|
|
|
|
|
|
Poverty crisis: Challenge before African leaders, by institute
By Babatola Adeyemi
Oct 4, 2004
AHEAD of African leaders meeting on Thursday, to focus on the twins monsters of poverty and unemployment, which have greatly regarded the continent's growth, he Institute of Public Policy Analysis (IPPA) last week in Lagos canvassed their full attention to some key trade and investment issues relevant to Africa under various agreements.
At a capacity building workshop for journalists to expose them to core issues under multilateral or bilateral trading and investment agreements as it affects Africa, the need for African leaders to draw global attention to and tackle, alleged basic inequalities between Africa and the advanced economies and the implications of such to world trade and Africa's development was stressed. The forum argued that Africa is not yet sufficiently assisted for integration into the global trading system.
Significantly too, African governments were urged to harness the opportunities which the African Growth and Opportunity Act (AGOA) provided, just as the role of the media in Africa countries at promoting trade and investment in their countries was discussed.
In his paper on "Agriculture Subsidy and Market Access", Mr. Thompson Ayodele, a member of the institute identified agriculture as a crucial sector to the economic prospects and development of African countries.
He therefore lamented that despite the stipulation of the 2001 World Trade Organisation (WTO) ministerial meeting held in Doha, Qatar, trade distorting policies which would have enabled Africa to enjoy its comparative advantage in Agriculture and alleviate poverty in the continent had not been phased out.
Specifically, the WTO's ministers agreed in Qatar to "substantial improvement on market access, reduction of tariffs with a view to phasing out all forms of export subsidies and substantial reductions in trade-distorting domestic support".
Ayodele noted that, the agreement was labelled Doha Development Round because it would boost economic growth and development and alleviate poverty of many developing countries.
Decrying the non-implementation of the agreement since the Doha meeting, the resources person stated:
Reforming and phasing out of the current practices in global farm trade holds the key for bettering the livelihood of impoverished African. One may ask why African has a comparative advantage in agriculture.
The dominant export in Africa is agricultural products. Everything in Africa is agriculture; incomes from agriculture are used for providing education for young ones maintaing families, paying for health bills etc.
Indeed the percentage of African's labour force in agriculture showed Burundi, Niger, Rwanda and Tanzania having 90 per cent and above Guinea, Lesotho, Angola, Malawi, Zambia and a few others having 80per cent and above, Cameroon, Kenya, and Liberia having 70 per cent and above Nigeria, Zimbabwe, Togo and Senegal having 60 per cent and above. This least percentage is from South Africa which has 30 per cent, followed by Nambia with 47 per cent.
Noting therefore that more than 60 per cent of African population earn their means of livelihood from Agriculture, Ayodele stressed :"Retaining the subsidies and export guarantee to farmers in the European Union (EU) countries, United States and Japan rob farmers in African countries of decent livelihoods and burden consumers in industries with the higher taxes and food prices.
Giving details of how the subsidy issue negative affected African Ayodele disclosed that, rich countries spend $1 billion a day to support their farmers. In 1997, he stated support and protection to farmer in OECD countries was $280 billion. In 2002, he added the same OECD countries transferred $318 billion in support and protection to agriculture. Besides, the EU alone subsidies its farmers with $86.6 billion yearly, he further disclosed: "It is estimated that, phasing out subsidy and protection in high-incoming countries could attract new investment and lead to increases in annual income in developing countries up to $150 billion and $400 billion. However, the hypocrisy of the EU, U.S and Japan is manifest. African countries are told the benefits of lowering tariffs. But they are practising the opposite of what they speech."
He added: "The total support to farmers in the developed world is five times annual aid flow to the developing trade is the greatest contribution the Dotta agreement can make to reduce poverty and foster development." Ayodele cited an example: "Take Mali and Cotton for instance.
Cotton is pretty much the only export. The U.S. and Europe subsidies drain 10 per cent from the little income Malian Cotton farmers managed to bring in 2002."
He stressed: "African countries are the low cost producers of agricultural products. If allowed to compete on a level playing field, they could capture market share and export income and start off at last on the road to economic growth and development and drastically reduce poverty in the continent" Essentially, the expert also stress the issue of tariffs as another one deserving serious attention.
Describing the use of tariffs as another obstacle "artificially erected" to heavily restrict market access of Africa's agricultural products, Ayodele cited an example.
According to him: "Cocoa bean farmers can export beans to Japan duty free or to Korea at a two per cent tariff. But if the same farmer wants to set up a factory and export cocoa powder or chocolate, he will face tariffs of up to 30 per cent in Japan or 40 per cent in Korea."
Ayodele stated in conclusion: "Yes African countries want to trade. They want to be seen as equal partners in the global trading system to be able to reduce poverty in the continent. Development in Africa depends on the willingness of others to operate on a level playing field. Poverty reduction, development and economic growth would be a mirage as long as African countries are denied access to the developed countries market in products which African countries have a comparative advantage, agriculture.
What Africa wants is access to developed country markets. This will begin when every WTO member adhered to the rules and regulations steering the organization and stop the massive supports enjoyed by farmers in their respective countries. That is how globalisation and free trade can really work for Africa."
In what seemed a counter-challenge however, the economic officer at the U.S Consulate General in Nigeria, Janet Deutsch decried sub-Saharan Africa's slow efforts at harnessing the AGOA opportunities.
According to Deutsch: "AGOA is another demonstration of U.S commitment to sub-Saharan Africa's economic development and reform. And the opportunity of duty-free-and quarter-free export to the U.S of more 6,400 items is one that Africa must harness."
The challenge before African leaders, the economic officer said, remained increasing the competitiveness of their economies by "creating conditions where investment is appealing to local and international investors and where trade can flourish."
Interestingly, too, the forum identified the role of Africa's media in tackling poverty, by promoting increased trade and investment in the continent. The media's role according to Mr. Samuel Famakinwa, group business editor, ThisDay Newspapers, included journalists' appreciation of their roles as instigators of change and promoter of ethics.
In addition, Famakinwa stated, journalists must appreciate the value of education through continuous learning and self-development initiatives, just as they must be continuously inquisitive and not afraid of asking 'stupid' questions. According to the editor: "journalists must articulate issues that affect people. They most not only draw attention to such issues like (AGOA) New Partnership for Africa's Development, Millennium Development Goals, etc, but must also set agenda on them. They must also ensure regular assessment and raise public awareness on these and other issues but must be objective in order to be taken serious".
On promotion of ethics, Famakinwa urged journalists to embrace professionalism and shun gratification and any unethical practices, stressing that these would hinder effective performance.
"Public interest must be above self-interest. There is life beyond gratification. Importantly too, you must never compromise balance and accuracy," he added.
While urging media organisations to discourage mediocrity, he challenged journalists to invest in themselves to enhance performance.
According to him: "Journalists must develop analytical minds. You must invest in yourself and understand the dynamics of the system if you must report well.
Being inquisitive and asking 'stupid' questions, Famakinwa explained is a sure way of getting as much information as possible and getting not only more informed but also helping other to use discoveries or information.
And in what seemed to support Famakinwa, Mrs. Kehinde Marquis a board member of IPPA stated in her vote of thanks at the forum: "This is another effort at capacity building, bearing in mind that the role of the media in national development can not be overemphasised. We believe that you are going away from here with the drive to be more critical of policies which will impact positively on the lives of the people". |
|
 |
|
| | |
