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Quest for Debt Relief

Africa's Generation of Reformers need a supporting hand

ARTICLE BY EMEKA ANYAOKU, CHAIRMAN UNITED NATIONS SECRETARY-GENERAL ADVISORY PANEL ON INTERNATIONAL SUPPORT FOR NEPAD AND FORMER SECRETARY-GENERAL OF THE COMMONWEALTHLagos
8 April 2005

 Britain’s Africa Commission report, a landmark of this “year of Africa” and “making poverty history”, is enormously welcome. It strikes the right balance between calling for greater front-loaded help for Africa to set it on the path of self-sustaining development and demanding that, for its part, Africa finally faces up to the cancer of corruption that has eaten away at its body polity.

It is quite right to argue that a greater measure of debt cancellation for the poorest countries of Africa should be conditional on improved governance and assurances that the money will be spent to deliver economic growth and for the reduction of poverty. Corruption, economic mismanagement and poor governance have for too long held Africa back and played a dreadful part in enduring poverty and misery for so many. I have no doubt that Africa will rise to the challenge of turning around its economic misfortunes and taking firm responsibility for the destiny of the continent and its people.

It is heartening to note that positive changes are already happening in the continent. Across Africa, democracy is taking root, despite the complex challenges. Attention is being focused on implementing economic reforms and strengthening good governance. Economic reform is however proving very tough; tough to achieve in complex countries often with very young democracies and tough for people who are already very poor. The delivery of concrete action envisaged by the Africa Commission report would, if achieved, go a long way in supporting and facilitating Africa’s economic reform and democratization efforts. However, if this year, - the “year of Africa” - delivers not much more than fine words, there will be an outpouring of frustration; the backlash would be ugly; the chance of further progress towards good governance and prosperity severely undermined. In this context, the knock-back effect could do untold damage to the prospects of continuing with reforms.

My country Nigeria offers a useful illustration of this point. It is one of many African countries that are now working hard to put their economic management on a sound footing, address governance issues, including tackling corruption, and solidify the platform for democracy. To facilitate this task, Nigeria has been campaigning assiduously for a measure of relief from its huge debt of some $35 billion. It has tried everything it can to show that it deserves to be given an exit strategy from its debt. Its efforts have been generously applauded by key international institutions, including the International Monetary Fund. But still there appears to be no movement on a debt deal. And now we are seeing frustration starting to boil over.

The recent resolution passed by Nigeria’s House of Representatives calling on the President to suspend debt payments for good is a good indicator of the mood of the Nigerian people. Although this may not be the most rational move, it is not too difficult to understand the sentiment driving it.

In this year of Africa, serious and deep debt relief, as well as the additional aid proposed by the Africa Commission and the welcome Millennium Challenge Accounts put forward by the United States, are vital if a steep change is to be achieved. Africa’s generation of reformers need a supporting hand.

Africa doesn’t just present a moral challenge; let rich countries look at their self-interests too. This is not a one-way street – aid to Africa and nothing back. No, Africa has the potential to be a vital, energetic and reliable partner, not just in trade and commerce but in ensuring our mutual global security. This great continent is bursting with potential; rich in natural resources, most especially in the energy and dynamism of its people who, given a new start, would seize its opportunities. Creditors should ask themselves this question: is a democratic, prospering Africa more or less likely than a politically unstable, poverty-stricken Africa to act as a bulwark against militant fundamentalism and international terror?

 
 
 
   
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