Africa, Aid, Britain, Business, Economic, G7, Government

Britain: Aid cash to be used in boosting trade with Africa

FOREIGN AID BUDGET

THERESA May has pledged to use Britain’s overseas aid budget to boost post-Brexit trade with Africa.

She told an audience in Cape Town that she is “unashamed” of her ambition to ensure the multibillion-pound pot “works for the UK”.

The Prime Minister said that from now on Britain’s foreign aid budget will not only help combat poverty, but support “our own national interest”.

It comes after the bloated aid budget – now standing at almost £14billion a year – has come under fire as officials struggling to spend the money quickly enough have donated to a series of increasingly controversial projects.

Mrs May said funds will be specifically used to “support the private sector to take root and grow”. This means Britain will employ its aid to help create the conditions for UK businesses to have confidence to invest in Africa.

She also said the funds should go towards boosting security and tackling terrorism in the continent – a move to which she insists will make the UK safer.

The money will also be used to encourage potential migrants to stay in Africa so they are not tempted to make the dangerous journey to Europe.

The commitment comes amid the UK’s huge foreign aid budget struggling to maintain public support. Critics have long opposed David Cameron’s controversial policy and target of spending 0.7 per cent of national income on overseas aid.

The target has meant huge increases in aid spending in recent years – and guarantees it will continue to grow.

Public anger has grown given some of the examples of how the money is spent. These include a £5.2million grant to girl band Yegna, nicknamed the “Ethiopian Spice Girls”, whose funding was only halted last year.

Downing Street will now hope that the announcement of a realignment of spending will help convince voters of its worth.

The Department for International Development gives around £2.6billion a year in bilateral aid to Africa. The Prime Minister has also announced a new ambition to make Britain the G7’s largest investor in the continent within four years.

At present the U.S. is the largest contributor to African investment, but Mrs May aims to leapfrog it by 2022.

In Cape Town, the Prime Minister talked about changing the face of the UK’s aid spending in Africa both to reflect the continent’s rapid growth and to benefit Britain. There is a huge opportunity for British trade in a post-Brexit world. Mrs May’s three-day trip to the African continent will also take in visits to Nigeria and Kenya.

The PM said: “It is the private sector that is the key to driving that growth – transforming labour markets… And the UK has the companies that can invest in and trade with Africa to do just this.

“The private sector has not yet managed to deliver the level of job creation and investment that many African nations need.

“So I want to put our development budget and expertise at the centre of our partnership as part of an ambitious new approach – and use this to support the private sector to take root and grow.

“I am unashamed about the need to ensure that our aid programme works for the UK.

“I am committing that our development spending will not only combat extreme poverty, but at the same time tackle global challenges and support our own national interest.

“This will ensure that our investment in aid benefits us all, as is fully aligned with our wider national security priorities.”

The Prime Minister also set out why working with Africa to deliver jobs, investment and long-term stability is in the interests of Britain and the wider world.

Mrs May pointed out that Africa needs to create millions of new jobs every year to keep pace with its rapidly growing population, adding: “The challenges facing Africa are not Africa’s alone.

“It is in the world’s interest to see that those jobs are created, to tackle the causes and symptoms of extremism and instability, to deal with migration flows and to encourage clean growth. If we fail to do so, the economic and environmental impacts will swiftly reach every corner of our networked, connected world.

“And the human impacts . . . will be similarly global.”

Addressing the issue of British trade, Mrs May said: “As Prime Minister of a trading nation whose success depends on global markets, I want to see strong African economies that British companies can do business with in a free and fair fashion.

“Whether through creating new customers for British exporters or opportunities for British investors, our integrated global economy means healthy African economies are good news for British people as well as African people.

“I want the UK to be the G7’s number one investor in Africa, with Britain’s private sector companies taking the lead in investing the billions that will see African economies growing by trillions.”

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Africa, Aid, Government, Society, United Nations, Yemen

UN: World facing gravest humanitarian crisis since 1945

AFRICA

Food Crisis

Intro: The UN has received only about 10 per cent of the money it has sought since launching appeals last month for the drought-affected countries

The world is facing its biggest humanitarian crisis since the end of the second world war, with 20m people facing starvation and famine in Yemen, Somalia, South Sudan and Nigeria, the UN has warned.

The UN’s humanitarian chief, Stephen O’Brien, has told the Security Council that $4.4bn was needed in the next four months to address the escalating situation.

“Without collective and co-ordinated global efforts, people will simply starve to death,” he said. “Many more will suffer and die from disease.

“Already at the beginning of the year we are facing the largest humanitarian crisis since the creation of the United Nations.”

The UN last month declared a famine in parts of South Sudan, which has been wracked by civil war for more than three years. But Mr O’Brien said the most serious crisis was in Yemen, where two-thirds of the population, some 18.8m people, need assistance and more than 7m are facing starvation.

“That is 3m people more than in January,” he said, adding that in the last two months almost 50,000 people had fled fighting between forces loyal to the government and Houthi rebels.

Some 6.2m people need help in Somalia, of whom 2.9m are in dire need; 4.9m in South Sudan and some 1.8m in north-eastern Nigeria.

Kenya and Ethiopia are among other countries facing the impacts of severe droughts but their governments have a better capacity to cope.

Famine is declared when daily mortality rates are two or more deaths per 10,000 people and 30 per cent of children suffer from acute malnutrition, among other criteria.

Mr O’Brien stressed that the looming catastrophe was “man-made” and “preventable”.

“It is possible to avert this crisis, to avert these famines, to avert these looming human catastrophes,” he said, stressing that the warring parties in South Sudan were making little effort to alleviate the situation.

The international community has started reacting to the threat of famine much more quickly than in the last such crisis, when 260,000 people died in Somalia in 2012. Many agencies, particularly UN bodies, have started spending pledged aid money before it has been disbursed by using their own reserves.

António Guterres, the UN secretary-general, said this week after visiting Somalia that the situation was deteriorating. He described how he saw children dying from acute watery diarrhoea and cholera.

He said that systems were in place to avert the worst of the looming crisis, if money and aid are delivered.

However, Save the Children UK warned that despite a better response than in 2012 some of the mistakes made then were being repeated. Kevin Watkins, Save the Children’s chief executive, singled out inadequate planning and a slow response from donors.

The UN has received only about 10 per cent of the money it has sought since launching appeals last month for the drought-affected countries.

Mr O’Brien said that if money is not committed soon, not only will many people die but many children who survive will be stunted by severe malnutrition, gains in economic development will be reversed and “livelihoods, futures and hope will be lost”.

 

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Africa, Government, Politics

The fragility of political reform in Africa…

AFRICA

Intro: African countries need to diversify away from their dependence on exporting commodities, which in turn would mean reforming and liberalising markets and bolstering independent institutions

SINCE the end of the cold war multiparty democracy has spread far and wide across the African continent, often with a moving and impressive intensity. Some have referred to it as Africa’s second liberation. Following freedom from European colonisers came freedom from African despots. 1994 is etched into history when many South Africans queued for hours to bury apartheid and the election of Nelson Mandela as president in their country’s first all-race vote.

The start of the liberation saw many of Africa’s Big Men swept away. Ethiopia’s despot Mengistu Haile Mariam fled in 1991; Mobutu Sese Seko of Zaire (now the Democratic Republic of Congo) decamped in 1997; and, a year later Sani Abacha of Nigeria died in suspicious circumstances. In parts of Africa autocrats are still in power and wars still rage. But most leaders now seek at least a veneer of respectability, elections have become more frequent and economies have opened up.

Yet, African democracy has stalled – or even possibly gone into reverse. Often, the continent has become an illiberal sort of pseudo-democracy in which the incumbent lavishly attacks the opposition, exploits the power of the state to stack the electoral contest in his favour and by removing any constraints on his power. That bodes ill for a continent where institutions are still fragile, corruption rife and economies weakened by the fall of commodity prices. One of the previous fastest-growing economies of the world has now become one of the slowest. For Africa to fulfil its promise, the young, dynamic continent must rediscover its zeal for democracy.

Zambia is the latest worrying example. It was one of the first African countries to undergo a democratic transition, when Kenneth Kaunda stepped down after losing an election in 1991. Just last month Edgar Lungu was re-elected president with a paper-thin majority in a campaign that was marred by the harassment of the opposition, the forced closure of the country’s leading independent newspaper, and accusations of vote-rigging and street protests.

Central parts of Africa appear most troubling. Incumbent leaders are changing or sidestepping constitutional term limits to extend their time in office, which often provokes unrest. Kenya, where political tension is rising, is facing concerns over threats of violence in next year’s general election. Freedom House, an American think-tank, reckons that in 1973 some 30% of sub-Saharan countries were ‘free’ or ‘partly free’. In its most recent report that share now stands at 50%. Whilst a big improvement it is down from the 71% which was reported in 2008. Countries that are ‘not free’ still outnumber those that are. A big chunk in the middle is made up of flawed and fragile states that are only ‘partly free’.

The people of Africa deserve much better. For democracy to work, the elected must not be greedy with those losing seats or failing to win accepting defeat. There must also be trusted institutions that invariably act as arbiters and stabilisers for democracy to flourish. In many places, some or all of these basic elements are missing.

Expanding and strengthening Africa’s middle class is the best way for democracy to thrive. Increasingly interconnected to the world, Africans know better than anyone the shortcomings of their leaders. Consider South Africa. Despite its model constitution, vibrant press and diverse economy, it has been tarnished under its president, Jacob Zuma. Whilst he has hollowed out institutions, some of which were tasked with fighting corruption, moves which were an attempt to strengthen his own position, South Africa has also demonstrated the power of its voters. In recent municipal elections, the powerful African National Congress lost control of many major cities. For the first time, a plausible alternative political party of power has emerged in the liberal, business-friendly Democratic Alliance.

Societies and economies which are free reinforce each other. African countries need to diversify away from their dependence on exporting commodities, which in turn would mean reforming and liberalising markets and bolstering independent institutions. The rest of the world can help by expanding access to rich-world markets for African goods, particularly in agriculture.

Other than promoting a middle class, diversification mitigates the ill-effects of a winner-takes-all politics. When a country’s wealth is concentrated in natural resources, controlling the state gives its leader access to the cash needed to maintain power. The problem is aggravated by the complex, multi-ethnic form of many African states, whose national borders may have been created by colonial whim. Voting patterns often follow tribal customs rather than class or ideology, which tends to lock in the advantage of one or other group. Political defeat at an election can mean being cut out of the spoils indefinitely. Dealing with variegated polities require structural changes in society such as decentralisation (as in Kenya), federalism (as in Nigeria) and requirements for parties or leaders to demonstrate a degree of cross-country or cross-ethnic support.

For those democracies which are fragile, the two-term rule for heads of government is invaluable, as it forces change. Nelson Mandela set the example by stepping down after just one term. The two-term rule should be enshrined as a norm by Africa’s regional bodies, just as the African Union forbids coups.

It’s also worth considering what else the outside world can do other than providing African countries with access to markets. China, for instance, has become Africa’s biggest trading partner, supplying aid and investment with few or no strings attached in terms of the rule of law and human rights. Even China, however, now that its own economy has markedly slowed, will not be in the business of propping up financially destitute African autocrats.

This means that Western influence, although diminished, remains considerable – for historical reasons, and because many African countries still look to the West for aid, investment and sympathy from international lending bodies. With the commodity boom at an end, a growing number of countries are facing a balance-of-payments crisis. Any fresh liquidity, particularly in the form of loans, should be conditional on strengthening independent institutions.

Yet, the West has flagged in its efforts to promote open and accountable democracy, especially in places such as those around the Horn of Africa (see appendage) and the Sahel, where the priority is to defeat jihadists. That is myopic. Decades of counter-terrorism teaches that the best bulwarks against extremism are states that are prosperous and just. That is most likely to come about when rulers serve at the will of their people.

Appendage:

hornafrica

Map depicting countries that make up the Horn of Africa.

 

 

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