Monday, August 02, 2010

Trade beyond aid will push Africa to sustainable development

Panelists at an aid forum have said that until problems relating to the issues of trade, debt cancellation and aid have been resolved, there is no way Africa can wean itself of aid.

They said it is only when existing disparities in trade relationships have been addressed that the continent will be self dependent.

“If you are able to address trade problems then you also address the issue of the debt which include ecological debt. Then the continent must be able to stand on its feet and everything will flow,” stated Charles Mutasa, Executive Director of AFRODAD.

He observed although several attempts at total debt cancellation over the years have not been comprehensive, it is needed alongside addressing trade issues.
He said when trade issues are addressed then it will be certain that the continent can be able to have sustainable development without being aid dependent.

He cited protectionist agriculture in Europe and the issue of African export fetching little money on the export market as some obstacles to Africa standing on its feet.

“Otherwise we are saying that there should be reduction of aid and finally an exit because as long as we are receiving aid then there will always be conditionalities,” he added.
In a statement by the Secretary-General of the OECD, Angel Gurria at the Third High Level Forum in Accra, he called on the participants in negotiations for a new multilateral trade agreement to ‘go the last mile’ and bring the World Trade Organization’s (WTO) Doha round to a successful conclusion.

He said that open markets are particularly important for economic and social development and was therefore, a wise decision at Doha to place priority emphasis in this round of WTO negotiations on development.

“Developing and emerging economies must be enabled to improve their own economic prospects by getting better access to growing markets and seeing subsidies reduced that distort competition with their producers.”

He added, “At the same time, it is also important to remember the experience of many rapidly growing economies that markets open to foreign products have proven a most successful ingredient for economic growth”.
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He emphasized that what is needed now is the political will, including the highest level of governments, to go the last mile.

Mrs. Rose Mensah-Kutin, Convenor of Network for Women’s Right in Ghana (NETRIGHT) said in addition to the Paris Declaration and Aid Effectiveness process, there is also the UN Financing for Development Initiative that need to be prioritized, in order to make those critical linkages between aid, trade, debt and investment to address poverty and promote real development.

She regretted that today the world is faced with an unprecedented combination of natural, political, economic and social crises that increase poverty and the burden of survival for poor women, especially in developing countries.

“As development actors, it is crucial that we understand the political context and unequal power relationships within the aid architecture and the challenge posed by the implementation of the PD”.
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She reiterated that change has to happen to ensure that issues of poverty eradication, gender equality, human rights, disability and environmental sustainability are the real pillars of development effectiveness.

“We need to use international agreed human rights provisions as the basis for global governance and relationships so that aid will one day become unnecessary.”
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Using Zambian ecological debt as case study, an independent researcher, Brenda Mofya revealed although the country has a legal framework to ensure that environmental / ecological damage are taken care of, now the emphasis is more on foreign direct investment.

She said the main environmental concerns have been air pollution; exceeding normal allowed international standards, land degradation and water pollution. Brenda said aid and privatization have become prerequisite for the sale of mines and lately for any debt relief. She said that Africa does not need aid and should rather mobilize resources.

She admitted it is indeed difficult to quantify the amount of damage of Zambia after over 100 years of mining. “There is need for deliberate efforts from academia and CSO to re-scrutinize and demand the stoppage of some of these investments. Everything that has been happening is political. We need to mobilize the law courts and the political elites because at some point they seem to be powerless”.
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She added, “here is need for total cancellation for third world debt and need for redress for industrial damage”. 


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