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.

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

Developing Nations Must Have Steel to Industrialize: Congo`s Steel Industry is Ready to Pave the Future

Demcratic Republic of the Congo (courtesy of indexmundi.com)

May 20, 2020

I am posting below in English and French, an interesting article by PD Lawton, a journalist and creator of the website: African Agenda-A new perspective on Africa– African Agenda. Lawton’s article  brings to our attention the importance for developing nations to have an iron and steel industry. The lack of steel production along with the absence of a vibrant manufacturing sector has prevented African nations from escaping underdevelopment imposed on them by colonialism.

Maluku Steel : the Time is Now!

Congo`s Steel Industry is Ready to Pave the Future

Excepts:

“The role of the Iron and Steel Industry in national industrialization is pre-eminent. This is because steel remains the basic raw material for a host of manufacturing activities and hence the material backbone for national economic development in general.”

They [ steel industries] are basically strategic industries that serve the long term industrial needs of a nation through their unique role as feeder channels to myriads of other key establishments. No serious programme of industrialization can be contemplated without a strong steel base, at least a steel base that would grow with the visualized scope of general industrialization over a set period.”

The Steel Industry will continue to serve as stimulus to national development and economy booster to industrial development of a country. The industry will serve as the backbone of industrialization of our great country, Nigeria if all the necessary parameters are put in place. The benefits of having a functional steel industry will translate to a functional country. It should also be noted that steel industry will contribute to all the facets of the economy, including the important role steel plays in economic development and growth.”

Read complete article below:

Maluku Steel : the Time is Now!

 

LA SIDÉRURGIE DE MALUKU : LE DÉMARRAGE, C’EST MAINTENANT!

 

Ethiopian PM Abiy Ahmed: Debt Cancellation for the World to Survive

Coronavirus testing supplies being unloaded at the Bole International Airport in Addis Ababa, Ethiopia, in March.
Credit…Tiksa Negeri/Reuters

Lawrence Freeman

May 1, 2020

Ethiopian Prime Minister, Abiy Ahmed, has made an audacious salient call for debt cancellation for low income countries. It was published in the Opinion section of the April 30, New York Times, Why the Global Debt of Poor Nations Must Be Canceled, (printed in full below). PM Abiy is correct, debt cancellation is absolutely necessary to save lives and for developing nations to survive the COVID-19 pandemic. To compel a nation like Ethiopia to spend almost half of its revenue on debt service, while its people are suffering from a perfect storm of Desert Locust swarms, food insufficiency, and a weak healthcare infrastructure, is immoral if not criminal. PM Abiy wrote:

“At the very least, the suspension of debt payments should last not just until the end of 2020 but rather until well after the pandemic is truly over. It should involve not just debt suspension but debt cancellation…

“These steps need to be taken with a sense of urgency. The resources freed up will save lives and livelihoods in the short term, bring back hope and dynamism to low-income economies in the medium term and enable them to continue as the engines of sustainable global prosperity in the long term.

“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. We spend 47 percent of our merchandise export revenue on debt servicing…

“The dilemma Ethiopia faces is stark: Do we continue to pay toward debt or redirect resources to save lives and livelihoods?”

PM Abiy’s analysis of the urgent need for the cancellation of debt service is relevant to the exacerbating effect of COVID-19 in Africa’s rising food insecurity.

image
Smoked fish produced in Ghana is sold all over the country and in neighboring Togo – as long as transport routes and borders can remain open for the movement of food to markets. Credit Jane Hahn/Oxfam America

COVID-19 Worsens Food Crisis

In the month from March 30 to April 30, COVID-19 cases in Africa rose from 4,760 to 37,296-800% increase, and the total of deaths from 146 to 1,619-1,100% increase.  Experts are legitimately concerned, that millions more may die from hunger and poverty as a result of the needed efforts to reduce the spread of the coronavirus. Closing borders, stay at home orders, loss of income, interruption of supply chains, and disruption of traditional animal migration cycles inauspiciously contribute to amplifying food insecurity.

“If the pandemic worsens, as many as 50 million more people could face a food crisis in the [Sahel} region,” according to Coumba Sow, Food and Agricultural Organization Resilience Coordinator for West Africa in her interview: FAO: COVID19: 50 Million in Sahel Could Face Food Crisis. Coumba Sow reports that across West Africa, 11 million people need immediate food assistance and that this number could rise to 17 million in the period from June to August. She says that it is “crucial to anticipate COVID-19’s impacts on agriculture, food security and the lives of vulnerable women and children. Ensuring that food systems and food supply chains are maintained is one of the most important action to take at national and regional levels.”

The World Food Programme (WFP) projects that the number of people facing acute food insecurity could rise from 135 million to 265 million in 2020 as a result of COVID-19.  According to the WFP, five of the countries that had the worst food crisis in 2019 were located in Africa; Nigeria, Ethiopia, Sudan, South Sudan and the Democratic Republic of the Congo.

Arif Husain, economist for the WFP said: “COVID-19 is potentially catastrophic for millions who are hanging by a thread. It is a hammer blow for millions more who can only eat it they earn a wage. Lockdowns and global economic recession have already decimated their nest eggs. It only takes one more shock—like COVID-19 to push them over the edge.”

Mauritanian herders (Courtesy of UN-FAO)

 A New Financial Architecture Required

While debt cancellation is essential, international and federal mechanisms are required to issue i.e. create new lines of credit to build up nation-wide advanced healthcare infrastructure, which all African nations lack. This endeavor should be part of a much larger undertaking to place African nations on a path to become developed industrialized economies.  I discuss the importance of emerging nations  to generate physical economic wealth in my earlier article: World Needs New Economic Platform to Fight COVID-19. Trillions of dollars of new credit must become accessible for African nations to address the dearth of infrastructure in energy, roads, railroads, and healthcare, that is literally killing Africans, every day. Successful transformation of African nations requires an urgent focus on nurturing combined manufacturing-agricultural processing industries. Speaking at a Johns Hopkins webinar on April 22, Gyude Moore, former Liberian Minster of Public Works (2014-2018) emphasized that creating manufacturing jobs is essential to transitioning to a more developed economy.

What has been glaringly brought to the surface by the combined COVID-19 pandemic and the malnourishment of Africa’s population is; that the global economic-political system of the last five decades has failed. A new financial architecture is compulsory to save lives and put civilization on the trajectory of progress. This new financial architecture should encompass the following essential missions in Africa:

  • Cancellation of debt
  • New credit generation for physical economic growth
  • Massive investment in hard infrastructure
  • Urgent mobilization to establish modern health infrastructure
  • Significant upgrading of manufacturing and agricultural sectors

It is unacceptable in the twenty-first century for every nation not to be equipped with advanced modern healthcare infrastructure.  One of the most egregious defects of globalization is that nations have become dependent on imported food from thousands of miles away because it is somehow construed to be cheaper than producing food at home.

Nations exist to foster the continuation of a human culture moored to the conception that human life is sacred. There is no equivalency between servicing debt and safeguarding human life.  Money really has no intrinsic value. Banks are mere servicing bureaus of an economy.  Governments legitimately create credit to generate future physical wealth to benefit their citizens. When borrowing or lending arrangements fail to benefit society then they should be restructured or cancelled. Such financial reorganizations have been achieved many times throughout history.

PM Abiy has brought to the attention of the world, a profound underlying principle that should govern all national and international policy: the promotion of human life is supreme, monetary instruments are not.

Delaying the repayments to the Group of 20 is not enough.

By rime Minister of Ethiopia. Nobel Peace Prize Laureate, 2019

ADDIS ABABA, Ethiopia — On April 15, Group of 20 countries offered temporary relief to some of the world’s lowest-income countries by suspending debt repayments until the end of the year. It is a step in the right direction and provides an opportunity to redirect financial resources toward dealing with the coronavirus pandemic.

But if the world is to survive the punishing fallout of the pandemic and ensure that the economies of countries like mine bounce back, this initiative needs to be even more ambitious.

At the very least, the suspension of debt payments should last not just until the end of 2020 but rather until well after the pandemic is truly over. It should involve not just debt suspension but debt cancellation. Global creditors need to waive both official bilateral and commercial debt for low-income countries.

These steps need to be taken with a sense of urgency. The resources freed up will save lives and livelihoods in the short term, bring back hope and dynamism to low-income economies in the medium term and enable them to continue as the engines of sustainable global prosperity in the long term.

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. We spend 47 percent of our merchandise export revenue on debt servicing. The International Monetary Fund described Ethiopia as being at high risk of external debt distress.

The dilemma Ethiopia faces is stark: Do we continue to pay toward debt or redirect resources to save lives and livelihoods? Lives lost during the pandemic cannot be recovered; imperiled livelihoods cost more and take longer to recover.

Immediate and forceful action on debt will prevent a humanitarian disaster today and shore up our economy for tomorrow. We need to immediately divert resources from servicing debt toward responding adequately to the pandemic. We need to impede a temporary health crisis from turning into a chronic financial meltdown that could last for years, even decades.

Ethiopia must spend an extra $3 billion by the end of 2020 to address the consequences of the pandemic, while our balance of payments is set to deteriorate. Increasing health care spending is essential, irrespective of debt levels, but we have less money on hand, and much of it is due to creditors.

A moratorium on bilateral and commercial debt payments for the rest of this year will save Ethiopia $1.7 billion. Extending the moratorium till the end of 2022 would save an additional $3.5 billion.

Low income countries can use the financial resources freed up by cancellation or further deferment of debt repayments to invest in our battle against the pandemic, from providing necessary medical care to our citizens to ameliorating our financial difficulties.

In October, the I.M.F. reported that the five fastest-growing economies in the world were in sub-Saharan Africa, which includes Ethiopia. In early April, the World Bank reported that sub-Saharan Africa would face its first region wide recession in over 25 years and the region’s economy could shrink by as much as 5.1 percent.

This is not a result of bad policies, mismanagement or any other ill typically associated with developing economies. The recession will be the product of the coronavirus outbreak.

Preventing or at least minimizing the recession is critical to maintaining years of hard-won economic gains across the continent. The current moratorium in bilateral debt collection until the end of the year will help, but it won’t be enough, given the gravity of the challenge we face.

The moratorium must be extended until the coronavirus health emergency is over or canceled altogether. The creditors need to do this unconditionally.

Official bilateral creditors are no longer the principal source of external debt financing for many developing countries. Private-sector creditors, including investment banks and sovereign funds, are. They should play their part in the effort to rescue African economies from permanent paralysis with a sense of solidarity and shared responsibility. It would help avoid widespread sovereign defaults and chaos in the market.

And it would be morally indefensible if resources freed up from a moratorium in bilateral debt collections were to be used to pay private creditors instead of saving lives.

Most of our countries managed to borrow funds on the back of solid economic performance and highly promising and evidence-based development programs and trajectories. Nobody foresaw this promise being derailed by a once-in-a-century event such as the coronavirus pandemic.

Under these circumstances, there is no room for traditional arguments such as moral hazard. Low-income countries are seeking relief not because we squandered the money but because we need the resources to save lives and livelihoods.

It is in everybody’s enlightened self-interest that the borrowers be allowed breathing space to get back to relative health. The benefits of rehabilitation of the economies of the hardest-hit countries will be shared by all of us, just as the consequences of neglect will harm all of us.

Read: 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

 

 

World Needs New Economic Platform to Fight COVID-19

The World Needs A New Economic Platform to Fight COVID-19

Lawrence Freeman

April 5, 2020

Today April 5, the total cases of COVID-19-(coronavirus) in Africa are 8,536, deaths 360, and recoveries 710. On March 30, one week ago, the total cases were 4760, deaths 146, and recoveries 355. The diagram above shows the increased rate of the spread of COVID-19 across the African continent. In my March 30 article, New Economic Order Required to Combat COVID-19 in Africa, I concluded with a call for a New Just Economic Order, if humankind is going to effectively conquer the current pandemic.

We have come to a moment in the evolution of our civilization that we must acknowledge the failures of the present political-financial system. The Western-advanced sector nations, lacking an in depth and over-supplied health infrastructure have found themselves utterly unprepared to deal with the latest and most deadly zoonotic virus, COVID-19. The G-7 nations with a population of 750 million, and 39% ($34 trillion) of the world’s GDP are grabbling to muster the resources and capacity to defeat the coronavirus, while 90% of the world’s 7.5 billion people live with a frail health infrastructure, or none at all.

We have witnessed an increasing number of new zoonotic viruses (SARS, MERS, Swine Flu, HIV/AIDS) over recent decades. Humanity will only successfully defend itself by launching a global upgrading of healthcare including new scientific research into how human immune systems can become less susceptible to viruses that originate in animals.

Inadequate healthcare and impoverished living conditions in the developing sector cannot continue. It is a crime that has been perpetuated for decades, and the very survival of humanity screams out for a revolution in our thinking and practices. Ethiopian Prime Minister, Abiy Ahmed, stated eloquently the link between Africa and the advanced sector in this current crisis: “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.”  (emphasis added)  PM Abiy “If Covid-19 is not beaten in Africa it will return to haunt us all” .The virus can only be overcome in Africa, and the rest of the developing sector, if we launch a new economic system, one that values human life above servicing debt and avariciousness.

Perilous Conditions in Africa

Dr. John Nkengasong, head of the Africa Centers for Disease Control and Prevention (CDC), said that COVID-19 “is an existential threat to our continent.” The Africa CDC and the World Health Organization (WHO) do not know the actual number of Africans infected with the virus, due to a lack of ability to test the population. Nor do they have an accurate count of the number of ventilators available in each African nation. Over a month since the appearance of the coronavirus on the continent, experts estimate that Africa is at the early phase of its proliferation.

The United Nations World Food Program warned that “the coronavirus pandemic threatens to cause food shortages for hundreds of millions of people especially in Africa,” according to Naharnet. “For many poor countries, the economic consequences will be more devastating than the disease itself.” Pandemic Threatens Food In Import Reliant States

An article published by Quartz, Africa Has About One Doctor for Every 5000 People cites a report by the (WHO), that Africa in 2013 “had a deficit of estimated 1.8 million healthcare worker that is projected to rise 4.3 million by 2035.”  One reason, according to the article is that: “Currently, there are only 170 medical schools serving the 47 countries of sub-Saharan Africa. Of those countries, 6 have no medical schools, and 20 have only one medical school.”

Statistics for the number of doctors per 1,000 population for African nations are horrifying. Physicians Per 1,000 People. When Compared to the figures for advanced sector nations that are now “hot spots” for COVID-19 to those of Africa, where the incidence of the virus is weeks behind Europe and the United States, Africa’s potential death rate is frightening.

Examine these estimates: U.S. has 2.3 doctors for 1,000 people, Spain 3.2, Italy 4.2, and South Korea 1.8. The average for sub-Saharan Africa (SSA) has an absurdly low 0.21 doctors for 1,000 people. Twenty SSA nations have .08 doctors or less to treat 1,000 of their citizens, with several at levels of 0.03 and 0.02 doctors. Two orders of magnitude less physicians than the nations that today are experiencing the highest mortality rates.

Governor Cuomo of New York, and Mayor de Blasio of New York City beg every day for more healthcare professionals, ventilators and PPEs (Personal Protective Equipment) to deal with the overload of coronavirus cases, Imagine what the potential death rate of Africa’s almost 1.5 billion population could be when one factors in extreme levels of poverty, weakened immune systems, and malnourishment, all prevalent on the African continent.

(Courtesy of SlideShare)

UNCTAD’s $2.5 Trillion Strategy

The March 30, 2020, statement by the United Nations Conference on Trade and DevelopmentUNCTADUN Calls for $2.5 Trillion Coronavirus Crisis Package for Developing Countries  is excerpted below.

“The consequences of a combined health pandemic and a global recession will be catastrophic for many developing countries and halt their progress towards the Sustainable Development Goals.”

UNCTAD’S strategy includes:

  • $1 trillion of debts owed by developing countries should be cancelled this year
  • $500 billion needed to fund a Marshall Plan for health recovery and dispersed as grants

Credit for a New Economic Order

Debt cancellation, and a Marshall Plan to build up health infrastructure for the developing sector nations are crucial for the survival of emerging nations. However, to break from the old political-financial system that has failed us, and to create a new economic platform, we must create credit for physical economic growth.

What is missing from UNCTAD’s proposal, and what is absent from all United Nations strategies, is the understanding of the importance of establishing a mechanism for the creation of credit. Following in the footsteps of President George Washington and his brilliant Secretary of the Treasury, Alexander Hamilton, we should establish a National Credit Bank. Nations Must Study Alexander Hamilton’s Principles of Political Economy. Wisely, the US Constitution provides for the federal government, not the states, to issue public credit to promote the general welfare.

Credit for production and infrastructure, unlike mere money, is the sine qua non for any healthy economy. This is not the same as printing trillions of dollars of money to bail out an over extended monetary system with a bubble of over one quadrillion of dollars in debt and derivatives.

Debts of developing sector nations must be cancelled to clear the decks for the issuance of new credit directed to fostering industrialized economies with healthy agricultural and manufacturing sectors. Extended credit with low interest rates must be issued for long term investments in vital construction of infrastructure. This is a life and death matter for the very survival of African nations.

Every government is obliged to create a national bank for the sole purpose of generating physical economic growth critical for the security and future health of that nation. Instead of relying on the present global financial institutions that dictate loan agreements at unnecessarily high interest rates coupled with arduous conditionalities we should create a new global economic system. One founded on the principles that promote the true shared common good for all nations and all peoples. Under this new system sovereignty is inviolate, and trade and credit agreements are premised on improving the material conditions of life for the people of those nations. All political and economic relationships between nations should be to benefit the general welfare of its citizenry.

Human beings are sacred, financial systems are not. We can and should craft new monetary systems to advance progress, not monetary profits. President Franklin Roosevelt created the Bretton Woods System, with the intention of uplifting the planet from the misery of World War II. He had magnificent ideas for promoting economic growth around the world, including greening the deserts of Africa.  Sadly, after his death, Bretton Woods was perverted, and became the opposite of what he intended.

While we must fight this deadly virus with all the resources that governments can assemble, we need to also think to the future; the creation of a more advanced economic platform. It is up to us create a new architype of relationships among sovereign nation states to transform the world out of the ashes of its present decayed state. Let us call this new paradigm by its proper name–A New Just World Economic Order

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

 

The United States’ Economy and Culture Are Shrinking

The article below discusses the physical effects on the US population of the shrinking of America’s economy and culture over many years. The USA was founded on profound principles still valid today. However, the absence of quality leadership, and a population conditioned by news headlines has led to our decline.  America needs a statesman with a bold vision of the future and the will to implement it. Presently, neither exist.

December 1, 2019

Deindustrialization is Killing America

 

Yes, Chinese engagement is helping Africa’s industrialization

A worker at the Chinese-built Bole Lemi Industrial Park in Addis Ababa, capital of Ethiopia, April 6, 2017. (Xinhua/Michael Tewelde)

November 22, 2019

Chinese engagement helps Africa’s industrialization: ITC executive director

Speaking to Xinhua on Wednesday, November 20, Arancha Gonzalez, Executive Director of the International Trade Center-(ITC), empathized China’s growing engagement and interest in Africa’s existing and emerging potential was driving the continent’s industrialization.

“China has focused a lot of attention to the industrialization of the African continent,” the ITC Executive Director told Xinhua on the sidelines of the Africa Industrialization Day commemoration event, which was marked on Wednesday at the headquarters of the African Union (AU) Commission in the Ethiopian capital Addis Ababa.

“It (China) has focused a lot in manufacturing,” Gonzalez said, as she emphasized other emerging potential areas in the industry sector that are benefiting from and attracting Chinese engagement across Africa.

“First, I think now there is interesting opportunity that is coming in two other sectors, one is agro-processing, so helping Africa transform a lot of the raw materials, agricultural commodities that this continent produces into processed products.

The continental industrialization day was commemorated as part of the AU Commission’s flagship Africa Industrialization Week (AIW-2019), which is underway from November 18 to 22. The AIW-2019 also emphasized the crucial role of industrial parks and Special Economic Zones (SEZs)to drive Africa’s industrialization.
Continue Reading: Chinese engagement helps Africa’s industrialization

China & Russia-Africa Leads to Economic Growth; Not Debt Trap

Below you will read about the success of the second segment of Kenya’s Standard Gauge Railroad, and President President Cyril Ramaphosa’s firm refutation of allegations that a number of countries in Africa are being led into a debt trap by China and Russia

November 2, 2019

“Proponents of the New Paradigm in Africa have a new milestone to celebrate, with the opening of a new segment of the Mombasa-Kisumu Standard Gauge Rail (SGR) line in Kenya. On October 16, Kenyan President Uhuru Kenyatta led a celebration to open Segment 2A, a 120 kilometer (75 mile) extension from the capital (and current terminus) of Nairobi, to Naivasha, a large town northwest of the capital. Opening of this—admittedly rather short—segment nonetheless brings the SGR project one step closer to its planned destination: Kampala, the capital city of neighboring, landlocked Uganda.”

Stunning Progress

Kenya’s SGR project, the most advanced in Sub-Saharan Africa, began in 2014, when the country began construction of a modern, standard gauge (1.435 meter) rail line from the port of Mombasa on the Indian Ocean, northwest to the nation’s capital of Nairobi, a distance of 450 km (275 mi). Opened in 2017, on Madaraka Day—Kenyan Independence Day, when the people took political control of their destiny from the British Empire on June 1, 1963— the rail line has been a huge success, cutting transport and delivery time significantly for both goods and people. Exceeding expectations, the railway transported two million passengers within its first 17 months; and in 2018, its first full year of operation, carried over 5 million tons of freight.

The Mombasa-Nairobi line was initiated in 2009 discussion between the China Road and Bridge Corporation and the Kenyan government, as reported by P.D. Lawson in the April 27, 2018 EIR. China’s Exim Bank extended credit for 90% of the project. By May 2016, initial track laying was completed in just over 1 year. Passenger service was opened May 31, 2017, eighteen months ahead of schedule. Freight services commenced in January 2018. Plans are now underway to electrify the segment from Mombasa to Nairobi, which will greatly lower operating costs.

Benefits of the new, faster technology now extend far beyond mere transport, where the railway has taken hundreds of trucks (and buses) off the notoriously congested highways, making them safer and more useable for the population.

With the increased capacity and speed of freight transport, Kenya’s exports to the East African Community (including neighboring states Uganda, Tanzania and South Sudan) have hit a three-year high in the first eight months of 2019. Not only have government earnings from domestically produced goods increased 6% compared to 2018, but Kenya’s domestic consumption of electricity—certainly not a nation known for its over consumption of this resource—has increased 3.2% in the first 8 months of 2019.

Uhuru Kenyatta, President of the Republic of Kenya.
President Kenyatta has launched additional infrastructure projects, building on the Kenya Vision 2030 plan. In addition to the opening of SGR Section 2A on October 16, he has announced plans for construction of an inland container depot (ICD) at Naivasha (to store or transfer goods from rail to truck, or from SGR to the old meter gauge rail, MGR); a new 23 km expressway in Nairobi; and a water project in rural Kimuku (stemming from a natural spring accidentally discovered during construction of the rail line!). He wants to create a Special Economic Zone—to include the port of Mombasa—to further speed up freight delivery.

EIR magazine, Nov. 1, 2019: “Kenyan Standard Gauge Successful in Looking Beyond the Here and Now

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NEWS October 28, 2019

Russia-Africa Summit: African countries not being led into debt trap —South Africa’s Ramaphosa

President Cyril Ramaphosa on Monday refuted allegations that a number of countries in Africa are being led into a debt trap as they take up loans to fund a number of projects.

Ramaphosa said this during his weekly address from the Desk of the President in Cape Town, after returning from the Russia-Africa Summit held in Sochi last week.

“One need only look at initiatives such as the Forum on China-Africa Cooperation, which was last held in Beijing in 2018, to see that the focus is now on partnership for mutual benefit, on development, trade and investment cooperation and integration,” Ramaphosa said.

He lambasted remarks which label initiatives like the recent Russia-Africa Summit as an attempt by world powers to expand their geopolitical influence. African countries had taken part in the  summit to discuss ways of how to increase trade and cooperation between Russia and Africa. He said the summit was a sign of the growing economic importance of Africa on the world stage.

“What we are witnessing is a dramatic re-balancing of the relationship between the world’s advanced economies and the African continent,” he said.

African countries have consistently affirmed that Africa no longer wants to be passive recipients of foreign aid, said Ramaphosa. The president said African countries are developing and their economies are increasingly in need of foreign direct investment.

“We are ever mindful of our colonial history, where the economies of Europe were able to industrialize and develop by extracting resources from Africa, all the while leaving the colonies underdeveloped,” said Ramaphosa.

Even now, African countries are still trying to stop the extraction of its resources, this time in the form of illicit financial flows through commercial transactions, tax evasion, transfer pricing and illegal activities that cost the continent more than 50 billion dollars a year, according to Ramaphosa. The age where “development” was imposed from outside without taking into account the material conditions and respective requirements of our countries is now past, the president said.

“China, Russia, Organisation for Economic Cooperation and Development countries and other large economies are eager to forge greater economic ties with African countries. “This is because they want to harness the current climate of reform, the deepening of good governance, macro-economic stability and the opening up of economies across the continent for mutual benefit,” the president said.

 

Nuclear Energy Will Create Jobs and Raise Skill Levels in Africa

Left-Claver Gatet, Rwanda Minister of Infrastructure. Right-Alexy Likacheve, Director General of Rosatrom. Speaking at the Russia-Africa Summit in Sochi.

October 27, 2019

The article below from {World Nuclear News}, reports on important agreements with Russia to build nuclear power plants in Africa. Beyond providing energy, nuclear plants will provide jobs and new shill levels for the tens of million of young Africans entering the work force.  Along with China, Russia is assisting African nations in building vitally needed infrastructure, which they need to become industrialized, with productive manufacturing and agriculture sectors. This is very good news for the African continent.

Read: Nuclear Energy Can Bridge the Skills Gap in Africa

Excerpts below:

Speaking at the round table session titled The Contribution of Nuclear Technologies in the Development of Africa,  Alexey Likhachov  said:.

“We are talking about solutions related to raising the level of education, energy security, applying nuclear solutions to medicine, agriculture, as well as other scientific research and development. Every dollar invested in our projects in any country, brings two dollars in localisation to that country. This significantly increases the country’s GDP.”

Rosatom said a job is created for every 0.5 MWe of electricity produced at a nuclear power plant, meaning that a 1000 MWe plant provides employment for more than 2000 people. Human capital development is both “a condition and a consequence” of nuclear power plant construction projects, it added.

Through joint educational programmes, the Russian state nuclear corporation is attracting applicants from African countries to its partner universities in Russia, it said, and Rosatom has already awarded up to 50 scholarships to students from Rwanda and Zambia. They are among hundreds of other African students from countries such as Algeria, Egypt, Ethiopia, Kenya, Nigeria and South Africa, it added.

Development

Claver Gatete, Rwanda’s minister of infrastructure, said: “In order to grow our industries from 17% GDP to 30% GDP, and to achieve our ambition of becoming a high-income country by 2050, we want to take advantage of nuclear to enhance our socio-economic development.” Rwanda sees a clear link, he said, between nuclear technologies and the country’s vision of development.

Citing data from the World Economic Forum, Rosatom noted that 15 to 20 million young people are to enter Africa’s workforce in the next two decades, meaning that 15% of the world’s working-age population will be in Africa, with 60% under-25.”

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Glazyev Warns Africans About IMF Looting Policies

The Russian economist Sergei Glazyev, who was for years an economic adviser to President Putin and is today minister in charge of integration with the Eurasian Economic Union, spoke to the gathered leaders at the Russia-Africa forum
in Sochi, and warned them about the policies of the International Monetary Fund (IMF). According to Moscow Times, Glazyev reported that IMF policies had led to about $1 trillion in capital flight from Russia, and another $1 trillion or so from the other 14 post-Soviet countries over the last 30 years.

Glazyev said the IMF has adopted a similar approach in Africa as the former Soviet Union. “Of course, Africa has been exploited for much longer. We have been living in this financial and economic environment for only 30 years.” Moscow Times added that “Glazyev also advised African countries to keep full control over their natural resources and infrastructure, in line with his advocacy in Moscow for greater economic self-sufficiency.”

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

The Chinese-African built railroad from Addis-Ababa to Djibouti has been a success, as I knew it would. Inaugurated in October 2016, it has  allowed Ethiopia to effectively overcome being a landlocked nation. Railroads increase productivity, create growth, build cities, and establish new manufacturing-agricultural centers. Africa will be transformed-industrialized when it is able to generate hundreds of thousands of megawatts of electricity and build tens of thousands of kilometers of rail lines connecting major capitals, cities, and ports across the continent. Ethiopia has been a leader in economic growth by investing in vitally needed infrastructure, such as the Grand Ethiopian Renaissance Dam-GERD, to begin operation in late 2020.

Railroads across Ethiopia will increase its import and export capability.

Roundup: Ethiopia-Djibouti railway adds impetus to Ethiopia’s agricultural economy

ADDIS ABABA, Oct. 18 (Xinhua) — The Chinese-built Ethiopia-Djibouti railway has won acclaim for facilitating landlocked Ethiopia’s import-export necessities.

For the past more than one year, it has transported much-needed agricultural inputs to Ethiopia’s agriculture-dominated economy.

Tilahun Sarka, Director-General of Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR), said in a recent interview with Xinhua that the 752 km-long Africa’s first transnational electrified railway is leveraging the smooth transportation of Ethiopia’s major import and export commodities, mainly fertilizer and wheat.

“The railway is showing major progress in terms of facilitating Ethiopia’s basic import-export activities as it significantly reduced both the travel cost and time from landlocked Ethiopia to ports in its neighboring Djibouti,” Sarka told Xinhua.

The Ethiopia-Djibouti railway commenced its commercial operations for both passenger and freight services in January last year, eventually connecting landlocked Ethiopia to ports in the Red Sea nation of Djibouti.

The EDR director underscored the railway’s achievements over the past one and a half years, with particular emphasis on easing the pressure in transporting the much-needed imported agricultural and food security inputs, mainly fertilizer and wheat, from ports in Djibouti all the way to the Lebu Railway Station on the outskirts of the Ethiopian capital Addis Ababa.

Figures from ERD show that the Ethiopia-Djibouti railway has been able to carry more than 70,000 tons of fertilizer from the Djibouti port to Ethiopia over the past few months, as the East African country embarked with its main harvesting season since May.

“Fertilizer is a very important commodity to Ethiopia’s socio-economic well-being,” Sarka said, adding “It is by far considered as a major imported priority item by the Ethiopian government.”

Ethiopia – Africa’s second populous nation with about 109 million total population, according to the World Bank’s latest report – is an agrarian economy.

The UN Food and Agriculture Organization (FAO), which described Ethiopia as “one of the top-performing economies in Sub-Saharan Africa with an average growth rate of 11 percent over the last seven years,” dubbed the agriculture sector as “the mainstay of the Ethiopian economy, and exports almost entirely relies on agricultural commodities.”

Sarka, who dubbed fertilizer as a “political cargo,” also said that “a failure to import the much-needed fertilizer would adversely affect Ethiopia’s overall security, as far as igniting public uproar against the Ethiopian government.

Sarka also emphasized the joint Ethiopian government and EDR’s future plan that envisaged “to significantly boost the railway’s share in the transportation of fertilizer to the country.”

“Both the Ethiopian government and EDR give particular emphasis to the smooth transportation of fertilizers from the Djibouti port to Ethiopia, as well as the export of other export-bound agricultural commodities from Addis Ababa and other parts of Ethiopia to the port,” Sarka said.

Ethiopia imported a total of about 1.3 million tons of fertilizer during the just-concluded Ethiopian 2018-2019 fiscal year, according to figures from the Ethiopian government.

Built by two Chinese companies, the first 320-km of the project from Sebeta to Mieso was carried out by the China Railway Group Limited (CREC), while the remaining 423-km from Mieso to Djibouti port section was built by the China Civil Engineering Construction Corporation (CCECC).

The Ethiopia-Djibouti railway is presently managed by a consortium of Chinese companies – CREC and CCECC – for a period of six years undertaking railway operation and maintenance management activities.

According to Sarka, the six-year contract was given to the two Chinese firms mainly due to the shortage of electrified railway operation and management experience in the two involved countries.

Ethiopia-Djibouti Railway