President Buhari Continues to Call for Inter-Basin Water Transfer to Save Lake Chad

Nigerian President, Muhammadu Buhari continues to call for an inter-basin water transfer from the Congo River Basin to save the shrinking Lake Chad. The project he is referring to is Transaqua, which was adopted at the International conference to Save Lake Chad in Abuja in February. Transaqua is a transformative infrastructure project will potentially affect 12 African nations in the Great Lakes region and Lake Chad Basin. I have been an advocate of this project for many years and was able to discuss it with President Buhari shortly after he was elected in March 2015.  Funding for a feasibility study of Transaqua is being negotiated now with the Italian government. It is in the interest of all African nations, the African Union, and Africa Development bank to support this project. In the words of the former Executive Secretary of the Lake chad Basin Commission: “The loss of Lake Chad would be a catastrophe for Africa.” 

We will continue to keep Lake Chad issues on front burner says President Buhari

The Sun Nigeria
Juliana Taiwo-Obalonye, Abuja

President Muhammadu Buhari, has stressed that his administration will continue to keep the issue of reviving the Lake Chad on the front burner and exert more commitment from the developed countries to do the needful.

He stated this during a courtesy visit by the Nigerian Conservation Foundation (NCF) and his investiture as Patron of the Foundation, President Buhari said it was regrettable that the issue of the receding Lake Chad had not been addressed till recent times.

‘‘The problem of climate change is real. The desert encroachment is aggravating it. The population explosion in Nigeria is another big challenge.

‘‘The drying up of Lake Chad is a serious thing for Nigeria and the Lake Chad Basin countries. Nigeria is much more affected because fishing, animal husbandry and farming are affected very seriously.

‘‘We are trying to prick the conscience of the developed countries that have the resources and the technology to quickly execute the inter basin transfer from Congo Basin to Chad Basin,” he said.

In a statement by the Special Adviser to the President on Media and Publicity, Femi Adesina, said Buhari also welcomed the advocacy by the Foundation on the need to protect endangered plants and animals in the country.

To this end, he directed the Federal Ministry of Environment to reflect this in its budgetary requirements in the next fiscal year, adding; “the rate at which animals are being hunted and eliminated around the country, we must seriously give the forest reserves our support and attention as much as we can.”

Earlier in his remarks, Alhaji Ahmed Joda, Member, Board of Trustees of the Foundation told the President that the nation’s wildlife was fast becoming extinct.

He added that for more than 10 years, the rate of deforestation in Nigeria has been one of the highest in the world with the country losing close to 95 per cent of its original forest cover.

He thanked the President for placing great emphasis on environmental issues, especially the aspect of climate change, and invited him to take charge of ‘Greening Nigeria.’

“We are all proud of the role that the Nigerian delegation headed by Mr President played during the climate change agreement in Paris and your single-minded determination to keep the issue in the front burner both at home and abroad.

“Your Government has also recorded remarkable achievements in addressing soil erosion with about 60 projects executed by the Ecological Funds all over Nigeria.

“This is not surprising when we remember that it was you, in your first coming as Head of State, that signed the first comprehensive law that addressed the protection of endangered plants and animals in Nigeria through the ‘Endangered Species Decree of 1985’, Joda said.

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‘Investigate or Legislate’: What Will the Democrats in Control of the House of Representatives Do?

With control of the House of Representatives, the Democrats have the opportunity to provide leadership for the United States. They will have to decide. Do they want to make their primary focus attacking President Donald Tramp, by continuing their impotent investigation of his alleged collusion with Russia in the 2016 election? Or will they actually provide a vision for the future of the USA, by enacting bold new legislation.  Any attempt to impeach President Trump would be a farce that would virtually ensure the Democrats would be defeated in the 2020 presidential election.

President Trump has demonstrated that he lacks a comprehensive understanding of the scientific principles that created the USA. He has also displayed an unAmerican phobia to non-white foreigners from a multitude of countries arriving in the USA.  However, President Trump has distinguished himself in forming a close relationship with the President of China, Xi Xinping. He has also attempted to establish a working relationship with the President of Russia, Vladimir Putin. To the detriment of the USA (and the world) many Democrats, along with some members of his own administration, have adamantly opposed these positive initiatives by President Trump. President Trump has many shortcomings, but to his credit, he is not an ideologue, and he is not a devout follower of the geo-political doctrine on foreign policy. If President Trump took the audacious step to partner with China’s Belt and Road Initiative, the world could be transformed.

Important polices must be implemented now to provide for the welfare of our citizens, which will require bipartisan action in the Congress. For example. Both the Republican and Democratic parties have made verbal commitments to support a Glass Steagall banking reorganization, yet no action has been taken by the Congress or this administration. Another opportunity for bipartisanship would be the passage of legislation for a transformative infrastructure plan to rebuild the USA.

Below is a useful article discussing how President Trump working with the Congress could fund large-scale infrastructure projects. 

A New Opportunity for a National Infrastructure Agenda?

Nov. 7, 2018—One thing is definitive about the results of the U.S. mid-term elections: Neither political party put a solution to the country’s economic and financial disaster on the national agenda.  That doesn’t mean that many of the new Democratic members of Congress don’t have a strong commitment to address the economic crisis, however. They can potentially galvanize the veteran Congressmen into action. The question is, will competent, workable proposals be put on the table in the 116th Congress?

Statements from President Trump and the putative incoming House Speaker Nancy Pelosi in the immediate aftermath of the election were notable for addressing the possibility of bipartisan progress on infrastructure. Both statements were quite vague, however—and, as some will recall, Trump has offered cooperation on infrastructure before. One need only look at his current blackballing of the New York City Gateway project to see how hollow that promise was.

Rep. DeFazio in his campaign photo.

More substantive have been remarks from the incoming chairmen of two House committees. Rep. Peter DeFazio (D-OR) is expected to take over the Transportation and Infrastructure Committee. According to a Nov. 7 Reutersarticle, DeFazio is prepared to put forward his previous proposal for a $500 billion plan, which would involve issuing 30-year bonds, using funds from  raising gas taxes. He believes Trump would accept an increase in the gas tax.

“There has to be real money, real investment,” DeFazio said today. “We’re not going to do pretend stuff like asset recycling. We’re not going to do massive privatization.”

Rep. John Yarmuth (D-KY), who is slated to take over the House Budget Committee, addressed the infrastructure question a few days before the election, according to an Oct. 30 Politico Pro article. He said he would be making a proposal which “involves some very long-term bonding authority that would help finance an infrastructure bank.”

The Issue of Funding

The inevitable sticking point in Congressional discussions of an adequate infrastructure bill—which should ultimately amount to spending trillions of dollars to meet the infrastructure deficit—will be funding. President Trump has already indicated his preference for off-loading the cost to local and state governments, and proposes to even cut the Federal contribution from today’s 80% to 20%. That’s a formula for non-action. The Democratic plans have not been specific.

The danger lies in a potential “compromise” that pushes Public Private Partnerships (PPPs) as the solution to the funding dilemma. PPPs are presented as a means of reducing, or eliminating, public costs, by contracting with private companies to either build, manage, or both the needed element of infrastructure. The claim is that the private company can do the job cheaper and more efficiently, and the public will benefit.

Moving ahead on Gateway would be a good place to start.

Not so fast. First, some of the cheapness comes at the cost of labor—by violation of Davis-Bacon standards–and quality. Secondly, private contractors only enter PPP agreements on the guarantee that they will receive a revenue stream to cover their costs, and provide a profit. This can amount to tolls on a road, water bills for a water company, and the like. And if the stream doesn’t provide what the company considers adequate profit, what will it do?  Cut maintenance? Cut off people’s water supply? Both results have occurred! And they are unacceptable.

So, forget PPPs. The solution lies in taking the lead from Franklin Roosevelt and Alexander Hamilton. The Federal government has a unique capability (and responsibility) to create credit to modernize and rebuild our infrastructure. That credit can in fact be issued by turning current (virtually non-performing) government debt into bonds supporting an infrastructure bank, against which it would then issue new loans to help finance the long overdue infrastructure projects.  These would not only be short-term, but also long-term projects, such as the Gateway Project, California High Speed Rail, and the desperately needed water projects in the nation’s interior, for starters.  If the right projects are selected, the infrastructure constructed will pay back more to the economy in increased productivity than is expended–as well as creating millions of new, high-paying jobs.

For a modern proposal for such an infrastructure bank, click here

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Nigerian President Buhari Wants Europe, and US to Help Recharge Lake Chad

President Buhari is right and should be commended for requesting that Europe and the United States help in recharging the shrinking Lake Chad, which is at 2,000 square kilometers-less than 10% of its area in 1963.  At the Abuja conference to Save Lake Chad in February, organized by President Buhari, the Transaqua inter-basin water transfer project was adopted as the solution to saving Lake Chad.  Transaqua is a transformative water infrastructure project that would connect the nations of the Great Lakes and the Lake Chad Basin through a 2,400 kilometer canal. Thus creating a new platform for expanded trade and commerce between these economies. Unlike the US and Europe politicians, who feign concern about the migrant crisis, President Buhari and other African leaders understand that the best way to prevent Africans from risking their lives crossing the Mediterranean is; to create economic growth in the Sahel/Sahara. After decades of inaction, the Italian government has given the Lake Chad Basin Commission 1.5 million Euros to begin a feasibility study by Bonifica, the Italian engineering company that created the Transaqua design over 35 years ago.  I have advocated the Transaqua project for over 20 years, and was able to discuss it with then President-elect Buhari a few days after his election in March 2015. It is most unfortunate that with the single exception of the current Italian government, Western leaders have failed to invest in major infrastructure projects like Transaqua that will generate economic growth in African nations. Let us hope that Western institutions act appropriately to President Buhari ‘s request to help recharge Lake Chad; a vital body of water in Africa’s desert. 

Buhari Wants Europe, US to Help Recharge Lake Chad

President Buhari
  • It would be the greatest western investment in Africa

By Omololu Ogunmade in Abuja

President Muhammadu Buhari yesterday in Abuja said the greatest investment Europe and the United States could make in Africa now was to help in accomplishing inter-basin water transfer to recharge the Lake Chad.

Receiving the Chairman of the African Union Commission, Mr. Moussa Faki Mahamat, in the State House, Buhari recalled how the Lake Chad had served as the source of livelihood for millions of West African citizens in the past.

Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, said the president listed countries which benefitted immensely from the lake in its productive years as Chad, Cameroon, Niger and Nigeria.

The president, according to the statement, also noted that Lake Chad  had now shrunk to 10 per cent of its initial size as a result of the huge impact of climate change.

He was quoted as saying, “People who depended on the Lake for fishing, farming, animal husbandry, and many others, have been thrown into dire straits.

“That is one of the reasons youths now dare the Sahara Desert and the Mediterranean Sea, to seek greener pastures in Europe. But helping to recharge Lake Chad will help a great deal in curbing irregular migration.”

The statement added that Buhari observed that the size of Nigeria and resources available there-in placed a lot of responsibilities on the country’s shoulders and pledged that the country would continue to fulfill its obligations to the African Union (AU).

Adesina further quoted the president as saying, “At all international fora, we emphasise the matter of Lake Chad. We also talk about the influx of small arms from the Sahel, which worsens the security situation between herders and stagnant farmers. We will keep the issues on the front burners.”

Furthermore, the statement added that Mahamat, in his remarks, praised Buhari, saying his leadership has been good for Nigeria, the AU, and Africa in general.

“He added that the next AU summit would look into the reform of the AU Commission, positioning the AU and Africa in the world, Single Air Transport Market, the Africa Continental Free Trade Area, and other issues,” the statement added.

Read:  Save Lake Chad With Transaqua: Presidents Roosevelt and Nkrumah Would Concur, by Lawrence Freeman

 

 

 

 

 

 

Nigeria and Sub-Saharan Africa Should NOT Have the Majority of Poor People.

This  is absolutely unacceptable. There is no objective reason for Nigeria and Sub-Saharan Africa to have the highest percentage of poor people in the world, with all its natural resources and people. This is the result of failed policies that began with the so called “Washington Consensus” beginning in the 1980s. Under the International Monetary Fund’s diktats and Structural Adjustment Programs(SAPs), the economies of African nations were destroyed and many have still not recovered.  African nations are beginning to follow a different model in collaboration with China’s Belt and Road Initiative. The IMF and World Bank models which measure statistical monetary aggregates ignore the most essential ingredient necessary to create economic growth: technologically advanced infrastructure platforms, integrating rail, energy, water, and roads. Only in the last ten years is infrastructure finally being built, after it was outlawed under colonialism and neo-colonialism, (except for roads and rail for resource to port and transporting colonial soldiers).  For example, the Sudanese people are suffering terribly from a lack of economic growth, because Sudan has been threatened not to deviate from IMF dictated macro-economic parameters. The Sudanese people will rebel, if Sudan continues to adhere to the murderous policies of the so called “free market.”

It is time for African nations to over throw the old model and break free from the monetarist grip of the IMF and WB. Inclusive growth, as it is called, will only happen when there is improvement in the real-physical economy. 

It is projected that by 2050 Nigeria will have 400 million people and Africa as a whole 2.4 billion. Despite the hysteria of the “zero-growthers,” Nigeria and Africa are not suffering from over population, but underdevelopment of its vast wealth. Each new human born can be a new source of wealth, if their creative potential is nurtured and developed. Thus, the Africa continent  with its projected large population, should become the center development (not poverty) of world economy, if we act now to massively expand infrastructure across the continent.

 

Nigeria to host 90% of extremely poor by 2030, says World Bank

The Debate On China’s Role In Africa; A Different Point Of View

The Council of African Security and Development-CASADE has published my article regarding the debate over whether China is forcing African nations into a new ‘debt trap.’ Despite the propaganda from some Africans and Westerners, China is not the new imperialist in Africa. You can read my analysis below.

CASADE: COUNCIL ON AFRICAN SECURITY AND DEVELOPMENT

 

 

 

Ghana’s Unrealized Potential and Nkrumah’s Fight vs the British

I addressed a Ghanaian  organization in NYC several years ago. I discussed the unrealized potential of Ghana and Kwame Nkrumah’s fight against the British. Since then I have parted company with EIR magazine, but my analysis remains truthful. 

 

 

US-China ‘Trade War’: What Implications For Nigeria?

My comments on the potential effects for Nigeria and Africa from a trade war between the US and China are quoted below in an article by “The Herald” a national Nigerian newspaper. (Not all of my comments are reported with complete accuracy)

The Herald Nigeria

US-China ‘Trade War’: What Implications For Nigeria?

The escalating trade disputes between the United States (U.S) and China have kept the global markets on their toes with uncertainties pervading the global economy and implications for other countries.

Analysts say the trade tensions between the world’s two largest economies portend consequences in commercial relations among countries as it has repercussions in differing degrees for some of these countries.

China constituted U.S. largest supplier of imported goods worth more than 500 billion dollars in 2017 while U.S. exports to China was approximately 185 billion dollars at the same time

However, U.S. President Donald Trump imposed varying degrees of tariffs on billions of dollars worth of Chinese products starting early 2018 and China also retaliated with its own tariffs on U.S. goods.

Since then, both countries have engaged in full-blown tit-for-tat measures that have unsettles the global markets in different degrees, which is gradually manifesting to a full-blown trade war.

Political-economists express concerns that African countries could be hit because of the global network of economies in that what affects the U.S. and China’s economies affects the entire global economy.

They say for instance, the impact was largely felt on the stock markets in Nigeria, Kenya and South Africa – with Nigeria and South Africa being the two largest economies on the continent.

Mr Lawrence Freeman, a U.S.-based Political-Economist Analysts for Africa, said that the trade war brewing between the two world superpowers could have dire economic consequences for Nigeria.

Freeman said: “If President Trumps precipitates a full-blown tariff war; it could disrupt the world economy, inflict financial penalties on China, and undermine China’s currency.

“This could lead to harmful effects for Nigeria, since both nations are coordinating currency transfers and have worked together to improve, Nigeria’s agriculture with billions of dollars of investment’’.

He opined that Trump’s trade war with China has serious political, economic, and even military implications for all nations of the world, alleging he {Trump} has little understanding of how an economy functions, and how to achieve real economic growth.

Trump is a follower of the myth of free-trade “buy low-sell dear” without regard for the economic security of a nation.

“For example, in the most recent meeting between Presidents Trump and Muhammadu Buhari, Trump proposed increasing the sale of U.S. agricultural products to Nigeria.

“This is the absolutely wrong approach. Nigeria should be reducing the amount of food imports by building up its agro-manufacturing sectors,’’ Freeman said.

Freeman also said that China, on the other hand, has embarked on an economically healthy policy of investing in infrastructure in Nigeria and Africa to drive economic growth, as evident in the Belt and Road Initiative.

According to him, Nigeria, like the rest of the African, needs massive investment in hard and soft infrastructure.

He noted that in collaboration with China, Nigeria is building railroads across the country for the first time since colonialism, observing further that this, with increasing energy production, “is essential for Nigeria to develop and achieve stability.

“President Trump should be more thoughtful in helping Nigeria overcome its huge infrastructure deficit, by joining China in expanding the BRI in Nigeria and across Africa.

Continue reading

Africa Needs Tractors, Nigeria (and Africa) Need Energy Too

{For Africa to provide jobs and feed its growing population, it needs energy and tractors to build a robust agricultural-manufacturing sector. Africa’s population is expected to double to 2.4 billion by 2050. If African nations massively invest NOW in infrastructure and industrialize their economies, the African continent can become the center of the world economy in two generations.}

Tractors Needed in Africa to Boost Agricultural Output

Oct. 8, 2018– The {Frankfurter Allgemeine Zeitung}-(FAZ) has discovered that agricultural output in African countries would be much higher if the farmers there had tractors to work their land, instead of using wooden ploughs and oxen to pull them. The output would be five to ten times higher, experts told {FAZ}. Swiss globalization critic Jean Ziegler said already in 2013 that the entire African continent had only 85,000 tractors in 2011, while Germany alone had almost 2 million tractors.

One problem faced by African farmers is that, with their miserable income, they cannot afford to buy tractors and other agricultural machinery on the world markets; not even the simple tractor models produced by Brazil’s AGCO, which have no fancy equipment and no GPS and cost only $10,000. Another problem is that tractors need diesel fuel, which is not available in such volumes in most parts of Africa because the transportation and storage infrastructure isn’t there.

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“Xi Jinping lends support to Nigeria’s long delayed $6 billion Mambilla dam”

View image on Twitter

Plans to build a 3GW hydropower complex on the Donga River in eastern Nigeria, which have been under discussion since 1972, were given a boost last week when President Xi Jinping of China announced his support for the project.

The Chinese leader was speaking in response to a request for help from President Buhari of Nigeria, who has made the construction of the scheme, on the Mambilla plateau in Taraba State, a key priority of his government.

Buhari said in a tweet: “I told President Xi that the Mambilla Hydropower Plant is Nigeria’s equivalent of China’s Three Gorges Dam, and that our hope is to fund the project with concessionary loans from China.

Continue reading

 

Final Call: IMF and World Bank real culprits in Africa’s debt crisis

This article debunks the myth of China colonizing Africa through a “debt trap” policy. It also has quotes from me on this subject. You can read more comments from me with this link to my post: A Brief Response: Marshall Plan for Africa or “Debt Trap?”

africa_watch_logo_18.jpg

FINAL CALL: IMF-and-World-Bank-real-culprits-in-Africa-debt-crisis.

BY JEHRON MUHAMMAD |  SEP 12, 2018 

Many Western press outlets, including CNN, have repeated a recent claim presented to the U.S. State Department that the “Chinese government is leveraging billions of dollars in debt to gain political leverage with developing countries.”

The phrase they use to accuse China is “debt book diplomacy,” a play on the past usage of the term “gunboat diplomacy” about U.S. policy. They accuse China of miring Africa in debt and “undercutting their sovereignty.”

rwanda_kagame_china_xi-jinping.jpg

Chinese President Xi Jinping (R) meets with African Union Chair Paul Kagame who is President of Rwanda at the Great Hall of the People in Beijing, capital of China, Sept. 4, 2018. (Xinhua/Ju Peng)

Not to be outdone, ABC News chimed in: “China’s commercial presence in Africa has prompted complaints in some countries that the continent gets too little from the relationship. Africa is a major target of Beijing’s ‘Belt and Road’ initiative to build ports, highways and other trade-related infrastructure, but some critics in Tanzania, Kenya and other countries say they leave hosts with too much debt.”Pushing back, China claims to be helping African development, not piling up debt, one top China government official said.

“If we take a closer look at these African countries that are heavily in debt, China is not their main creditor,” its special envoy for Africa Xu Jinghy said, during a news conference. “It’s senseless and baseless to shift the blame onto China for debt problems.”

Claims that China is an “economic predator” in Africa, pillaging natural resources and dragging it into debt crisis are “as false as they are sensational,” the Xinhua official Chinese news agency said in a commentary.

According to African economic and political analyst Lawrence Freeman, “It is more than ironic that the West is complaining about Africa’s debt to China. Since the 1960s, Western nations, the IMF, World Bank, Paris Club, etc., have ‘looted’ Africa of hundreds of billions of dollars in bloated debt payments and through the manipulation of currencies, and terms of trade.

Of note is the fact that the anti- China accusation is fairly recent. An April 18 Financial Times article, headlined “African nations slipping into new debt crises,” did not mention China one time as the source of the continent’s debt crisis.

In fact the FT’s piece is critical of the International Monetary Fund and World Bank. “The increase in debt should have raised all sorts of flags and triggered triage, but it didn’t. Neither the International Monetary Fund nor the World Bank sounded the alarm,” the London-based financial paper reported.

In addition, the FT claimed some African countries were hit because “they borrowed in foreign currencies and were finding debt hard to finance after a significant depreciation.”

In 2017 Quartz Africa reported, again not mentioning China, that “African eurobond debt is growing to risky levels.” A eurobond, also referred to as sovereign bond, is a debt security issued by a national government and is denominated in a foreign currency, usually dollars, rather than the euro that its name implies.

This debt crises have been cyclical. Africa’s debt of the 1980s mushroomed to $270 billion and had many factors, according to Quartz, “depending on which side of the fence you’re on.”

Those events came full circle. Even though Quartz recognized the repeating “hallmarks” of unchecked corruption, poor governance, and political mileage investment, the “single catalytic factor to trigger debt unsustainability in Africa has always been the crash of commodity prices on the global market.”

The news service Reuters reported in May of 2017 that “most sub-Saharan African countries still rely on U.S. dollar-denominated debt to finance their economies. Some investors say this is sowing the seeds of future debt crises if local currencies devalue and make dollar debt repayments more expensive.”

The United Nations trade body UNCTAD estimates that Africa’s external debt rapidly grew to $443 billion by 2013 through bilateral borrowing, syndicated loans and bonds. But since then sharp currency devaluations across the continent have pushed up the cost of servicing this debt pile, which continues to grow, the agency said.

It’s no wonder over 50 African heads of state attended the Sept. 3-4 Forum on China-African Cooperation (FOCAC) in Beijing. During the forum China president Xi Jinping announced a hefty $60 billion package to compliment another $60 billion pledged at the 2015 summit.

This breaks down, according to press reports, to $15 billion in grants and interest free loans, $20 billion in credit lines, a $10 billion fund for development financing, $5 billion to finance imports from Africa and waving the debt of the poorest African nations diplomatically linked to China.

On top of President Jinping letting the numbers speak for themselves he had words for China’s detractors: “Only the people of China and Africa have the right to comment on whether China-Africa cooperation is doing well … . No one should deny the significant achievement of China-Africa cooperation based on their assumptions and speculations.”

The African Union chairman, Rwandan President Paul Kagame, has been heard to call Chinese aid and investment strategy in Africa “deeply transformational” and respectful of the continent’s global position.

He said FOCAC had grown into a powerful engine “of cooperation fully aligned with Africa’s Agenda 2063 and sustainable development goals.”

“Our growing ties with China do not come at anyone’s expense. The gains are enjoyed by all who do business with us. Building the capacity of African institutions to transact and monitor more effectively is what will make the biggest difference,” he said.

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A Brief Response: Marshall Plan for Africa or “Debt Trap?”

Lawrence Freeman

September 20, 2018

The world is witnessing an increase in attacks on Africa’s relationships with China in various articles, as well as low-level, unthoughtful, messages on Twitter, Facebook, and YouTube. Not only does that content intend to demonize China as the new colonial empire of Africa, but it also includes vulgar demeaning caricatures of African Heads of State.

Could the reason for the uptick of these kinds of diatribes be related to the successful September 3-4, Forum on China Africa Cooperation (FOCAC) summit in Beijing, attended by leaders from almost every African nation? China has reached out to Arica and formed a special relationship which is being embraced by African Heads of State. It should be clear to any intelligent historian, that China is not acting as an Imperialist manner towards Africa.

However, what has been conspicuously, egregiously omitted from this unsubstantiated vilification of China, is the history of Western nations and institutions, which have acted as an Imperialist power towards Africa. The latest accusation is that China is deliberately entrapping African nations into unpayable debt. However, this is precisely what the IMF, World Bank, Paris Club, along with their allies in the City of London and Wall Street did to Africa immediately following the “Winds of Change.”

The motivation for this propaganda barrage is that China via FOCAC and the Belt & Road Initiative is offering African nations a pathway toward growth uncontrolled by the financial predators in the City of London and Wall Street. Contrary to the myth that China is stealing African resources; which the Western powers did first under slavery, then under colonialism, and have continued under neo-colonialism, China is actually providing credit for physical infrastructure; the sin qua non to spur economic growth.

Debt and Credit for What?  

A pervasive and quite serious problem affecting well-intentioned individuals from all corners of the globe is the lack of understanding of what actually creates economic growth. Neither money, nor financial transactions, nor derivatives, nor speculation, nor rising stock markets, nor the market place are the cause of growth or synonymous with real economic growth.

Credits issued for infrastructure; water, energy, rail, roads, healthcare, and education, identifying the most vital categories, if properly organized, leads to an increase in the productivity i.e. the economic power of the society. This is measured by the ability of society to increase its physical output from one production cycle to the next. By utilizing advanced technologies embedded in new capital equipment, including infrastructure, farmers and workers can produce more efficiently. Simply providing abundant energy, high-speed railroads, and water inputs to an African nation would lead to a jump in economic output.  Shortly after the death of President Kennedy, the US ceased its commitment to assist Africa nations in expanding their infrastructure.

China is committed to lending, issuing credit-yes creating a debt to fund long-term investment in infrastructure. Credit directed in this way is good debt. With non-usurious interest rates over 15-20 years, the loan can be retired from the profit it generates to society. This form of debt is not equivalent to the hundreds of billions of dollars African nations were forced to pay to the financial capitals of the world for loans to cover rigged terms of trade, and currency devaluations.

If you study the American System of Political Economy with its cornerstone; Alexander Hamilton’s national credit policy, you will realize that China is emulating the best of America’s past. For example, President Franklin Roosevelt, who successfully applied Hamilton’s principle  to rebuild the Depression riddled US with state issued credits, would have little trouble understanding the principles of President Xi Jinping’s Belt & Road.

Economics and the Common Good

There is a deeper level to comprehending economic growth. Every human being is united by a universal principle often expressed as the “common good of mankind.” Yes, all human beings regardless of religion, color, ethnicity, or place of birth, share a “common interest.” We are all created with the power of creativity. Not logic, not deduction, not induction, but the power to hypothesis new ideas. The power of discovery, to discern new principles of the universe that we previously did not know but were there waiting to be revealed to the human mind. These scientific discoveries spawn new technologies which are the primary source of economic growth. Thus, it is the responsibility, nay the obligation of every society to nurture and develop that creative potential innate in all its citizens from birth to death.

For all citizens to realize their potential, live productive lives, and raise their families without fear of hunger and security, a nation must have the economic means to expand the total physical wealth of society over succeeding generations.  An advanced industrialized nation requires a healthy manufacturing sector, which is also an essential component of a productive agriculture sector.  The absence of robust agro-manufacturing economies in Africa is crime along with its huge deficit in infrastructure.

Sadly, the West does not have the vision to assist African nations in overcoming these deficiencies. China in all, but name has launched the equivalent of a Marshall Plan for Africa.

Among the eight major initiatives that President Xi laid out at the Africa-China Summit, China will:

1.Promote industrialization; 2. Support agricultural assistance programs; 3. Work with the African Union (Agenda 2063) to formulate a China-Africa infrastructure cooperation program; 4. Increase its imports from Africa, in particular non-resources products; 5. Train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges.

China has come to understand that it is the common interest of its own country, and in the fact all nations, is to help Africa develop productive industrialized societies not dependent on revenue from one resource or one crop. Under these improved conditions, hunger and poverty, the underlying causes for conflict, can be eliminated. Great progress can be accomplished in Africa and the world, if the US and Europe acquire the wisdom to join China’s Spirit of the Belt & Road

Below are three articles with excerpts that provide useful background to understanding Africa’s productive relationship with China.

“The recently concluded China-Africa Summit offers a new deal for Africa’s recovery. The Forum for China-Africa Cooperation (FOCAC) has the making of a 21st century equivalent of the Marshall Plan, America’s massive economic rescue programe that President Harry Truman unveiled for Europe on April 3, 1948.

AFRICA’S INDUSTRIALISATION

On its part, China is taking a Pan-African approach targeting projects with regional impact such as Kenya’s standard gauge railway.   Like the Marshall Plan that prioritized the reindustrialization of Europe after the war, China is laudably giving a pride of place to Africa’s industrialisation.

Industrialization was top on the list of President Xi Jinping’s eight-point plan to guide Chinese aid to Africa in the next three years. Recipients of Marshall Plan had to invest 60 percent of these funds in industry. The funds also involved Technical Assistance Programes to create a skilled labor force to drive industrialization.”       Read: China’s Marshall Plan for Africa-Debt or New Deal ?

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“Speaking as the Chairman of the African Union, President Paul Kagame of Rwanda, expressed the will of Africa very clearly: “Africa wishes to be a full and integral part of the Belt and Road Initiative.” And in spite of the myriad attacks in the Western media regarding the Belt and Road’s alleged “debt trap”—and its description of China’s extensive involvement in Africa as a “new colonialism”—this “fake news” has not blurred the vision of Africa’s leaders, who have stayed focused on the future of the continent.

Ramaphosa also praised the work of China’s Belt and Road Initiative: “Why do we support the Belt and Road Initiative?” “Because we are confident that this initiative, which effectively complements the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China.  It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.” Read: FOCAC Summit: Turning Point in History

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“It can be said that this sentiment is near universal among the African nations now participating in the BRI. Indeed the president of the African Development Bank (AfDB), Dr. Akinwumi Adesina, told Xinhua on the sidelines of the summit, “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure. The population is rising, urbanization is there, and fiscal space is very small.” The AfDB president added, “They are taking on a lot more debt, but in the right way.” Read: Changes Underway as FOCAC Convenes