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US of Africa- The economy stupid PDF Print E-mail
Written by Ken Teyie   
Thursday, 26 July 2007

This week, The African Executive Magazine spoke out on the clamour for the formation of a United States of Africa proclaiming, "we do not need a United States of Africa." According to the magazine, the African Union (AU) summit issued a road-map to a federation of African States (Accra Declaration) without mentioning a single idea on political or economic freedom for African citizens.

Continental union was the founding principle of the original Organisation of African Unity but it has never stood a realistic chance. African leaders refuse to face up to their own or their neighbours' failures, whilst preventing ordinary Africans from using their ingenuity to build their own future.

The AU summit was full of lofty ideals of unity, not least from Libyan leader Muammar Gaddafi, yet there was nary a word on the real disasters of Zimbabwe, Darfur, Somalia, Ethiopia and Eritrea. Other continent-wide failures such as corruption and election-rigging did not even feature on the agenda--although these remain the real unifying features of Africa.

gaddafi.jpg
future president of the USA?
Worst of all, there was not a whisper about property rights, the rule of law and economic freedoms that would allow Africans to emulate the growth of Asian countries such as Thailand, Malaysia and South Korea;countries that were just as poor as we were at independence in the 1960s. Even the growth records of South Africa, Mauritius and Botswana are ignored as being somehow exceptional instead of being acknowledged as the result of sound economic policies.

Positions at the AU are divided between the so-called "gradualists," who believe that individual countries should first strive to build working economies and integrate them through regional blocs, and the "radicals," who believe a supra-national authority would lead to unity and thus to economic prosperity.

Neither side, however, is talking about the real issue of economics-and freedom for Africans to raise themselves out of poverty, unshackled from serfdom to the State.

The life-changing power of trade has been demonstrated historically and not just in the West. At the height of their glory, many pre-colonial African states and empires found trade to be a better way to prosperity than military conquests. Gold was shipped from Wangara in the Upper Niger across the Sahara desert to Taghaza, in Western Sahara, in exchange for salt, and to Egypt for ceramics, silks and other Asian and European goods. The old Ghana Empire controlled and propsered off much of the trans-Saharan trade in copper and ivory. At Great Zimbabwe, gold was traded for Chinese pottery and glass. From Nigeria, leather and iron goods were traded throughout West Africa.

african trade
the devil is in the detail
Mysteriously today, the descendants of those ancient traders across Africa have lost their acumen and love for business. Instead, conspiracy theories abound, mere extenuations for the continet's economic backwardness. Regardless, the blame game ignores the devil within: the internal and regional barriers that hobble trade, making tariffs within Africa far higher than any erected by outside blocs. Some politicians, bureaucrats and many aid activists argue that these tariffs make essential contributions to government revenue--meaning that government offices are more important than the well-being of citizens or the wider economy.

Opponents of US Free Trade Agreements (FTA) or European Union Economic Partnership Agreements (EPA) say these would allow cheap imports and send the already tottering African economies into collapse. They have no thought for the consumers who would benefit from cheap imports or the producers who could export regionally and internationally - absent the hindrances of crippling tarrifs. They think only of maintaining government power and protecting industries and sustaining rent-seekers.

The real consequence of these anti-development policies is that they keep the African farmer at subsistence level and our economies agrarian. Tragically, these very barriers and that retardation excuse African leaders from building the necessary infrastructure needed to open up the continent to free trade.
 

Tariffs in the global north have fallen by 84% in the last two decades to about 3.9%--yet tariff barriers in Africa have only declined by 20% to a still massive average of 17.7%. Even worse, other, non-tariff, protectionism in the poorest African countries is four times greater than in rich countries.

So the elephant in the room at these continental get-togethers is not remote ideals of regional or continental unity that might, by some undefined and unprecedented magic, lift Africans out of poverty. The millstone precluding positive economic change is the lack of practical and everyday economic freedom that would allow Africans to lift themselves out of poverty, with well-defined and historically-proven policies.

The beauty of sound economic policies is that they take effect within very few years, as in South Africa and Botswana, unlike fancy political notions, such as Gaddafi's oft-delayed union with Egypt. But leaders who can talk of unity while ignoring the carnage in Darfur and the tyranny in Zimbabwe can very easily ignore regional economic barriers.

Our future will not be built by ideology and fine concepts: these are what have kept Africans back when hundreds of millions in Asia were building a better life. Our growth and prosperity depends on proven common sense and freeing the economic shackles that still enslave us.

The writer contributes to the BusinessInFocus blog.





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free trade? yes please
written by Jayawardene , July 26, 2007
Thank you for a great piece. I detect a familiar sense of impatience with our leaders' attitudes to development and economic growth. The lofty pan-african ideals flow like sweet music from the mouths of many politicians but none of them are really serious as was shown by the recently 'concluded' inconclusive summit on federation.

Like the author I believe that Union is desirable and certainly inevitable. The continued global struggle to identify fresh supplies to drive increasingly resource hungry economies means that all countries must form trading blocks to protect their interests.

What Africa should first do is take urgent measures to set up the physical and political infrastructure that would harmonise customs procedures, set trading standards and allow the free movement of goods and people across the continent. This must happen now.

The article refers to the 'gradualist' and 'radical' camps. It is my opinion that the talks on ferderation and regionalism are quite often and very deliberately muddied by a sinister third camp....the anti-federalists. There is a definite school of thought that portrays federalism in all it's forms as a product from the workshop of the devil. Consider how the word Majimbo is used with such venom! A non-swahili speaker would think it was a swear word.

Anti-federation forces...afro-sceptics, if you will, have the capacity to delay, postpone or prevent any meaningful dialogue between gradualists and radicals as to the way forward. Some of these were only recently boasting of how they swilled champagne when the EAC was Killed.

As long as such idealogy holds sway all political unions in Africa will be nothing but short-lived and messy affairs. Libya and Egypt tried it and I guess your readers may also have heard of Senegambia
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Political unions in Africa
written by Branded , July 26, 2007
Jayawardene,
Hi, given the history of most political unions in Africa, do you think the the idea to create a US of Africa as noble?
Whatever your answer, what would be your priorities if you have a chance to address another of those long meetings that talk endlessly about Africa?
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institutionalisation
written by Jayawardene , July 26, 2007
Hi Branded, It is a useful question that you ask. However the answer to your question sits neatly within the question...."do you think....the US of Africa as noble....." My stock answer would be Yes: I would love to see Africa united as would perhaps many other people

I doubt that I will live to see the "creation" of such an institution. You cannot create a USA out of all the poverty and desperation of ideas that exist all over the continent today. But with economic freedom and political franchisement it can very well evolve.

A US of Africa does not need to be in existence in order for us to work together sharing our mutual resources for the benefits of all regions of this mighty continent. One does not need to be institutionalised to recognise the benefits of free movement of peoples goods and services as was once the case in our illustrious past.

The dangers of allowing the Mugabes, Gadaffis, Musevenis and other continental wannabe bullys of playing lead roles in any marriage negotiations and ceremonies are self evident. All the above rougues have shown in the past that they would not hesitate to send troops to force unwilling brides into this arranged sham marriage....a sure recipe for many violent and messy divorces.....
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Africans will regret
written by Mr.Kay , July 26, 2007
I think Gadaffi is decades ahead of his time. African leaders are just too egotistical and skeptical to implement a USoA.

Believe me, Africa will regret not listening to Gadaffi in a few decades when Europe, U.S, China and Russia take our land by force for its resources.

If Africa does not form a united force now...we have no chance.
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I doubt that Gadaffi is decade
written by Branded , August 01, 2007
Mr.Kay,
I beg to differ with your point that Gadaffi is decadeds ahead if his time because in as much as the talk abou a US Africa has exixted, Gadaffi mooted this idea long time ago even before the Western world put sanctions on Libya over lockerbie bombings. When the idea was first mooted, Gadaffi wanted to save his A*** to appear as a winner over the west, other guys have been reading mischief in his quest to have a United States of Africa.
Just before the recent meeting in Ghana ti discuss the prospects of a USAfrica, Gadaffi played host to a number of African Presidents (why?) and criiscrossed the entire African continent to ganner support for the idea.
Throught the Ghana meeting, mischief could be read in Libya's intentions in supporting the USAfrica. For example even after visiting Libya and making some really nice trade deals, Kenyan president stood his position at the Ghana meeting that it was not the right time for a United States of Africa, the same to South AFrica.
Why is he the only leader really pushing for a USA????
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A Man Of Vision
written by Jaya wardene , August 02, 2007
Mr.Kay,
I beg to differ with your point that Gaddafi is decades ahead if his time...... .....
......Why is he the only leader really pushing for a USA????


But The Brother Leader has always been decades ahead of his time. His thinking is way above that of all the other leaders in all of Africa. The big man of the little green book has very big plans for the Greater Jamahiriya Project. He has visions for a better Africa, something that the other leaders find dangerous because they would prefer to preserve their comfortable status quo.

Much closer to home, his protege has also been criss-crossing the East Africa region in a blatant excercise to drum up popularity for his presidency of the East African Federation when and IF it comes to being
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