports the following:

“The rating agency Moody’s warned that countries ‘rich in natural resources, like Angola, Zambia, and Republic of the Congo, or with strategically important infrastructure, like ports or railways such as Kenya, are most vulnerable to the risk of losing control over important assets in negotiations with Chinese creditors.’ These assumptions of a malign China were repeated in publications like The New York Times, which contended that Chinese loans “frequently use national assets as collateral” and require refinancing ‘every couple years’ (our Africa data supports neither of these statements).” (emphasis added)

If there is any honesty or integrity left in our duplicitous culture, all claptrap about China’ alleged ‘debt-trap’ as a nefarious attempt to gain control of Africa’s wealth should cease immediately! If one examines the long history of China’s relationship with Africa and the more recent twenty year period, it is clear that China desires to resolve issues with African nations through consultation. China may choose other means of responding to payment difficulties, but there is no evidence that they want to take over African holdings, contrary to prevalent popular opinion. Read: Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa

Debt Cancellation

As COVID-19 spreads in Africa, nations are struggling to survive economically and simultaneously defeat the deadly virus.  Debt service is onerous and must be suspended indefinitely or cancelled, as leaders of many Africans nation have rightly insisted. According to Dr. Brautigam, from 2000-2018, China has made loan commitments of $152 billion, and of Africa’ total external debt, China holds 17%, while the World Bank hold 18%, and private lenders 31%.  Thus, China will and has already engaged in debt relief, but will do it differently than western institutions like the Paris Club and World Bank.

“Our [CARI] study found that between 2000 and 2019, China has cancelled at least US$ 3.4 billion of debt in Africa. There is no “China, Inc.”: for interest-bearing loans, treatment for inter-governmental debt and Chinese company loans are negotiated separately, and often loan-by-loan rather than for the entire portfolio. While rescheduling by increasing the repayment period is common, changes in interest rates, reductions in principal (“haircuts”), or refinancing are not. We found that China has restructured or refinanced approximately US$ 15 billion of debt in Africa between 2000 and 20190…Chinese lenders prefer to address restructuring quietly, on a bilateral basis, tailoring programs to each situation.”   

China, up this point has only cancelled zero interest loans, which represent only 5% of loans from China, and are issued from China’s Ministry of Commerce. It is unlikely that there will be unilateral debt suspension.  Thus, we can expect that China will negotiate debt relief bilaterally with each nation, and each loan reviewed separately.

Even if debt cancellation is continued into 2021, which has not yet been agreed to, it will be insufficient. The level of investment required to meet Africa’s’ minimal infrastructure needs is in the trillions of dollars, which belies the “geo-political” nonsense of zero-sum assumptions.  Debt relief must be accompanied by issuance of credit for infrastructure and related sectors of production, otherwise Africa and the world will suffer from the spread of COVID-19 and future zoonotic diseases. Poverty is a co-factor for all diseases. Lack of electricity is a co-factor for the spread of disease and hunger, as is the lack of clean water, and inadequate transportation.

China’s Belt and Road Initiative over recent years has begun to address Africa’s infrastructure deficit, but much, much more is required. Collaboration between the U.S. and China on the development of Africa would be consequential for the continent.

I have addressed this issue in earlier posts: World Needs New Economic Platform to Fight COVID-19, New Economic Order Required to Combat COVID-19 in Africa

ViewCARI: Debt Relief With Chinese Characteristics

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

COVID-19 Tragedy Compels Revamping Globalization and Food Production

Dieudonne Twahirwa, 30, who runs Gashora Farm, examines chili plants at his farm in Bugesera District in eastern Rwanda on August 23, 2018.(Thomson Reuters Foundation/Thin Lei Win)
June 12, 2020

The article, Africa: COVID-19 Recovery Is a Chance to Improve the African Food System, reprinted below raises important issues concerning Africa’s food supply. The Covid-19 pandemic has revealed the failures of the global economic system. To wit: The gutting of healthcare in the so called advanced sector over the last half century left nations unprepared for what should have been expected, a new contagious zoonotic disease.  Nations that depended on thousand mile long supply chains for basic necessities, including medical supplies and drugs, proved to be disastrous for their populations. The absence of vitally essential products led to increased rates morbidity and mortality.

Tragically, Africa has been forced to devote large portions of its foreign exchange on debt service rather than building up its healthcare infrastructure. Adequate healthcare requires not only more hospitals, beds, physicians, and modern advanced equipment, but electricity, clean water, sanitation, roads, rail roads, adequate supply of nutrition, and elimination of poverty. A poorly fed population suffering from malnutrition provides an auspicious host for the spread of disease. Poverty is a co-factor of all diseases.

Last month, David Beasley, Director of the World Food Programme (WFP), warned that, if economic conditions continue to deteriorate and endanger the production and distribution of food to impoverished nations, we could witness famines in Africa, and other parts of the world. He said, “You could have 150,000 to 300,000 people die of starvation every day for several months.”

Africa has millions of acres of fertile but uncultivated land. The continent is reported to have over 60% of the world’s land lying fallow that could be developed for food production. It has been known since the early 1970s that the Africa continent has the potential to not only produce enough food for its own population, but could become a net exporter of food to help feed other nations.

The deadly COVID-19 pandemic has revealed what was there to see all along; Africa and large sections of the world have remained underdeveloped for decades due to the horribly defective policy of globalization.

To accomplish an agricultural revolution in Africa, we will also need to create an industrial revolution in Africa as well. The failure to industrialize Africa, to build manufacturing industries along with mechanized farming is a major contributing factor in reduced life expectancy, poverty, disease, and instability. The Physiocratic doctrine that all wealth comes from the land was efficiently refuted by President Washington’s Secretary of the Treasury, Alexander Hamilton.* The super productive family farms in the United States matured alongside manufacturing cities, and had access to abundant supplies of energy  for irrigation.

Let is use the tragedy of the COVID-19 pandemic to initiate a program to develop Africa’s full economic potential that will finally end poverty and hunger. To realize this absolutely achievable objective, we will need to create a New Bretton Woods System to drive economic growth. President Franklin Roosevelt intended the original Bretton Woods to be an institution to export his New Deal for developing nations, as was discussed with the Ethiopian delegation at the 1944 conference. Now, over a half century later we must realize this goal.

*Report on Manufacturers- December 5,1791

The World Food Programme has warned that the COVID-19 pandemic could cause one of the worst food crises since World War II. It predicts a doubling of the number of people going hungry – more than half of them in sub-Saharan Africa. While wealthier people stay inside and practise physical distancing, the economically marginalised populations risk going out in search of food. They take decisions between livelihoods and life in the most extreme cases. Such food inequities show the need for system-level action.

So far, the global food system has proven to be resilient to the COVID-19 pandemic. Food is still being produced, processed and distributed. Unfortunately, the system’s underlying injustices and inequities continue too. Around 1.58 billion people globally can’t afford healthy diets.

These inequities are especially stark on the African continent. Even before the COVID-19 crisis, the African food system was ailing. Food is perennially in short supply. In 2018, more than 250 million people in sub-Saharan Africa experienced severe food insecurity, incomes for farmers are lower than anywhere globally in real terms, and more than 30% of children are stunted partly due to poverty and poor diets.”

Read: COVID-19 Recovery: Chance to Improve African Food System  and Repositioning Agriculture for Africa’s Youth

Read my previous posts:

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

Webinar Invitation: New Bretton Woods to Combat COVID-19 Africa’s Future is its Youth

June 6, 2020

I will be the lead speaker on the first panel at this webinar. Please register to attend and participate. Webinar Registration

Watch 14 minute video interview with Lawrence Freeman below (30 second introduction in French) 

Watch Democracy Grow Webinar Series on The New World Order ushered in by Covid-19

WHERE: TELECONFERENCE/WEBINAR CONFERENCE SERIES.

When: June 16th, 17th, 18th.

Time: 9.30 am – 12.30 pm (EST).

June 16, Panel 1: Prioritizing social Infrastructure Development on the continent (Hospitals, Rural electrification, and Clean water supply).

Time: 9.30-11.20am

1.Dr. Freeman Lawrence. (15 mins on presentation,5 mins Q&A).

2.Dr. Mutisya Masila Philliph. (15 mins on presentation,5 mins Q&A)

3.John Dickson. (15 mins on presentation,5 mins Q&A)

4.Dr. Abdiqadir Yousuf Abdullahi.

  *Moderator: Dr.Samuel Lee Hancock.(Closing remark by Dr.Ayobani )

 

 

UN Chief: Virus Could Push Millions of Africans Into Poverty

A woman wearing face masks to protect against coronavirus, has her temperature checked by a security personnel before entering a grocery shop at Tembisa township in Johannesburg, South Africa, Tuesday, May 19, 2020. (AP Photo/Themba Hadebe)
A woman wearing face masks to protect against coronavirus, has her temperature checked by a security personnel before entering a grocery shop at Tembisa township in Johannesburg, South Africa, Tuesday, May 19, 2020. (AP Photo/Themba Hadebe)

May 20, 2020

United Nations Secretary-General, António Guterres, warns about the danger of the COVID-19 in Africa, both from the disease itself and causing increased levels of poverty.

“It will aggravate long-standing inequalities and heighten hunger, malnutrition and vulnerability to disease.  Already, demand for Africa’s commodities, tourism and remittances are declining…. millions could be pushed into extreme poverty

“The U.N. said the low numbers could be linked to minimal testing and reporting, pointing to a World Health Organization warning that the pandemic “could kill between 83,000 and 190,000 people in 47 African countries in the first year, mostly depending on governments’ responses.”

“To help address the devastating economic and social consequences of the pandemic, Guterres said Africa needs more than $200 billion and “an across-the-board debt standstill for African countries” unable to service their debt, “followed by targeted debt relief and a comprehensive approach to structural issues in the international debt architecture to prevent defaults.”

“These are still early days for the pandemic in Africa, and disruption could escalate quickly.  Global solidarity with Africa is an imperative – now and for recovering better. Ending the pandemic in Africa is essential for ending it across the world.

“I have been calling for a global response package amounting to at least 10 per cent of the world’s Gross Domestic Product.  For Africa, that means more than $200 billion as additional support from the international community.

“I also continue to advocate a comprehensive debt framework — starting with an across-the-board debt standstill for countries unable to service their debt, followed by targeted debt relief and a comprehensive approach to structural issues in the international debt architecture to prevent defaults.” 

 

Secretary-General António Guterres records a video message on the effect of the COVID-19 pandemic on children. UN Photo/Eskinder Debebe
Secretary-General António Guterres records a video message on the effect of the COVID-19 pandemic on children. (UN Photo/Eskinder Debebe)

ReadUN: Impact of COVID-19 in Africa

Read my earlier articles on COVID-19 in Africa:

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’s Belt & Road Needed to Revitalize World Economy: CGTN

May 18, 2020

Below are excerpts from my article on the strategic role of China’s Belt and Road in today’s world economy, published by CGTN 

The global economic breakdown ignited by the COVID-19 pandemic entails China and its Belt and Road Initiative (BRI) playing an important role in restoring health to the world economy. While Western nations are still struggling with COVID-19, and are months away from beginning to refurbish their economies, China has already started its recovery, following its earlier success in combating the coronavirus.

The collapse of nations to conditions resembling the Great Depression and the inability to contain the deadly virus have belied the alleged success of globalization. The underlying flaws of the deregulated post Bretton Woods financial system, which has become an international gambling casino to make fast money, are now nakedly revealed. Given the breakdown of the present global financial system, it is urgent that leading nations issue a call to convene a conference to initiate a New Bretton Woods system, which values human life over making money.

For civilization to progress, a new economic architecture dedicated to ending poverty, and promoting productive economic growth is compulsory. Without question, the United States and China will have to perform outsized roles in establishing a new paradigm of political-economic relationships among nations, notwithstanding current tensions.

Read the entire articleBelt and Road Needed to Revitalize World Economy