Ouattara Elected President: Cote d’Ivoire Poised for Progress

Ballot of the four presidential candidates
President Ouattara and wife after voting

Lawrence Freeman

November 12, 2020

On October 31, Alassane Dramane Ouattara was re-elected President of Cote d’Ivoire. The official vote for President Ouattara was 3,031,483, which was 94.5% of total votes cast, with 53.9% of registered voters participating. Observers for both the African Union and Economic Community of West African States validated the legitimacy of the election process. On November 9, he was sworn in for his third term as president of Cote d’Ivoire.

In the days leading up to the election, scores of widely circulated stories, with frightening headlines predicting “chaos, a dangerous election, civil war,” attempted to create the narrative that this election could potentially experience a repeat of the violent conflict that caused thousands of deaths in 2010-2011. This blatantly false storyline, spread by major news outlets in Britain, France, and the U.S., that was intended to create fear and inflame the emotions of the population; never materialized. There were acts of civil disobedience and conflicts in a few outlying districts. However, in Abidjan, the country’s port city, where 20% of the population resides, there was no evidence of any kind of violence and the city remained calm.

I was very pleased to witness hundreds of Ivorians peacefully standing in long lines waiting to vote, in Treichville, a poor section of Abidjan. This was one of the several polling centers I visited. As I walked around several voting locations, I observed a professional orderly voting procedure.

Ivorians at Treichville lining up to vote

Stability for the nation of Cote d’Ivoire following this election is not only important for 25 million Ivorians but is vital for all of West Africa and the Sahel. Cote d’Ivoire’s bordering neighbors, Mali, and Burkina Faso are being destabilized from attacks by violent extremists.

Cote d’Ivoire, a potential economic hub in West Africa, is already exporting energy to several nations in the region and transporting goods from its port via rail to landlocked Niger and Burkina Faso. With the modernized Abidjan port, Cote d’Ivoire offers a vital gateway for development in West Africa.

Respect Cote d’Ivoire’s Sovereignty  

It is universally recognized that President Ouattara, who was president from 2011-2020, created an economic recovery from the previous ten years of 2000-2010. In that period, referred to as the ‘lost decade,” Cote d’Ivoire was governed by President Laurent Gbagbo, and racked by a protracted and bloody civil war.

Originally, President Ouattara announced in March of this year that he would not run for office again. He threw his support behind the then Prime Minister, Gon Coulibaly, who unexpectedly died of a heart attack in July, compelling President Ouattara to reverse his decision.

Ivorians in Abidjan waiting to cast their votes in the presidential election

In an article published on Oct 28, in Modern Ghana, More than meets the eye, Mamadou Haidara, ambassador to the U.S., explains President Ouattara’s reasoning to seek the presidency again:

“This extraordinary circumstance left a major political party with the difficult task of identifying, vetting and putting forward an alternative candidate in a matter of days or weeks — an unrealistic timetable in any country, and especially so in this young and still somewhat fragile democracy…

“Confronted with this unforeseen predicament, President Ouattara’s decision to seek another term in office was the only viable path forward for his party and his country.” 

The nation’s Constitutional Council ruled on September 14, that in accordance with Cote d’Ivoire new constitution of 2016, it was permissible for President Ouattara to seek a third term. United States ambassador to Cote d’Ivoire, Richard Bell supporting the nation’s sovereign authority to conduct its election, responded in an interview  published in Fraternite Matin (October 17-18):

“Question: Of the 44 candidates, only 4 were deemed eligible to take part in the election. Do you have a comment on this situation?

Amb Bell: There are a lot of applicants who weren’t successful. I think the Constitutional Council ruled that they did not meet the criteria. In any country, there must be someone who decides. Who says the law in this country? There has to be a clear answer to this question. In Côte d’Ivoire, for questions of this kind, I believe that it is the Constitutional Council which decides. The United States respects the sovereignty of Côte d’Ivoire. I therefore find it hard to see my government contradicting what is said by the highest Ivorian authority.”

A voter registering to vote

 Destabilization Launched

Those seeking to destabilize Cote d’Ivoire, seized the ruling by the Constitutional Council to allow President Ouattara to seek a bid for a third term as a gambit to destabilize the nation.

In addition to the 78 year old President Ouattara, from the Rally of Houphouetists for Democracy and Peace party (RHDP), the Constitutional Council approved three other candidates to compete for the office of president.

  • Henri Konan Bedie, Democratic Party of Ivory Coast (PDCI), 86 years old, a former president Cote d’Ivoire from 1993-1999, before he was couped. He initiated ethnic conflicts when he introduced the notion that to be a “true” Ivorian both parents had to be Ivorian.
  • Pascal Affi N’Guessan, Popular Front Party (FPI), 67 years old, a former prime minister from 2000-2003 under President Gbagbo.
  • Kouadio Koana Bertin, running as an Independent, 52 years old, a former youth leader of the PDCI, who competed for president in 2015.

On October 15, candidates Bedie and N’Guessan, fearing they would lose, called on their supporters to boycott the election, in preparation to create the conditions to destabilize Cote d’Ivoire immediately following the vote. This calculated action, a mere 16 days before this critical election, which would impact the nation’s future, was intended to prepare the groundwork for a campaign to “delegitimize” the presidential election. Right on cue, as part of their scheme, Bedie, and N’Guessan, who received .99% and 1.66% of the vote respectively, characterized the election as illegal and illegitimate, as they had planned. The duo then nonsensically called for the creation of a “council of national transition.” In effect, these defeated candidates, who claim to support democracy, are advocating for the disenfranchisement of millions of Ivorians, who endured the heat and long lines to vote for the candidate of their choice.

Democracy at the ballot box

Sedition

N’Gueesan was arrested on November 7, and Bedi is under house arrest for calling for the formation of an unlawful-none-elected government. This may not seem serious to those unfamiliar with Cote d’Ivoire’s history of elections. However, Ivorians memories are deeply scarred from the violence that followed the 2010 presidential election, when President Laurent Gbagbo refused to leave the presidential palace after being defeated by President Ouattara. From December 2010 into March 2011, heavy fighting between opposing armies in Abidjan killed three-thousand people and displaced upwards of one million. For a young, emerging nation, recalling the horrors from a decade earlier, the actions of N’Ggueesan and Bedie are threatening to Ivorian society and its elected government.

Joining the opposition coalition that is attempting to overthrow the elected government of Cote d’Ivoire is Guillaume Soro. He served as prime minister under President Gbagbo from 2007 to 2012, and President of the National Assembly from 2012 to 2019, during  Ouattara ‘s presidency. He previously was an ally of President Ouattara and led the rebel forces against then President Gbagbo. It is important to recognize that prior to the election, Soro confirmed the opposition’s game plan, telling Le Monde, a major French newspaper:

“We have succeeded (sic) in discrediting the electoral process and in giving ourselves the means not to recognize Mr. Ouattara as President of the Republic of Cote d’Ivoire after October 31.”

Soro, who was disqualified from running for president by the Constitutional Council for embezzlement and money laundering, is residing in Belgium after being found guilty in absentia. On November 4, four days after President Ouattara’s victory, Soro called for armed mutiny against President Ouattara. He posted on his face book an appeal for a military coup. He wrote:

Turning now to our security and Defense forces…I’m asking you to disobey illegal orders and join the national transitional council…We cannot out of fear, allow dictatorship in Ivory Coast by Alassane Ouattara.”      

Bedie also failed when he tried to enlist the support of the U.S. to join his effort to subvert the election. On November 2, the U.S. Embassy in Abidjan issued the following statement:

“The United States Ambassador did not meet the candidate Bédié this weekend. The United States respects constitutional order in the Republic of Côte d’Ivoire, which President Ouattara still leads, and urges all to respect constitutional order and avoid violence.”

Showing international observer proof he voted with blue ink on his finger

 Time to Move Forward

With the election over, now is the time for Cote d’Ivoire to unite around the goals of fulfilling the nation’s potential, industrializing its economy, and providing for the wellbeing of all its people.

President Ouattara, in his acceptance speech on November 9, committed himself to resolving the country’s conflict:

“I would like to reaffirm my availability today, as I did yesterday, for a sincere and constructive dialogue with the opposition, while respecting the constitutional order.

 “I would like to invite my elder, President Henri KONAN BEDIE, President of PDCI-RDA, to a meeting in the next few days for a frank and sincere dialogue in order to restore confidence.

 “I ask all our fellow citizens, in a surge of peace of minds and hearts, to work to maintain and strengthen peace throughout our country. We have so much to do together, to build and consolidate our Nation.

“The time for electoral competition has passed.  Now is the time for action.  And for me, action is the “Côte d’Ivoire Solidaire” Project for which I was elected, and which will accelerate the economic and social transformation of our country, through more inclusive growth.”

President Ouattara’s administration has outlined in its Strategic Plan-2030, a vision for a prosperous and inclusive Cote d’Ivoire. Key goals of this plan include; reducing poverty from 39% to 20%, increasing life expectancy from 57 to 67 years of age, creating 8 million new jobs, and reducing child mortality by 40%.

It is in the interest of all Ivorians to move beyond this contentious election and work together to achieve a stable and blossoming nation. With peace, stability, and the right policies, Cote d’Ivoire, a lovely cultural melting pot of many nationalities, is capable of becoming an engine of growth for West Africa.

(The authored visited Cote d’Ivoire from October 23-Novemebr 3, 2020)

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

 

 

Will IMF Austerity Policies Lead to More Deaths in Africa? The Answer is Obvious.

African nations must have infrastructure to develop industrialized economies .
October 16, 2020

An October 12, 2020, Oxfam International press release, IMF Paves Way for New Era of Austerity Post-Covid-19, exposes the danger of African nations following the dictates of the International Monetary Fund. A major reason that African nations have fragile healthcare systems is the IMF insistence on countries servicing their yearly debt service at the cost of under funding healthcare. Prime Minister, Abiy Ahmed, emphasized the cost service service early this year: “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…” Ethiopian PM Abiy Ahmed: Debt Cancellation for the World to Survive. Read my post: IMF Conditionalities Contribute to Shortage of Health Workers: Africa Suffers.

Africa has the highest number of people working in the informal economy. In some countries-over 80% of its people have to live hand to mouth each day to provide for their families. Millions are struggling every day just to survive, with no health and unemployment insurance safety-net. The COVID-19 pandemic has driven more Africans into poverty, and hunger is increasing across the continent. It is criminal and immoral for the IMF to to insist that nations implement austerity, when hundreds of millions are already suffering from lack of income, lack of food, and lack of healthcare. In fact, IMF policies have never helped nations develop their economies. African nations have yet to recover from the infamous IMF dictated “Structural Adjust Program” (SAPs) that destroyed their economies in the 1980s and 1990s. It may be difficult for people to hear, but the truth is; IMF’s Insistence on maintaining debt service and IMF conditionalities are killing Africans. Read my post: Africa Needs Real Economic Growth, Not IMF Accountants

In the history of modern economy, austerity measures have never led to economic growth. All honest economists, and even the IMF and World Bank, know this. The only solution is the creation of a New Bretton Woods system that must include: 1) suspension of debt service, 2) a new financial mechanism to issue credit for economic development 3) upgrading of healthcare infrastructure, 4)  massive investments in hard physical infrastructure of roads, energy, and railroads.

Excerpts from Oxfam:

“84 percent of the International Monetary Fund’s (IMF) COVID-19 loans encourage, and in some cases require, poor countries hard hit by the economic fallout from the pandemic to adopt more tough austerity measures in the aftermath of the health crisis, warned Oxfam today.

New analysis by Oxfam finds that 76 out of the 91 IMF loans negotiated with 81 countries since March 2020 – when the pandemic was declared – push for belt-tightening that could result in deep cuts to public healthcare systems and pension schemes, wage freezes and cuts for public sector workers such as doctors, nurses and teachers, and unemployment benefits, like sick pay.

“The IMF has sounded the alarm about a massive spike in inequality in the wake of the pandemic. Yet it is steering countries to pay for pandemic spending by making austerity cuts that will fuel poverty and inequality. These measures could leave millions of people without access to healthcare or income support while they search for work, and could thwart any hope of sustainable recovery. In taking this approach, the IMF is doing an injustice to its own research. Its head needs to start speaking to its hands,” said Chema Vera, Oxfam International’s Interim Executive Director…

“Nine countries including Angola and Nigeria are likely to introduce or increase the collection of value-added taxes (VAT), which apply to everyday products like food, clothing and households supplies, and fall disproportionately on poor people. Unemployment in Nigeria has surged to 27 percent, the highest in at least a decade…

“The IMF has contributed to these failures by consistently pushing a policy agenda that seeks to balance national budgets through cuts to public services, increases in taxes paid by the poorest, and moves to undermine labor rights and protections..

“The IMF’s austerity drive will hurt the countries it claims to help.” (emphasis added)

IMF Conditionalities Contribute to Shortage of Health Workers: Africa Suffers

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

IMF Paves Way for New Era of Austerity Post-Covid-19

Africa Needs Real Economic Growth, Not IMF Accountants

Trump Administration Intervention Against Ethiopia Undermines Africa’s Progress

October9, 2020

While I have rarely, if ever agreed with any position of the {London School of Economics}, or for that matter, the {Washington Post}, and don’t’ support all the content that is contained in the article below, it is undeniably true; President Trump’s cutting aid to Ethiopia is harmful to the Africa continent. There is no justification for supporting a British colonial legacy that denies Ethiopia the right to develop its nation by harnessing the power of the Blue Nile. Ethiopia, with its large population, is aspiring to improve the conditions of life for its people, and eliminate poverty. It is attempting to become a leading manufacturing nation in Africa, which will not be possible without access to electrical power. The Grand Ethiopian Renaissance Dam (GERD), with its capacity to generate, 6,200 megawatts, is potentially not only a “game changer” for Ethiopia, but also for its neighboring nations in the Horn of Africa. Sadly, the Trump administration continues to repeat unfounded allegations against China, which include claims that China has imperialist designs for Africa. And  without a shred of evidence, claiming that China is attempting to trap African nations into unpayable debt so they can seize their assets. Reality is, Africa needs massive investments in infrastructure to industrialize its economies. China is collaborating with African nations to build energy plants, railroads, airports, etc., and the US, under President Trump, has followed the same wrong headed policy of his predecessors, who foolishly repeat the mantra-“the US doesn’t build infrastructure.”

Far better than undermining the progress of Ethiopia, an emerging African nation, President Trump should reverse course and support the development of Africa. It is not too late. Read my earlier post: Trump’s Aid Cut Harmful to Ethiopia and All of Africa

A conflict is brewing on the Nile — and the Trump administration is making things worse-

Excerpts:

“This summer has seen significant escalation between Ethiopia, Egypt and Sudan over the filling of the new Grand Ethiopian Renaissance Dam (GERD), the latest front in a longstanding dispute between the countries over rights to the Nile’s water. The United States has tried to play the role of a mediator in such disputes. But in September, the Trump administration announced it would slash Ethiopia’s aid budget by $130 million, intervening in support of Egypt and exacerbating tensions.

“Ever since construction began on the dam in 2011 — and indeed for decades before that — it has been a flash point in the region. The problem is that all parties have a point. The GERD would provide Ethiopia with clean, cheap and abundant energy — a much-needed addition to a country in which 55 percent of people lack electricity and 27 percent live in poverty. Failing to move forward with the dam’s filling would deprive 65 million Ethiopians of substantial energy potential, condemning them to inadequate living standards and sluggish economic prospects.
“Yet to dam a river that provides 90 percent of Egypt’s freshwater will deepen that country’s perilous water crisis. In recent years, Egypt’s persistent water deficit has strained its agricultural industry and upended life in many parts of the country…
“The issue is complex and requires careful mediation, but the Trump administration has taken a different approach. By cutting aid to Ethiopia, Washington appears to be pressuring it to accept Egypt’s demands: to slow the dam’s filling and sign up for deferential water-sharing quotas. In practice, the abrupt move has worsened the dispute — hardening Ethiopia’s resolve, emboldening Egypt’s nationalism and undermining the United States’ own credibility as an international mediator.”

Read: Egypt-Ethiopia Standoff on Nile

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

Water Transfer With Transaqua Will Bring Peace & Development to Lake Chad Basin

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The multi-nation Transaqua water infrastructure project can reverse the shrinking of Lake Chad and bring stability to the region and transform Africa. (picture courtesy of https://menafn.com/

October 1, 2020

This article from {MENAFIN}, The Key to Peace in the Lake Chad Area is Water Not Military Action, excerpted below, makes an important contribution for the need to construct the Transaqua inter-basin water transfer project. The Abuja-2018 conference referred to in this article adopted Transaqua as the preferred solution to refurbish Lake Chad. I was a key speaker at the conference in Abuja and have been advocating for Transaqua for over 20 years. There will be no end to instability in the region until poverty is eliminated by transforming the economy. There is no lesser solution. We need bold resolute leaders to aggressively push forward for a feasibility study of Transaqua. Too much time has been wasted and too many lives have been lost due to inaction in the Lake Chad Basin.

Excerpts:

“Lake Chad is an extremely shallow water body in the Sahel. It was once the world’s sixth largest inland water body with an open water area of 25,000 km2 in the 1960s, it shrunk dramatically at the beginning of the 1970s and reduced to less than 2,000 km2 during the 1980s, decreasing by more than 90% its area. It is one of the largest lakes in Africa. It is an endorheic lake – meaning that it doesn’t drain towards the ocean…

“The Lake Chad region, however, is one of the most unstable in the world. According to the 2020 Global Terrorism Index report , countries of the region are among the 10 least peaceful countries in Africa…

“The study found that loss of livelihoods has promoted criminality, easy recruitment by terrorist groups, and migration to urban centres. This has also led to violence and crime in cities and towns. Management of the shrinking lake has caused conflicts among the states that depend on it and this has made it more difficult for them to collectively fight insecurity in the region. The lake is central to regional stability. To achieve peace, countries should focus on reviving the water body rather than on military activities…

“Loss of the traditional means of livelihood leads to widespread poverty and food insecurity. A 2017 report estimated there were about 10.7 million inhabitants of Lake Chad Region in need of humanitarian services…

“Further, Boko Haram has capitalised on the loss of livelihoods and economic woes to recruit people into its ranks. It either appeals to the poor ideologically or directly uses economic incentives…

“The Lake Chad Basin Commission has identified the need to replenish the water body. There was a plan to build a dam and canals to pump water from the Congo River to the Chari River, Central African Republic and then on to Lake Chad [Transaqua]. It was first mooted in 1982 by the Italian engineering company Bonifica Spa, and discussed at the International Conference on Lake Chad in Abuja in 2018. Major challenges to this plan include funding, resistance from environmental campaigners and peaceful conditions in which to carry it out.”

Read The Key to Peace in the Lake Chad Area is Water Not Military Action

Read my earlier posts: Interview With Lawrence Freeman: The Time is Now For TRANSAQUA-to Save Lake Chad and Transform Africa

Save Lake Chad With Transaqua: Franklin Roosevelt and Kwame Nkrumah Would Concur

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

UN Speech by Ivory Coast President: “Bolder Measures” Needed To Help African Economies Hit by COVID-19

Debate
Other press by DR General debate of the 75th session of the UN General Assembly by videoconference: Statement by HE Mr. Alassane OUATTARA, Head of State of the Republic of Côte d`Ivoire, September 24, 2020
September 28, 2020
The remarks by President Quattara at the United nations echoed those of other leaders of developing nations. However, we must contemplate taking even bolder action. The present global financial-economic system needs to be restructured.  The Bretton-Woods system as envisioned by President Franklin Roosevelt has been distorted beyond recognition.  The amount of debt and derivatives on the books of the international banking system is suffocating real economic expansion. Yes, we must have a debt moratorium for the duration of the crisis, but we have to do more. We have to construct a New Bretton Woods that will deflate existing unpayable debt and establish  standards for prioritizing the issuance of new credits explicitly for development; in particular infrastructure.  The COVID-19 pandemic has brought to the fore, for all the world to see, the gross failure of the current globalized system. We, humanity, will only progress when we establish a higher platform of economy, one dedicated to the promotion of human life, not the balance sheets of debts. Read: New Economic Order Required to Combat COVID-19 in Africa

General debate of the 75th session of the United Nations General Assembly: Statement by His Excellency Mr. Alassane Ouattara, President of the Republic of Côte d’Ivoire

Excerpts below:
“Faced with the spread of COVID-19, developing countries, especially African countries, are more severely affected by the economic and social effects of the absence of global initiatives in favor of of their savings. In this context, in my capacity as Champion for the implementation of the African Union’s Agenda 2063, I welcome the initiative of the G20 to grant a moratorium on the service of the bilateral public debt for the benefit of several African countries.

“I call on all the continent’s partners to take bolder measures aimed at relieving our economies hard hit by the effects of COVID-19. Africa’s financial needs are estimated at US $ 100 billion per year over three (3) years, or a total of US $ 300 billion. In addition, countries should have budgetary leeway to allow them to pursue the necessary social investments and take into account security needs, especially in countries facing terrorism.

“Finally, the world must hear the Africans’ call for the cancellation of the public debt of their countries. My country supports the African Union’s efforts to collectively renegotiate the continent’s debt with the creditors, and to obtain an extension of the debt moratorium, mentioned above. But we must go further and act without further delay. African countries need lasting solutions, in particular liquidity and investments, in order to withstand the unprecedented shock suffered by our populations and to continue the development process of the continent.

Among these solutions, I recommend recourse to the Special Drawing Rights of the International Monetary Fund; a mechanism that has already proved effective during the global financial crisis of 2008-2009.

“The fight against COVID-19 must not overshadow other diseases such as Malaria and AIDS, which claim more victims in African countries. Above all, it must not destroy efforts to fight poverty. In this area, my country has launched vigorous reforms that have reduced poverty by 15.6 percentage points in eight years.
The regional study on poverty by the West African Economic and Monetary Union (UEMOA) and the World Bank confirms that Côte d’Ivoire has gone from a poverty rate of 55.01% in 2011. at 39.4% in 2018. It is therefore about 1.6 million Ivorians who were lifted out of poverty during this period.

“Likewise, still according to recent statistics from the World Bank, the Gross Domestic Product (GDP) per capita of Côte d’Ivoire has more than doubled, from 1120 US dollars in 2011 to 2290 US dollars in 2019. , making Côte d’Ivoire the country with the highest per capita income in the West African sub-region.”

South African Pres. Ramaphosa Calls For End to Poverty and a New Global Deal

UN General Assembly celebrating 75th anniversary virtually - YouTube

South African President, Cyril Ramaphosa in his address to the United Nations calls for the necessity to end poverty in Africa and the need to establish a New Global Deal that provides affordable credit. I fully support these goals. I have advocated for the creation of a New Bretton Woods for decades. Without a new international financial architecture that provides long-term low-interest credit to developing nations for infrastructure, African nations will not be able to fulfill their ambition to end poverty.

Address by President of the Republic of South Africa and African Union Chair, President Cyril Ramaphosa at the 75th United Nations General Assembly Debate, September 22, 2020

Excerpts below:

“When the Secretary-General António Guterres delivered the 18th Nelson Mandela Annual Lecture in July 2020, he called on the nations of the world to forge a New Social Contract and a New Global Deal.

“He said we must create equal opportunities for all, that we must advance a more inclusive and balanced multilateral trading system, that debt architecture must be reformed, and that there should be greater access to affordable credit for developing countries…

“As the African Union we are encouraged by the collaboration of the G20, the IMF, the World Bank and the UN towards finding solutions to debt sustainability in developing countries.

“It is a call we as South Africa wholly endorse.

“This pandemic has highlighted the urgency with which we must strive to meet all the Sustainable Development Goals, but more importantly Goal 1 – to end poverty in all its forms everywhere.

“For until we eradicate global poverty, we will always fall short of realizing the vision of the founders of the United Nations…

“Together, we must raise our level of ambition to ensure that every man, every woman and every child has an equal chance at a better future.

“It is a future free of hunger, disease, insecurity and war.” (emphassis added)

Read full speech: South Africa Pres Ramaphosa Address to the UN

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

Ethiopian PM Abiy Ahmed: “Africa’s Peace and Prosperity Begin at Home”-More is Required

Th AfCFTA is intended to be a new platform for the continent’s economic growth. (courtesy twnafrica.org)

September 14, 2020

Ethiopian Prime Minister, Abiy Ahmed make a strong case for African nations to chart a course to bring prosperity to to the continent. However, much more is needed to plan for the creation of economic growth that Africa requires today and for its future population. Poverty for hundreds of millions of Africans must be eradicated. Over 600 million Africans without access to online electricity must be brought into the “light.” This requires that African leaders, with the African Union and Africa’s true allies should come together and produce a development program. A plan of action for a 5-10-20 year growth policy that must include minimally: electrifying the continent with a thousand gigawatts of electricity; high speed modern trains connecting the major cities and ports; modern all weather highways; creating a healthy manufacturing sector; and a state of the art health infrastructure system. We must think boldly about the the basic requirements needed for all Africans to live meaningful and productive lives.

Excerpt from Prime Minister Abiy

“ADDIS ABABA – Africans must take responsibility for our continent’s affairs. We have all the ingredients we need to succeed, starting with a growing population – including a large and increasingly educated cohort of young people – and a favorable trade and investment environment. And now, determined to usher in an era of African peace and prosperity, we have a mature institutional platform through which to forge, articulate, assert, and defend our common interests under an independent, unified African foreign policy.

“For too long, Africa has been a strategic plaything of world powers. By bolstering its internal cohesion and economic integration, the continent can become a strong geopolitical force with an independent and unified voice on important global issues.

Read Prime Minister Abiy Ahmed’s essay:  Africa’s Peace and Prosperity Begin at Home

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

Trump’s Aid Cut Harmful to Ethiopia and All of Africa

Artist rendition of the completed Grand Ethiopian Renaissance Dam

August 6, 2020

Trump’s Aid Cut Harmful to Ethiopia and All of Africa

By Lawrence Freeman

President Donald Trump has instructed Secretary of State, Mike Pompeo to pull back from a commitment to provide $100 million in security related aid to Ethiopia, a leading developing nation on the African continent. According to the New York Times, the State Department indicated this would be a “temporary pause” on some aid in response to “Ethiopia’s unilateral decision to begin to fill [its] dam before an agreement was reached…” This action by the Trump administration is more than an outrageous encroachment of Ethiopia’s sovereignty. It is an assault on the right of emerging nations to take actions to improve the living conditions of their people.

In response to the decision by the State department, Eyob Tekalign, Ethiopia’s state  finance minister said correctly, “We don’t think that the U.S. has thought this through carefully…We are hopeful that they will reconsider because Ethiopia is doing what is absolutely right and in all senses of the word legally, morally as well.”

The Ethiopian people have funded the $4.6 billion Grand Ethiopian Renaissance Dam (GERD) themselves. This fulfills a bold vision to develop their nation with the 6,200 megawatts (MW) of electricity that the dam will generate when completed. Ambassador Fitsum Arega aptly expressed the desire of the Ethiopian population, when he tweeted, “we will pull Ethiopia out of the darkness,” which is literally and metaphorically true.

Trump’s Bias

All indications are that President Trump acted on the insistence of Egyptian President el Sisi, who has claimed “historical rights” to the Nile River. In truth he is asserting “colonial rights” to the Nile bestowed on Egypt by the British Crown.

At the end of 2019, at the request of President el Sisi, President Trump instructed Treasury Secretary Mnuchin to act as an independent broker in discussions with Sudan, Egypt, and Ethiopia. Over four months, several meetings of the three Nile riparian nations were held in Washington DC discussing the “fill rate” of the GERD. There are legitimate concerns about how much water would be withdrawn annually in the next several years to fill the GERD’s reservoir of 74 billion cubic meters (bcm) of water. Technical issues like the rate of which water should be withdrawn from the Nile to fill the reservoir should be resolved by the three nations with the understanding that a functioning GERD will benefit all the people living in the Horn of Africa.

The heavy rains at the beginning of Ethiopia’s rainy season this summer have already filled the GERD with the required 4.5 bcm of water to test two turbines. This was accomplished without any reduction in the flow of the Nile.

As the tripartite discussions, with the US Treasury and World Bank in attendance continued into February 2020, it became clear that the US was “putting its thumb on the scale” for Egypt, in the words of retired US Ambassador David Shinn. By the end of February, Mnuchin secured an “agreement” regarding the Nile with Egypt, without the participation of Ethiopian representatives.  On February 28, 2020, an official statement from the US Treasury Department praised Egypt’s “readiness to sign the agreement,” and instructed Ethiopia that “final testing and filling should not take place without an agreement.” For more information read my earlier post: Africa Requires Ethiopia Fill Its Dam.

Eventually, the unresolved issue of the Nile shifted to the proper venue for African nations to settle disputes, the African Union. The dialogue has continued under the personal supervision of South African President, Cyril Ramaphosa, Chairperson of the African Union.

The GERD is built in Ethiopia on the Blue Nile River, which supplies 85% of the Nile when it joins the White Nile north of Khartoum, Sudan

Bringing Africa Out of Darkness

What President Trump does not understand; is that his “pause” in aid is not only harmful to Ethiopia, but it is detrimental to the entire African continent. Whether he is aware of it or not, is establishing a dangerous precedent in foreign policy, and not just for Africa.

Ethiopia, with a population approaching 110 million, has made a commitment to eradicate poverty. To that end, Ethiopia has embarked on erecting significant infrastructure projects in roads, railroads, and hydro-electric dams. The GERD has the potential to generate over 6,000 MW of power, doubling Ethiopia’s present capacity, and placing Ethiopia only second to South Africa in energy production in sub-Saharan Africa (SSA). Ethiopia would also become an energy exporting nation potentially providing electricity to neighboring South Sudan, Sudan, Kenya, Somalia, and Tanzania.

The root cause of virtually every crisis that African nations are facing today, including ethnic conflicts, can be traced to underdevelopment. This is especially true when one examines the dearth of hard infrastructure in SSA with a population nearing 1.5 billion that is projected to reach 2.5 billion by 2050. Electricity for SSA is estimated between 100,000-130,000 MW. This level of output is criminally deficient for a population over 1 billion, with 600 million Africans having no access to online electricity. The lack of electricity is literally a death sentence for millions of Africans.  Is this not a form of genocide?

Without abundant and accessible electricity Africa will not progress at the level necessary to provide for its present, much less its expanding population. Energy is the sine qua non for economic growth, and to eradicate poverty. It is required for; agriculture, producing fertilizer, pumping water, cleaning water, transportation, lighting hospitals, vaccine production and storage, shipping food in refrigerated cars, powering industry, constructing and lighting modern homes, schools and libraries. For Africans to enjoy the same access to electricity 24×7, as we experience in modern nations, Africa needs a minimum of 1,000 gigawatts or 1 million megawatts of electricity.

Does anyone in the Trump administration, or any individual in the leadership of the Democratic Party think on this level?

President Franklin Roosevelt signed the Tennessee Valley Authority Act-TVA on May 18, 1933. (courtesy inthesetimes.com)

What Roosevelt Would Do?

Rather than being threatened with cuts in aid, Ethiopia should be supported in its bold efforts to build and operate the GERD. A thoughtful US policy would be assisting all African nations in addressing the enormous multi-trillion dollar infrastructure deficit, with long term-low interest loans to finance massive investments in life saving infrastructure. Instead of President Trump and his foolish advisors hurling geo-political condemnations against China, it would be far better for the US to join China’s Belt and Road Initiative, which is building vitally necessary infrastructure in Africa and around the world.

Both the Democratic and Republican Party, including President Trump himself, from time to time utter fond references of President Franklin Roosevelt. However, I have found that no leader in either party has any comprehension of the genius of President Roosevelt’s economic policies. FDR as he is known, understood the importance of infrastructure. This was abundantly evident in his New Deal, his creation of the Tennessee Valley Authority (TVA), and his Good Neighbor policy. During the war he sternly reprimanded Winston Churchill for his Imperial-Colonial policies in Africa. President Roosevelt intended to end the British Empire’s political and financial control in the world. He had a vision to develop Africa, including greening the desert, with the same methods he had successfully implemented in the US: great infrastructure projects. I can assure you, that President Roosevelt would have championed and aided any developing nation that embarked on energy production.

Sadly, in the seventy-five years following the death of President Roosevelt, the only President, who had shown enthusiasm for the economic development of Africa, was John F Kennedy.

Let the Trump administration pause to rethink this wrongheaded policy that not only violates Ethiopia’s sovereignty, but undermines a strong US ally in East Africa. Let us recognize Ethiopia’s endeavors to improve the living conditions of its citizens, and pause again to ask, how would President Franklin Roosevelt respond.  His TVA harnessed the power of the mighty Tennessee River generating electricity to transform the lives of millions of poverty stricken Americans living in seven undeveloped southern States.  Is it not in the strategic interest of the US to support nations working to eliminate poverty in Africa using Rooseveltian methods?

Read: Africa Requires Ethiopia Fill Its Dam

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

China Eliminated Poverty With Science and Infrastructure. It Can Be Done in Africa Too!

China's Long March Out of Poverty | African Agenda – A new ...
Deng Xiaoping, who put China firmly on the path of “reform and opening up.

August 14, 2020

If one examines the long path from the end of China’s disastrous “cultural revolution” in the 1970s to China’s 2020 modern miracle of eliminating poverty for 800 million Chinese, many lessons can be learned. China’s commitment to science and building infrastructure were two essential ingredients for this accomplishment.  William Jones discusses this interesting history in his article below,”China’s Long March Out of Poverty”.

China Employs Hamilton’s Principles of Credit  for Railroads

(EIRNS) —China’s exciting announcement of its plan to increase the pace of development of maglev and its high-speed rail network, is based on its assurance that it knows how to implement that, and to finance it on top-down principles of the type proposed by Alexander Hamilton.

China announced its plans to build a system of 600 kph (373 mph) maglev vehicles, after it successfully conducted its maiden test run of a maglev vehicle at a test track at Tonji University in Shanghai on June 21. Though the train-set did not run at top speed of 600 kph, but at a lower speed, various important features were tested. Prototype vehicles are approved for construction in 2021, and up to nine new maglev lines, totalling over 1,000 km (600 miles), are planned for the future.

Equally impressive, China’s plan to double its existing 35,000 km of high-speed rail already in operation, to 70,000 km by 2035, shows how a Confucian/Hamiltonian economy actually works. Based on estimates by the Lange Steel Information Research Center in Beijing, reported by the Wall Street Journal, China would have spent $180 billion for 35 approved railway projects in 2019, most of them high-speed rail, launching the next phase of HSR development.

In the first half of 2020, according to the Aug. 13 *China Daily), China invested $207 billion in combined railway, highway, waterway and civil aviation infrastructure, of which $46.9 billion was in railways. China’s transportation infrastructure investment alone, is 5-10 times that of every country on Earth. Featured in China’s railway investment is a new, 1700 km high-speed rail system between Chengdu, Sichuan and Lhasa, Tibet; high-speed rail in landlocked Shaanxi Province, etc.

China finances the rail and other critical infrastructure, through two methods of directed credit: China’s four largest state-owned commercial banks—the Industrial & Commercial Bank of China, the Bank of China, the Agricultural Bank of China, and the China Construction Bank—make ample loans directly to the China Railway company, the China Railway Rolling Stock Corporation (CRRC), which builds the rail equipment, etc. This is overseen by China’s three “policy banks.”

Second, the national government and local governments purchase bonds issued by China Railway Corporation, CRRC, and so forth.

China has announced its new rail construction program. The government plans to build 200,000 km of rail by 2035, about 70,000 of which will be high-speed rail. All cities with a population of 200,000 or more will be connected by rail, and all cities with 500,000 people or more will be connected by high-speed rail. China is also working on the next generation maglev train that could travel at speeds of 600 kph.

Pause for a moment from your daily activity. Let your imagination look into the future, and ponder what the nations of Africa would look like if, all cities with 200,000 people or more were connected by railroads. The topology of the continent would be different. China has proved it can be done. It is not a matter of Africa following the China model. Rather, it is comprehending the scientific principles of Alexander Hamilton’s economic system. Read my earlier posts: Alexander Hamilton’s Credit System Is Necessary for Africa’s Development and Nations Must Study Alexander Hamilton’s Principles of Political Economy

 

Click to access 45-54_4726.pdf

In his article below, William Jones provide an insightful analysis of the forces behind the anti-China mantra, rampant in the Trump administration.

As the ‘Five Eyes’ gear up to confront China, can anyone say that the British Empire is a thing of the past?

“A recent article published in the China Economic Diplomacy Watch pointed to the “Five Eyes” – the U.S., UK, Australia, Canada and New Zealand – as the key rallying group for Pompeo’s call for a containment policy toward China. The article has indicated a crucial element in the danger the world is facing. The unifying factor in this grouping is, firstly, that the “Five Eyes” are all English-speaking countries, and secondly, that they all at one time or the other belonged to the British Empire.”

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

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