Watch this video of Economist Jeffrey Sachs addrressing the African Union (coutersy of africanagenda.net)
Jeffrey Sachs and I agree 100% on the absolute necessity to provide long term-low interest financing for infrastructure in Africa. The global financial system, the International Monetary Fund, the World Bank, and the so called international rules based order, do not understand the importance of building infrastructure in Africa, or they don’t care, or they want Africa to remain underdeveloped.
I, like Professor Sachs, understand, that the only way forward for African nations is; development: massive investment in physical and human capital. Democracy and good governance are empty constructs, cynically meaningless words, without economic development. If one genuinely desires democracy, than you must have abundant electricity! Without real, physical economic growth, which is not possible without financing trillions of dollars of infrastructure, African nations will not realize their potential in this century.
This requires a new paradigm based on development, which I have been advocating for decades.
Excerpts from Prof. Sachs, speaking before the African Union, on February 17, 2023, in Addis Ababa, Ethiopia:
And that is that African governments should take on a lot more debt and use it to keep the kids in school, to build the electricity, to build the rail, to build the transport systems because it can`t wait. And if you do it right the growth will be rapid, so what looks like a lot of debt today , 25 years from now won`t be very much debt at all.
But the problem with my analysis obviously is that I believe that Africa needs financing on 30 year borrowing , not on 5 year Euro Bonds, which is nonsense! Because development is a 30 year process…
But you have lots of sources of capital and by the way, the cost of a thirty year loan , AAA is 3%. Imagine if Africa could finance its development at 3%. 30 year borrowing. Believe me , the issues would be finished! Because you would be on your way, this would be the biggest construction site in the whole world history, roads, power, housing, new factories.
Now the problem is that Africa right now borrows at 13% on 5 years. This Euro Bond stuff is useless, worse that useless! I wouldn`t take any borrowing with less than 20 year maturing, anything. Because you cannot run development on a year by year basis. And that is what Prof Oromo was just showing, all these [up and down/high and low] swings are just finance swings. Commodity prices are high, finance is easy, you borrow, commodity prices come down, finance is tough, then austerity. All that Africa is suffering is finance swings. (All emphasis original)
Read the full transcript below provided by PD Lawton, created of the blog: africanagenda.net
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
Lawrence Freeman with Dr. Brook Hailu of nahoo tv, December 22, 2022, Addis Ababa, Ethiopia
This hour long interview above provides an excellent overview of my thoughts concerning Ethiopia, Africa, and US-Africa relations. Topics discussed include:
Economic development
Ethiopia’s agricultural potential
Ethiopia as an economic model
Ethno-nationalism
Importance of capital intensity and infrastructure
Credit and the public sector
Alexander Hamilton
China’s approach to poverty
Railroads and electricity
My visit to Northern Ethiopia and the Grand Ethiopian Renaissance Dam
Africa, the center of politics and commerce in this century
U.S.-Africa Summit
Lawrence Freeman looking over the huge beautiful reservoir and ongoing construction of the Grand Ethiopian Renaissance Dam -Dec 19, 2022
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
The Hamilton statue at Paterson National Park, home of his Society for Useful Manufactures
July 3, 2022
Alexander Hamilton, one of the most outstanding of our Founding Fathers, designed the scientific economic principles that built the United States into an industrialized power. He succeeded, with the support of President George Washington, in creating a manufacturing sector for the agrarian based 13 colonies. Hamilton was opposed by Thomas Jefferson, who led a campaign to prevent the industrial development of the young republic. We must succeed today against those who are intent in keeping African nations underdeveloped, economically held back by inefficient agricultural sectors.
My colleague, Nancy Spannaus, creator of the website: americansystemnow.com, discusses the contributions of Alexander Hamilton in her article below. Hamilton’s economic principles should be studied and applied by African nations today to ensure a prosperous future for their expanding population.
Without the industrialization of African nations with robust manufacturing and agricultural sectors, poverty, hunger, and insecurity, will not be eliminated.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
Please watch my one hour and twenty minute presentation in the video above, and read the transcript.
June 10, 2022
President Roosevelt used the Reconstruction Finance Corporation to bring the U.S. economy back to life from the Great Depression. He intended to generate economic growth throughout the world with the creation of Bretton Woods. He had a Grand Design to end British and French colonialism following the end of World War II, and free the developing sector to become sovereign nations determining their own economic future.
My presentation provides the concepts for African nations to create economic growth. Using the principles of Alexander Hamilton and President Roosevelt, we can establish an Africa Infrastructure Development Bank that can finance the infrastructure necessary to end hunger and poverty across the continent.
I am available to present additional lectures on this subject. Also, as a physical economist and a consultant with decades of experience, I can provide unique insights on Africa development and U.S. policy towards Africa.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the 0blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
President Abraham Lincoln delivering his Second Inaugural address on March 4, 1865, one month before his death.
April 17, 2022
President Abraham Lincoln, who was assassinated on April 15, 1865, was arguably the greatest U.S. President, but I would also suggest, perhaps the finest American. His tragic death changed the the, world not just the United States. My colleague, Nancy Spannaus, provides a fitting requiem for the fallen President. A Requiem for Abraham Lincoln
His temperament, his intellect, and his commitment to the U.S. Constitution, saved our precious Republic, which was less than eighty years old, and heading towards a Civil War, when he took office in 1861. President Lincoln’s unwavering resolve to defeat the opposing army of the Confederacy, demonstrated his superior military skills and strategic understanding that only the surrender by a defeated South, would the Union be preserved. His tragic death affected the world, not just the United States. If his reconstruction program had been fully implemented in his second term, the U.S. would be dramatically different today.
Much has been written and even taught that President Lincoln was not opposed to slavery, but only freed the slaves to win the Civil War. The remarks by the intellectual titan and fierce anti-slavery leader, Frederick Douglas, following the death of President Lincoln, quoted in Spannaus’ articles eloquently dispute this claim. Douglas was an ally of President Lincoln in the fight to eliminate slavery.
In his eulogy on June 1, 1865, at Cooper Union, NY, Douglas said:
“But what was A. Lincoln to the colored people or they to him? As compared with the long line of his predecessors, many of whom ere merely the facile and service instruments of the slave power, Abraham Lincoln, while unsurpassed in his devotion, to the welfare of the white race, was also in a sense hitherto without example, emphatically the black man’s President: the first to show any respect for their rights as men.”
The vast majority of Americans are also unaware that President Lincoln adhered to the economic policies of Alexander Hamilton’s American System. Abraham Lincoln in his basic campaign stump speech, advocated for protectionism, a national bank, and internal improvements. As President, he initiated the building of the Transcontinental Railroad across the U.S., connecting the Atlantic and Pacific oceans, which became a model of transportation infrastructure for the rest of the world. To fund the U.S. economy during the war he created a new currency-greenbacks, bonds backed by the federal government. Lincoln’s economic advisor was Henry Carey, a student of Hamilton’s economic method.
Abraham Lincoln’s frequently delivered speech on Discoveries and Inventions, reflects his philosophical understanding of human economy, revealed in its opening sentences:
“All creation is a mine, and every man, a miner.
The whole earth, and all within it, upon it, and round about it, including himself, in his physical, moral, and intellectual nature, and his susceptibilities, are the infinitely various “leads” from which, man, from the first, was to dig out his destiny.
In the beginning, the mine was unopened, and the miner stood naked, and knowledgeless, upon it.
Fishes, birds, beasts, and creeping things are not miners, but feeders and lodgers, merely. Beavers build houses; but they build them in nowise differently, or better now, than they did, five thousand years ago. Ants, and honey-bees, provide food for winter; but just in the same way they did, when Solomon referred the sluggard to them as patterns of prudence.
Man is not the only animal who labors; but he is the only one who improves his workmanship. This improvement, he effects by Discoveries, and Inventions.”(Emphasis added)
Let the U.S. again return to the policies of Abraham Lincoln by providing true leadership in the world.
As viewers of my website know, this is my second post in recent days discussing former outstanding U.S. Presidents and their policies. Why has American culture not produced such leaders in the last six decades following the death of John Kennedy? This will be the subject of a future article.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
John Quincy Adams, (1767-1848), American Statesman, sixth President of the United States, Secretary of State for James Monroe, Diplomat, Senator, and Congressman (Courtesy phrases.org.uk)
February 14, 2022
While I do not agree with all the views of this essay below, the author raises an important historical analysis. United States was a far better nation when it was committed to the American System policies of George Washington, Alexander Hamilton, Abraham Lincoln, William McKinley, and Franklin D Roosevelt. The USA has lost its way, suffering from a ratcheting down of its culture, which has resulted in an un-American foreign policy.
By Matthew Ehret, February 10, 2022
It should be clear that the USA is in desperate need for a new security doctrine more befitting those ideals laid out in her founding documents.
These principles were elaborated upon by President Washington himself who warned the young nation of avoiding the dual evils of foreign entanglements externally and party politics domestically.
John Quincy Adams extended these ideas further still by drafting the Monroe Doctrine which he knew could only work if America ventures “not abroad, in search of monsters to destroy”.
That is to say, as long as the USA focused her efforts on fixing her own problems with a focus on internal improvements, then the Monroe Doctrine would be a blessing for both herself and the international community.
Sadly, other impulses within the US establishment of 19th century America had other ideas.
Working with a young protégé named Abraham Lincoln, Adams fought tooth and nail against the Spanish-American War of 1846 which saw a deep abuse of his doctrine.
After the last “Lincoln-republican” William McKinley was assassinated, Teddy Roosevelt’s “big stick” diplomacy launched a new 20th century trend that saw the USA extending its hegemony over weak states rather than keeping out foreign imperial intrigue as Adams had envisioned.
Another essential component of Adams’ security doctrine was shaped by his view that the international community as a whole should never be defined as a sum of parts to be dominated by a single hegemon like the British Empire had done for centuries.
Abraham Lincoln,(1809 -1865), Sixteenth President of the Unites States, leader of the Whig Party and co-founder the Republican Party, won the Civil War to save the Union (Courtesy of Wikipedia)
Adams understood the importance of seeing the world as “a community of principle” where win-win cooperation based upon the self-improvement of both parts and the whole would constantly bring renewal and creative vitality to diplomacy. It was a top-down systemic approach to policy that saw economics, security and political affairs interwoven into one unified system. This is an integrative way of thinking that has been sorely lost in the hyper theoretical, compartmentalized mode of zero-sum thinking dominant in today’s neo-liberal think tank complex.
It was for this reason, that Adams advocated the use of Hamiltonian national banking and large-scale infrastructure projects like the Erie Canal and railways throughout his years as Secretary of State and President. From this paradigm, if American interests would be extended across the continent or the world more broadly, it would not be through brute force, but rather by the uplifting of standards of living of all parties.
Over the years, we have seen small but powerful attempts to revive Adams’ overarching security doctrine.
We had seen it revived with President Ulysses Grant’s efforts to extend US industrial know-how to countries across the world during the 1870s. We saw it again with McKinley’s promotion of rail lines uniting the Americas in what was to become a new industrial renaissance for Latin America.
We saw it come alive again with FDR’s program for internationalizing the New Deal across China, India, Ibero America, the Middle East, Africa, and Russia.
Eisenhower made some noble moves towards this renewal by ending the Korean War and attempting his Crusade for Peace driven by US-Russian cooperation and advanced scientific investments into India, Iran, Afghanistan, Pakistan, and Latin America. Eisenhower’s many positive plans were sadly derailed by a growing parasite in the heart of the US deep state which he addressed in his famous “military industrial complex” speech of 1960.
Franklin Delano Roosevelt (1882-1945), thirty-second President of the United states, only president to serve four terms, created the New Deal, formed strategic alliance with Russia and China. (Courtesy of thoughtco.com)
Kennedy’s efforts to end the Vietnam war, revive FDR’s New Deal spirit in the 1960s, while seeking entente with Russia was another noble effort to bring back Adams’ security doctrine, but his early death soon put an end to this orientation.
From 1963 to 2016, tiny piecemeal efforts to revive a sane security doctrine proved short-lived and were often undone by the more powerful pressures of unipolarist intrigue that sought nothing less than full Anglo-American hegemony in the form of a New World Order whose arrival was celebrated by the likes of Bush Sr and Kissinger in 1992.
Despite his many limitations, President Trump did make an honest endeavor to restore a sane security doctrine by focusing American interests on healing from 50+ years of self-inflicted atrophy under globalized outsourcing, militarism, and post-industrialism. Despite having to contend with an embarrassingly large and independent military-intelligence industrial complex that didn’t get less powerful after Kennedy’s murder, Trump announced the terms of his international outlook in April 2019 saying:
“Between Russia, China, and us, we’re all making hundreds of billions of dollars’ worth of weapons, including nuclear, which is ridiculous.… I think it’s much better if we all got together and didn’t make these weapons … those three countries I think can come together and stop the spending and spend on things that are more productive toward long-term peace.”
This call for a US-Russia-China cooperative policy ran in tandem with the first phase of the US-China Trade deal which went into effect in January 2020 guaranteeing $350 billion of US finished goods purchased by China. None other than George Soros himself suffered a public meltdown that month when he announced that the two greatest threats to his global Open Society were: 1) Trump’s USA and 2) Xi’s China.
Joe Biden, 79 years old, forty sixth President of the United States, Will President Biden lead the US into war with Russia?(Courtesy of theverg.com
Of course, a pandemic derailed much of this momentum and the trade deal slowly broke apart. Despite these failures, the idea of returning the USA to an “American first” outlook by cleaning up its own internal messes, extracting CIA operations from the military, defunding regime change organizations like NED [National Endowment of Democracy] abroad and returning to a traditionally American policy of protective tariffs were all extremely important initiatives that Trump put into motion, and set a precedent which must be capitalized upon by nationalist forces from all parties wishing to save their republic from an oncoming calamity.
One year into Biden’s “rules based international order”, the hope for stability and peaceful cooperation among the nations of the earth has been seriously undermined. Unlike Trump, who rightfully severed US cooperation with NATO, the current neo-con heavy administration has made absorbing Ukraine and other former Soviet States into NATO a high priority going so far as to assert that Russia’s invasion is immanent should NATO forces not protect “poor, peaceful Kiev.” No mention of Nazi-ridden Azov Battalions used by Nuland and the CIA to topple the former government in 2014 is ever mentioned of course. 8500 US troops have been told to be put on high alert and 2000 US troops have been deployed to Poland and Germany. Over 19 NATO war games have been planned for 2022 which will start this month, and even China is concerned that Biden’s “NATO-of-the-Pacific” agenda is seeking to enflame Taiwanese independence and absorb the rebellious island into the US military industrial complex.
When looking at Russian “red lines” from this standpoint and holding in mind the new form of a Eurasian Manifest Destiny emerging with Putin’s Far Eastern Vision, Polar Silk Road and China’s BRI, it is a rich irony that the spirit of John Quincy Adams’ security doctrine is alive in the world. Just not in the USA.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
I was on the ground in Addis Ababa, from November 28 – December 10, to defend Ethiopia and represent the true interests of the United States. During that time in Addis, I conducted sixteen interviews and gave a two hour lecture at Addis Ababa University. I came to Ethiopia as an American, who, knowledgeable of the origins of my country, knows that the current U.S. policy towards Ethiopia is wrong and dangerous.
Understanding the intent of the psychological warfare campaign conducted by Western nations, international media, and most especially, my own United States Department of State, I knew the most important place for me to be, was in Addis Ababa, the capital of Ethiopia.
As I anticipated, all was calm and normal in this bustling city, with unending construction of new buildings. Through multiple media outlets I was able to expose the lies of the false narrative about Ethiopia and counter the psychological warfare campaign being waged against the Ethiopian people.
It was and remains my responsibility to defeat this campaign against Ethiopia and present what America’s true interest are in Africa.
Lawrence Freeman standing in front of the Addis Ababa skyline
Disinformation Campaign
The U.S. embassy sent out daily disinformation that Addis was in danger of attack from the Tigray People’s Liberation Front (TPLF) located in the town of Dessie, less than two hundred miles north of the city. Even after government forces pushed the TPLF out of Dessie, the U.S. embassy continued to encourage Americans to leave Addis and went as far as offering to buy their tickets to return home. Ned Price, press spokesperson for the U.S. State Department, attempted to create even more fear and hysteria, by officially announcing the U.S. would not be conducting a military airlift for Americans like it did in Afghanistan this past August.
Various news programs accompanied the State Department’s fraudulent comparison of Addis and Kabul with videos of an American plane taking off from the Kabul airport leaving desperate people behind on the runway. This disgusting and outrageous comparison between Addis and Kabul, was deliberately and knowingly untruthful.
Those who believe the U.S. has not taken “sides” do not comprehend political warfare. And do not understand the intent of geo-political forces in the administration of President Biden and other western governments for regime change of the duly elected Prime Minister, Dr. Abiy Ahmed.
Relaxing at a restaurant off Meskel Square, Addis Ababa
More ominously for Ethiopia than Ned Price, the New York Times, the premiere organ of the U.S. Establishment, articulated the geo-political intent for regime change. In a blatant “hit job,” advocating the necessity of removing the “sinister” Prime Minister Abiy at all costs, The Times published on December 15, The Nobel Peace Prize That Paved the Way for War. This article maliciously portrays Prime Minister Abiy as a maniacal ruthless leader only bent on destroying the TPLF and caring nothing for Ethiopia. Its intent should obliterate any ambiguity regarding U.S. geo-political policy for Ethiopia.
It is vital for the Ethiopian government, its people, Ethiopian diaspora, and friends and allies, to understand the geo-political determination to weaken the authority of Prime Minister Abiy or remove him from office. However, simultaneously it is necessary to think beyond the current military campaign. The government should prepare now for what is required as soon as this conflict is over. It is imperative for the future of the nation that Ethiopia engage in two crucial missions:
Articulate a comprehensive reconstruction plan that includes the economic development of all regions of the nation in building a prosperous Ethiopia. Farms, schools, hospitals, and all kinds of necessary infrastructure will need to be rebuilt and expanded in Tigray and across northern Ethiopia. Let us use this post war mission to unify the nation around a national economic mobilization to improve the conditions of life for all Ethiopians.
Commence a national dialogue to discuss/debate the supremacy ofthe concept of being a citizen of a sovereign nation as opposed to membership in an ethnic group. Ethiopia’s national identity must be strengthened, and the partisan influence of ethnic dominated regionalism reduced.
Normal traffic in Addis Ababa
America’s Real Interests
America was not created to intervene against sovereign nations like Ethiopia. Today, we are still witnessing the death and destruction across the Sahel caused by President Obama’s military intervention ten years ago when the U.S. overthrew and killed Libya’s leader, Muammar Gaddafi.
There is no objective reason for discord between the U.S. and Ethiopia. None! The conflict between the two nations exists entirely because President Biden has allowed his policy towards Ethiopia to be determined by the globalist-humanitarian-democracy cabal. They arrogantly believe they have the right to impose their so-called democratic-humanitarian construct on Ethiopia. Dictating how Ethiopia should be governed, and who should govern it.
The United States, created to be a Democratic-Republic, was founded on the economic theories of Alexander Hamilton, endorsed by President George Washington. These principles, known as the American System of Political Economy, have guided our more thoughtful U.S. presidents in conducting foreign and domestic policy.
The U.S. in its better moments, unlike the last few decades, has supported the right of governments to preserve the sovereignty of their nation. President Abraham Lincoln was prepared to continue the war, which costs the lives of 750,000 Americans, to defeat the efforts by the southern Confederacy to break up the Union. For President Lincoln, there was no greater importance than safeguarding the sovereign Union of the U.S., and no limit to his actions for that purpose.
The author giving a lecture at Addis Ababa University
As a result of Hamilton’s dominant influence, the U.S. was committed to economic development from its very inception and desired the same for all other nations. Sadly, the last U.S. president who understood the critical importance of economic development for African nations was President Kennedy–almost sixty years ago. To the detriment of the U.S. and the world, America has lost its mission and its vision to create a better future for humankind. The shining “city on the hill” has become a quite a bit dimmer.
The true underlying interests of the U.S. and the American people is exactly the same as that of Ethiopia and its people. All nations have the same shared-common goals:
Improving the material standard of living for its citizens and ensuring a better future for their children and grandchildren.
Nurturing the creative potential of the mind of every child to enhance their ability to contribute to the development of humanity.
The foundation of a real American foreign policy should rest on these two pillars of statecraft. From this higher strategic perspective, Ethiopia, and the U.S., have no fundamental insurmountable disagreements that would prevent the two nations from engaging in policies that will mutually benefit its people now and for the future.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton.
My website had a break-out year in 2021 with over 107,000 visitors. Please subscribe to my blog.
Let me take this opportunity to wish everyone the best during this holiday season
I was asked to participate on inauguration day in an event sponsored by African Women for Biden/Harris 2020. As an American, who is knowledgeable about Africa, I was pleased to present my ideas for an improved US-Africa policy. Below is the content of my remarks..
January 20, 2021
Hello, this is Lawrence Freeman. I am happy to join you this afternoon in celebrating the inauguration of President Biden and Vice President Harris.
I have been working in Africa for the last 30 years promoting development policies for the people of Africa; particularly transformative infrastructure projects. I teach classes in the Maryland area on African history. I am a consultant, researcher, writer, and lecturer. I created my own website: LawrenceFreemanAfricaandtheworld.com to help spread my ideas.
I have traveled to Africa many times and have visited several countries in sub-Saharan Africa. From my work in Africa over many years I have a good understanding of the dynamics of the continent. This administration will bring change to Washington. My hope is that this change will include initiating a new policy for Africa. One that is in the interest of United States, and one the serves the interest of Africa and raises the standard of living of all Africans.
Africa today has close to 1.5 billion people. It is expected that in 30 years by 2050, Africa will have close to 2.5 billion. It will have 1 billion young people and have the largest labor force in the world. If we do not address the needs of Africa today, then we could be looking at a dangerous situation in the years to come, and one that will make African nations less stable and less secure. It is in the interest of the United States and the world to help secure a stable future for Africa. We need new innovative policies that address those concerns.
After 500 years of slavery, colonialism, and neocolonialism, sub Saharan Africa especially, has been left without the basic infrastructure needed to develop its economies. African nations have very limited, if any infrastructure. The kilometers of railroads and roads in Africa is minimal, although it is beginning to change. The most troubling deficit in infrastructure is the reality of a mere 100,000 to 130,000 megawatts of electricity for all of sub-Saharan Africa! This is literally killing Africans. This lack of infrastructure has to be reversed. It is a matter of life and death.
In order for African nations to develop their full capacity, and realize their rich potential, African nations require a massive investment in infrastructure, especially railroads, electricity, and roads.
African nations also suffer from small manufacturing sectors. Africa has the smallest manufacturing capacity of any continent in the world. And this has to change as well.
African nations need to develop a manufacturing sector. I have been advocating for many years that we have to apply the same economic approach for Africa that we applied to build the United States from 13 agrarian based colonies into an industrial powerhouse. The U.S. accomplished this feat by implementing the American System of economics developed by Treasury Secretary Alexander Hamilton, under the direction of President George Washington.
Hamilton understood two principles that were essential for developing the United States that can be applied to Africa today. One, the government has the power to issue credit. African nations desperately need credit for development. Two, Hamilton understood that the U.S. would not be an economically sovereign nation if we had to buy all our manufacturing goods from abroad. He and his followers were strong advocates of building up a manufacturing based economy, which is exactly what Africa needs today.
Africa needs Investment in infrastructure across the continent including high speed railroads connecting major ports and cities, which is being proposed by the African Union. This will take massive amounts of credit. It cannot be done by the private sector alone. The United States should extend long-term low interest credit to African nations for development of infrastructure. The United States should also extend economic assistance to building up the manufacturing capacity in Africa which is quite minimal at this point.
It is in our interest to develop Africa not because we are competing with other nations, but because we want to assist in the development of the African continent. Robust African economies with growing populations will provide larger markets for American capital goods. This will also contribute to creating real security. Poverty is the underlying cause of most conflicts in Africa. The lack of food; lack of water; and lack of jobs generates conflict. Thus, by assisting Africa in developing its economies in these critical areas we will be creating the foundation for peace and security. Simply giving aid alone, which the United States is the leader, will not solve the problem. Providing counter terrorism training alone will not solve the problem. If people are desperate, if they are poor, if they are hungry, they can easily be manipulated into conflict against their brothers and sisters.
I believe Africa can have a very bright future–the more people means the more creative minds. Africa will have the youngest population of any continent in the world. The U.S. should help Africa develop the capabilities to nurture these creative minds because creativity is the source of all wealth.
Presently China is active on the continent. I do not think this has to be a competition between the U.S. and China. The needs of Africa are so large that there are more than enough opportunities for investment by the United States, China, and other nations. Remember the profound words of Pope Paul VI, who in his 1967 encyclical letter Populorum Progressio, said: the new name for peace is development.
It is my hope that with this new administration and in a time of change and optimism we will usher in a new policy of development for Africa. I have written, taught, and lectured on the Hamiltonian economic system and I know this is an approach that will work. It has worked over hundreds of years. It was implemented by President Franklin Roosevelt, who used public, government issued credit, and the Reconstruction Finance Corporation to fund his great infrastructure projects that brought us out of the depression. FDR intended to green the deserts of Africa after the war, unfortunately, he died.
Let us apply those same Hamiltonian economic principles for the development of Africa today. Now is the right time for the United States to extend its moral and economic leadership across the ocean, and act on behalf of the common good, which is in the shared interests of all nations and all people.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
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
“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
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
Excerpts:
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.”
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
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