Africans-Stop-Being-Poor

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1563-4108

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Trading And Investing In & Out Africa

ISSUE 116 - VOL 2
October 15, 2009 - January 14, 2010

Dr. Bienvenu-Magloire Quenum
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Welcome to the quarterly issue of Africabiz Online /free access Synopsis & RSS Feed edition. Previous issue available at this link

Click here for the beginning of the article

The Financial Crisis . A Comparison between the Plight of Iceland and African countries.

Before reading this article, please spare some time (11 minutes) to listen to, and view the video by Jonathan Jarvis, at the bottom of this paragraph. It is a perfect illustration of the financial crisis's causes and effects

By Dr. Bienvenu-Magloire Quenum

Everything exposed in Jonathan Jarvis's video at the left side of this paragraph is valid, to explaining the economic situation prevailing in Iceland since 2008's fall.

As briefly explained at the beginning of this article, Iceland banking system harnessed itself to Wall Street and the financial center of the City of London, to indulge in and promoting unbelievable financing schemes - exposed in the video, in order to maximize profits, not only for the benefit of locals but also for foreign investors - particularly in the United kingdom and in the USA.

That is, the growth rate of the economy progressively shifted from a sound "manufacturing" base, to relying on volatile financial services.

Indeed, as shown on the graph here available, the country Per Capita Parity Purchasing Power steadily increased to stratospheric amount - not in line with produce generated by the traditional economy that is based on fisheries industries, and the exploitation of mineral resources.

And, suddenly the system started breaking apart when Wall Street and the City of London were hit hard by the subprimes crisis. Overnight, in October 2008, Iceland's economy collapsed, and now is melting down day after day, the Very High income "enjoyed" by Icelanders gone - not to be seen again in the near future.

Consequently, Iceland became the first nation in Western Europe since the 1970s to receive a loan from the International Monetary Fund, amounting to $2.1 billion. Iceland received bailout loans from other nations as well, which together with the IMF funding totaled some $10 billion. Keep in mind that $10 billion corresponds to more than half of Iceland’s GDP - the equivalent for the U.S. would be $7.2 trillion worth of loans. [Source]

- Iceland Submitted to Structural Adjustment Programs (SAP)

In fact, Iceland, is right now submitted to Structural Adjustment Programs - sponsored by the World Bank, the IMF and the European Union. All the conditionalities attached to SAP applied to developing world countries included.

That are, briefly stated for African nations, the state not to get involved in companies that produce and sell commodities, energy, utilities and so on; to disband state-run companies and sell them to private investors - that most of the time are from the developed countries; to devaluate national currencies, to stop subsidies to food stuffs and to scale back civil servants's numbers. Etc.

African countries government, searching desperately to overcome the downturn of the economy were told that they have no alternative but to choose free enterprise, free trade and accept Globalization as the sole and unique way to develop. [1]

- African nations accepted and carried out these drastic conditionalities. Icelanders are resisting!

Right now, the Icelanders are brainstorming hard to find viable solutions to everturn the demise of the economy. They are particularly pondering if "debts should be paid [...] If they can’t be, then trying to pay will only shrink economics further, preventing them from becoming viable". [Source]

This is a very interesting move undertaken by the Icelanders. Read the sourcing link above outlined, to see what all this means. Would creditors from the United Kingdom, France, Germany and the United States of America, the IMF and the World Bank accept to curb and bypass SAP drastic conditionalities in favour of the Icelanders? That would be very interesting to watch in the near and long term.

Indeed, as known to observers of the world political stage, African nations were forced to accept and applied these crippling conditionalities, which, under the false flag of Globalization, are further impoverishing the populations of the developing world, and destructuring the economy at high speed - as exposed by Michel Chossudovsky's, "The Globalization of Poverty and the New World Order".

That is the rule imposed on African countries, "Apply it (SAP) or leave it. At your own peril. But you have no choice. Otherwise, you would be left sweating for ever!" For more on the matter visit this link

In case SAP's drastic conditionalities rules are bent to suit Iceland's "sovereign" requests, that would highlight, once again, the double standard applied by the international community to the developing countries.

Africabiz Online will keep a sharp eye on the evolution of the economic situation in Iceland, and scrutinize the attitude of the international community to assist Icelanders overcome the huge burden of debts that is destroying the standard of living and sending people emigrating en masse to better shores.

About the author: Dr. Bienvenu-Magloire Quenum is the principal/ managing director of Dr. Quenum & Associates, IBC. He is an experienced Investment & Business Planner with 28 years consulting practice in African countries. He is the author of Africans, Stop Being Poor! and the editor in chief of Africabiz Online

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MORE ON THE FINANCIAL CRISIS
1- Financial Shock: A 360º Look at the Subprime Mortgage Implosion,
and How to Avoid the Next Financial Crisis
by Mark Zandi (Hardcover - Jul 19, 2008)
2- The New Paradigm for Financial Markets:
The Credit Crisis of 2008 and What It Means
by George Soros (Hardcover - May 5, 2008)
3- Manias, Panics, and Crashes:
A History of Financial Crises (Wiley Investment Classics)
by Charles P. Kindleberger, Robert Aliber, and Robert Solow (Paperback - Oct 4, 2005)
4- Chain of Blame:
How Wall Street Caused the Mortgage and Credit Crisis
by Paul Muolo and Mathew Padilla (Hardcover - Jul 8, 2008)
5- Understanding Financial Crises
(Clarendon Lectures in Finance)
by Franklin Allen and Douglas Gale (Hardcover - May 17, 2007)
6- The Subprime Solution:
How Today's Global Financial Crisis Happened, and What to Do about It
by Robert J. Shiller (Hardcover - Aug 24, 2008)
7- The Trillion Dollar Meltdown:
Easy Money, High Rollers, and the Great Credit Crash
by Charles R. Morris (Hardcover - Mar 3, 2008)
8- Empire of Debt:
The Rise of an Epic Financial Crisis
by William Bonner and Addison Wiggin (Paperback - Oct 6, 2006)
9- Financial Crisis, Contagion, and Containment:
From Asia to Argentina
by Padma Desai (Hardcover - April 21, 2003)
10- America's Financial Apocalypse:
How to Profit from the Next Great Depression
by Stathis (Paperback - Nov 14, 2006)
11- Crash Proof:
How to Profit From the Coming Economic Collapse (Lynn Sonberg Books)
by Peter D. Schiff and John Downes (Hardcover - Feb 26, 2007)
12- Bad Money:
Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism
by Kevin Phillips (Hardcover - April 15, 2008)

"CONTRIBUTOR'S GUIDELINES" are available here. We invite you to contribute to AFRICABIZ ONLINE MONTHLY ISSUE - with articles related to "How Africa Could Bridge The Developing Gap".

Your feedback / objection / contribution is welcome. Visit WorldWide BizCenter, and choose General Information (as topic) to create a thread for discussion. On the top of the WorldWide BizCenter page, there is a HELP link to assist you making an efficient use of the discussion board. This link also is useful


Many thanks for subscribing to Africabiz. See you here on January 15, 2010.


  Dr. B.M. Quenum
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Business Opportunities

MISCELLANEOUS SERIES: - STRAW AS RAW MATERIAL TO PRODUCING ENERGY: PART IV: ELECTRICITY PRODUCTION USING STRAW AS FEEDSTOCK

Cereals's straw can either be used alone or mixed with other biomass materials (co-firing or co-combustion) in direct combustion. In this technology, a hay-furnace is used to heat boilers coupled with steam turbines to produce electricity.

In thermal combustion, air is injected into the combustion chamber to ensure that the biomass is completely burned in the combustion chamber.

Click here to read more about the matter

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Control Your Desktop

NEVER OPT FOR FREE PROXY IP HIDING SYSTEM


Previous deliveries [2 and 3] briefly explain, "Why You Need to Surf Anonymously," and provide tips and tricks to do so efficiently

This issue by guest author OJ Samson, warns against using free IP / Proxy changing clients.

IP addresses basically broadcast your location. IP address stands for Internet protocol address. Every computer connected to the internet via an internet service provider has one.

Due to the fact that IP addresses broadcast your location, it could be a gateway to determining your identity for people who know their way around the internet. To avoid this, it has become increasingly popular to use IP address changing tools to hide identity online these days.

For more on the matter visit this link

More on the matter


Freebie Of The Month

NEED STATS? USE GEOHIVE!

At Africabiz Online, we always need good statistics about every exposed subject/matter, and GeoHive is the best site out there on the Internet to provide plenty.

On GeoHive, the amount of statistics about anything on earth is amazing. Not only current ones, but also projections in the future. For instance, the category labeled Global Data, provides regional population figures from 1750 to 2050, plus projections for population growth by country. Click here for more


 
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