In the wake of the global financial crisis, there is a fresh energy in Sub-Saharan Africa -- and a broad consensus on the road ahead. Above all, there is the strong sense that Africa's destiny will be driven by Africans, not by others.
That at least is my initial feeling after two days of dialogue in Kenya with President Kibaki and government officials, civil society leaders and trade unionists, academics and students, and ordinary Kenyans. "Africa is back" is how I described it in a live TV debate in Nairobi with Prime Minister Odinga, Minister of Finance Kenyatta, Nobel Laureate Wangari Mathai, Transparency International's Akere Muna and my friend, Bob Geldof.
Too rosy a scenario? I don't think so. I have so far observed several clear themes in my African interactions, during a trip that is taking me to South Africa and Zambia as well as Kenya:
First, the priority being given to sound economic policy. This may seem obvious, but it has not always been the case on the continent. It was good economic policies that helped buffer Africa during the crisis; and good economic policies are the key to the future -- to bringing growth back to pre-crisis levels and to generating jobs.
Second, the importance of good governance. And especially the new role of a vigorous civil society in that process. Again, obvious? Perhaps -- but the open and frank airing of issues of corruption, transparency, and accountability have not always been the stuff of live TV debates in Africa. We had one of those on March 8 at the University of Nairobi.
Third, there is a growing awareness of the importance of Africa's role in, and relationships with, the rest of the world -- trade, investment flows, and aid too. I heard Bob Geldof make an inspirational and impassioned case why Africa would become a "global growth pole" by 2050. If that is to be achieved, of course, Africa will need to manage a swathe of global forces that will impact the future of the continent.
One of those forces is climate change -- an issue again on which I observe an increasing awareness in Africa. With her Nobel-level knowledge and expertise, I was enthralled to listen to Wangari Mathai speak of Africa's potential leading edge in the area of "green growth."
In a speech entitled "Africa's Economic Transformation," I also spoke of the idea of a "green fund," with the capacity to raise $100 billion a year for both adaptation and mitigation -- which could help break the impasse on the financing of climate change.
While such a fund would not be managed by the IMF, our staff are working on something that, I believe, could be an important contribution to the global debate -- and to the well-being of our planet in the 21st century. I am heartened that Nick Stern, who has considerable credibility on this particular issue, feels the same way."
You will hear more about this in the weeks ahead.
Also see my earlier post on this trip: IMF--Delivering on Promises to Africa
Dominique Strauss-Kahn is the Managing Director of the International Monetary Fund
From iMFdirect blog.
But a recent study by a company named Offerpal indicates that 29.7 percent of social gamers do not have the ability or means to pay for virtual currencies with cash. That creates more debt. And the cycle of debt expands.
If they can stop slaughtering each other for awhile they just might start living up to their potential.
What Bill O'Reily tells you every night about 'sending money to Africa' is a myth and propaganda.
What we do is use the IMF/World Parasites to 'loan' Africa money to pay off private banks and financiers who gave people in Africa credit-cards, weapons, imported food etc.
Then when Africa uses what little infrastructure it has to pay back the loan it goes to pay off the very financiers who looted Africa.
Sure a puppet dictator is paid off millions of dollars to make all of this happen but that's chump change compared to the billions looted from Africa in this way.
People in this country have to stop sucking their thumbs and learn how the global imperial monetary system works. Bill O'Reily has no idea what he's talking about.
Then Western countries go bankrupt like they are now, and come up with excuses about harming the environment so that Africa can't take advantage of a bankrupt West and finsish developing.
Chaos in Africa is no more different then people in Greece revolting against corruption or Berkly. If the IMF gave Berkley students A-K47s you would see more genocide then Rwanda.
With respect to Africa, I have to believe the Curve of History has inflected. We sit at an Inflexion Point. The Resources in the Ground are extremely Valuable. However, what is really valuable are the 1b Souls who walk upon the Ground. The Mobile Phone started to aggregate Folks into Scale and we are set to watch a very late Cycle and rapid Convergence. This Century will be known as the Information Century and the Phone and Internet are about to bring nearly a Billion Souls into the Information Age at a practically zero Entry Cost or as close as.
Africa tends to be seen through a Fog of Propaganda. The Propaganda Haircut was very steep but the arrival of China and India has re balanced the Demand versus Supply Equilibrium from a Disequilibrium. The recent Bharti purchase of Zain was the 2nd biggest undertaken ever by India Inc. Thats a statement that is not be missed.
The Road to Recovery was derailed a little but the snap back is only just beginning.
Aly-Khan Satchu
www.rich.co.ke
Nairobi
Aside from appropriate oil revenues and exported human capital, Africa hasn't BEEN anywhere for 2 millenia. Not since the Pyramids and Libraries in Alexandria has Africa been a viable, productive, "going" concern.
Tribalism, war, pillage, pestillence, poverty and despair have been her curses since the pharoahs.
Africa is a big place. A cure for her will not be found in a few loan guarantees from the western IMF.
Africa needs a bid dose of ruthless extractive-industry based, western capitalism--with a regulatory overlay provided by a unanimously consenting UN Security Council. Europe should provide the legal infra-structure, China the technical expertise, Russia can keep their greedy little fingers out of the pie, and the USA should IGNORE completely. We have bigger problems closer to home, to attend to.
China wants and needs the resources. They could do much of the development work (and maybe export about 300M people, too), and the ruthless mineral exploitation could partially finance the infrastructure build-out the continent is so desperate for.
Given the track record of Western incredibly corrupt and brutall cruel financiers - from Bush on down -- are we and the pathetic suckers of Western citizens, supposed to be HAILED by the news that the future of United States will be directed by Western totally bankster elites?
All they want to do is revisit Kipling.
http://en.wikipedia.org/wiki/The_White_Man%27s_Burden
Here's what Africa needs...
1) 4-Powers agreement between Russian, China, India and U.S. for a fixed-exchange rate credit system to stablilize currencies world wide so every sovereign country can 'utter' its own credit.
2) Abolish the IMF/Word Parasites and instead of using the bankrupt entity to guarantee of private bankster debt to so-called 3rd world countries, write long-term contracts between the U.S. and other sovereign nations (not Wall Street) to trade equipment and technology for 'finished goods' not 'raw materials'.
3) Allow these African countries to finish developing by not forcing them to buy U.S. Treasury bonds but keep their own money in their own country for developing their infrastructure and the general welfare of it's citizens.
4) Keep out British imperial culture, meaning no Western financing and influencing of their elections, no arming oppositions with weapons, in fact take the profit out of weapons manufacturing.
5) Allow Africa to take advantage of the latest scientific/technologies in Thorium nuclear power that can desalinate sea water into fresh drinking water and can burn its own toxic waste. No windmills and solar collectors are strong enough to industrialize Africa, which is what it needs desperately.
As a starry-eyed environmentalist, I keep hoping that Africa can bypass the environmentally destructive lifestyle of the West. What if mud huts could remain--they have proved effective for centuries, afterall--but have electric lights so that children could study at night and use computers? Does ALL of Africa have to look like the West? The Bushmen don't need outside help of any kind. They all have Ph Ds in how to live sustainably in their territory. Does that have to be changed? Can there be ways to preserve the bulk of aboriginal culture while sensitively enabling it to use the best of Western technology? Can an African international highway NOT bring development to all the wrong places?
I ask these questions because it always worries me when I hear the call to industrialize Africa.
I'm sure if the Bushmen were allowed to develop a modern way of life they would choose to do so instead of remaining a Jurassic park for you amusement.
People who wish Africa to remain backwards as hunter gatherers don't dare live that way themselves so why would you not '...do on to others what you yourself want done to you'?
A city model is perfect for Africa because it keeps modern civilization concentrated and with the latest scientific/technology, like Thorium nuclear, you can burn toxic waste and keep the city clean.
Poverty would be virtually eliminated if these countries were allowed to industrialize and develop, creating a 'middle-class' along with social welfare and health-care programs.
A high speed mag-lev inter-continental rail system would cross over already national parks of wild life without disturbing them thus connecting Africa with the rest of the world by transporting freight and people.
Mankind needs to look towards the future in conquering the cosmos and not remain so nostaligic of life here on earth.