G20 Will Solve African Countries's Problems?

Sat, 18 Apr 2009 17:43:13 -0700

The evolving world financial crisis forced leaders from developed nations (The United States of America, France, The United Kingdom, Germany, Italy, Russia, Canada, Japan - the so-called G8), and few chosen emerging countries's leaders (China, Brazil, South Africa, India, Etc.;) to meet at London, UK, April 2-3, 2009, to try to define a global solution to a global worldwide crisis.

The end of the meeting had been met with a salvo of enthusiastic reports claiming success - delivered by attending governments' and agencies's representatives and reporters.

For a sober observer, however, the confidence expressed about the outcome of the summit, was obviously an exercise staged to conjure the eventual forthcoming bad omen: social disorder and worldwide chaos. Indeed, people worldwide need to be reassured that the financial crisis would not jam, halt and destroy the whole world economic structure.

However, success or failure, the near future of the few coming months towards the end of year 2009 would tell more, as houses's foreclosures, closing of manufacturing shops, bankruptcies and financial debacles of well established and centenary companies are mounting in Europe and the States. Not to forget the drastic slowdown of the international trading, that is badly hurting Africa exports of soft commodities and minerals.

In the official communiqué, G8 leaders attending the G20 summit promised more financing to assist poor countries weather the financial debacle, and avoid the looming social and economic disaster. US$ 250 million had been earmarked for such purpose.

One is entitled to ask where would this money come from? According to the communiqué, it would be included in the extensive additional financing package "granted" to the International Monetary Fund - that had been put at US$ 850 millions.

So everything sounds rosy, and the merry-go-round would continue as before the outburst of the crisis, when everything was fine under the sun - and the successive G8 summits since year 2002 had made similar promises.

In several previous deliveries, Africabiz Online had, after each G8 summit since year 2002 [1, 2, 3] expressed doubts about such commitments from G8 leaders. In July 2005, after G8-Gleneagles summit (Scotland, UK, July 6-8, 2005 Summit), amidst hopeful expectations from billions people worldwide, an article titled : Let's Face the Truth: G8 Will Never Deliver was posted in Africabiz Online.

So, following the final communiqué from the G20 London-summit making a wonderful promise to assist developing nation with a financing package of US$ 250 million, we are asking this simple question: How can African nations expect now any assistance from developed world's leaders, when the putative donors's houses are burning? It does not make sense. A person whose house is burning takes care of its own belongings, trying to salvage the most as possible from the ravaging fire, before eventually looking after the neighbor. Right?

Therefore, as stated in a previous delivery, in order to weather the looming economic and social disaster, African countries need urgently to take their fate in their own hands. They need to design and implement survival strategies, capable of creating riches for all at a the fastest growth-pace as possible.

Click here to read about: "The Financial Crisis: Everything Rosy? G20 Will Solve Our Problems

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G20 Will Solve African Countries's Problems?