Just Africa

Exclusive G20 Financial Summit Looks Like Business As Usual for Excluding Africa in Global Economic Policy

President Bush is inviting the G20 members to a “Summit on Financial Markets and the World Economy” to be held in the Washington DC area on November 15th.

Bush, along with French President Nicolas Sarkozy and European Commission President José Manuel Barroso, outlined and called together the meeting of the G20 at the end of October. The summit is set to take place on November 15 and according to the White House it will discuss the “causes and efforts to resolve [the financial crisis] through more effective regulation and reform” as well as “the effects of the crisis on emerging economies and developing nations” whose concern over the long-term impact has grown extensively since the crisis hit.

The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union.

Sadly, it's little surprise that South Africa is the only African country among them.

Short and long term consequences of the Western financial crisis on Africa

Some good analysis from VOA News (dateline - Johannesburg).

New undemocratic “Washington Consensus” won’t fix global crisis, state over 630 groups from 104 countries

Africa Action joined with global civil society in signing this letter.

October 28, 2008 - The day before the United Nations (UN) meets to discuss its new high-level taskforce on the global financial crisis, chaired by Nobel Laureate Joseph Stiglitz, and two weeks before the US hosts members of the Group of 20 to address the same issue, a coalition of 630 organizations from 104 countries have issued a statement demanding a truly global response to the global crisis and laying out a set of principles for doing so.

“Of course it is imperative to agree quickly on measures to address the immediate crisis and protect ordinary workers, low-income households, and other extremely vulnerable sectors from the impacts”, said Lidy Nacpil of Jubilee South - Asia/Pacific Movement on Debt and Development.

“But since the impacts are likely to be the greatest on the poorest people, and in emerging economies and developing countries”, Ms. Nacpil continued, “shouldn’t all countries –governments and peoples – have a say, not just those responsible for this crisis?”

Amid global credit crisis, what about Africa?

With the ongoing financial crisis and extreme instability of the American stock market, the economies of the world seem to be turning upside-down. As Europe and Asia struggle against the backlash, already weak from IMF restructuring, open economies in Africa may be the most vulnerable to recent pitfalls of the stock market. The scariest thing: most analysts believe the worst is yet to come. 

A sampling of some recent commentary:

The Nation, Kenya:
As the financial crisis increases risk aversion, the capital flows that have fueled growth in Africa over the past decade are in danger. Foreign direct investment to Africa had doubled to $315 billion between 2000 and 2006, according to the Bank of America. The cost of the crisis may lead both private sector investors and donor nations to scale back or abandon entirely their commitments. UN Deputy Secretary General Asha-Rose Migiro said Monday that attainment of the Millennium Development Goals is at "clear at risk" in light of the financial crisis.

Inter Press Service
Finance ministers from across Africa have been vocal about the impending impact of the crisis on foreign aid and investment in Africa. Sierra Leone's finance minister stated that development needs on the continent have been "largely forgotten" amid high level talks by rich country officials. The Kenyan Finance Minister suggested that wealthy governments be held accountable for "delinquent" regulation of financial institutions, demanding increased aid as compensation for developing countries' impending losses due to a Western failure. Cameroon’s finance minister cited the usual neglect of official aid budgets, which never live up to commitments, warning that they will be cut further in light of recent events.

Leadership, Nigeria:
The Managing Director of Sterling Bank Yemi Adeola stated recetly that Nigeria country has lost over N4 Trillion to the crisis. Sterling Bank gave Lagos State Security Trust a donation of N100 million, along with several other banks that have offered a total of N600 Billion. Mr. Adeola also emphasized the threat of armed robbers to his country’s banks.