Interview with Lawrence Freeman: Developing Africa Will Elevate the World to a Higher Economic-Political Platform

April 10, 2021

Watch the above interview with Lawrence Freeman. It is a far reaching discussion that elaborates the importance of infrastructure led development polices for Africa. It highlights  the Transaqua inter-basin water transfer project that will not only reverse the shrinking Lake Cad, but will transform the entire Lake Chad Basin, improving the living conditions for millions of Africans. The conclusion of the interview discuses the significance of the African continent for global development over the next one to two generations. Essential, Africa is the new frontier on the planet earth.  Freeman proffered that if the United States would collaborate with China in leading an infrastructure driven economic transformation of Africa, hunger and poverty could be eliminated.  This would also shift political relations among nations away from the destructive doctrine of geo-politics to one of a common shared development of humankind.

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

‘Green Energy’ Means More Economic Misery for Africa

March 19, 2021

Gyude Moore, former Liberian Minister of Public Works, has published an superbly perceptive article on what the “green-decarbonization” of energy means for Africa: Economic growth in Africa will not be achieved by a ban on fossil fuels. (See excerpts below)

Many years ago, I reached the same conclusions as Mr. Moore; without abundant affordable energy, Africa will not develop, it will not eliminate poverty.  African nations need energy, lots of energy, at least 1,000 gigawatts more energy to advance their agricultural sector and industrialize their economies.  Shutting down existing fossil fueled energy or limiting future energy production to “green energy” will not only retard economic growth; it will increase poverty and kill Africans. If I may be granted a poetic license, I would say, a green energy policy for Africa will lead to a black death.

Let me interpolate my perspective on so called green energy, which  goes beyond Mr. Moore’s excellent analysis.  I find no convincing evidence that human activity is causing climate change. Rather, it is geological and astronomical cycles pertaining to our Sun and our solar system that is the primary cause of changes in our climate. Just ask yourself, how many ice ages and warming periods has our planet experienced over the last one million years before anthropomorphic activity emerged?

Unfortunately, our culture has adopted a false belief system about the nature of human beings that was revived in the 1960s under the slogan of “limits to growth.” This belief structure advocates the necessity of limiting the number of human beings and reducing human activity, guided by a false conviction that the planet is running out of resources.

This is a warmed over version of the population reduction theory espoused by the wicked Parson Thomas Malthus (1766-1834). Even though the Malthusian dogma proclaims that human population growth will exceed the resources of the planet, has been proven wrong, again, and again, Malthusianism never seems to die.

There are two principal  fallacies of this view. First, there are no fixed resources. As humankind discovers new scientific principles of the physical universe, new resources of energy are discovered, such as coal, gas, oil, nuclear, and of course electricity itself.  Second, the physical universe, which is a growing organism, is well-ordered to respond to the creative mental powers of the human mind. In scientific terms, both the universe, and the human creative mind, intrinsically cooperate in anti-entropic growth, i.e., continual expanding development. As the great philosopher, Gottfried Wilhelm Leibniz wrote, there is a pre-established harmony of causality between the mind and physical substance. When we humans exercise our creative potential, we are in harmony with universe, not antithetical  to its environment.   

Sadly, for civilization, western culture, has adopted a prejudicial view of the human race itself, viewing it as an inherently evil monster wantonly destroying the environment. The folly of the “New Green Deal” as it is called, will hurt the United States, Europe, and the entirety of the advanced sector. However, for African nations  and other developing nations, it will have deadly effects sooner.

 

Nuclear energy for Africa: Fulfilling Eisenhower’s dream
Nuclear energy for Africa: Fulfilling Eisenhower’s dream.  Atoms for Peace. (Courtesy of cfact.org)

The Grand Ethiopian Renaissance Dam (GERD) is needed to come into operation post-haste for Africa to progress. The GERD has the capacity to generate over 6,000 megawatts of electricity, which could be added to the East African grid in the coming two to three years . There are other hydro-electric dams being constructed in Africa. There should be no holding back on constructing as many new power plants of all types, as quickly as possible to expand African’s access to electricity. Over 600 million Africans have no access to their nation’s electrical grid. Plus, for African nations to build their manufacturing sectors, industrial consumption of electricity will have to dramatically increase. Nuclear energy, presently fission, and in the future fusion, is the most efficient source of power for Africa. Almost one third of the continent’s nations are presently involved in various stages of acquiring nuclear energy plants. African nations should give the highest priority to securing production of nuclear energy.

(See link below for presentation of nuclear solution)

Excerpts from Gyude Moore:

“Africa has many of the poorest people in the world. For most African countries, the priority is economic growth — first in agriculture, where much of the population still works, and then in industry and services. Worries of an increased carbon footprint generated from economic growth are second to worries that growth may not happen at all

“But people in poverty don’t just need to power a single lightbulb at home; they need abundant, affordable energy at work too. Energy is essential to creating productive agriculture systems, as well as to the expansion of economic opportunity in cities, factories, and modern industries. African countries need energy to grow, and to eliminate poverty — and they can’t do it with small-scale green power projects alone.

“Africa’s first priority is to grow more food. Composting and recycling can only go so far — farmers need synthetic fertilizer to raise yields, and natural gas is the most efficient energy source for fertilizer production… 

“Poor farmers in Africa need much better access to irrigation… Large scale, energy-intensive water control projects that rely on fossil fuels must be in the mix — just as they are in wealthy countries.

Domestic food supply chains provide the vast majority of food across Sub-Saharan Africa, but they’re hampered by poor roads and the unreliable fuel supplies. Construction of much-needed roads requires energy and the transportation sector as a whole remains almost entirely dependent on oil and gas.

“Beyond agriculture, a continuous supply of power from the grid is critical for expanding factory production. Countries like Ethiopia, which have ambitions to become manufacturing powerhouses, are increasingly looking to China for the construction and operation of large-scale power projects that will provide reliable electricity. Off-grid technologies are useful for extending basic energy services but cannot power the industrial activity needed to create millions of jobs and drive economic diversification. There is no world in which Africa can meet its energy needs with carbon-neutral power plants and off-grid solutions

“The continent’s needs are too great to be met solely with current energy technologies…” (all emphasis is added)

Read: Economic growth in Africa will not be achieved by a ban on fossil fuels.

Biden’s Climate Plan Has a Nuclear Solution

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

Sovereignty Must be Respected: Ethiopia’s National Identity Transcends Ethno-Nationalism

March 13, 2021

Watch my interview, Part I above & Part II below, with Ladet  Muleta from PrimeLogue/Media. I discuss the challenges Ethiopia is facing and important strategic subjects relevant to all African nations today.

Topics discussed included: respecting the sovereignty of African nations, the importance of national identity, the deleterious effects of ethno-nationalism, the potential for regime change in Ethiopia, the wrongful division of Sudan, the importance of the Battle of Adwa, Ethiopia’s national mission, real genocide in Africa, the significance of the Prosperity Party for Ethiopia, Africa’s infrastructure deficit, and what is necessary to develop Tigray.

 

Read: Celebrate Ethiopia’s March 1, 1896 Victory at Adwa: Ethiopia is Fighting Another Battle Today to Protect its Sovereignty

Horn of Africa Endangered by Untrue Media Attacks on Ethiopia 

Ethiopia’s Prosperity Party: A Revolutionary Necessity

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

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

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

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

A Hamiltonian Development Policy for Africa Is A Necessity

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)

 

 

 

 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

Ouattara Elected President: Cote d’Ivoire Poised for Progress

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

Lawrence Freeman

November 12, 2020

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

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

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

Ivorians at Treichville lining up to vote

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

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

Respect Cote d’Ivoire’s Sovereignty  

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

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

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

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

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

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

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

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

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

A voter registering to vote

 Destabilization Launched

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

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

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

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

Democracy at the ballot box

Sedition

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

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

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

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

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

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

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

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

 Time to Move Forward

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

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

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

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

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

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

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

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

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

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

 

 

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

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

An October 12, 2020, Oxfam International press release, IMF Paves Way for New Era of Austerity Post-Covid-19, exposes the danger of African nations following the dictates of the International Monetary Fund. A major reason that African nations have fragile healthcare systems is the IMF insistence on countries servicing their yearly debt service at the cost of under funding healthcare. Prime Minister, Abiy Ahmed, emphasized the cost service service early this year: “In 2019, 64 countries, nearly half of them in sub-Saharan Africa, spent more on servicing external debt than on health. Ethiopia spends twice as much on paying off external debt as on health. We spend 47 percent of our merchandise export revenue on debt servicing…” Ethiopian PM Abiy Ahmed: Debt Cancellation for the World to Survive. Read my post: IMF Conditionalities Contribute to Shortage of Health Workers: Africa Suffers.

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

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

Excerpts from Oxfam:

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

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

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

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

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

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

IMF Conditionalities Contribute to Shortage of Health Workers: Africa Suffers

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

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

Africa Needs Real Economic Growth, Not IMF Accountants

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

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

September 14, 2020

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

Excerpt from Prime Minister Abiy

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

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

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

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

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

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

August 14, 2020

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

China Employs Hamilton’s Principles of Credit  for Railroads

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

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

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

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

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

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

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

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

 

Click to access 45-54_4726.pdf

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

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

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

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

Africa Requires Ethiopia Fill Its Dam

Artist drawing of the Grand Ethiopian Renaissance Dam

 

Africa Requires Ethiopia Fill Its Dam

Lawrence Freeman

July 17, 2020

Ethiopia is entering a crucial period for the future of its nation, as we approach the second half of July. Ethiopia must use the forthcoming rainy season (July to September) to begin the partial filling of its Grand Ethiopian Renaissance Dam (GERD) being built on Ethiopia’s Blue Nile River. When fully completed, the GERD, Africa’s largest hydroelectric project is capable of producing over 6,000 megawatts (MW). This is not only a game changer for Ethiopia, but will contribute to transforming the Horn of Africa.

The Blue Nile, which joins the White Nile just north of Khartoum, Sudan, provides 86% of the water that becomes the Nile River. From there, the Nile flows north through the deserts of Sudan and Egypt before emptying into the Mediterranean Sea.  Ethiopia has been involved in intense discussions with Sudan and Egypt, downstream from the dam, about the amount of water to be withdrawn from the Blue Nile to begin filling the GERD’s 76 billion cubic meter storage/reservoir. Egypt continuously attempts to forestall the filling of the dam, alleging that since it is dependent on the Nile, if the volume of the Nile is reduced, its citizens will suffer irreparable harm. For most of the last century Egypt has received the majority of the Nile River’s 84 billion cubic meters (bcm) of water.

Electricity for Development

The GERD, which is 75% finished was entirely funded by the Ethiopian people, is a $5 billion water infrastructure project initiated in 2011. Its purpose is to provide much needed electricity to power Ethiopia’s transition from an agrarian dominated economy to one that encompasses manufacturing and industry. In the years ahead, Ethiopia envisions become a light manufacturing hub for Africa, increasing manufacturing output, and manufacturing jobs by 440%.

The functioning of the GERD is not an option for this emerging nation of 110 million people, but a categorical necessity.

As a physical economist, who has studied Africa for decades, and knows the key drivers of economic growth, I can tell you that nothing is more vital for the survival of Africa, than the production of electricity.  Without abundant and accessible electricity, poverty and disease will not be eliminated. Poverty is the number one enemy of Africa and is the cause of immense suffering for hundreds of millions of Africans.

Approximately 600 million Africans, almost half of the continent’s population, are not connected to a central energy grid. The overwhelming majority of them reside in sub-Saharan Africa (SSA). More than 65 million Ethiopians, 40-45% of the population, do not have access to electricity. While Ethiopia suffers from one of the lowest per capita levels of electrical energy consumption, Egypt’s population of 100 million has 100% access.

When completed, the GERD will increase Ethiopia’s power generation from its current level of 4,500 MW to close to 11,000 MW, which will make it the second largest energy producer in SAA, behind South Africa. Ethiopia has already entered into agreements to export its excess electricity to other nations in East Africa.

“The Ethiopians officials have announced an annual investment of one billion dollars over the next decade in the development of specialized industrial parks.” (Courtesy Medafricatimes.com)

Ethiopia’s commitment to construct the GERD resonates with the same vision that compelled the nation to build the Addis-Ababa to Djibouti rail line; to expand their economy, eliminate poverty, and provide a meaningful future for their expanding young population.

While Ethiopia is blessed with several water systems, the Blue Nile provides between 70% of its surface water. Ethiopia suffers from water shortages, droughts, and food insecurity due to inadequate infrastructure and under development.

It is true that Egypt has one of the lowest water per capita consumption rates in the world at 570 cubic meters per year, well below the global average of 1,000. Ethiopia’s amount is a mere 125 cubic meters per capita, barely more than 20% of Egypt’s level.

However, the Ethiopia government has plainly stated that the intention of the GERD is not to provide water for irrigation or consumption. The motivation and sacrifice of the Ethiopian people in undertaking this mega infrastructure project is to provide electrical power for the purpose of developing their nation. Ethiopia intends on becoming a low-middle income nation. It can no longer allow its people to be without electricity, relegated to burning wood. Improving the lives of their citizens today and future generations is the objective of an operational GERD.

Blue Nile joins White Nile in Khartoum, Sudan

 

Sovereignty Versus Colonialism  

The Blue Nile descends from Lake Tana, deep inside Ethiopia’s mountains, traveling through Ethiopia before entering Sudan. The GERD will capture Blue Nile waters about 40 meters before the Sudanese border. Ethiopia intends to fill the dam’s reservoir with 14.5 bcm of water over the first two years for testing. The withdrawing of this amount from the Blue Nile’s 49 bcm will not adversely affect downstream nations (Sudan, Egypt). In fact, the GERD will benefit these nations by regulating the flow of the Nile, preventing flooding, reducing silt, and decreasing evaporation.

Ethiopia has the wonderful distinction in Africa of having never been colonized. Unlike my beloved American July 4th, celebrating our independence from the British Empire, Ethiopia has no Independence Day. Instead, Ethiopia celebrates Adwa Day, March 1, 1896, when they defeated the Italian army on the battlefield in northern Ethiopia. Yet Ethiopia is fighting the remnants of British colonialism today in its determination to generate energy to free its people from the bondage of poverty.

Contrary to Egyptian claims, the negotiations between Ethiopia, Egypt, and Sudan are not about water sharing or water allocation. There have been two water allocation agreements regarding the Nile waters, that involved only Egypt and Sudan. Ethiopia was not a signatory nor participants to either accord, yet Egypt asserts historical rights over the Nile River, including Ethiopia’s Blue Nile. The most recent such agreement was in 1959, three years after Sudan’s independence from Britain, which recodified the 1929 British Imperialist agreement guaranteeing 55 bcm of Nile waters to Egypt and 18.5 bcm to Sudan. At the time of the 1929 Anglo-Egyptian Treaty, both Egypt and Sudan were colonies of Great Britain as stipulated by the 1899 Anglo-Egyptian Condominium.  This treaty also “granted Egypt veto power over construction projects on the Nile or any of its tributaries in an effort to minimize any interference with the flow of water into the Nile.”

To maintain geo-political domination and control of trade along the eastern spine of Africa, Britain maintained authority over the Nile waters from Cairo down to Khartoum and beyond into southern Sudan.

Ethiopia, an independent nation was not subject to Britain’s edicts and retained sovereignty over the Blue Nile.

Thus, from whence does Egypt’s historical claim to dominance of the Nile originate.

In a statement signed by the Reverend Jesse Jackson, sent to the Honorable Congresswoman Karen Bass, Chair of the Black Caucus, dated May 19, 2020, Rev. Jackson reveals that Egypt’s “historical rights” over the Nile are derived from the British Queen.

He cites a letter dated May 7, 1929, from Mahmoud Pasha, Chairman of the Egyptian Council of Ministers, to the British requesting affirmation of Egypt’s “natural and historical” rights to the waters of the Nile. Lord Lloyd, Britain’s High Commissioner in Cairo, responded on behalf of the Queen:

“I would like to remind your Excellency [Mahmoud Pasha] that her Majesty’s Government in the United Kingdom has already recognized the natural and historical rights of Egypt to the waters of the Nile. I am entrusted with the responsibility of declaring that Her Majesty’s Government in the United Kingdom considers the observance of these rights as a fundamental principle of the policy of Great Britain.” 

Rev. Jackson stresses in his letter, that Ethiopia should not be pressured “into signing a neo-colonial agreement will make Egypt a hegemon over the Nile River.”

U.S. Gets Involved

In September, Egyptian President Al-Sisi requested U.S. assistance in negotiating the operation of the GERD. President Trump asked Treasury Department to host a series of meetings in Washington DC, beginning in November 2019. Sudan, Ethiopia, and Egypt attended along with a representative of the World Bank, with Treasury Secretary Mnuchin, to act as an impartial observer, not a mediator. Ethiopia compromised by indicating they would extend the filling beyond 3 years, to 5-7 years and increased the amount of water to be released from 35 bcm to 40 bcm in seasons of healthy rain. With the negotiations failing to lead to a resolution, Ethiopia requested to postpone the February 27-28 meeting. The meeting proceeded without Ethiopia. Sudan and Egypt attending, but Egypt alone initialed an agreement prepared without Ethiopia’s input, which the Ethiopia Foreign Ministry characterized as “unacceptable and highly partisan.”

On February 28, 2020, an official statement from the US Treasury Department praised Egypt’s “readiness to sign the agreement,” and instructed Ethiopia that “final testing and filling should not take place without an agreement.” The next day, Ambassador Shinn (ret), former ambassador to Ethiopia, whose has spent decades in the State Department, questioned whether the U.S. was “putting its thumb on the scale in favor of Egypt.”

In a June 22, 2020 bipartisan letter addressed to Ambassador David Hale, Undersecretary of State for Political Affairs, seven former Assistant Secretaries of State for African Affairs, asked the U.S. to embrace neutrality regarding the GERD talks. They wrote:

“The U.S. position at this sensitive juncture will also have long term implications. It will either strengthen or seriously weaken our future relations with Ethiopia. While there is no question that resolution of the Nile issue will require flexibility and compromise on all sides, it is not politically viable for Prime Minister Abiy (or any Ethiopian politician) to indefinitely delay filling the GERD. However, the perception—rightly or wrongly—that the United States has sided with Egypt in the negotiations will limit our ability to support efforts aimed at reaching a settlement.”

President Cyril Ramaphosa, Chair of the African Union convening the teleconference on the GERD

 Discussions Move to Africa

Egypt, not satisfied with the negotiating process, attempted to involve the United Nations in forcing an agreement on Ethiopia that violated its sovereignty over the GERD. On June 29, 2020, Egypt with the support of the U.S. brought the matter to the United Nations Security Council (UNSC). The UNSC is not the normal forum to settle such matters, but Egyptians were hoping to mobilize international pressure against Ethiopia. The UNSC has instead preferred to have the African Union (AU) resolve the issue of Ethiopia’s right to operate the GERD. On the previous Friday, June 26, the Extraordinary African Union Bureau of the Assembly of Heads of State and Government conducted a video-teleconference meeting on the Grand Ethiopian Renaissance Dam (GERD). Chairperson of the African Union Commission, Moussa Faki Mahamat noted that more than 90% of the issues between Egypt, Ethiopia, and Sudan had been resolved.

South African President, Cyril Ramaphosa, in his capacity as the Chairperson of the AU is committed to have “an African led process in the spirit of African solutions to African problems.”

In a June 23rd statement, the U.S. Congressional Caucus emphasized the pivotal role of the AU in these tripartite negotiations. They went on to discuss the importance of the GERD for Africa.

The GERD project will have a positive impact on all countries involved and help combat food security and lack of electricity and power, supply more fresh water to more people, and stabilize and grow the economies of the region.”

The Conference of Black Mayors, in a June 29th statement, expressed their support for the filling of the GERD

“Today, on behalf of global leaders throughout the African diaspora that hold the office of mayor, the Conference of Black Mayors released the following statement in support of the Grand Ethiopian Renaissance Dam (GERD) and the impact GERD would have on Conference of Black Mayors member cities…

“It is known that Ethiopia generates 86% of the Nile waters but has been unable to use this considerable natural resource effectively in the past. Now, following more than a decade of impressive economic growth, Ethiopia desires to utilize its naturally endowed resource for its nation’s critical growth and development. Countries throughout Africa are in dire need of electric power to enable and sustain their respective nations rise out of poverty. The creation of a sustainable energy source will create a national infrastructure that directly contributes to the wellbeing of citizens our mayors represents through our global mayors’ association…

“We strongly support a timely fill of the dam without further delays to avoid the economic impact on Ethiopia and neighboring countries.”

 Ethiopia is desirous to cooperate with downstream nations, but it will not have its sovereignty violated by having the operation of the GERD jointly managed or contingent on the requirements of water for Egypt’s downstream High Aswan Dam.

Ethiopia should and will begin filling the GERD. It would be irresponsible not to use this year’s rainy season to begin filling the reservoir, with the dam already 75% constructed. Ethiopia’s leadership will not disappoint the aspirations of the Ethiopian people, who view the GERD as emblematic of their national identity, and a critical vehicle to raise their standard of living and secure a more prosperous future for their posterity.

Ethiopia’s use of the word Renaissance in describing its new dam is not metaphorical. When fully functional, the GERD will lead to a rejuvenation of Ethiopia’s economy and that of its neighboring nations.

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