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The African Economist Vol. XIII No. 38 July 2005 News West should act against bribery in Africa –Wolfowitz World Bank President Paul Wolfowitz said developed countries have an obligation to prevent bribery in Africa by Western firms.
Mbeki has yet to announce a replacement for Zuma, who is the deputy leader of the ruling African National Congress (ANC), but some young ANC members have expressed anger over the dismissal. Finance Minister Trevor Manuel stood in for Mbeki, with the South African leader at a meeting in Nigeria, but officials told reporters not to read anything into that. South African newspapers were mixed in their approach to Zuma’s dismiss dismissal on this month, with some praising Mbeki but others, sacrifice great values at the altar of populism,” said the Sunday Independent, backing Mbeki. Six African leaders meeting Six Afican leaders meeting In the Nigerian capital, Abuja, have called for rich countries to cancel all of Africa's debts at the G8 summit. The G8 group of leading industrial nations will focus on development in Africa when it meets on 6-8 July. Two weeks ago, finance ministers agreed to full debt relief for 18 countries, including 15 poor African countries.
The African leaders said in a communiqué that they commended the recent decision of the G8 finance ministers to cancel the debt of 18, mostly African nations, as "progress" and called "for steps to be taken to include all African countries". Aid plans Meanwhile, African countries also agreed to measures to improve governance as part of the plan to boost aid flows from richer nations. Tony Blair has called for the doubling of aid flows to Africa in order to make progress towards meeting ambitious UN targets to cut extreme poverty and hunger by 2015. But progress on good government and corruption is seen as essential if the West is to agree to increased aid. Now some 23 African countries have agreed to a system of review to monitor their own political and economic performance. The leaders considered the first reports under the review mechanism which have assessed good governance in Ghana and Rwanda. Nigerian President Olusegun Obasanjo said that the African Peer Review Mechanism (PRM) was "living proof of our determination and commitment to change the status quo for the better". The PRM is designed to enable African countries to monitor each other and promote better standards of governance. This is the first time the results of a peer review will be discussed. The six presidents will watch a presentation on Ghana and Rwanda - uncontroversial choices given that both are firm favourites of the international community. The gathering will learn about corruption in Ghana's public service and hear a warning that HIV infection is growing at an alarming rate in Rwanda. President Obasanjo, who is the current chair of the African Union, is keen to demonstrate that the continent is willing and able to find solutions to its problems. New World Bank president Paul Wolfowitz, who has just completed a visit of four African countries, including Nigeria, praised the new generation of African leaders for their commitment to tackling corruption. Togo Announces New Government Togo's prime minister has announced the country's new cabinet. Despite pressure from the international community to form a government that would include the opposition, most key posts have gone to supporters of new President Faure Gnassingbe. The new government announced by Togo's newly appointed Prime Minister Edem Kodjo late would be made up of 30 ministers, 22 of whom are new. Members of the international community, including the West African political bloc, ECOWAS, had been pushing for a government of unity to end months of violence and turmoil following the death of late longtime-leader Gnassingbe Eyadema in February. At least some of the new postings went to members of moderate opposition parties. But the leader of Togo's main opposition party, Gilchrist Olympio, says that is not enough. "Nobody from our coalition, I mean serious opposition people, form part of that government," he said. "So the problem of national reconciliation, the problem of the legitimacy of the current regime is still very much an open question."
"We are opposed to the government," he said. "We are opposed to the regime. We are going to fight for democracy and legitimacy. We are going to fight for proper elections. It will go on and on. We have been at it for 40 years, so a year or two more does not make much of a difference to us." West Africa political analyst Olly Owen says, despite the appointment of some opposition ministers, most of the power will likely remain in the hands of close allies of Mr. Gnassingbe. "If you look at the jobs that really matter in that government, the security jobs," he said. "Then you see Kpatcha Gnassingbe in the defense ministry, which is the president's own brother, which shows who he really bases his power upon." A spokesman for President Gnassingbe, Pascal Bodjona, denies any appointments were made to boost the president's position. Woman named new SA deputy leader
She succeeds Jacob Zuma, who was sacked as deputy president last week after his financial adviser, Schabir Shaik was convicted of corruption and fraud. Prosecutors later announced that Mr Zuma would face corruption charges next week. He denies wrong-doing. Women's role Announcing Ms Mlambo-Ngcuka's appointment, Mr Mbeki said: "We thought that this gave us an opportunity further to strengthen the participation of women in the executive." Since her appointment as minister of minerals and energy in 1999, Ms Mlambo-Ngcuka, 49, has won praise as one of the most effective ministers in the South African government. Analysts say, however, that her appointment could prove controversial. Her husband, former chief prosecutor Bulelani Ngcuka, initiated the investigation that led ultimately to the downfall of Ms Mlambo-Ngcuka's predecessor, Mr Zuma. Mr Zuma angrily accused Mr Ngcuka of trying to ruin his reputation by leaking stories to the media. 'Well deserved’ Business and unions have welcomed the appointment. Congress of South African Trade Unions spokesman said Ms Mlambo-Ngcuka "has a soft spot for workers and has done everything to take them on board in the difficult process of transforming the minerals and energy industry". Business Unity South Africa chief executive Bheki Sibiya said: "We welcome with excitement the appointment of Mrs Mlambo-Ngcuka." The state oil company, Sasol, welcomed a "thoroughly well deserved" appointment. Tony Leon, leader of the opposition Democratic Alliance, described the appointment as "bold and gender-friendly move". But he expressed concern over unanswered questions surrounding a recent scandal over state oil purchases, as well as Mr Ngcuka's role in the Zuma case. Succession The departure of Mr Zuma, previously seen as heir apparent to the presidency, has opened the race to succeed Mr Mbeki when he steps down in 2009. He has said that he would like his successor to be a woman. The BBC's Justin Pearce in Johannesburg says though that Ms Mlambo-Ngcuka cannot automatically be assumed to be
Wolfowitz puts Africa on Bank map Paul Wolfowitz has earned plenty of goodwill in his first weeks in charge of the World Bank. After taking the job in controversial circumstances, Mr. Wolfowitz pledged that Africa would be the development agency's main focus under his leadership.
Cotton question However, it is on the World Bank's approach to the many obstacles facing Africa's economic development and not the images of the past week that Mr Wolfowitz will be judged.
In that respect, experts say they are cautiously optimistic that Mr Wolfowitz has grasped the scale of issues facing Africa and will fight for change on key issues. "The implem-entation of policy is obviously important but so far, so good," says Razia Khan, chief African economist at the Standard Chartered Bank. Mr Wolfowitz surprised some observers by explicitly criticising farming subsidies in developed countries - including the United States - which he said were hurting African producers. This was a constant theme of Mr Wolfowitz's public remarks during the trip and an issue on which he pledged action at the World Trade Organization's summit in Hong Kong in December. Ms Khan said she was encouraged by Mr Wolfowitz's willingness to raise the issue. "Addressing the subsidy question is going to be key to any long term development plan for Africa," she says. "There were concerns about what sort of World Bank president he would be and these comments will encourage those looking for evidence that the World Bank agenda is not going to be diverted by what was very much the Bush agenda." Chance of progress Alex Vines, head of the Africa programme at the Royal Institute of International Studies, says progress on subsidies was vital to major cotton producers such as Burkina Faso and Mali. "He may well be able to make progress because of his relationship with the current US administration," says Mr Vines. "The issue is very much about the US protecting its own production." Mr Wolfowitz's trip was undoubtedly made easier by its timing, coming in the immediate aftermath of an historic deal to cancel $40bn in debt owed by 18 of the world's poorest countries. He will be under pressure to use the agreement to build momentum behind plans to boost aid to Africa and improve its trading status with the rest of the world. "This visit to Africa signals willingness from Mr Wolfowitz to listen to poor men and women in Africa," says Oxfam's Caroline Green. "However, it must translate into real changes in World Bank policy." Carrot and stick Mr Wolfowitz seemed willing to dangle the carrot of increased development aid to the continent during the trip. However, he also made it clear that under his leadership, increased financial support would depend on progress in improving governance and rooting out corruption. "Development isn't all about foreign assistance," Mr Wolfowitz emphasised during his trip to Rwanda. "We have seen too many examples of where foreign assistance was wasted or went to Swiss bank accounts." The debt cancellation deal may herald a new era in Africa's relationship with the rest of the world.
"It is consistent with the way policy is developing and for Africa; it could be considered a good thing." G8 reaches the deal for world's poor The world's eight richest countries have reached a landmark debt relief deal to alleviate global poverty. The move provides relief for poor, indebted nations, mostly in sub-Saharan Africa, freeing up much-needed revenue. Announcing the deal at a meeting of G8 finance ministers in London, the UK's Gordon Brown said now was "not a time for timidity but a time for boldness". The UK, which will host a summit of G8 leaders next month, has vowed to make poverty reduction a priority. The plan, which was devised by the UK, secured the backing of the US administration on Friday - paving the way for its adoption at the London meeting. Conditions Under the deal, the World Bank, the International Monetary Fund and the African Development Bank will immediately write off 100% of the money owed to them by 18 countries - a total of $40bn (£22bn; 33bn euros).
He added that the plan set the stage for July's G8 summit, where world leaders intend "to forge a new and better relationship, a new deal between the rich and poor countries of the world". US Treasury Secretary John Snow hailed the agreement as "historic". No apologies Relief groups welcomed the plan as a step in the right direction - but said some it should be extended to cover more developing countries. "The debt deal is very good news for people in the 18 countries that will immediately benefit," said Romilly Greenhill of ActionAid. "But it will do little to immediately help millions in at least 40 other countries that also need 100% debt relief."
Earlier John Nagenda, an adviser to Ugandan President Yoweri Museveni, told the BBC it was time for rich nations to deliver on their promises. "I should be more apologetic and say please help us but where I come from we believe that if you are better off than someone else you help them. It's as simple as that - it's a moral duty."
The G8 countries are the United States, Canada, Britain, France, Germany, Italy, Japan and Russia.
Thirty-eight countries are eligible for debt relief under the HIPC (highly-indebted poor countries initiative). The 18 that have reached completion point, and will therefore qualify for immediate debt relief, are shown in bold:Angola,Benin, Bolivia, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Ethiopia, Gambia, Ghana, Guinea, Guinea Bissau, Guyana, Honduras,Ivory Coast, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Mynamar Nicaragua, Niger, Rwanda, Sao Tome, Senegal, Sierra Leone, Somalia, Sudan, Togo, Tanzania, Uganda, and Zambia Debt campaigners argue that an additional 24 countries should be included in any debt relief plan, including such large debtors as Nigeria, Bangladesh and Indonesia |
It will encourage those
looking for evidence that the World Bank agenda is not going to be
diverted by what was very much the Bush agenda
