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Date: Tue, 19 Dec 2000 06:02:29 EST
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Subject: [wa-afr] Africa Must Have Common Positions
Africans Must Have Common Positions
African ministers of trade held a three day meeting in Gabon, around the
Middle of November 2000 to discuss Africa's economic problems.
From the public statements of Mr. Mike Moore, Director of World Trade
Organization, one of the agenda items submitted for discussion and exchange
of views must have been Africa's entry to the World Trade Organization. On
pervious meetings of the World Trade Organization and globilization, Mr. Mike
Moore was for the immediate entry of African and other developing countries
to the World Trade Organization.
But, after the meetings held in Atlanta, Seoul and the Czech Republic and
after the demonstrations and oppositions voiced around the conference halls,
it seems that Mr. Mike Moore have realized the importance of adequate
preparations before holding new rounds of trade negotiations under the
auspices of the WTO. Mr. Mike Moore stated "that, 'all governments must be
ready to show flexibility".
Flexibility can only be achieved when the African countries and those in
similar economic situations make adequate preparations and work out different
workable scenarios before the start of rounds of trade negotiations; and when
the highly developed countries approach the trade negotiations positively and
are ready to accommodate the realistic demands of the developing countries.
The economies of the third world countries should not be crushed by big
transnational corporations and giant mergers which have factually eliminated
competition among themselves, which was considered the cornerstone of
capitalism and the free economic system.
The transnational corporations and giant mergers are in a position to swallow
and dominate the economies of the whole world. Under the banner of one world
one economy and one world government, the highly developed countries should
refrain from imposing their will and their national interests upon the third
world countries regardless of the difficulties of the poor countries.
What about the national interests of the developing countries? The national
and economic interests of African countries cannot be similar with those of
north American, European and some Far Eastern countries unless the concepts
of national boundaries and sovereignties are eliminated from the great
majority of nations. The suggestion of not rushing into a new round of trade
negotiations in 2001 does not seem to be unreasonable.
Simplistic general tariff reductions and the elimination of foreign exchange
controls and administrations are not enough from the point of view of the
interests of African countries. These points of views are supported and
pushed by the World Bank and the International Monetary Fund not because they
are to the benefit of the developing countries, but simply because they are
advantageous to the transnational corporations and world wide conglomerates.
This simplistic general tariff reductions and eliminations of trade
restrictions approach does not help the alleviation of the heavy debt burdens
of African countries. African countries should approach the question of world
trade negotiations from the general sectoral and commodities point of view.
They should not approach it purely from the trading point of view only, but
also from the investment and domestic resources point of view. Some economic
sectors are very important to some countries.
Sectors that are essential for the lives of the great masses of the poor
countries should be taken with care. For instance, Ethiopia is an
agricultural country and about 85% of the people live on agriculture or
agriculture related economic activities.
The policy of the Ethiopian government and the donors all agree on ensuring
food security in the country. Food security cannot be assured by the
importation of food products and storing them in silos and storage
depots.These are important steps as temporary and life saving measures.
Food security can only prevail in the country when adequate and sustainable
agricultural production prevails.
In order to ensure this important pre-requisite to food security in Ethiopia,
the necessary land policy measures and investment activities must take place.
When we say an appropriate land policy in Ethiopia, we mean a policy that is
uniform and applicable throughout the country.
An agricultural investor should get the same treatment in Metekel, Assosa,
Gambella, Metemma, Humera, Afar, Arsi and Bale. The Federal Government of
Ethiopia is responsible for the food security of all Ethiopians.
It is the federal government that is responsible for the alleviation of the
debt burden. When there is famine in the country, it is the central
government that is blamed.
Regional governments are not at all blamed for such calamities. So the
federal government must assure the proper implementation of national policies.
Now to come back to world trade negotiations on agricultural products,
Ethiopia should not accept any trade agreement that goes against its
development needs and sustainable increase of agricultural production.
Agriculture in Ethiopia is a question of life and death.
It is a strategic sector. It must be helped and protected.
This is what we call the sectoral approach to world trade negotiations. For
some African countries mining may be one of the life maintaining economic
activities.
The commodity approach ought to be coupled with the sectoral approach. For
instance, for Ethiopia coffee is the major foreign exchange earner.
Price supports and diversification efforts of the Ethiopian government should
be supported and encouraged. For some African countries, copper, cocoa or
aluminium could be life sustaining commodities.
That means the livelihood of the people should not be endangered by
international trade. African industries should also be given special
treatments because they are at the infant stage.
African industrial products have genuine disadvantages because
infrastructural facilities are at the rudimentary stage. Supporting
industries such as packing materials, in most cases, do not exist while some
inputs are also expensive.
The industrialized countries benefited from the "infant industry" argument at
the initial stages of their own development. African countries also ought to
devise a system of protecting their natural resources collectively.
This means the African countries should get reasonable and fair benefits from
their own resources. The sort of exploitation and international thefts of
diamonds in Sierra Leone and Angola as well as that of the Democratic
Republic of the Congo should be stopped.
The OAU and the ECA should prepare prototype concession agreements and give
them to African countries. If necessary they should commission experts to
help poor countries negotiate concession agreements.
The above issues are mentioned for illustration purposes only. The purpose of
this article is, however, to call the attention of the governments of African
countries and the OAU to the importance of having common and coordinated
negotiation stands and positions.
The Organization for African Unity and the Economic Commission for Africa
should take the initiative of coordinating the stands of the governments of
African countries just as they did when the African Caribbean and Pacific
countries became associated members of the European Economic Community in the
distant past. There is no reason why the OAU and the ECA cannot do the same
now.
There seems to be an aura of apathy and fatigue on the part of the OAU and
the ECA and that has to be changed.
The Daily Monitor * December 18, 2000
Gabre-Michael Paulos
Addis Ababa/Ethiopia
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