In this interview, I explain the strategic importance of the African continent for the global economy in this century. I advocate for a complete reversal of U.S. policy or Africa. It is past time for the U.S. to stop complaining about China and correct our own foreign-economic policy toward the nations of Africa. What African nations need most is: long term, low interest loans for the financing of vital infrastructure projects. China and other nations are contributing to this type of development; the U.S. is not.
The U.S. has lost its commitment, its vision of helping the nations of the Global South, especially Africa, to develop. Instead, they give speeches on the need for their Western version of democracy and good governance, when Africans die every day due to poverty, brought on by the lack of infrastructure. Africa is suffering from the lack of electricity, high-speed railroads, roads, hospitals, etc. The private sector is essential for economic development, but it will never finance the infrastructure required to build modern industrialized economies in Africa.
In my interview, I also discuss my visit to the Grand Ethiopian Renaissance Dam (GERD), and its significance for Africa. Ethiopia’s financing and building of the GERD, which will generate 5,150 megawatts of electricity for the Horn of Africa, can be a model for other nations.
The U.S. and the West have to move away from the insane geopolitical doctrine that views the world as a zero-sum game, which carries overtones of racism and colonialism for Africa. The true measure of the success of U.S. policies is: do they lead to an increase in the material standard of living for Africans.
The foolishness of U.S. and Western policies towards Africa is that they are shortsighted and economically thoughtless. With Africa projected to have one fourth of the world’s population by 2050, the largest number of youth, and the biggest potential workforce in the world, not to develop Africa nations is just plain stupid. The African continent can be the center of economic commerce or a breeding ground for coups and violent extremism. That future is being decided by what we do today.
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
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
The Grand Ethiopian Renaissance Dam-GERD, built on Ethiopia’s Blue Nile River will be completed in 2025 with an installed capacity to generate 5,150 megawatts of electricity. This will not only provide increased access of electricity to the Ethiopian population, but supply much needed energy to the nations of the Horn of Africa as well.
January 16, 2023
On December 19, 2022, I was given a VIP tour of the Grand Ethiopian Renaissance Dam, known as the GERD. It was an exciting and joyful experience for me to examine this massive infrastructure project constructed by an emerging sub-Saharan African nation. It is proof that humankind is capable, nay obliged, to intervene upon the physical universe for the betterment of the human race i.e., progress for our civilization. The GERD, when completed, will generate from its thirteen turbines a total of 5,150 megawatts (MW) of electricity for Ethiopia and the Horn of Africa. The GERD is a dam for development. Already, with just 750 MW being produced from two of the GERD’s functioning turbines, Ethiopia is already exporting electricity to Djibouti, Kenya, and Sudan. Additionally, Ethiopia has signed a Memorandum of Understanding with South Sudan to sell electricity.
Upon completion, the GERD will be the largest hydro-electric dam on the African continent and the seventh largest in the world. For this accomplishment, the Ethiopian people and their leadership should be praised for initiating such a grand endeavor over a decade ago, that is today contributing to the transformation of the African continent.
The GERD left, author being briefed the Deputy Project Manager
A Source of Pride
The GERD is located at the Guba district in the Benishangul-Gumuz regional state of Ethiopia, 20 kilometers (km) (13 miles) upstream from the Sudan border, a driving distance of 729 km (453 miles) from Addis Ababa. Construction began in 2011 to capture the hydro-energy potential of the Blue Nile, a winding river of 1,450 km (910 miles) flowing down from Lake Tana, nestled in Ethiopia’s dense range of mountains. The Blue Nile, which joins the White Nile in Sudan under the bridge connecting Khartoum and Omdurman, provides over 80% of the volume of Nile waters that flow north through Egypt to the Mediterranean Sea. Ethiopians, refer to the Blue Nile, which contains 70% of the country’s river systems, as Abay River. “’Abay’ is derived from the Ge’ez word for ‘great’ to imply that it is ‘the river of rivers’.”*
The Ethiopian people self-financed the $5 billion cost of the GERD. No international loans were issued by Western financial institutions. Nor did China provide any financial assistance, contrary to those maligning China’s relationship with Ethiopia and with Africa. As a result, the GERD is sovereignly owned by the Ethiopian people. It is a well-deserved source of pride and national identity, much like the victory of Menelik II against the invading Italian army at Adwa, on March 1, 1896. Recognizing this accomplishment, I have suggested that upon completion of the GERD, Ethiopia should establish a new holiday that will be called, “GERD Day.”
The author standing in front of a painting of the completed GERD pointing to the Amharic words that mean “Our Pride.”
Humans Create Wealth
Standing at the top of the dam’s wall, the GERD, erected between two mountains, with its vast reservoir, is resplendent in its beauty. However, it is more than simple splendor. The GERD is a potent demonstration of the power of human creativity, and humankind’s harmony with the physical universe. All infrastructure is the product of human intervention. We human beings alter the physical universe by creating improvements. This noetic-creative process of the mind is actually transforming our planet, and implicitly the universe, for the advancement of humankind . It is the lack of infrastructure that is killing Africa and harming my United States as well.
The modern form of Lake Tana is estimated to be 5 million years old. Therefore, it is reasonable to estimate, that the Blue Nile, which emanates from Lake Tana’s waterfalls, is millions of years old as well. Thus, the Blue Nile has flowed into the White Nile, unexploited for millennium, before creative Ethiopians willfully decided to make this “lazy river” do some work i.e., produce energy for the progress of civilization.
The GERD situated between two mountains over the Blue Nile River
Given the staggering paucity of energy in sub-Saharan Africa, this injection of 5,150 MW is essential to preserve human life, which depends on energy for all its productive activity. The GERD will significantly improve Ethiopians access to electricity, which is currently estimated at 50%. Energy from the GERD will contribute to powering the industrialization of Ethiopia and will also benefit the greater Horn of Africa.
It is all but impossible for any visitor to the GERD not to marvel at this engineering achievement, but for me, it has additional significance. As a physical economist, I understand the vital role that infrastructure performs in a successful economy. Unlike simple financial transactions, services, and even tourism, all of which macro economists include in computing the GDP of an economy, hard infrastructure is unique. It inserts value by enhancing the productive process, which results in the creation of additional wealth for society. Infrastructure, a physical input, increases productivity, enabling the economy to expand (produce more tangible wealth) at a faster rate during the ensuing production cycle. All economies function on and within a given integrated infrastructure platform. A more technologically advanced platform creates more wealth and profitability for the entire economy/society. An economy without energy, a density of paved roads, and railroads per area, is doomed to create misery and death for its population.
Thus, the GERD, a human intrusion into nature, not only produces desperately needed energy, but raises Ethiopia’s infrastructure platform to a more advanced level that will permeate the entire productive process of the economy.
The author examining the control panel above, and in front one of the operating turbines below.
A Scientific-Engineering Wonder
The height of the dam is 145 meters and is 645 meters above sea level. Its length is 1,780 meters. The reservoir surface area is 1,874 km squared, and will hold 74 billion cubic meters of water. When the water level in the reservoir reaches a height of 640 meters above sea level, it will start flowing into the power generation structure of the dam. There will be 13 independent waterways supplying water to the turbines below through installed pipes, 8.5 meters wide. This directed water flow will rotate the turbines, producing a maximum of 400 MW of electricity per turbine. The water from the reservoir will descend by gravity 123 meters from the head (where the water enters) to the turbines below, at a flow rate of 330 cubic meters per second. These two parameters determine the potential electrical power that can be generated through rotating the turbines 125 times per minute across a magnetic field. U.S. based General Electric (GE) is supplying 5 of the 13 turbines. Presently there are two GE made turbines producing 375 MW each, which has added 500 MW of electricity to Ethiopia’s national grid. This has enabled Ethiopia to export 275 MW of electricity to its neighbors; 75 MW to Djibouti, 100 MW to Sudan, and 100 MW to Kenya. Both these turbines went into operation in 2022. The additional 11 turbines will produce 400 MW each, yielding a total output of 5,150 MW, with average annual energy production about 16,692 gigawatt hours, generated from the GERD.
Building new pipes above to carry water to new turbines being built below
The GERD Is For Africa
The GERD will insert over 5,000 MW of renewable electricity into an African sub-continent starved for power. With its already existing sources of energy, the GERD will make Ethiopia second to South Africa in generation of electricity in sub-Saharan Africa. While this amount of additional electricity is desperately needed, my calculations are that to transform African nations into modern industrialized economies, a minimum of 1,000 gigawatts of power has to be added to national grids. It would be wise for more African nations to emulate Ethiopia’s bold visionary initiative. This is the pathway for poverty and hunger to be finally eliminated on the continent.
There is no danger to downstream nations from the GERD. Ethiopia has extended the time it will take to fill the GERD’s reservoir beyond the original plan of 3 to 4 years, in order to mitigate any substantial reduction in the flow of the Nile River. Annual fillings will continue until achieving completion. Ethiopia is making every effort to maintain the flow of the Blue Nile while this huge reservoir is being filled yearly during the June and July months of the rainy season. After 3 fillings (2020-2022), the reservoir now holds 22 billion cubic meters of water. Sudanese officials report no noticeable decrease in the water levels of the Nile traveling through their nation.
The author being interviewed by Ethiopian News Agency
The GERD will regulate the flow of the Nile, preventing both deadly flooding in Sudan, and the dwindling of the Nile during drier seasons. The GERD will have three spillways with a discharge capacity of 19,000 cubic meters per second to prevent flooding of the Nile. At the higher altitude of the GERD’s reservoir, evaporation, which can account for 10% of the Nile’s total volume of 84 billion cubic meters, will be reduced. Due to the size and depth of the GERD’s reservoir, there will also be a reduction in the transfer of sediments from the Blue Nile.
The drainage area of the Nile Basin includes 11 African nations whose total population is over 400 million and growing, with Egypt and Ethiopia accounting for over half of the people. A long term development plan that provides for the well-being of the people residing in the nations of the Nile Basin, should be established. However, we must be cognizant that the waters of the Nile River are not sufficient to provide for the expanding population of the region. Other alternatives must be sought.
For future generations of the Nile Basin nations to prosper, we should create the equivalent of a second Nile River through nuclear powered desalination. Nuclear power plants can be built along the Mediterranean and Red Sea coasts. This would deliver millions of tons of fresh water and provide thousands of megawatts of electricity to the Nile Basin nations. Application of nuclear energy, would also crucially upgrade the infrastructure platform of a large section of the African continent by introducing advanced nuclear technologies. Many pessimists will complain that this is impractical and will never happen. In response to these naysayers, I say: let us aspire to the same audacious optimism of Ethiopia when they conceived of creating the GERD where only mountains and the Blue Nile existed.
*Wikipedia
Schematic diagram of the Grand Ethiopian Renaissance Dam
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
Speaking with students after my lecture at Addis Ababa University on December 22, 2022
Viewing the Grand Ethiopian Renaissance Dam, December 19, 2022
January 4, 2023
Below are several interviews I conducted on my visit to Ethiopia, from December 11 to December 23, 2022, during which I visited Alamata, Amhara, the GERD , and lectured at Addis Ababa University.
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
Lawrence Freeman with a grain seller at the Alamata market in Amhara, Ethiopia on December 17, 2022
December 31, 2023 My New Year Message
It is well past the time that civilization should establish a higher scientific-cultural existence based on reason and love of humankind. It is unacceptable for large sections of humanity to live in abject poverty, threatened by starvation. The physical universe and the planet upon which we live is organized on a creative principle that coheres with human willful creativity. If we apply the full potential of our creativity, there is no limit to growth of the human population, both qualitatively and quantitively. The foreign policy of every nation should be precisely the same: the materialenrichment of its citizens and the nurturing of the creative process of every child born. Thus, all nations and all peoples have the same shared common interest, motivating all nations to work together for the prosperity and peace of their citizens and future generations.
Ten Principles of a New International Security and Development Architecture
Helga Zepp-LaRouche, president of the Schiller Institute, presented the following summary comments on a new paradigm of security and development, which I share in large part. Reprinted with editing from EIR magazine.
The new paradigm which will be characteristic of the new epoch, and towards which the new global security and development architecture must be directed, therefore, must eliminate the concept of oligarchism for good, and proceed to organize the political order in such a way, that the true character of humanity as the creative species can be realized.
These ideas are meant to be food for thought and a dialogue among all people concerned to find a basis for a world order guaranteeing the durable existence of the human species.
First: The new International Security and Development Architecture must be a partnership of perfectly sovereign nation states, which is based on the Five Principles of Peaceful Coexistence and the UN Charter.
Second: The absolute priority must be to alleviate poverty in every nation on the planet, which is easily possible, if the existing technologies are being used for the benefit of the common good.
Third: The life expectancy of all people living must be prolonged to the fullest potential by creating modern health systems in every country on the planet. This is also the only way how the present and future potential pandemics can be overcome or be prevented.
Fourth: Since mankind is the only creative species known so far in the universe, and given the fact that human creativity is the only source of wealth through the potentially limitless discovery of new universal principles, one of the main aims of the new International Security and Development Architecture must be providing access to universal education for every child and adult person living. The true nature of man is to become a beautiful soul, as Friedrich Schiller discusses this, and the only person who can fulfill that condition is the genius.
Fifth: The international financial system must be reorganized, so that it can provide productive credits to accomplish these aims. A reference point can be the original Bretton Woods system, as Franklin D. Roosevelt intended it, but was never implemented due to his untimely death…The primary aim of such a new credit system must be to increase dramatically the living standard of especially the nations of the Global South and of the poor in the Global North.
Touring the Grand Ethiopian Renaissance Dam, a grand infrastructure project that will generate energy for the Horn of Africa, December19, 2022
Sixth: The new economic order must be focused on creating the conditions for modern industries and agriculture, starting with the infrastructural development of all continents to eventually be connected by tunnels and bridges to become a World Land-Bridge.
Seventh: The new global security architecture must eliminate the concept of geopolitics by ending the division of the world into blocs. The security concerns of every sovereign nation must be taken into account. Nuclear weapons and other weapons of mass destruction must be immediately banned. Through international cooperation, the means must be developed to make nuclear weapons technologically obsolete, as it was originally intended by the proposal which became known as the SDI.
Eighth: In former times, one civilization at one corner of the world could go under, and the rest of the world would only find out years later, due to the length of distances and the time needed for travel. Now, for the first time, because of nuclear weapons, pandemics, the internet, and other global effects, mankind is sitting in one boat.
Ninth: In order to overcome the conflicts arising out of quarreling opinions, which is how empires have maintained control over the underlings, the economic, social and political order has to be brought into cohesion with the lawfulness of the physical universe. In European philosophy this was discussed as the being in character with natural law, in Indian philosophy as cosmology, and in other cultures appropriate notions can be found. Modern sciences like space science, biophysics or thermonuclear fusion science will increase the knowledge of mankind about this lawfulness continuously. A similar cohesion can be found in the great works of classical art in different cultures.
Tenth: The basic assumption for the new paradigm is, that man is fundamentally good and capable to infinitely perfect the creativity of his mind and the beauty of his soul, and being the most advanced geological force in the universe, which proves that the lawfulness of the mind and that of the physical universe are in correspondence and cohesion, and that all evil is the result of a lack of development, and therefore can be overcome.
A new world economic order is emerging, involving the vast majority of the countries of the Global South. The European nations and the U.S. must not fight this effort, but by joining hands with the developing countries, cooperate to shape the next epoch of the development of the human species to become a renaissance of the highest and most noble expressions of creativity!
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
This article below locates precisely the problem with the foreign policy of the West and the United States in particular towards the developing sector-the Global South. The U.S. lacks a commitment or even an understanding of the importance of economic development. This has been the failure of U.S. policy toward Africa since the death of President John Kennedy; lack of vison and moral devotion to develop the world’s population. This is what I am fighting to provide. The world needs a new paradigm to eliminate poverty and ensure peace and stability. This new paradigm or New Bretton Woods must have as its foundation, economic development. Below you will find my lecture on the intentions of President Franklin Roosevelt for the creation of his Bretton Woods.
by Clifford Kiracofe, Dec. 26, 2022, reprinted from China Focus
“In the face of the present international situation, cooperation is essential to meet unprecedented challenges”.
Western countries, joined by South Korea and Japan, voted this month against economic development and poverty reduction resolutions considered by the United Nations General Assembly. The stance of the Western countries and partners reflects the power of finance capitalism and its longstanding support for neoliberal economic policy to the detriment of developing nations.
The United Nations General Assembly Second Committee (Economic and Financial) recently adopted 38 of 41 resolutions. The West and partners voted against two resolutions of special importance. The first vote was 123 for to 51 against on the resolution “Eradicating Rural Poverty to implement the 2030 Agenda for Sustainable Development”.
The second vote was 123 for to 50 against by the West and partners (Turkey abstained) the perennial resolution “Towards a New International Economic Order (NIEO).”
Clearly there is a stark division between the West and its partners and all of the “Rest”. Put in another way, the votes reflect the increasingly sharp contradiction between the developed “North” and the developing “Global South”. Two major powers, China and Russia, align with the Global South.
A wide view of the General Assembly’s 53rd plenary meeting, discussing reports of the Second Committee on Dec. 14, 2022. (UN Photo)
Failure of the Bretton Woods System
The international financial architecture erected in 1944 to serve the devastated post-World War II international community did not live up to its promises. Instead, it became machinery to impose finance capitalism around the world and to oppose alternate development models.
The International Monetary Fund was supposed to help states with balance of payment and debt problems. The International Bank for Reconstruction (IRBD), later called the World Bank (WB), was supposed to focus long term on development following a post-war reconstruction. Over the years, both institutions failed in their purpose owing to a variety of factors.
At the Bretton Woods conference, delegations from China, India, and Latin American countries voiced their concerns for development. But the IRBD/WB gave its primary attention to reconstruction rather than to development.
Developing countries also expressed a desire for an international financial system that would be friendly to developing countries. This meant that states exporting commodities be given attention and that alternate development models be supported. Alternate development models included state-led industrialization.
The prospects for a development focus were dashed by the Cold War and the “East versus West” bloc confrontation. This bloc confrontation was framed not only in political terms but also in economic terms. Thus, the antipathy of the West to various socialist models of development sharpened.
State-led industrial development was rejected. Significantly, the issue of financing development over the long term led to sharp debate over the degree of public and private financing.
Photo taken on Sept. 12, 2012 shows the logo of the World Bank headquarters in Washington D.C., capital of the United States. (Photo/Xinhua)
Decolonization, Development, and UNCTAD
During the 1950s and 1960s, the process of decolonization brought many newly independent states into the international community. Naturally, economic development was at the forefront for them. To address the issue of development, 36 developing countries in 1962 joined together to create the United Nations Conference on Trade and Development (UNCTAD).
The first meeting occurred in 1964 in Cairo. The key issues addressed were: terms of trade by primary commodity exporters, development financing, and export-oriented strategies. At the conclusion of the conference, UNCTAD was made a permanent body within the UN system.
Unfortunately, despite the best efforts of UNCTAD during the 1960s and 1970s, there were no major results for the developing countries. It is not surprising that the developing countries then banned together as the “Group of 77” (G77) to call for a “new and just world economic order”. As a result, in 1974, a special session of the UN convened to promote negotiations and new initiatives to promote economic development.
The negotiations were inspired by recommendations of UNCTAD and aimed to promote cooperation among developing countries. The international context at the time included global economic and monetary instability owing to the disintegration of the Bretton Woods system of fixed exchange rates as well as other factors such as the 1973 oil crisis.
Photo taken on Apr. 9, 2020 shows the Dar es Salaam Port undergoing upgrading of port berths 1 to 7 in Dar es Salaam, Tanzania. (Photo/Xinhua)
The Brandt Commission
In 1977, the “Independent Commission for International Developmental Issues” was established to research and make re commendations. The former German Chancellor, Willy Brandt, was nominated by Robert McNamara, then head of the World Bank, as chair. The report of the commission was released in 1980 and was called the “Brandt Report”.
The Brandt Report focused on the North-South divide and called for measures to overcome it. Issues such as poverty, health, housing, and education were considered. Additional issues included women in development, hunger and food, disarmament, energy, monetary reform, industrialization, and development finance.
“A new century nears, and with it the prospects of a new civilization”, Brandt said in 1983. “Could we not begin to lay the basis for that new community with reasonable relations among all people and nations, and to build a world in which sharing, justice, freedom and peace might prevail?”
The Washington Consensus
In the face of the progressive Brandt Report, international finance capital mounted a campaign against it. One result was what came to be called the “Washington Consensus,” so-called “free market” policy prescriptions proposed during the 1980s and 1990s. This consensus was associated with the imposition of neoliberal economic policies globally. Such policy prescriptions include: austerity, reduction of government spending, privatization, deregulation, free trade, and monetarism.
People walk on Times Square in New York, the United States, Nov. 23, 2021. (Photo/Xinhua)
The decline in the West of a Keynesian consensus in the 1970s coupled with the end of the Cold War in 1988-89 and the demise of the Soviet Union in 1991 gave triumphalist proponents of “market fundamentalism” major play.
Today, the Washington Consensus forms the basis of the international economic policy of the United States and the West, critics say.
The recent votes in the United Nations General Assembly underscore the North-South divide. The West appears to insist on the Washington Consensus and opposes alternate development models.
“New Bretton Woods”
The international community faces a severe recession beginning in 2023, according to some experts. A combination of factors is leading to such an international economic crisis. The economic slowdown in Europe began in 2018-19 and then was followed by the Trump Trade and Tech wars and by the Covid crisis. To these factors, an energy crisis, a supply chain crisis, and a food crisis has been added compounding the problems facing the international community.
In the face of the present international situation, cooperation is essential to meet unprecedented challenges. Various mechanisms, platforms, and processes have been created in recent years to address development. The Belt and Road process, Shanghai Cooperation Organization, Eurasian Economic Union, and BRICS are important initiatives.
Today, a “New Bretton Woods” conference with an emphasis on development as well as on the update and stabilization of the international monetary system must be considered.
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
An African friend of mine recently asked me to express my views on democracy in Africa to her organization. “Watch Democracy Grow.” Contrary to the incessant babbling by Western officials, NGOs and advocacy groups, you can read below a summary of my thoughts on what constitutes real democracy and how to create the conditions conducive for growing democracy in Africa.
I will focus my presentation on the relationship of elections to the deeper principles of fostering a true democracy. Many Westerners, European and American institutions and governments falsely assert that elections are the sign of a functioning democracy. This narrow understanding or interpretation of democracy is insufficient. It contributes to the poor conditions of life throughout most of Africa today, and actually undermines the creation of sustainable a Democratic Republic on the continent.
A Thinking Citizenry
A republic is not a democracy, and for good reason. A majority, consisting of uninformed opinion, should not rule unfettered over a nation. That is why in a functioning Democratic Republic, we prefer the wisest people to govern. But how do we choose the most knowledgeable representatives? Yes, we do it physically at the polling booth in periodic and orderly elections. However, the act of voting itself does not guarantee viability of a nation, much less a thoughtful policy. The only guarantee that the voters are electing or even nominating the most intelligent guardians of their society is; an educated citizenry.
A true democracy requires all its citizens to think and discuss the most appropriate policies for their nation to adopt in order to secure a future for their children and grandchildren. In other words, the citizen should accept the responsibility for shaping the future of their nation, as if they were running for office themselves. Individuals seeking public office, who purport to have the qualifications to decide policy for their nation, are distilled from the population at large. Therefore, to ensure the selection of qualified leaders similarly requires an informed and thoughtful citizenry. A continuously advancing society, both materially and spiritually, existing within an educated science oriented culture, is the underlying platform for a viable Democratic Republic.
Like the individual seeking a leadership position in government, the citizen should have a vision for their nation that extends two generations into the future. Every citizen should believe that his or her participation is vital in shaping the policies that will determine the wellbeing of their progeny for generations to come. As eloquently articulated in the Preamble of the U.S. Constitution, elected government exists to “… promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…”
The fundamental unalterable principle that is the foundation of economics, national and foreign policy, and democracy, is the knowledge that each human being is sacred. It is necessary to acknowledge what it means when one states, that human beings are in the image of the Creator. Every member of the human race is born with the potential for creative thought that is in harmony with the creative principle embedded in the design of our lawfully ordered universe.
Does a mother searching for food for her child have the leisure time to study the best policies for the future of her nation? UN Photo/Albert Gonzalez Farran
Poverty Kills Democracy
Every human being is precious. Degradation or any preventable death, of a member of the human race is a violation of this natural law. Every human being has the right to live a dignified, meaningful, productive existence that affords a better-quality of life for future generations.
Thus, if we truly desire to increase the involvement of civil society in elections and in shaping the future of their nation, we must end poverty and hunger. There is no bigger threat to democracy than allowing substantial portions of a nation’s population to suffer in abject poverty and hunger, with death looming. The gross failure of groups advocating democracy and human rights, is their refusal to comprehend that development is a fundamental human right.
The dearth of electrical power in Africa is appalling and criminal. Producing less than 100,000 megawatts of electricity for a billion or more people in sub-Saharan Africa guarantees that Africans will not have the minimal standard of living necessary for democratic institutions to thrive. Over 600 million Africans have no access to grid electricity and 900 million Africans cook without electricity or gas. Without energy no nation can survive. Yet this shameful state of affairs has existed unaddressed for decades.
Some may object that I have brought extraneous concerns into the discussion of building democratic institutions. I can assure you that I have not. The ability to have access to energy, to feed one’s family, for parents to have a productive job, and for youth to look forward to a hopeful future, are absolutely germane. In fact, these concerns are at the heart of sustaining a democratic government.
If a majority of a nation’s people are hungry, not employed, living in substandard conditions, simply trying to survive, democracy is a mirage.
To reiterate: a true democracy requires a discussion and exchange of ideas among the citizens on what are the best policies for the future of their nation. All citizens and their elected representatives should have a vision for their nation. Society should select those candidates that have the qualifications to implement that vision. Do parents anxiously trying to find food to feed their children have the mental luxury to discuss with their friends and neighbors the most pressing issues facing their nation? Do citizens have the leisure time for such a discussion, and hours of relaxation to read and study the issues of the day? Does adequate housing exist with separate rooms for the children, and electricity to light rooms for long hours of study? Are there enough adequately supplied libraries for parents and children to learn history, philosophy, and science?
Without a prospering economy that offers a sufficient material quality of life, simply lining up at voting stations every four years is insufficient. The questions I have addressed above, are essential to sustaining
democratic institutions.
Africa lacks abundant and accessible electricity. Without electrical power there will be no development, poverty will persist, people will die, and democracy will fail to flourish. (Map courtesy of visualcapitalist.com)
No Democracy With Ethnicity
Ethnic nationalism does not permit democracy. I can assert this with authority, having examined, up close, for thirty years, African nations, whose societies are ethnically divided. Ethnicity is antithetical to a Democratic Republic. Human beings are not determined by their bloodline or their geographic location. The very existence of ethnicity is anti-human. It attempts to falsely differentiate people, rejecting the universal quality of the human species; its unique potential for creativity. Every child born in any location on this planet has the same innate potential for creative thought. Only we human beings have been gifted with a creative imagination. It is this quality of the mind that uniquely characterizes a single universal human race.
A true Democratic Republic recognizes the contributions of all of its people equally and provides for the general welfare of all its citizens, regardless of ethnicity. Ethnic nationalism in Africa, which has existed for decades, in some cases for centuries, as a legacy of colonialism, tears apart the fabric of society and undermines the sovereignty of a nation. Ethnic nationalism contributes to weakening the central government, making it easy prey for foreign instigated destabilizations and attempts at regime change. The self-governance of a nation by its citizens, to create a better future for its people, cannot co-exist with ethnic nationalism. This type of ethnicity prevents democratic systems from taking root and flourishing.
Conclusion
To help build democratic institutions throughout Africa, we need to go beyond simply encouraging nations to have free and fair elections every four years. A viable Democratic Republic is much more than having its citizens show up at the polls every four-five years. Many advocates have not understood that democracy is not possible without development. Nations deprived of economic growth will not be able to provide its citizens with the basic material essentials of life, a prerequisite for a thoughtful deliberative process of governing. It should also be understood that an economically deprived population is desperate and can be easily manipulated against its own government, and its own interest. Economic destitution and the loss of hope for a better life, are the combustible fuel for violence and dictatorships. Conversely, a divided nation can be united when its leaders articulate a visionary program for economic growth that serves the interests of all its citizens,
It is high time we learn this indispensable lesson: democracy cannot succeed without 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
Watch my interview above from November 8, 2022, on ETV.
The Peace Agreement to end Ethiopia’s two year old war, signed on November 2nd, shepherded by the Africa Union has led to a cessation of hostilities and silencing of the guns. This is an essential first step. However, it is not sufficient. Now that the agreement has been signed, the highest priority is to turn an agreement on paper into a durable peace that will bring stability to Ethiopia and the Horn of Africa. From my experience, the best way to achieve durable peace, is to identify a national mission that will necessitate for all parties in the conflict to collaborate for the betterment of Ethiopia. I suggest the government of Ethiopia emulate the policies of President Franklin Roosevelt, (1933 to 1945), by initiating a full mobilization to not only reconstruct Northern Ethiopia, but also expand the growth of the entire Ethiopian economy. Put Ethiopian youth and unemployed to work rebuilding the areas hit hardest by the war, and at the same time modernizing-upgrading the nation’s economic mode of production.
For example. Ethiopia can eliminate hunger and become a net food exporter by doubling and tripling irrigation. This requires more infrastructure, plentiful energy, mechanization, and new scientifically driven agricultural practices.
If the West, in particular the United States, truly cares about the future of Ethiopia and the welfare of all the people in the surrounding region, then the U.S. government should issue bullions of dollars in long term, low interest credits to aid in the development of Ethiopia. Ending sanctions and issuing credits for development would be the most helpful contribution the U.S. could make to the present and future stability of Ethiopia.
The only way to achieve lasting peace is by unifying the people of Ethiopia through a shared common mission, one that is committed to improving the standard of living of all Ethiopians, regardless of ethnicity or geography.
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
Watch my interview above for my latest analysis from Sunday November 6, on implications of Ethiopian Pease Agreement. Here I discuss that the challenge now is to move beyond a cessation of hostilities to creating a durable peace throughout the entire nation. What is most important, is to proceed without delay for the reconstruction of Northern Ethiopia. Ethiopia should emulate U.S. President, Franklin Roosevelt’s 1933 policy in rebuilding the United States from the ashes of the Great Depression. Ethiopia should have a mobilization to rebuild and expand its economy, fully employing its youth in this national task. If the U.S. is thinking clearly, and acting morally, it will not only drop all sanctions against Ethiopia, but immediately readmit Ethiopia to AGOA (African Growth and Opportunity Act) . However, it should do more. The U.S. and the West should ensure peace for Ethiopia and stability to the Horn of Africa by extending long term, low interest credit to support Ethiopia’s task of national reconstruction. It is time for Ethiopia to leave the past behind, and define a national mission for the future that will unify the nation: a transformational economic development plan to eliminate poverty.
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
