Jeffrey Sachs Agrees With Me: Financing Infrastructure Essential for Africa’s Development

March 7, 2023March 7, 2023 Lawrence Africa, African Union, Alexander Hamilton, China, credit, debt, democracy, development, electricity, Infrastructure, Jeffrey Sachs, poverty

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

Professor Jeffrey Sachs, Economist, speech to the Africa Union: the Times are Perfect for Longterm Rapid Development

Read my earlier posts:

My Thoughts: Poverty & Ethnicity Kill Democracy in Africa

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

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

Freeman Interview: ‘Fighting the Fight’ for Ethiopia, Africa, Justice, and Economic Development

January 3, 2023January 3, 2023 Lawrence Africa, agriculture, Alexander Hamilton, China, credit, development, energy, Ethiopia, ethno-nationalism, GERD, Infrastructure, poverty, Railroads, US, US-Africa

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

Celebrate July 4th Time to Adopt Hamilton’s Industrialization Polices for Africa

July 3, 2022September 4, 2022 Lawrence Africa, agriculture, Alexander Hamilton, British, credit, development, First National Bank, George Washington, industrialization, Infrastructure, maufacturing, Report on Manufacturers, Thomas Jefferson

*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.

Read: Hamilton-fathered-our-economic-independence

Hamilton Fathered Our Economic Independence

Read my earlier posts:

A Hamiltonian Development Policy for Africa Is A Necessity

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

Nations Must Study Alexander Hamilton’s Principles of Political Economy

For the Development of Africa: Know and Apply Franklin Roosevelt’s Credit Policy

June 9, 2022June 9, 2022 Lawrence Africa, Alexander Hamilton, Bretton Woods, British colonialism, credit, development, Ethiopia, Franklin Roosevelt, Great Depression, Harry Dexter White, IMF, industrialization, Infrastructure, Jesse Jones, John Maynard Keynes, Reconstruction Bank, Reconstruction Finance Corporation

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.

Franklin D. Roosevelt: A US President Committed to the Development of Humankind

Watch my earlier presentation on Alexander Hamilton: Alexander Hamilton’s Credit System Is Necessary for Africa’s Development

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.

Hard Infrastructure in Africa: Essential for Economic Growth. Development is a Human Right!

August 11, 2021November 7, 2021 Lawrence Africa, China, credit, development, economic growth, electricity, energy, high speed rail network, human right, Infrastructure, Railroads, Rowland Ataguba

August 11, 2021

Watch the video above for a 30 minute discussion on the need for Africa to have 50,000 kilometers of high speed rail lines connecting the continent. Energy, (an additional 1,000 gigawatts of electricity) and railroads are essential for Africa’s development. Electricity is a human right! Railroads are a human right! Development is a human right!

Rowland Ataguba is an expert on Railway Infrastructure Development and has worked extensively around the world. He is the Managing Director of Bethlehem Rail Infrastructure Ltd in London and has experience working on major infrastructure projects in Africa and the U.K. We welcome Rowland to talk with us on all matters concerning the African High Speed Railway Network and his interesting ideas on a very important plan for the future of the continent.

PD Lawton, creator of the website: http://africanagenda.net/

Lawrence Freeman, physical economist

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

Lawrence Freeman Discusses Key Principles For Developing Africa

July 6, 2021July 6, 2021 Lawrence AU, credit, development, Egypt, electricity, Ethiopia, food, GERD, Infrastructure, infrastructure bank, Lilabela, Marshal Plan, Nigeria, poverty, Railroads, US

Watch the 8 minute video above, where I outlined succinctly the essential policies necessary for the development of Africa. I participated in a July Fourth celebration webinar sponsored by “Watch Democracy Grow.”

In the longer video below I discuss a range of topics regarding Africa’s development. After visiting Nigeria (Kaduna and Abuja) for two weeks and Ethiopia for one week, I became more convinced than ever, that peace and stability will come only when the basic necessities of life, such as food, water, electricity, land, and railroads are provided by industrialized African nations.

Lawrence Freeman: Stories from Africa – East to West

LAWRENCE FREEMAN, POLITICAL-ECONOMIC ANALYST FOR AFRICA…
He is a highly respected researcher, writer, and speaker on a variety of topics concerning Africa, who has visited African nations 30 times.. An outspoken critic of neo colonialism and the ICC. Insisting that Africa no longer be forced to live in a dark age, he has consistently brought African governments a roadmap for transformative infrastructure projects. As the author of dozens of articles and reports on Africa. Freeman served as a member of AFRICOM’s Advisory Committee under U.S. General Kip Ward. Most recently, he was appointed Vice Chairman of the Lake Chad Basin Scientific Committee and is currently working on a project to replenish the shrinking Lake Chad. Presently, he is teaching courses on the history of Africa, utilizing his decades of experience and knowledge. In this video he takes us through a journey in Africa where he has just returned from visiting both Ethiopia and Nigeria.

US Can Improve Relations With China by Adopting a Joint Mission: Assisting in Africa’s Development

March 12, 2021March 12, 2021 Lawrence Africa, Belt and Road Initiative, China, Corporate Council of Africa., credit, development, economic growth, electrical power, go-politics, Infrastructure, President Biden, Stephen Hayes, US

March 12, 2021

This article, Towards an Improved US-China Relationship, by Stephen Hayes, former President and CEO at the Corporate Council of Africa, suggest a pathway for the new administration of President Biden to improve U.S.-China relations, which thoughtfully involves Africa.

The following suggestion by Hayes is an important contribution to improving relations between the two super-powers. One that I have advocated for years: collaboration on the urgent task of developing the African continent. If this common mission is adopted by statesmen in both nations, there is no challenge that can’t be surmounted.

“It is simple but also perhaps simplistic to propose that both countries work together in a third country or region to aid the development of that country or region. To do so, both countries should have some common goals as to why they would want to work together. In Africa, there needs to be close communication in aiding and abetting the fight against terrorism, perceived as a growing problem on the continent. While there has been some cooperation in this area between the two countries, at least behind the scenes, that cooperation has diminished these past four years. The US perceives terrorism as a major issue in Africa and will likely base much of its development approach for the next four years on this perception. China has similar concerns, but they likely are not as deep as those of the United States. Nevertheless, common security concerns do provide a basis for cooperation. Economic development of a country is also in the interests of China and the United States, but may require much more effort in finding common ground. Working through regional economic groups in Africa on continental infrastructure projects may be another area of mutually beneficial cooperation.” (emphasis added)

It is unclear whether the Biden administration will continue the increasingly antagonistic posture towards China that the Trump presidency adopted. Anti-China group think has gripped both parties in the Congress, and a good portion of the American population as well. The driving force for this potentially dangerous attitude, is the ideology of geo-politics, which reduces the world of nations to winners and losers in a zero-sum game. The alternative is to recognize the shared common interests of all nations and all human beings. The material and intellectual development of human beings, all of whom uniquely possess the power of creative thought, is in the interest of every government. Humanity benefits when nations collaborate to end poverty and enrich the lives of those suffering from economic hardships.

Over four hundred million Africans live in poverty-less than $1.90 per day, and the number is increasing each year. The African continent has the greatest deficits in hard and soft infrastructure of any continent in the world. The shortage of electrical power is literally killing Africans every day. Through China’s Belt and Road Initiative, infrastructure is being built in numerous African nations, but is woefully insufficient for the needs of Africans.

Rather than the U.S. viewing China as an adversary in Africa and defining U.S. policy towards Africa as “countering China,” let us take a more elevated approach. Let President Biden announce that the U.S., with its great economic potential, will collaborate with China in developing Africa and eliminating poverty across the continent, in the next one to two generations. In reality, this cost the U.S. nothing, and the benefits are more than rewarding. Through the issuance of credit for vitally needed infrastructure throughout African nations including projects for: electricity, roads, railroads, schools, airports, healthcare, housing, and water management, the lives of billions of Africans will be transformed. In return, Americans will know they have contributed to the wellbeing of their brothers and sisters in Africa. With the elimination of poverty, the fertile swamps of wretched economic deprivation from which violent extremist groups recruit alienated and desperate youth, will be drained. The spread of terrorism on the African continent will be reversed and over time diminished. AFRICOM, can shift its focus to applying the skills of the Army Corps of Engineers for construction of dams, bridges, and roads. Economically, the pay back for long term, low-interest credit, will be huge. Africa’s growing population, projected to reach 2.4 billion in one and a half generations, will become a large and expanding market for American goods. As African nations experience economic growth, they will be trading with the U.S. for technologically advanced capital goods necessary for the continuous development of their economies. As the Chinese say, it will be “win-win” for Africa, the U.S., and China, and truthfully, for all nations on our planet.

I give my full-throated support to Steve Hayes’ proposal for China and the U.S. to work together to develop African nations as a means of improving U.S.-China relations.

Read: Towards an Improved US-China Relationship

My Thoughts On An Improved US-Africa Policy for President Biden

January 26, 2021February 11, 2021 Lawrence Africa, African Union, African Women, Alexander Hamilton, China, colonialism, credit, development, electricity, Franklin Roosevelt, Infrastructure, manufacturing, peace, President Biden, Railroads, slavery, Sub-Saharan Africa, US

January 26, 2021

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.

A Hamiltonian Development Policy for Africa Is A Necessity

January 18, 2021February 11, 2021 Lawrence Africa, Alexander Hanilton, American System, colonialism, credit, development, economic growth, energy, Ethiopia, industrialization, Infrastructure, Kenya, Lake Chad, manufacturing, Nigeria, nuclear energy, poverty, President Buhari, Railroads, Report on Manufacturers, slavery, Sub-Saharan Africa, Transaqua

In 1791, America’s first Secretary of the Treasury, Alexander Hamilton, put forth his grand plan for industrializing the United States. In his “Report on the Subject of Manufacturers,” Hamilton rejected the then common assumption that America could prosper with an agricultural base, instead arguing that the new Republic should concentrate on developing industry. (courtesy of enterpriseai.news)

January 18, 2021

In memory of Dr. Martin Luther King (1929 to1968), a champion for the poor.

On Sunday, January 10, 2021, the Rising Tides Foundation (risingtidefoundation.net) hosted a class by me entitled: A Hamiltonian Solution for Africa. The first video below is my two hour presentation. The second video is an hour of questions and answers. For those of you who have the time and the desire to learn, I believe you will find these videos beneficial.

Alexander Hamilton, the first U.S. Treasury Secretary under President George Washington, prepared four economic reports establishing the American System of Political Economy in opposition to the Adam Smith-British free trade system. Hamilton understood that the U.S. would not become a sovereign economically independent nation without a robust manufacturing sector. This is true of African nations today, which have the lowest dollar amount of manufacture added value in the world. African nations are subjected to unfavorable terms of trade and weak currencies, because they are compelled to export their natural resources and import capital goods. Hamilton would not allow this to happen to the young U.S. following its independence from Great Britain.

My personal mission is to eliminate poverty and hunger in Africa by educating my African friends on the scientific economic principles of Alexander Hamilton.

“The intrinsic wealth of a nation is to be measured, not by the abundance of the precious metals, contained in it, but by the quantity of the production of its labor and industry.” Alexander Hamilton, Report on a National Bank, (December 13, 1790)

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

June 6, 2020 Lawrence Africa, Bretton Woods, COVID-19, credit, debt cancellation, democracy, healthcare, Infrastructure, Marshall plan, pandemic, unemployment, youth

June 6, 2020

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

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

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

WHERE: TELECONFERENCE/WEBINAR CONFERENCE SERIES.

When: June 16th, 17th, 18th.

Time: 9.30 am – 12.30 pm (EST).

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

Time: 9.30-11.20am

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

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

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

4.Dr. Abdiqadir Yousuf Abdullahi.

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

Africa and the World

By Lawrence Freeman

credit