Wanetsha Mosinyi
27 March 2009
The Minister of Finance and Development Planning Baledzi Gaolathe gave his support to the Vulnerability Fund proposed by the World Bank with caution because Africa continues to be "marginalised and patronised" instead of being an integral part of the solution to the current financial and economic crisis.
Speaking at the Japan-Africa development aid conference known as TICAD IV in Gaborone recently, Gaolathe said with its resources and its vast potential, the African continent must be part of the solution.
"In order for us to play our part, we have to be party to the deliberations and to the processes which flow therefrom," Gaolathe said in reference to the April 2, G20 summit in London, which will hear Africa's voice through Japan.
"We cannot play our part when, as a continent, we continue to be marginalised, even patronised, and have to observe proceedings from the sidelines."
World Bank president Robert Zoellick will propose to the G20 a contribution of 0.7 percent of their stimulus packages to a Vulnerability Fund to help developing countries mitigate the impact of the crisis.
The majority of the speakers at the conference supported the proposal but called on Africa to be the one presenting its own challenges and suggestions to international gatherings such as the G20 meeting.
Bank of Botswana governor Linah Mohohlo also supported Gaolathe, adding that Africa's repeated call for a spirit of partnership in the conduct of global economic affairs has assumed a greater sense of urgency.
"The recovery of African economies can only be complementary to and supportive of the recovery efforts in Europe, America, Asia and Latin America," she said.
Swaziland's Minister of Commerce, Industry and Trade said the Vulnerability Fund is a welcome initiative but "there is an urgent need for Africa to be represented in the global economic architecture".
South Africa is the only African country afforded representation at the G20 meeting.
For his part, the Deputy Secretery-General of the OECD, Mario Amano, said Africa "needs and is entitled to represent itself at international forums".
Africa will need at least close to $50 billion in extra cash to help it through the global financial crisis. Japan is the only rich country that has pledged its commitment in helping Africa by doubling ODA for the continent by 2012.
Africa can also access the facilities of the International Monetary Fund (IMF) and the World Bank's International Financial Corporation after Japan's lending of US$ 100 billion and US$3 billion respectively to the institutions.
More than 20 African leaders petitioned the G20 group and emerging economic powers this week for an increase in funding and easier access to international financing.
The World Bank has said Africa's economic growth will slow to 3,5 percent this year from an annual average of 5,8 percent over the last decade and may drop to 2,5 percent in 2010. Africa has been hit by falling demand for commodities, reduced remittances, foreign investment and tax income.
Be the first to Write a Comment!
Copyright © 2009 Mmegi/The Reporter. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
