Despite Claims From the West: Report Reveals That China’s Africa Infrastructure Projects are Reducing Economic Inequalities

 

China’s New Silk Road/Belt Road Initiative is developing many parts of the world with infrastructure that are yielding positive economic results .

Chinese Investments in Developing Sector Decrease Inequality

December 12, 2018

A study done by the AidData institute at William and Mary College in Virginia showed that China’s investments in the developing sector between 2000 and 2014, unlike many western investments, reduce economic inequality in the targeted countries.

Financed by the UN, the Singapore Ministry of Education, the German Research Foundation, USAID, and several other foundations, the study collected data on Chinese projects in 138 countries, concluding: “We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between sub-national localities,” and “produce positive economic spillover that leads to a more equal distribution of economic activity.”

“Beijing has demonstrated that it is  both willing and able to address the unmet infrastructure financing needs of developing countries. These development projects—in particular, investments in highways, railways, roads, bridges, tunnels, and ports—could strengthen economic ties between rural and urban areas and thereby help to spread the benefits of economic growth to more remote and traditionally disadvantaged areas.”

“The findings from the study are encouraging: Chinese development projects—in particular, “connective infrastructure” projects like roads and bridges—are found to create a more equal distribution of economic activity within the provinces and districts where they were located.”

Read the article with a link to the report

 

 

Africa’s Infrastructure Deficit Is Literally Killing Its People

Below are slides from my 14 hour course: “The legacy of Slavery and Colonialism in Africa” that I am presently teaching at Frederick Community college in Maryland.

They clearly demonstrates the huge deficit in Africa for two vital areas of hard infrastructure; energy and rail. The colonialists and the neo-colonial policies by Western nations and their financial institutions following the liberation of African nations, opposed building infrastructure in Africa. Only now over the last decade are hard infrastructure projects being constructed in Africa in collaboration with China. These pictures below juxtapose the present conditions to the what is possible and should be what the future looks like. This is the focus of my activity.

Energy: Reliable estimates are that 1 billion Africans are living in sub-Sahara Africa on a mere 100,000 megawatts of power with almost 40% of that generated by South Africa. Africans are forced to live in areas on less than 100 watts per person. Compare that to Americans who have thousands of watts available for daily consumption 365 days a year. Approximately 600 millions Africans do not have access to an electrical grid. Africa needs thousands of additional gigawatts of electricity to power advanced economies.

Rail: Africa needs hundreds of thousands of kilometers of modern rail lines. All major cities in Africa should be connect by high-speed rail. There should have been East-West and North-South railroads decades ago. This is essential for economic growth.

Africa is the next frontier of development, and can be center of economic activity in the world in two generations. This requires a full-scale commitment to build transformative infrastructure projects throughout the continent NOW!. If we do, Africa’s future will be bright.

 

Colonial railroads compared to what is minimally required.

 

 

President Buhari Continues to Call for Inter-Basin Water Transfer to Save Lake Chad

Nigerian President, Muhammadu Buhari continues to call for an inter-basin water transfer from the Congo River Basin to save the shrinking Lake Chad. The project he is referring to is Transaqua, which was adopted at the International conference to Save Lake Chad in Abuja in February. Transaqua is a transformative infrastructure project will potentially affect 12 African nations in the Great Lakes region and Lake Chad Basin. I have been an advocate of this project for many years and was able to discuss it with President Buhari shortly after he was elected in March 2015.  Funding for a feasibility study of Transaqua is being negotiated now with the Italian government. It is in the interest of all African nations, the African Union, and Africa Development bank to support this project. In the words of the former Executive Secretary of the Lake chad Basin Commission: “The loss of Lake Chad would be a catastrophe for Africa.” 

We will continue to keep Lake Chad issues on front burner says President Buhari

The Sun Nigeria
Juliana Taiwo-Obalonye, Abuja

President Muhammadu Buhari, has stressed that his administration will continue to keep the issue of reviving the Lake Chad on the front burner and exert more commitment from the developed countries to do the needful.

He stated this during a courtesy visit by the Nigerian Conservation Foundation (NCF) and his investiture as Patron of the Foundation, President Buhari said it was regrettable that the issue of the receding Lake Chad had not been addressed till recent times.

‘‘The problem of climate change is real. The desert encroachment is aggravating it. The population explosion in Nigeria is another big challenge.

‘‘The drying up of Lake Chad is a serious thing for Nigeria and the Lake Chad Basin countries. Nigeria is much more affected because fishing, animal husbandry and farming are affected very seriously.

‘‘We are trying to prick the conscience of the developed countries that have the resources and the technology to quickly execute the inter basin transfer from Congo Basin to Chad Basin,” he said.

In a statement by the Special Adviser to the President on Media and Publicity, Femi Adesina, said Buhari also welcomed the advocacy by the Foundation on the need to protect endangered plants and animals in the country.

To this end, he directed the Federal Ministry of Environment to reflect this in its budgetary requirements in the next fiscal year, adding; “the rate at which animals are being hunted and eliminated around the country, we must seriously give the forest reserves our support and attention as much as we can.”

Earlier in his remarks, Alhaji Ahmed Joda, Member, Board of Trustees of the Foundation told the President that the nation’s wildlife was fast becoming extinct.

He added that for more than 10 years, the rate of deforestation in Nigeria has been one of the highest in the world with the country losing close to 95 per cent of its original forest cover.

He thanked the President for placing great emphasis on environmental issues, especially the aspect of climate change, and invited him to take charge of ‘Greening Nigeria.’

“We are all proud of the role that the Nigerian delegation headed by Mr President played during the climate change agreement in Paris and your single-minded determination to keep the issue in the front burner both at home and abroad.

“Your Government has also recorded remarkable achievements in addressing soil erosion with about 60 projects executed by the Ecological Funds all over Nigeria.

“This is not surprising when we remember that it was you, in your first coming as Head of State, that signed the first comprehensive law that addressed the protection of endangered plants and animals in Nigeria through the ‘Endangered Species Decree of 1985’, Joda said.

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‘Investigate or Legislate’: What Will the Democrats in Control of the House of Representatives Do?

With control of the House of Representatives, the Democrats have the opportunity to provide leadership for the United States. They will have to decide. Do they want to make their primary focus attacking President Donald Tramp, by continuing their impotent investigation of his alleged collusion with Russia in the 2016 election? Or will they actually provide a vision for the future of the USA, by enacting bold new legislation.  Any attempt to impeach President Trump would be a farce that would virtually ensure the Democrats would be defeated in the 2020 presidential election.

President Trump has demonstrated that he lacks a comprehensive understanding of the scientific principles that created the USA. He has also displayed an unAmerican phobia to non-white foreigners from a multitude of countries arriving in the USA.  However, President Trump has distinguished himself in forming a close relationship with the President of China, Xi Xinping. He has also attempted to establish a working relationship with the President of Russia, Vladimir Putin. To the detriment of the USA (and the world) many Democrats, along with some members of his own administration, have adamantly opposed these positive initiatives by President Trump. President Trump has many shortcomings, but to his credit, he is not an ideologue, and he is not a devout follower of the geo-political doctrine on foreign policy. If President Trump took the audacious step to partner with China’s Belt and Road Initiative, the world could be transformed.

Important polices must be implemented now to provide for the welfare of our citizens, which will require bipartisan action in the Congress. For example. Both the Republican and Democratic parties have made verbal commitments to support a Glass Steagall banking reorganization, yet no action has been taken by the Congress or this administration. Another opportunity for bipartisanship would be the passage of legislation for a transformative infrastructure plan to rebuild the USA.

Below is a useful article discussing how President Trump working with the Congress could fund large-scale infrastructure projects. 

A New Opportunity for a National Infrastructure Agenda?

Nov. 7, 2018—One thing is definitive about the results of the U.S. mid-term elections: Neither political party put a solution to the country’s economic and financial disaster on the national agenda.  That doesn’t mean that many of the new Democratic members of Congress don’t have a strong commitment to address the economic crisis, however. They can potentially galvanize the veteran Congressmen into action. The question is, will competent, workable proposals be put on the table in the 116th Congress?

Statements from President Trump and the putative incoming House Speaker Nancy Pelosi in the immediate aftermath of the election were notable for addressing the possibility of bipartisan progress on infrastructure. Both statements were quite vague, however—and, as some will recall, Trump has offered cooperation on infrastructure before. One need only look at his current blackballing of the New York City Gateway project to see how hollow that promise was.

Rep. DeFazio in his campaign photo.

More substantive have been remarks from the incoming chairmen of two House committees. Rep. Peter DeFazio (D-OR) is expected to take over the Transportation and Infrastructure Committee. According to a Nov. 7 Reutersarticle, DeFazio is prepared to put forward his previous proposal for a $500 billion plan, which would involve issuing 30-year bonds, using funds from  raising gas taxes. He believes Trump would accept an increase in the gas tax.

“There has to be real money, real investment,” DeFazio said today. “We’re not going to do pretend stuff like asset recycling. We’re not going to do massive privatization.”

Rep. John Yarmuth (D-KY), who is slated to take over the House Budget Committee, addressed the infrastructure question a few days before the election, according to an Oct. 30 Politico Pro article. He said he would be making a proposal which “involves some very long-term bonding authority that would help finance an infrastructure bank.”

The Issue of Funding

The inevitable sticking point in Congressional discussions of an adequate infrastructure bill—which should ultimately amount to spending trillions of dollars to meet the infrastructure deficit—will be funding. President Trump has already indicated his preference for off-loading the cost to local and state governments, and proposes to even cut the Federal contribution from today’s 80% to 20%. That’s a formula for non-action. The Democratic plans have not been specific.

The danger lies in a potential “compromise” that pushes Public Private Partnerships (PPPs) as the solution to the funding dilemma. PPPs are presented as a means of reducing, or eliminating, public costs, by contracting with private companies to either build, manage, or both the needed element of infrastructure. The claim is that the private company can do the job cheaper and more efficiently, and the public will benefit.

Moving ahead on Gateway would be a good place to start.

Not so fast. First, some of the cheapness comes at the cost of labor—by violation of Davis-Bacon standards–and quality. Secondly, private contractors only enter PPP agreements on the guarantee that they will receive a revenue stream to cover their costs, and provide a profit. This can amount to tolls on a road, water bills for a water company, and the like. And if the stream doesn’t provide what the company considers adequate profit, what will it do?  Cut maintenance? Cut off people’s water supply? Both results have occurred! And they are unacceptable.

So, forget PPPs. The solution lies in taking the lead from Franklin Roosevelt and Alexander Hamilton. The Federal government has a unique capability (and responsibility) to create credit to modernize and rebuild our infrastructure. That credit can in fact be issued by turning current (virtually non-performing) government debt into bonds supporting an infrastructure bank, against which it would then issue new loans to help finance the long overdue infrastructure projects.  These would not only be short-term, but also long-term projects, such as the Gateway Project, California High Speed Rail, and the desperately needed water projects in the nation’s interior, for starters.  If the right projects are selected, the infrastructure constructed will pay back more to the economy in increased productivity than is expended–as well as creating millions of new, high-paying jobs.

For a modern proposal for such an infrastructure bank, click here

 

Nigerian President Buhari Wants Europe, and US to Help Recharge Lake Chad

Nigeria and Sub-Saharan Africa Should NOT Have the Majority of Poor People.

President Buhari is right and should be commended for requesting that Europe and the United States help in recharging the shrinking Lake Chad, which is at 2,000 square kilometers-less than 10% of its area in 1963.  At the Abuja conference to Save Lake Chad in February, organized by President Buhari, the Transaqua inter-basin water transfer project was adopted as the solution to saving Lake Chad.  Transaqua is a transformative water infrastructure project that would connect the nations of the Great Lakes and the Lake Chad Basin through a 2,400 kilometer canal. Thus creating a new platform for expanded trade and commerce between these economies. Unlike the US and Europe politicians, who feign concern about the migrant crisis, President Buhari and other African leaders understand that the best way to prevent Africans from risking their lives crossing the Mediterranean is; to create economic growth in the Sahel/Sahara. After decades of inaction, the Italian government has given the Lake Chad Basin Commission 1.5 million Euros to begin a feasibility study by Bonifica, the Italian engineering company that created the Transaqua design over 35 years ago.  I have advocated the Transaqua project for over 20 years, and was able to discuss it with then President-elect Buhari a few days after his election in March 2015. It is most unfortunate that with the single exception of the current Italian government, Western leaders have failed to invest in major infrastructure projects like Transaqua that will generate economic growth in African nations. Let us hope that Western institutions act appropriately to President Buhari ‘s request to help recharge Lake Chad; a vital body of water in Africa’s desert. 

Buhari Wants Europe, US to Help Recharge Lake Chad

President Buhari
  • It would be the greatest western investment in Africa

By Omololu Ogunmade in Abuja

President Muhammadu Buhari yesterday in Abuja said the greatest investment Europe and the United States could make in Africa now was to help in accomplishing inter-basin water transfer to recharge the Lake Chad.

Receiving the Chairman of the African Union Commission, Mr. Moussa Faki Mahamat, in the State House, Buhari recalled how the Lake Chad had served as the source of livelihood for millions of West African citizens in the past.

Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, said the president listed countries which benefitted immensely from the lake in its productive years as Chad, Cameroon, Niger and Nigeria.

The president, according to the statement, also noted that Lake Chad  had now shrunk to 10 per cent of its initial size as a result of the huge impact of climate change.

He was quoted as saying, “People who depended on the Lake for fishing, farming, animal husbandry, and many others, have been thrown into dire straits.

“That is one of the reasons youths now dare the Sahara Desert and the Mediterranean Sea, to seek greener pastures in Europe. But helping to recharge Lake Chad will help a great deal in curbing irregular migration.”

The statement added that Buhari observed that the size of Nigeria and resources available there-in placed a lot of responsibilities on the country’s shoulders and pledged that the country would continue to fulfill its obligations to the African Union (AU).

Adesina further quoted the president as saying, “At all international fora, we emphasise the matter of Lake Chad. We also talk about the influx of small arms from the Sahel, which worsens the security situation between herders and stagnant farmers. We will keep the issues on the front burners.”

Furthermore, the statement added that Mahamat, in his remarks, praised Buhari, saying his leadership has been good for Nigeria, the AU, and Africa in general.

“He added that the next AU summit would look into the reform of the AU Commission, positioning the AU and Africa in the world, Single Air Transport Market, the Africa Continental Free Trade Area, and other issues,” the statement added.

Read:  Save Lake Chad With Transaqua: Presidents Roosevelt and Nkrumah Would Concur, by Lawrence Freeman

 

Nigeria and Sub-Saharan Africa Should NOT Have the Majority of Poor People.

This  is absolutely unacceptable. There is no objective reason for Nigeria and Sub-Saharan Africa to have the highest percentage of poor people in the world, with all its natural resources and people. This is the result of failed policies that began with the so called “Washington Consensus” beginning in the 1980s. Under the International Monetary Fund’s diktats and Structural Adjustment Programs(SAPs), the economies of African nations were destroyed and many have still not recovered.  African nations are beginning to follow a different model in collaboration with China’s Belt and Road Initiative. The IMF and World Bank models which measure statistical monetary aggregates ignore the most essential ingredient necessary to create economic growth: technologically advanced infrastructure platforms, integrating rail, energy, water, and roads. Only in the last ten years is infrastructure finally being built, after it was outlawed under colonialism and neo-colonialism, (except for roads and rail for resource to port and transporting colonial soldiers).  For example, the Sudanese people are suffering terribly from a lack of economic growth, because Sudan has been threatened not to deviate from IMF dictated macro-economic parameters. The Sudanese people will rebel, if Sudan continues to adhere to the murderous policies of the so called “free market.”

It is time for African nations to over throw the old model and break free from the monetarist grip of the IMF and WB. Inclusive growth, as it is called, will only happen when there is improvement in the real-physical economy. 

It is projected that by 2050 Nigeria will have 400 million people and Africa as a whole 2.4 billion. Despite the hysteria of the “zero-growthers,” Nigeria and Africa are not suffering from over population, but underdevelopment of its vast wealth. Each new human born can be a new source of wealth, if their creative potential is nurtured and developed. Thus, the Africa continent  with its projected large population, should become the center development (not poverty) of world economy, if we act now to massively expand infrastructure across the continent.

Nigeria to host 90% of extremely poor by 2030, says World Bank

The Debate On China’s Role In Africa; A Different Point Of View

The Council of African Security and Development-CASADE has published my article regarding the debate over whether China is forcing African nations into a new ‘debt trap.’ Despite the propaganda from some Africans and Westerners, China is not the new imperialist in Africa. You can read my analysis below.

CASADE: COUNCIL ON AFRICAN SECURITY AND DEVELOPMENT

 

 

 

Ghana’s Unrealized Potential and Nkrumah’s Fight vs the British

I addressed a Ghanaian  organization in NYC several years ago. I discussed the unrealized potential of Ghana and Kwame Nkrumah’s fight against the British. Since then I have parted company with EIR magazine, but my analysis remains truthful. 

 

 

US-China ‘Trade War’: What Implications For Nigeria?

My comments on the potential effects for Nigeria and Africa from a trade war between the US and China are quoted below in an article by “The Herald” a national Nigerian newspaper. (Not all of my comments are reported with complete accuracy)

The Herald Nigeria

US-China ‘Trade War’: What Implications For Nigeria?

The escalating trade disputes between the United States (U.S) and China have kept the global markets on their toes with uncertainties pervading the global economy and implications for other countries.

Analysts say the trade tensions between the world’s two largest economies portend consequences in commercial relations among countries as it has repercussions in differing degrees for some of these countries.

China constituted U.S. largest supplier of imported goods worth more than 500 billion dollars in 2017 while U.S. exports to China was approximately 185 billion dollars at the same time

However, U.S. President Donald Trump imposed varying degrees of tariffs on billions of dollars worth of Chinese products starting early 2018 and China also retaliated with its own tariffs on U.S. goods.

Since then, both countries have engaged in full-blown tit-for-tat measures that have unsettles the global markets in different degrees, which is gradually manifesting to a full-blown trade war.

Political-economists express concerns that African countries could be hit because of the global network of economies in that what affects the U.S. and China’s economies affects the entire global economy.

They say for instance, the impact was largely felt on the stock markets in Nigeria, Kenya and South Africa – with Nigeria and South Africa being the two largest economies on the continent.

Mr Lawrence Freeman, a U.S.-based Political-Economist Analysts for Africa, said that the trade war brewing between the two world superpowers could have dire economic consequences for Nigeria.

Freeman said: “If President Trumps precipitates a full-blown tariff war; it could disrupt the world economy, inflict financial penalties on China, and undermine China’s currency.

“This could lead to harmful effects for Nigeria, since both nations are coordinating currency transfers and have worked together to improve, Nigeria’s agriculture with billions of dollars of investment’’.

He opined that Trump’s trade war with China has serious political, economic, and even military implications for all nations of the world, alleging he {Trump} has little understanding of how an economy functions, and how to achieve real economic growth.

Trump is a follower of the myth of free-trade “buy low-sell dear” without regard for the economic security of a nation.

“For example, in the most recent meeting between Presidents Trump and Muhammadu Buhari, Trump proposed increasing the sale of U.S. agricultural products to Nigeria.

“This is the absolutely wrong approach. Nigeria should be reducing the amount of food imports by building up its agro-manufacturing sectors,’’ Freeman said.

Freeman also said that China, on the other hand, has embarked on an economically healthy policy of investing in infrastructure in Nigeria and Africa to drive economic growth, as evident in the Belt and Road Initiative.

According to him, Nigeria, like the rest of the African, needs massive investment in hard and soft infrastructure.

He noted that in collaboration with China, Nigeria is building railroads across the country for the first time since colonialism, observing further that this, with increasing energy production, “is essential for Nigeria to develop and achieve stability.

“President Trump should be more thoughtful in helping Nigeria overcome its huge infrastructure deficit, by joining China in expanding the BRI in Nigeria and across Africa.

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Africa Needs Tractors, Nigeria (and Africa) Need Energy Too

{For Africa to provide jobs and feed its growing population, it needs energy and tractors to build a robust agricultural-manufacturing sector. Africa’s population is expected to double to 2.4 billion by 2050. If African nations massively invest NOW in infrastructure and industrialize their economies, the African continent can become the center of the world economy in two generations.}

Tractors Needed in Africa to Boost Agricultural Output

Oct. 8, 2018– The {Frankfurter Allgemeine Zeitung}-(FAZ) has discovered that agricultural output in African countries would be much higher if the farmers there had tractors to work their land, instead of using wooden ploughs and oxen to pull them. The output would be five to ten times higher, experts told {FAZ}. Swiss globalization critic Jean Ziegler said already in 2013 that the entire African continent had only 85,000 tractors in 2011, while Germany alone had almost 2 million tractors.

One problem faced by African farmers is that, with their miserable income, they cannot afford to buy tractors and other agricultural machinery on the world markets; not even the simple tractor models produced by Brazil’s AGCO, which have no fancy equipment and no GPS and cost only $10,000. Another problem is that tractors need diesel fuel, which is not available in such volumes in most parts of Africa because the transportation and storage infrastructure isn’t there.

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“Xi Jinping lends support to Nigeria’s long delayed $6 billion Mambilla dam”

View image on Twitter

Plans to build a 3GW hydropower complex on the Donga River in eastern Nigeria, which have been under discussion since 1972, were given a boost last week when President Xi Jinping of China announced his support for the project.

The Chinese leader was speaking in response to a request for help from President Buhari of Nigeria, who has made the construction of the scheme, on the Mambilla plateau in Taraba State, a key priority of his government.

Buhari said in a tweet: “I told President Xi that the Mambilla Hydropower Plant is Nigeria’s equivalent of China’s Three Gorges Dam, and that our hope is to fund the project with concessionary loans from China.

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