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Pan Africa &

World Review
Second Quarter 2010

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The Art of Universality
Pan Africa & World Review
Second Quarter 2010
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From the Publisher’s Desk

Enlightened 21st century vision haunted by dark delusions

S econd Quarter 2010 was a season of summits. The G-8

and G-20s Summits, of which the former is expected to
be the last; the Brazil, Russia, India and China (BRIC) Summit
and the India, Brazil and South Africa (IBSA) Dialogue Forum
Summit. Surge of the Global South and waning of the age of
North Atlantic global dominance is both implicit and evident
in the fact, substance and significance of the new summitry
formation. Significantly, expansion of the UN Security Coun-
cil’s permanent and non-permanent membership was a ma-
jor point in the final communiqués of both the BRIC and IBA
Summits. However, the European Union, Latin America, Car-
ibbean Summit, the 6th of which was held in May, is particu-
larly interesting because from it we shall see how an inter-
The Art of Universality national cooperation group comprised of the world’s
wealthiest and poorest countries progresses. The challenge
is on the table for the three participating regions. If they can
work constructively, progressively, together it could be a
guiding light and fresh hope for mankind. Verily the age of
imperialism is moribund but the question is how softly or
hard it dies.
Focusing on international peace and security were sev-
eral nuclear summits and conferences, with the Nuclear Non
-Proliferation Treaty Review Confab running from May 3rd
to 28th at the United Nations Headquarters in New York. It
followed on the heels of President Obama’s April 12th and
13th Nuclear Security Summit in Washington and the Tehran
Nuclear Summit on April 18th. On April 8th in Prague, Czech
Republic, U.S. President Barack Obama and his Russian
counterpart Dmitry Medvedev signed a Strategic Arms Re-
duction Treaty (START) that committed them to each re-
duce their nuclear stockpiles to not more than 1,550 war-
heads over the next seven years. START also reduces the
number of permissible nuclear warhead carrying missiles
and war planes.
6 Pan Africa & World Review 2nd Quarter 2010
From the Publisher’s Desk Enlightened 21st century vision haunted by dark delusions
President Obama advocates a nuclear weapons
free world but the large nuclear weapons stockpiles
that would still remain in Russia and the United
States upon expiration of the current treaty, which
in Washington needs ratification by two-thirds of
the Senate, indicates that this is a century long goal.
Apparently yielding to Israeli pressure the U.S.
backtracked on its initial support for a conference
next year on making the Middle East a nuclear
weapons free zone. Deepti Choubey, attending the
Nuclear Non-Proliferation Treaty Review Confab on
behalf of the Carnegie Endowment for International
Peace argued, "If you are concerned about Iran's
nuclear ambitions, then a conference on a nuclear-
free Middle East can be another tool or framework The young presidents of former Cold War foes the United
for trying to curb their ambitions. Critics of the con- States and Russia, Barack Obama and Dmitry Medvdeev,
ference need to get past the reflexive view that this discussing amicably in Washington, June 2010
is just an attempt to criticize the Israelis." Mean-
while, revelations surfaced on nuclear technology
transfer discussions between Israel and the apart-
heid regime in South Africa during the 1970s. Excus-
ing Israel from transparency on its nuclear weapons
situation obviously only hardens the resolve of the
Iranians to scorn international concern about the
intentions of its nuclear power program, which
could either lead to Iran provoking a pre-emptive
attack on its nuclear facilities by either Israel or the
U.S. or an eventual nuclear face off between Israel
and Iran. Either way it’s war.
As long as Washington clings to its carte
blanche Israel support policy its global leadership
credibility and profile will continue diminishing; talk Principal Middle East hawks Iran and Israel, currently charac-
of the apartheid character of Israel’s political behav- terized by the uncompromising politics of President Mahmoud
ior is now open and heard increasingly from Europe- Ahmadinejad (left) and Prime Minister Benjamin Netanyahu
ans, not to mention the indignation with which (right)
Global South leaders regard extreme right led Is-
rael. It’s time for the world to be unequivocal to the
Israeli electorate that support for right wing extrem-
ist leaders makes Israeli a pariah state.
Poland’s presidential jet crashed in Russia, kill-
ing all 96 people on board; including the president,
first lady, cabinet ministers and top military brass. It
was the biggest political transport accident of our
times. Initial findings by the investigating team set
up by the Russian government affirmed that the
pilot had ignored instructions by flight engineers on
the ground not to try and land at Smolensk-North
Air-port owing to inclement weather. The late Presi-
dent Lech Kaczyński’s identical twin brother Jaro-
slaw, a former prime minister and chairman of the
Law & Justice Party to which they both belong, con-
tested Poland’s presidential election on June 20th, U.S. Secretary of State Hilary Clinton trying to balance support
for obdurate Israel with friendly Arab relations
coming second in the first round of voting with
7 Pan Africa & World Review 2nd Quarter 2010
From the Publisher’s Desk Enlightened 21st century vision haunted by dark delusions
36.46%, behind Acting President Bronislaw Ko-
morowaski’ s 41.54%. The runoff is scheduled for
July 4th.
Another tragedy was the death of Nigeria’s
President Umaru Musa Yar’Adua in early May; four
months shy of his 59th birthday. Yar’Adua had been
on medical leave since last November. He was suc-
ceeded by his Vice President Goodluck Jonathan.
Both men previously served as governors of their
home states. As acting president, Jonathan met with
U.S. President Barack Obama at the White House,
while in Washington representing Nigeria at the mid
-April Nuclear Security Summit.
As president Jonathan took on the Ministry of
Power portfolio promising to finally end Nigeria’s
incessant blackouts. Towards the end of June came
news of a deal to be signed between Nigeria and
the Swiss Addax Group for supply of 100million
standard cubic feet of gas per day for the firing of
one the power plants under the National Integrated
Power Plant, NIPP.
Several other countries changed leaders during
the quarter. Japan’s Prime Minister Yukio Hatoyama
resigned on June 1st after only eight months in of-
fice, citing his broken campaign promise to remove
the American military base from Okinawa Island. In
nobly blaming himself for an inadequate perform-
ance as Prime Minister, Hatoyama also cited a po-
litical funding scandal, in which two of his aides Nigeria’s late President Umaru Musa Yar’Adua at the 2009
were convicted of falsifying political contribution Davos World Economic Forum
reports and sentenced to suspended prison terms.
Hatoyama, 63, whose grandfather had been Japan’s
Prime Minister, was succeeded by his finance minis-
ter Naoto Kan, also 63.
Australia’s Prime Minister Kevin Rudd was sud-
denly dumped by his Labor Party on June 24th,
opening the way for his deputy United Kingdom
born Julia Gillard to become the country’s first fe-
male prime minister. In April we saw the dramatic
fall of the United Kingdom’s Labor Party when a
hung Parliament was resolved by a team up of the
Liberal Party and the Conservatives. The Conserva-
tives won the most votes and Parliamentary seats
but fell short of a majority. With Liberal Party leader
Nick Clegg as Deputy Prime Minister to the Conser-
vatives’ David Cameron the Tories led a majority Julia Gillard (seated left) in 2007 taking office as Deputy
coalition into 10 Downing Street. Prime Minister to Kevin Rudd (standing right in dark suit); on
The Philippines’ June 2 presidential election June 24th she replaced her former boss as Prime Minister
following a party leadership vote.
was won by Noynoy Aquino, son of the late Presi-
dent Corazon Aquino. On June 30th he took the
reigns of power from his former university econom-
ics professor, incumbent President Gloria Arroyo. In
Columbia former defense minister Juan Manuel
8 Pan Africa & World Review 2nd Quarter 2010
From the Publisher’s Desk Enlightened 21st century vision haunted by dark delusions
Santos, 59, prevailed in the June 20 run off to suc-
ceed his mentor retiring President Alvaro Uribe. His
inauguration is scheduled for August 7.
April elections in Sudan largely boycotted by
the opposition gave President Omar Al Bashir an-
other 4 years in power, on top of the 21 he has al-
ready, despite an International Criminal Court in-
dictment against him. Neither international nor na-
tional monitors raised any doubts about the legiti-
macy of the outcome. Following the elections the
Sudan People’s Liberation Movement (SPLM) which
scored a landslide victory in semiautonomous
Southern Sudan began informing the world that it
would encourage Southerners to vote for self- Internally Displaced Persons in Darfur on their way to a
determination in the referendum scheduled for next polling station during Sudan’s April elections. (Below) UN
sponsored Radio Miraya broadcaster Lubna Lasu whose
January. Government of Southern Sudan President
program based in Juba, Southern Sudan’s capital, focused
Salva Kirr, who won with over 90% of the vote,
during the election season on women rights and voter turn
cited the refusal of Al Bashir’s National Congress out.
Party (NCP) to turn over to Southern authorities the
Sudan Armed Forces officers who committed atroci-
ties in the South following the January 2005 peace
deal. SPLM Secretary General Pagan Amum told a
conference at the African Union headquarters in
Addis Ababa with NCP present that Al Bashir’s gov-
ernment had failed to make unity attractive as
agreed in the 2005 Comprehensive Peace Agree-
ment that ended 22 years of civil war between
North and South Sudan.
The governing Ethiopian People’s Revolution-
ary Democratic Front (EPRDF), led by Prime Minister
Meles Zenawi won a landslide victory in the Horn of
Africa country’s June general elections. While Euro-
pean Union observers faulted the campaigning, with accusations of corruption and nepotism, his
which was peaceful, as were the elections, they did home constituency in the southern part of the coun-
not dispute the results. try rallied behind him; violence erupted resulting in
Guinea on June 27th held its first democratic dozens of deaths and thousands displaced. An in-
elections since independence 52 years ago, with 27 terim government headed by former foreign minis-
candidates contesting the presidency. Results for ter Madam Roza Otunbayeva was set up after Baki-
the first round are expected in early July and with so yev fled the capital, Bishkek.
many presidential contenders a second round of Speaking of women leaders, Washington was
voting is quite likely. While observers praised the all praises for Liberia’s President Ellen Johnson-
fairness and peacefulness of the exercise from the Sirleaf when she visited in early June. She was gra-
campaign stage up to the voting, following the elec- ciously hosted by both House Speaker Nancy Pelosi
tions 20 participating parties alleged massive fraud. and President Obama. The American president said
In Burundi incumbent Pierre Nkurunziza was he had been an extraordinary admirer of Madam
the sole presidential candidate after all opposition Sirleaf for many years.
parties pulled out of the polls citing lack of confi- Helping Africa sustain growth, China continued
dence in the process. to expand its economic involvement with a $23 bil-
The most tumultuous leadership change oc- lion Memorandum of Understanding to build three
curred in the former Soviet republic of Kyrgyzstan 250,000 barrel a day oil refineries and a gas to plas-
where President Kurmanbek Bakiyev was toppled in tic petrochemical complex in Nigeria. China in 2009
a bloody uprising during April and fled the country. stayed ahead of the United States of America as
Although he was widely unpopular and assailed Africa’s largest trading partner, attaining a trade .
9 Pan Africa & World Review 2nd Quarter 2010
From the Publisher’s Desk Enlightened 21st century vision haunted by dark delusions
volume of $90 billion, exceeding
the U.S. by $4bn.
The World Cup in South
Africa kicked off on June 11th
living up to its promise to be the
single most exciting and atten-
tion drawing event of 2010. Si-
phiwe Tshabalala playing for
host South Africa’s Bafana
Bafana scored the first goal of
the first ever World Cup played
in Africa as his team drew 1-1
with Mexico. However, by the
end of the first round Ghana was
the only African team left in the
competition. Group winners were Argentina, Brazil, Brazil players Kaka (10) and Luis Fabiano (9) savor the lat-
ter’s goal in their 3-0 victory over Chile as the 5 time World
Uruguay, USA, Germany, Netherlands, Paraguay and
Cup champions on June 29th became the first team to
Spain, with Argentina and Netherlands ahead on qualify for the quarter finals.
points with 9 each. However, Brazil whose players
say they are desperate for a 6th World Cup title be-
came [on June 29th] the first team to advance to the
quarter-finals, mauling Chile 3-0.
Despite football being Africa’s most popular
sport, African athletes and their Caribbean cousins
continue to drive home the fact that Track & Field is
the sport in which Africans have massively excelled
on the world stage. Kenya’s David Rudisha has been
unbeatable at 800m, with Sudan’s Abubaker Kaki
close on his heels. South Africa’s Mbulaeni Mulaudzi
won the 800m at New York’s Adidas Grand Prix in
the absence of Rudisha and Kaki. The Kenyans and
Ethiopians are dominating distance races from
1,500 meters up to 10,000 meters, while Bot-
swana’s female entrant Amantle Monsho won the
Adidas Grand Prix 400 meters and the Jamaicans
continue dominance of both male and female
sprints. Jamaica’s Usain Bolt anchored his country’s
4 x100m relay team at the at Penn Relays, beating
the Americans who are accustomed to dominating
the event.
Natural disasters and mine accidents never
abate, with China frequently in the news for both,
but now employee suicides are becoming another
source of tragedy in China. Increasingly world lead-
ers are accusing the financial and corporate commu-
nities of a culture of greed; nowhere was this more
evident than in the U.S. Congressional hearing with
BP’s CEO, where he stone walled questions about Kenya’s indomitable 800m runner David Rudisha at 21 is
the technically unsuitable cost saving measures his already the African record holder. Behind him in this photo
country adopted that led to the tragic explosion of is perennial challenger Sudan’s 21 year old Abubaker Kaki.
its deep water oil rig in the Gulf of Mexico. Presi-
dent Obama accused the U.S. government oversight
agency of being in cahoots with the oil companies in
10 Pan Africa & World Review 2nd Quarter 2010
From the Publisher’s Desk Enlightened 21st century vision haunted by dark delusions
bypassing regulations. The resulting unstoppable oil
spill is probably the worst corporate caused environ-
mental disaster in history.
The darkest side of the contemporary human
story remains manic terrorism, but while efforts are
being made to de-radicalize Islamic fascist elements
largely responsible for this global scourge more con-
sideration needs to be given to the historical and lin-
gering factors that inspire sectarian and political ex-
tremism. Personally I think even handed intolerance
of both Hamas and Israel’s hawkish right wing is nec-
essary in tandem with an externally imposed just
settlement to the Middle East crisis. It seems to me
that the plan proffered by King Abdallah of Saudi
Arabia is the just way forward, whereby all Arab stats
would recognize Israel in return for Arab lands cap-
tured in the 1967 war and a Palestinian state with
East Jerusalem as its capital, all of which the United
Nations General Assembly resolutions already call
for. Rumors have circulated in the media that both
the European Union and Washington are considering
imposing a solution on the parties in the Middle East
crisis. I wish that Saudi King Abdallah’s late June visit South Korea, currently led by President Lee Myung-Bak, has
to Washington will yield fruit in that direction. become a major contributor to global progress in many
Meanwhile nuclear armed pariah North Korea is fields, but is today threatened with war from nuclear
bullying the world, threatening war if it is blamed for armed, fascist North Korea. Meanwhile, the response of the
sinking of a South Korean naval vessel, as an interna- rest of the world is timid compared to the belligerent
tional investigatory team concluded. That China and threats from Pyongyang.
Russia were left out of the investigatory team has
not only made the two countries having the most
influence over North Korea reluctant to recognize
the team’s finding, it further demonstrates the inep-
titude in dealing with the contemporary geopolitical
challenges of those presently assuming world leader-
Finally, farewell to my old friend film actor and
director Dennis Hopper. We became friends in 1971
while staying in neighboring hotel rooms during the
Cannes Film Festival. Ours was a group of young Paris
resident African, African American and Caribbean
guys and gals, all long time friends, packed in one
room and Hopper, who was then famous for his co-
staring and directing roles in the acclaimed film Easy
Rider, introduced himself and thenceforth appeared
to spend most of his free evenings with us. Reading
some of the media reports about his spiky tempera-
ment I recalled that old psychology adage about how
environment effects your disposition and personal-
ity. With us Hopper was a big brother (more than 10
years our senior), perfectly at home. Everyone in our
little group was ebullient and we all loved and en-
joyed each other, including our new friend Dennis. Dennis Hopper May 17, 1936 – May 29, 2010

11 Pan Africa & World Review 2nd Quarter 2010

Second Quarter 2010
Table of Contents
BRIC Summit/IBSA Dialogue Forum 19
European Union, Latin America, Caribbean Summit 42
G-8 & G-20 Summits 43
NGO Responses to the G-20 Summit 50
America and Russia’s START 52
Nuclear Security Summit 53
Iran Nuclear Summit 54
Nuclear Non-Proliferation Confab 55
UN Security Council Sanctions on Iran 60
Currency Exchange Rates & Market Reports 62

East Africa Community Agricultural Produce Standardization 70
ECOWAS Council of Ministers Adopts Regional Industrial Policy 71
World Economic Forum on Africa 73
Fourth Annual Corporate Council on Africa (CCA) 78
Mid-Year Review of African Stock Market Performance 80
Sub-Sahara Stocks 81
West Africa Regional Stock Exchange (BVRM) 82
Franco-African Summit 83
Franco-African Summit, French President Sarkozy interview 85
Franco-African Summit: South African President on Peace & Security 89
Africa leads world in Christian-Muslim cohabitation 92
Congo, Others in Africa Celebrate 50th Independence Anniversary 96
Congo at 50 99
Ethiopia’s Elections 2010 101

12 Pan Africa & World Review 2nd Quarter 2010

Pan Africa & World Review Table of Contents Second Quarter 2010
Ethiopia-Turkish Industrial Zone 105

Ethiopia gets $125.6m AFDB loan for Addis-Mombasa Road 106

Ghana Central Bank report on first quarter 2010 economic performance 107

Ghana’s revenue loss on gold exports 108

Ghana Stock Exchange 110

Guinea’s June Elections 111

Liberia-U.S. Joint Drug Bust 113

Liberia Millennium Challenge Corp. $15m grant 117

Liberia’s Priority Infrastructure 117

Liberia joins campaign to eradicate polio in West Africa 118

Liberia receives $40 million education grant 118

Liberia debt burden reduced by $4.9 billion 119

Liberia President’s Brazil Visit 120

Liberia President’s U.S.A. Visit 122

Liberia’s post-conflict recovery– the role of agriculture 124

Liberia: Interview President Sirleaf 127

Liberia’s investment from China reaches $9.9 billion 133

Mali Development Initiatives Lauded by UN 135

Nigeria Stock Exchange 136

Nigeria signs $23bn refinery construction MOU with China 137

Nigeria National Petroleum Corporation CEO change 137

Nigerian Journalist Union protest colleagues’ murders 137

World Bank to finance Nigerian film distribution technology 138

Nigeria: Calling Shell’s $40 billion bluff 140

Nigeria’s New Cabinet 141

Nigerian Journalist Killings 143

Nigeria’s President Jonathan talks to CNN 144

Nigerian Leader Gets Attention in America 147

Nigeria’s President Yar’Adua Dies 149

Nigeria’s new Vice President 153

13 Pan Africa & World Review 2nd Quarter 2010

Pan Africa & World Review Table of Contents Second Quarter 2010
Nigeria Voice From the People 154

South Africa Strategic Plan 2010-2013 155

South African Banking Confidence Recovers 156

South Africa’s Johannesburg Stock Exchange (JSE) 157
South Africa’s Eugene Terreblanche Slain 158
South Africa’s Dilemma 159
South Africa Finances Youth Development 161
South Africa to Spend $2.15bn on Housing 162
South Africa President Zuma’s India Visit 163
South Africa’s Gautrain comes on stream 166
Sudan’s Presidential Election Won by Al Bashir 167
Sudan’s Key Post Referendum Issues 170
Sudan: Oil Consortium implicated in War Crimes 171

Afghanistan’s trillions in mineral wealth 174
China leads global economic recovery 175
China-Taiwan Trade Pact 176
Chinese President calls for universal health care 177
Chinese VP’s four nation regional tour 178
China Hosts French President Nicolas Sarkozy 179
China News Briefs 180
China: World Expo 2010 in Shanghai 183
China Auto Show 2010, Beijing 188
Japan’s Prime Minister Yukio Hatoyama resigns 203
Japan’s new Prime Minister Naoto Kan 204
Kyrgyzstan Democracy 205
North Korea dares the world 209
Pakistan Constitutional Reform 216
Philippines Chooses Another President Aquino 218
Philippines: Benigno Aquino III’s Inauguration 221
Thailand’s Political Crisis 222
Middle East/Israel-Palestine: Holding Peace Hostage 226

14 Pan Africa & World Review 2nd Quarte 2010

Pan Africa & World Review Table of Contents Second Quarter 2010
Hisballah, Israel Prepare for War 229

Australia’s Leadership Change 232

Caribbean & Central America

Haiti’s Challenges 235

Haiti’s Women Demand Role in Reconstruction 237

Haiti’s Most Vulnerable: Women and Girls 238

Jamaica Dimensions 239

Jamaica Stock Exchange 242

Helping Greece, Saving the Euro 244

Belgium’s Schism 247

Greece and Turkey Rapprochement 248

Polish President, First Lady and entire entourage die in jet crash 250

Poland’s Kacynski Twins 251

U.K. Elections: Generation Gang Up in Britain 252

David Miliband favored to lead Labor 255

Farewell Gordon Brown 259

Veiling Common Sense 260

North America
Mexican President visits U.S. 264

Mexico’s fight against drug cartels 265

Companies news 266

The Obama Chronicle 268

Obama and African America 278

Millionaire Obama 285

15 Pan Africa & World Review 2nd Quarter 2010

Pan Africa & World Review Table of Contents Second Quarter 2010
U.S. Supreme Court Firearms Ruling 286

South America
Brazil’s Workers Party candidate leads pre-election polls 289
Columbia elects rebel nemesis president 290

South Africa’s Art Heritage Gallery 295

Daimler-Benz Bribery Scandal 305
New York International Automobile Show 306

African Leadership Academy 336
University of Ghana 338

World Cup 2010 Music Stars 347
Lena Horne Obituary 352

Iceland’s Volcano Stops Europe’s Air Traffic 356
Global Volcanoes in 2010 362
Gulf of Mexico Oil Spill 365

African Vibes Magazine “I Wear African” 367
Mataano Collection 370
Abuja Style 376
Accra Style 383
Johannesburg Style 384
Khartoum Style 385

16 Pan Africa & World Review 2nd Quarter 2010

Pan Africa & World Review Table of Contents Second Quarter 2010
Paris Style 387
Washington Style 390

Health & Medicine

Countering Counterfeit Medicine 393

Information Media
Right Wing Media Blitz 397
Essay: Constitutional and State Institutional Theory 400

Science & Technology

Computers: Apple iPad launched 408
Biotechnology: Artificial Life Breakthrough 409
Particle Physics: Matter versus Anti-matter 411
Space Travel: Atlantis final launch 412

Basketball: Lakers NBA Champions Again 415
Boxing: Haye beats Ruiz 418
Golf: Mickelson wins Masters, Woods still #1 419
Soccer: World Cup 2010 South Africa 420
Tennis: Rafael Nadal #1 Again 434
Track & Field Diamond League 435

17 Pan Africa & World Review 2nd Quarter 2010

Group photo of the 2010 G-20 Toronto summit family photo — Delegates from left to right (front row): Argentine
President Cristina Fernandez de Kirchner, Mexican President Felipe Calderón, Indonesia President Susilo Bambang
Yudhoyono, Chinese President Hu Jintao, Korean President Lee Myung-bak, Canadian Prime Minister Stephen
Harper, American President Barack Obama, Saudi Arabian King Abdullah, French President Nicolas Sarkozy; (middle
row): African Union Chairman and Malawi President Bingu wa Mutharika, Italian Prime Minister Silvio Berlusconi,
German Chancellor Angela Merkel, Spanish Prime Minister José Luis Rodríguez Zapatero, Dutch Prime Minister Jan
Peter Balkenende, South African President Jacob Zuma, Russian President Dmitry Medvedev, NEPAD Chairman and
Ethiopian Prime Minister Meles Zenawi, Turkish Prime Minister Recep Tayyip Erdoğan, Indian Prime Minister Man-
mohan Singh, ASEAN Chairman Nguyễn Tan Dung, British Prime Minister David Cameron; (top row): WTO Director
General Pascal Lamy, IMF Managing Director Dominique Strauss-Kahn, UN Secretary General Ban Ki-moon, Euro-
pean Union President Herman Van Rompuy, Australian Deputy Prime Minister Wayne Swan, Japanese Prime Minis-
ter Naoto Kan, Brazilian Finance Minister Guido Mantega, European Commission President José Barroso, World
Bank President Robert Zoellick.


BRIC Summit

(left to right) Brazil’s President Luiz Inácio da Silva, Russia’s Present Dmitry Medvedev, India’s Prime Minister Manmo-
han Singh and China’s President Hu Jintao

T he Second BRIC (Brazil, Russia, India and

China) Summit was held on April 16, 2010 in
Brazil’s capital, Brasilia. During the period 2003 to
in combating the crisis through unprecedented
levels of coordinated action. We welcome the fact
that the G-20 was confirmed as the premier forum
2007 these emerging economies accounted for for international economic coordination and coop-
65% of global economic expansion and trade be- eration of all its member states. Compared to pre-
tween the four expanded by 382% during the pe- vious arrangements, the G-20 is broader, more
riod 2003 to 2008, from $10.7 to $51.7 billion. inclusive, diverse, representative and effective.
The day before the BRIC Summit commenced We call upon all its member states to undertake
Brasilia hosted the IBSA Summit (India, Brazil and further efforts to implement jointly the decisions
South Africa). adopted at the three G-20 Summits.

BRIC Summit Communiqué 4. We advocate the need for the G-20 to be proac-
tive and formulate a coherent strategy for the
We, the leaders of the Federative Republic of Bra-
post-crisis period. We stand ready to make a joint
zil, the Russian Federation, the Republic of India
contribution to this effort.
and the People's Republic of China, met in Brasilia
on 15 April 2010 to discuss major issues of the in-
5. We express our strong commitment to multilat-
ternational agenda as well as concrete steps to
eral diplomacy with the United Nations playing
move forward the cooperation and coordination
the central role in dealing with global challenges
within BRIC.
and threats. In this respect, we reaffirm the need
We have agreed on the following:
for a comprehensive reform of the UN, with a
Common Vision and Global Governance
view to making it more effective, efficient and rep-
1. We share the perception that the world is un-
resentative, so that it can deal with today's global
dergoing major and swift changes that highlight
challenges more effectively. We reiterate the im-
the need for corresponding transformations in
portance we attach to the status of India and Bra-
global governance in all relevant areas.
zil in international affairs, and understand and
support their aspirations to play a greater role in
2. We underline our support for a multi-polar, eq-
the United Nations.
uitable and democratic world order, based on in-
ternational law, equality, mutual respect, coopera-
5. We believe the deepened and broadened dia-
tion, coordinated action and collective decision-
logue and cooperation of the BRIC countries is
making of all States.
conducive not only to serving common interests of
emerging market economies and developing coun-
3. We stress the central role played by the G-20
19 Pan Africa & World Review 2nd Quarter 2010
International/BRIC Summit
tries, but also to building a harmonious world of that there is a greater need for a more stable, pre-
lasting peace and common prosperity. We have dictable and diversified international monetary
agreed upon steps to promote dialogue and coop- system.
eration among our countries in an incremental,
proactive, pragmatic, open and transparent way. 11. We will strive to achieve an ambitious conclu-
sion to the ongoing and long overdue reforms of
International Economic and Financial Issues the Bretton Woods institutions. The IMF and the
World Bank urgently need to address their legiti-
6. The world economic situation has improved macy deficits. Reforming these institutions' gov-
since our first meeting in June 2009, in Ekaterin- ernance structures requires first and foremost a
burg. We welcome the resumption of economic substantial shift in voting power in favor of emerg-
growth, in which emerging market economies are ing market economies and developing countries to
playing a very important role. However, we recog- bring their participation in decision making in line
nize that the foundation of world economic recov- with their relative weight in the world economy.
ery is not yet solid, with uncertainties remaining. We call for the voting power reform of the World
We call upon all states to strengthen macroeco- Bank to be fulfilled in the upcoming Spring Meet-
nomic cooperation, jointly secure world economic ings, and expect the quota reform of the IMF to be
recovery and achieve a strong, sustainable and concluded by the G-20 Summit in November this
balanced growth. We reiterate our determination year. We do also agree on the need for an open
to make positive efforts in maintaining domestic and merit based selection method, irrespective of
economic recovery and promoting development in nationality, for the heading positions of the IMF
our own countries and worldwide. and the World Bank. Moreover, staff of these in-
stitutions needs to better reflect the diversity of
7. We underline the importance of maintaining their membership. There is a special need to in-
relative stability of major reserve currencies and crease participation of developing countries. The
sustainability of fiscal policies in order to achieve a international community must deliver a result
strong, long-term balanced economic growth. worthy of the expectations we all share for these
institutions within the agreed timeframe or run
8. We are convinced that emerging market econo- the risk of seeing them fade into obsolescence.
mies and developing countries have the potential
to play an even larger and active role as engines of IBSA Dialogue Forum
economic growth and prosperity, while at the The IBSA Dialogue Forum (India, Brazil, South Af-
same time commit to work together with other rica) is an international tripartite grouping for pro-
countries towards reducing imbalances in global moting international cooperation among these
economic development and fostering social inclu- countries. It represents three important poles for
sion. galvanizing South-South cooperation and greater
understanding between three important conti-
9. G-20 members, with a significant contribution nents of the developing world namely, Africa, Asia
from BRIC countries, have greatly increased re- and South America. The forum provides the three
sources available to the IMF. We support the in- countries with a platform to engage in discussions
crease of capital, under the principle of fair burden for cooperation in the field of agriculture, trade,
-sharing, of the International Bank for Reconstruc- culture, and defence among others.
tion and Development and of the International The 2010 IBSA summit took place in Brasilia,
Finance Corporation, in addition to more robust, Brazil on April 15, 2010. The meeting took place
flexible and agile client-driven support for devel- between the three heads of government from the
oping economies from multilateral development IBSA states. This was the fourth such meeting.
banks. Palestinian Authority Foreign Minister Riad
Malki was in Brasilia to confer with the IBSA lead-
10. Despite promising positive signs, much re- ers, who issued a Joint Communiqué on the Mid-
mains to be done. We believe that the world dle East situation.
needs today a reformed and more stable financial
architecture that will make the global economy
less prone and more resilient to future crises, and
20 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum

India-Brazil-South Africa Dialogue Forum

Fourth Summit of Heads of State/Government
Brasília Declaration

IBSA leaders in Brasilia (left to right) India’s Prime Minister Manmohan Singh, Brazil’s President Luiz
Inácio Lula da Silva and South Africa’s President Jacob Zuma

15 April 2010 ing the role of developing countries, increasing the

The Prime Minister of the Republic of India, H.E. interchanges amongst themselves with the partici-
Dr. Manmohan Singh, the President of the Federa- pation of their peoples, and for implementing con-
tive Republic of Brazil, H.E. Mr. Luiz Inácio Lula da crete projects in partnership with other develop-
Silva, and the President of the Republic of South ing countries.
Africa, H.E. Mr. Jacob Gedleyihlekisa Zuma
(hereinafter referred to as “the Leaders”) met in 3. Recalling the Declarations and Communiqués
Brasília, Brazil, on 15 April 2010 for the 4th Sum- issued during the previous Summits, they took the
mit of the India-Brazil-South Africa (IBSA) Dialogue opportunity to deliberate on the topics hereunder.
Global Governance
2. The Leaders highlighted that the three coun-
tries’ commitment to democratic values, inclusive 4. The Leaders reaffirmed their commitment to
social development and multilateralism consti- increase participation of developing countries in
tutes the basis for their growing cooperation and the decision-making bodies of multilateral institu-
close coordination on global issues. They noted tions. They also reiterated the urgent need for
that a first round of IBSA Summits of Heads of the reform of the United Nations (UN) to render
State/Government (Brasilia, 2006; Tshwane, 2007; it more democratic and consistent with the priori-
New Delhi, 2008) has strengthened the three ties of developing countries. They particularly
countries resolve to continue to work for enhance- emphasized that no reform of the United Nations
21 Pan Africa & World Review 2nd Quarter 2010
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Brasília Declaration
will be complete without a reform of the UN Secu- demonstrating the linkages between social pro-
rity Council (UNSC), including an expansion in both gress, economic development and recovery from
permanent and nonpermanent categories of its the crisis, offers policy options adaptable to na-
membership, with increased participation of de- tional needs and circumstances. The Leaders also
veloping countries in both. Such reform is of the reaffirmed that their actions in response to the
utmost importance for the UNSC to reflect geopo- crisis are guided by the International Labour Or-
litical realities and to have the representativeness ganization (ILO) decent work agenda and the 2008
and legitimacy it needs to face contemporary chal- declaration on social justice for a fair globalization.
lenges. They committed to keep close coordina-
tion amongst the three countries and the broader Gender
UN membership to achieve substantial progress in
the intergovernmental negotiations on UNSC re- 8. The Leaders stressed the importance of empow-
form presently underway in New York. They re- ering women, increasing their participation in eco-
called that an overwhelming majority of the UN nomic activities and addressing the negative im-
member states agreed to proceed with a fifth pact of the international financial crisis on their
round of intergovernmental negotiations based on situation. They received with satisfaction a letter
a negotiating text. from the IBSA Women’s Forum and instructed all
areas of government involved in IBSA cooperation
5. The Leaders stressed the need to reform the to pay due attention to its recommendations. In
Bretton Woods Institutions in order to increase addition, the Leaders reiterated their support for
their effectiveness and enhance their accountabil- the full implementation of UN Resolution 1325
ity, credibility and legitimacy. They stressed the (2000). They also recalled the importance of for-
importance of increasing the role of developing mulating and implementing appropriate policies
countries in these institutions. and programs in accordance with the Convention
on the Elimination of all Forms of Discrimination
The social dimensions of globalization Against Women (CEDAW) and the Beijing Platform
of Action.
6. The Leaders reaffirmed that people must come
first in the formulation and implementation of Human Rights
public policies, allowing for fair, equitable and sus-
tainable development. They considered this issue 9. The Leaders attached the highest priority to hu-
a relevant priority in the context of an increasingly man rights issues and acknowledged the positive
globalized world, in which the economic and finan- advance represented by the creation and function-
cial crisis, and the restructuring of the interna- ing of the Human Rights Council. They noted the
tional financial architecture that ensued, directly importance of their close collaboration therein.
affect the welfare of people, particularly of vulner- They expressed their hope that the 2011 review
able groups. In this regard, they stressed the need will result in a further strengthening of the Coun-
to strengthen social policies and to fight hunger cil.
and poverty, especially in times of global economic
crisis. 10. They also emphasized the need to continue to
strengthen international human rights law, norms
7. The Leaders also reiterated the need to pro- and standards, particularly in the area of racism,
mote a job-intensive recovery from the downturn racial discrimination, xenophobia and related in-
and create a framework for sustainable growth. In tolerance, in accordance with the International
this context, they underlined their support for the Convention on the Elimination of All Forms of Ra-
global jobs pact, adopted by the 98th session of cial Discrimination.
the international labour conference, which, while
22 Pan Africa & World Review 2nd Quarter 2010
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Brasília Declaration
11. The Leaders welcomed the adoption of an IBSA ambitious action to reduce their greenhouse gas
proposal in the Human Rights Council related to emissions, and to provide adequate international
the importance of access to medicine (A/HRC/ financing and transfer of technology to support
RES/12/24). the efforts of developing countries to mitigate and
adapt the impacts of climate change.
Internet Governance
Sustainable Development
15. The Leaders reaffirmed their commitment to
working together towards a people-centered, in- 18. The Leaders stressed the importance of pro-
clusive and development-oriented Information moting sustainable development. They welcomed
Society and their agreement to continue to coordi- the resolution of the UN General Assembly to con-
nate positions for the World Summit on Informa- vene a Conference on Sustainable Development
tion Society (WSIS) follow-up mechanisms, as well (Rio+20) in Rio de Janeiro, in 2012. They called for
as in the other fora and organizations related to a comprehensive preparatory process, to ensure
the Information Society and Information and Com- that the Rio+20 Conference can adequately ad-
munication Technologies (ICTs). dress existing implementation deficits and emerg-
ing issues in sustainable development, with a view
16. The Leaders highlighted the importance of to further strengthening international cooperation
building a wide political conservation at interna- in this field.
tional level for making the global internet govern-
ance regime as multilateral, democratic and trans- Trade
parent as provided by the WSIS. They recognized
the advances reached by the multi-stakeholders 19. The Leaders stated that a positive outcome of
participants in the international dialogue on inter- the Doha Round of trade talks within the World
net governance in the last five years. They re- Trade Organization would be instrumental in eco-
called, with satisfaction, the fruitful coordination nomic recovery, particularly in job creation, as
amongst IBSA countries and the efforts of Brazil international trade experiences its sharpest de-
and India for hosting the second and third editions cline in many decades. A development oriented,
of the Internet Governance Forum, held in Rio balanced and successful conclusion of the Round
2007 and Hyderabad 2008, respectively. at an early date would bolster the credibility of
the multilateral trading system in the face of in-
Climate Change creased protectionist pressures. In this respect,
they expressed their concern over the excessive
17. The Leaders reiterated the importance of a demands made on some developing countries
positive result for the current climate change ne- without any indication of adequate additional con-
gotiations at the 16th Conference of the Parties to cessions in favour of developing countries.
the United Nations Framework Convention on Cli-
mate Change (UNFCCC) and the 6th Conference of 20. They recalled, with satisfaction, the First Trilat-
the Parties serving as the meeting of the Parties to eral MERCOSUR-SACU-India Ministerial Meeting
the Kyoto Protocol, in Mexico. They stressed that held in Geneva on November 30th, 2009 and ex-
the result should be reached in an inclusive and pressed their confidence that trade agreements
transparent manner, and should effectively ad- and ongoing negotiations between MERCOSUR
dress the challenge of climate change, in accor- and India, MERCOSUR and SACU and SACU and
dance with the principles of the UNFCCC, espe- India will lead to a future Trilateral Trade Arrange-
cially the principles of equity and common but dif- ment which would form the largest trade agree-
ferentiated responsibilities and respective capa- ment in the developing world.
bilities. They urged developed countries to take

23 Pan Africa & World Review 2nd Quarter 2010

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Brasília Declaration
Global financial and economic crisis tion. They reiterated that nuclear disarmament
and nuclear non-proliferation are mutually rein-
21. The Leaders welcomed signs of recovery from forcing processes, requiring continuous irreversi-
the global financial and economic crisis. They ble progress on both fronts.
however remained concerned over the conse-
quences of the crisis for the achievement of the Terrorism
Millennium Development Goals. They recalled the
vital contribution made by developing countries to 23. The Leaders condemned terrorism in all its
the global recovery. The Leaders underlined that forms and manifestations, committed by whom-
developed and developing countries should con- ever, wherever and for whatever purposes, as it
tinue to coordinate approaches and responses to constitutes one of the most serious threats to in-
the crisis in order to achieve sustainable and bal- ternational peace and security. They regretted and
anced recovery. They stressed that global eco- condemned the recent attacks in India that re-
nomic efforts have to respond to the needs of de- sulted in the loss of innocent lives. The Leaders of
veloping and low income countries, particularly in Brazil and South Africa offered condolences to the
Africa. The Leaders recognized that the impact of government and the people of India. The three
the crisis has been severe in many developing and Leaders also encouraged cooperation among
low income countries. They welcomed pledges to States and regional organizations. In this regard,
increase IMF resources and Multilateral Develop- they emphasized the urgent need to finalize the
ment Bank (MDB) lending, and called for the ur- Comprehensive Convention on International Ter-
gent implementation of all commitments in meet- rorism and called upon all states to cooperate in
ing the needs of low income countries, including resolving outstanding issues with the objective of
the Gleneagles commitment to double aid to Af- an expeditious conclusion of negotiations and
rica to $50 billion by 2010. They called for a sub- adoption of this Convention. They note that the
stantial increase in the capital base of the World fight against international terrorism must be done
Bank, so that it could sustain enhanced levels of with full respect to the UN Charter and Interna-
lending. They agreed to enhance cooperation be- tional Law.
tween India, Brazil and South Africa in relevant
international fora where recovery efforts are being
considered. Peace-building Commission Review

Disarmament and Non-Proliferation 24. The Leaders recognized the central role played
by the United Nations Peace-building Commission
22. The Leaders reaffirmed their commitment to (PBC) in the establishment of the foundations for
the goal of complete elimination of nuclear weap- sustainable peace in countries that are on the
ons in a comprehensive, universal, non- verge of or emerging from conflict and express
discriminatory and verifiable manner, and ex- their intention to join efforts and coordinate posi-
pressed concern over the lack of progress in the tions in the context of the PBC review process.
realization of that goal. They underlined the need
for reducing the role of nuclear weapons in strate- South-South Cooperation
gic doctrines and expressed their support for ef-
fective international agreements to assure non- 25. Welcoming the outcome of the UN High-Level
nuclear weapon States against the use or threat of Conference on South-South Cooperation (Nairobi,
use of nuclear weapons. The Leaders expressed December 2009), the Leaders concurred that
support for an International Convention Prohibit- South-South cooperation is a particular and essen-
ing the Development, Production, Stockpiling and tial instrument for development. Developing
Use of Nuclear Weapons, leading to their destruct- countries tend to share common views on na-
24 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum 4th Summit of Heads of State/Government

Brasília Declaration
tional development strategies and priorities Regional Issues
when faced with similar development chal-
lenges. In the three decades since the adoption Haiti
of the Buenos Aires Plan of Action, technical
cooperation amongst developing countries has 28. They reaffirmed their solidarity with the Hai-
evolved to embrace all forms of development tian people and with the Government of Haiti at
cooperation. In this context, developing coun- these most trying times. They called upon inter-
tries have designed and implemented technical national community to unite and coordinate,
cooperation projects, based on their own capa- under the Leadership of the United Nations and
bilities, aimed at the promotion of effective ac- of the United Nations Stabilization Mission in
tions and policies for social and economic pro- Haiti (MINUSTAH), to align strong international
gress. These include the sharing of knowledge support to the national priorities set forth by
and experiences, training, technology transfer, the Government of Haiti. They commended MI-
financial and monetary cooperation and in-kind NUSTAH for ensuring a secure and stable envi-
contributions. ronment in Haiti and effectively coordinating
international aid. They recognized that MI-
26. The Leaders recalled that South-South coop- NUSTAH has a critical role to play in the recon-
eration is a common endeavour of peoples and struction phase and reaffirmed their full support
countries of the South, a partnership among for the Mission and the United Nations agen-
equals, and must be guided by the principles of cies. They also commended the UN Develop-
respect for national sovereignty, national own- ment Programme (UNDP) for the results
ership and independence, equality, non- achieved so far in implementing “cash for work”
conditionality, non-interference in domestic programs.
affairs and mutual benefit. Therefore South-
South Cooperation should not be seen as aid, 29. The Leaders recalled the IBSA resolve to
nor should developing countries engaged in contribute additional US$ 2 million to the recon-
South-South cooperation be perceived as do- struction of Haiti. They agreed that the solid
nors and recipients. They expressed the view waste management project in Carrefour
that the United Nations system needs to better Feuilles, a successful initiative supported by
adapt to support the growth of South-South IBSA, in partnership with local authorities and
cooperation. UNDP, should be expanded to other areas in
Haiti, deepening on the expertise accrued since
The IBSA Facility Fund 2006. They also noted with appreciation that
the Haitians involved in the project got back to
27. They noted with appreciation that people work soon after the tragedy, testifying that the
and authorities of Haiti, Palestine, Guinea- dedication of the people of Haiti will be at the
Bissau, Cape Verde, Burundi and Cambodia are core of the reconstruction effort.
benefiting from projects being undertaken un-
der the IBSA Facility Fund. They reiterated the Chile
continued commitment of India, Brazil and
South Africa to each contribute with at least 30. The Leaders expressed their condolences to
US$ 1 million per year to the Fund. They also the Government and people of Chile for the
concurred that cooperation through the IBSA tragedy caused by the earthquake that struck
Fund is a concrete gesture reflecting their politi- South-Central Chile on February 27, 2010, and
cal determination to contribute to the develop- expressed their willingness to support the Chil-
ment of other developing countries in the spirit ean efforts for overcoming the effects of the
of South-South Cooperation. tragedy.
25 Pan Africa & World Review 2nd Quarter 2010
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Brasília Declaration
Iran nomic Communities (RECs) to implement. They
further took note that the NPCA’s mandate now
31. The Leaders recognized the right of Iran to de- includes the coordination and monitoring of such
velop nuclear programs for peaceful purposes in programmes and projects amongst the RECs and
keeping with its international obligations. They member states.
called upon Iran to fully cooperate with the Inter-
national Atomic Energy Agency (IAEA) and comply 34. The Leaders recognized that the further inte-
with the relevant UNSC resolutions. They reiter- gration of NEPAD as well as the augmented man-
ated the need for a peaceful and diplomatic solu- date of the NPCA will promote a more holistic and
tion of the issue. coordinated approach to infrastructural develop-
ment and in the growth and development of Af-
Afghanistan rica, which will benefit the attainment of NEPAD's
identified priorities in such sectors as ICT, energy,
32. The Leaders expressed concern at the continu- water and sanitation and transport.
ing deterioration of the military and political situa-
tion in Afghanistan, the growth of terrorism, in- Guinea-Bissau
cluding cross-border terrorism promoted by Tali-
ban and al Qaeda, and its links with international 35. The Leaders expressed their concern about the
terrorism. They reiterated, in this context, that a recent military incidents in Guinea-Bissau. They
coherent and a united international commitment, urge the military and political leadership to uphold
both in its developmental and security/military the constitutional order and resolve differences
aspects, remained of paramount importance. In through peaceful dialogue in order to ensure the
this context, they also emphasized the need to progress recently achieved by Guinea-Bissau in
strengthen the Afghan National Security Forces. the ongoing process of consolidation of peace and
They agreed to continue to cooperate and coordi- democracy. The Leaders hope that these events
nate their efforts to impart greater strength to the do not jeopardize the engagement of international
process. They reaffirmed their commitment to a partners in the International Donor Conference
democratic, pluralistic and stable Afghanistan. expected to take place in 2010. They highlighted
They underlined the centrality of the regional as- the role of the United Nations Peace-building
pect in the reconstruction and development proc- Commission, and confirmed their commitment to
ess in Afghanistan. The Leaders condemned the continue to support, through concrete actions of
terrorist attack targeting Indian humanitarian and cooperation, the efforts of the Guinean Govern-
development workers in Kabul on February 26, ment to consolidate the political and institutional
2010. stability, building the basis for sustainable socio-
economic development. In this context, they took
NEPAD/AU structure note with satisfaction that the IBSA Project in
Guinea-Bissau has entered its second phase, dis-
33. The Leaders welcomed the 2010 decision of tributing tools for farmers and organizing literacy
the AU Assembly to further integrate the New classes for women living in rural areas, in coordi-
Partnership for Africa's Development (NEPAD) into nation with national authorities.
the AU structures and the re-naming of the NEPAD
Secretariat to the NEPAD Planning and Coordinat- Republic of Guinea
ing Agency (NPCA). The Leaders took note that the
NPCA will focus on taking further the programmes 36. The Leaders acknowledged progress made by
of the AU by translating decisions of the AU As- the Republic of Guinea in its efforts towards nor-
sembly and the AU Executive Council into tangible malization of the political environment since the
projects and programmes for the Regional Eco- signing of the Ouagadougou Accord on 15 January
26 Pan Africa & World Review 2nd Quarter 2010
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Brasília Declaration
2010. They welcomed the appointment of the the Round Table on Inter-governmental Rela-
Transitional Authority led by a civilian Prime Minis- tions and Local Government Dialogue, which lay
ter. The Leaders encouraged the Transitional Au- roots in the three societies. The Leaders also
thority to hold the Presidential elections, as stipu- noted the cooperation among the three coun-
lated in the Ouagadougou Accord, scheduled for tries in the format of the Tri-Nations Summit of
27 June 2010 to be followed by the second round Small, Micro and Medium Enterprises.
of the Presidential elections on18 July 2010.
40. The Leaders welcomed the signing of
Madagascar Memoranda of Understanding on Science and
Technology and Solar Energy. They noted with
37. They noted with concern the current stalemate appreciation the adoption of the “IBSA Social
in the negotiation process to return Madagascar Development Strategies” and of the “Future of
to constitutionality and endorsed the continuance Agriculture Cooperation in IBSA”.
of the SADC Mediator in his efforts towards the
restoration of constitutional order and good gov- IBSA Satellites
ernance in Madagascar, through an inclusive,
transparent and credible dialogue. The Leaders 41. The Leaders decided to the early develop-
called for the establishment of a Transitional Gov- ment of satellites in the areas of space weather,
ernment and the holding of all inclusive, transpar- climate and earth observation. These satellites
ent, free and fair elections as envisaged by the will address common challenges in climate stud-
Maputo and Addis Ababa Agreements. ies, agriculture and food security. The IBSA mi-
cro satellites aim to promote and strengthen
Sectoral cooperation and People-to-People space programs amongst the three countries.
Final remarks
38. The Leaders noted that besides promoting in-
creased consultation and coordination on global 42. They affirmed the importance of encourag-
issues among the three countries, IBSA also pro- ing the dialogue among civilizations, cultures,
vides for important sectoral cooperation and pro- religions and peoples. In this respect, they sup-
motion of people-to-people contacts. The Leaders ported the “Alliance of Civilizations”, a United
welcomed the effective interaction among special- Nations’ initiative aimed at building bridges,
ists from the three countries, within the working mutual knowledge and understanding around
groups on Agriculture, Environment & Climate the world. They commended the Brazilian deci-
Change, Culture, Defence, Education, Energy, sion to host, in Rio de Janeiro, on May 2010, the
Health, Human Settlements, Information Society, 3rd Global Forum and confirmed their intention
Public Administration, Revenue Administration, to be represented at an appropriate high level.
Science & Technology, Social Issues, Tourism,
Trade & Investment, and Transport. Their activities 43. The Leaders expressed confidence in the
have already resulted in the signing of a number of success of the FIFA 2010 World Cup in South
Memoranda of Understanding. Furthermore, Africa, of the 2010 Commonwealth Games in
seminars and workshops have been regularly un- New Delhi, of the FIFA 2014 World Cup in Brazil
dertaken and proven beneficial. and of the 2016 Olympic and Paralympic Games
in Rio de Janeiro. They recognized that hosting
39. The Leaders noted with appreciation the or- these events reflects the positive momentum of
ganization and the outcome of the Women’s Fo- developing countries, and of the three countries
rum, the Parliamentary Forum, the Business Fo- in particular, and that they are potentially a tool
rum, the Editor’s Forum, the Academic Forum and for their social and economic development.
27 Pan Africa & World Review 2nd Quarter 2010
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Brasília Declaration Social Development Strategies

44. They decided that the VII Trilateral Commis- processes. What is at stake is quality of life with a
sion will be held in India by the end of 2010. They sense of dignity. According to the 1995 United
also decided that South Africa will host the VIII Nations' World Summit for Social Development,
Trilateral Commission and the V IBSA Summit of "the ultimate goal of social development is to im-
Heads of State/Government towards the end of prove and enhance the quality of life of all peo-
2011. ple." India, Brazil and South Africa have a number
of striking similarities, such as sharing a commit-
45. The Prime Minister of India and the President ment to democratic values and the building of eq-
of South Africa expressed their gratitude to the uitable and culturally heterogeneous societies.
President and the people of Brazil for successfully They also face common challenges such as high
convening the 4th IBSA Summit. levels of poverty and inequality, unemployment
and underemployment, and exclusion of the ma-
Social Development jority from the benefits of social and economic
development. The limited participation of civil so-
Strategies ciety, particularly community-based organizations,
in development processes is also a challenge. In
A paper from the India-Brazil-South Africa Dia- many instances, this factor is to be changed not to
logue Forum hinder the IBSA countries` achievement of partici-
The post-colonial era has seen a number of coun- patory democracy and effective governance at the
tries acknowledging the principle of enhancing the local level.
standard of living of their people as an objective of Some conclusions on how to tackle these
state policy. Although it is becoming clear that challenges have already begun to emerge from
economic growth is important and can be attained the interchanges that have been taking place.
by different means, growth is unlikely to be sus- Firstly, there is the recognition that inequality and
tainable in the long term unless all sections of soci- structural poverty are inter-connected and pose
ety derive benefits from and develop a stake in the obstacles for the advancement of social develop-
growth process. To date, strategies aimed solely at ment. Secondly, there is a need for a critical in-
promoting the enhancement of productive capac- volvement of the state, because it is only the state
ity have not been fully effective in creating ade- which can marshal the necessary resources and
quate numbers of jobs or in supporting social de- coverage to reach the weakest elements of our
velopment for the majorities in India, Brazil, or societies. Related to this, there is also a clear
South Africa. The three countries have thus con- sense that we must consider some of the basic
cluded that what is needed is not solely growth in principles underlying a welfare state as being ap-
productive capacity, but also social development. plicable to our societies. Thirdly, effective social
Social development is critical for sustaining development policies must be participatory in
the long-term viability, not only of economic character and must involve all elements of socie-
growth, but also of democracy itself. This under- ties, from private sector to civil society, groups
standing has underpinned political developments and communities.
in recent times in these three major democracies. Fourthly, given the diversity of objectives and
Social development does not simply involve quan- institutions involved in effective social develop-
titative advances but also incorporates critical nor- ment policy, it is necessary that any strategy for
mative elements. On the one hand, it includes a social development take advantage of both com-
focus on addressing problems of poverty, and ex- plementarities and synergy across different poli-
panding access to quality education, and health- cies. It is important that each one of the agencies
care and, on the other hand, it also involves ad- involved in the formulation of these policies be
dressing issues of social exclusion such as discrimi- aware of their integrative character and function
nation and lack of voice in social and economic accordingly. Integrated service delivery must be

28 Pan Africa & World Review 2nd Quarter 2010

International/IBSA Dialogue Forum 4th Summit of Heads of State/Government

Social Development Strategies

promoted to tackle the multiple causes of social ing can be identified as common pillars of the so-
problems and advance the human development cial development strategies of the IBSA countries:
agenda. Integrated efforts are required to pro-
mote inclusion of the poor and vulnerable includ- • Moving from flagships to comprehensive so-
ing those made poor due to spatial/geographic cial protection
segregation and migration status. Fifthly, the con-
cept of social development also underlines the Increasingly, the three countries are moving to-
importance of acting directly at the bottom of the wards providing social protection throughout the
social pyramid, where hunger, disintegration of life cycle through a combination of social insur-
families and lack of opportunities are prevalent. A ance, social assistance policies and access to social
comprehensive social protection network could services. Such commitment is exemplified by large
provide the basis for integration of the families scale programmes for non-contributory social
that are most vulnerable - e.g., through policies pensions and benefits for the elderly and the dis-
directed at income guarantee, food and nutrition abled such as the Old Age Pension and disability
security, and social assistance so that all families grant in South Africa, the Programa de Benefício
have access to opportunities of inclusion and de- de Prestação Continuada (BPC) in Brazil and the
velopment. There is also a special need to reform National Old Age Pension Scheme (NOAPs) in In-
education, health and housing policies in order to dia. Similarly, cash transfer schemes to protect
broaden access and provide for the development children in vulnerable households like Bolsa
of adequate social infrastructure and delivery of Família in Brazil, the Child Support Grant in South
quality services. Africa, and support through the Integrated Child
Finally, social policies are not formed in vac- Development Services Scheme in India are also
uum, nor do they emerge as fully developed at the important policy tools to help the future genera-
time of their initial formulation. Effective policy tions to achieve better human and developmental
development can be characterized as involving a outcomes. While comprehensive social protection
process of interaction between key participants is recognized as a key element for a more inclusive
and as a process of iteration based on learning and society, at present, the three countries are more
feedback from pilot/on-going implementation. In effective in some areas of support as opposed to
this context we recognize the importance of utiliz- others and the challenge for each country is to
ing research based evidence in the formulation, strengthen synergies between its major flagship
reform and implementation, and in the establish- programmes and to address gaps in coverage and
ment of linkages between different elements of focus.
social development strategies.
•Addressing Vulnerabilities and Fostering Social
Elements for Integrated IBSA Strategies and Economic Inclusion

Despite their similarities, India, Brazil and South The countries are also engaged in promoting liveli-
Africa have different cultures, histories and social hood and economic opportunities to vulnerable
compositions. The ongoing process of discussing groups. Policies to promote and support people`s
and exchanging experiences has brought out inno- initiatives like microcredit, financial inclusion, skill-
vative approaches that each of us has adopted in building programmes and, more recently, govern-
dealing with the issues of social development, so- ment initiatives that recognize the need to focus
cial protection, public health, employment, pov- on provision of jobs have become important ele-
erty alleviation from which very important lessons ments of social development strategies in the
can be drawn. Drawing on the experiences and three countries. Moreover, in some of the coun-
innovations taking place in the three countries – tries, these policies are being implemented in a
some of which are highlighted below, the follow- way that guarantees that segments of the popula-
29 Pan Africa & World Review 2nd Quarter 2010
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Social Development Strategies

tion who face extra vulnerability due to gender, these services. Important innovations are taking
ethnicity and economic distress receive special place in the health education and health sectors of
attention in the design and implementation of the three countries. In the health sector, there is
such programmes. The National Rural Employment Brazilian experience in ensuring affordable access
Guarantee Programme (NREGp) in India is an ex- and provision of HIV/AIDS drugs`; India`s initia-
ample of this trend. The programme recognizes tives in the context of education and health in-
the right to work and has embedded in its design clude the Sarva Shiksha Abhiyan Scheme (SSA) - a
measures to make sure that disadvantaged seg- national flagship programme which aims to pro-
ments (including women) in society fully benefit vide useful and relevant elementary education for
from the programme. Moreover, NREG pro- all children in the 6-14 age groups by 2010 - and
grammes also help to build infrastructure at the The National Rural Health Mission (NRHM), which
community level that will provide a second round is a government scheme that aims at providing
of benefits to both the direct beneficiaries as well valuable healthcare services to rural households.
as non-beneficiaries of the programme. The Ex- The latter programme includes a focus on provid-
panded Public Works Programme (EPWP) has ing every village in the country with a trained fe-
helped South Africa to tackle the high unemploy- male community health activist - `ASHA` or Ac-
ment rates and has been innovative in the way it credited Social Health Activist - who is selected
goes beyond physical infrastructure to also focus from the village itself and accountable to it and is
on social services and care economy (e.g. Home trained to work as an interface between the com-
Community Based Care (HCBC) and Early Child- munity and the public health system.
hood Development (ECD). In its second phase, the
EPWP is expected to further expand ECD and HCBC Ensuring Food Security
services and to move into other activities such as
school nutrition, voluntary counselling and testing The countries recognize that food security is a pre-
(VCT), school caretakers, etc. as well as explicitly requisite for social development, a fact that was
employing and assisting low-income women in brought home by the recent trends involving dra-
tasks which are currently undertaken as unpaid matic food price rises and price variations. Food
work). In Brazil, credit to small business has security is a major policy and political issue in all
boomed recently specially in the poorest areas, three countries. In India, current food security
and the integration of the job opportunities cre- measures include a targeted food support pro-
ated by the Accelerating Growth Plan (PAC) and gramme, the TPDS, which provides for different
the adult population in beneficiaries families of levels of subsidy according to the following three
Bolsa Familia, through training and job placement categories of households: APL (above poverty
(PLANSEQ), hint at a promising area of integration line), BPL (below poverty line) and Antodaya (ultra
of both social protection and economic inclusion poor) households, and the National Programme of
programmes. Nutritional Support to Primary Education
(NPNSPE) commonly known as the Mid Day Meal
• Investing in human capital and ensuring access Scheme. A draft Food Security Bill is under discus-
to basic services sion; in South Africa, the school feeding pro-
grammes constitute an important initiative. In Bra-
The three countries are committed to broadening zil the Hunger Zero strategy, an umbrella under
access to education, health, housing, water and which several programmes generate synergies to
sanitation. The countries recognize that these di- guarantee food security has brought to the front
mensions are correlated with income, but cannot stage the discussion on food security. It is also
be simply tackled only with growth. There is need worth mentioning the potential links that can be
for a strong state-led investment policy to guaran- generated between food security programmes
tee supply, inclusive access and the quality of and purchase of the produce of small landowners,

30 Pan Africa & World Review 2nd Quarter 2010

International/IBSA Dialogue Forum 4th Summit of Heads of State/Government

Social Development Strategies

an integration that has the potential to support intersection of poverty and the environment. Risks
social and economic inclusion, e.g. see Brazil`s Na- posed to local communities by global warming are
tional Program for Strengthening Family Agricul- also attracting attention as is the need to explore
ture (PRONAF) coupled with the Purchase of Food alternative sources of energy. Facilitating adapta-
from Family Agriculture (PAA) program where the tion and mitigation through social protection, and
food purchased is sent to food insecure people identifying opportunities for strengthening liveli-
and used in food programs (such as School Meals) hood diversification are emerging as priorities in
so that the program addresses security of small many areas. India`s National Rural Employment
farmers, food provision and nutrition security in Guarantee Act (NREGA) and South Africa`s Ex-
tandem. panded Public Works Program (EPWP) both have
strong natural resource management components
Promoting Civil Society Participation and Deepen- with a view to either complementing the focus of
ing Democracy rural development strategies (e.g. increasing agri-
cultural productivity and livelihood creation in In-
The countries are conscious of the need to ensure dia) or addressing various environmental and
effective partnerships with civil society in policy MDG-related issues. In the context of emerging
development and strengthen accountability in im- environmental conservation and climate change
plementation for effective service delivery through concerns, job creation at the intersection of the
institutionalization of civil society forums. They environmental conservation, natural resource
commit to participatory democracy and effective management, and poverty reduction are an im-
governance at local levels through identification portant emerging area of focus (i.e., as green jobs
and implementation of policy innovations such as and economy) for the three countries to explore.
the Right to Information, institutionalized social In the context of alternative bio-energy options,
audits and local participatory planning in relation the focus is often on the adoption of large-scale
to NREGP in India; and strengthening the institu- mechanized farming practices but such ap-
tional capacity of community based organizations proaches often exclude small-scale farmers from
to act, as in South Africa`s newly launched Com- participating in the emerging bio fuels markets,
munity Works Program (CWP), which uses com- thus potentially exacerbating their poverty and
munity participation to identify `useful work` and social exclusion. Brazil`s Social Fuel Stamp pro-
priorities which are multi-sectoral and contribute gramme, which attempts to address the question
to public/community goods and services. Also Bra- of social sustainability` of bio fuels by providing
zil`s participatory budget experiences and the Self tax incentives for biodiesel producers to purchase
Help Groups (SHGs) - Banks linkage Programme in feed-stocks from small family farms in poorer re-
India which aims at providing a cost effective gions of the country, is an example of policy that
mechanism for providing financial services to the takes this issue into account.
'unreached poor' are examples of this commit-
ment. This process seeks to improve participation • Embracing local knowledge and culture
of Community Based Organizations in decision
making and ensure that voices of the poor are Another relevant pillar deals with the promotion
heard, access to information is improved and integration of local knowledge and culture in
(including language access) and that bridges are the strategies for eradication of poverty and hun-
built between macro level initiatives and local eco- ger, as well as in strategies to address climate
nomic and social development priorities. change and biodiversity issues. The importance of
incorporating local culture and knowledge in sec-
•Working towards sustainable development tor-specific programmes on education, health,
agriculture practices and water management -
Over the past few years there has been growing both for the benefit of local communities and as
awareness about the need to address issues at the valuation of their contribution to continued global
31 Pan Africa & World Review 2nd Quarter 2010
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Social Development Strategies IBSA Agriculture Cooperation Prospects

cultural diversity - is being explored in the three tems dominated by ad hoc transactions are being
countries. replaced by coordinated, integrated marketing
The programmes highlighted under these systems such as supermarkets, retail chains and
seven pillars as well as other programmes not contract production. Further, with unfolding of
mentioned here have been offering a great oppor- globalization a shift is taking place in agricultural
tunity for each of the countries to strengthen the exports, with increasing share of high-value and
development of integrated strategies through a processed food products.
comparative learning and exchange process. This Though expanding market is an opportunity
learning process encompass a better understand- for farmers to switch from subsistence towards
ing of the functioning of specific programmes in commercial/industrialized agriculture, the transi-
the particular country context and identifying the tion is unlikely to be smooth. Increasing demand
challenges they face in linking supply (programme for food safety and quality is compelling retailers
delivery and quality) and demand components. and exporters to enforce grades and standards
Most important, it offers a platform to reflect on right from genetics to end users. Farmers will be
how some programme components developed in exposed to more global competition; access to
a specific country context could be adapted to global technology will be more difficult than in the
other countries context to improve service deliv- past because of increasing privatization of agricul-
ery and the effectiveness of social development tural research and stringent intellectual property
programmes in mitigating poverty and inequality. regime. The population in developing countries
This process is to benefit not only the three coun- continues to grow, though at a decelerating rate.
tries, but also third countries interacting with IBSA Most of this growth will occur in urban popula-
countries through development cooperation pro- tion, implying an increasing demand for land and
jects. The promotion of social equity and inclusive water for non-agricultural uses.
growth through effective implementation of gov- The changing economic environment – driven
ernment strategies is a goal for IBSA that must be by both internal and external forces, suggest that
taken into account in all occasions. the agricultural sector in developing countries is
likely to come under significant adjustment pres-
sure. In a fast changing scenario, there is an in-
Future of Agriculture Co- creasing concern about the likely changes in the
Operation in India, Brazil and livelihoods of farmers especially small-scale farm-
South Africa (IBSA) ers who earn their livelihoods by cultivating tiny
pieces of land.
In 2008, agriculture in India, Brazil and South
1. Background Africa was at different stages of development. The
agricultural sector contributes about 18 percent to
Market liberalization and globalization have led to the Gross Domestic Product (GDP) in India, 5.5%
significant changes in agriculture and agri-food percent in Brazil and 3 percent in South Africa.
markets in developing countries including India, Though consistent with the theory of economic
Brazil and South Africa. The food basket is chang- development, share of agriculture in GDP has
ing rapidly, away from staple food grains towards been declining in these countries, agriculture re-
high-value fresh and processed food commodities mains an economic sector from the perspective of
with increasing demand for safe and quality food. employment especially in India. About 52 percent
In response, the agricultural production portfolio of the total population in India, 14 percent in Bra-
too is changing rapidly, with a higher growth in zil and 13 percent in South Africa depends on agri-
production of high-value processed food products. culture for livelihood. The per capita arable land
The changing consumption and production pat- per agricultural person is the lowest (0.28ha) in
terns are being accompanied by changes in agri- India, followed by Brazil (2.2ha) and South Africa
cultural marketing systems. The traditional mar-
keting sys- 32 Pan Africa & World Review 2nd Quarter 2010
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IBSA Agriculture Cooperation Prospects

(2.5ha). In Brazil about 50 percent [of the] farms cultural co-operation in some of the important
are of less than 10ha in size (as against average areas has been tentatively indicated in the follow-
farm size of 68ha) sharing about 3 percent of the ing areas.
land. On the other hand, in India farms of above
10 ha are rare. Over 86 percent of the farms in 2.1 Food Processing: There is a tremendous poten-
India are of less than 2 ha in size, controlling 45 tial for cooperation in the food processing sector.
percent of the land. Also, there is considerable Brazil has distinct mileage in the food processing
difference in per capita income across these coun- sector and known for its capabilities in the food
tries. Per capita income in South Africa is processing. Brazil developed a wide variety of
about three times more and in Brazil bout two value added products from root crops like cassava
times more than in India. The head-count poverty and other horticultural crops. South Africa also
is about 22 percent of the population in India and has a highly developed agribusiness and food
Brazil, and around 40 percent in South Africa. processing experience and expertise in a wide
Despite its declining importance in economy, range of sectors. IBSA members need to share
agricultural sector’s performance has been satis- these capabilities.
factory in India and Brazil, where it grew at an an-
nual rate of 3 and 4.1 percent respectively during 2.2 Food Safety Measures: IBSA countries need to
1991-2004. In South Africa the growth was 2.7 share their expertise, capabilities and experiences
percent. Growth in agricultural sector in Brazil in complying with Sanitary and Phyto-sanitary
seems to be export-led. Brazil’s share in global ag- (SPS) measures applicable to food products par-
ricultural trade has increased from 2.3 percent in ticularly in the developed country market. They
1991 to 4.8 percent in 2005. India has also consoli- could from a common strategy for compliance
dated its position by increasing its export share with SPS internationally agreed measures for
form 0.9 to 1.2 percent during this period, while greater access to global food markets. Joint strate-
the share of South Africa has remained almost un- gies should be developed to resist the often im-
changed at 0.7 percent. As such agricultural ex- posed import restrictions on export from IBSA on
ports comprise 32 percent of the merchandise ex- the ground of fictitious SPS issues.
ports in Brazil, 12 percent in India and 8 percent in Further, India, Brazil and South Africa have
South Africa. their own import regulatory measures based on
standard and conformity assessment procedures
2. Potential Areas for future Agriculture Coopera- including the health and safety. Mutual recogni-
tion in IBSA tion arrangements for standards and conformity
assessment procedures between these countries
This backdrop highlights the importance of agricul- may facilitate reduction of non-tariff barriers to
tural co-operation to reduce poverty within IBSA. trade. This calls for assessment of the present
There are significant synergies between these situation with respect to the compatibility of each
countries for agricultural co-operation as they other’s standards and conformity assessment ac-
have developed substantial capabilities in agricul- tivities. The export inspection bodies need to work
tural sector. IBSA countries can reinforce their together. A study on the possibility of harmoniza-
strength in agricultural sector by synergizing their tion and mutual recognition of conformity assess-
complementarities. To exactly pinpoint the areas ment procedures may be undertaken.
of future co-operation among IBSA countries, a
detailed empirical study would be required. The 2.3 Promoting Joint Agricultural R&D: India, Brazil
study can highlight the synergies, complementari- and South Africa have developed significant tech-
ties and comparative advantages of each country. nological capabilities in different fields of agricul-
It can also highlight the common concerns for agri- tural research. Joint research on products of com-
cultural sector at global level, especially trade and mon interest and exchange of their genetic re-
food safety aspects. However, the future of agri- sources could be attempted. IBSA co-operation
33 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum 4th Summit of Heads of State/Government

IBSA Agriculture Cooperation Prospects

should facilitate in taking these capabilities to 3. Objectives:
new heights for the benefit of the farming com- 3.1 Examine the status, past trends and the fac-
munity in these countries. New issues are emerg- tors underlying growth of agriculture includ-
ing (for instance climate change, emergence of ing livestock in IBSA.
GMO crops, increasing role of biotechnology and
nano-technology), which may have far reaching 3.2 Map possible futures for agriculture in IBSA
implications in the agricultural sector. A common through scenario analysis in terms of its likely out-
strategy for tackling such issues may be devel- comes for poverty, equity, trade and sustainabil-
oped. An IBSA fund for promoting joint Agricul- ity.
tural R&D could be set up to initiate such activi-
ties. For smooth flow of agricultural technology 3.3 Draw implications of the possible agricultural
between IBSA, an Agricultural Technology Transfer futures for agricultural research and development,
network could be set up, which can pool informa- domestic market and trade policies, institutional
tion on the availability of agricultural technologies developments, etc.
in the region.
3.4 Identify the areas for mutual cooperation for
2.4 ICTs for agricultural development: ICTs are be- sustainable agricultural development in IBSA
coming important for transmission of agricultural countries.
technologies to the farmers’ field. India, Brazil and
South Africa witnessed different experiences and 4. Approach:
developed different capabilities in this area. For Strategic intervention for improving efficiency,
harnessing the full potential of ICTs for sustainable equity and sustainability in agricultural production
agricultural development, a forum of different systems needs a holistic approach considering ag-
stakeholders like private sector, civil society or- riculture as a portfolio rather than its sub-
ganizations and government for sharing experi- components or activities independently. This ap-
ences/expertise and strengthening capabilities in proach coupled with some assessment of the ma-
this area should be created. jor driving forces and anticipated changes, e.g.
increasing energy demand and water scarcity, and
2.5 Capacity building and exchange of human re- underlying uncertainties like climate change and
sources: The strategies for enhancing human re- impact of international trade and other agree-
source capabilities among these countries should ments will determine the likely shape of agricul-
also get priority attention. These countries have ture in future. These forces can be captured
developed capabilities in different fields of agricul- through scenario planning analysis which will pro-
ture. The exchange of their expertise and experi- vide broad futures for agriculture over the next 25
ences will help in sustainable agricultural develop- years or so. What will be the shape of agriculture
ment in these countries. In this context specific and how the developments in the countries like
need- based training programs, organization of India, Brazil and South Africa may influence each
seminars/workshops on topical issues would be of other’s agriculture and thereby economic devel-
great help in strengthening the human resource opment?
development for agriculture sector. The scenarios are not intended to predict fu-
The above listed areas for future agricultural ture, but to vision the possible shapes of agricul-
cooperation are only indicative and actual areas ture in the long-run. The scenarios are based on
along with possible mechanisms would emerge past drivers of agricultural growth, economic and
from the proposed study. In the light of the impor- social change and on subjective assessment on the
tance of the agriculture sector and the potential emerging social, economic, institutional and tech-
for agricultural cooperation in different areas nological trends and uncertain events like climate
among these countries, the study is proposed with change. An exploration in the future thus can con-
the following objectives. tribute towards planning for the future at present.
34 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum 4th Summit of Heads of State/Government

The India-Brazil-South Africa Dialogue Forum

Established in June 2003, IBSA is a coordinating Communiqués and declarations that con-
mechanism amongst three emerging countries, solidate common positions about global issues
three multiethnic and multicultural democracies, have been issued at the Summits and at the
which are determined to contribute to the con- Joint Commissions, as well as in occasions when
struction of a new international architecture, to Foreign Ministers meet at the margins of the
bring their voice together on global issues and to UN General Assembly.
deepen their ties in various areas. IBSA also opens The work of monitoring and coordinating
itself to concrete projects of cooperation and part- the IBSA activities is a responsibility of Senior
nership with less developed countries Officials of the Foreign Ministers, known as Fo-
The establishment of IBSA was formalized by cal Points.
the Brasilia Declaration, which mentions India, In summary, the progress of the activities
Brazil and South Africa democratic credentials, can be divided into four tracks:
their condition as developing nations and their I. Political Coordination
capacity of acting on a global scale as the main II. Sectoral Cooperation, through 16 Working
reasons for the three countries to come to- Groups
gether. Their status as middle powers, their com- III. IBSA Fund for Alleviation of Poverty and
mon need to address social inequalities within Hunger
their borders and the existence of consolidated IV. Involvement of other actors beyond the
industrial areas in the three countries are often Executive, e.g. :parliamentarians, Constitution
mentioned as additional elements that bring con- courts, civil society, businessmen and opinion
vergence amongst the members of the Forum. makers.
IBSA concluded its first round of Summits of
Heads of State and Government Summits in I. Political Coordination
2008. Over the years, IBSA has become an um-
brella for various initiatives, both in the diplomatic The IBSA Forum has achieved important results
field and in Public Administration sectors. Thus, in terms of political cooperation. So far, three
the Group has also become an instrument for con- declarations of Heads of State and Government
necting India, Brazil and South Africa at all levels, and thirteen Ministerial Communiqués (six of
aiming not only to increase these countries’ pro- the Joint Commissions and other seven from ad
jection on the international scenario but to hoc meetings), have been issued. They consti-
strengthen the relations amongst themselves. tute a repository of common positions about a
IBSA keeps an open and flexible structure. It wide range of global issues.
does not have a headquarter nor a permanent ex-
ecutive secretariat. At the highest level, it counts Meetings amongst IBSA representatives have
on the Summits of Heads of State and Govern- also been held at the margins of multilateral
ment, whose last edition occurred on April 15th, forums (e.g. Human Rights Council, WTO, WIPO,
2010, in Brasília. Additionally, Foreign Ministers Antarctic Treaty, Conference for the Recon-
meet about once a year to preside the Joint Com- struction of Palestine), as a means to reinforce
missions of the Forum. Six have taken place up to the positions of mutual interest.
this date:
- 1st: March 5th, 2004, in New Delhi; II. Sectoral Cooperation
- 2nd: March 3rd, 2005, in Cape Town;
- 3rd: March 30th, 2006, in Rio de Janeiro; The following Working Groups were established
- 4th: July 16th and 17th, 2007, in New Delhi; with the objective of deepening the mutual
- 5th: May 11th, 2008,in Somerset West; and knowledge and exploring common points of
- 6th: August 31st to September 1st, 2009, in interest on sectoral areas:
Brasília. - Public Administration;

35 Pan Africa & World Review 2nd Quarter 2010

International/IBSA Dialogue Forum

The India-Brazil-South Africa Dialogue Forum

- Revenue Administration; *To promote South-South dialogue, cooperation
- Agriculture; and common positions on issues of international
- Human Settlements; importance;
- Science and Technology (includes Antarctic *To promote trade and investment opportunities
Research); between the three regions of which they are part;
- Trade and Investment; *To promote international poverty alleviation and
- Culture; social development;
- Defense; *To promote the trilateral exchange of informa-
- Information Society; tion, international best practices, technologies and
- Social Development; skills, as well as to compliment each others com-
- Education; petitive strengths into collective synergies
- Energy; *To promote cooperation in a broad range of ar-
- Environment and Climate Change; eas, namely agriculture, climate change, culture,
- Health; defence, education, energy, health, information
- -Transport; and society, science and technology, social develop-
- Tourism. ment, trade and investment, tourism and trans-
Within the Working Groups, agreements
and Memoranda of Understandings were Origin: Brasilia Declaration
signed, in order to legally support the coopera- The birth of IBSA officially known as IBSA Dialogue
tion. As of 2010, twelve of such documents Forum was a sequel of Brasilia Declaration,
were in force: adopted by Ministers Nkosazana Dlamini Zuma
- Public Administration and Governance; from South Africa, Celso Amorim from Brazil and
- Revenue Administration; Yashwant Sinha from India in 2003. The three lead-
- Biofuels; ers had met on June 6, 2003, following ongoing
- Cultural Cooperation; consultations and after the respective Heads of
- Superior Education; State and/or Government of their countries held
- Social Issues; conversations during the G-8 meeting, in Evian.
- Eolic Energy;
- Health and Medicine; New Delhi Agenda for Cooperation
- Human Settlements; First Meeting of the Trilateral Commission of the
- Environment; IBSA Dialogue Forum was held in New Delhi on 4th
- Civil Aviation; and and 5th March 2004. It is known as New Delhi
- Woman Development and Gender Equality. Agenda for Cooperation.

Furthermore, further five Memoranda Cape Town Ministerial Communiqué

were signed and are currently subject to ratifi- Second Meeting of the Trilateral Commission of the
cation: IBSA Dialogue Forum was held at Cape Town from
- Merchant Shipping and other Maritime Trans- 10-11 March 2005. This was Cape Town Ministerial
port; Communiqué.
- Information Society; Rio de Janeiro Ministerial Communiqué
- Agriculture; Third Meeting of the Trilateral Commission of the
- Tourism. IBSA Dialogue Forum was held in Rio de Janeiro on
30 March 2006. This was Rio de Janeiro Ministerial
Objectives: Communiqué.
The main objectives of the IBSA Dialogue Forum
are as follows:
36 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum

Summits: Pan Africa & World Review

♦ 1st IBSA summit was held in September, 2006
at Brasilia, Brazil. Quarterly Review of Global Africa and
♦ 2nd IBSA summit was held in October, 2007
at Pretoria, South Africa World History in the Making
♦ 3rd IBSA summit was held in October, 2008 at
New Delhi, India Africa, the World and You
♦ 4th IBSA summit was held on April 15, 2010 at
Brasília, Brazil.

Trade Volume:
Trade between IBSA members amounted to
around US$11.9 billion in 2009

Discussions :
Discussions were held on various global issues viz.
Iran and nuclear weapons, the Middle East con-
flict, the furtherance of IBSA, reconstruction of
Haiti through the IBSA Fund for Alleviation of Pov-
erty and Hunger, and cooperation in science and

Leaders highlighted that the three countries’ com-

mitment to democratic values, inclusive social de-
velopment and multilateralism constitutes the ba-
sis for their growing cooperation and close coordi-
nation on global issues

IBSA Satellite:
India, Brazil and South Africa will explore the feasi-
bility of launching an IBSA satellite. IBSA satellite
was on the agenda of the Grouping of these coun-
tries. The data to be supplied by this satellite will
be very useful for all the three countries as they
are fastest developing and emerging economies.

The IBSA Facility Fund:

The leaders of the IBSA reiterated the continued
commitment of India, Brazil and South Africa to
each contribute with at least US$ 1 million per
year to the Fund. The people and authorities of
Haiti, Palestine, Guinea-Bissau, Cape Verde, Bu-
rundi and Cambodia are benefiting from projects
being undertaken under the IBSA Facility Fund.

Next IBSA Summit:

South Africa will host the VIII Trilateral Commis-
sion and the V IBSA Summit of Heads of State/
Government towards the end of 2011.
37 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum

IBSA Ministers Joint Communiqué on the Situation in

the Middle East
On the occasion of the Fourth IBSA Summit,
in Brasilia, on April 15th 2010, the Ministers
of Brazil, India and South Africa met with the
Palestinian Foreign Minister Riad Malki.

2. The Ministers indicated that India, Brazil

and South Africa, as members of the IBSA
Forum, are convinced that a comprehensive
peace in the Middle East is crucial, not only
for the peoples and countries of the region,
but also for the international peace and se-

3. In line with the relevant UN Resolutions,

the Madrid principles, the Road Map and
the Arab Peace Initiative, the IBSA countries
call for the urgent resumption of negotia-
tions that will lead to a two-state solution,
with the creation of a sovereign, democratic, inde- Palestinian Authority Foreign Minister Riad Malki was in Brasi-
pendent, united and viable Palestinian State, coex- lia to meet IBSA leaders and ministerial delegations
isting peacefully alongside Israel, within secure, in the West Bank. In addition, they expressed
pre-1967 borders, with East Jerusalem as its capi- deep concern at the issuance by Israel of Military
tal. Order 1650.

4. They note that a comprehensive Arab-Israeli 6. Conflicts in the Middle East remain essentially
peace process, including between Israel and Pales- political in nature and cannot be resolved by
tine, must reach concrete progress on all tracks force. The IBSA countries therefore call upon all
and reiterate their support to efforts aimed at re- actors not to pursue policies, measures and ac-
activating talks between Israel, Syria and Lebanon. tions that inflict damage and suffering, particularly
An enlarged participation of the international to civilians.
community in this endeavour, including develop-
ing countries with good relations with all parties, 7. They express support for mediation efforts with
could bring a fresh perspective to the peace proc- a view to reaching domestic Palestinian reconcilia-
ess, and IBSA countries will actively support this tion and urge all interested parties to contribute
process. to that purpose. They call on the international
community to contribute, on a sustained, concrete
5. The IBSA countries strongly urge the Israeli gov- and urgent basis, to the state-building efforts un-
ernment to freeze all settlement activity in the dertaken by the Palestinian National Authority,
occupied Palestinian territories, including “natural recalling the IBSA readiness to continue its com-
growth”, and to reverse its decision to advance mitments in this regard.
planning for new housing units in East Jerusalem.
Concerned by the continuing deterioration of the 8. IBSA countries will continue consultations on
humanitarian situation in Gaza, they also call on the matter.
Israel to alleviate circulation restrictions on the
movement of people and goods, both in Gaza and
38 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum

Statement by President Jacob Zuma

to media briefing at the conclusion of the 4th IBSA Summit
to improve the lives of our people.

We have had an opportunity today to review

the work being done, and to indicate areas
where we need to place additional effort.

All three governments are committed to do

what is necessary to advance this work, and
ensure that it makes a real difference to the
development of our three countries.

South Africa is particularly excited about the

proposal for an IBSA satellite project. It of-
fers an opportunity to expand our coopera-
tion into advanced technology, increasing
our collective scientific and engineering ca-
pacity. We see this initiative as an opportu-
nity to reinforce our shared developmental
15 April 2010, Brasilia, Brazil objectives. A joint satellite could lend support to
Your Excellency, President Lula da Silva, areas like agriculture, education, energy, health,
Your Excellency, Prime Minister Singh, information and communications, trade and trans-
Members of the delegations of Brazil, India and port.
South Africa,
Members of the media, Ladies and Gentlemen,
Ladies and Gentleman,
We also had an opportunity to discuss various
I wish to extend my sincere gratitude to President multilateral issues.
Lula da Silva for graciously hosting this 4th Summit
of the Heads of State and Government of Brazil, We have seen in recent times the importance of
India and South Africa. IBSA as a forum within the broader international
This summit has proven the value of this forum for
cooperation among our three countries. Brazil, India and South Africa each occupy an influ-
It is clear from the discussions today that this fo- ential position within their respective regions, and
rum is rapidly developing into an effective vehicle hold similar views on key global issues.
for engagement and collaboration.
We are therefore in a position to make a signifi-
While we can already point to a number of cant contribution to global debate and engage-
achievements, including the agreements that have ment. This was clearly demonstrated at the Co-
been signed here today, it is becoming ever more penhagen Summit on Climate Change in Decem-
obvious that we have yet to fully explore the po- ber last year, where the IBSA countries, together
tential of this trilateral relationship. with China, played an important role in reaching
agreement on the Copenhagen Accord. We have
The working groups that have been established been able to effectively represent the interests of
are making progress in a number of areas, using the developing world in such multilateral forums.
our collective insights, experiences and resources
39 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum

Statement by President Jacob Zuma

to media briefing at the conclusion of the 4th IBSA Summit

In this context, we had a useful discussion about and meetings.

the reform of multilateral institutions, specifically
the UN Security Council. We can no longer accept Lastly, I wish to thank Prime Minister Singh and
a situation in which the majority of the world’s President Lula da Silva for a highly successful and
people remain inadequately represented in such productive summit.
bodies. As the IBSA countries, we have resolved to
work together and with other countries to ad- It has done much to justify the confidence that our
vance the reform of the UN Security Council and people have in this important initiative. We now
other institutions to make them more representa- have a responsibility to ensure that the work we
tive, more democratic and more responsive to the have done here does indeed bring about a signifi-
needs of the poor. cant improvement in the lives of our people.

We will also continue our collective efforts to com- By working together we can build a better world
bat climate change. and achieve a better future for the people of Bra-
zil, India and South Africa.
This includes further collaboration around efforts I thank you.
to address environmental challenges in our re-
spective countries.
South African technology key to
We each have significant natural resources that
need to be used sustainably and significant poten-
IBSA satellite programme
tial to develop renewable energy capacity. We will By: Keith Campbell
also continue to engage in the broader global ef- 30th April 2010
fort to achieve a legally-binding agreement on cli-
mate change. South Africa will provide the satellite bus for the
first – indeed, probably for both – of the satellites
We will once again work together, within the BA- in the recently announced India Brazil South Africa
SIC group and with like-minded countries, towards Dialogue Forum (IBSA) satellite programme. The
a successful outcome to the next COP meeting in bus is the term given to the basic spacecraft – that
Mexico in December. is, the structure and the control, navigation, com-
munications and power systems – on which the
We reiterate that climate change negotiations actual observation imagers and systems, experi-
need to continue under the two-track processes ments, transponders, and so on (depending on the
set out in the Bali Roadmap, upholding the princi- type of satellite) are mounted.
ple of common but differentiated responsibilities. “Brazil sees South Africa as an expert in mi-
crosatellites,” reveals Stellenbosch University elec-
Ladies and Gentlemen, tronic engineering professor and South African
IBSA satellite working group member Herman
South Africa looks forward to hosting the 5th IBSA Steyn. “India has big satellites and satellite launch
Summit in October 2011. vehicles (SLVs – satellite launching rockets). In
principle, it has been agreed that IBSA satellites
There is a lot of work that needs to be done before will be smaller and cheaper and so more afford-
then. able.”
Brazilian experience is also with larger satel-
As South Africa we are firmly committed to do lites and the country is still seeking to develop its
everything we can to implement the agreements own SLV.
that we have made here, and in previous summits The first of the two satellites will be a sci-
40 Pan Africa & World Review 2nd Quarter 2010
International/IBSA Dialogue Forum

South African technology key to IBSA satellite programme

entific craft, aimed at studying space weather,
while the second will be an earth observation sat-
ellite. The aim is to launch the space weather craft
two years from now, followed by the earth obser-
vation craft two years after that, or four years
from now. Both will be launched by India.
“The IBSA programme will not get in the way
of our own satellite programme,” assures South
African National Space Agency acting CEO Dr.
Sandile Malinga. “This [IBSA programme will be
run in parallel with our programme.” Over the
next few years, South Africa is planning at least
one earth observation microsatellite as part of the
African resource management constellation pro-
gramme, now being developed with several other Precursor for IBSA? South Africa’s Sumbandila satellite
African countries, in addition to the IBSA satellites. Picture by: SunSpace
Space weather is the term given to processes
and conditions existing in space which can affect
(MSMI), developed by Stellenbosch-based Sun
the near-earth environment. These include fluc-
Space & Information Systems (SunSpace) in coop-
tuations in the solar wind, solar flares, coronal
eration with the Catholic University of Leuven, in
mass ejections (from the sun’s corona), changes in
the interplanetary magnetic field and perturba-
“This is a combination of a hyperspectral
tions in the earth’s magnetic field.
(very narrow band) camera and a multispectral
“Space weather influences earth weather as
(broad band) camera,” explains Steyn, who is also
well as affecting satellites,” points out Steyn. “The
a consultant to SunSpace. “It has a higher resolu-
space weather satellite will especially study space
tion than the imager carried on SumbandilaSat.”
weather over the South Atlantic. There is a region
“The use of the MSMI is not guaranteed yet, but it
there which experiences high levels of solar radia-
is a strong possibility,” adds Malinga.
The creation of the IBSA satellite programme
Although South Africa will build the bus, most
was announced at the conclusion of the fourth
of the instruments which it will carry will come
IBSA summit in Brasília on April 15 by the leaders
from Brazil, which is driving this part of the pro-
of the three countries – South African President
gramme. Still, developing and building this satel-
Jacob Zuma, Indian Prime Minister Manmohan
lite will benefit human capital development and
Singh and Brazilian President Luiz Inácio Lula da
technological development in South Africa.
Silva. Speaking on behalf of the three leaders, Lula
Further, this country is already involved in
da Silva remarked: “[The satellites] will benefit the
space weather observation and research, the Her-
IBSA countries and other friendly countries, pro-
manus Magnetic Observatory being this country’s
viding more effect in matters of agriculture, trans-
space weather warning centre. “The planned
port and telecommunications. It is a project sym-
space weather satellite will greatly strengthen our
bolic of the new stage in our partnership.”
position regarding space weather and will greatly
Zuma enthused: “South Africa is especially
increase our scientific knowledge,” affirms Ma-
excited with the IBSA proposal.”
However, South Africa is more interested in
Edited by: Martin Zhuwakinyu
the earth observation satellite. This is in part be-
cause the country hopes that this will be fitted
with the multispectral microsatellite imager

41 Pan Africa & World Review 2nd Quarter 2010

International/EU-LAC Summit

EU, Latin America, Caribbean Summit


Leaders who met in Madrid, May 18th for the 6th European Union, Latin America, Caribbean Summit

L eaders of the European Union member

states, Latin America and the Caribbean con-
gregated in Madrid, Spain, on May 18 with a view
the G-20 and appropriate regional fora. We
will continue to strive to apply macroeco-
nomic and financial policies designed to pre-
to strengthening their bi-regional strategic part- vent future financial crises with their atten-
nership. In was their sixth summit. The first was in dant economic and social consequences;
Rio de Janeiro in 1999. foster balanced and sustainable global eco-
On international issues the three regions nomic growth; restore confidence; and sta-
agreed on support for United Nations standards bilize world financial markets. We underline
and initiatives on human rights and arms reduc- the importance to devote special attention
tion and control, particularly non-proliferation of to the social and economic impact of the
nuclear weapons. They also acknowledged the crisis notably in developing countries. We
role of the International Criminal Court in counter- emphasize the need to reinforce support for
ing impunity for crimes against humanity, war vulnerable and poor people.”
crimes and genocide. Additionally, they pledged working to-
The Summit participants were unanimous in gether towards a new international financial
their support of free trade, stating in their final architecture, that would among other reforms
communiqué: increase the voice and voting power of under-
“We firmly reject all coercive measures of represented developing and transition coun-
unilateral character with extraterritorial tries, while also delivering on non-quota gov-
effect that are contrary to international law ernance reforms in international financial insti-
and the commonly accepted rules of free tution, alluding to the Bretton Woods institu-
trade. We agree that this type of practice tions.
poses a serious threat to multilateralism.” Social issues the EU-LAC Group took a
On dealing with the global economic crisis common stance on were gender equality and
and its impact on developing countries the sum- gender based violence, plus achievement of
mit’s final communiqué asserted: the Millennium Development Goals.
“We are determined to intensify our coop- On the environment, the leaders regarded
eration in order to address the global development of alternative energy sources as
consequences of the economic and financial essential, calling for “diversification and com-
crisis and to prevent such crises from plementarity of the energy matrix,” specifically
unfolding again, in line with the outcomes mentioning renewable sources of energy. In
of the UN Conference on the World Finan- this context they agreed to exchange experi-
cial and Economic Crisis and its impact on ences on bio-fuel technologies. They also
Development (June 22nd-23rd, 2009), and agreed in principle to reduce carbon emissions.
also taking into account the goals set by
42 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy

G8 & G20 Summits


World leaders at the Group of 20 Summit in Toronto, Canada

F rom Pittsburg in September 2009 the Group

of 20 Summit moved to Toronto in June
2010 with the theme Recovery and New Begin-
According to the Henry J. Kaiser website,
Canada was particularly keen that donor countries
ning; but this time preceded by a summit of the make good their commitments to developing
traditional Group of 8 Industrialized Nations, countries and also that the Group of 8 focus on
which as it turns out is not yet defunct but alive Haiti’s reconstruction efforts. As the Summit
and well as the core of the 20 nation grouping; opened there was an $18 billion shortfall on the
though unconfirmed reports maintained Canada $50 billion pledge made to developing countries
2010 was the G-8’s final parley. in 2005 at Gleneagles, Scotland. Tied into the
The focus of this 38th G-8 Summit, held on shortfalls on pledges is the issue of Global South
the 25th and 26th of June, was discussion of pro- countries meeting the 2015 Millennium Develop-
posals on how to increase child health care in the ment Goals (MDGs).
world’s poorest nations and an outreach meeting "At the ... summit, I will join my fellow G8
with leaders of seven African nations. Algeria’s leaders to take action on some of the world's
President Abulaziz Bouteflkika, Egypt’s President most pressing problems," Canada’s Prime Minister
Hosni Mubarak, New Partnership for African De- Stephan Harper said in a message to delegates
velopment (NEPAD) Chairman and Ethiopian [reported by Agence-France-Presse], promising,
Prime Minister Meles Zenawi, Malawi’ President “We will make a real difference and deliver re-
and African Union Chairman Bingu wa Mutharika, sults.”
Nigeria’s President Goodluck Jonathan, Senegal’s Equal concern that G-8 pledges to developing
President Abdoulaye Wade and South Africa’s countries be honored was voiced by U.S. Presi-
President Jacob Zuma were the seven invited to dent Barack Obama who proclaimed it was time
represent Africa. Invited from the Caribbean were for "a new era of engagement that yields real re-
Haiti’s President René Préval and Jamaica’s Prime sults for our people – an era when nations live up
Minister Bruce Golding, along with Columbia’s to their responsibilities and act on behalf of our
outgoing President Alvaro Uribe from South shared security and prosperity."
43 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy
The G-8/G-20 Youth Summit held
at Simon Fraser University in Van-
couver, from May 9th to 15th,
brought together young people
from the countries comprising the
Summits to discuss international
affairs, promote cross cultural un-
derstanding and build global
friendships. Ecotourism student at
Tshwane University of Technology,
Tribute Mboweni (above right) was
chosen by the G-8/G-20 Youth
Summit team to represent South Africa. Tribute in 2009
won the grand prize at the Bayer Young Environmental En-
voys competition in Germany. She was given the Youth
Summit post of Environment Minister.

Ahead of the Summit U.N. World Food Pro-

gram (WFP) policy director David Stevenson re-
marked, "The food crisis hasn't gone away, it's Canada’s Prime Minister Stephan Harper (right) welcomes
been compounded." Stevenson in addressing the Nigeria’s President Goodluck Jonathan to the G-8 where
Vancouver G-8/G-20 Youth Summit in May called Nigeria was one of 7 African countries invited in an out-
for G-8 leaders to stay the course in financing the reach.
$22 billion food security initiative.
Pressing the commitments honoring issue, American embassy consulate in Johannesburg.
Oxfam Canada’s G-8/G-20 Coordinator Victoria The US Government and President Obama were
Harnett drew attention to the plight of women in called upon not to abandon Africa after years of
the poor countries, reminding us, “There are a slow HIV and health gains.
thousand women around the world who die every The G8 announced a new initiative focused
day in pregnancy and childbirth. ... The message on Maternal Health, the "Muskoka Initiative", so
we want to get across today is that it is absolutely dubbed in deference to the Summit’s location.
essential that G8 leaders start keeping their prom- According to Bond for International Develop-
ises" ment, “The initiative aims to mobilize up to
As the Toronto Summit neared African civil $10billion to support health care systems in de-
society intensified advocacy for increased health veloping countries over the next five years, with
spending, to at least 15% of annual national budg- additional contributions from The Bill and
ets as per an earlier commitment in Abuja, and Melinda Gates and UN bodies.” However, Bond
campaigned for fulfillment of the G-8 commit- noted that the G8 did not make clear whether
ments made in 1995 at Gleneagles. During April this initiative would be undertaken within the
trade unions across Africa marched to, visited or $18 billion unpaid on the Gleneagles commit-
wrote to Canadian embassies calling on Prime ment or would be additional funding. Bond also
Minister Harper to ensure that Gleneagles prom- noted that the Muskoka Accountability Report,
ises were kept. South Africa’s three major trade as mandated by the 2009 L'Aquila G8 Summit,
union federations linked up with civil society or- was the first documenting for public consump-
ganizations such as World AIDS Campaign and tion progress made on G-8 commitments. Para-
religious leaders, sending a large delegation to the doxically, it acknowledged that Gleneagles com-
Canadian embassy in Pretoria. At the World Eco- mitments had not been entirely fulfilled without
nomic Forum on Africa in Tanzania during May giving figures.
civil society again demonstrated. On June 17th the NGO responses were varied but the general
Congress of South African Trade Unions (COSATU) impression was that nothing new on fighting
teamed up with Word AIDS Campaign, Treatment poverty emerged from the Summit, though some
Action Campaign, Doctors Without Borders, and commended the efforts towards economic and
other civil society organizations, including the Re- banking reforms. World Vision applauded the
gional African AIDS NGOS forum, to march on the cancellation of Haiti’s debt. Oxfam maintained
the G20 ought to have placed a tax on the finan-
44 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy

United States President Barack Obama jokes with colleagues during the G-8 Summit in Muskoka, Ontario

cial sector (Financial Transaction Tax-FTT) to at States of America) condemned North Korea
least partially compensate the 64 million people over the torpedo sinking of South Korea’s war-
forced into poverty by the economic crisis. Make ship, Cheonan, and criticized both North Korea
Poverty History voiced concern that austerity and Iran over their nuclear power programs.
measures to reduce budget deficits would end The Final Communiqué also called on Israel to
up hurting the poor. The One Campaign, noting change its current blockade policy against Gaza,
that Africa with over 900 million consumers deeming it “unsustainable.”
could contribute to global economic recovery Disagreements over whether to cut spend-
through trade and investment, advised accom- ing which runs the risk of double dip recession,
modation of African voices in the G20 would or keep up stimulus, which is pushing national
have to increase if a new partnership is to be debts perilously high, were stressed in much of
built with Africa. the media but the fact is that the world’s lead-
At Summit’s end, African Development Bank ers find themselves caught between the devil
Group expressed its appreciation for the G-20’s and the deep blue sea. As always, each one is
promise to replenish its concessional lending betting on policies believed to keep them on a
window. “We will fulfill our commitment to en- safe middle ground; and while each knows that
sure an ambitious replenishment for the conces- political and economic circumstances in every
sional lending facilities of the MDB (multilateral country have their own peculiarities, they also
development banks), especially the International know that a critical mistake anywhere could
Development Association and the African Devel- adversely affect the global economic situation
opment Fund,” the Summit’s Final Communiqué and possibly bring everybody down as it hap-
read. pened in the last quarter 2008. Both Obama
The G-8 also discussed Iran’s nuclear pro- and Britain’s new Prime Minister David Cam-
gram and the issue of new sanctions on North eron stressed the importance of making the
Korea in the wake of a South Korean warship right policy decisions. “This period we are in is
having been sunk by a torpedo assessed by an going to be critical,” cautioned Obama. “Making
international investigating team to be from the progress this year, putting everything we have
North. In their Final Communiqué the G-8 into getting it right this year is vitally impor-
(comprised of Canada, France, Germany, Italy, tant,” Cameron said.
Japan, Russia, United Kingdom and the United While Britain’s Conservative led coalition
45 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy
with the Liberal Democrats is
pushing national debt reduc-
tion and budgeting spending
cuts, U.S. President Barack
Obama is urging caution
against focus on deficit cut-
ting while economic recovery
is yet fragile. Republicans in
the United States, intent on
regaining control of Congress
in this coming November’s
elections, as a prelude to win-
ning back the presidency in
2012 are predictably arguing
for reduced spending and
lower taxes, somewhat in line
with their Conservative coun-
terparts in the United King-
dom. Germany, France and
Japan have also unveiled defi-
cit cutting budgets and Canadian Prime Minister Metro Toronto Convention Center where the G-20 Summit
Stephen Harper in a pre summit letter urged lead- was held
ers to agree on concrete deficit reduction goals
with a view to restoring investor confidence fol- no use to anyone.”
lowing the recessionary crisis, leaving Mr. Obama Greece’s debt crisis brought as much panic
alone banking on stimulating sufficient medium to European markets as the 2008 banking crisis
term growth to afford deficit reduction. Prior to did globally; while the uncomforting debt to GDP
the Summit, President Obama sent a letter to ratio in Spain has shifted Euro-zone attention
leaders warning that shifting out of stimulus away from the tenuously overcome recession to
mode too swiftly could result in a replay of the avoiding further debt and monetary crises, the
mistakes that prolonged the Great Depression of mere 0.2% Euro zone first quarter 2010 GDP
the 1930s. Perhaps alluding to the fact that the growth highlighted the risk of double dip reces-
2008 financial crisis started and was most devas- sion.
tating in the U.S., Canada’s Finance Minister Jim
Flaherty remarked, “One size doesn’t fit all.” After G-20 Issues
the Summit President Obama conceded that The ongoing global recession was the primary
countries had to proceed at their own pace in ei- issue at the G-20 Summit at Metro Toronto Con-
ther emphasizing growth or budget austerity and vention Center. In respect of previous develop-
said he was satisfied with the Summit’s outcome. ments, the focus agenda included evaluation of
Mr. Obama should by now be wise to ditch financial reforms progress, developing sustain-
Washington’s long held habit of complaining to able stimulus measures, exchanging ideas on the
countries like Japan and Germany that their trade proposition of a global bank tax and promoting
surpluses are excessive, even as such complaints open markets. Within the context of this focus
are now modified with urging to increase domes- agenda each leader brought his specific agenda
tic consumption; unlike in the past when Bill Clin- to the Summit. In addition to the representatives
ton went to Japan telling them to buy more of the Group of 20 major economies, leaders of
American goods. German Chancellor Angela twelve other invited nations and eight intergov-
Merkel in a recent interview published in the Wall ernmental organizations participated.
Street Journal sharply responded to the Ameri- The divide between the Europeans, who
cans in the premises, “German export successes confronted with the disturbing market reaction
reflect the high competiveness and innovation to the Greek debt crisis are wary of more coun-
strength of our companies,” adding, “Artificially tries falling into debt trouble, and the United
reducing Germany’s competitiveness would be of States which is leery of double dip recession was
46 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy

World leaders pose for the family photo with African Outreach Leaders and extended Outreach Leaders at the G8
Summit at the Deerhurst Resort in Muskoka, Canada June 25, 2010. From the left (front row): Russian President
Dmitry Medvedev, Haitian President René Préval, Columbian President Alvaro Uribe, Algerian President Abdelaziz
Bouteflika, Canadian Prime Minister Stephen Harper, Senegalese President Abdoulaye Wade, African Union Chairman
and Malawi President Bingu wa Mutharika, French Nicolas Sarkozy, American President Barack Obama; (second row)
European Union President Herman Van Rompuy, British Prime Minister David Cameron, Jamaican Prime Minister
Bruce Golding, Nigerian President Goodluck Jonathan, South African President Jacob Zuma, Ethiopian Prime Minister
Meles Zenawi, German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi, Japanese Prime Minister
Naoto Kan, European Commission President José Manuel Barroso.

carried over into the G-20 Summit with China and unacceptable levels.”
India disposed to the U.S. view that the recovery Last year America’s $1.42 trillion deficit
was yet too tenuous to withstand austerity meas- amounted to 10% of GDP and President Obama
ures. Also, the bank tax and Robin Hood taxes appointed a commission to work on trimming the
[that would take from the rich and give to the country’s budget deficit to 3% of GDP, a level
poor] supported by the European Union but re- economists generally agree is sustainable. Brit-
garded cautiously by the American and Canadian ain’s budget deficit is also 10% of GDP, but recov-
administrations, were discussed. Both China and ering growth has lagged behind other leading
India are well out of recession; India registering countries. U.K. growth was negative by 2.0% for
6.5% GDP growth for 2009 and China above 10%, 2009. First quarter 2010 growth was a meager
but they are nevertheless concerned that the 0.2%, equivalent to the Euro Zone average.
countries to which they export and increasingly South Africa’s President Jacob Zuma, the only
invest in do not slump. African leader at the G-20 roundtable, reiterated
In their Final Communiqué G-20 leaders his persistent call for International Monetary Fund
pledged richer countries (Group of 8) would cut (IMF) reform to give developing countries a
the ratios of their budget deficits to Gross Domes- greater say. Noting that the IMF is a quota based
tic Product in half by 2013. Balancing that, the institution wherein quotas determined the
Communiqué also called for following through on amount of funds that could be made available to a
existing stimulus plans. Acknowledging that borrowing country, Mr. Zuma pointed to the on-
“serious challenges remain,” the G-20 Summit’s going process of Worlds Bank reform arguing,
Final Communiqué noted that “while growth is "Our reform of the World Bank shows that the
returning in many countries, the recovery is un- slow movement on IMF reform is not necessary.
even and fragile, and unemployment remains at - As leaders, we need to demonstrate political will
47 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy

Protestors at the Toronto Summit were peaceful until a group of black clad radicals started destroying things

by ensuring that the necessary compromises are against which President Zuma is pressing this
reached for us to deliver on our Pittsburgh com- point, noting that Zuma’s leftist allies are critical
mitments." At the Pittsburg G-20 Summit last Sep- of the tendency of the Brentton Wood’s institu-
tember it was agreed that a more equitable global tions’ to give advice and stipulate lending condi-
economic order was in everybody’s interest. Mr. tions that involve social spending reduction,
Zuma warned that failure to move on IMF reform which is untenable for South Africa in its quest to
could endanger the goodwill [between developing bridge the wealth gap between the beneficiary
and developed countries] earned by the IMF’s class of apartheid and its victims.
effective action during the 2008-2009 global eco- Predictably, the Toronto Summits attracted
nomic crisis. However, he was emphatic about protestors. Initially non-violent, then black clad
the essentiality of international cooperation, tell- protestors on Saturday, July 26, broke off from a
ing the world from Toronto, "As Africa we bring to larger crowd and torched police vehicles and
the G20 Summit the key message that we must, smashed windows with baseball bats and ham-
together as the developing and developed worlds, mers. Prime Minister Harper blamed thugs for the
promote stronger and more effective and equal violence, pointing out that the $900 million his
international partnerships for growth and devel- government had spent on Summit security was
opment." justified.
On the fundamental changes South Africa
would like made, Mr. Zuma explained, "Our Obama’s Summit Rounds
strongly held view is that quotas must shift to de- President Obama while in Toronto invited China’s
veloping economies as their need for the IMF re- President Hu Jintao for a state visit to the United
sources is higher. The shift must essentially be States, but no date was immediately set. At a post
from developed countries to developing coun- -summit press conference Mr. Obama said he
tries. We must ensure that no emerging and low- welcomed China’s [recent] decision to let its cur-
income countries lose quotas as a result of these rency appreciate in response to market forces.
reforms," he said. After his meting with South Korea’s President Lee,
Karima Brown writing in South Africa’s Busi- President Obama announced his administration
ness Day (June 29) explained the background would resume talks aimed at resolving issues
48 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy

(Photo left) Canada’s Prime Minister Stephan Harper (right) with Argentina’s President Cristina Fernandez de Kirchner, one
of two female leaders at the G-20 Summit– Germany’s Chancellor Angela Merkel was the other. (Photo Right) South Afri-
can President Jacob Zuma and his daughter Phumzile are greeted by Royal Canadian Mounted Police as they arrive in ad-
vance of the G8 and G20 Summits, Thursday, June 24, 2010, at Pearson International Airport in Toronto.

blocking completion of a free trade agreement quences.”

with South Korea, stalled since 2007. According to
White House Press Secretary Robert Gibbs auto- Summit’s Institutionalization
mobiles and beef are the principal outstanding Asked if summits were necessary, French Presi-
issues to be addressed before sending the agree- dent Nicolas Sarkozy admitted that they can be
ment to the United States Congress. exhausting. "We end these summits depleted,
Obama and Cameron endorsed the Afghan tired, but we are obligated to participate," he
government’s five year exit strategy for foreign said. The idea of leading industrial nations con-
troops. The United States and United Kingdom, stituting a regularly meeting group was intro-
the countries that have had the most troops in duced by France in 1975, involving six countries:
Afghanistan since the 2001 invasion to oust the France, Germany, Italy, Japan, United Kingdom
Taliban government following its refusal to turn and United States. Canada was brought in the fol-
over Osama bin Laden and other Al Qaeda leaders lowing year and the forum became known as the
for attacks on New York and the Pentagon, have G-7. Russia was brought into the fold in 1997, thus
sustained an increasing number of casualties in making it the G-8. South Africa was first invited to
recent months. the Summit in 2000 and when China, India, Brazil
On the BP oil spill, the American and British and Mexico became part of the Summit in 2003
leaders agreed that it was important that BP re- the forum adopted the official designation G8+5.
main a strong company. Prior to depreciation of The G-20 Summit held June 26th and 27th in To-
its stock owing to the oil spill crisis BP was Brit- ronto was the 4th to discuss the global financial
ain’s largest company. The oil spill, the biggest system and world economy.
and most environmentally devastating in history,
was also considered by the G-20 Summit, which in
its final statement noted regarding offshore hy-
drocarbon production “the need to share best
practices to protect the marine environment, pre-
vent accidents…and to deal with their conse-
49 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy

NGO Responses to the G20 Summit

The Sherpa Sunday, 27 June 2010 13:32 Oxfam says the G20 has drawn a blank on poverty.
The organization said that the G20 missed a golden

T he NGOs attending the G20 in Toronto have

issued their responses to the Summit. The
NGOs seem to be unsure what to make of the
opportunity to tackle poverty when it could only
agree to disagree over how to make the banks re-
pay the cost of the economic crisis. According to
G20 so as a result their reactions are more about Oxfam, the G20 ought to have placed a tax on the
future G20 agenda items or the gap left by the financial sector to offer a significant hand up to the
G8 from yesterday. Most welcomed the decision 64 million people forced into poverty by the eco-
by the G20 to expand into the development sec- nomic crisis. The agency called the G20's decision to
tor. take a more active role in promoting development a
'highpoint' of the meeting.
The Global Campaign for Education expressed
disappointment that the G20 did not progress WWF warned that sustainable economic recovery
further on a financial transaction tax (FTT) that needs more than brief platitudes from the G20 on
could go someway to filling the gap in funding green recovery than what it delivered in Toronto.
left by the G8. The campaign welcomed the crea- The agency said that the world leaders were still
tion of a Working Group on Development and painting the economy in black and white but it must
their action plans for the Seoul Summit. GCE said include green. Instead of being a summit of real ac-
education should be the foundation of any long- tion, it recycled and reused earlier commitments on
term sustainable plan for development. fossil fuels. WWF did welcome India's announce-
(See website release). ment earlier in the week to phase out fossil fuel
subsidies on petrol and review the subsidies on die-
Save the Children called on the G20 [member sel and other fuels. The agency was disappointed
states] to broaden their impact as a forum. The that the G20 did not agree on any initiatives like the
agency said that global progress depends on the FTT, to raise additional funds for climate adaptation.
G20 leaders working to support the MDGs on
child and maternal survival and urged the G20 to Actionaid UK said the G20 was bankrupt as the
support the UN Joint Action Plan on Maternal leaders lacked ideas and any willingness to compro-
and Child Health. Save said emerging donors mise. The organization said the communiqué would
such as South Korea and Saudi Arabia have an be forgotten before the day was over. Actionaid
important role to play while India and China International concluded that the G20 has not of-
must do better at home and in their interna- fered any solid solutions to address a still vulnerable
tional commitments. economy and is disappointed that G20 did not ad-
(See Save International website for press release) vance on the FTT. Actionaid worries that a fad-
ing capacity to collaborate will mean the poor suffer
Save the Children US said the G-20 isn’t moving the most.
quickly enough to offer the kind of global eco-
nomic leadership that ensures balanced growth World Vision applauded and welcomed the cancel-
and stability by improving the resilience of the lation of Haiti's IFI debt and the creation of G20
world’s poor. The agency saw some encouraging Working Group on development. The organization
language on narrowing the development gap, did express concern that the development agenda is
but it took no major, new action at this summit taking a back seat to economic growth.
beyond establishing a working group and reaf-
firming the importance of food security. Save US Tearfund said the G20 was a missed opportunity to
echoed Save International in urging the G20 to show leadership on climate justice and to set a path
support the G8 initiative in child and maternal to get back on track for a global deal post 2012.
health and thought the G20 Summit was a Tearfund are calling for at least $200 billion per year
missed opportunity for the larger group to get on of new and additional public finance by 2020 but
board. (See Save US website for press release) saw little progress on agreeing new sources such as
50 Pan Africa & World Review 2nd Quarter 2010
International/G-20 Summit of Financial Markets & World Economy

NGO Responses to the G20 Summit

The Sherpa Sunday, 27 June 2010 13:32
an FTT and levies on aviation and shipping fuel nomic recovery through trade and investment.
emissions. The organization welcomed the G20's However, the organization warned that the G20
support of the United Nations Convention must formally accommodate the voices of the coun-
Against Corruption but were disappointed that tries and people it fails to represent if it is to build a
there was no review mechanism. Tearfund also new partnership with Africa.
welcomed the inclusion of development on the
next G20 agenda and hoped the G20 could do a The Global Call to Action Against Poverty (GCAP)
better job than the G8 which, according to the said the G20 summit showed an unfortunate lack of
organization, "just repackaged old commitments political will to fight poverty by delaying key actions
and missed the opportunity... to take us forward such as the Robin Hood Tax and investing in clean
in tackling poverty and injustice." energy and ending fossil fuel subsidies. The group
also said the G20 needs to include Africa as a regu-
Greenpeace said "important progress was made lar member. The group welcomed the establish-
today in ending fossil fuels". The G20 had taken ment of a Working Group on Development but
uneven steps on the Pittsburgh summit's com- added that the previous commitments to double
mitment to implement country specific strategies ODA to $50 billion must be added to the plan. GCAP
on fossil fuel phase out. According to the agency, welcomed the agreement of Haiti's debt as a
some nations deserve more credit than others 'breath of fresh air' but warned that the G20 must
such as the US. Others, like Canada and Australia now write off the debts of all impoverished coun-
failed to take their commitments seriously. How- tries. GCAP said the violence following the mass
ever, the Toronto G20 suffered a complete lack rally was caused by small groups and should not
of vision on climate financing stating that the overshadow the legitimate demands being made to
funds saved from fuels subsidies could have been [sic] a better world.
diverted to help the climate. (See website for the press release)

Make Poverty History expressed concern that The ITUC said the G20 was failing to meet the jobs
the G20 dealing with budget deficits through cut- challenge and was contradicting itself by speaking
ting back on government services will end up of cutting deficits but welcoming recommendations
hurting the poor. The coalition felt that govern- from their Labour Ministers that say jobs should be
ment's reliance on austerity measures alone to a priority. It was the wrong communiqué at the
tackle deficits risked increasing unemployment wrong time according to the unions. They were
and poverty in the developed world as well as heartened by the German government's support for
the developing world. Make Poverty History said referencing the recent G20 Labour Minister meeting
the G20's not adopting an FTT to make the bank- in Washington and called for the G20 to give the ILO
ing sector pay their fair share was 'a kind of anti- the tasks of writing the recommendations on em-
tax madness'. The organization took some com- ployment and social protection. The unions were
fort in the creation of a Working Group on Devel- also critical that the G20 chose to 'rub shoulders'
opment as they felt the G20 may be able to do a with the B20 business group at the Summit.
better job of addressing the poverty crisis than
the G8.

The ONE Campaign issued a statement at the

end of the G20 Summit stating that the two
working groups created in Toronto on develop-
ment and on anti-corruption needed to focus on
improving governance and mutual accountabil-
ity. The ONE Campaign said that Africa repre-
sents 900 million potential producers and con-
sumers and so can contribute to the global eco-
51 Pan Africa & World Review 2nd Quarter 2010
International/Nuclear Disarmament

America and Russia’s START

O n April 8th U.S. President Barack
Obama and his Russian counterpart
Dmitry Medvedev met in the Czech Repub-
lic capital, Prague, to sign the first nuclear
treaty between the two countries in nearly
20 years. START, Strategic Arms Reduction
Treaty, shall be the successor to SALT 2,
Strategic Arms Limitation Treaty, signed in
1991 and expired last December, provided
the legislatures of the two countries ratify
it. UN Secretary General Ban Ki-moon, re-
sponding to the announcement that the
two Presidents would be signing START in U.S.A. President Barack Obama and his Russian counterpart Dmitry
Prague, called the new treaty an Medvedev signing Strategic Arms Reduction Treaty in Prague, Czech
“important milestone” which he believed Republic, April 8, 2010
would “add a significant impetus” to the
UN’s conference scheduled for May this year to tive signal to our efforts than the news today.”
review the Nuclear Non-Proliferation Treaty. Under the agreement both sides would re-
President Obama needs a two thirds Senate duce their nuclear warheads from the previously
majority (67 out of 100) endorsement of START permitted 2,200 to 1,550 over seven years. The
for it to become effective from the American treaty also reduces the number of allowable mis-
side. Observers wondered whether in the current siles and bomber jets capable of carrying nuclear
partisan mood prevailing in Washington Presi- war-heads to targets.
dent Obama would be able to get the 8 Republi- “With this agreement, the United States and
can Senate votes needed to ratify START, assum- Russia− the two largest nuclear powers in the
ing 100% support from Senate Democrats. Some world− also send a clear signal that we intend to
Republicans were already complaining that too lead,” President Obama said.
many concessions to Moscow could limit the President Medvedev’s spokeswoman Nata-
flexibility of future presidents; but Indiana’s lya Timakova said ahead of the signing, “This
Senator Richard Lugar, a member of the Senate treaty reflects the balance of interest of both
Foreign Relations Committee, welcomed an- nations.”
nouncement of START, saying he looked forward The treaty does not restrict America from
to receiving the treaty document so that commit- moving ahead on deployment of a missile de-
tee hearings could be held and ratification fense system in Europe and Russia reserves the
quickly achieved. Secretary of State Hilary Clin- right to withdraw from START if it determines it
ton noted, “National Security has always pro- can no longer protect its security because of a
duced large bipartisan majorities and I see no U.S. missile defense buildup. Russia’s foreign
reason why this should be any different. I believe minister Sergey Lavrov affirmed, “The existence
that the vast majority of the Senate, at the end of strategic defensive systems capable of neu-
of the day, will see that this is in America’s inter- tralizing offensive weapons will be taken into
est.” account.”
Joint Chiefs of Staff Chairman Admiral Mike Secretary of State Clinton emphasized the
Mullen said U.S. commanders around the world importance of START’s verification mechanism,
“stand solidly behind the treaty. “ saying, “It will reduce the chance for misunder-
Upon hearing that Washington and Moscow standings and miscalculations.” In defense of
had finally agreed the terms of START, European STARTs raison d’étre she said, “We do not need
Commission President José Manuel Barroso af- such large arsenals to protect our nation.”
firmed the EU’s support for non-proliferation
efforts, adding, “There could not be a more posi-
52 Pan Africa & World Review 2nd Quarter 2010
International/Peace & Security

Nuclear Security Summit

A gainst the backdrop of a testimony by his nu-
clear security advisor John Bernnan that Al
Qaeda has for the past 15 years been trying to buy
nuclear materials, U.S. President Barack Obama
warned at the beginning of the mid April Nuclear
Security Summit that a terrorist group in possession
of plutonium no bigger than an apple could deto-
nate a device capable of inflicting hundreds of
thousands of casualties. Specifying the dangers at
the outset of the Summit no doubt aimed to
enlighten skeptics who felt Washington was exag-
gerating the nuclear threat from terrorists in reac-
tion to the September 9, 2001 Al Qaeda assault on
New York and the Pentagon.
Iran and North Korea, the two states facing
international sanctions over their nuclear energy
programs were not invited. Israel, which is com-
monly believed to have a nuclear arsenal but has
neither confirmed this nor signed the nuclear non-
proliferation treaty sent its deputy foreign minister
to sit among the heads of state and government
U.S. President Barack Obama and UN Security Council col-
from the 46 other countries represented. league, Chinese President Hu Jintao at the Washington Nu-
The United States and Russia, the two coun- clear Security Summit
tries with the largest stock of nuclear weapons,
went into the summit fresh from signing a new Addressing the Washington Summit Pakistan’s
treaty in Prague to reduce their nuclear arsenals by Prime Minister Yusuf Raza Gilani rebutted the Har-
a third. The April 8th Strategic Arms Reduction vard findings, saying: "Islamabad has taken effec-
Treaty (START) signed in Prague between the for- tive steps for nuclear safety, security and nonprolif-
mer Cold War antagonists came a year after Presi- eration through extensive legislative, regulatory
dent Obama had in the same city called for a nu- and administrative framework." Adding to the as-
clear weapons free world. surances, Pakistan’s foreign minister Shah Mah-
In respect of the focus of the Summit on secur- mood Qureshi said, "We are confident our system
ing nuclear material from terrorists, Ukraine, a for- is second to none. We have world-class measures
mer Soviet Republic, committed to transferring its in place."
nuclear stocks to Russia for safekeeping. Chile The Harvard reports acknowledges the secu-
shipped its highly enriched uranium to the United rity arrangement improvements Pakistan and its
and Canada agreed to do likewise. nuclear armed neighbor India have made in the last
The United States and Russia committed to few years, but maintains that danger persists from
dispose of a quantity of plutonium that could be nuclear insiders with extremist sympathies, Taliban
used for approximately 17,000 nuclear weapons, in or Al Qaeda outsider attacks and a weak state.
a deal that had been stalled since 2000. Pakistani physicist Pervez Hoodbhoy, who at-
A new report released on the eve of the Nu- tended a parallel, unofficial conference of more
clear Security Summit by Belfer Center for Science than 200 international nuclear experts seemed to
and International Affairs at America’s prestigious agree with the Harvard study, saying,
Harvard University maintained that Pakistan's nu- “Unfortunately, I do not see this concern either in
clear stockpile faces "immense" threats and is the Pakistan or India about nuclear terrorism."
world's least secure from theft or attack.

53 Pan Africa & World Review 2nd Quarter 2010

International/Peace & Security

Iran lashes out at U.S. during Tehran nuclear summit

By Borzou Daragahi and Ramin Mostaghim,
Reporting from Tehran and Beirut
Source: Los Angeles Times
April 18, 2010

I ran’s top political and religious authority lashed

out at the United States at a nuclear disarmament
conference Saturday in Tehran meant to counter a
nonproliferation summit in Washington earlier in the
Iran’s supreme leader, Ayatollah Ali Khamenei,
described the United States as the world’s “only nu-
clear scofflaw.” He called Washington hypocritical
for advocating arms control while retaining a huge
nuclear weapons stockpile, and for accepting the
atomic arsenal of Israel. Israel, which has never for-
mally acknowledged itself to be a nuclear power but
is widely held to be, is not a signatory to the interna-
tional treaty requiring transparency for its nuclear Iran’s Supreme Leader Grand Ayatollah Ali Khamenei calls
program. the U.S. the world’s only nuclear scofflaw’ for its advocat-
ing arms control while having a huge stockpile and for
“The deceptive policy by the only nuclear scoff-
accepting Israel’s atomic arsenal. He castigated the U.S. in
law, which falsely claims to be advocating the non-
an address to the Tehran nuclear summit that was read by
proliferation of nuclear arms while doing nothing his close advisor Ali Akbar Velayati.
substantive for this cause, will never succeed,”
Khamenei said in comments read by one of his clos- York to reexamine the Nuclear Non-Proliferation
est advisors, former minister Ali Akbar Velayati. Treaty.
Iran has faced international pressure over its State-controlled media said 24 nations sent
nuclear technology and research program, which the ministers or deputy ministers to Iran’s first Interna-
West alleges is aimed at developing atomic weap- tional Conference on Disarmament and Non-
ons. Iran contends that it is meant only for civilian Proliferation, which continues Sunday.
ends. China and Russia, strategic allies that have ap-
Iranians are incensed over the Obama admini- peared to back away from Tehran under Western
stration’s recent rewriting of the U.S. policy on nu- pressure, sent deputy foreign ministers. Iraq, Turkey,
clear weapons, which ruled out using such arms Lebanon, Oman and Syria, Iran’s main strategic ally,
against nonnuclear countries that comply with the sent foreign ministers, and Pakistan’s ambassador to
Nuclear Non-Proliferation Treaty, of which Iran is a Tehran attended.
signatory. The U.S. says the Islamic Republic has vio- There was no sign of any Western delegates.
lated the treaty; Iran says it is in compliance. Khamenei reiterated his long-standing position
“Threats to use weapons, especially nuclear that the use of nuclear weapons was religiously for-
weapons, are made by those who have no clear logic bidden, a violation of humanitarian law and a war
and human thinking,” Iranian President Mahmoud crime. In an echo of the message made by President
Ahmadinejad said in a speech. Obama at the Washington summit, he called for
Tehran also condemned the recent nuclear “sensible and practical ways and solutions to
nonproliferation conference in Washington, which counter the threat of nuclear weapons.”
was partly a precursor to seeking new sanctions In the lounge outside the main hall where invit-
against Iran within the U.N. Security Council. ees delivered long speeches in favor of nuclear disar-
Iran has striven hard to bolster its diplomatic mament, pictures of victims of the 1945 U.S. nuclear
position ahead of anticipated maneuvers at the Se- attack on Hiroshima and Nagasaki were on display.
curity Council and a conference next month in New

54 Pan Africa & World Review 2nd Quarter 2010

International/Peace & Security

Nuclear Non-Proliferation
Review Confab

E very 5 years signatories to the Nuclear Non-

Proliferation Treaty (NPT) meet under the
auspices of the International Atomic Energy Agency
(IAEA) to review progress. This year representa-
tives of the 189 signatory countries met for the
month long conference in New York. The NPT, first
signed in 1968, aims at disarming nuclear states,
ensuring nonproliferation among nonnuclear states
and to encouraging the safe use of civilian nuclear
technology. At the 2010 review conference a series Nuclear Bombs While nuclear weapons are the most
of additional concrete actions that states must take powerful and destructive war devices thus far developed,
to work toward those three goals were agreed the direct destructive capacity of the most powerful bomb
(10 kilotons) accounts for only about 20% of its direct in-
cendiary impact, limited to less than 50 square miles; the
Although the Non-aligned Movement of non- rest comes from burning of electrical short circuits and
nuclear states did not get their wish that major nu- inflammable materials caught up in the bomb’s blast
clear powers Britain, China, France, Russia and the wave, the ferocious winds it leaves behind and blast de-
United States agree to dismantle all their nuclear bris. However radioactive fallout, which is produced by
arsenals by 2025, there was sufficient agreement nuclear fission and the activation of soil, air and water
among participants for the conference to have and other materials in the vicinity of the detonation, is the
been considered a success. The nuclear powers did worst effect of nuclear weapons and given the volume of
commit to "further efforts to ultimately eliminate nuclear warheads stocked by major powers a nuclear
all types of nuclear weapons." holocaust could cause the destruction of human civiliza-
tion. The neutron bomb, alternatively referred to as the
Washington showed good faith when the De-
clean bomb or tactical nuclear weapon, relies more on
fense Department released, as Secretary of State non-radioactive fusion, rather than radioactive fission for
Hilary Clinton promised on the opening day, the explosion, whereby its radioactive impact on water and
long held secret of America’s nuclear arsenal inven- soil resulting from the thermonuclear reactions of neu-
tory. The U.S. confirmed an arsenal of 5,113 nuclear trons is limited to the area around the explosion.
warheads. Britain admitted having 225 and pledged
to review the conditions under which it would be
having clandestine nuclear weapons programs.
prepared to use them. .
The United States had initially opposed inclu-
Significantly, North Koreas withdrew from the
sion in the final document urging Israel to join the
NPT in 2003; India, Israel and Pakistan are not sig-
NPT, but apparently realizing the unreasonableness
natories and Israel refuses to confirm its nuclear
of its stance ultimately agreed that the document
status despite a prevailing assumption that it has
note "the importance of Israel's accession to the
long been a nuclear power. During May documents
NPT." The U.S. was at odds with other signatories
entered the public domain revealing that apartheid
once again when Egypt and other non-nuclear
South Africa had in the 1970s asked Israel for nu-
states pushed for a conference in 2012 on making
clear weapons technology. At that time opponents
the Middle East a nuclear weapons free zone.
of apartheid were claiming that West Germany,
When Israel heard that the U.S. withdrew its objec-
Israel and South Africa were involved in nuclear
tions to the conference, Israel immediately an-
weapons development cooperation. Presently, Iran,
nounced it would not attend; after which Washing-
Miramar and Syria are widely held in suspicion of
55 Pan Africa & World Review 2nd Quarter 2010
International/Peace & Security Nuclear Non-Proliferation Review Confab
Statement to 2010 Review
Conference of Parties to the Treaty
on the Non-Proliferation of Nuclear
ton reversed its support, contending that there
Weapons (NPT)
should be "comprehensive peace in the region
by IAEA Director General Yukiya Amano
Deepti Choubey, who attended the conference
in her capacity as deputy director of the nuclear- Mr. President, Ladies
policy program at the Carnegie Endowment for In- and Gentlemen,
ternational Peace, argued that a conference on a The IAEA works to pre-
nuclear weapons free Middle East could be useful vent the proliferation of
for the United States, pointing out, "If you are con- nuclear weapons and to
cerned about Iran's nuclear ambitions, then a con- promote the use of nu-
ference on a nuclear-free Middle East can be an- clear energy for peaceful
other tool or framework for trying to curb their am- purposes and technical
bitions,” adding, “Critics of the conference need to cooperation. The IAEA
get past the reflexive view that this is just an at- also has a role to play in
tempt to criticize the Israelis." verifying nuclear disar-
Nonetheless, Choubey considered the confer- mament. As all of these
ence was a success compared to the 2005 confab at activities are relevant to
which the U.S. under President George W. Bush and the work of the NPT Re-
other nuclear armed states showed no remorse view Conference, I would
about not meeting their nuclear disarmament obli- like to provide you with
gations. The 2010 treaty review was held against a brief overview of re-
the backdrop of April signing by Russia and the U.S. cent developments.
of a new Strategic Arms Reduction Treaty (START) As you know, reliable supplies of energy are
and President Obama telling the world in a speech vital to ensure continued prosperity and sustained
in Prague last year that America would "work to- development. Nuclear power is enjoying growing
ward a world free of nuclear weapons." According acceptance as a stable and clean source of energy
to Choubey, "States were so eager to get an out- that can help to mitigate the impact of climate
come in part because Obama has created a lot of change. More than 60 countries are considering
political capital. The Prague speech created the at- introducing nuclear power to generate electricity. It
mosphere to achieve this outcome." is expected that between 10 and 25 new countries
When a last minute agreement was reached in will bring their first nuclear power plants online by
New York on May 28th the 2,000 delegates gave 2030.
themselves a round of applause. Ending on a con- Certainly, it is for each sovereign State to de-
ciliatory note marked great progress from the cide whether or not to use nuclear power, but the
opening day, May 3rd, when the session was domi- IAEA assists interested countries in establishing a
nated by the face off between Iran and the U.S. reliable nuclear infrastructure. Nuclear power must
over the intentions of the former’s nuclear energy be accessible not only for developed countries but
program. Although Iran’s President Mahmoud also for developing countries. Nuclear power needs
Ahmaddinejad, as the first speaker, focused on to be efficient, sustainable and profitable. Any ex-
what he described as an inherent right of security pansion in its use must be done safely and securely,
threatened by the United States, UN Secretary Gen- and without increasing the proliferation risk.
eral Ban Ki-moon put Iran on the spot for its non- In March this year, with the approval of the
compliance with the International Atomic Energy IAEA Board of Governors, I signed an agreement
Agency (IAEA) and the UN Security Council and not with Russia to establish a low enriched uranium
accepting the Security Council’s nuclear fuel ex- reserve to help assure supplies of nuclear fuel to
change plan. Member States. Other possible assurance of supply
mechanisms are under discussion.

56 Pan Africa & World Review 2nd Quarter 2010

International/Peace & Security Nuclear Non-Proliferation Review Confab
Nuclear technologies provide unique tools to clear cooperation. At present, the Agency is work-
meet the basic needs of human beings. To take one ing to resolve important safeguards implementa-
example, nuclear medicine and radiotherapy are tion issues in three States.
very effective in the diagnosis and treatment of The Democratic People´s Republic of Korea
cancer. The IAEA is now helping developing coun- (DPRK) has not allowed the Agency to implement
tries to fight cancer through our Programme of Ac- safeguards since 2002 and, therefore, the Agency
tion for Cancer Therapy (PACT). cannot draw any safeguards conclusion for the
The application of nuclear technology in plant DPRK. In April 2009, the DPRK ceased all coopera-
breeding, food irradiation, animal health and pest tion with the IAEA in the implementation of the ad
control is making valuable contributions to enhanc- hoc monitoring and verification arrangement pur-
ing global food security. Nuclear technology is also suant to the Six-Party Talks process.
useful in water management and environmental In the case of Iran, the Agency continues to
monitoring. verify the non-diversion of declared nuclear mate-
In any use of nuclear technology, safety and rial, but remains unable to confirm that all nuclear
security must always be ensured. While the primary material is in peaceful activities because Iran has
responsibility lies with Member States, the Agency not provided the necessary cooperation. I continue
has an important role to play in these areas. to request Iran to take steps towards the full imple-
Nuclear safety has improved considerably mentation of its Comprehensive Safeguards Agree-
since the Chernobyl disaster in 1986. However, we ment and relevant resolutions of the IAEA Board of
can never be complacent and need to remain vigi- Governors and the United Nations Security Council,
lant. The IAEA is the custodian of the relevant inter- and to clarify activities with a possible military di-
national safety conventions and standards and pro- mension.
vides practical assistance to Member States. For As far as Syria is concerned, the Agency has
example, IAEA peer review missions bring experts not been able to make progress towards resolving
together to study individual countries´ nuclear questions related to the nature of the Dair Alzour
safety systems and make recommendations on how site destroyed by Israel and other locations. Syria
to remedy possible weaknesses. has not cooperated with the Agency since June
Great progress has also been made in making 2008 in this regard. I continue to request Syria to
nuclear and radioactive materials more secure. This engage with the Agency on all outstanding issues.
has helped States to counter the risk of nuclear ter- Adherence to IAEA comprehensive safeguards
rorism, which remains a real and immediate threat agreements (CSAs) and additional protocols (APs)
to international security. The IAEA is widely recog- has been increasing, but more should be done.
nized as the focal point for strengthening efforts in At present, 20 NPT parties have still not
this area. The support expressed for our work by brought comprehensive safeguards agreements
many heads of state and government at the recent into force. I strongly encourage all remaining NPT
Nuclear Security Summit in Washington was very parties to conclude and implement CSAs.
encouraging. Thirty-two States have brought additional pro-
The Final Document of the 2000 NPT Review tocols into force since 2005, bringing the total
Conference called for expanded use of the Agency´s number now in force to 98. The additional informa-
Technical Co-operation Programme. The pro- tion and broader access for IAEA inspectors pro-
gramme has grown since then, and the annual re- vided for in the AP are essential for the IAEA to ob-
sources of the Technical Cooperation programme tain a much fuller picture of existing and planned
now amount to more than $100 million. We imple- nuclear programmes and nuclear material holdings
ment projects in more than 120 countries and terri- of States with comprehensive safeguards agree-
tories. However, more efforts are needed to ments. The AP is of vital importance for the Agency
achieve sufficient, assured and predictable funding to be able to provide credible assurance not only
of technical cooperation. that declared nuclear material is not being diverted
In the 2000 Final Document, States party to from peaceful uses, but also that there are no un-
the NPT recognized that IAEA safeguards are a fun- declared nuclear material and activities in a State. I
damental pillar of the nuclear non-proliferation re- urge all States to bring APs into force.
gime, play an indispensable role in the implementa- Nuclear-weapon-free zones make an impor-
tion of the Treaty and help to create an environ- tant contribution to achieving a nuclear-weapon-
ment conducive to nuclear disarmament and nu-
57 Pan Africa & World Review 2nd Quarter 2010
International/Peace & Security Nuclear Non-Proliferation Review Confab
free world. Since the last Review Conference, the Against this background, I welcome the new
Central Asian Nuclear Weapon-Free Zone Treaty START Treaty concluded between the Russian
and the African Nuclear Weapon Free Zone Treaty Federation and the United States last month as a
have entered into force. step forward in nuclear disarmament.
I would like to recall that the IAEA General
Conference has adopted resolutions in recent years Mr. President,
on the establishment of a nuclear-weapon-free A successful NPT Review Conference is indispensa-
zone in the Middle East. Last year´s General Confer- ble because it will enhance confidence in the non-
ence also adopted a resolution on Israel´s nuclear proliferation regime, which in turn will provide
capabilities. I am following up on these resolutions the Agency with a stronger basis for our work in
as requested by the General Conference. all areas.
Finally, nuclear disarmament is an area of
great interest for the IAEA and the Agency has a I wish you every success in the coming weeks.
role to play through verification activities. Progress
in nuclear disarmament has a positive impact on
non-proliferation efforts and vice versa.

Nuclear Non-Proliferation Treaty Review Conference

White House Final Document Review
Office of the Spokesman attendance has been found to be in noncompli-
Washington, DC ance with its safeguards obligations.) Action 27
May 28, 2010 • Underscores the importance of the IAEA exercis-
ing fully its mandate and authority to verify
The consensus Final Document adopted today at the states’ nuclear activities, including the absence
Nuclear Non-Proliferation Treaty Review Conference of undeclared activities. Paragraph 24
advances the President’s vision for the peace and • Supports strengthening the IAEA and assuring it
security of a world without nuclear weapons and a has sufficient resources to effectively meet its
realistic path to achieve that goal. It includes calls safeguards responsibilities, a key priority of the
for substantive measures to strengthen the nonpro- United States. Paragraphs 24 and 25 and Action
liferation regime and establishes benchmarks for 33
future progress. This Final Document reaffirms the • Calls for strengthened export controls, including
strong support of the international community for whether a recipient has brought into force IAEA
the Treaty as the cornerstone of the international safeguards obligations when making decisions
nonproliferation regime. on exports of nuclear technology. Actions 35-37
• Urges parties to improve standards to combat
Specific text adopted in the Final Document in- illicit trafficking in nuclear materials and become
cludes: parties to the International Convention for the
Suppression of Acts of Nuclear Terrorism. Action
Non-Proliferation: 45
• For the first time in an NPT document, endorses
the Additional Protocol, together with a compre- Compliance:
hensive IAEA safeguards agreement, as the en-
• Underscores the importance of addressing com-
hanced standard for verification of the NPT.
pliance matters in order to uphold the integrity
Paragraph 19 and 25 in the President’s State-
of the NPT and IAEA safeguards system. Action
• Encourages all parties to conclude and bring into
• Reinforces the role of the UN Security Council to
force additional protocols. Action 28
take appropriate measures in cases of violations
• Emphasizes resolving all cases of noncompliance
reported to it. Paragraph 11 in the President’s
with safeguards obligations in full conformity
with the IAEA statute. (Only one state party in
58 Pan Africa & World Review 2nd Quarter 2010
International/Peace & Security Nuclear Non-Proliferation Review Confab
• For the first time in any NPT final document, U.N. Security Council votes to
the Review Conference has addressed abuse of
the Treaty’s withdrawal provisions, a major impose new sanctions on Iran
stated U.S. objective, recognizing the view that
withdrawing parties are responsible for viola- The U.N. Security Council on Wednesday, June 9th
tions committed while a party to the treaty and voted 12 to 2 to impose a fourth round of sanctions
that nuclear suppliers should incorporate dis- on Iran, bringing to a close months of diplomatic ef-
mantling and/or return clauses in the event of forts by the Obama administration to penalize Te-
withdrawal. Paragraphs 118-122 in the Presi- hran for building a covert nuclear facility and accel-
dent’s Statement erating its enrichment of uranium.
Brazil and Turkey voted against the measure,
Disarmament: while Lebanon abstained. The measure modestly
• Supports the President’s vision of working for a reinforces a range of economic, high-technology and
world without nuclear weapons. Action 3 “…to military sanctions against Iran, and targets more
undertake further efforts to reduce and ulti- than 40 Iranian elites and companies linked to the
mately eliminate all types of nuclear weap- nation's nuclear program with a travel ban and an
ons….” asset freeze.
• Applauds the achievement of the U.S.-Russian The measures imposed are not expected to
New START agreement and the goal of pursuing have the crippling impact Washington would have
deeper reductions of all types of nuclear weap- liked, but having Russia and China on board along
ons. Paragraph 90 and Action 4 with Britain and France was a major achievement
• Supports the start of negotiations, without de- for the Obama administration.
lay, of a fissile material cutoff treaty – a top Brazilian President Luiz Inacio Lula da Silva said
U.S. priority. Paragraph E.i and Action 15 the resolution's supporters "threw out an historic
• Reaffirms the importance of the early entry opportunity to peacefully negotiate the Iranian nu-
into force of the Comprehensive Nuclear Test clear program," and he called the new sanctions "a
Ban Treaty, calls upon all states to refrain from mistake" implemented "just for spite," according to
nuclear weapon test explosions in the mean- the state-run Agencia Brasil news agency.
while, and supports the full development of the In mid May Brazil’s president and Turkey’s
CTBTO’s verification regime. Actions 10- 14 prime minister brokered a deal with the Iranians in
Tehran whereby Iran would send its uranium to Tur-
Peaceful Uses of Nuclear Technology: key for enrichment. However, Washington and its
• Emphasizes that peaceful uses of nuclear en- European allies snubbed the deal, insisting that Iran
ergy should be made available to all Parties in should abide by the Security Council offer that its
conformity with the NPT’s nonproliferation pro- uranium be enriched in France and Russia.
visions. Action 57 However, the uranium swap deal with Turkey
• Encourages all to contribute to the U.S. Peace- brokered by Turkish Prime Minister Erdoğan and Da
ful Uses Initiative, a Presidential initiative an- Silva did not impress China and Russia, apart from
nounced by Secretary Clinton in the U.S. open- being flatly rejected by the NATO allies on the Secu-
ing statement at the Review Conference Gen- rity Council.
eral Debate on May 3. Action 55 United States UN Ambassador Susan Rice com-
• Supports efforts to pursue agreement on inter- mended the vote as a “decisive move against Iran’s
national fuel banks and related multilateral nuclear program”, which she described as ‘a grave
mechanisms for assurance of nuclear supply threat to international security.”
and related nuclear fuel services. Action 58 Iran’s President Mahmoud Ahmaddinejad said
the sanctions would have little effect on Iran, dis-
Nuclear Security:
missing them as “pesky flies.”
Acknowledges the Nuclear Security Summit and
Iranian Parliament National Security Committee
carries forward its recommendations, including rec-
head Allaedin Boroujerdi said his country would re-
ognition of the IAEA’s role in promoting nuclear
view the level of cooperation with the International
security cooperation and best practices and the
Atomic Energy Agency.
need to minimize the use of highly enriched ura-
nium in the civilian sector. Paragraphs 66-70 and
Action 61
59 Pan Africa & World Review 2nd Quarter 2010
International Affairs/ UN Security Council/Nuclear Security
June 9, 2010
Department of Public Information • News and Media Division
New York

Security Council
Security Council Imposes Additional
SC/9948 Sanctions on Iran,
Voting 12 in Favour to 2 Against, with 1 Abstention

Brazil, Turkey, Lebanon Say Tehran Declaration Could

Boost Diplomatic Efforts, While Sanctions Represent Failure of Diplomacy

E xpressing deep concern about Iran’s lack of

compliance with its previous resolutions on
ensuring the peaceful nature of its nuclear pro-
peaceful nature of Iran’s nuclear programme, the
Council noted in that regard the efforts by Turkey
and Brazil for an agreement on the Tehran Re-
gramme, the Security Council imposed additional search Reactor, which “could serve as a confi-
sanctions on the country today, expanding an dence-building measure”. It also stressed the will-
arms embargo and tightening restrictions on finan- ingness of the so-called E3+3 — China, France,
cial and shipping enterprises related to Germany, Russian Federation, United Kingdom
“proliferation-sensitive activities”. and the United States — to further enhance diplo-
matic efforts to promote dialogue and consulta-
Adopting resolution 1929 (2010) by a vote of 12 in tions towards a negotiated solution.
favour to 2 against (Brazil, Turkey), with
1 abstention (Lebanon), the Council also re- The Council affirmed that it would suspend the
quested the Secretary-General to create a panel of sanctions if, and so long as, Iran suspended all
experts to monitor implementation of the sanc- enrichment-related and reprocessing activities, as
tions. Annexed to the text containing the fourth verified by the International Atomic Energy
round of sanctions imposed on Iran were meas- Agency (IAEA), to allow for good-faith negotia-
ures directed against 41 new named entities and tions. It also affirmed its determination to apply
individuals, including one scientist and enterprises further measures if Iran continued to defy the just
linked to the Islamic Revolutionary Guard and the -adopted text as well as previous resolutions.
defence industry, as well as banks and the national
shipping line. Speaking before the vote, the representatives of
Brazil and Turkey said they had voted against the
By other terms of the resolution, the Council de- text because it ran against their efforts to bring
cided that Iran should not acquire interests in any about a negotiated solution through the agree-
commercial activity relating to uranium enrich- ment on the Tehran Research Reactor and the
ment and other nuclear materials or technology in related Tehran Declaration of 17 May, which pro-
other States, and that all States should prevent the vided a new opportunity for diplomacy.
transfer to Iran of any tanks, armoured combat
vehicles, large-calibre artillery systems, attack heli- Following the vote, Lebanon’s representative said
copters, or missiles and related systems or Iran had a right to the peaceful use of nuclear en-
parts. It also called upon all States to report to the ergy as well as an obligation to adhere to the safe-
relevant Sanctions Committee, within 60 days, on guards regime, adding that the fuel swap deal it
the steps they had taken to implement the neces- had negotiated with Brazil and Turkey provided a
sary measures. way towards a resolution of the problems that
had arisen. The sanctions regime, on the other
Emphasizing the importance of diplomatic efforts hand, represented a painful failure of diplomatic
to find a negotiated solution guaranteeing the efforts, he added.
60 Pan Africa & World Review 2nd Quarter 2010
International Affairs/ UN Security Council/Nuclear Security
Security Council Imposes Additional Sanctions on Iran

Security Council

June 9, 2010

(L-R) British Ambassador to the U.N. Mark Lyall Grant , Chinese Ambassador to the U.N. Li Baodong, Rus-
sian Ambassador to the U.N. Vitaly Churkin and U.S. Ambassador to the U.N. Susan Rice chat before the
start of a U.N. Security Council meeting on Iran June 9, 2010 in New York City. The Security Council is ex-
pected to vote today for new sanctions against Iran for its suspect nuclear program.

Speaking on behalf of the Foreign Ministers of the Iran was more powerful today and would not bow
E3+3 countries, the representative of the United to such pressures, he asserted, emphasizing his
Kingdom said today’s action affirmed both the in- country’s right to use nuclear technology for
ternational community’s concern about Iran’s nu- peaceful purposes, and stressing that it had car-
clear programme and the need for the country to ried out “robust” cooperation with IAEA. The
comply with the requirements of the Security Coun- Council was showing its political biases by its reac-
cil and the IAEA Board of Governors, while also tion to the deal on the Tehran Research Reactor,
keeping the door open for continued engagement and its lack of action on Israeli violations of the
between the E3+3 and Iran. The Ministers wel- Treaty on the Non-Proliferation of Nuclear Weap-
comed and commended all diplomatic efforts in ons and the threats made against Iran by that
that regard, especially those recently made by Bra- country and the United States, he said.
zil and Turkey on the specific issue of the Tehran
Research Reactor. “We expect Iran to demonstrate In their national statements, Council members
a pragmatic attitude and to respond positively to and E3+3 countries all paid tribute to the efforts
our openness towards dialogue and negotiations,” of Turkey and Brazil, which had resulted in the
he said. Tehran Declaration, but noted that the agreement
did not deal with core issues such as compliance
Iran’s representative, however, placed the resolu- with IAEA, uranium enrichment in defiance of the
tion within the context of pressures exerted on his Council and the revelation of the previously unde-
country over many decades by some of the same clared facility at Qom.
Powers supporting today’s resolution. Those pres-
sures included suits to prevent Iran’s nationaliza- Also speaking today were the representatives of
tion of its own oil, and the military coup that had the United States, France, Uganda, Russian Fed-
reinstalled the Shah. The clear message was that eration, Japan, Austria, China, Nigeria, Bosnia and
no one should be allowed to endanger the vital in- Herzegovina, and Mexico.
terests of the capitalist world, he said.
The meeting began at 11:15 a.m. and ended at
12:59 p.m.

61 Pan Africa & World Review 2nd Quarter 2010

International/Economy/ Exchange Rates

Wednesday, June 30, 2010

The August futures price for a

barrel of crude oil fell by 31
cents Wednesday after a gov-
ernment report revealed that
the U.S. supply of oil remains
high in a weak demand envi-

Oil settled at $75.63 a barrel

after trading from $74.39 to
$76.83 Wednesday. The U.S.
Department of Energy's En-
ergy Information Administra-
tion (EIA) reported that the
country's total crude oil stock-
pile was 363.1 million barrels
as of June 25, down 2 million
barrels from the preceding
Friday. Also, concerns about
ongoing financial problems in
Europe, an economic growth
slowdown in China, and fears
of another recession in the
U.S. continue to have a dulling
effect on oil demand expecta-

♦ Gold closed June 30, at $1,242 per oz ♦ Arabica coffee futures closed on Tues-
with exchange stocks of 10.925 million day, June 29, at $1.6150 a pound ($3,230
ounces. a ton) on ICE Futures U.S
♦ Sliver closed June 30 at $18.32 a Troy
ounce with exchange stocks of 114.055 ♦ Cocoa closed June 30 selling at $3,755mt.
million Troy ounces ♦ Live Cattle June 10 sold for $91.25
♦ Platinum June 10 sold at $1,530 a Troy ♦ Corn June 10 sold for $354.25 a bushel
ounce ♦ Soybeans June 10 sold for $948.50 a
♦ China’s high priced aluminum was selling bushel
at $2,3000 per ton
♦ Copper June 10 sold at $2.94 a pound

62 Pan Africa & World Review 2nd Quarter 2010

International/Economy/ Exchange Rates

Wednesday, June 30, 2010

Natural gas benefited from

forecasts of a hot U.S. Fourth
of July week. The front-month
natural gas contract price in-
creased by 7 cents Wednes-
day, settling at $4.62.

Weather forecasts indicate

above-average temperatures
throughout the eastern half of
the U.S., which would trans-
late into greater demand for
electricity. The intraday range
for natural gas was $4.48 to

The July futures price for a

gallon of gasoline settled a
penny lower at $2.06. Gaso-
line ranged from $2.03 to
$2.08 during Wednesday's
trading session.

African Minerals News Briefs

♦ Burkina Faso has projected gold production for 2010 to be 20 MT and
is seeking foreign mining investors
♦ Ghana on April 5, 2010 reported that gold production reached 2.9 mil-
lion ounces in 2009, up 12% over 2008. Revenue from gold rose from
$2.2 billion to $2.8 billion
♦ Ghana Bauxite Company revenue fell from $19.8 million in 2008 to
$10.9 in 2009
♦ Ghana Manganese Company revenues increased from $62.3m to
$64.9m despite a 7% drop in output

63 Pan Africa & World Review 2nd Quarter 2010

International/Economy/ Exchange Rates

Wednesday, June 30, 2010

Quarterly performance tal-

lies started to trickle in as
the last trading day of the
month got underway this
morning. Commodities tabu-
lated their worst quarter
since late 2008/early 2009 as
a 10% decline in the complex
was affected by Chinese
growth contraction fears and
investor sentiment about the
fate of the rest of the world’s
economies. Gold posted a
third-best showing with a
12% gain, right behind natu-
ral gas and coffee (which
rose 20%).

Meanwhile, silver turned up

in fourth place with a 6.5%
appreciation percentage.
What did not do well? Indus-
trial metals, for the most
part. Consider zinc’s 25%
plunge, or nickel’s 23% fall.
Bellwether copper fell 16%
on the quarter and black
gold dropped more than 9%
Daily Forex Analysis (June 30, 2010) since the end of March. Bad
By Finexo as the quarter was for com-
modities, the index of world
GBP/USD equities showed a 13% de-
cline in values for the trimes-
The Pound has been a big winner this week, as it continues to appreciate ter.
against the Dollar. However waning risk appetite may affect the GBP/USD
should the pair fall below the $1.50 level. UK Gilts have been sold off as a
result of comments that the recent rise in inflation may force the Bank of
England to tighten its monetary policy earlier than it had originally intended;
however this remains a minority view on the MPC, and generally sentiments
are towards a medium-term drop in inflation. According to some analysts,
this morning’s unexpected fall in the UK housing price index could indicate
that the UK housing market is headed for another dip - an event that would
weigh heavily on the British currency.

64 Pan Africa & World Review 2nd Quarter 2010

International/Economy/ Exchange Rates

Wednesday, June 30, 2010

Then again, one could have

bought the Shanghai stock
market –whose SCI barometer
fell 27% in the current year.
Such dismal performance has
prompted more than one con-
trarian call for a giant rally.
Morgan Stanley analysts envi-
sion something on the order
of a 65% rally in the Shanghai
index, give or take one year.
Yesterday however, that mar-
ket fell 4.3% after the Confer-
ence Board revised its leading
economic index for the coun-

The Dow, in turn, lost 268

points (2.7%) and dipped be-
neath the 10K level as the
same Conference Board’s
consumer confidence gauge
US stock market daily report (June 30, 2010, Wednesday)
crumbled on economic fears.
Translation: what will happen
Despite good news that European banks won't need as many loans as first an- if the US consumer is in no
ticipated, stocks fell on disappointing news from today's ADP report. Today's mood to consume at a time
report showed that the job market gained less than expected. ADP reported when the slack in the econ-
the U.S. economy gained 13,000 jobs in June; in April there was a rise by
omy is nearly as wide as any
57,000. Today's report was rather disappointing; analysts' were looking for an worn by the zoot suit rioters
increase by 61,000. Investors took today's news as a warning for what's to in 1943 in Los Angeles? The
come; the government is set to release this week's big job report on Friday.
economic pattern letter that
Analysts' are predicting a loss of 130,000 jobs in tomorrow's report. In other
comes to mind is just two al-
news; Chicago Purchasing Managers Index fell to 59.1% this month. In May, the phabet positions ahead the
index showed a reading of 59.7%, anything over 50% indicates business
letter "Z" according to some…
growth. This month's results were relatively the same as analysts' expectations.
In Europe; investors were happy to hear that the European Central Bank had to
lend less money to fewer banks than originally expected. 171 banks borrowed a
total of 131.9 billion from the Central Bank, instead of the 210 billion they ex-
pected. News from the European Central Bank may mean that banks in Europe
aren't as bad off as investors were thinking. Today, the euro rose against the
dollar after the positive news was released. Asian markets continued to fall to-
day; the Nikkei fell 2% as the Shanghai Composite fell 1.1%. Stocks were
choppy today after the ADP report; the Dow was down over 40 points with less
than a half hour left in the session. Commodity prices fell today; gold rose
$3.50 to $1,245.50 and crude oil fell $0.31 to $75.63 per barrel.
65 Pan Africa & World Review 2nd Quarter 2010
International/Economy/ Exchange Rates

Wednesday, June 30, 2010

The euro regained some of

the ground it lost on Tues-
day this morning (it rose to
above 1.2275 against the
greenback), as the ECB an-
nounced that loan demand
by the region’s banks was
some 30 billion euros
lower than anticipated.
Such lessened need for
funding may signal a better
state of health among
European banks than some
market participants are
seen as perceiving. How-
ever, the carry trade may
continue its drunken orgy
in various assets and still
be able to tap into essen-
tially free money until the
last quarter of 2010 ac-
cording to analysts.

Daily Forex Analysis (June 30, 2010)

By Finexo
Uncertainty flooded the markets yesterday, as concerns escalated over the global economic recovery follow-
ing a disappointing release in U.S. consumer confidence, a downward revision to China's leading indicator in-
dex and an unanticipated rise in the Japanese unemployment rate.

Adding to market jitters is the Thursday’s upcoming deadline for the European Banks to repay 442 billion Euros
to the ECB. On Thursday, time runs out for the ECB financing program which investors fear could result in a
potential liquidity shortfall of over 100 billion Euros in the financial system. Banks across the Euro Zone, Spain
in particular, have been finding it extremely difficult to obtain liquid funding in the commercial markets, espe-
cially with inter-bank funding practically non-existent. Spanish banks have been petitioning the ECB to take ac-
tion to ease the systemic fallout from the expiry of funding program.

The Canadian Dollar touched on its lowest level in three weeks as concerns escalated over the European debt
crisis and signs of a global economic slowdown pushed traders out of higher- yielding assets such as stocks and
commodities. The Loonie slipped 2.1% to C$1.0575 per U.S Dollar yesterday, its lowest level since June
8th. Later today, Stats Canada is set to release the nation’s GDP for the month of April. Canada’s GDP grew by
0.6% in March and by 6.1% in the 1st quarter of this year. This time around, the market expects the growth to
continue with a 0.2% expansion.
66 Pan Africa & World Review 2nd Quarter 2010
International/Economy/ Exchange Rates

Wednesday, June 30, 2010

Gold prices opened with

modest losses this morning
after an overnight range
that remained on the nar-
row side (between $1,238
and $1,245). Spot gold bul-
lion fell by $3.30 to the
$1,237.50 level on the bid
side. The rest of the com-
plex showed declines
across the board, with the
exception of silver which
added $0.07 to rise to
$18.58 mark the ounce.
The summer lull could be
upon the markets follow-
ing the Independence Day
holiday. Trading desks we
tang up overnight already
show neatly arranged
workstations and clean (!)
coffee mugs on the cafete-
ria racks.

No change was reported in

rhodium at $2,440.00 per
ounce. Carmaker Ford is
reported to be ready to
pay some $4 billion in debt
with the aim of bolstering
its balance sheet. Its shares
surged nearly 4% on the

67 Pan Africa & World Review 2nd Quarter 2010

International/Economy/ Exchange Rates

Wednesday, June 30, 2010

This morning’s ADP report

indicated that 13,000 jobs
were added to the US econ-
omy’s private sector in June
–less than the expected fig-
ure of circa 60,000 and one
of the catalysts to a drop in
US stock index futures just
half an hour prior to their

Indian buyers remained side-

lined as gold at near 19,000
rupees per ten grams contin-
ued to weigh on their minds
instead of the bazaar own-
ers’ scales when ringing up a

In fact, Indian market partici-

pants and analysts are zero-
ing in on the same discon-
certing signs that show a
European stock market, economy and companies update gold market totally depend-
(June 25, 2010) ent on ETFs and derivative
speculation vehiles’ (futures/
European equities opened the session flat to marginally higher, following options) off-take. As such,
the sharp losses seen on yesterday's session. In terms of specific sectors, they see potential declines in
today's losses are being led by resource related companies, and financials value that might not be of
are trading mixed. Factors weighing on markets include concerns about the the minor variety.
global recovery, the widening of Greece's CDS spreads to new record levels
and concerns related to Eastern Europe

Euro/US Dollar Forex Analysis June 30, 2010

The Euro edged up against the Dollar this morning, after a report
showed that Americans were becoming increasingly distressed over the
outlook of for their jobs and income. The EUR/USD touched on $1.2223
as the market reacted to yesterday’s unexpected drop in CB confidence

Yesterday, the Euro hit a 2-week low against the Dollar, as market con-
cerns escalated over Thursday’s expiration of a European Central Bank
refinancing program. The Euro touched on $1.2135, its lowest level
since June 14th.
68 Pan Africa & World Review 2nd Quarter 2010
DAR ES SALAAM/TANZANIA, 5MAY10 - Kanayo Nwanze President, International Fund for Agriculture Development
(IFAD), Rome, Jakaya M. Kikwete, President of Tanzania and Cassandra Waldon, Director Communications IFAD
captured at the World Economic Forum on Africa held in Dar Es Salaam, Tanzania, May 5, 2010.

Africa/East Africa Community
2 June 2010

EAC Develops Standards for Cassava, Potato Products

Kampala — Standards for cassava and potato prod- instance, launched a Pan African Cassava Initiative
ucts in the five East African Community (EAC) coun- that seeks to tap the enormous potential of the crop
tries have been developed, harmonized and recom- for food security and income generation.
mended for approval for implementation. Consequently, cassava has been prioritized as a
The process towards regional root crops stan- strategic commodity in the Comprehensive African
dards (focusing on cassava and sweet potato) was Agricultural Development Programme Pillar III and IV
spearheaded by the Uganda National Bureau of as a means to increasing food supply, reducing hunger
Standards (UNBS) in 2006. and improving responses to emergency food crises.
UNBS compiled a list of 14 standards, and us- The regional body's statement however, indicates
ing the EAC template, formally sent the proposed that some of the factors constraining realization of the
standards to the other four countries as zero drafts potential of root crops, including cassava and potato,
for consideration and adoption as regional stan- include market failures.
dards. "This is manifested in lack of key institutions and
The project comes into force with the approval frameworks to enhance efficient marketing along the
of the EAC Standards technical sub-committee after commodity value-chain. Most countries in ECA lack
a meeting held in November 2009 in Arusha, Tanza- standards necessary for commercial utilization of cas-
nia. sava and potato," reads the statement in parts
The Association for Strengthening Agricultural In addition, value-addition technologies are still
Research in Eastern and Central Africa (ASARECA), a under-utilized due to a lack of clear guidelines on stan-
sub-regional research organization supported tech- dards and supportive policies.
nical departments of the EAC states' national stan- "Efforts by key stakeholders in the value-chain
dard bodies to convene national consultative work- are disintegrated with no clear partnership structures
shops to discuss the zero drafts. crucial to a well-functioning producer to market value-
Dr. Michael Waithaka, a programme manager chain," says Waithaka.
in charge of policy analysis and advocacy at ASAR- Adding that most root crops are perishable, high-
ECA, said 11 draft standards were presented to the volume, low-value commodities in their raw state,
Eastern Africa Standards technical sub-committee thus the need for processing standards to ensure a
at a meeting held in Arusha recently. reduction in post-harvest losses and the procurement
"The committee recommended the adoption of surplus quantities for processing and marketing.
of the standards by the EAC Council of Ministers in Improved storability, reducing unit marketing
their next session," Waithaka said in a statement. costs and ultimately stabilizing prices received by
According to the statement, UNBS collated the farmers for their food produce, value addition through
comments and prepared them for discussion at a product development were proposed as remedies that
regional forum held in March this year in Kigali. can enable smallholders to access different niche mar-
The forum drew participants from the national kets.
standards technical committees, International Insti- Cassava and potato, despite their strategic role in
tute for Tropical Agriculture (IITA), the International reducing hunger in Africa, also hold high industrial po-
Institute for Potato Research, cassava and potato tential for food, feed and industrial raw materials
researchers, and the vice chairperson of Uganda's though their value-chain is not fully developed.
parliamentary committee on agriculture and envi- Meetings held in the interest of the food im-
ronment, Lastus Serunjogi. provement projects recommended that in order to
The module on root crops was aligned with enhance the value of the crops, conducive policy
ASARECA's cassava mega-project that was devel- frameworks that support commercialization of these
oped in 2008, titled "Unlocking the potential of cas- crops is necessary.
sava in ECA," which pursues interventions along the
whole cassava value-chain.
Waithaka was happy that regional research on
food was intensifying efforts, saying the New Part-
nership for Africa's Development (NEPAD) had, for
70 Pan Africa & World Review 2nd Quarter 2010
Africa/Economic Community of West African States (ECOWAS)

ECOWAS Council of Ministers Adopts

Regional Industrial Policy, Calls for Speedy
Action Plan Implementation

SPONSOR WIRE/June 3, 2010

Abuja - Nigeria — The ECOWAS
Council of Ministers has adopted
the West African Common Indus-
trial Policy (WACIP), its action plan
and supplementary acts and called
on the ECOWAS Commission to
take all necessary steps to ensure
their speedy implementation.
The three documents are
based on a global vision that will
enable Member States benefit
from their comparative advantages
and complementarities. WACIP, in
particular, seeks to diversify and
broaden the region's industrial pro-
duction base by progressively raising the local con- ECOWAS Commission Headquarters, Abuja
tent of such products to an average of 30 per cent
by 2030 through support for the creation of new in charge of Defence and Security, among others.
industrial production capacities and the develop- The 2010 Interim Report of the Commission's
ment and upgrading of the existing ones. It is also President gave an overview of recent economic
aimed at progressively increasing the manufactur- developments in the world economy and their im-
ing industry's contribution to the regional gross do- plications for Africa, particularly West Africa, the
mestic product (GDP) to an average of over 20 per regional economic performance, a progress report
cent in 2030, from its current average of between on the implementation of Community work pro-
six and seven per cent. grammes between November 2009 and May 2010,
The policy is designed to help improve intra- the challenges and the way forward in 2010 and
Community trade from the present 13 per cent to beyond. The Council, which is an organ of the Com-
40 per cent by 2030 and increase the volume of munity and composed of ministers responsible for
exports of manufactured goods from West Africa to ECOWAS affairs in Member States, also adopted
the global market from the current 0.1 per cent to the recommendations of the Administration and
one per cent by 2030. This will be done through the Finance Committee (AFC). These included the sup-
enhancement and development of skills, industrial plementary budgets for ECOWAS disaster response
competitiveness and quality infrastructure, particu- in Member States, the GIABA anti-money launder-
larly in the areas of information, communication ing projects, the ECOWAS Commission's pro-
and transport. The Council, which ended its three- grammes in education, labour and employment,
day mid-year meeting late on Wednesday, 2nd June the rehabilitation of the Commission's headquar-
2010 in Abuja after reviewing various programmes ters and the 10th anniversary celebration of the
and activities of the institutions of the Community, Community Court of Justice which comes up later
also adopted the reports of the President of the in 2010. Furthermore, the Council endorsed the
ECOWAS Commission, the Financial Controller, the report of the 11th Ordinary Assembly of Health
preceding meeting of the Administration and Fi- Ministers of ECOWAS, which include a resolution
nance Committee, the 8th Ad Hoc Ministerial Com- on the prevention and control of non-
mittee on GIABA and the meeting of the Ministers communicable diseases, the harmonization of cur-
71 Pan Africa & World Review 2nd Quarter 2010
Africa/Economic Community of West African States (ECOWAS)
ricula for the training of nurses and midwives, the
integration of primary eye care into primary health
care, the road map for universal access to malaria
control products and the regional framework to
accelerate the reduction of maternal and child mor-
tality in ECOWAS Member States.
The ministers also endorsed the recommenda-
tion of the Ministerial Monitoring Committee
(MMC) on the negotiation of the Economic Partner-
ship Agreement (EPA) for the creation of a free
trade area between West Africa and Europe. The
Council urged the West African negotiators to pro-
tect the interest of the region to enable the EPA
function as a tool for development in accordance
with the directives of regional leaders. The MMC's
report and recommendations highlighted out-
standing issues such as the EPA Development Pro-
gramme, the rules of origin and protocol on mutual
administrative assistance, Community levies, Most
ECOWAS Commission President James Victor Gbeho
Favoured Nation and Non- execution clauses, mar-
ket access offer and the determination of net fiscal gion's mediatory efforts in Guinea Bissau and
impact, the ECOWAS Common External Tariff, hub Guinea. While stating that the West African region
and capacity building project and the Aid-for-Trade is facing serious food, energy and financial crises,
issue. The Council set up a three-member ad hoc he said it was only through concerted action and
committee composed of Cape Verde, Cote d'Ivoire collaboration that these problems could be solved
and Nigeria to propose a mechanism for the rota- by re-energizing the integration process in the re-
tion of the positions of President, Vice President, gion.
Commissioners of the ECOWAS Commission, the Through ECOWAS, he said, the region has re-
Financial Controller, the Speaker of the ECOWAS corded some measure of success in the area of im-
Parliament and Judges of the Community Court of plementation of Community programmes which
Justice. The committee is also mandated to make will fast-track regional integration in virtually all the
recommendations for the posts and draw up a key areas. He argued that it is only through this
schedule of rotation of the Chairmanship of the rapid socio-economic transformation that our sub-
Authority of Heads of State and Government. They regional organization would be able to realize its
also agreed on a draft agenda for the 38th ordinary dream and aspirations of transforming it from an
session of the Authority of Heads of State and Gov- ECOWAS of States to an ECOWAS of peoples by the
ernment which will take place on 3rd July 2010 on year 2020. In his opening remarks, the President of
the Island of Sal in Cape Verde. the Commission, Ambassador James Victor Gbeho,
The summit will be followed by a special who was attending his first meeting of the Council
ECOWAS-Brazil Summit of Heads of State in June since assuming duty three months ago, expressed
2010 also in Cape Verde. In his welcome address at optimism that consistent with a 35- year tradition,
the opening of the Council meeting on Monday, both old and new members of the Council would
31st May 2010, Nigeria's Minister of State for For- work together as a coherent team towards the at-
eign Affairs, Dr. Aliyu Idi Hong, hailed the impres- tainment of Community objectives and the
sive turn-out of ministers as "a clear indication of achievement of the Strategic Vision 2020 of
our unflinching commitment to carry our regional ECOWAS. Ambassador Gbeho also called for a one-
organization to an enviable height that could ad- minute silence to be observed in honour of the late
dress the myriad of challenges facing ECOWAS re- President of Nigeria and last Chairman of the
gion at this time". He stated that under the Chair- ECOWAS Authority of Heads of State and Govern-
manship of Nigeria, the region had recorded some ment, Alhaji Umaru Musa Yar'Adua who died ear-
measure of success in the areas of peace and stabil- lier in the year.
ity as well as economic development in virtually all
spheres within the region, as testified by the re-
72 Pan Africa & World Review 2nd Quarter 2010
Africa/World Economic Forum

20th World Economic Forum on Africa

By Muhammed Kamil


T anzanian President Jakaya M. Kikwete

hosted African colleagues and members of
the World Economic Forum for its 2010 Africa
session from May 5th to 7th at the Mlimani City
Conference Centre on the outskirts of Dar Es Sa-
laam. Twelve African heads of state and govern-
ment took part along with over 1,000 participants
from 85 countries. Rethinking Africa’s Growth
Strategy was the theme of this 20th World Eco-
nomic Forum on Africa, which set out to examine
the changing global landscape and identify the
opportunities that can unlock Africa's growth po-
tential and remove the barriers to social and eco- Host Tanzanian President Jakaya M. Kikwete was emphatic
nomic progress in the coming years. Regional in- about Africa partnering with the world at large, but also
tegration and growth expansion, growth opportu- uncompromising on the importance of foreign investors giv-
nities and risks, and education were key issues on ing Africans the opportunity to become shareholders in their
the agenda. Discussions also addressed how a companies.
more conducive business climate and regulatory
bring together their knowledge and experience
reforms can encourage both local and interna-
to build the next Africa.
tional investments; and equally important, how
Host President Kikwete stressed agricul-
can low-carbon, sustainable development plans
ture as the foundation of African economy but
be designed for Africa's economic drivers, includ-
was also emphatic about the imperative of
ing its natural resources, agriculture and tourism.
partnerships with the outside world, noting
Millennium Development Goals to be achieved by
how small African economies are compared
2015 were also discussed.
not only to those of developed countries but
Mozambique’s President Armando Guebuza
also next to mega corporations. President Kik-
assured the world that Africa is lacking in neither
wete called for partnerships at local, bilateral
direction nor strategies, asserting at the May 6th
and international levels to help overcome the
plenary session: "We know what we want.., we
many obstacles faced by African nations.
know how to get it." However, a replay of the
“Africa’s potential is immense in terms of hu-
friction between business and government lead-
man and natural resources. It is a contradiction
ers that has been mounting worldwide as govern-
that Africa remains poor,” he said. “Poor as we
ments adopt popular policies and regulatory re-
are, our capacities are limited. We need part-
gimes aimed at reducing risk of another global
nerships with the private sector to invest in the
financial crisis was evident in the discussions.
development of the continent; we need ODA
Significantly however, the CEOs of South African
[Official Development Assistance], infrastruc-
and Indian based companies expressed perspec-
ture and services. We badly need FDI [foreign
tives in line with the vision and aspirations es-
direct investment].”
poused by African leaders. For example, Mr. Ajai
Advocating trade barrier removal, Kikwete
Chowdhry, founder and chairman of the HCL In-
told his audience at the May 5th plenary ses-
forsystems of India, in presenting his thoughts
sion, “Africa needs trade and market access.
and expectations for the meeting, said his expec-
The biggest [barrier] is supply side constraints.
tations are on how all participants can collectively
73 Pan Africa & World Review 2nd Quarter 2010
Africa/20th World Economic Forum on Africa
We need partnership and investment to develop
goods and services to sell to these markets. We
have a comparative advantage on the agricultural
side, but the trade distorting subsidies in devel-
oped countries are crippling Africa’s agriculture.”
The Tanzanian president reminded partici-
pants that East Africa gets “the least share of FDI
flows in the world,” which he said was only 0.35%
of the global aggregate, but cautioned that in-
vestments cannot be made without active partici-
pation of the local private sector. He acknowl-
edged that Africa would have to formulate politi-
cal and economic policies to enable the conti-
nent’s human and material resources to be opti-
Pat Davies, CEO,of Sasol, South Africa and Co-Chair of the
mally utilized. "Africa remains poor because World Economic Forum on Africa, speaks during a news confer-
these resources are underexploited. There is a ence at Mlimani City Conference Centre in Dar Es Salaam, Tan-
need to unlock this potential for the benefit of zania, Wednesday, May 5, 2010, ahead of the opening session
Africans," he said, adding that improved skills and of 20th World Economic Forum on Africa. AP photo
technology profiles were crucial to optimal po-
tential fulfillment. formed and concrete conversations that contrib-
Session Co-Chairs, Infosystems India’s Ajai ute to Africa turning the corner away from nega-
Chowdhry and Pat Davies, Chief Executive, Sasol, tive perceptions. Dlamini agreed with Chowdhry
South Africa, argued that Africa possessed rich on the importance of institutions that can deliver
human capital that needed to be made more pro- Africa’s needs, noting that there must be focus on
ductive. Noting that Africa’s population was now capacity building to this end.
over one billion, Davis maintained, “You’ve got Stressing the role of entrepreneurship,
the people, the market and the resources. It is a Dlamini, one of South Africa most distinguished
huge opportunity for Africa to become an engine young business executives, said, "We also need to
of growth globally.” ensure that we’ve got the right capabilities to
Looking at Africa from a continental perspec- enable Africans start and run companies that can
tive, Chowdhry observed, "India has a billion peo- succeed not just in Africa but also on the world
ple; so does Africa. We have very similar prob- stage,” adding, "If we educate our young people
lems; therefore we could have similar solutions and women, they stand better chances of unlock-
which we in India can bring into Africa. In this ing the continent's potential." Assessing Africa’s
connection Chowdhry stressed the importance of global potential in food supply, the Old Mutual
building effective institutions that are transparent South Africa CEO pointed to the continent’s vast
and deliver good governance. He also spoke of endowment of arable land, which in his view, if
technology transfer from India to Africa. He gave effectively and collectively utilized would be able
the example of India’s electronic voting machines to curb the crisis of food shortages not just for
which with 700 million people voting allows re- Africans but also make the continent “the bread-
sults to come out the following day. He moreover basket of the world.”
pointed out that technology is crucial in combat- Joergen Ole Haslestad, President and Chief
ing poverty, in providing information as well as in Executive Officer, Yara International, Norway
solutions, noting that information now available spoke in similar vein: “Unlocking Africa’s potential
to people at the village level is dramatically in the agriculture sector involves addressing the
changing their lives. challenges of infrastructure and red tape, as well
Mr. Chowdhry also spoke of mindset em- as someone ready to take the risk to invest. Suc-
powerment; a subject that was from him taken cess is generating successes and one has to do
up by Old Mutual South Africa CEO Mr. Kuseni that in close partnership,” he said. “We see huge
Dlamini, who pointed out that Africa has suffered changes in most countries in the willingness to
from a historical legacy of Afro pessimism. open up. This is the place to develop agricul-
Dlamini said one of the things he expected out of ture,” Haslestad concluded.
the WEF confab was that it would produce in-
74 Pan Africa & World Review 2nd Quarter 2010
Africa/20th World Economic Forum on Africa
Mozambique’s President Armando Guebuza,
speaking at the May 6 plenary session, echoed Kik-
wete, stressing the importance of agriculture and
inviting foreign investment in his country’s agricul-
ture and tourism sectors. While calling for invest-
ment partnerships, President Guebuza also
stressed reducing reliance on foreign aid.

Foreign Companies Accused of Tax Evasion

South African Finance Minister Pravin Gordhan,
speaking at the plenary session on May 6, main-
tained that Africa loses between $200 million and
$400 million annually to tax evasion by multina-
tional corporations that repatriate fraudulently Mozambique President Armando Guebuza assured the world
earned profits. "Businesses have the responsibility that Africa knows what it wants and how to get it
to pay taxes, to pay fair taxes," said the South Afri-
can Finance Minister, adding that Africa remained
the most competitive continent in which to do
business. In support of Pravin Gordhan’s asser-
tions, President Armando Guebuza was joined by
African Development Bank President Donald
Kaberuka in arguing that Africa lagged way behind
other parts of the world in revenue collection as a
percentage of gross domestic product. "Tax to GDP
percentage in Africa is still the lowest [in the world]
at only 7 per cent," said Dr Kaberuka.
Dr. Kaberuka, a former Rwandan Finance Min-
ister, pointed out that although Africa needed to
attract more foreign investments to boost its
economies, revenue collection remained an impor-
tant area for governments to finance its operations
and development programmes.
ArcelorMittal South Africa's Chief Executive
Officer, Ms Nku Nyembezi-Heita took exception to ArcelorMittal South Africa's Chief Executive Officer, Ms Nku
Mr. Gorhan’s claims, saying, “I find the Minister of Nyembezi-Heita berated Africa’s investment environment. Brit-
Finance’s views on taxation really strange.” Com- ish based ArcelorMittal is the world’s largest steel maker.
plaining about African business policy regimes, Ms
Nku Nyembezi-Heita, whose UK based steelmaker
is the world’s largest, criticized most African gov-
ernments and especially Pretoria for what she de-
scribed as inconsistent fiscal policies. She said in-
consistent policies made it difficult to decide on
investment plans, where one could not easily pre-
dict returns. She singled out Pretoria's recent
change in mining tax, saying it sent negative mes-
sages to investors who already view the continent
as too risky to invest. She argued that apart from
unreliable regulations which change overnight, the
continent has numerous problems including short-
age of reliable and affordable power supply. Mr.
Gordhan dismissed international investors who South African Finance Minister Pravin Gordhan defended
describe Africa as a risky place to do business as Africa’s investment climate
people out of touch with the reality.
75 Pan Africa & World Review 2nd Quarter 2010
Africa/20th World Economic Forum on Africa
The Tanzania Daily News report on the ple-
nary session noted, “Currently, there has been
growing resistance against government policies
and regulatory reforms by multinational mining
and telecommunication companies which have
made super-profits in the two sectors over the past
decade.” The newspaper mentioned in this con-
nection that mining companies are through the
Chamber of Mines contesting a proposed law
passed by Parliament recently that seeks to give
the country more benefits including taxes, from its
mineral resources. Also, foreign owned mobile
telecommunications companies which are listed at
their home country stock exchange markets are WEF on Africa venue Mlimani City Conference Centre on the
opposing mandatory listing at the Dar Es Salaam outskirts of Dar Es Salaam, Tanzania
Stock Exchange after three years of operations in
the country.
Sasol’s Pat Davies cautioned against dwelling
on things that were not exactly to some companies
liking and focusing on successful experiences and
evident opportunities. “Let’s focus on the suc-
cesses and grow more successes instead of spend-
ing energy on the barriers. It is critical that we
work together,” he said. Chowdhry added that
highly successful public and private partnerships in
India involving the ICT sector could serve as models
for Africa. Davies’ Sasol has had successful partner-
ships with the governments of Mozambique and
South Africa on a US$ 2 billion natural gas project
which have shown that given political and business
will, technology and innovation, barriers started
Co-Chair Prof. Anna Tibaijuka, Undersecretary
-General and Executive Director, United Nations
Human Settlements Programme (UN-HABITAT),
Nairobi, emphasized that within the framework of
globalization, Africa needs a level playing field. “To
realize Africa’s potential requires an environment
within which that potential can be realized. This
will require international solidarity, partnership Prof. Anna Tibaijuka, Undersecretary-General and Executive
Director, United Nations Human Settlements Programme (UN-
and a level playing field,” she said. Tibaijuka
HABITAT) said Africa must be developed for Africans
warned African leaders that they must better man-
age rapid urbanization which she described as constitute 51% of the continent’s population did
presently “chaotic”. not have equal access to the means of production.
"This (urbanization) is taking place, I am Pointing out that urbanization in Africa has now
afraid, in a very rapid and chaotic manner. So Af- reached 70% and many people are living in squat-
rica has to catch up with this scourge of rapid and ter settlements without access to safe water and
chaotic urbanization for the continent to be secure sanitation, "indeed to call a spade a spade without
for business and economic activities," she cau- dignity," she lamented.
tioned. Tibaijuka said that in the ongoing demo- Prof. Tibaijuka, who is from Tanzania, said that
graphic transition it is the women and children with WEF coming to Dar Es Salaam and East Africa
who normally bear the worse effects of inadequate generally, participants not familiar with the region
facilities and services. She said that women who
76 Pan Africa & World Review 2nd Quarter 2010
Africa/20th World Economic Forum on Africa

One of South Africa’s most distinguished young corporate executives Old Mutual CEO Kuseni Dlamini said it was time to
leave behind Afro pessimism and focus on capacity building in tandem with institutional efficiency

have to explore the environment of the African

continent, not only from the traditional re-
source perspective of Africa such as in extractive
resources, but with a view of developing Africa
for Africans. "Sustainable development in Africa
will have to pick a social perspective in order to
secure the interests of the people because then
and only then could we flourish," she advised.
Klaus Schwab, Founder and Executive
Chairman, World Economic Forum, noted that
this year’s meeting on Africa, the Forum’s 20th
and its largest to date, is a demonstration of
what multi-stakeholders can achieve together.
Yara International, Norway, President and CEO Joergen Ole
“We will work hard to make sure that this meet- Haslestad said there are evident huge changes in Africa which
ing makes a concrete contribution to the eco- is now the place to invest in agriculture.
nomic and social development of this great con-
tinent,” he said.

77 Pan Africa & World Review 2nd Quarter 2010

Africa/International Cooperation/Trade & Investment

Harnessing Continent's Potential

through Infrastructure Development
5 May 2010 and Entrepreneurship

U.S. Assistant Secretary of State for African Affairs Johnnie Carson African entrepreneur, philanthropist Mo Ibrahim

T he recent Fourth Annual Corporate Council

on Africa (CCA) U.S.-Africa Infrastructure
Conference brought together industry leaders
She said the lack of large-scale economies,
the high costs of electric power and a lack of
competition contribute to the high cost of infra-
from all sectors and policymakers from the structure in Africa. "Thin markets in Africa are
United States and Africa to shape the continent's often characterized by monopolies or cartels
economic future through foreign investment and leading to high profit margins for a limited num-
enterprise. ber of service providers, inefficiencies and there-
U.S. Assistant Secretary of State Johnnie Car- fore high prices,” she said.
son spoke to the April 28 conference about Af- A luncheon on day two of the conference,
rica's challenges. titled “Africa's Got Talent: Entrepreneurs in Ac-
"Africa cannot hope to close its development tion,” focused on getting investment capital to
gap or to achieve middle-income status without African businesses and on new ways to boost the
addressing infrastructure as a fundamental im- continent’s economic growth.
pediment to trade, investment and growth," he Dr. Mohammed Ibrahim, founder of a major
said. "Poor road, rail and harbor infrastructure mobile network, Celtel International, which he
adds 30 to 40 percent to the cost of goods traded sold in 2005, talked about the high cost of mov-
among African countries." ing goods across borders and the lack of infra-
Katherine Sierra, the World Bank's vice presi- structure. Ibrahim, who now heads a foundation
dent for sustainable development, talked about that bears his name, appealed for investors to
the bank’s efforts and pointed to the Africa Infra- get involved in Africa.
structure Diagnostic – a set of data to determine Many African countries have markets that
the status of infrastructure in African countries are sub-scale, he said, making market integration
and to help diagnose where development is most a necessity for success. “We have 53 African
needed. -
78 Pan Africa & World Review 2nd Quarter 2010
Africa/International Cooperation/Trade & Investment
Harnessing Continent's Potential through Infrastructure Development & Entrepreneurship

countries,” he said. “It's too many.” Salim Amin, chairman of Camerapix and
He decried the flow of capital out of Africa, A24 Media in Nairobi, praised the gathering,
particularly, most recently into Asian markets. saying that it gave him the chance to meet
“We go out of our way not to trade with each with innovators outside his industry and said
other,” he said. Only eight percent of Africa's he hoped to share ideas with fellow attendees
trading occurs within its borders, Ibrahim said. in the future.
“We have to go out and compete,” he urged. The fourth annual CCA conference was
“Nobody owes us a free lunch.” attended by over 400 investors, government
Another panel at the luncheon focused on officials and stakeholders from across all busi-
several Africans who took part in the Presidential ness sectors.
Summit on Entrepreneurship hosted by President
Barack Obama the pervious week. Kojo Benjamin United Nations Summary of Africa’s
Taylor, who heads a health care innovation com-
pany, MicroClinic, argued that investment can be
2009 Economic Performance
a boon to the health care sector. He said Africa
At the sub-regional level, Southern Africa con-
needs public and private sector collaboration as
tracted by 1.7 per cent in 2009, the worst re-
well as U.S.$35-40 billion to plug all the holes in
gional performance on the continent. South Af-
service delivery in the health sector.
rica recorded its first recession since the collapse
"We have started to adopt some of the of the apartheid regime. This slowdown also
Western lifestyle in our eating habits. We are spilled over to its neighbours, particularly Leso-
driving more instead of walking, we are beginning tho, Swaziland and Namibia. West Africa grew by
to eat more canned food, so diseases are moving 2.4 per cent in 2009. Nigeria, the second-largest
from contagious [illnesses] to diseases that re- sub-Saharan economy, grew by 1.9 per cent, as
quire more medical technology for us to do more declines in the industrial sector and crude oil pro-
testing,” he said.
duction were offset by increases in agriculture.
Julian Rotich, a founder of the web-based
Meanwhile, other food exporters of the region
mapping site Ushahidi, agreed with Ibrahim that
proved to be quite resilient as the demand and
regional integration is paramount. “In the inter-
prices for commodities like cocoa, coffee and
connected world we live in, sometimes the geo- bananas remained robust. North Africa, with an
graphical division that we have doesn’t matter as
average growth of 3.5 per cent in 2009, was also
much anymore,” she said. more resilient, owing to robust domestic con-
She challenged investors to seek out sumption and excellent harvests in Algeria and
“regional integration already happening on the Morocco. In Morocco, the unemployment rate
Internet and within Africa," which she said helps
even decreased from 9.6 to 8.0 per cent between
entrepreneurs connect to capital and ideas
the first and second quarters of 2009. East Africa
around the world.
recorded the highest sub-regional growth rate in
Rotich called on African governments to put
2009: owing to the dynamism in Ethiopia and in
in place policies that are conducive to entrepre-
the five member countries of the East African
neurs within Africa. She said a mobile developer
Community, it expanded by 3.8 per cent. How-
has to pay 50,000 Kenyan shillings for a license.
ever, the significance of such a positive headline
"If you're starting out and you don't really have figure appears questionable in view of severe
money, that's not money you can easily come problems in satisfying the basic needs of a large
by,” Rotich said. number of those countries' citizens.
Ronald Mutebi, president and CEO of More specifically, prolonged droughts and
Uganda-based Tek Consults Group, said American
variations in rainfall, accentuated in some cases
and European investors are more likely to benefit
by conflicts and political turmoil, continue to
from an improved business environment than
have a devastating impact on a region where
locals in most African countries. Organizations
more than 20 million people are affected by se-
like USAID and the World Bank don't usually vere hunger.
make funds available to African entrepreneurs,
he said.
79 Pan Africa & World Review 2nd Quarter 2010
Africa/Economy/Capital Markets

AfriBiz™ AfriStock May-June 2010:

Mid-Year Review of African Stock Market Performance
By Harmut Sieper
June 30, 2010 Comparing African Stock Market Performance
Over the last few weeks, the world capital mar- to World Markets
kets have shown increased volatility. Market par-
ticipants are becoming nervous. There are many
negative factors right now:
• The Euro currency crisis
• The sovereign debt crisis of European na-
tions, starting with Greece, continuing with Spain,
Portugal, and Hungary (new!)
• The months from May to November usually
experience more setbacks, corrections and
crashes than the first half of the year. “Sell in May
and go away” suggests that equity investors
should lighten their stock portfolios in early sum-
mer and re-enter in early winter.
• Mixed economic data in U.S. on Friday, June
4, indicating recovery remains slow
But is this true for Africa as well? Given the
fact that African stock markets have low correla-
tion to Western stock markets, one can assume
that shifting from Western stocks to African
stocks should be a better idea than moving to
cash or treasury bonds.

African stock market performance compared

to world markets this year paints a clear, positive Surprisingly, the U.S. and South African mar-
picture. kets are very closely correlated. Global portfolio
• African markets performed considerably bet- investors cannot reduce their risk by adding
ter than the big stock exchanges in New York, South African stocks.
London, and Tokyo. While all the big markets • Egypt and Nigeria behaved very different to
are in the red, only a few African markets are the S&P 500 and the Johannesburg Stock Ex-
negative. change Index, as well as to each other.
• Many markets show huge performances with • Egypt and Nigeria experienced some hefty
double-digit returns, crowned by Uganda (+ short-term corrections. Egypt experienced
40 %), Kenya (+ 30 %), Ghana (+ 27 %), and them in the second week of March, and then
Nigeria (+ 24 %). again in the whole month of May. Nigeria
Africa also performed much better than the experienced them in the third week of
MSCI Emerging Markets Index, which is down by March, the second half of April, and the sec-
6.5 %. China (Shanghai Composite Index: – 22 %) ond half of May.
has already entered a bear market. • The correction of the Egyptian stock market,
as well as the subsequent rebound was heav-
Comparing Corrections in Indices ier than in the U.S. markets.
When comparing the S&P 500 Index, the FTSE/JSE Nigeria consolidates within a well-defined
All Shares Index, Egypt 30 Index, and Nigeria trading range, while the other markets are head-
Stock Exchange All Shares Index, this is what we ing lower.

80 Pan Africa & World Review 2nd Quarter 2010

Africa/Economy/Capital Markets

Sub-Saharan Africa Stocks: Dangote,

Kapchorua Tea, Williamson Are Active
By Eric Ombok and Vincent Nwanma - Jun 30, 2010

Vincent Nwanma in Lagos via Johannesburg on

Nairobi Stock Exchange

As of July 1, 2010

Market Capitalization in KShs, billions

Mauritius’s SEMDEX Index gained for a sixth day, 1,107,899

rising 0.1 percent to 1,654.16. The measure rose
0.9 percent in the three months through June. Total Shares Traded
Kenya’s All-Share Index retreated 0.3 per-
cent to 74.40 at the close in Nairobi. The East Af- 9,980,500
rican nation’s index rose 7.5 percent in the sec-
ond quarter, a third of gains. The Nigerian Stock Equity Turnover in KShs
Exchange’s All Share Index increased 0.1 percent
to 25,384.14, according to its website. 173,402,749
Namibia’s FTSE/Namibia Overall Index
dropped 2 percent to 719.50, while the Ghana Total Deals
Stock Exchange All-Share Index retreated 0.7 per-
cent to 6,548.59, a fourth day of declines. 1,902
The following shares rose or fell in sub-
Saharan Africa, excluding South Africa. Stock sym-
bols are in parentheses.
Dangote Sugar Refinery Plc (DANGSUGA NL),
Egypt Stock Exchange
a Nigerian processor of the sweetener, rallied the As of July 1, 2010
highest in almost three months, advancing 10
Market Digest 01Jul 15:58GMT
kobo, or 0.5 percent, to 20.3 naira. The company
announced plans to pay a dividend of 1 naira per Total Market Cap USD 69,650,084,076
share for the year through December 2009.
Total Market Cap USD
Kapchorua Tea Co. (KPTC KN), a Kenyan pro- (Primary Listings)
ducer of the leaves, rose to the highest level in
more than three months, climbing 5 shillings, or Volume 102,104,823
3.5 percent, to 150 shillings. The industry regula-
tor said first-half tea output in the East African Value Traded USD * 149,340,482

nation grew 15 percent from a year earlier.

Transactions 31,537
George Williamson Kenya Ltd. (GWKL KN), which
also grows tea, gained for the first time this
Traded / Listed Stocks 163 / 218
week, rising 5 shillings, or 2.5 percent, to 218 shil-
Stocks Movement 0 Up - 0 Down - 163 Unchanged
To contact the reporters on this story: Eric
Ombok in Nairobi at;

81 Pan Africa & World Review 2nd Quarter 2010

Africa/Economy/Capital Markets

West Africa Regional Stock Exchange


Note: 1 US Dollar = CFA 443.67

The BRVM closed its fixing session on Wednesday June 30, 2010, lower than the
previous one. The BRVM Composite index lost 0.58%, dropping from 143.59 to
142.76 points. The BRVM 10 index closed at 162.89 points down 0.86%.

1. The value of the transactions was 346.72 million CFA francs, compared to the
69.09 million CFA francs reported last Session.

2. Trading involved 16 of the 38 companies listed on the stock exchange. The

number of securities traded climbed to 17,639.

3. 17 of the 21 accredited brokerage firms, including 9 from outside Côte

d'Ivoire, took part in the market.

4. Stock market capitalization was 3,103,972,181,419 CFA francs. That for the
bond market rose to 437,903,547,480 CFA francs.

5. On the bond market, 5,164 bonds were traded for a total value 51,64 million
CFA francs, not counting accrued coupons.

We would like to thank everyone involved in the BRVM and inform you that the
next session will be, Thursday July 1st, 2010.

Prepared in Abidjan, June 30, 2010.

For the General Manager,
Market Operation Manager,
Interim officer
Emmanuel ZAMBLE BI

E-mail :

Member Country Contacts


Tél : 229 312126 Tél : 226 308773 Tél : 225 20326685 Tél :225 20326686 Tél : 223 232354


Tél : 227 736692 Tél : 221 8211518 Tél : 228 212305

82 Pan Africa & World Review 2nd Quarter 2010

Africa/Franco-African Relations

Franco-African Summit


raised the issue of African marginalization in

global decision making. "When there is a serious
economic crisis in the world, we cannot continue
to hold meetings without Africa and make deci-
sions without Africa on behalf of the entire
world," said the Congolese leader.
Summit Co-Chair President Hosni Mubarak
of Egypt echoed his French counterpart’s con-
cerns, saying, “We want to end at all cost the
marginalization of the African continent, so that it
can participate with a clear and strong voice in
political and economic decision-making at the
French President Nicolas Sarkozy, foreground left, international level."
AU Chairman and Malawian President Bingu wa Nigeria’s President Goodluck Jonathan
Mutharika, foreground right, Mali's President seized the opportunity to press his country’s long-
Amadou Toumani Toure, left at rear, and Senegalese
standing case for a permanent seat on the United
President Abdoulaye Wade, rear center, during the
25th Africa-France Summit, in Nice, southeastern
Nations Security Council.
France, 31 May 2010 President Sarkozy prior to the Summit told
the weekly news magazine Les Afriques that nei-
ther French nor Africans would at this point in
F rench President Nicolas Sarkozy opened the
Franco-African Summit in Nice, France with
the prediction that Africa would fuel global eco-
history, 50 years after independence and in an
era of globalization, understand the notion of a
privileged French presence in Africa. “…I am going
nomic growth in the coming decades and a con-
to be very frank: personally, I think it's very good
comitant pledge to advocate a stronger voice for
that France and her African partners no longer
Africa in world affairs. "I am deeply convinced
have exclusive relations. The concepts of exclu-
that it is no longer possible to discuss major
sive partnership, private domains no longer exist
world issues without the presence of Africa,"
and this is very good,” Sarkozy told Les Afriques in
Sarkozy told the 38 African leaders gathered in
the interview published by the French Foreign
the French Riviera city of Nice.
Ministry. He said that the interest being shown in
According to Radio France International,
Africa by China, the Americans and others is good
President Sarkozy sought to renew France’s rela-
because Africa’s development and investment
tionship to Africa at the Nice summit. In his char-
needs are great and it also shows that the there is
acteristic emphatic style, France’s first post Sec-
a broader global consensus on the continent’s
ond World War born president acknowledged,
"None of the problems, absolutely none of the
President Sarkozy pointed out that the lon-
problems that the world faces today can be re-
gevity of Franco-African relations is a historical
solved without the active participation of the Af-
reality which could not be erased by looser ties
rican continent." Accordingly, President Sarkozy
because of the common interests France and Af-
committed himself to back UN reforms to give
rica have in the international community. In this
more say to African nations, including Africa’s
regard, President Sarkozy noted that over the
representation on the Security Council.
past ten years, French imports from Africa had
Speaking before the Summit Congo-
rose by 40% and exports by 30%.
Brazzaville President Denis Sousou Nguesso
83 Pan Africa & World Review 2nd Quarter 2010
Africa/Franco-African Relations Franco-African Summit

Gabon’s President Ali Bongo with French President Nicolas Sarkozy at the Franco-African Summit
held from May 31 to June 2 in the French Riviera city, Nice.

Apart from the increasing trade between stressed the need to settle conflicts on the conti-
France and Africa, President Sarkozy maintained nent, as they were the biggest obstacle to devel-
that the two domains are partners in confronting opment. He acknowledged France as one of Af-
global challenges such as climate change, point- rica’s strategic partners in conflict resolution.
ing out that the $10 billion a year funding for de- Responding to media questions President Zuma
veloping countries until 2012, to be raised to said there is a convergence of views between
$100 billion annually thereafter to 2020 was South Africa and France on the need to support
achieved through collaborative efforts of Africa, the work of the Southern African Development
France and other members of the European Un- Community (SADC) in assisting the parties to re-
ion. solve the political impasse in Madagascar.
South African President Jacob Zuma said af- President Zuma agreed with other heads of
ter the Summit that it had provided his country state and government attending the summit that
an opportunity to strengthen relations based on to be effective the multilateral system must be
shared interests and mutual trusts. Speaking at representative of today's world, based on a
the close of the Summit on Jun 1, President Zuma strong and reformed United Nations. In this con-
nection President Zuma said reform of the
United Nations Security Council is urgent. Presi-
dent Zuma, who departed France for a state visit
to India, had bilateral discussions with French
President Sarkozy and Nigerian President Good-
luck Jonathan on the sidelines of the Summit.
At the end of the summit, France committed
to set up a US$120 million fund to help Africa's
farming and food distribution sectors. Media re-
ports indicated the fund will start at US$120 mil-
lion and could increase to as much as US$300
million. Leaders also agreed to deal with their
common challenges with coordination and soli-
Presidents Sarkozy and Zuma

84 Pan Africa & World Review 2nd Quarter 2010

Africa/Franco-African Summit

France Diplomatie (Paris)

Interview Given by Nicolas Sarkozy, President of the Republic,

to the Weekly News Magazine, 'Les Afriques' (Excerpts)
Paris — Business will have "pride of place" at this
week's France-Africa summit, the first to be open to
non-state players, French President Nicolas Sarkozy
told Les Afriques, according to a transcript of excerpts
of the interview published by the French foreign minis-

When it comes to Africa, France is criticized simul-

taneously for her involvement and non-
involvement. But isn't France herself torn between
a sincere desire to establish a looser relationship
with Africa and a temptation, or even necessity, to
maintain know-how and experience she has gained.

THE PRESIDENT - (…) I reject the idea of a need to

choose between a looser and a preferential relation-
ship. My ambition has always been to reconcile the
two. This is why, ever since my election, I have pro-
posed to our African partners placing our special
bond on a new footing, with no taboos. South African President Jacob Zuma (left) with French
President Nicolas Sarkozy at the 25th Franco African
I firmly believe that the fact that our relationship Summit in the French Riviera city, Nice
goes back a long way and the strength of the bonds
THE PRESIDENT - You talk to me about a perception,
between our countries and peoples are not obsta-
I'd like to talk to you about concrete facts. And the
cles to a looser relationship, quite the contrary. On
reality is that the ties between Africa and France
one condition: that this special bond, what you call
aren't only not decreasing, but have been growing
the "know-how and experience we have gained"
stronger for ten years. Take trade: over the past ten
does not simply reflect a legacy, and even less an
years, our exports to Africa have risen by nearly 30%
unwarranted and outmoded privilege. Fifty years
and our imports by nearly 40%.
after gaining independence and against a back-
ground of globalization, no one, neither Africans nor
But the economy isn't the only thing. More than ever,
French, would understand it.
for France, Africa is a partner in globalization, an ally
when it comes to confronting the challenges of the
The fact is that today France and Africa have very
21st century. Remember Copenhagen! Admittedly,
many common interests and objective reasons for
the summit's results did not live up to all our expecta-
placing our special bond on a new footing. This is
tions, but we achieved some absolutely huge ad-
what we are together, Africans and French, in the
vances, particularly with respect to short and long-
process of doing.
term funding. What is this funding going to be used
for? To help the countries in most need of it, particu-
FRANCE/AFRICA/TRADE/COPENHAGEN/COMPETITION larly in Africa, address the challenge of climate
At a time when emerging countries such as China, change. And we're talking about gigantic sums: $10
Brazil, India and Korea are markedly developing billion a year until 2012, then the amounts will in-
their relations with Africa, France is often criticized crease, rising to $100 billion from 2020. And the alli-
for doing the reverse. Do you think this feeling is ance between Africa and France and, through her,
justified? And if not, how do you explain this per- Europe, played an absolutely crucial role in achieving
ception? this.

85 Pan Africa & World Review 2nd Quarter 2010

Africa/Franco-African Summit
France Diplomatie (Paris)

Interview Given by Nicolas Sarkozy, President of the Republic, to the Weekly

News Magazine, 'Les Afriques' (Excerpts)
So why this impression of a lower commitment?
Because, as you said, today more and more coun-
tries are taking an interest in Africa. The arrival of
these new players can give the impression - a false
one - of a lower commitment on the part of those
there before. It's often like that, the last to arrive
attracts the most notice.

But I am going to be very frank: personally, I think

it's very good that France and her African partners
no longer have exclusive relations. The concepts of
exclusive partnership, private domains no longer
exist and this is very good.

Admittedly, for a long time France opted for Africa. President Sarkozy with African leaders in Nice
Our companies were often the first to come and
work on your continent at a time when few people ing respect for individual and collective fundamental
took an interest in Africa. But the fact that others freedoms. And a neutral administration, independ-
are coming - Americans, Chinese, Indians and so on ent judiciary and a free and responsible press.
- doesn't bother me at all. On the contrary. It's a
very good thing that more and more countries are So you see, for me, democracy is inseparable from
taking an interest in Africa, investing in Africa. The human rights. And I reject any idea of an African
needs are immense. And it's proof that there's a exception on these issues. I reject the argument
future for your continent. reducing them to values imposed from outside on
African societies which Western arrogance has de-
There is increased competition, so much the better! scribed as universal. Democracy and human rights
Competition is good for Africa: it compels our com- are African values too because they are universal
panies to put their best foot forward. I'd only add values and reflect the aspirations of all mankind.
that the competition playing field must be level.
Moreover, democratization and the wave of multi-
And I'll say something else: we, the developed coun- partyism which swept through Africa in the 1990s in
tries and particularly France, have done a lot to re- the first place fulfilled an African aspiration. The cri-
duce Africa's debt. It's important for these new part- ses of the past few months in several African coun-
ners not to increase it again, since that would cer- tries have underlined the fragility of these achieve-
tainly not be doing Africa a service. (…) ments, but democracy isn't just a political system or a
culture, it's also a process. Moreover, even in these
DEMOCRACY crises, there are some positive signs. I'm thinking for
example of the very courageous stance of Niger's
Last year, Michel Rocard told our newspaper: "we Constitutional Court. (…)
made the mistake of believing that democracy con-
sisted solely of multi-partyism and elections". Do FRANCE/AFRICAN STUDENTS/IMMIGRATION POLICY
you share this mea culpa?
Young Africans are less and less inclined to think of
THE PRESIDENT - I totally share his view. It would be France when planning their studies or careers. Do
a serious mistake to reduce democracy to multi- you regard this reduction in France's attractiveness
partyism and elections. They are, of course, two as a success for your immigration policy?
necessary conditions, but they are far from suffi-
cient. Elections must also be free, honest and trans-
parent. There also has to be a rule of law guarantee-

86 Pan Africa & World Review 2nd Quarter 2010

Africa/Franco-African Summit
France Diplomatie (Paris)

Interview Given by Nicolas Sarkozy, President of the Republic, to the

Weekly News Magazine, 'Les Afriques' (Excerpts)

France’s President Sarkozy with Nigeria’s President Goodluck Jonathan

THE PRESIDENT - Right away, I have to tell you that It is with this in mind that we have established an
the idea of there being fewer African students in immigration policy agreed with the countries of ori-
France is quite simply wrong. In actual fact there have gin. We have already signed agreements of this
never been so many African students in France, over type, with Gabon, Senegal, Congo, Benin and also
100,000 and the number is continuing to rise every Tunisia.
year. They account for over half the foreign students
in our universities. And France remains the most We want properly controlled, regulated and organ-
popular country for African students. ized immigration, so that we can admit the people
who come to France in a dignified manner. This has
So there's no sense in believing that the aim of the to entail, among other things, waging a merciless
immigration policy we are implementing is to cut the battle against illegal immigration, and in particular
number of African students. Moreover, I have said the Mafias which exploit destitution.
several times that we were ready to take in more
African students. Simply, we don't want this to hap- NICE AFRICA-FRANCE SUMMIT
pen at the expense of their countries of origin. Be-
cause African countries need their elites, their edu- This year the forthcoming Africa-France summit is
cated and trained young people for their develop- being opened up to private and particularly African
ment. Africa has suffered too much from the brain businesses. What can France expect today from
drain and I won't be complicit in it. African entrepreneurs?

I am keen for us to continue encouraging African THE PRESIDENT - The forthcoming Africa-France
students to come to France so that they can benefit summit will indeed, and for the first time, be open
from our training courses and/or a first professional to non-State players, such as companies, civil socie-
experience; but once trained, they must return to ties, the world of the arts and voluntary sector. They
their countries of origin to contribute to their devel- are what make relations between Africa and France
opment. both substantive and distinctive.

87 Pan Africa & World Review 2nd Quarter 2010

Africa/Franco-African Summit
France Diplomatie (Paris)

Interview Given by Nicolas Sarkozy, President of the Republic, to the

Weekly News Magazine, 'Les Afriques' (Excerpts)
In Nice, businesses will have pride of place, since not
only over 200 French and African entrepreneurs, but
also representatives of trade union organizations will
be taking part in the discussions.

On your second question - what we are doing for

African entrepreneurs - France has made develop-
ment of the African private sector a priority of her
development policy. It's with this in mind that, in
February 2008, I launched the Cape Town initiative
whose objective is precisely to support development
of the African private sector. As a result of this initia-
tive, which is going to mobilize €2.5 billion over five
years, nearly 2,000 African businesses will be directly
or indirectly financed and eventually over 300,000
jobs created.

Concretely, the Cape Town initiative is based on three

Nice, France
instruments. Firstly, doubling of the activity of the
French Development Agency in support of the private we are going though, France has decided to maintain
sector, with a €2 billion commitment over five years, and even increase her development effort. Our ODA
thanks in particular to the tripling of the capital of rose from 0.38% of GDP in 2007 to 0.46% in 2009. But
Proparco, the private-sector investment arm of the I am convinced that Africa's development also - and
AFD. Secondly, creation of a €250 million fund to in- perhaps above all - requires the development of the
vest either directly in businesses, or in other funds. private sector, which creates more growth, more
Finally, thirdly, establishment of a guarantee fund, wealth and more jobs. (…)
which will likewise have a €250 million endowment to
facilitate access to bank credit and capital for African An expert from Goldman Sachs, Dambisa Moyo, is
businesses, and particularly SMEs. (…) currently enjoying huge international success by
maintaining, in her book "Dead Aid", that aid is
AFRICAN FINANCIAL SECTOR/ODA counterproductive for Africa's development.
What's your position in this debate which is resur-
For some years we have been witnessing the emer- facing?
gence of a dynamic and well-managed African
financial sector. How will this new situation THE PRESIDENT - The idea that aid actually harms
change French cooperation policy in Africa?
development is not only wrong, but dangerous. I
believe in international solidarity and am convinced
THE PRESIDENT - You are right. This isn't perhaps that aid is not just useful, but essential to enable a
said enough, but the emergence in the past few number of countries in the world to address the de-
years of diligent, efficient and reliable financial insti- velopment challenge. Of course, official develop-
tutions in Africa is an absolutely major step forward ment aid can't be enough, on its own, to ensure de-
in the continent's development, because a sound velopment; only the emergence of a dynamic pri-
financial environment is an absolute requisite for the
vate sector can give Africa the growth it needs. (…)
growth of a dynamic private sector which is the key
to Africa's development.
So it's a mistake to see development assistance as
standing in the way of the emergence of a strong pri-
You must understand me: I believe that official de- vate sector. If the assistance is well designed, it will,
velopment assistance (ODA) is necessary; this is why, on the contrary, encourage the building of a solid
despite the unprecedented economic crisis economy. (…).

88 Pan Africa & World Review 2nd Quarter 2010

Africa/Franco-African Summit
South African Government (Pretoria) 31 May 2010

Africa-France Summit -
Remarks by President Jacob Zuma to
Session on Strengthening Peace and Security

Through the collective efforts of the member coun-

tries of the African Union, we continue to prioritise
the attainment of peace and security in all parts of

As we consider the work that lies ahead, we need to

reflect on the progress of operationalising our Afri-
can peace and security architecture.

This architecture was developed to support pro-

grammes aimed at the prevention, resolution and
management of conflicts in a multifaceted ap-

Such an approach would entail:

• The AU Peace and Security Council, which is the
standing decision-making organ for the preven-
President Jacob Zuma at the Nice Franco Africa Summit tion, management and resolution of conflicts;
with host President Nicolas Sarkozy • An African Standby Force (ASF) that deploys
Document peace support missions on the continent;
• The Panel of the Wise to mediate in conflict
The following is the full text of a speech delivered by situations;
South African President Jacob Zuma, who was • A Continental Early Warning System that en-
among the leaders at the Africa-France Summit in ables the African Union to pre-empt and pre-
Nice, France. vent the occurrence of conflicts.

Your Excellency, President Sarkozy, In its five years of existence, the Peace and Security
Your Excellencies, Heads of State and Government Council, supported by the Panel of the Wise and the
on the African Continent; AU Commission, has demonstrated valuable dyna-
Your Excellency, Mr Ban Ki-moon, UN Secretary mism in dealing with crises and conflict situations.
Your Excellency, Dr Jean Ping; AU Commission However, we need to note that operationalisation
chairperson, of the Continental Early Warning System and the
Ministers of Foreign Affairs; African Standby Force is progressing rather slowly.
Ladies and Gentlemen;
Insufficient technical and financial resources, cou-
Allow me first of all to thank our host, President pled with skills shortages, remain the biggest im-
Sarkozy, and the Government of the French Repub- pediments to progress.
lic for hosting this important occasion and for ex-
tending such warm courtesies to us all, in this beau- We should therefore consider increased coopera-
tiful city of Nice. tion with development partners.

89 Pan Africa & World Review 2nd Quarter 2010

Africa/Franco-African Summit
South African Government (Pretoria) 31 May 2010
Africa-France Summit - Remarks by President Jacob Zuma to
Session on Strengthening Peace and Security
Closer cooperation between the AU Peace and Se- conflict and instability, including unconstitutional
curity Council and the UN Security Council is an im- changes of government.
portant element in promoting and maintaining
peace on the African Continent. We need to be encouraged that progress continues
Presently, the AU Commission and the UN Secre- to be made in our various mediation efforts.
tariat cooperate on a range of issues relevant to
peace and security in Africa. Our Tripoli Plan of Action outlines specific commit-
ments aimed at accelerating the resolution of con-
Of particular significance is the AU UN hybrid mis- flict, responding to crisis situations, and consolidat-
sion in Darfur (UNAMID) and the two organisations ing peace.
are cooperating through the Ten Year Capacity
Building Programme signed in 2006. We need to acknowledge the strides being made in
strengthening democratic governance through the
With regards to the UN Mission in Somalia various instruments adopted by the AU.
(AMISOM), the UN has agreed to provide a logistics
support package. The holding of regular democratic elections is trans-
lating into sustained peace and economic develop-
Despite these significant achievements, more ment in many countries on the continent.
needs to be done to strengthen political dialogue,
expedite the operationalisation of the African Excellencies,
Standby Force, and increase support for Africa's
peace keeping missions. But we cannot ignore the emergence of new threats
to international peace and security.
While AU member states are committed to peace
mission deployment, reimbursement under UN These include the destabilising effects of wide-
agreements is often very slow, making it difficult spread poverty, large-scale migration, rapid urbani-
for member states to increase their mission sup- sation, environmental degradation, and competition
port to other crisis areas. for scarce natural resources.

Excellencies, As a result, the paradigms of conflict prevention,

resolution and management need to be re-defined
As we strengthen our peace and security architec- so that we may respond to changing conditions.
ture, we need to address the root causes of con-
flict. Excellencies,

We need to address the socio-economic needs of Africa is taking control of its own destiny.
the people of Africa.
There are fewer conflicts now than in much of the
In many instances conflict is a consequence of deep last century.
-rooted imbalances within societies.
There are more democratic countries today than
Lasting peace will only be sustainable once we have ever before.
addressed issues of social and economic depriva-
tion and inequality. The economy is growing at a pace which outstrips
most other regions of the world.
In order to continue on this trajectory, we need to
African countries remain committed to addressing redouble our efforts to end war, conflict and insta-
90 Pan Africa & World Review 2nd Quarter 2010
Africa/Franco-African Summit
South African Government (Pretoria)
31 May 2010

Africa-France Summit - Remarks by

President Jacob Zuma to
Session on Strengthening
Peace and Security

In this effort, we are grateful for the support of

our partners, like France, who have pledged to
support Africa in bringing about peace and pros-

This Summit presents an opportune platform to

deepen our cooperation on many issues.

We are reminded, President Sarkozy, of your ad-

dress to the South African Parliament on 28 Feb-
ruary 2008, where you reiterated France's vision
of "placing its relations with Africa on a new foot-
ing premised on the recognition of and taking on
board the interests of Africa with a renewed im-
There is no more fantastic and rewarding
petus injected to this Partnership."
journey into African history
The injection of this new impetus would be in-
formed by the principle that "the security and the • See the 224 pyramids built by the Kushite Dynasties
prosperity of France and Europe are indissolubly
linked with the security and prosperity of Africa".
• Incredibly well preserved archaeological sites
• Visit the Kushite Royal Cities
Finally, Excellencies, • Museum of well preserved statues of Black Pharaohs
dating back to the 7th century B.C.
In this African Year of Peace and Security, we have
rightly committed ourselves to spare no effort to • Visit the 2400 B.C. Kingdom of Kerma
continue our onward march towards a peaceful • Well informed tour guides will carry you on the most
and prosperous Africa. fantastic journey into African history there is.
• Interactive sessions between guests and authorities on
As this Year of Peace and Security culminates on
ancient Kush
the International Day of Peace and Security on the
21st of September, Africa will be called upon to • Two Star, Four Star, Executive, VIP and Celebrity Group
prove to the world that peace is indeed possible. Tours of varying lengths from 5 to 15 days
I am confident we can do so.

I thank you.

91 Pan Africa & World Review 2nd Quarter 2010

Africa/Religion and Society

Africa leads world in

Christian-Muslim cohabitation
Perspective By Muhammed Kamil

A survey by the Pew Research Forum on Re-

ligion and Public Life revealed that most
Africans now identify as either Christian or Mus-
lim and quantitatively the two major world relig-
ions have more or less equal following on the
continent, though North Africa is predominately
Muslim, while Sub-Sahara Africa’s population has
a Christian majority of about 470 million, com-
pared to 234 million Muslims. Pew researchers
surveyed 25,000 people in 19 Sub-Sahara Africa
countries from December 2008 to April 2009. The
survey, titled "Tolerance and Tension: Islam and
Christianity in Sub-Saharan Africa," revealed that
though more than 90% of the people in Sub-
Sahara Africa identify as either Christian or Mus-
lim, traditional religions have not entirely disap-
peared but become part of the prevalent syncre-
tism, wherein they are assimilated into the book
based faiths. "It doesn't seem to be an either-or
for many people. They can describe themselves
primarily as Muslim or Christian and continue to
practice many of the traditions that are charac-
teristic of African traditional religion," Luis Lugo,
executive director of the Pew Forum, told AFP.
Lugo said Pew Forum conducted the survey be-
cause Africa is "the most important meeting place
between Christianity and Islam anywhere in the Ghana’s first president Dr. Kwame Nkrumah took an early
world, so if we are going to probe issues of inter- interest in Africa’s triple heritage of Animism, Christianity
religious understanding and inter-religious en- and Islam, writing Conscienism, in which he proposed neu-
gagement, this is as good place as any to begin." tralizing the potentially polarizing force of religion with phi-
At the beginning of the 20th century Islam losophical materialism.
was already widely spread in the savanna belt
Saint Frumentius was consecrated its first
that includes [from west to east] Senegal, Mauri-
bishop by Saint Anthanasiu, patriarch of Alex-
tania, Guinea, Mali, Niger, Northern Nigeria,
andria, Egypt. How long before that Christian-
Chad, Sudan, Somalia and Ethiopia, while Christi-
ity was practiced in Ethiopia is not clear but
anity had pockets of urban adherents along the
given that the Abyssinian Church was a branch
West Coast of Africa and in Southrn Africa. Chris-
of the Coptic Church until the mid 20th century,
tianity had been well established in Ethiopia and
we cannot rule out Christianity in Ethiopia dat-
Egypt for centuries. In Sudan Christianity was well
ing back to the beginning of the Christian era
established in Nubia by the 7th century A.D. be-
when the Apostle Mark is said to have
fore being displaced by Islam in the 13th century.
preached it in Egypt. The first Muslim ruler in
Historically, Ethiopia is one of the original homes
the world was not Prophet Muhammed in Me-
of both Christianity and Islam. The Abyssinian
dina; Negus in Ethiopia preceded him by a few
Church traces its history back to A.D. 330 when
years in the early 7th century.
92 Pan Africa & World Review 2nd Quarter 2010
Africa/Religion and Society Africa leads world in Christian-Muslim cohabit
The Pew report says that the number of
Muslim south from the Sahara to the South Afri-
can Cape increased 20 fold since 1900, from
about 11 million to 234 million; but the spread of
Christianity has been far more phenomenal, with
its population growing from around 7 million to
470 million. Nigeria, according to the Pew report,
has the largest number of Christians and also the
largest number of Muslim of any country in Sub-
Sahara Africa. As the continent’s most populous
country it is also most prominently representa-
tive of Africa’s high rate of Christian-Muslim co-
The Pew report says that 20% of the world’s
Christians reside in Sub-Sahara Africa, as well as
15% of the world’s Muslims; but the entire conti-
nental population of Muslims would be approxi-
mately 35% to 40% of the global total.
Fear of continued religious clashes and
bloodshed was expressed by 58% of those inter-
Ethiopian Coptic mural Ethiopia has a rich Christian cul-
viewed in Nigeria. The same 58% fear prevalence
tural heritage, dating back to the spread of the Coptic
of future inter-communal violence was expressed
Church into the Kingdom of Aksum in the early 4th cen-
by Rwandans despite the two clash prone ethnic tury. This painting, illustrating the story of Saint George
groups, the Tutsi and Hutu, being predominately, slaying the dragon, is part of a mural in the 12th-century
if not exclusively Christian. Likewise, confronta- Church of Saint George, in Lalibela, northern Ethiopia.
tional tendencies between white and black radi- Microsoft ® Encarta ® 2009. © 1993-2008 Microsoft Cor-
cals in predominately Christian Southern Africa poration. All rights reserved.
have no religious dimension. The massacres in
Sudan’s Darfur that have led to the country’s latter devour the former’s crops. All these fac-
President Omar Al Bashir being indicted at the tors present problem solving challenges that
International Criminal Court (ICC) for crimes will necessarily involve policies and legislation,
against humanity and war crimes is a case of Arab if not constitutional amendments.
mother tongue Muslims constituting an oligarchy A fundamental function of government is
terrorizing African mother tongues tribes on the to maintain social equilibrium and promote
margins demanding equality. Nigeria’s Yoruba, socio-economic economic progress, both of
who number upwards of 35 million have more or which are necessary to sustain political stability.
less equal proportions of Muslims and Christians Excesses in any area are destabilizing; but are
and inter-marriage between people of the two nonetheless a tendency of human nature. We
religions is not uncommon. While the Yoruba are seeing this with the banking sector in the
typically pride themselves for religious temper- West, resisting regulatory measures and insist-
ance, instances of zealotry are invariably polariz- ing on freedom to excess despite having thrown
ing. the global economy into crisis. For many of
Nigeria’s Acting President Goodluck Jona- those whose education and careers have been
than in an April 2010 interview with CNN’s Chris- in money making greed has become a philoso-
tine Amanpour explained that the inter- phy and a motivation elevated to a virtue. Eth-
communal violence chronic in Jos, Plateau State, nicity and religion are also frequently taken to
has multiple root causes: settler verses indigenes disruptive extremes and here too acculturation
factor, economic dominance of settlers, different often informs subjectivity and prejudices, not
ethnic groups [and languages], different religions to mention suspicions. For example if there are
and an attractive climate [that has brought Euro- more than one ethnic group working in an of-
pean settlers to the area as well as those from fice and people congregate in ethnic clusters,
other parts of Nigeria]. There is also a planters speaking ethnic languages, not only do we get
and herders factor wherein the animals of the fertile ground for suspicion but also inclinations
93 Pan Africa & World Review 2nd Quarter 2010
Africa/Religion and Society Africa leads world in Christian-Muslim cohabit
to ethnocentrism with its subjective and preju-
diced dimensions. There could be exceptional
situations where other factors play a neutraliz-
ing role against ethnocentric tendencies. In
some African countries and societies there are
local lingua franca, as Swahili in much of East
Africa, Twi in Ghana, Wolof in Senegal, Bam-
bara in Mali and Hausa in Northern Nigeria. In
Ghana many people are multi-lingual. In Sierra
Leone Creole, a synthesis of local languages
and English is the lingua franca. It is up to gov-
ernments and the domestic intelligentsia to
study and analyze and monitor the social and
political scenes so as to proactively conceptual-
ize policies aimed at sustaining socio-political
stability and socio-economic progress.
Where the status quo is not deemed
problematic conventional wisdom is to leave
well enough alone, or not to argue with suc-
cess; though social stability monitoring and
Sankoré Mosque in Tombouctou The Sankoré mosque in
evaluation are necessary in any event. How-
Tombouctou, Mali, rose to prominence as a center for
ever, in crisis or crisis prone situations the in- Islamic scholars and their students during 16th century
telligentsia need be proactive to avoid prob- reign of Songhai emperor Askia Muhammed Touré. Now a
lems getting out of control. In socially and po- UNESCO protected cultural heritage site It is regarded as
litically managing Christian-Muslim cohabita- the first university in the Western Sudan. Using contem-
tion, whether or not we think the situation de- porary technology its many manuscripts, covering a vari-
mands application of freedom of conscience as ety of subjects, including philosophy and medicine, are
the guiding principle in lieu of religious free- being restored.
dom, it is important for us to at least academi-
cally study freedom of conscience and its pros- materialism.
pects as well as implications for our socio- Consciencism was popular with freedom
political management future. fighters and radical Pan Africanists but never
Freedom of conscience came to promi- became mainstream African ideology or phi-
nence in the West in the course of advancing losophy; rather, rituals and mysticism rooted
secularization of public life. It can be seen in in animism were widely synthesized into
proselytes going from door to door with their Christian and Islamic consciousness and in
religious literature rather than preaching in some cases gave rise to new religious sects
public transport and on street corners; in the and cults. Hence, the triple heritage that was
practice of a moment’s silence rather than a matter of interest and concern at the begin-
class prayer recitation in schools. Freedom of ning of the post-colonial era gradually stream-
conscience differs from the common concept lined into the Christian-Muslim dichotomy
of religious freedom in that it demands respect that the Pew Forum found in its recent sur-
for privacy of thought and belief; whereas reli- vey. The concept freedom of conscience is
gious freedom has become not merely the remote from the current African reality where
right to practice but also to proselyte without almost everyone is either a Christian or Mus-
restriction. During the wave of African inde- lim, and in some countries either almost en-
pendence that started in the 1950s pre- tirely, or absolutely one or the other.
empting the potential for religious conflict in- Inter-faith dialogue has not only gained
herent in what Prof. Ali Mazrui called the conti- traction in Africa but has been supported by
nent’s triple heritage of Animism, Christianity international NGOs such as Germany’s Konrad
and Isam, Ghana’s first leader Dr. Kwame Adenhauer Foundation. The inter-faith dia-
Nkrumah wrote and taught Consciencism, logue forums typically look for common coop-
based on Karl Marx’s historical and dialectical eration ground and need mutual respect pacts
94 Pan Africa & World Review 2nd Quarter 2010
Africa/Religion and Society Africa leads world in Christian-Muslim cohabit
to survive. Appreciation of freedom of con-
science could be useful in steering them away
from contentious if not futile theological de-
bates that undermine mutual respect pacts and
put religious leaders from the two sides at log-
gerheads. When we organized a Christian-
Muslim dialogue forum in Liberia during the
1980s with guidance and support from the Kon-
rad Adenhauer Foundation we did not specifi-
cally talk in terms of freedom of conscience but
our decision to avoid theological discussions,
though it was advocated by some Catholic
priests in spite of being opposed by Monrovia
Archbishop Michael Francis, was in effect estab- Africa Hall, Addis Ababa Ethiopia was agreed upon by African
lishing a freedom of conscience principle, leav- leaders in the early 1960s as headquarters of the Organization
ing us to concentrate on social problem coop- of African Unity (now superseded by the African Union) mainly
eration such as support for the Information because it was considered a middle ground between Arabized
Minister’s ban on school children in uniform North Africa and Sub-Sahara Africa
being admitted to cinema houses, as it was be- tians and Muslims. Just as the two religions
ing opposed by cinema owners and others in together hold a power balance within the Afri-
the business community who argued it was un- can Union in terms of population, balanced
due government interference in people’s free- cohabitation is essential to avoid aggravated
dom. Inter-faith dialogue and consultations polarization and feuds, whether within polities
have since become a permanent social fixture in or at the continental institution levels. The
Liberia. conflict in Darfur has shown that at the conti-
Organized inter-faith cooperation is nental level as well as in the AU member poli-
strengthened by personal friendships across the ties ethnicity not religion is a fundamental
sectarian isle, patriotism, mutual commitment cause of crisis. The threat of Sudan, backed by
to national development and, above all, com- Egypt and Libya, to pull out of the AU if its
mon understanding that society does not need peace monitoring force gave way to UN peace-
radical religious polarization. Reflection on the keepers in Darfur where ethnic Arab Muslims
historical roots of both Christianity and Islam in were massacring ethnic African Muslims exem-
Africa, their roles in pre-colonial Africa civiliza- plified this. Political sophistication and matur-
tion building (Christianity mostly in the ity of the AU establishment and Sub-Sahara
East−Ethiopia, Sudan and Egypt; Islam primarily African leaders, where then Commission Chair-
in the Western Sudan−Senegal, Mali, Guinea, person Alpha Omar Konaré and Assembly of
Northern Côte d’Ivoire and Northern Nigeria) Heads of State & Government Chairman Oluse-
lets us realize that it is preposterous to suppose gun Obasanjo, respectively, played leading
that either one of these world religions will ever roles saved the AU from disintegration along
substantially replace the other in our continent, the Arab/Black Africa fault line. The entrance
interpretation of scriptures and neo-prophecies of liberated South Africa into the continental
to the contrary not withstanding. leadership ranks brings ethnic Europeans and
Conversion from one religion to another is on- Asians into African Union citizenry along with
going; thus proselytizing and religious debates ethnic Arabs and ethnic Africans, which makes
are important to both Christianity and Islam and Africa perforce cosmopolitan; a realty that
are traditionally considered part of religious must be reflected in our political attitudes and
freedom; but this highlights the importance of behavior if we are to effectively manage diver-
regulating proselytism to avoid clashes, unethi- sity and progress. In the final analysis this
cal practices and fueling enmity . In respect of challenge is an opportunity for Africans to
the public order and national cohesion impera- grow ever increasingly sophisticated in political
tives surveys such as Pew Forum has done are management, socialization, diplomacy and
necessary to monitor the dynamics of Africa’s socio-economic development innovating.
exceptionally high cohabitation rate of Chris-
95 Pan Africa & World Review 2nd Quarter 2010

Reclaiming the Sword: 50 years later,

a brief account of Africa’s Road to Independence
By former Nigerian President Olusegun Obasanjo & Malik Dechambenoit, CEO Sankore Corp.

From left: Belgian King Albert II, Madam Olive Kabila, Queen Paola and Congo’s President Joseph Kabila
in Kinshasa, June 29, 2010, during the Belgian King’s 3 day official visit to Congo to join in celebrations of
the country’s 50th independence anniversary

O n June 30, in Kinshasa, in the Democratic Re-

public of Congo (DRC), Belgian King Albert II
stood alongside the 39 year old Congolese Presi-
voy made its way across the city, King Baudouin
dropped his usual reserve, laid his sword to rest
on the vehicle’s backseat and rose to salute the
dent, Joseph Kabila, to celebrate the country’s 50 expectant crowds. Suddenly, Ambroise Biombo, a
years of independence from Belgium. The two men young Congolese, leaped out of nowhere and
watched in silence, as Congolese military paraded seized the Belgian King’s sword! He had boldly
along the city’s main avenue. The avenue had just reclaimed for himself, and for millions of long-
been renovated with the assistance of Africa’s new- suffering Congolese, the symbol of Belgian author-
est “best friend”: China. ity!
Fifty years earlier, on 30 June 1960, King Albert For an ecstatic moment Biombo was allowed
II late brother, King Baudouin rode down Kinshasa’s to parade his “trophy” before the cheering crowd.
main boulevard in an open-top limousine. He had Soon enough, however, he was caught by a detail
come to Kinshasa to grant freedom to the Congo of nervous policemen, and brutally beaten.
and its people, after some 80 years of oppressive Stunned, onlookers failed to understand why
colonial rule. Joseph Kasavubu, the Congo’s first Biombo’s patriotic feat had been so forcefully re-
President sat next to him for the occasion. A large pressed by their “newly emancipated” security
crowd had gathered to witness the event and wel- forces. Three months later, in October 1960, a
come the “Bwana Kitoko” (beautiful master), most young Nigerian officer by the name of Olusegun
of them unaware of the true content and limits of Obasanjo, later to become, in 1999, the second
their eagerly anticipated independence. As the con- democratically elected President of Africa’s most
96 Pan Africa & World Review 2nd Quarter 2010
Africa/50 years later, a brief account of Africa’s Road to Independence
populous nation, Nigeria, arrived in the Congo as
part of an early United Nations Peacekeeping force,
which had been deployed to the Congo to put an
end to a secessionist rebellion that threatened the
integrity of this young African nation. Hence com-
menced the 50-year-long journey of Independent
This year, 17 African countries are cele-
brating 50 years of independence from colonial
rule. Those countries include 12 former French
colonies from West and Central Africa, Madagascar,
the Democratic Republic of the Congo, Nigeria and
Somalia. For the majority of those countries, inde-
pendence was the result of a painstaking transfor-
mation process, accelerated by the new political
and social conditions that prevailed after World
War II, including the weakening of European colo-
nial powers, increased political awareness and de-
mands for emancipation by Africans who served in
the war and had returned home to find continued
oppression; and also the rising financial cost of co-
lonialism for declining European powers impover-
ished by the war and the ascendency of the United
States and Soviet Union as world powers. In the
context of the Cold War that emerged after the
Second World War European powers relinquishing Baudouin, King of Belgium from 1951-1993; owing to his
their African and other tropical colonies was a stra- youthful appearance Congolese nicknamed him Bwana
tegic American backed move aimed at blunting the Kitoki, which in Lingala literally means “beautiful Master”
increasing influence of Communists on nationalist
movements. had the same effect on black and white alike.
History often overlooks the fact that some After spending four years hunting white enemy
500,000 African soldiers served in World War II soldiers, the African never again regarded them
alongside French and British Troops. Those soldiers as gods”. He adds, “…the girls of England, France
were instrumental in spearheading the general and Italy who went out with African soldiers, did
movement that lead to self-determination and in- not help the preservation of the white myth”!
dependence in Africa. A 1948 British Commission Meanwhile, the superpowers that had
of Inquiry established in response to post war riots emerged out of WWII, the United States and the
in the Gold Coast (now Ghana) noted that Africans Soviet Union also voiced opposition to colonial-
soldiers “by reason of their contacts with other ism. The United States called for the “right of
peoples, including Europeans, had developed a po- people to self-determination”, with U.S. Secre-
litical and national consciousness. The fact that tary of State (1953-1959) John Foster Dulles
they were disappointed at conditions on their re- pragmatically pointing out to the Europeans that
turn…made them the natural focal point for any the example of Liberia under President William
general movement against authority.” This politici- V.S. Tubman showed that exploitation of miner-
zation during World War II was no doubt carried als and cash crops in Africa could best be man-
over into the independence era of African soldiers aged by a comprador; while the Soviet Union
and gives us a clue as to why they did not keep out decried the oppression and “exploitation of the
of politics. world’s masses”. These views were echoed by
A major psychological change had also oc- the newly established United Nations. In Europe,
curred amongst many of these returning soldiers; the influence of anti-colonial movements further
they no longer feared their colonial masters. This increased with the ascendency of Communists
shift of consciousness is succinctly described in the parties across the old continent, as well as the
following account by an African soldier: “The bullet vigorous activism of left-wing intellectuals like
97 Pan Africa & World Review 2nd Quarter 2010
Africa/50 years later, a brief account of Africa’s Road to Independence
Albert Camus, Franz Fanon and Aimé Césaire. For
their part, conservative economists expressed con-
cern at the growing economic cost of colonialism
for bankrupt European nations.
By the late1950s European powers could
no longer resist the tidal wave of emancipation that
swept across the world. In 1955, 4 already inde-
pendent African countries (Egypt, Ethiopia, Liberia
and Libya) joined some 20 Asian countries at a con-
ference in Bandung Indonesia to oppose colonial-
ism In his account of the meeting, African-American
author Richard Wright wrote: “…there was some-
thing … almost extra human about it, it smacked of
tidal waves… only brown, black and yellow men
who had been made agonizingly self-conscious of
the rigor of colonial rule could have felt the need
for such a conference”. The conference was a turn-
ing point in the march towards independences. Co-
lonial powers could no longer ignore the solidarity
of the colonized and their collective opposition to
colonial rule.
Faced with anti-colonial sentiment at home
and general discontent in the colonies, colonial
powers had little choice but to make concessions.
France for example, abolished forced labor
and consented to the establishment of semi-
autonomous local assemblies in its colonies. In
1946, the French Government agreed to the elec- Belgium’s Queen Paola visiting Congo’s National Institute
tion of African representatives to the French Na- for Professional Formation in Kinshasa, June 29
tional Assembly. This coincided with emergence of
organized nationalist political movements in the Gle party rule, short-lived economic booms for
French colonies of West and Central Africa. In some and recurrent crisis for others.
1946, several of those parties came together to Today, as we look back on our 50 years of
form an alliance, the African Democratic Rally independence, admittedly, the assessment is
(RDA). Its cadres were instrumental in negotiating mixed. Many challenges remain, and as one of
independence from France for their countries; sev- my friends likes to remind me, “hope is not a
eral of them became heads of state when their strategy” for those of us “global Africans”, born
countries eventually gained independence in 1960. after independence. We have a duty to coalesce
At Independence, many challenges confronted and harness our energies for a better African fu-
our countries: building a state apparatus with little ture. We have no choice but to infuse leadership,
human and financial capital, fostering unity out of commitment and forward thinking into our col-
ethnically divided societies, educating young and lective destiny if we are to make good of Africa’s
illiterate populations, providing basic services to promise of becoming “the next big thing”!
our impoverished masses and transforming a colo-
nial economy, based on the extraction of resources
for the colonial power, into modern economies that
would benefit our local populations. Those chal-
lenges were daunting and time showed that most
of our countries were ill prepared to meet them.
But surely there was no option for us but to regain
our freedom and dignity. Inevitably we fell prey to
cold war rivalries and began shaping our destinies
accordingly. Ensued, military coups, civil wars, sin-
98 Pan Africa & World Review 2nd Quarter 2010
Africa/Congo Democratic Republic

Congo at 50


E ven for a nation, 50 years is a substantial

chunk of history through which several gen-
erations live their primes, but for one like Congo,
2.345 million square kilometers (905,563 square
miles) of tropical forests, that started life with a
secessionist movement from mineral rich Katanga
Province, in the absence of the budgetary resources
to properly administer the entire country and pau-
city of educated citizens and skilled manpower, not
to mention the constitutional crisis involving con-
servative President Joseph Kasavubu and national-
ist Prime Minister Patrice Lumumba, 50 years have
been spent recycling crises. American President
Dwight D. Eisenhower (1953-1960) upon being told
that Lumumba was receiving military aid from the
Soviet Union gave thumbs down indicating he
should be assassinated, clearing the way for mili-
tary strongman Joseph Mobutu to dominate
Congo’s political scene for over 35 years. Mobutu
while a journalism student in Belgium was accused
of spying on other African students for the Belgian
authorities, including Congolese National Move-
ment leader Patrice Lumumba to whom he had be- Charismatic Congo nationalist hero and first Prime Minister
Patrice Lumumba (July 2, 1925-January 17, 1961) had a
come personal assistant; as a leader his personal-
rough political career that ended in his assassination
ization of income from his country’s mineral ex-
ports led to him frequently being branded in the la, Mobutu went into exile, dying in Rabat, Mo-
Western press a kleptomaniac. It is on record that rocco on May 16, 1997. Despite Kabila’s historical
Washington became particularly interested in association with Lumumba, his invading Alliance
Mobuto during the pre-independence negotiations des Forces Démocratiques pour la Libération du
in Brussels during the early part of 1960; and also Congo-Zaïre (AFDL) could not elude a Tutsi ethnic
that Fortune magazine in 1987 assessed President identity as apart from Kabila and the bulk of his
Mobutu’s personal fortune to have been $5 billion forces being Tutsi he was backed by Rwanda’s Tutsi
in 1984, including $4 billion cash in a Swiss bank Defence Minister Paul Kagame in the wake of a
account. Mobutu in 1971 had the country renamed Congolese army campaign against ethnic Tutsis in
‘Zaire”. Mobutu was once described in a West Af- Eastern Congo.
rica Magazine article as a dinosaur of the Cold War, Kabila installed himself as president in May
in reference to his eventually being politically aban- 1997 and three months later thanked all foreign
doned by his former Cold War backers in Western military forces for helping him while asking them to
capitals. return to their countries of origin. The Rwandan
Suffering from prostrate cancer and faced with troops reacted by moving to Eastern Congo and
advance on Kinshasa by the late Lumumba’s com- launching a rebellion, dubbed Rassemblement Con-
rades under the leadership of Laurent-Désiré Kabi- golais pour la Democratie (RCD), aiming to topple
99 Pan Africa & World Review 2nd Quarter 2010
Africa/Congo Democratic Republic Congo at 50
Kabila’s regime. To counter the influence of
Rwanda, Uganda supported formation of another
rebel group, styled Movement for the Liberation of
Congo, led by Jean-Pierre Bemba, the warlord son
of Congolese billionaire Bemba Saolona. Hence,
Congo was back in the grip of civil war, whereby the
United Nations Security Council once again author-
ized an international peacekeeping force sent
there. Successive attempts to seal a peace deal
have ended in return to armed hostilities.
Laurent-Désiré Kabila was assassinated in 2001
whereupon his son Joseph Kabila assumed power.
On July 30, 2006, after approval of a new constitu-
tion, Congolese went to the polls to elect their
president in the country’s first post-independence
multiparty elections. Kabila’s victory over Jean-
Pierre Bemba resulted in two days of violent
clashes between their supporters. A new election
was held on October 29, 2009, in which Kabila won
70% of the vote. Bemba insisted the election was
marred by irregularities, although international ob-
servers gave it a pass mark.
In 2009 the UN estimated Congolese were dy-
ing from assaults by marauding combatants at the
rate 45,000 a month. Estimates of casualties since Mobutu Sese Seko (October 14, 1930-September 7, 1997),
1997 run as high as 5.4 million. Frequency of vio- journalist and soldier, President of Zaire from 1965 to 1997
lence against women in Eastern Congo has been
highlighted in the media and become a major sub-
ject of international concern. In 2008 Britain’s
Guardian newspaper documented the testimonies
of over 400 female rape victims and various civil
society organizations have been involved efforts to
help the surviving victims.
Historically, the 1960-’64 UN force in Congo
was the largest to date as is the current UN force.
Unfortunately UN troops, along with those of the
Congolese government, have been accused of rape
and many UN civilian personnel have been impli-
cated in sexual scandals involving the local popula-
The Congo crisis remains one of the most in-
tractable in the world. In March 2009, in an at-
tempt to contain rebels’ activities, the Congolese Laurent Desire Kabila (November 27, 1939-January 18,
government allowed the Rwandan army, with the 2001) seized power from Mobutu in May 1997 only to be
support of the United Nations, to collectively expel assassinated less than four years later. Kabila, who received
the Democratic Forces for the Liberation of Rwanda military training in China during the early 1960s was from
(FDLR) rebels from DRC. The FDLR is one of the that time a leading guerrilla fighter for the forces that took
to the bush in Eastern Congo after the arrest of Patrice Lu-
most prominent Hutu rebel groups, which allegedly
mumba. In 1963 Kabila formed the People’s Revolutionary
committed acts of genocide in Rwanda in the early- Party and in 1965 hosted Latin American revolutionary Che
1990s. Guevara when he spent 6 months in Congo fighting along-
side the late Lumumba’s comrades in their quest to over-
throw the compradors.

100 Pan Africa & World Review 2nd Quarter 2010


Ethiopia’s Elections 2010


C ontroversy once again attended parliamen-

tary elections conducted under the reign of
Ethiopian People’s Revolutionary Democratic Front
(EPRDF), led by Prime Minister Melles Zenawi.
Complaints of pre-election intimidation were plen-
tiful, but the elections were conducted without vio-
lence. The turnout was large and Prime Minister
Zenawi’s EPRDF claimed a landslide victory. The
Prime Minister said he was willing to work with op-
position parties, while some opposition party lead-
ers acknowledged their organizational weakness
contributed to the whitewash. The opposition col-
lectively ended up with less than 15 seats in Ethio-
pia’s 547 seat Parliament, losing over 160 seats.
On May 31st 14 of the more than 60 political
parties that contested the May 25th elections ad-
dressed the press in Addis Ababa at Ghion Hotel,
congratulating EPRDF and affirming their accep-
tance of the results. Prominent among the 14 par-
ties were Coalition for Unity & Democracy (CUD),
All-Ethiopia Democratic Party (AEDP), and Ethiopian servers was that the playing field was skewed in
Democratic Party (EDUM). favor of the incumbent administration. The final
The parties in their 6 point resolution acknowl- report will not be released until approximately two
edged that the irregularities attending the election months after completion of the electoral process,
were not of a magnitude as to have affected the in which case it is expected to include any legal
results. While identifying problems and irregulari- challenges to the election process and results.
ties they encountered, they cautioned against vio- The EU preliminary report referred back to the
lence and urged all other parties to accept the removal of prominent opposition leaders from the
EPRDF victory. Observers of the African Union, the political scene in the aftermath of the more hotly
Coalition of Civic Associations and the European contested 2005 elections. In 2005, with elections
Union monitored the elections. drawing a 90% voter turnout, the EPRDF was de-
In its May 25th preliminary report the Euro- feated by the principal opposition in Addis Ababa.
pean Election Observation Mission-Ethiopia 2010 At that time the EU remarked on the "significantly
noted that while campaigning was low key up until enlarged freedoms for political campaigning in
the final days and the elections were peacefully comparison to previous elections." Political parties
conducted with large voter turnout, campaigning actively campaigned, the opposition was conspicu-
grew more intense in the final days leading up to ously active in the rural areas and the EU observer
election day and the EPRDF appeared to use state mission reported that the atmosphere "during the
resources for its campaign, particularly in the rural campaign was calm, culminating in two massive,
areas, which the opposition had no access to. How- peaceful rallies in Addis Ababa, one by the EPRDF
ever, campaigning did not degenerate into salient and one by the opposition." However, the opposi-
violence. The preliminary conclusion of the EU ob- tion complained of numerous incidents of intimida-
101 Pan Africa & World Review 2nd Quarter 2010
Africa/Ethiopia Elections 2010
tion and arrests of its supporters, some of which
the EU observer mission said it investigated and
Prominent Ethiopian political personalities
removed from the political scene prior to the 2010
elections include former judge Birtukan Mideksa,
a charismatic young lady who was among those
sentenced to life in prison following the 2005
elections and later pardoned. She was rearrested
and ordered to serve out her life sentence after
saying she had not asked for pardon. Melaku Te-
ferra, a political associate of Birkutan, was among
40 people arrested in April 2009 accused of in-
volvement in a coup plot directed by Berhanu
Nega. Both Melaku and Berhanu were jailed for
life in the wake of the 2005 elections, but after
being pardoned Berhanu went into exile, becom-
ing an economics lecturer at the University of
Pennsylvania and heading a political group that
advocates overthrow of the EPRDF.
Merera Gudina, an opposition politician and MelesZenawi, born May 8, 1955, left his medical studies at
political science professor at the University of Addis Ababa University (then known as Haile Selassie Univer-
Addis Ababa says that EPRDF set the stage for a sity) in 1975 to join the Tigrayan Peoples’ Liberation Front and
landslide victory in 2010 by writing the rules of ended up leading its guerilla army into Addis Ababa in 1991,
chasing out the dictator, Colonel Mengistu Haliemariam.
the 2008 local and by elections in such a way that
While Prime Minister of Ethiopia, Zenawi earned a MBA
the ruling party and its affiliates won all but 3 of
(Master of Business Administration) from the Open University
the seats being contested nationwide. Going into of the United Kingdom (1995) and a M. Sc. Economics degree
the May 25, 2010 elections EPRDF controlled from Erasmus University, Netherlands. His professors rated
every local council in Ethiopia. He described the him a smart and gifted student and in a public speech at
2010 election as a struggle to prevent Ethiopia George Washington University in the American capital, the
from becoming a one party state, a mission which Vice Chancellor of U.K.’s Open University said, "President Me-
the results indicated has for all practical purposes les Zenawi was a brilliant student who achieved distinctions on
failed. every course he took.” Indeed, Meles Zenawi in his interviews
If the 2010 elections reflected sobriety, the conveys impressive intelligence and a sense of worldly sophis-
tication, as well as a firm grasp of his job as Ethiopia’s Prime
campaigns 5 years ago became vitriolic. As the
Minister. Meles also comes across, consistent with his record,
May 15, 2005 elections drew near, first Deputy
as a man with a sense of immense power which he knows how
Prime Minister Addisu Legesse and then the UEDF to use and has no qualms about using it full throttle. That is
opposition coalition began likening each other to nothing unusual in Africa; especially when one heads a party
the death squads that perpetrated the 1994 geno- of former guerrilla fighters who equally have that sense of
cide in Rwanda, with the opposition going so far as power and are apt to crave it. Meles has adroitly survived in-
to use the comparison in a TV add in which it ternal party challenges to his power.
showed footage of the motion picture Hotel By establishing an EPRDF business empire Meles has not
Rwanda– according to the EU. only presided over a very thorny constitution related ethical
In May 2005 early results showed the opposi- matter, but established a neo-oligarchy.
EPRDF chief of headquarters Muktar Kedir told Reuters
tion substantially leading; taking all seats con-
following the party’s annual congress in September 2009 that
tested in Addis Ababa in both parliamentary and
Zenawi had wanted to resign as party leader ahead of the
local government contests. The afternoon of May 2010 elections but the party had decided all its frontline lead-
16th the opposition claimed it was halfway towards ers should remain in place for another five years, after which
winning a majority in the national parliament, request for retirement would again be considered.
though only about a third of the constituencies Meles Zenawi, now 55, enters his third 5-year term as
had reported complete results. Later that day the Ethiopia’s Prime Minister having presided over significant in-
governing Ethiopian People's Revolutionary De- crease in farmers’ earnings and initiation of the Tekeze hydro-
mocratic Front (EPRDF) announced it had won electric power project which aims to make Ethiopia a net elec-
tric power exporter.
Pan Africa & World Review 2nd Quarter 2010 102
Africa/Ethiopia Elections 2010
more than 317 of Parliament’s 547seats, while
conceding that opposition parties had won all 23
seats in the capital, Addis Ababa. The two major
opposition parties, the Coalition for Unity and De-
mocracy (CUD) and the United Ethiopian Democ-
ratic Forces (UEDF) claimed on that same day that
they had won 185 of the approximately 200 seats
for which the National Election Board of Ethiopia
(NEBE) had released preliminary results. The oppo-
sition had only 12 seats in the outgoing parlia-
Announcement of the final results was de-
layed past the June 8th legal deadline ostensibly
owing to the opposition claimed that the Addis
Ababa vote was rigged during the evening of May
16th. The Prime Minister declared a state of emer-
gency, outlawed any public gatherings, assumed
direct command of the security forces and re-
placed the capital city police with federal police
and special-forces drawn from elite army units.
The NEBE, simultaneously, ordered vote tallying to
stop; an order not rescinded for nearly a week.
The independent election monitors, as well as the
opposition objected to this. 188 meter long dam at Tekeze, Tigray Region, North Ethio-
On May 27 NEBE released a report that the pia, designed to generate 300 megawatts of electricity was
EPRDF had won 209 seats, its affiliated parties 12 inaugurated November 15, 2009. It was completely funded
and the opposition parties 142. "These results are by Ethiopia’s resources.
provisional, and these results could change be-
cause we are looking into complaints by some of United Ethiopian Democratic Forces (UEDF). The
the parties," said NEBE spokesman Getahun opposition parties decided to boycott the remain-
Amogne. While the EU observers "assessed the ing 31 constituency elections on August 21st. On
closing and counting processes negatively in al- September 5, 2005 NEBE released the final results,
most half of urban polling stations observed, a giving EPRDF 327 parliamentary seats and the op-
very high figure for international observers to re- position 174.
cord, and even worse in rural polling stations ob- That was not quite the end of the matter. On
served," students and others resorted to demon- October 18, 2006, the draft report of a 10-
strations, resulting in 36 persons dead and thou- member public inquiry into election-related un-
sands arrested. The crisis attracted global media rests was released to Associated Press (AP). It con-
and political attention, with Prime Minister Melles cluded that 199 people (193 civilians and six po-
Zenawi accused of a ruthless assault on opposi- licemen) were killed and 763 were injured, signifi-
tion. Commentaries on Washington’s support for cantly conflicting with the Zenawi government
its principal Horn of Africa ally, Melles Zenawi, claim that 61 civilians and seven policemen were
made the crisis somewhat of an international po- killed. The vice chairman of the inquiry, judge
litical scandal. Wolde-Michael Meshesha, fled Ethiopia a month
When official results for the May 15, 2005 prior to the report’s release, after receiving
elections were finally released by NEBE on August anonymous death threats. He accused the govern-
19th, after re-polling in some disputed constituen- ment of trying to intimidate members of the in-
cies, EPRDF was said to have won 296 seats, giving quiry after learning about its controversial find-
it a 54% majority and the right to form the next ings.
government. In addition, EPRDF allied parties ac- The opposition came out of the 2010 elec-
cording to NEBE won 22 seats. Leading opposition tions with only 13 parliamentary seats. Coalition
party Coalition for Unity & Democracy (CUD) came of Ethiopian Civic Society Organizations (CSOs)
out with 109 seats, followed by 52 seats for which participated in election monitoring rated
103 Pan Africa & World Review 2nd Quarter 2010
Africa/Ethiopia Elections 2010
the elections free and fair by any standard. Brief- Also, the EU report, in acknowledging that
ing local and foreign reporters in Addis Ababa on Ethiopian media coverage of campaign events
May 24th Coalition Chairperson Tadele Yimer said generally was neutral and proportional, the Voice
election observers of the coalition witnessed that of America's Amharic Service had been jammed
the process of the national elections was peaceful, during the last two weeks of the campaign, which
free, fair, democratic and up to international stan- "contributed to reduce the possibility for voters to
dards. According to Yimer, observers of the coali- receive information from a wider range of
tion confirmed that the pre-election, balloting, sources."
and post-election processes were carried out as In summary, the critique of the EU found the
per international standards and norms. He cited elections "fell short of certain international com-
endorsement of relevant election guidelines and mitments, notably regarding the transparency of
laws, extension of voters’ registration period, gov- the process and the lack of a level playing field for
ernment’s financial subsidy to contesting political all contesting parties," though it acknowledged,
parties for the first time in the history of the na- “Overall, the National Electoral Board of Ethiopia
tion, provision of free airtime and newspaper col- (NEBE) administered the elections in a competent
umns to parties as well as scheduling street- and professional manner, overcoming significant
canvassing close to the balloting day as indications technical challenges.”
that Ethiopia’s 2010 elections were indeed credi- Ethiopia Broadcasting Authority, in address-
ble. ing the issue of opposition political party media
While the Obama Administration praised the access, noted in a June 21, 2010 release that in
peaceful conduct of the lections and the high accordance with the Amended Election Law of
voter turnout, it observed that the incumbent ad- Ethiopia, Proclamation No 532/2007 article 59(2),
ministration did not shy away from using re- which states “candidates shall be entitled to get
sources of the state in the PRDF campaign. In a access to free airtime on the state owned media,
May 25 statement, U.S. National Security Council it prepared a directive of allocation of free airtime
spokesman Mike Hammer described limitations and newspaper columns for political parties; and
placed on independent observers, such as pre- also “conducted a participatory discussion on the
venting U.S. Embassy officials from leaving the draft document of the directive with the political
capital to observe the vote and harassing inde- parties and concerned bodies before its approval
pendent media representatives. He called such and set into practice.” The Ethiopian Broadcasting
actions "deeply troubling." Authority has replaced the Ministry of Informa-
On the other hand, the EU Observation Mis- tion.
sion deployed its 90 long term observers to all re- The rationale of former EPRDF military com-
gions of the country as early as April 24th, one mander Seeye Abraha Hagos, now a member of
month before election- day. the opposition coalition known as Forum, that
Hammer’s charge that in recent years the the most important thing for Ethiopia’s political
Ethiopian government "has taken steps to restrict development is avoidance of violence, especially
political space for the opposition through intimida- in connection with elections, seems to reflect the
tion and harassment," as well as by tightening its thinking of most Ethiopians inside the country
control over civil society and curtailing the activi- today. Pointing out that election related violence
ties of independent media in the country, was not was not a novelty for Ethiopia in 2005, Hagos ar-
inconsistent with the implications of the EU obser- gues, "There is always violent opposition in Ethio-
vation that since the 2005 elections narrowing of pia. So if we are ever going to control violence in
the political operating space for opposition parties this country, the only way out is to chart a peace-
has more deeply entrenched EPRDF in power. In ful political transition. No peaceful elections, no
this regard, the preliminary EU report said: “The peaceful political transfer of power would mean
fragmentation of the main opposition forces in the there will be continuous violence in this country,
aftermath of the 2005 elections, together with the and this can take this country down the drain
departure of important opposition figures from given our poverty."
the Ethiopian political scene, in conjunction with
changes to the legal framework have resulted in a
cumulative narrowing of the political space within
the country.”
104 Pan Africa & World Review 2nd Quarter 2010

Ethiopia in $2bn industrial zone deal with

Turkish company
built the Istanbul
Ikitelli Industrial
Report Zone which cov-
ers as an area of
7,000 square

T he Ethiopian government announced on

April 6 that it would contribute 600 million
dollars towards the Turkish Industrial Zone to be
miles and has
38,000 factories.
His idea was to
established in Ethiopia by AKGUN Construction encourage in-
and Machinery, a Turkish company. dustrialization
According to State Minister of Trade & In- on the outskirts of the Istanbul metropolis rather
dustry Tadesse Haile negotiations were being fi- than within it.
nalized an agreement would be signed before His vision for the Ethio-Turkish Industrial Zone
April ended. in Legetafo, some 15 km on the outskirts of Addis
The Ethiopian government contribution Ababa is that it will provide some 800,000 employ-
would represent 30% of the total construction ment opportunities and generate exports of $5 to
cost of $2 billion and cover infrastructure devel- $10 billion annually.
opment, including electrical power installation, According to Yusug Akgun he started business
road construction and water supply. Construction In Ethiopia in 2005 supplying construction materi-
could begin this year if the company, which runs als and when he met Prime Minister Meles Zenawi
an investment zone in Turkey, begins operation the Ethiopian leader convinced him that an indus-
according to its plans, in mid-2010. trial zone project like the one he started in Turkey
The industrial zone will be constructed in would work well in Ethiopia. “So with his support
Legetafo, in the Oromia Special Zone, on the out- and his vision we started to work on this project,”
skirts of Addis Ababa. It will have a total area of he said in a recent interview with Somali based
1,460 hectares where textiles, leather, pharma- Khilil5 Online.
ceuticals packaging, metal, and food stuff proc- Akgun subsequently invited Ato Aba Dulla
essing industries from Turkey are expected to Gemeda, President of the Oromia regional state,
take plots. A total of 60 companies are expected the Foreign Minister, the Minister of Trade & In-
to move to Ethiopia with the completion of the dustry and the Defense Minister to visit Turkey’s
zone. Ikitteli Industrial Zone and they came away enthu-
There will also be a vocational training cen- siastic to have such a project in Ethiopia. That was
tre to train potential employees for the compa- in September 2009.
nies. There are also expected to be hospitals and Aba Dulla jokingly said, “I am not leaving Tur-
hotels. key without signing a memorandum of under-
The zone could create direct and indirect standing.” According to Yusuf Akgun, “So a memo-
employment for up to one million people, accord- randum came out of nowhere and with that we
ing to Yusuf Akgun, AKGUN chairman. started to think of the project and work on it.”
When the industrial zone becomes fully opera- “Turkey has 260 organized industrial zones. In
tional, it is expected to lead to an estimated ex- my opinion, this plan is better than those in Turkey
port of 15 billion dollars per year, according to and I believe it is better than those in Europe as
CASTA Consultancy, the firm conducting the fea- well.,” Yusuf Akgun said.
sibility study. Ethiopia’s Minister of Foreign Affairs Ato Sey-
Akgun Company is a family owned business oum Mesfin referred to the plan of the Ethio-
headed by Yusuf Akgun, working together with Turkey Industrial Zone as exemplary and "Mother
his three sons. The company was established in of all Projects.”
1968. He conceptualized and starting from 1984
105 Pan Africa & World Review 2nd Quarter 2010
Africa/Ethiopia/Road Development

East African Business Week (Kampala)

African Development Bank's U.S.$125.6 Million

for Mombasa-Addis Road to Boost Trade
David Muwanga
June 14, 2010

Kampala — Completion of phase II of the construc-

tion of the Mombasa-Nairobi-Addis Ababa road is
expected to boost trade between Kenya and Ethio-
pia as it will reduce transport and shipping costs.
The African Development Bank (AfDB) has given a
loan of $125.6 million to the government of Ethio-
pia to finance the construction of the Mombasa-
Nairobi-Addis Ababa Road corridor project phase
The loan for an amount of $125.6 million was
signed by Mr. Sufian Ahmed, Minister of Finance
and Economic Development, representing the gov-
ernment of Ethiopia and Mr. Lamin G. Barrow, the
(Above) Addis
bank's resident representative in the Ethiopia
Ababa Mercato
Country Office.
The road is expected to boost trade be-
tween the countries since it will reduce transit (Right) Port at
time for imports and exports and increase the Mombasa, Kenya
volume of Ethiopian goods transiting through through which
Mombasa port in Kenya. landlocked Ethio-
The road corridor development program, pia moves much
which is being implemented in three phases, will of its foreign
also promote increased intra-regional trade and trade
regional integration in East Africa and the Horn government's to address the non-physical barri-
of Africa. ers that are paramount to fostering increased
Mr. Sufian Ahmed highlighted the impor- trade between the two countries.
tance of this multinational project as another On the Ethiopian side, this multinational
clear indication of the bank's commitment to road project involves the rehabilitation to bitu-
support the development of Ethiopia. men standard of the 193 km long Ageremariam-
The bank's resident representative under- Yabelo-Mega road section, construction of road-
scored the significance of this New Partnership for side socio-economic infrastructure, construction
Africa Development (NEPAD) flagship project as it of a One-Stop-Border-Post at Moyale and drilling
will support the Ethiopian government's efforts to of 12 community water wells within the project
diversify access to seaports and help redress the area, which is located in the southern and south
apparent marginalization of the horn of Africa western part of the country– mainly in Oromia
countries from the recent boom witnessed in intra region.
-Common Market for Eastern and Southern Africa The road is an important section of the Trans-
(COMESA) trade. African Highway Network and aims at improving
In reaffirming the bank's commitment to provide transport links between Kenya and Ethiopia for
continued support to the two governments in de- the benefit of both countries and the wider East
veloping this road corridor, Barrow also asked the Africa and Horn of Africa regions.
106 Pan Africa & World Review 2nd Quarter 2010
Africa/Ghana/ Economy
Ghana Business News Saturday, April 17, 2010
Ghana’s exports for first quarter of 2010 increase by 20.9%
Provisional data He said volumes of crude and oil products
on the external imported in the economy declined by 9.5 per cent
sector indicate to 622,417 metric tonnes from 687,497 metric
that Ghana’s tonnes a year ago.
total merchan- The Governor said capital and intermediate
dise exports for goods together accounted for 75.1 per cent of to-
the first quarter tal non-oil imports at the end of the first quarter of
of2010 2010, compared with 69.5 per cent recorded in a
amounted to 1.7 similar period of 2009.
billion dollars, a The trade balance recorded a reduced deficit
growth of 20.9 per cent on year-on-year basis. of 487 million dollars in the first quarter of 2010,
Cocoa beans and products earned 704.1 mil- which compares favourably with a deficit of 665.5
lion dollars, an increase of 28.5 per cent and gold million dollars recorded in the corresponding pe-
earned 678.2 million dollars, an increase of 16.5 riod of 2009.
per cent. The Gross International Reserves position of
These compared with 35.9 per cent in the the Bank of Ghana which had increased to 3.2 bil-
export of cocoa beans and products in 2009 and a lion dollars in December 2009 grew further by 4.4
decline of 4.4 per cent in gold exports. per cent in the first quarter of 2010 to 3.3 billion
Addressing a press conference in Accra on dollars, translating into three months cover of im-
Friday, Mr Kwesi B. Amissah-Arthur, Governor of ports of goods and services.
Bank of Ghana, said, however, that concerns ex- This compares to gross reserves of 1.8 billion
isted over the attainment of the 2009/2010 major dollars in March 2009 (or 1.8 months of import
season target of 650,000 tonnes of cocoa pur- cover).
chases. Private inward transfers – received by NGOs,
By the first week of April 2010, only 518,304 embassies, service providers, individuals and oth-
tonnes had been purchased compared with ers – through the banks amounted to 1.6 billion
562,538 tonnes at the same time during the dollars in the first two months of 2010, represent-
2008/2009 crop season. ing 27 per cent increase over the amount of 1.3
The crop size at the close of the 2008/2009 season billion dollars for the corresponding period in
was 634,256 tonnes. 2009.
Mr Amissah-Arthur said other exports during The Governor said of the total transfers,
the review period improved by 17.6 per cent from 239.7 million dollars (15.1 per cent) accrued to
280.9 million dollars to 330.2 million dollars in the individuals, compared with 223.1 million dollars
first quarter of 2010, compared with 20.4 per cent (17.8 per cent) recorded for the same period in
growth recorded in a similar period of 2009. 2009.
Total merchandise imports in the first quarter He said the favourable external environment
of 2010 amounted to 2.2 billion dollars, 5.9 per continued to support the stability in the foreign
cent higher than the level recorded in the first exchange market. The nominal exchange rate of
quarter of 2009. the cedi against the dollar, show that in the cedi
Oil imports for the three-month period depreciated on year-on-year terms by only 2.5 per
amounted to 399.1 million dollars or 43.9 per cent cent compared with 29.2 per cent a year earlier.
above the 277.4 million dollars recorded a year For the period January – March 2010 how-
ago. ever, the cedi appreciated by 0.7 per cent against
Mr. Amissah-Arthur said the increase was the dollar. This compares with a depreciation of
mainly due to a price effect, as the average real- 11.9 per cent over the same period in 2009.
ized price recorded for crude oil imports was 64.1 Source: GNA
per cent above the 47.9 dollars per barrel realized
a year ago.

107 Pan Africa & World Review 2nd Quarter 2010

Africa/Ghana/ Economy
Ghana Web Wednesday, June 2, 2010
Ghana lost €36 million of gold revenue in 2 years
G hana, between 2007 and 2009, lost approxi-
mately €36 million, in mining revenues that
have been repatriated without the necessary taxes
to government, a new report on mining has said..
This loss became possible as a result of al-
leged transfer mispricing and fixed low local reve-
nues in Ghana, which the report also says had af-
fected the fixing of royalties to the country by min-
ing firms.
The two Danish Non Governmental Organiza-
tions (NGOs) DanWatch and Concord who con-
ducted the research in Ghana released the report
in Copenhagen last week, under the heading: “
Golden Profits on Ghana's Expense- An example of Ghana gold bars
incoherence in EU policy"
“Money lost to tax evasion by African coun- (2009) that from 1990 to 2007 Ghana had fore-
tries, indirectly plunged back to the European and gone royalties corresponding to $388 million, if
North American economy, is calculated to be ten mining companies had paid 6% rather than 3%.
times more than money spent on development aid And $1.163 billion if mining companies had paid 12
for Africa. According to new research, in the pe- % rather than 3%, adding, “This sum by far ex-
riod 1970 to 2008, Africa lost $ 854 billion in cu- ceeds the remission of debt Ghana has been
mulative capital flight. From 2000 to 2008, illicit granted in the same period.” It also quoted Steve
outflows from Africa accelerated by 25% coincid- Manteaw, Communicatins Director of ISODEC, and
ing with a boom in mineral prices,” it revealed. one of Ghana's leading experts on national mining
The report went further to reveal how tax operations, as having stated that studies had
evasion and capital flight from developing coun- shown that these operations also have a negative
tries is outnumbering development aid by a factor effect on the environment that equals between
of one to ten, using the case study of how Ghana four and ten percent of the country's GDP. "Thus,
sees little revenues from its immense gold riches. taking the mining operations' environmental con-
It also demonstrated how multi-national com- sequences into perspective, the economic effect
panies generate great revenues from Ghana's rich upon Ghana's GDP is in fact negative," the report
gold resources without leaving sums worth men- says.
tioning in the country. “International tax havens Among the reasons for the low economic im-
make it possible to dupe Ghanaian coffers,” it pact of Ghana's massive mining industry is that,
added. like in most African countries, mining corporations
“Ghana is a major mining country, and export are offered significant tax advantages. "They are
of minerals and metals in 2007 made up 43% of exempted from duties, for example on fuel and
Ghana's total export revenue. Bauxite, manga- the import of machines, they pay a lower tax per-
nese, diamonds and gold are all extracted in centage, and they can reduce their tax base
Ghana, the report stated, adding that in 2007, through special deductions," the report says, add-
Ghana produced 83.6 tonnes of gold. “But, less ing that "through aggressive tax planning, these
than 10% of Ghana's total tax revenue came from corporations further diminish their tax payments."
the mining industry and mining operations only African countries typically collect between 30
contributed an estimated five percent to the Gha- and 35% in corporate taxes from the mining indus-
naian GDP, according to the Ghana Minerals Com- try. Ghana only collects 25% of the mining corpo-
mission,” the report added. rations' profits in corporate taxes.
The report quoted from a work by Charles "However, many corporations manipulate
Ayamdoo and Thomas Akbzaa: “Towards a fair and their profits in Ghana so they appear lower than
equitable taxation for sustainable development they really are, sometimes even making them so
108 Pan Africa & World Review 2nd Quarter 2010
Africa/Ghana/ Economy Ghana lost $36 million of gold revenue
low that they are exempted from paying any cor-
poration tax at all," the report says.
Labadi Beach Hotel
According to DanWatch and Concord Den- 1 Laby Pass, Labadi Beach, Trade Fair, Accra, Ghana
mark, this can easily be done by the way multi- Accra, Ghana
national companies are allowed to make their bal- Make booking through
ances. "Corporations can move their profits to Just a phone call away: +44 (0) 20 713 66 278
countries with low or even no taxation," the report
says. "The most commonly used method for mov-
ing profits is transfer mispricing."
In Ghana, the alleged transfer mispricing and
fixed low local revenues also influence royalties of
the value of extracted minerals, the other source
of revenue from mining companies. Ghana calcu-
lates the royalty rate to a minimum of three per-
cent, which is raised accordingly with the com-
pany's profits up to a maximum of six percent.
Low profits on paper will thus also ensure
lower royalty payments, the report holds. The loss
in royalty revenues could amount to hundreds of
millions of Euros during the last decade, mining
analysts have calculated.
"The current international tax regulation
framework makes it impossible to estimate
whether the corporations are paying a fair amount
of tax to the developing countries, because they
are only obliged to produce an annual report which
covers the entire corporation group."
The report also took issues with the European
Union, accusing it of double standards in taxation.
Many of the world's leading tax havens are on
European soil and the EU, in protection of its multi-
nationals, has done little to halt this development.
The report called for sanctions against tax ha-
vens in Europe and beyond. Further, Ghana and
other developing countries should be assisted in
capacity building to help them collect their rightful
In his preliminary response, Minister for Lands
and Natural Resources, Collins Dauda, who had not
yet seen the report, said his outfit would like to
study the report and see what can be done to
maximize revenues for Ghana.
“Every government would like to maximize
revenue, so if there is a way of doing this, why not?
We would like to study and do it well,” Hon. Dauda
told the Financial Intelligence. He however added
that revenue generation and its maximization is
one thing while the utilization is another.
“We generate a lot of revenue in this country
but how well we have used it is my main concern,”
he stated.
Source: Financial Intelligence (
Justice Lee Adoboe
109 Pan Africa & World Review 2nd Quarter 2010

Ghana Stock Exchange

Ghana Stock Exchange: Market Report for the 1st Quarter 2010
Market Summary
• The GSE All Share Index closed at 6,014.34 points. On a YTD basis, the GSE All-Share
Index registered a positive return of 7.93% (442 points). The highest level for the
index during this 1st quarter was 6,027.28 points on March 30, 2010.
• Total equity market capitalization at the end of the 1st quarter 2010 reached GHC 17,
815.51 million (US$ 12.566 billion), a decrease of 1.25% compared to the same
period of 2009.
• The total value of shares traded for the 1st quarter 2010 reached GHC 19.13 million
(US$ 13.49 million), an increase of 38.82 % compared to the same period of 2009.
• The total volume of shares traded reached 26.58 million for the 1st quarter 2010
compared to 17.32 million shares traded during the 1st quarter of 2009, which is an
increase of 53.46 %.
• The number of trading days during 1st Q 2010 was 64 against 63 trading days during
1st quarter of 2009.

New Equity Listings

There was no new equity listing. The following additional equity listings were re-
1. 20,000,000 ordinary shares of Golden Star Resources Limited were listed in
February as a result of a public offer in the US and Canada.
2. 48,893,894 ordinary shares of SG-SSB Limited were listed in January as a
result of a rights issue.
3. 69,546,438 ordinary shares of CAL Bank Limited were listed in January as a
result of a rights issue.
4. 24,800,706 ordinary shares of HFC Bank (Ghana) Limited were listed in
March as a result of a placement.
The contents of this report complement the information provided by the Ghana Stock Exchange’s Mar-
ket Statistics for March 2010. The classification of sectors has been modified slightly for the current
analysis such that banks and insurance companies have been placed under the financial sector and the
two companies that do business in the printing industry have been added to the manufacturing sector.
All enquiries related to this report should be mailed to

110 Pan Africa & World Review 2nd Quarter 2010

Africa/Guinea/General Elections

Guinea breaking the grip of dictatorship


G uinea on June 27 held the first veritable

multiparty democratic elections in the 52
years since its independence from France. In
keeping with the transition plan announced in
January by General Sékouba Konaté, head of
Guinea's military junta, no member of the ruling
National Council for Democracy & Development
ran for office. More than 20 candidates stood for
the office of president, out of which former prime
minister (2004-2006) Cellou Dalein Diallo, 58,
candidate of the Union of Democratic Forces in
Guinea (UFDG) and veteran opposition leader,
dating back to the 1960s, Alpha Condé, 70, the
Rally of Guinean People (RPG) candidate, were as
leaders of the two largest parties the favored
candidates. It marked complete reversal of last Union of Democratic Forces in Guinea (UFDG) presidential can-
year’s trend of events when more than 150 peo- didate, Cellou Dalein Diallo, an economist and former prime
ple demonstrating at the national stadium in minister, speaking to the press following the launching of his
Conakry for democratic elections were killed campaign.
when soldiers opened fire on the crown. That
palpable sense of excitement and expectation
was followed by an assassination attempt last
among Guineans, who hope for a meaningful
December against the junta leader who seized
democratic transition and civilian government."
power upon the death of General Lansana Conté
Despite the commendations and optimism,
toward the end of 2008, Captain Moussa Dadis
on June 30th 20 of the 24 participating political
Camara. With Camara recuperating from gunshot
parties launched allegations of election fraud.
wounds to the head in Morocco, General Sék-
"We found massive fraud in Conakry (the capi-
ouba Konaté put together credible transition plan
tal) and its municipalities...and in Siguiri and
that was in January discussed with Captain
Kankan (major cities in the northern part of the
Camara and Burkina Faso President Blaise Com-
country)," said Zalikhatou Diallo, campaign di-
paoré in Ouagadougou. Upon that Ouagadougou
rector for Lansana Kouyaté, the leader of the
Agreement the historic elections in the world’s
Party of Hope for National Development (PEDN).
principal repository of bauxite were held of June
Lansana Kouyaté, a former prime minister under
the late President Lansana Conté, is best known
Prior to the election, America’s most active
for his leadership of the Economic Community
election observer organization in Africa issued
of West Africa States (ECOWAS), serving as its
the following statement: "The Carter Center ob-
Executive Secretary in the late 1990s.
servation mission in Guinea is encouraged by the
Ms Zalikhatou said her party had ap-
positive tone of the electoral campaign in Guinea,
proached the electoral commission about inci-
including candidates' messages promoting recon-
dents of stuffing ballot boxes and in some places
ciliation and transcending ethnic boundaries, and
in Kankan there were more voters than had
by the National Electoral Commission's (CENI)
been registered. In Sigiri she said there had
commitment to inclusive elections. There is a
been "fraud and ballot-stuffing as well as voter
111 Pan Africa & World Review 2nd Quarter 2010
Africa/Guinea/General Elections Guinea breaking the grip of dictatorship
intimidation and multiple voting". The party of
presumed frontrunner, former prime minister
Cellou Dalein Diallo, alleged ballot boxes had
disappeared temporarily during the night fol-
lowing the voting.
Preliminary results were expected during
the first week of July. If no candidate get’s more
than 50% of the vote a run off would take place
on August 14th. Voter turnout was estimated at
77% of the electorate. The country of 10 million
inhabitants counted 4.2 million registered vot-
The Guinean president serves a five year
term and appoints a prime minister.
Ahmed Sékou Touré (bottom) who led Guinea to
independence from France in 1958 was a charis-
matic dictator whose biographer appropriately de-
scribed him as hero and tyrant. An ascetic, he was a
high profile anti-imperialist but also a shrewd, cun-
ning and ruthless political operator who ruled
Guinea from independence until his death from
heart failure in 1984.
Self taught, Touré rose to prominence as secre- Veteran opposition leader Alpha Condé speaking to press
tary general of the French West Africa Trade Union after June 27th election. Condé, 72, a professor of econom-
Syndicate during the colonial era, in which capacity ics, has opposed every leader of Guinea, all of whom were
he led an unprecedented 60 day strike against the dictators, since independence in 1958. He ran for president
French. Prior to assuming the presidency of Guinea against General Conté in 1993, 1998. Following his loss in
upon independence he was the elected mayor of the the 1998 election he was charged with attempting to recruit
country’s capital city, Conakry. A prolific author, forces to destabilize the government and subsequently sen-
Touré has over 20 titles to his credit, including, “The tenced to five years imprisonment. President Conté pardoned
United States of Africa,” based on a speech he made and released him in 2001 on condition that he be prohibited
at the Summit of the Organization of African Unity from engaging in political activities. After Conté’s death Al-
in 1976 calling for a single continental government. pha Condé fell out with head of the military junta that seized
He was a loquacious orator, ironically with a voice power Captain Moussa Dadis Camara.
tone reminiscent of Adolf Hitler’s.
Area: 94,926 square miles
(245,857 sq. km)

Population: 10, 057,975

Nominal GDP: $4.394 billion

Nominal Per Capita Income: $414

PPP GDP: $10.516 billion

PPP Per Capita Income: $991

UNDP Human Development ranking 2007: 160th

Currency: Guinea Franc

Principal Exports: bauxite, iron ore, gold, diamond,

pineapples, coffee, bananas, palm oil

112 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/ International Cooperation
United States Department of Justice (Washington, DC)
June 1, 2010

Manhattan U.S. Attorney Announces Unsealing of

Charges Arising from Historic Joint Undercover Operation
in The Republic of Liberia
DOCUMENT The defendants have been charged in two
The following report is on the result of the United Indictments that were unsealed today. The first
States Drug Enforcement Administration's indictment -- S8 09 Cr. 524 – charges five defen-
"Operation Relentless," which culminated in arrest dants: Umeh, Yaroshenko, French, Mawuko and
of eight defendants for conspiring to use Liberia as Jorge Ivan Salazar Castano , aka "El Chavel." The
staging area for distribution of more than $100 second indictment, which bears docket number
Million worth of cocaine. The son of the President 10 Cr. 457 , charges three defendants: Kamara,
of Liberia acted under cover in the investigation. Sesay and Jalloh. Also unsealed today was a com-
plaint -- 10 Mag. 1166 -- which charges one de-
Five defendants – Chigbo Peter Umeh , aka " fendant, Marcel Acevedo Sarmiento , aka "Jota,"
Emeka Okonkwo ," aka "Chigbogu Umehwunne," aka "JJ," aka " Juan Restrepo," who is alleged to
aka "Mike," aka "Chibue," aka "El Negro," Kon- have been a co-conspirator of the conspiracy
stantin Yaroshenko , Gilbrilla Kamara, aka " Gibril charged in Indictment S8 09 Cr. 524. Acevedo
Kamara ," aka " Anthony Smith ," aka "GK," aka Sarmiento remains at large.
"Gibry," aka "Gee Wee," aka "River Stallon," Ali According to the Indictments and Complaint
Sesay , aka "Aliue Sesay," aka " Alie Sesay ," and unsealed today:
Gennor Jalloh, aka " Chernoh Nuhu Jalloh " – ar- During the last decade, drug trafficking or-
rived in the Southern District of New York from ganizations based in South America have increas-
Liberia on May 30, 2010 , to face charges of con- ingly used countries along or near the West Afri-
spiring to import cocaine into the United States. can coast as trans-shipment hubs for importing
The defendants, who were arrested in coordi- massive quantities of cocaine to be later distrib-
nation with Liberian authorities on May 28 and 29, uted in Europe or elsewhere within Africa.
2010, were transferred by the Government of Li- Through a combination of privately owned aircraft
beria to the custody of the United States to face and maritime vessels, these organizations, pre-
narcotics trafficking charges in the U.S. District dominantly based in Colombia and Venezuela,
Court for the Southern District of New York . This have transported hundreds of tons of cocaine,
marks the first defendant transfer by the Govern- worth billions of dollars, to places such as Guinea
ment of Liberia to the United States in connection Bissau, Guinea Conakry, Sierra Leone, Togo, Mali,
with narcotics-related charges in over 30 years, Ghana, Nigeria, and Liberia. In so doing, represen-
announced Preet Bharara, the U.S. Attorney for tatives of these drug trafficking organizations have
the Southern District of New York , and Michele M. often sought to bribe high-level public officials
Leonhart , the Acting Administrator of the U.S. with large cash payments and narcotics in order to
Drug Enforcement Administration (DEA). ensure the safe passage, storage, and distribution
Two additional defendants -- Nathaniel of their cocaine shipments.
French , aka "The Frenchman," aka "The Expert," Since in or about 2007, the defendants have
and Kudufia Mawuko, aka "Marco" – were ar- attempted to bribe high-level officials in the Libe-
rested by Liberian authorities this morning. They rian Government in order to protect shipments of
are expected to be transferred to United States vast quantities of cocaine, and to use Liberia as a
custody shortly. One additional defendant -- Jorge trans-shipment point for further distribution of
Ivan Salazar Castano , aka "El Chavel" – was previ- the cocaine in Africa and Europe. In particular,
ously arrested in Spain , and remains in Spanish certain of the defendants met with two individuals
custody. they knew to be Liberian government officials −
the Director and Deputy Director of the Republic

113 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/ International Cooperation
Manhattan U.S. Attorney-Republic of Liberia Historic Joint Undercover Operation
of Liberia National Security Agency ("RLNSA"), officials and the CS in connection with at least
both of whom (unbeknownst to the defendants) in three different shipments of cocaine that they
fact were working jointly with the DEA in an un- were trying to transport through Liberia: (1) a
dercover capacity ("UC-1" and "UC- shipment of approximately 4,000 kilograms, which
2",respectively). was to be flown from Venezuela to Monrovia, Li-
The Director of the RLNSA is also the son of beria, and the retail value of which was over $100
the current President of Liberia. In a number of million; (2) a shipment of approximately 1,500
the meetings involving these Liberian officials, kilograms, which was to be flown from Venezuela
the defendants also met with a confidential to Monrovia, Liberia, on an aircraft originating in
source working with DEA (the "CS"), who pur- Panama; and (3) a shipment of approximately 500
ported to be a business partner and confidante kilograms of cocaine, which was to be transported
of the Director of the RLNSA. by a ship from Venezuela to a location off the
In seeking to ensure the safe passage of their coast of Liberia. Through these meetings, the de-
cocaine shipments, the defendants agreed to fendants all understood that once the cocaine was
make payments to the Director and the Deputy transported to Liberia, a portion of the shipment
Director of the RLNSA in cash and also in the form (representing the payment to the CS) would be
of cocaine. The CS advised the defendants that a transported into Ghana, from where it would be
portion of the cocaine paid to the CS would be placed on a commercial flight destined for the
transported from Liberia to Ghana, from where it United States.
would be imported into New York. During a meeting in Monrovia, UMEH stated
that the 4,000 kilograms of cocaine which the
The S8 09 Cr. 524 Indictment conspiracy intended to import into Liberia had
been supplied and protected by the Fuerzas Ar-
According to the S8 09 Cr. 524 Indictment, UMEH, madas Revolucionarias de Colombia (the
42, who is from Nigeria, was a broker who assisted "FARC"). The FARC is an international terrorist
various international narcotics suppliers in ship- group dedicated to the violent overthrow of the
ping numerous tons of cocaine from South Amer- democratically elected Government of Colombia.
ica to West Africa, from where the cocaine was On May 28 and 29, 2010, defendants UMEH
transported to Europe or elsewhere within Africa. and YAROSHENKO were arrested in Liberia. On
SALAZAR CASTANO, 44, who is from Colombia, May 30, 2010, they were transferred to United
was a cocaine supplier based in Colombia and States custody and brought to the Southern Dis-
Spain, who, together with his co-conspirators, sent trict of New York, where they will make their first
large commercial aircraft containing cocaine from court appearance latertoday. Defendants
South America to West Africa, as well as smaller, FRENCH and MAWUKO were arrested in Liberia
private airplanes that departed from clandestine this morning, June 1, 2010, and are expected to
airstrips in Venezuela. YAROSHENKO, 41, who is be transferred to United States custody shortly.
from Russia, was an aircraft pilot and aviation Defendant SALAZAR CASTANO is presently incar-
transport expert who transported thousand- cerated in Spain.
kilogram quantities of cocaine throughout South The S8 09 Cr. 524 Indictment has been as-
America, Africa, and Europe. FRENCH, 51, who is signed to United States District Judge JED S. RA-
from Ghana, assisted drug suppliers by providing KOFF for the Southern District of New York.
logistical support and coordination for maritime
shipments of cocaine across the Atlantic Ocean. The 10 Cr. 457 Indictment
MAWUKO, 57, who is also from Ghana, assisted As set forth in Indictment 10 Cr. 457, since at least
the drug suppliers through his extensive knowl- in or about 2007, KAMARA, 40, who is from Sierra
edge of maritime navigation, including the devel- Leone, has actively sought to recruit South Ameri-
opment of sea routes that could evade law en- can drug trafficking organizations to establish op-
forcement radar. erations in various West African countries, includ-
The defendants participated in a series of ing in Liberia, Guinea Conakry, Guinea Bissau, Si-
face-to-face meetings, phone conversations, and erra Leone, and Nigeria. KAMARA, JALLOH, and
telephone calls with the cooperating Liberian SESAY exchanged a series of emails and telephone
114 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ International Cooperation
Manhattan U.S. Attorney-Republic of Liberia Historic Joint Undercover Operation
calls and held numerous meetings with the CS, On May 29, 2010, ACEVEDO SARMIENTO indi-
the cooperating Liberian officials, and a third Li- cated that Venezuelan authorities had seized his
berian government official who was also working plane, which he claimed was worth $35 million, as
jointly with the DEA in an undercover capacity well as the cocaine that it contained, and had di-
("UC-3"), in order to negotiate prices and make rected him to leave the country. After apprising
specific arrangements for the secure transporta- the CS of the seizure, ACEVEDO SARMIENTO in-
tion of cocaine from South America through Libe- vited the CS to invest 500 kilograms in a new ship-
ria, including, but not limited to, a 4,000 kilogram ment out of Bolivia, which ACEVEDO SARMIENTO
shipment of cocaine from Colombia. The CS, who understood the CS intended to import into New
was introduced as UC-1's "partner" and confi- York. ACEVEDO SARMIENTO instructed the CS to
dante, was present for many of these meetings. wire transfer a $100,000 payment to him, and pro-
In the course of these meetings, the defendants vided the CS with the relevant bank account infor-
understood that the CS, who was to be paid by mation for the transfer.
the defendants in the form of cocaine, was going The United States is coordinating with Co-
to senda portion of his share of the cocaine to lombian authorities to locate and apprehend
Ghana, from where it would be imported into ACEVEDO SARMIENTO.
New York aboard commercial flights. ***
In coordination with Liberian authorities, All of the defendants are charged with one
KAMARA, JALLOH, and SESAY were arrested on count of conspiracy to distribute and possess
May 28, 2010. On May 30,2010, they were trans- with intent to distribute cocaine, knowing or in-
ferred to United States custody and brought to tending that the cocaine would be imported into
the Southern District of New York, where they the United States. This offense carries a mini-
will make their first court appearance later today. mum sentence of ten years in prison and a maxi-
The 10 Cr. 457 Indictment has been assigned to mum term of life imprisonment.
United States District Judge WILLIAM H. PAULEY The arrests and transfers of the defendants
for the Southern District of New York. were the result of the close cooperative efforts of
the United States Attorney's Office for the South-
The 10 Mag. 1166 Complaint ern District of New York, the Special Operations
Division of the DEA, the DEA Lagos Country Office,
As set forth in Complaint 10 Mag. 1166, ACEVEDO the DEA Warsaw Country Office, the DEA Bogota
SARMIENTO is a cocaine supplier based in Colom- Country Office, the DEA Rome Country Office, the
bia and Venezuela, capable of transporting thou- U.S. Department of Justice Office of International
sand-kilogram quantities of cocaine from South Affairs, the U.S. State Department, the U.S. Em-
America to various locations in West Africa, for bassy in Liberia, the Republic of Liberia and its Na-
distribution within Africa and for further distribu- tional Security Agency, and the Security Services of
tion to Europe and other markets. ACEVEDO SAR- Ukraine.
MIENTO worked in the international drug business United States Attorney PREET BHARARA
with members of the conspiracy charged in the S8 stated: "During the last decade, South American
09Cr. 524 Indictment, including in connection with narcotics traffickers have burrowed a growing
the 4,000 kilogram shipment of cocaine refer- foothold in West Africa, sending hundreds of tons
enced therein. of cocaine worth billions of dollars into the region.
In a series of recorded telephone conversa- They have done so by seeking to influence and
tions with the CS, ACEVEDO SARMIENTO, who corrupt public officials with lucrative promises of
claimed to have been involved in the cocaine payoffs. As today's charges vividly show, the Gov-
trafficking business for over 20 years, coordi- ernment of Liberia has taken an aggressive and
nated efforts to arrange what was ultimately emphatic stand in shutting its doors to drug traf-
supposed to be a shipment of between 2,000 and fickers. Liberia's commitment to the rule of the
2,500 kilograms of cocaine on a plane from Vene- law and the international fight against the drug
zuela to Liberia. ACEVEDO SARMIENTO con- trade merits strong commendation. For the Presi-
firmed to the CS that the cocaine shipment had dent of Liberia, this effort has been a personal
been protected by the FARC. one. Her own son, the Director of Liberia's Na-
115 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ International Cooperation
Manhattan U.S. Attorney-Republic of Liberia United States Millennium Challenge Corporation
Historic Joint Undercover Operation (Washington, DC)

tional Security Agency, courageously served as an

MCC Approves $15m Grant for Liberia
undercover to make this investigation and prose-
cution possible. The transfer of these defendants
to American custody reflects the strong partner- PRESS RELEASE, MAY 27, 2010
ship between the United States and Liberia in The Millennium Challenge Corporation (MCC)
combating the international drug trade, which Board of Directors, chaired by U.S. Secretary of
poses a serious threat to both countries." State Hillary Rodham Clinton, today approved an
DEA Acting Administrator MICHELE M. LEON- approximately $15 million threshold program
HART stated:"Unprecedented cooperation from grant for Liberia to support the country’s ongoing
the highest levels of government n Liberia helped efforts at reform.
expose drug smuggling and corruption that led to The grant, which is subject to a 15-day con-
indictments of African, Colombian, and Russian gressional notification period, will focus on land
traffickers. Operation Relentless successfully bat- rights, girls’ education and trade policy. During
tered the pipeline of cocaine flowing from South Liberian President Ellen Johnson Sirleaf’s visit to
America, through Africa, and into Europe. In this Washington, D.C., MCC CEO Daniel Yohannes
case, ton quantities of FARC cocaine were seized joined Senator Jack Reed, Representative Jesse
and the operations of several major traffickers Jackson Jr., and additional Members of Congress
were disrupted." at a reception on Capitol Hill honoring President
The Honorable ELLEN JOHNSON SIRLEAF, Johnson Sirleaf for her efforts to set a high stan-
President of the Republic of Liberia, stated: "As dard for good governance, accountability, and sus-
today's charges show, the Republic of Liberia is tainable development.
officially closed for business to the narcotics “When President Johnson Sirleaf visited the
trade. We are strongly committed to combating United States in 2008, she said Liberia was striving
international drug organizations that seek to ex- to meet MCC benchmarks in hopes of joining the
ploit our country for their own profit. We are MCC family. I am pleased to announce that MCC
proud of our strong partnership with the United plans to partner with Liberia to help deliver stabil-
States Drug Enforcement Administration and the ity and create the conditions for long-term eco-
United States Department of Justice, and we look nomic growth,” said Mr. Yohannes. “We are look-
forward to strengthening and deepening this re- ing forward to working with our colleagues in Con-
lationship in the years to come." gress and moving toward an official ceremony to
This prosecution is being handled by the Of- sign the grant.”
fice's Terrorism and International Narcotics Unit. Subject to congressional notification and con-
Assistant United States Attorneys JENNA M. sultation, the United States Agency for Interna-
DABBS, CHRISTOPHER LAVIGNE, and MICHAEL M. tional Development, the U.S. government agency
ROSENSAFT are in charge of the prosecution. administering the program will sign an approxi-
The charges contained in the Indictments and mately $15 million, three-year MCC threshold pro-
Complaint are merely accusations and the defen- gram agreement with the Government of Liberia,
dants are presumed innocent unless and until investing in three areas: land rights and access,
proven guilty. girls’ education, and trade policy. These areas
were identified by Liberians themselves as part of
their national development strategy. The program
•Help promote equitable access to land and in-
creased land security through increased under-
standing of property rights issues and improved
land administration and land registration capacity;
• Improve girls’ primary education enrollment and
retention through a scholarship program for girls,
grants to communities to improve the school
116 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ International Cooperation

Infrastructure Liberia’s Priority

Millennium Challenge Corporation
Adaptation of D. Kaihenneh Sengbeh’s June 1,
Approves $15m Grant for Liberia 2010 article in the Informer (Monrovia)

environment, and grants supporting mentoring In the wake of a $4.9 billion debt relief granted
programs and awareness campaigns; and; Liberia by the World Bank and International
• Support efforts to improve trade policy and prac- Monetary Fund (IMF) while she was Washington
tices, specifically in harmonizing tariffs, engaging during the last part of May and the beginning of
regional and global bodies, and strengthening the June, President Ellen Johnson-Sirleaf sees greater
regulatory environment. prospect for her ongoing priority, infrastructure.
“With vital support from Congress for MCC’s "Right now we are very concerned about our
budget and critical legislative fixes, we will con- primary roads...We have to try to pave
tinue to have the ability to partner with reform- them...that's our major challenge now as a gov-
minded countries committed to wisely investing ernment," President Sirleaf declared yesterday
American taxpayer resources in sustainable devel- during a live phone-in talk show broadcast on
opment that benefits us all in our interconnected major radio stations in Monrovia, including the
global marketplace,” said Mr. Yohannes. UN radio which covers the country.
MCC’s threshold program is designed to as- On the question of future loans Madam
sist countries that are on the “threshold” of eligi- President said that any new indebtedness would
bility for MCC compact assistance. Threshold be for infrastructure development, particularly
program assistance is used to help countries ad- roads. Specifically, she identified major feeder
dress the specific policy areas for improvement roads including the Gbarnga (Bong County)-
indicated by their scores on 17 policy indicators Voinjama (Lofa County) and the Fish Town (River
in three categories —Ruling Justly, Investing in Gee)-Harper (Maryland County) routes. These are
People, and Encouraging Economic Free- all important rural commerce roads that during
dom. These policy indicators are central to the the rainy season become virtually impassable.
criteria and methodology for determining com- Also, debt relief has offered a new window
pact eligibility and are products of respected in- of opportunity for building schools and health
ternational institutions and national data. Each facilities across the country.
indicator is selected based on its utility in remov- Explaining the implications of the $4.9 billion
ing impediments to growth and poverty reduc- debt burden that had just been lifted off Liberia,
tion, the number of countries it covers, its trans- President Sirleaf pointed out, “Our budget for
parency and availability, and its analytical rigor. 2009-2010 is US$350 million. To settle that
The United States Agency for International US$4.9 billion debt, we would have had to pay
Development will administer the Liberia threshold our creditors our entire budget for 28 years!"
program and will be responsible for coordination, Previous Liberian governments had bor-
contracting, and financial management. MCC will rowed from the World Bank, the International
maintain oversight of Liberia’s threshold program. Monetary Fund (IMF), other countries, and com-
panies, and had not paid back any of the loans.
"Since the 1980 coup d'état, followed by our
14-year civil war, none of our loans were ser-
viced, and so the interest and the penalties grew
and grew," the President noted.
She attributed the award of debt relief to
"the way we tightened our belts and conducted
ourselves, by not borrowing from anybody and
spending only the revenues we collected, includ-
ing your taxes….

117 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/ International Cooperation
May 28,2010 New Democrat (Monrovia) May 18, 2010
Liberia joins UN campaign to eradicate Liberia Wins U.S$ 40 Million
polio in West Africa
Education Grant
Liberia has been named beneficiary of a new
grant from the Education for All Fast Track
The initiative is a global partnership be-
tween low-income countries and donors to
ensure that children in developing countries
receive basic quality education.
As part of the initiative, Liberia will receive
a grant of forty million US dollars.
A World Bank release says the money
will be used to finance the construction of
four hundred fifty three new classrooms at
UN Polio eradication team in Ghana the primary school level.
Health workers fanned out across Liberia to- It will also provide one hundred thou-
sand text books to students and twenty one
day to vaccinate children against polio as the
thousand, five hundred sets of teachers'
third round of a synchronized regional immu-
nization campaign aimed at eradication the
paralyzing disease in West Africa began, the A school health component will finance
United Nations Children's Fund (UNICEF) re- the development of learning materials, train-
ported. ing of teachers and de-worming of primary
Vaccinators are aiming to reach 53 million school students.
children across West Africa during the five-day The grant is part of a total of three hun-
campaign. dred three million US dollars received from
In Liberia, the exercise is jointly supported nineteen donors including the World Bank,
UNICEF and UNESCO. Ethiopia, Malawi, Togo
by the health ministry, UNICEF, the UN World
and Lao PDR are among beneficiaries.
Health Organization (WHO) and the UN Mis-
sion in Liberia (UNMIL), as well as more than
700 social mobilizers.
UNMIL Radio and other community radio
stations are broadcasting jingles and polio-
related messages regularly, with UNICEF pro-
viding technical and financial support for com-
munications, and a supply of more than
900,000 doses of polio vaccine. WHO is provid-
ing technical support as well as funds for logis-
tics, monitoring, transportation and allow-
ances for vaccination teams.
"I would like to call on parents all across
the country to take their children for the polio
vaccine - not only for its importance but be-
cause it is their right," said Ibrahim Sesay, a UNI-
CEF child protection specialist in Liberia. "We
Liberian primary 1 school children
call on vaccinators and health workers in the
field to do their outmost in ensuring that every
child under five is reached and immunized
against this deadly disease," he added.
118 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Political Economy
New Democrat (Monrovia)

Heavy $4.9 Billion Burden Removed - Pres. Sirleaf

The country's success in reaching the HIPC com-
pletion has been declared as cause for celebration,
with President Ellen Johnson Sirleaf further declar-
ing that a heavy burden has been removed along
the path of development with the withering of
US$4.9 billion debt that would have taken 28 years
to repay if, she added, the country's entire fiscal
budget of US$350 went towards debt payment.
"Most of our debt is gone, erased; a huge
burden has been lifted. And you, the Liberian
people, had a hand in this success, and we say
thank you", the president said in a speech with
all the signs of optimism exuberance.
"Like someone who has toted a heavy load President Sirleaf at Monrovia’s Vai Town Bridge
for many miles, we can now cast it off, straighten
our backs and lift our eyes to the horizon where a over just yet. Next month, we have to go before
better day is breaking - a day when we will stand another institution, the Paris Club, to ask them to
on our own, unsupported, and proud. For I firmly cancel the rest of our debt, she said."
believe that in 10 years, if we stay on the path of But she offered some backgrounds of the
reform, and follow the roadmap of our national debts, blaming "previous governments" that
agenda, our country should no longer depend on "borrowed from the World Bank, the International
foreign assistance. We should be able to self- Monetary Fund (IMF), other countries, and com-
finance our own development," she assured, add- panies, and had not paid back any of the loans.
ing: Since the 1980 coup d'état, followed by our 14-
"The big debt is off our head! For that, we year civil war, none of our loans were serviced,
give thanks to God. May God bless Liberia and its and so the interest and the penalties grew and
resilient and remarkable people for a job well grew.
done!" My Administration inherited this huge debt,
Acknowledging the harsh economic condi- which has been hanging heavily around the
tions prevailing because leading financial institu- country's neck. From the day I came into office, I
tions and creditors have shunned Liberia since, promised to do everything in my power to put
she clarified, the 1980 coup, she said hope is in our economic and financial house in order, and
sight while warning against expectations of im- to get this unbearable burden, which was hold-
mediate results. ing back our recovery and development, off our
In a prepared statement, she described the backs."
World Bank's debt waiver as "a great day for Li- But she added that for today's conditions,
beria!" "our Government was forced to carry out diffi-
She further underlined the prevailing eco- cult reforms. The two largest international insti-
nomic difficulties in which many find themselves: tutions we owed money to - the World Bank and
"Because of the way we tightened our belts the IMF - prescribed tough medicine which we
and conducted ourselves, by not borrowing from had to swallow, but which enabled us to better
anybody and spending only the revenues we col- manage our economy and our finances.
lected, including your taxes, the World Bank and "As we look forward to marking our country's
the IMF have just announced that we don't have 163rd year of independence in July, we also
to pay them back. proudly celebrate a new dawn of freedom and
"As of today, we are well on our way to independence - freedom and independence from
shedding the massive debt we owed. But it's not a crushing debt burden."
119 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/Presidential Diplomacy
Monrovia, April 13, 2010

Liberia, Brazil Sign Joint Communiqué

President Lula Da Silva and President Sirleaf in handshake after signing the agreements
Photo by: Sando Moore

L iberia and Brazil have taken major steps to

jumpstart longstanding relations between the
two countries. Following bilateral discussions
tioned that under the Memoranda of Under-
standing, both countries would establish a Liberia
-Brazil Joint Commission that will coordinate and
Wednesday in Brasilia, President Ellen Johnson monitor the execution of agreements reached
Sirleaf and the President of Brazil, Luis Lula da between the two countries.
Silva, the two countries agreed to promote coop- President Sirleaf commended the leadership
eration in the areas of energy and mining as well role of Brazil on behalf of the Group of 77 and
as education. developing nations in trade negotiations and fi-
According to an Executive Mansion dispatch, nancial issues in international forums.
the agreement calls for the training of teachers On Africa-Brazil relations, Madam Sirleaf
and academicians in graduate and undergraduate paid tribute to Mr. Luiz Inácio Lula da Silva for his
programs in Brazil and an alignment of teaching policy of forging strategic partnership between
programs between higher institutions of learning Brazil and Africa and for expanding and deepen-
in Liberia and Brazil. Both countries also agreed to ing relations with African countries. The Liberian
recognize the credentials issued by their respec- leader noted that the Brazilian leader's policies
tive institutions of higher learning. had helped to create a deeper and more pro-
An agreement on the 'Performance of Remu- found awareness and greater appreciation of the
nerated Activities by Dependants of Diplomatic, close cultural and historical links between Brazil
Consular, Military, Administrative and Technical and Africa and Afro-Brazilian culture.
Staff' was also signed, thus relaxing restrictions on Regarding Liberia-Brazil bilateral relations,
employment for foreign embassy staff in Liberia the two leaders noted the historic nature of the
and Brazil. summit visit which is the first official visit by a
The Executive Mansion dispatch also men- Liberian Head of State since Brazil and Liberia
120 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/Presidential Diplomacy Liberia, Brazil Sign Joint Communiqué

signed a Treaty of Friendship and Commerce 158 E. Memorandum of Understanding on Coopera-

years ago. tion in Sports
President Ellen Johnson Sirleaf briefed Presi-
dent Luiz Inácio Lula da Silva about Liberia's post- F. Memorandum of Understanding on Coopera-
conflict reconstruction program based on its Pov- tion in Energy and Mining
erty Reduction Strategy entitled Lift Liberia. Foreign Minister Olubanke King-Akerele
She indicated that two decades of conflict signed on behalf of the Government of Liberia
has left the country devastated with a near col- while the Minister of External Relations of Brazil,
lapsed economy, crumbling infrastructure and Celso Amorim, signed for his Government.
weak institutions. With limited financial resources At a luncheon tendered in honor of the Libe-
the success of the reconstruction program so far rian President and delegation, President Ellen
has had to depend largely on the support of the Johnson Sirleaf lauded the progress Brazil has
international community and friends like Brazil. made over the years. The Liberian leader ob-
President Luiz Inácio Lula da Silva thanked served that Brazil, as an emergent global eco-
President Sirleaf for her relentless efforts to con- nomic power, now serves as an engine of growth
solidate peace and stability and promote national and expansion for the world economy.
reconstruction and development in Liberia. He The President praised Brazil's agenda for
noted the progress and strides Liberia has made social inclusion and poverty reduction, and the
under her leadership and for the prudent and dis- country's 'Zero Hunger Initiative', describing it as
ciplined manner in which she has proceeded to phenomenal.
pull the country out of conflict and put her onto Presidential Press Secretary Cyrus W. Badio
the path to sustained development. is quoted as saying that President Johnson Sirleaf
“Many challenges remain and the Liberian has extended an invitation to the Brazilian Presi-
leader deserves every support to finish the task dent to visit Liberia during the commemoration
she has embarked upon,” the Brazilian President of Liberia's 163rd Independence Anniversary or
noted. at President Lula da Silva's convenience.
He pledged Brazil's commitment to provide The Liberian leader, Wednesday last week,
within its best capacity, assistance that would paid courtesy calls on the leaders of the Brazilian
support Liberia's reconstruction. Senate, the House of Representatives and the
The two Presidents agreed to increase Chief Justice of Brazil. The President said Liberia
friendly exchanges at various levels, expand prac- is prepared to draw from the success of Brazil to
tical cooperation to further develop and acceler- improve the wellbeing of the country and its peo-
ate Liberia-Brazil relations and cooperation. ple.
At the end of the visit, Agreements and President Johnson Sirleaf and delegation
Memorandums of Understanding were signed arrived in Brazil Wednesday, April 7, at the start
between the two governments as follows: of a four-day state visit.

A. Agreement on Cooperation in the Field of Edu- *Copyright Liberian Observer - All Rights Re-
cation served. This article cannot be re-published with-
out the expressed, written consent of the Liberian
B. Agreement on the Performance of Remuner- Observer. Please contact us for more information
ated Activities by Dependants of Diplomatic, Con- or to request publishing permission.
sular, Military, Administrative, and Technical Staff

C. Memorandum of Understanding on the Estab-

lishment of a Liberia-Brazil Joint Commission
D. Memorandum of Understanding on the Estab-
lishment of a Mechanism for Political Consulta-

121 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/Presidential Diplomacy

Washington Gracious to Ellen


Liberian President Ellen Johnson-Sirleaf (center) addressing the press before her meetings
with U.S. House of Representatives Speaker Nancy Pelosi (right) and House Sub-Committee
on State & Foreign Operations Chair Nita Lowey (left)

U nited States President Barack Obama gra-

ciously welcomed his Liberian counterpart
Ellen Johnson-Sirleaf to the White House on May
tion, especially the restoration of security and
The Liberian president met with President
28th, describing her efforts to reconstruct her civil Obama, with whom she shares Harvard Univer-
strife devastated country as heroic. President sity as alma-mater, in the White House’s famed
Johnson-Sirleaf also met with U.S. House of Rep- Oval Office. The U.S.’ first African American presi-
resentatives Speaker Nancy Pelosi who likewise dent and Africa’s first democratically elected
spoke laudably of her, saying the Liberian presi- women president both acknowledged the chal-
dent is “an inspiration to women everywhere, lenges facing Liberia in its reconstruction quest.
men too.” Speaker Pelosi has praised President Obama, like Pelosi, said he had been an admirer
Ellen Johnson-Sirleaf’s 2006 speech before a Joint of Madam Johnson-Sirleaf for many years, not-
Session of the U.S. Congress as one of the best ing, as did Speaker Pelosi, the longstanding ties
ever heard by the august body. In 2007 Madam between Liberia and the United States.
Johnson-Sirleaf received America’s highest civilian "I have been an extraordinary admirer of her
honor, the United States Presidential Medal of work for many years now.... The United States
Freedom from President George W. Bush. and Liberia are close friends, longstanding part-
Speaker Pelosi, noting that she has been fol- ners, and Liberia is now emerging from a very
lowing Ellen Johnson-Sirelaf’s career and admiring difficult period," the US President remarked.
her for many years, while she was at the World The American president attributed the rapid
Bank, Citicorp and UNDP, spoke about the reconstruction strides Liberia has made under
achievements of the Johnson-Sirleaf administra- Madam Johnson-Sirleaf to her commitment to
122 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/Presidential Diplomacy Washington Gracious to Ellen

Presidents Ellen Johnson-Sirleaf and Barack Obama discuss in the White House Oval Office

improving the lives of her people and good govern- Madam President told her American counter-
ance, commending her efforts to reform the judici- part she looks forward to the continuing support
ary and uphold the rule of law."In all these endeav- of the US, acknowledging that there are still many
ors I want to make sure the people of Liberia un- challenges facing her country. She particularly
derstand... that the United States is a constant pointed out that she wants to count on the sup-
friend and partner," President Obama said. port of the US and other allies at the June 26
On behalf of the Liberian people President meeting of the IMF and World Bank when the is-
Johnson-Sirleaf welcomed Mr. Obama’s commen- sue of the debt relief for Liberia comes up.
dation, noting that what he has observed about In discussing with the Liberian leader, Presi-
Liberia would not have been possible without the dent Obama assured her of the US’ commitment
cooperation and assistance of the United States. to work with Liberia on food security, especially
Madam Sirleaf said she was proud to have met through the Liberian Ministry of Agriculture’s Feed
President Obama and exchanged ideas with him on the Future program.
the progress made in Liberia as well as discuss bilat- In closing the meeting, President Obama ob-
eral relations between the two countries. served that President Sirleaf has a very good sense
She thanked the US government and people of where Liberia is headed.
for continuing to accommodate some 14,000 Liberi- Earlier Secretary of State Hillary Clinton met
ans currently living in the US on Temporary Protec- Madam Sirleaf. They discussed elections next year
tive Status (TPS) and the Obama administration for and various other issues. According to Mrs. Clin-
the extension of the TPS that has delayed enforced ton, “…we discussed Liberia's preparations for na-
departure for another year. The U.S. offered TPS to tional elections in 2011, progress on judicial and
Liberians during the civil war of the 1990s. police reforms, and efforts to fight against official
She also thanked America for the work the corruption."
U.S. African Command (AFRICOM) was doing in Li- The U.S. chief diplomat affirmed after their
beria, noting that since UNMIL was withdrawing its talks that Washington is a partner with Monrovia
activities it is important that the country’s police "in the promotion of democracy, the establish-
attain full capacity. ment of good governance, and development of a
In addition to highlighting efforts her admini- responsible security sector in Liberia." Mrs. Clinton
stration was making to strengthen the Liberian judi- said she sought to assure Madam Sirleaf "of our
ciary, which she identified as one of her major continued support and engagement as Liberia pro-
goals, President Sirleaf briefed Mr. Obama on the gresses towards full economic and political recov-
work she and other African leaders are currently ery" after successive civil wars.
doing to ensure that the continent’s democratic
process development stays on course.
123 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Presidency

The Role of Agriculture in Post-Conflict

Recovery - The Case of Liberia
By Ellen Johnson-Sirleaf
May 20, 2010
Statement by
Her Excellency Ellen Johnson Sirleaf
President of the Republic of Liberia

"The Role of Agriculture in Post-Conflict

Recovery: The Case of Liberia"
Symposium on Global Agriculture and Food Secu-
rity; Global Agricultural Development Initiative
Mayflower Renaissance Hotel, Washington D.C.

Moderator (Dan Glickman, former Secretary of

Honorable Thomas Vilsack (Secretary of Agricul-
Dr. Rajiv Shah (USAID Administrator);
Mr. Marshall Bouton (President Chicago Council
on Global Affairs)
Ms. Catherine Bertini (Symposium Co-Chair)
Members of Congress Present;
Development Partners;
Distinguished Guests; President Ellen Johnson addressing the World Health Organi-
Ladies and Gentlemen; zation (WHO) confab, May 18, 2010 in Geneva, Switzerland

Friends: peace and national security, reactivating our min-

I thank you, Mr. Mouton and Mr. Glickman and ing, agriculture and forestry sectors, promoted the
the Chicago Council on Global Affairs, for the kind institutions of good governance and the rule of
invitation, and the opportunity to join so many of law and rehabilitating infrastructure to extend ba-
you in this room and the several other key person- sic services to our 3.5 million population.
alities to speak at this important Symposium on Yet the challenges remain awesome and our
the role of agriculture in the post-conflict recovery nation fragile in the face of raised expectations
of my country, Liberia. You will note that I am and the several stumbling blocks, including the
wearing green symbolizing the agriculture poten- 2008/2009 global financial crisis, that have
tial of my country. slowed the pace of recovery and reform.
In 2006, Liberia started the long road back Poverty continues to be the most significant
from a civil conflict that decimated the country’s determinant of food access in many parts of Libe-
infrastructure and institutions, a situation com- ria although 70 percent of the population de-
pounded by a population that fled to the urban pends on agriculture. Recognizing that agricul-
areas leaving the land unproductive. tural growth is more effective in reducing pov-
In the past four years, under the four pillars erty than any effort in any other sector, our Gov-
of our Poverty Reduction or ‘Lift Liberia’ Strategy, ernment is placing emphasis on this strategic sec-
we have restored growth to an average annual 7 tor both in terms of exports and food security at
percent, tackled a $4.9 billion external debt over- home.
hang, made strong progress on consolidating Our policy goal in the sector is to revitalize

124 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/ Presidency Role of Agriculture in Post-Conflict Liberia’s Recovery
operations and activities ment, most especially for the thousands of our
that contribute to sustain- citizens, especially women and youth who, as
able economic growth and casualties of the war, lack essential skills, but
development; to provide who can learn to farm the land. Our objective is
food security and nutrition; and to increase farm- to consolidate them into a productive and dy-
ers’ employment and income – all aimed at meas- namic entity for national development. Jobs in
urably reducing poverty. the farming sector is one of the means of accom-
While our commitment to agriculture is un- plishing that aim.
equivocal, I must acknowledge that public financ- If Liberia can grow its own food and be self-
ing of the sector is still woefully inadequate. The sufficient, and we have the potential to do so
share of our national budget allocated to agricul- due to the large territorial farmable soils, the
tural institutions and activities rose from US$3 tropical climate and abundant water resources,
million in 2006 to US$7 million in 2009 but this the country would then be insulated from the
still represents a mere 2 percent of our budget. effects of the soaring global food prices, which
Moreover, I can say, quite candidly, that de- we experienced in 2008.
spite the policies and strategies, our population is This is why in 2009, we developed and vali-
still highly vulnerable to chronic food insecurity, dated the Liberia Agriculture Sector Investment
stemming from physical and human capital con- Program (LASIP), which is guiding our Ministry of
straints, poor natural resource and farm manage- Agriculture and our development partners in bet-
ment practices, and poor health and nutrition ter coordinating activities aimed at Liberia’s agri-
practices. cultural development.
We are, nevertheless, intensifying our ef- This Program is in line with our development
forts to achieve the desired results. To grow the agenda as well as the framework of the Compre-
economy, we embarked upon a “Back to the Soil” hensive Africa Agriculture Development Program
Campaign that resulted in significant increase in (CAADP). It is encouraging that the major donor
food production, particularly of our staples as agencies have committed their institutions to us-
rice and cassava. Rice production, for example, ing this framework as a viable vehicle to provide
increased from 85,000 metric tons in 2006 to assistance to African countries in the development
about 200,000 metric tons in 2009 - a 135 per- of their agricultural sectors and to ensure food
cent increase. The increase in food production security.
has led the World Food Program (WFP), for the We believe that with consistency in efforts
first time, to purchase locally produced rice for and resources, our agriculture sector is transi-
use in its school-feeding program. tioning from “emergency” to “development”,
The programs that supported the results which includes sustainability and improved liveli-
have also trained 30,397 farmers, providing them hood. At the core of this transition is the trans-
with new farming methods, and provided 15,000 formation of smallholder agriculture into a sus-
vulnerable farmers and 169 farmer groups with tainable diversified, income-generating sector
seed rice. Our success would have been even that is well integrated into markets – one in
greater if more farmers had been able to use which commercial agriculture provides support
lowland areas where yields in rice production is and incentives to small farmers.
highest compared to other ecologies, and where To achieve this objective, our public sector
rice could be cultivated two or three times per agriculture investment priorities between 2010
year. and 2013 include food and nutrition security;
The reluctance of farmers to use fertile low- competitive value chains and market linkages;
lands is due to the health consequences resulting institutional development; and land and water
from the prevalence of schistosomiasis and other development.
water-borne diseases which multiplied during the In an emerging market-driven economy like
long period of our civil unrest. We continue to Liberia’s, a large share of the actual development
mobilize support from our partners to help clean of agriculture is carried out by the private sector
up these fertile lowlands for cultivation of rice to through their involvement in different facets of
ensure self-sufficiency. production, processing, servicing and trade. Gov-
It is very clear to us that agriculture has the ernment’s role in this regard is to provide the ena-
potential to become a major source of employ-
125 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Presidency Role of Agriculture in Post-Conflict Liberia’s Recovery
bling environment for the
private sector to thrive.
My Government recognizes
the importance of private sec-
tor-led growth in the productive sectors, and has
therefore entered into concession agreements
with investors for development of the agriculture
sector. These agreements give agriculture inves-
tors the right to undertake productive activities in
areas of their choice, and to work with small-
holders through out-grower arrangements sup-
ported by the public sector.
Private-sector investment is picking up in
our country and various projects will produce a
stream of income for Liberia in the years to Washington D.C. Mayflower Renaissance Hotel
come. We are pleased to note that as of March
right time for Liberia.
2010, committed private sector investment in
Moreover, we applaud the initiatives of the
agriculture in Liberia totaled US$1.1 billion. This
Obama Administration presented here today by
includes US$847 million investment for the culti-
Dr. Rajiv Shah, the "Global Hunger and Food Se-
vation of rubber and oil palm by the Malaysian
curity Initiative" and the "Feed the Future Initia-
firm Sime Darby Borland. Investments from the
tive." What is most appealing from the Liberian
large plantation sector, which include out-grower
perspective about these U.S. initiatives is that
schemes will result in thousands of jobs and ex-
they encourage the participation of key groups,
ports, but it will take time to show results.
including farmers, civil society organizations, es-
We believe that once the private sector in-
pecially women, and they also promote strong
vestments in palm oil, rubber, rice and logging
regulatory policies, governance and accountabil-
come fully “on line,” our Government will be able
to receive more resources from the exportation of
We see this new initiative as a compliment to
products from these investments. This will enable
the Millennium Challenge Corporation, which re-
the Government to invest more in agriculture, al-
cently qualified Liberia as a threshold nation in
lowing us to move toward the Maputo Declaration
that it supports home-grown strategies and re-
promise of a minimum of 10 percent budget allo-
wards governments that invest in their own peo-
cation to the sector.
ple and govern responsibly.
We recognize that increased budgetary sup-
Liberia is pleased to have been selected as
port alone will not be sufficient to achieve and
one of 20 target countries and hope and will
sustain the required transformation of Liberia's
strive to achieve status as an investment plan
agriculture sector. Therefore, we continue to
work with partners especially the United States
In closing, permit me to commend the excel-
to help Liberia to "kick start" the process of stabi-
lent work of your in-county representatives – the
lizing the country and the agriculture sector
U.S. Embassy and USAID – who support our goals
through the "Food for the Future" program,
in the development of Liberia's agriculture and
launched recently by USAID.
rural sector in promoting sustainable peace.
Of critical importance is investment in infra-
We strongly believe that with our commit-
structure, most critical, farm to market roads, in-
ment and hard work, together with your continu-
vestments in transportation, particularly the port.
ous support, we can indeed bring stability and
USAID/Liberia's Food and Enterprise Develop-
we can bring prosperity to the Liberian people, to
ment Project (FED) is a vehicle to support Libe-
a nation once characterized as a failed state. We
ria's agriculture development agenda focusing on
can become a post conflict success story building
improving rural infrastructure, primarily rural
upon our agriculture activities.
farm to market roads, and the MOA's capacity to
promote the dissemination and adoption of im-
I thank you.
proved agricultural technologies and prac-
tices. This is exactly the right program and the
126 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Presidency

President Sirleaf Says Liberia Can Achieve

Self-Sufficiency in 10 Years


President Ellen Johnson Sirleaf is visiting

Washington this week for talks with Con-
gressional leaders and a White House meet-
ing on Thursday with President Barack
Obama and Secretary of State Hillary Clin-
ton. In an interview with All-Africa, she dis-
cussed her record and her priorities. Ex-

Development and poverty alleviation

have been the centerpiece of your
agenda - and the topic on ongoing inter-
national debate. The United Nations is
holding a summit on the Millennium De-
Liberia’s President Ellen Johnson-Sirleaf at Washington
velopment Goals in September. A leaked U.S.
D.C.’s Georgetown University, on May 22nd, where she was
government study says developing countries the keynote speaker at the commencement exercises of the
must have more ownership of development aid. Edmund A. Walsh College of Foreign Service
How do you think development can best be
achieved? debt overhang. We're coming to closure on that
in June.
The best way to make development work is to
ensure that the priorities are established by the Lots of roads, water and lights have been re-
people themselves. This is why our poverty re- stored in the capital city.
duction strategy came out of a rigorous process
of consultation and participation by people Schools, hospitals and clinics have been built all
across the country. They identified what became over the country. We have a free society - some-
our priority goals, and we've been moving in that times we think too free! The media, free speech,
direction. free association, freedom of religion - those are
all prospering.
We've gone a long way in achieving the goals
established under four pillars - peace and secu- Yet, no matter what we have accomplished, we
rity, economic revitalization, governance and the still have a long way to go. Two basic challenges
rule of law, infrastructure and basic services. Ba- remain. One is employment for the thousands
sically, the country is at peace, although it re- and thousands of young people who don't have
mains fragile because we still haven't met all the skills and don't have the means whereby they
challenges. can become productive.

We are beginning to see our economy grow In the governance area, we continue to fight the
again. We have had an average annual seven per- systemic corruption that's been part of the value
cent growth rate over the last four years, despite system over two-three decades. We're trying to
the global economic crisis in 2009. We've virtu- strengthen the pillars of integrity. We're exposing
ally done away with our U.S.$4.9 billion external corruption, and we're taking action against it.

127 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/ Presidency Liberia Can Achieve Self-Sufficiency in 10 Years

Did your efforts to involve people

across the country in the poverty
reduction strategy result in a buy-in
from the Liberian people?

A definite buy-in. For the first time,

people from the villages could say
they sat in meetings and were asked
"what do you think you want your
government to do?" Three priorities
came out quite clearly - roads, educa-
tion and health.
Friends of Liberia Portland Fundraiser
And that influenced your strategy?
In education, one of your priorities has been
Absolutely. We were thinking education would be opening opportunities for girls. What have you
number one. But they convinced us that roads was been able to accomplish in this area?
number one because, as they said, they couldn't
take their produce to market, they couldn't take What we did was to enforce compulsory pri-
their children to schools or the health centers if mary education and made the schools free. As a
there was no mobility, if there was no way to get result, we've had 40 percent increase enroll-
there. So our strategy has been to respond to ment in all the public schools, and most of them
what we know the people want. have been girls. The girls were not going to
school. They were in the market and on the
So what have you been able to do about roads? farms. Our biggest problem as pertains to girls is
retention - keeping them in schools beyond pri-
Liberia has heavy rains for a good part of six mary level. We have a program to provide schol-
months every year, so the capital cost of building arships for young girls, and this has been helpful
roads is very high. And you can only work during as we work on this problem.
the dry season, so that makes it even higher. But
the three primary roads that lead into the rural How can you create the jobs that are needed to
areas are now being made all-weather roads, and employ the youth?
we have plans to have them paved.
The private sector is the key to the creation of
In the capital city, the main arteries are being jobs, the ones that will absorb the young popula-
repaved right now. tion. As we open up the economy, we expect job
opportunities will open. In the meanwhile, we are
Neighborhood roads are being constructed to trying to give them a skill through vocational
open new roads for vehicular traffic. Farm-to- training. We are introducing literacy programs,
market roads are being built. It has taken a while sometimes in the marketplace, so that the
to mobilize the resources to do this, but finally women are able to move up to higher levels. It is
we're there. I am very pleased about our road de- still a big challenge, because investment in the
velopment. private sector - though it is taking place - takes
some time.

128 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/ Presidency Liberia Can Achieve Self-Sufficiency in 10 Years

To what do you attribute the success you

have had attracting investment, despite the
country's infrastructural insufficiencies and
the global recession?

My own experience, having worked in the pri-

vate sector for years, and also the public sector
in Liberia and the international system, has en-
abled me to talk with investors. I think they
have confidence in my integrity, my ability, my
Children at Liberia’s Johnny Ford Orphanage
commitment to do this. We have a very sound
development agenda. We've been able to mobi- Foreign assistance has played a very major role
lize quite a few talented and committed people in these early years, and our partners have
who have been put in charge of this. We're very made tremendous contributions to the pro-
focused in achieving the goals set forth in our gress we've been able to achieve. We know
Poverty Reduction Strategy, and that has in- that will not last forever, and we must prepare
stilled confidence in Liberia's future. The fact ourselves to be able to takeover fully the re-
that we have natural resources is also an asset, sponsibility for our development.
as is our openness to a market economy.
Based upon what we have done and the path
The biggest handicap has been a lack of capac- we are now on, Liberia can move from de-
ity. Many of us are stretched thin trying to pro- pendency to self-sufficiency in 10 years. We
mote this. Also the lack of infrastructure. should not have to ask for international assis-
tance. We should be able, on the basis of our
We still don't have sufficient power and roads. own natural resources, to finance our own
Our port systems need to be repaired and development effort. We should see the total
made modern. However, the confidence in transformation of Liberia in 10 years, and all
Liberia's future and the confidence in the cur- those who have been with us will be able to
rent leadership have been the driving force say, truly, that this is a post-conflict success
behind our ability to attract investment, de- story of which we can all be proud.
spite the restraints.
The latest U.S. State Department Human
You've also attracted significant assistance Rights Report says corruption remains
from international donors, including the "systemic throughout the government" and
United States. How important is aid for Libe- refers to a "culture of impunity" in the coun-
ria? try. What will it take for your 'zero tolerance'
policy to have its intended effect?
Without international assistance we would not
have been able to restore water and build the This government inherited the value system
roads and bring lights into our capital city for which could be characterized as one of de-
the first time in 14 years. We would not have pendency and dishonesty. It was a means of
been able to build schools and clinics on the $80 survival for many of the people who did not
million budget we inherited. That's the budget have jobs, were conscripted into warring fac-
for a high school perhaps in the United States! tions, who had no skills and had never been to
We're now up to $350 million, but that's small school. And they were placed into the civil ser-
for the massive needs of a country that was vir- vice. That's what we inherited.
tually broken.

129 Pan Africa & World Review 2nd Quarter 2010

Africa/Liberia/ Presidency Liberia Can Achieve Self-Sufficiency in 10 Years

We know it's systemic. It's not

just government. It's societal.
It's been a means of survival
for the past several decades.

We have to attack it on several

fronts. First, compensation - to
reduce people's vulnerabilities.
Secondly, systems - to make
institutions function again.
That's why we did so much to
reorganize and to recruit good
people for the General Audit-
ing Commission, and the Anti-Corruption Com- Liberian fisherman
mission. We are a member of the Extractive In-
dustry Transparency Initiative and were one of a certain way of life. But I'm convinced we're
the first African countries to get results under moving in the right direction and that, in a few
that program. years, we'll solve this problem.

The weakest link in our fight against corruption is Many Liberians say their paramount concern
our judicial system, which is part of the same so- is the absence of national identity and cohe-
cietal problem. We've got to be able to punish sion. In our recent interview with President
people, and to punish people we've got to go to [Jakaya] Kikwete [of Tanzania], he talked
the courts. We've got to win cases in the courts. I about reinstituting national service, which
have suspended people. I have fired people. But I helped forge cohesion by sending Tanzanians
cannot jail anybody unless they are sentenced by to regions different from their own. What can
the court. And our court system remains weak be done to begin to overcome the deep divi-
and vulnerable. sions that have characterized Liberia's history?

We're trying to address that. We've brought new As you rightly said, the lack of a national iden-
people in the ministry of justice. We're working tity has been longstanding in our national ex-
with the Supreme Court to make sure they perience. We see the effects of the war,
change the jury system. We're trying to get bet- which touched everybody from every group,
ter judges. Judges are protected, quite rightly. I as perhaps the means whereby we can find a
can't fire them. So we are trying to get them bet- common cause. If there is one thing that Libe-
ter training, better pay, better facilities to pro- rians from all walks of life now embrace, it is
vide an incentive to do better. peace. We want never to go back to war, be-
cause we know how devastating war has
There's a lot of talk about corruption. That's ex- been.
actly what we want, because we want to expose
it. The only way to solve it is to take it from under If promoting sustainable peace can be our uni-
the carpet and deal with it. After exposure comes fying force, then we have an opportunity to
solution, and that solution is to begin to punish talk about what brings us together as one peo-
people in the courts. ple with one destiny. We're still searching.
We're looking for what will capture all Liberi-
We are taking a lot of heat. That is unavoidable ans, that will bring out that feeling of a renais-
when you are trying to change the very culture of sance that we are looking for - rebirth, new life.
I hope we can find it.
130 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Presidency Liberia Can Achieve Self-Sufficiency in 10 Years

Would you describe the role of the Truth

and Reconciliation Commission in dealing
with the recent past and charting a way

The Truth and Reconciliation Commission

did a good job. They researched Liberia's
historical problems, the root causes of our
conflicts, and they've come up with several
recommendations that will promote the
healing process. Some of those recommen- Liberian girls in the Sande Bush (traditional adult initiation
dations have been challenged on constitutional training for adolescent females)
grounds. We think we need to have expert law-
yers look at the constitutionality and give us You've expressed frustrations about aspects of
advice. That's what we have done. media coverage. Do you think that media train-
ing can help address this?
In cases where a judgment has been passed
which would lead to the establishment of The training of journalists to make sure they are
courts, as a means of insuring justice, one responsible as they exercise their freedoms,
agrees with the principal of that. But timing and which they should, is important. The tendency
sequencing are also important in a country that toward sensationalism, because it sells the
is as fragile as ours, to make sure that whatever newspaper in an environment where resources
we do, we do in such a way that it doesn't lead are scarce and the reader public is limited - so
us back to conflict. all the bad news stories get the attention - that's
fine, but in the long run doesn't help. We need
We are moving on other recommendations - trained journalists who can conduct investiga-
ones that have to do with the healing process, tions, who can expose, but can expose on the
with restorative justice. the Palava Hut con- basis of truth, on the basis of their own proper
cept [a traditional method for resolving dis- analysis of the situation - not on the basis of
putes], [and] reparations in places where com- rumors. And when international media pick up
munities were victimized. the rumors that we all know in the country to be
untruths, it really hurts our country.
We are working with a Geneva-based organi-
zation, Centre for Humanitarian Dialogue, That's just not fair.
who's been holding meetings with representa-
tives of our civil society organizations, to read Are you concerned that next year's election
the report [and] come up with a road map on might reopen old wounds and prove divisive for
its implementation. We're trying to organize a the nation?
group in Monrovia to do the same thing.
Any election will have its tensions and divisive-
Anyone who says that the report is being ness. Our responsibility, our challenge is to mini-
trashed or is being thrown away is absolutely mize that. What we need to do - those of us who
wrong. We want to implement in a timely and are political leaders - is make sure we keep send-
appropriate way and ensure that whatever we ing the right message. Competition is a good
do, Liberia's peace must be maintained to en- thing. The door should be open for competitive
able us to carry out the development agenda politics. The process should be free and fair, and
that is unifying and healing the nation. we should make sure that the institutions manag-
ing the process have the capability to carry it out
131 -
Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Presidency Liberia Can Achieve Self-Sufficiency in 10 Years

in a peaceful manner. Let's all approach it in that


The next election in Liberia will be a defining

event. If those elections come off free and fair
and the Liberian peoples' choices prevail and are
respected, then Liberia will be on the path to
consolidate its peace and to get its development
agenda on an irreversible path. Any good-willed
Liberian, any responsible politician must work for
the achievement of that goal, because that is
what will make Liberia the country that we can
be proud of.

At the moment, election preparations are being

stalled until the National Legislature passes a
"Threshold Bill" to determine the allocation of
representation, based on the national census.
When do you expect this to be resolved?

In any country, when you are dealing with popula-

tion shifts and allocation of legislative representa-
tion, there are always problems, because certain
areas lose seats and others gain. We are dealing Atlantic Coast sunset, Cape Mount, Liberia
with that in our legislature - trying to establish a
threshold level that would minimize the loss of What drives me to run is that we have laid the
seats for certain counties. That's causing a big foundation, and we need a few more years to
problem. We've got to overcome that. Once we ensure there is no reversal. We need continu-
get past that - and we all know we are running out ity so we can bring Liberia to the place where
of time - the election commission has the means it is on an irreversible path, where we have
to start the campaigning. We should see this com- restored the infrastructure, where we have
ing to conclusion next week. solved the problem of corruption by building
those institutions that are the pillars of integ-
Why are you seeking a second term? Or perhaps rity, where our economy is booming and most
the question should be why you would subject Liberians are getting an education, getting a
yourself to the rigors and challenges you have job. Then I will be able to walk away and say:
faced since becoming president? And what do "The job is done. I've left the country better
you expect your opponents to say about you? than I found it." I look forward to that day.

When I read our papers and listen to the radio, I I take my cue from what the Liberian people
sometimes ask myself - "do I really need this"! I want, because it's going to be their choice. I
know they are going to be raising the same know the Liberian people will make the right
charges - that we are not fighting corruption; you decision. Whatever it is, accept it. I think they
said you would only run for one term, the Truth know that I've brought them a long way.
and Reconciliation report. [The TRC recommended
that President Johnson Sirleaf be barred from pub-
lic office for being "associated with former warring
132 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Economy/ Foreign Investment
The Informer (Monrovia)
26 April 2010

China's Investment Reaches $9.9 Billion

T he Government of the People's Republic of
China has revealed that its investment in
Liberia has reached a total of US$9.9 billion dol-
The Vice Minister of Commerce of China,
Mr. FU Ziying, made the disclosure during the
signing ceremony of six agreements between
the Government of Liberia and China, which
took place at the Ministry of Foreign Affairs
over the weekend.
The agreements are intended to boost trade
between the two countries and peoples.
The six agreements are: Economic and Tech-
nical Cooperation between the Government of
the People's Republic of China and the Govern-
ment of Liberia; exchange of letter-zero tariff
treatment with import of 60% of commodities
originated from Liberia to China shall be totally
exempted; exchange of letters-on Technical Co-
operation Project with the Liberia Broadcasting
Other agreement entered into include ex-
Liberia’s Foreign Minister Madam Olubanke King-Akerele
change of letters-for the provision of 10 million
RMB (Yuan) by the Chinese Government for addi- all we can to help the people of Liberia. T o
tional medical materials to the Tappita Hospital date, through the smooth cooperation be-
to support the operation of the hospital; ex- tween the people of Liberia and China, my
change of letter for the provision of RMB3 Mil- country has invested 9.9 billion dollars in your
lion medical equipment to the China-Liberia Ma- economy," Fu Ziying noted.
laria Prevention and Treatment Center by the Additionally, the stalled China-Union
Chinese Government and exchange of letter-for Bong Mines Project was also lunched. The
the provision of three (3) Million Yuan malaria project is expected to provide job and invest-
medicines to the Liberian Government by the ment opportunities in Liberia and boost the
Chinese Government. country's economy.
The Minister of Foreign Affairs, Olubanke The head of the 42 member delegation
King-Akerele signed for the Government of Li- comprised of government officials and busi-
beria while the Vice Minister of Commerce of ness executives as well as journalists said the
China, Mr. Fu Ziying signed on behalf of his signing of the agreements symbolizes the long
country. standing bilateral relations between the two
Madam Akerele welcomed the delegation countries.
and said their visit to Liberia shows that China Mr. Fiying said it is hoped that upon the
has lots of interests in Liberia. She added that completion of the projects undertaken by his
the agreements will promote Liberia's develop- government, Liberians will make good use of
ment programs and build the country's econ- the facilities because the Chinese government
omy. attaches great importance to the development
The Vice Minister of Commerce of China of Liberia.
thanked the Liberian Government and people for
the warm welcome received, adding, "We will do
133 Pan Africa & World Review 2nd Quarter 2010
Africa/Liberia/ Economy/ Foreign Investment
The Informer (Monrovia)
26 April 2010
China's Investment Reaches U.S $9.9 Billion

Unveiled China Union Investment Liberia Bong Mine Project: President Sirleaf, Speaker Tyler and Chinese Vice
Minister of Commerce, Mr. Fu take a close look (photo: Foreign Ministry)

The University of Liberia Fendell new

campus and the Tappita Hospital in Nimba
County are among projects he said his govern-
ment has undertaken in Liberia. He also
pledged his government’s support to health
care, agriculture, tourism and noted that China
is committed to working with Liberia in its de-
velopment drive.
Following the unveiling of the nameplate
of the China Union Investment (Liberia) Bong
Mines Co. Ltd, President Ellen Johnson Sirleaf
praised all those who have worked in ensuring
that the Bong Mines project becomes a reality.
She also praised the effort of Chinese Presi- UN envoy Ms Margrthe Løj inspecting the Chinese peacekeep-
dent Hu Jintao. ing contingent in Liberia (below) Chinese teacher Li Peng
President Sirleaf called on all partners and teaches a Mandarin class in Liberia
the business community to support the invest-
ment and help transform the country. She also
wants Liberian businesses to take advantage of
the project and begin to identify areas of pos-
sible investment.
The 2.5 billion dollar China Union Bong
Mines Project is seen as the biggest project in

Pan Africa & World Review 2nd Quarter 2010 134

Africa/Mali/Millennium Development Goals

May 4, 2010

Senior UN Official Lauds Mali’s Development Initiatives

The head of the United Nations Development
Programme (UNDP) today concluded a visit to
the West African nation of Mali, lauding the ef-
forts the country was making as its strives to al-
leviate poverty and provide basic social services
to the people.
Helen Clark said Mali was committed to de-
mocratic governance and was making progress
towards achieving the Millennium Development
Goals (MDGs), a blueprint agreed to by all the
world's countries aiming to reduce extreme pov-
erty and other problems by half by 2015.
Mali had also managed to reduce national
HIV/AIDS prevalence from 1.7 per cent in 2001
to 1.3 per cent in 2006, and has dramatically ex-
panded universal access to treatments and other
services intended to halt the spread of the dis-
Miss Clark, the Administrator of UNDP, vis-
ited the historic mosques in the legendary city of
Timbuktu and toured the library that houses its
mediaeval manuscripts.
On the outskirts of Bamako, the capital,
Miss Clark visited an all-women mango coopera-
tive striving to give female farmers the right skills
to grow and treat their produce for export. Each
of the farmers in this UNDP-supported project,
aimed at poverty alleviation, handled about 35
tons of mangoes for the export market. The pro-
ject has enabled Mali's mango exports to rise
sharply, from 2,915 tons in 2005 to 12,676 tons In addition to agriculture textiles have long a major product of
in 2008. Mali’s town economies. (Top) Mali textile designer showing off a
"These types of aid for trade initiatives help tie-dye fabric she made (below) Bamako tailor making women’s
empower women, boost family income, and even attire. Mali’s indigenous textiles and fashions are carried by
help ensure their children got to school. Everyone traders to other parts of Africa and overseas. Families and com-
gains," she said. "Mali truly has the opportunity to munities typically work in this enterprise, from the dying of the
become the breadbasket for the region," she fabric and sewing of the garment to the marketing.
Miss Clark praised Mali's respect of democ- and participation in decision-making" are key
ratic principles in discussions with President steps towards achieving women's empower-
Amadou Toumani Touré, Prime Minister Modibo ment, she said.
Sidibé, Foreign Minister Moctar Ouane and other UNDP and the Global Environment Facility
senior Government officials. plan to develop a $2.3 million project in Mali to
She discussed a range of additional develop- bolster the resilience of the country's agriculture
ment issues with the President, including the key in the face of climate change.
role of agriculture for Mali, the importance of During her mission to Africa Miss Clark was
tackling climate change, and the importance of scheduled to travel from Mali to Burkina Faso,
improving the status of women. Tanzania and finally South Africa.
"Economic empowerment [of women], ac-
cess to legal rights, including inheritance rights
135 Pan Africa & World Review 2nd Quarter 2010
Africa/Nigeria/Economy Nigeria Stock Exchange

Nigeria Stock Exchange

Market Data as of June 30,2010

All Shares Index Naira Capitalization $U.S. Capitalization

25,384.14 N6,174,417,873,229.25 $41,832,099,412.12

136 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/Economy/Downstream Petroleum Information Media
Nigeria, China Sign $23 Billion
Oil Refinery MOU
Nigeria Union of Journalists Abuja
N igeria National Petroleum Corporation
(NNPC) and China State Construction Engi-
neering Corporation Ltd. on May 15th signed a
Protest Over Murdered Journalists
$23 billion Memorandum of Understanding for Members of the Nigeria Union of Journalists
construction of three petroleum refineries and a (NUJ) Abuja Council Saturday carried placards to
fuel complex, though the exact locations of the protest the killings of journalists and insistent
facilities has not yet been announced. threats to their lives.
Noting that Nigeria currently spends about The journalists, who joined other workers to
$10 billion annually importing refined petroleum mark the May Day celebrations at Eagle Square
products, Shehu Laden, NNPC’s managing direc- Abuja, held placards that read 'Stop the killings of
tor at the time of the signing, said, "Over the next journalist', 'Journalists need to be protected' and
decade, NNPC desires to eliminate completely 'FOI bill is for every one'.
the current flood of imported petroleum prod- The chairman stated that a council member,
ucts into Nigeria's domestic consumption." Chuks Okocha of This Day, sent him a text he re-
Laden said signing the MOU deepened the ceived that read thus: "Gbenga Aruleba (AIT),
technical and commercial relationship between Yusuf Ali (The Nation), Olusola Fabiyi (PUNCH),
Nigeria and China. Chuks Okocha (This Day). U all have no hiding
place. U must be happy now dat Prof. Maurice
Iwu has been sacked due to ur bad stories and
President Jonathan dismisses reports. We will deal wit u soon. Remember Dele
Shehu Laden as NNPC boss– Giwa, Bayo Ohu and Edo Ubagwu? Gud luck".
orders audit The council chairman expressed worry over
the development and called on the FCT police
boss to provide 24-hour security for the affected
O n May 17, President Goodluck Jonathan
dismissed Nigeria National Petroleum
Corporation managing director Shehu Laden
journalists and others as well as leave nothing to
chance in bringing to book all those that are re-
and directed Finance Minister Olusegun Aganga sponsible for the senseless killing of journalists in
to engage a world-class accounting firm to audit the country.
the parastatal’s accounts. "By this protest letter, we are handing over
Shehu Ladan was appointed Nigerian Na- these journalists to your protective custody and
tional Petroleum Corporation (NNPC) managing hope that no harm will come to either of them or
director on April 6, 2010, replacing Mohammed members of their families," the petition read.
Sanusi Barkindo, who was in office for just over City News further learnt that several at-
a year. Laden who served as NNPC boss for only tempts to locate the GSM number 08063623794,
41 days was replaced by Austin Oniwon, the where the threat came from yielded no result as
firm’s executive director in charge of refineries the service provider kept saying the number was
and petrochemicals, presidential spokesman out of service.
Ima Niboro said in an official statement.
Laden had retired from NNPC in April 2009
as Group Executive Director, Commercial and
Investments. The Presidency statement did not
give any reason for Laden’s removal.
The new NNCP boss, 59 year old Austin
Oniwon, an engineer who hails from Okene,
Kogi State, began his career with the company
in 1977 and rose through the ranks, serving
from 2003 to 2009 as managing director of
Eleme Petrochemicals Company Limited.

137 Pan Africa & World Review 2nd Quarter 2010


World Bank to Create 100,000 Jobs

from Nigerian Entertainment
Daniel Gumm
27 May 2010

For three days, early this month - Tuesday, May African countries, Europe, America and the Carib-
4, Thursday, May 6, and Monday, May 10 - the bean and almost all the exports are pirated cop-
Nigerian Export Promotion Council (NEPC), World ies. There is no recognized or utilized legal chan-
Bank, National Film & Video Censors Board nel for these movies to be exported which means
(NFVCB), Nigerian Film Corporation (NFC), and there is no return to the owners and creators
Nigerian Copyright Commission (NCC) in a col- behind the movies and no revenue to the Nigeria
laboration came together for the purpose of ex- government. That's why we are excited about
porting Nigerian entertainment to global audi- collaborating with NEPC, NCC and NFVCB among
ence, and Vanguard, which was part of the vari- other stakeholders to ensure we make this a
ous workshops spoke to a World Bank Finance fruitful export for the country and its citizens."
and Private Sector specialist, Chioma Nwagboso. On how did the World bank arrive at the
sum of $20 million intervention fund, and in
Excerpts: what sectors of the entertainment industry
On what brings about the World Bank's interven- would the fund be utilized, she explained that
tion in "Harnessing the Nigerian Entertainment the $20 million is just a starting figure, "We hope
Industry for Formal Export," at this time, Chioma to achieve some quick wins and then scale it up
Nwagboso said: "The World Bank is interested in to a larger amount during implementation."
supporting the Nigerian Entertainment industry On GEMS, and what is the focus of the pro-
because of its huge potential in terms of job ject? "GEMS stands for Growth and Employment
creation and value creation." in States Project. It is a Federal Government Pro-
According to her, the industry "started with- ject that will support key industry clusters includ-
out government aid, intervention or assistance. ing the entertainment industry. The World Bank
Instead, talented individuals with a passion and and DFID are providing financial support to the
drive grew it from scratch and today it is worth project which seeks to reduce poverty in Nigeria.
about $250 million, employs at least 500,000 Ni- The project aims to create thousands of new jobs
gerians directly and about the same indirectly in selected states and diversify the economy
and has demand worldwide. thereby ending our dependence on oil.
According to a new United Nations Educa- "GEMS is focusing on six industries that we
tional, Scientific and Cultural Organisation believe have the ability to contribute towards the
(UNESCO) report released in May 2009, the Nige- growth of the Nigerian economy while providing
rian film industry has overtaken Hollywood and employment to the millions of unemployed youths
closed the gap on India to be the global leader in out there. The six industries are Construction,
the number of movies produced each year. Meat ad Leather, Wholesale and Retail, ICT, Hospi-
It is the third largest movie industry in the tality and Entertainment."
world by value after Hollywood and Bollywood On what the GEMS project is supposed to
(India's film industry). Most of those employed in achieve, and the likely in-built mechanism to en-
the industry are graduates or school leavers who sure its success, the World Bank expert said the
are the main target group for our support within programme would deliver three outputs, viz:
this particular project.
"In terms of exports, these movies are pur- • An improved business environment that re-
chased and watched across the world in other duces the cost and risk of doing business, pro

138 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/Entertainment WB to Create 100,000 Jobs from Nigerian Entertainment

viding greater incentive to invest;

• Increased competitiveness of strategic
clusters in selected non-oil industries, im-
proving the return to investment in terms
of growth and jobs;
• Effective monitoring and evaluation to
provide valuable lessons which, through
communication and peer learning, help to
leverage programme impacts.
On how prepared is the World Bank to tackle
the issue of piracy in the Nigerian entertain-
ment industry, Nwagboso said "piracy is the
scourge of the Nigerian entertainment indus-
try. On set at a Nollywood production
Pirates have hijacked and robbed the in-
our foreign exchange revenue from oil. In each
dustry of all of its professionals. With little in-
case this will be achieved by working on some
put they often reap many times more than the
of the market failures, organizing the private
genuine investors in the industry. The pirate is
sector players and reviewing and making
not interested in the creativity, time, work and
changes to inappropriate regulatory or legal
effort; he waits for the completed work, gets a
frameworks and policies that govern each sec-
copy, mass dubs it and rushes to the market
before the authorized marketer or distributor
And on how do the World Bank hopes to
to sell it at a price often less than the produc-
reduce the cost of doing business in Nigeria,
tion cost price."
she said the "World Bank has a unit that looks
We have held meetings with the Nigerian
at the business environment and publishes a
Copyright Commission and the National Film
league table of all the countries in the world,
and Video Censors Board to understand what
each year entitled: "Doing Business." In Nige-
their challenges and constraints are and how
ria, this analysis is undertaken within the In-
we can be of assistance. We are particularly
vestment Climate Project which supports state
interested in the anti-piracy product known as
governments in improving their business envi-
source identification code been heralded by
the NCC and the NFVCB's Digital Nollywood
Together with DFID we have provided
Project which is aimed at creating a digital dis-
grant funding and technical expertise to states
tribution platform for Nigerian films through
interested in undertaking reform pilots to im-
the connected video clubs and retail outlets
prove their business climates."
that would be signed up to retail and rent digi-
These efforts will be scaled under the pro-
tally secured content through proprietary digi-
posed GEMS project, where we will focus in
tal media computers.
more detail on land and tax reforms and reduc-
We also collaborated with the Nigerian
ing the number of days it takes to get permits to
Export Promotion Council on its conference on
start a business. The World Bank strongly be-
"Harnessing the Nigerian Film Industry through
lieves that an improved business environment
formal non-oil export." We believe that this
reduces the costs of doing business and en-
will create national awareness in the huge po-
hances opportunities for both domestic and
tential Nigerian films has in contributing to-
foreign investors. This is needed to create jobs
wards the generation of foreign exchange to
and provide opportunities for all but especially
the country."
for young Nigerians.
On how the World Bank will create jobs in
the non-oil sector of the economy, Nwagboso
noted that the overall aim of "this project is to
create over 100,000 new jobs in these growing
industries. We intend to support and to reduce
139 Pan Africa & World Review 2nd Quarter 2010
Africa/Nigeria/ Political Economy
Daily Independent, Lagos
Editorial, June 30,
Calling Shell's $40 Billion Bluff
Royal Dutch Shell, the dominant multinational oil exported - and continue to be exported - while bil-
corporation operating in Nigeria, reportedly warned lions of cubic metres of natural gas have been un-
the Federal Government last Thursday that $40 bil- productively flared - and continue to be flared - in
lion of planned investments in the country would be the absence of an industrial complex that would
put off if the National Assembly passes the Petro- have enabled the nation to maximize the synergis-
leum Industry Bill (PIB). The company's spokesman tic potentials of a plethora of linkages.
disclosed that the investments were in offshore oil We aver that the PIB is a long overdue bold
sites the company was planning to explore in the attempt to holistically overhaul the petroleum in-
future. dustry in order not only to correct the skewed dis-
As proof of its seriousness, Shell also an- tribution of oil revenues and profits that favour the
nounced that it was putting the projects on hold multinational oil companies (MOCs), but also to
pending the final decision on the PIB, implying that give oil-producing areas a greater stake in the in-
it would only proceed full steam when the National dustry.
Assembly kills the bill. To ensure that the Federal We call on the National Assembly to speedily
Government was left in no doubt about the serious- pass the PIB without much ado. The legislators
ness of its intention, Shell also hinted that it could should be clearly told that the nation is watching.
no longer depend on Nigeria as a profit-maker, de- There have been strong rumours that some MOCs
spite being the dominant player in the field. are sponsoring key legislative committee members
We condemn this threat by Shell - the latest in to conferences and workshops in places like Ghana.
its well-orchestrated vocal campaign against the If these reports are factual, we ask the legislators
PIB. While we concur with Shell's position that the to put the nation's overall interests above every
primary objective of being in business is to earn a other consideration, by abiding by the patriotic
profit stream commensurate with attendant risks, oath of office they swore to uphold, and refusing to
we are fully persuaded that the PIB does not in any be used to shortchange the nation and its citizens.
way hamper the capacity of oil industry operators Given the dearth of patriotic leadership and
to realize normal profits from their activities. Shell the ubiquity of graft in all facets of national life, it is
is well within its rights to mull over whether or not irrational to expect that the mere passage of the
to continue making further investments in oil explo- PIB will turn things around overnight. But just like
ration, from a strictly business perspective. But one Rome was not built in a day, its passage would
thing is clear: this nation has reached a stage where guarantee the evolution of a workable framework
its economic lifeline can no longer be held hostage for changing the form and content of the oil sector
by the antics of one or more whining players in the in the years ahead. Happily, the historic exposures
oil sector. of serving and retired public officials named in
In a way, Shell's threat did not surprise us. Truth bribe-for-contracts scams involving Halliburton and
be told, no party enjoying lopsided advantages in a Siemens, among others, has shown that there is no
trading partnership likes to easily give up the bene- longer any hiding place for corrupt government
fits that have been built into the process over time. It functionaries. No amount of short-term illicit gains
is a fact that African nations have traditionally been is worth the shame and disgrace attendant on an
providers of primary products for over 200 years for exposure - long after the bribes have been col-
the booming industries of Europe and America. lected and spent.
Worse still, the same raw materials are recycled to The Jonathan administration and the National
Africa, culminating in a double whammy: the prices Assembly should call the bluff of multinational
they earn on their raw materials are not competitive firms like Shell, and send a clear message to others
because they are determined by the industrialized waiting in the wings, that this nation will not suc-
nations; then they pay through the nose for the fin- cumb to cheap blackmail from any quarter.
ished imports!
This pattern has been in vogue since oil was
discovered at Oloibiri more than 50 years ago by
Shell. Billions of barrels of crude oil have been

140 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/Executive Arm

Jonathan to new cabinet: “We must hit the ground running”

N igeria’s Acting President, in inaugurating

his new cabinet on April 6th was emphatic
about focus on improving the quality of Nigeri-
the Minister of Defence, and will be assisted by
the son of late vice head of state Shehu Musa
Yar'Adua, Alhaji Murtala Shehu Yar'Adua.
ans’ lives in the coming months, using blue prints
already prepared and in accordance with the pol-
icy objectives laid out by the Yar’adua admini-
stration when it came to office in 2007. Assert-
ing his appreciation of the vital importance of
improving power supply throughout Nigeria, Act-
ing President Jonathan himself took the Ministry
of Power portfolio and said he would work in
collaboration with the Prof. Bartholomew Nnaji
chaired Independent Power Producers Associa-
tion. Prof. Nnaji, apart from being a world lead-
ing expert in Computer Aided Design (CAD) and
Robot Technology is also a world renowned
power supply consultant.
The Acting President stressed, "Our efforts
in governance must be manifested in the revamp
of decaying infrastructure including steady
power supply and good roads; provision of sound
and quality education; the good health of our
people; provision of jobs for our unemployed
youths, security of life and property, commit-
ment to free and fair elections and the very strict
adherence to the rule of law".
Acting President Jonathan has reduced the
load on some ministries by splitting them. Water
Resources is now independent from Agriculture.
The former Ministry of Works, Lands, Housing &
Urban Development has been split into two.
Following Senate approval of his cabinet
candidates, Acting President Jonathan allocated
Minister and Minister of State (deputy ministers)
portfolios. The ministers were sworn in on April
6th. Acting President Jonathan said at the occa-
sion: "While we continue to pray for the speedy
recovery of the President, permit me to empha-
size the policy continuum of governance and to
insist on the imperative of this team to roll up its
sleeves, and to redouble effort so as to meet the
expectations of our people who are yearning for
good governance".
Finance Minister, former Goldman Sachs
United Kingdom Managing Director Mr. Olusegun Information & Communications Minister Prof. Dora Akunyili
Olutoyin Aganga shall also chair the National Eco- (top) and National Planning Commission Minister Dr. Sham-
nomic Team. sudeen Usman (bottom) retained their posts
The outgoing Attorney-General of the Fed-
eration, Chief Adetokunbo Kayode, SAN, is now

141 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/Executive Arm “We must hit the ground running”

Ministry Minister State Minister

Agriculture & Water Resources Prof. Sheikh Ahmed Abdullah Mr. Awodele Najeem Adewale
Aviation Mrs. Fidelia Njeze
Commerce & Industry Sen. Jibril Martins Kuye Mrs. Josephine Tapgun
Culture & Tourism Abubakar Sadiq A. Mohammed
Defense Chief Adetokunbo Kayode, SAN Murtala Shehu Yar'Adua
Education Prof. (Mrs) Ruqayyatu A. Rufa'i
Environment Mr. John Ogar Odey
Federal Capital Territory Senator Bala Muhammed
Finance Mr. Olusegun Olutoyin Aganga Mr. Aderemi W. Babalola
Foreign Affairs Mr. Henry Odein Ajumogobia, SAN Dr. Aliyu Idi Hong
Health Prof. C.O. Onyebuchi Chukwu Alhaji Suleiman Bello
Information & Communications Prof. Dora Akunyili Mr. Labaran Maku
Interior Capt. Emmanuel Iheanacho Mr. Humphrey Enemakwu Abah
Justice/Attorney General Mohammed Bello Adoke, SAN
Labor & Productivity Chukwuemeka Ngozichineke Wogu
Lands & Urban Development Hon. Nduese Essien
Mines & Steel Development Arc. Musa Mohammed Sada
National Planning Commission Dr. Shamsudeen Usman
National Sports Commission Hon. Ibrahim Isa Bio
Niger Delta Affairs Elder Peter Godsday Orubebe Hon. Samuel Ode
Petroleum Resources Mrs. Dieziani Alison-Madueke
Police Affairs Alhaji Adamu Waziri
Power Ag. President Goodluck Jonathan Arc. Nuhu SomoWya
Science & Technology Prof. Muhammed K. Abubakar
Special Duties Navy Capt. Earnest Olubolade (Rtd)
Transport Yusuf Sulaiman
Women Affairs Mrs. Josephine Anenih
Works Sen. Sanusi M. Dagash Chris Ogiemwonyi
Youth Development Sen. Akinlabi Olasunkanmi

142 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/Information Media

Editorial April 29, 2010

Killing of Journalists
Lagos — THE recent gruesome murder of three and Godwin Agbroko, were killed in questionable
Nigerian journalists, in two different attacks, circumstances and when their killers are yet to
have, again, exposed the increasing state of inse- be tracked down and prosecuted by the police,
curity in the country and suggests that journalists Nigerians are worried whether the murderers of
may have truly become endangered species. these latest three will ever be found.
The chilling accounts of how the assassina- This worry is fuelled by the general concern
tions were carried out, in Lagos and Jos, show the over the increasing cases of unresolved murders
general poor rating of human life in the country. in the country , including the parcel bombing of
At about 6.30pm on Saturday, April 24, ace journalist Dele Giwa and the brutal killings of
2010, yet-to-be identified gunmen, invaded the political leaders and elders like Bola Ige, Harry
Shasha, Lagos residence of Mr. Edo Sule- Marshall and Alfred Rewane, to mention but a
Ugbagwu, a judiciary correspondent of The Na- few.
tion newspaper and shot and killed him. While condemning the killings, we insist that
Mr. Okloho, Edu's younger brother, who wit- the police must not treat this case like the other
nessed the killing, said the assassins first con- unresolved high profile murders.
fronted him and asked him to bring 'the money.' The image of the police in particular and of
But as he tried to explain that he had no money to Nigeria in general has continued to suffer great
give, Edu, his elder brother came in to meet them blows as a result of the piling cases of unresolved
and the gunmen shot and killed him and walked high and low profile murders and this must be
away without stealing anything from the house. reversed through resolution of these puzzles.
Edu's wife, who was waiting for her husband The task of resolving murders or other
opposite their house at the time of the incident, crimes should not, however, be left to the police
revealed that she was going out with Edu, when alone. The public has very important roles to
somebody called his mobile phone. Edu, report- play, especially in the area of provision of infor-
edly gave the caller direction to their house and mation. .
requested his wife to wait for him outside as he Many citizens in Nigeria, however, still shy
wanted to receive some visitors. But as he got away from playing this vital role, primarily be-
back to his flat, Edu was shot and left to die in the cause of lack of confidence in the police. This has
pool of his blood. affected negatively the effectiveness of investiga-
Two other journalists, Mr. Nathan S. Debak, tors, who, thus, have little or no clues to work
the Deputy Editor, Sunday and Mr. Gyang Bwede, with.
a reporter, both of who worked with The Light Sadly, the reality suggests that the country is
Bearer newspaper, a publication of the Church of one big jungle where gunmen walk casually into
Christ in Nigeria, COCIN, headquarters, Jos, were people's homes in broad daylight, shoot their vic-
also willfully killed in very chilling circumstances; tims point blank and stroll away, unchallenged,
this time in Plateau state.. unidentified and unidentifiable because nobody is
The two reporters were on an assignment in ready to volunteer information. This must stop.
the Nasarawa Gwom area of Jos North Local Gov- We, therefore, call on the acting President
ernment when they ran into rioters at Dutse Uku. Goodluck Jonathan-led Federal Government to
According to reports, after pleading with the ensure that the killers of these three journalists
armed rioters and explaining that they were jour- are immediately caught and prosecuted. Also, if
nalists on assignment, the killers stabbed them Nigeria wants to be taken seriously, time has
mercilessly and abandoned them to die at the come when the killers of similar murders must be
scene of the incident. fished out to face the law.
Coming not long after several other journal-
ists in Nigeria, like AIT's Efenji Efenji, Guardian's
Bayo Ohu, and Thisday's duo of Abayomi Ogundeji

143 Pan Africa & World Review 2nd Quarter 2010


Acting President Jonathan talks to CNN

While in Washington participating in the White
House hosted Nuclear Security Summit, Nigeria’s Act-
ing President Goodluck Jonathan chose to give this
first interview to none other than Cable News Net-
work International (CNN). The not to brief encounter
with CNN’s Christine Amanpour gave the world a
view of his relaxed, earnest style, his sense of realism
and determination to optimally perform and deliver
during the few months remaining before Nigerians
shift into campaign gear for next year’s general elec-

Thank you very much, indeed, for joining us on this

Thank you for finding time to discuss with me.

Can I ask you first what an extraordinary name. How
did “Goodluck” come to be your name?
medical absence in Saudi Arabia?
I don’t know. I have to ask my father. Jonathan:
No, I have not seen him.
Have you had good luck? And do you think you’ll Amanpour:
need more than good luck to face down the incredi- Why not?
ble array of challenges that’s on your plate?
Jonathan: The thinking of the family is that they should iso-
Well, the issue of good luck, I don’t really believe late him from most of the key actors in govern-
that the good luck is an issue. But at the present, I’ve ment. I have not seen him. The Senate president
been facing a lot of challenges. What some people has not seen him … and at every single government
will attribute to good luck could have been disastrous function, I have not seen him.
under some circumstances.
Amanpour: Doesn’t that cause anxiety amongst the people?
Well, let me ask you this. You are now acting presi-
dent, because the president, Mr. Yar’Adua, is unwell. Jonathan:
Yes, it does. It does. Obviously, it does, but we can-
Jonathan: not influence his family’s thinking.
Amanpour:: Would you prefer that the family allowed you to
Have you seen him since he has come back from his visit him?

144 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/Presidency Acting President Jonathan talks to CNN
Jonathan: Jonathan:
Yes, of course. But I will not want to force. I can’t say that. It’s difficult for any of us as mortals
to say so.
What is his actual state of health? This also is a Amanpour:
mystery. So you are now acting president, and you have
essentially a year, because elections will be held
Jonathan: this time 2011.
I can’t say exactly. Only the medical doctors can.
Amanpour: Yes.
Have they told you?
Jonathan: What is your most pressing issue?
No, they haven’t.
Amanpour: The most pressing issue for Nigerian now, in terms
Have they made any public statements? of basic infrastructure, is power.

Jonathan: Amanpour:
Not quite. Not now. At the beginning, yes, but You mean electricity?
(Someone’s name – unclear) left for Saudi Arabia, I
think in the second week or so, within the first Jonathan:
week, we were told that acute pericarditis. After Electricity. Outside that, what is central to the
that, no other statement has been issued. minds of Nigerians now is an election that their
votes will count, free and fair elections because
Amanpour: we’ve been accused of as a country that our elec-
So if he can receive religious leaders, why can he tions somehow are questioned. And I promise Ni-
not receive at least the acting president who’s act- gerians that they will surely get that and I’ve done
ing in his name? some experiments.

Jonathan: The next thing that Nigerians worry about is issues

Well, religious leaders are there for (inaudible) of corruption. You know we’ve been accused of as
blessings. Probably that is why they asked the reli- people who are in a privileged position in govern-
gious leaders to go and pray for him. We are a ment amassing wealth at the expense of society.
very, very religious society. So they expect us to take these two issues seri-
Do you believe that those around him are trying to Amanpour:
undermine you or your new cabinet? So what can you do to take those issues seriously?
Obviously, the issue of good governance, of free
Jonathan: elections, free of corruption is central, and you
I wouldn’t say they are trying to undermine me, heard the United States has also said just now that
because the laws of the land are very clear. And, you must remove the head of the election com-
of course, that is why in the first place [the] consti- mission, Maurice Iwu. Will you do that?
tution is designed for two people to be in charge
of government at every time, one superior and Jonathan:
one inferior. You see, the issue of the – the electoral body – in
fact, I even told the audience I addressed this
Amanpour: morning, the issue is whether the present elec-
Do you think he will ever come back to govern- toral body can conduct free and fair election or
ment? not. And I told them that, yes, they can, because I
145 Pan Africa & World Review 2nd Quarter 2010
Africa/Nigeria/Presidency Acting President Jonathan talks to CNN
have done it with the same people.

On [the] issue of the people at INEC, I told them

that, look, between now and ending of June,
most of the officials at the national level –
they’re called commissioners – their tenure will
end, and we’re going to review them on individ-
ual merit.

Within this period that I have been acting presi-

dent, I have conducted three elections. They
were conducted by INEC and it was free and
fair. Only on Saturday, we conducted local
council elections in the Federal Capital Territory
and all the information is that, apart from one
very Iwu, I’m not trying to argue for him. The
or two that had some few discrepancies, they
Iwu we are talking about has conducted free
have been very peaceful, very credible… So that
elections these past three elections that I’ve
is the issue. So the issue is beyond one person.
made reference to that are credible. So the is-
sue is beyond Iwu because we must set up an
electoral system and our regulations and laws
But let me just ask you…
that will make sure that anybody who is ap-
pointed to that office should be able to conduct
Jonathan: acceptable elections. And that is my focus.
I’m not defending the chairman.
Amanpour: OK. Will you run in 2011? Will you present your-
Do you think he will stay or will he be removed? self as a presidential candidate?

Jonathan: Jonathan:
All of them we’ll review. And any one of them For now, I don’t want to think about it, because
that we feel is not competent definitely… the circumstances of the day are quite worri-
Do you feel that Mr. Iwu is competent? I came in as the vice president to run with Presi-
dent Yar’Adua; of course, getting close to [the]
Jonathan: period of election he took ill. And I had to take
(Laughs) No, no, no, no. I know that this ques- over under somewhat controversial circum-
tion continues to come up. stances. Only last week, I reconsidered the cabi-
net. So let us see how Nigeria will move forward
What I’ve said is… the issue is beyond Mr. Iwu. first. I had a similar experience when I was gov-
ernor of my state.
I know. But I’m specifically talking about him,
because it’s come up in your meetings with U.S.

Yes, I agree that within the period that is
(inaudible) there are quite a number of contro-
versies. I agree. There are quite a number of
concerns. There are quite a number of contro-
versies. So I know what I’m telling you; that this
146 Pan Africa & World Review 2nd Quarter 2010

Acting President Gets Attention

Jim Lobe, April 13, 2010

U.S. President Barack Obama welcoming Nigeria’s Acting President Goodluck Jonathan
at Washington’s Nuclear Security Summit

Washington — Among the almost four dozen vasive corruption that has long afflicted Nigeria,
heads of state who have gathered here for this laying the foundation for reforms in the country's
week's Nuclear Security Summit, Nigeria's acting ailing power sector, and, perhaps most urgently,
president, Goodluck Jonathan, has been receiving shoring up an eight-month ceasefire with militants
a disproportionate share of high-level attention. in part by jump-starting economic development in
With a one-on-one with President Barack the oil-rich but poverty-stricken Niger Delta.
Obama Sunday and a Monday morning standing- Both in his meeting with Obama, which he
room-only conference at the prestigious Council described as "warm and friendly", and at his CFR
on Foreign Relations (CFR), Jonathan, who took presentation, the fedora-hatted Jonathan said he
over from long-ailing President Umaru Yar'Adua in did not see his job as simply that of a caretaker
February and has less than a year to serve out his until the January elections.
term, is nonetheless considered a key figure by Indeed, his decision last month to replace
Washington's influential. Yar'Adua's cabinet with his own appointees was
As Africa's most populous nation, West Af- widely viewed by Nigeria specialists here as both
rica's biggest economy by far, and the fifth most- surprisingly bold and potentially very promising in
important supplier of foreign oil consumed in the terms of pursuing a reform agenda. The decision
United States, Nigeria's stability has long been was also popular; his approval ratings shot up to
considered a priority by U.S. policy-makers. some 80 percent, according to public-opinion
In Jonathan, they see an opportunity not only polls.
to reverse the dangerous sense of drift that re- "...(We) are committed to ensuring that the
sulted from Yar'Adua's nearly three-month ab- remaining period of the administration is not a
sence from the country for medical treatment in transitional period but one which we hope will one
Saudi Arabia, but also to advance long-stalled re- day be viewed as a watershed, a transition for Ni-
forms on a variety of fronts. ger Delta and the rest of the country, and standing
Those include setting the stage for credible strong on our resolve against corruption," he said.
elections currently scheduled for January, waging Jonathan's visit, his first trip outside Nigeria
a more aggressive campaign against the per- since becoming acting president, came just days

147 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/Presidency Acting President Gets Attention
after Secretary of State Hillary Clinton, who visited An early ceasefire agreement worked out in
Nigeria last August, and Foreign Secretary Yayale 2005 between the government of former Presi-
Ahmed inaugurated a U.S.-Nigeria Bi-national dent Olusegun Obasanjo and MEND broke down
Commission, a forum designed to "strengthen and after just over a year. The result has been reduc-
deepen the partnership" between the two nations. tions in oil production – and the loss of billions of
The commission is to focus on four "key ar- dollars in revenue to the government, as well as
eas," Clinton said at the signing Apr. 6: good gov- growing concern in Washington, which is highly
ernance and transparency; regional cooperation dependent on foreign oil imports - in each of the
and development, notably in the Niger Delta; pro- years that followed.
moting reform and investment in the energy sec- Last year, Yar'Adua proposed a programme
tor in ways that could help the poorest sectors in for militants that would offer them three-staged
the population; and food security and agricultural amnesty that included promises of cash, training
development. and eventually jobs for militants who turned in
Of the four, good governance, particularly in their arms.
ensuring the integrity of next year's elections, and While the programme got off to a strong start
consolidating the fragile ceasefire in the Niger in October, it bogged down after the president left
Delta will be "first out of the box", according to for Saudi Arabia. By February, MEND announced it
David Goldwyn, coordinator for international en- was ending the ceasefire and last month MEND
ergy affairs at the State Department. claimed responsibility for two bombings in Warri.
Washington has publicly urged Jonathan not Still, most analysts believe the amnesty re-
to reappoint the current head of Nigeria's Inde- mains salvageable, but that the government has to
pendent National Electoral Commission (INEC), act quickly to get it back on track.
Maurice Iwu, when his term ends in June. "Re-integration needs to be expedited," Di-
Although Jonathan noted in his remarks to mieari Von Kemedi, a key official in Bayelsa State
the Council that the perception that the Commis- who has worked on conflict mediation in the Delta
sion as presently constituted cannot conduct clean since 1997, said Tuesday at a presentation at the
elections was "more psychological than real", he Centre for Strategic and International Studies
added that "before the 2011 elections, there will (CSIS) here. He added that the next 18 months –
be a lot of changes in INEC (and) not just the chair- longer than Jonathan will remain in office – will be
man". critical in determining the amnesty's success or
U.S. officials, including Goldwyn, have been failure.
particularly concerned about the situation in the Jonathan, who grew up in the Delta and is a
Niger Delta, the source of Nigeria's oil for the member of the same Ijaw ethnic group that domi-
more than half a century. The petroleum pumped nates MEND, has endorsed the programme and
from the Delta currently constitutes as much as 40 stressed that follow-through by his government is
percent of Nigeria's gross domestic product (GDP) a top priority.
and about 75 percent of the government's income. "We have restructured the (programme's)
The endemic poverty and corruption of the management," he said Monday, "and we're trying
region, whose physical environment has also been to (former militants) this month."
devastated by oil leaks and gas flaring, have cre- But, he added, "It takes a lot of time to train
ated widespread discontent among the minority them, even for them to be in position to make a
groups who live there. living... So it's not something you can say you can
That discontent, which is compounded by the even complete in a four-year administration. But I
lack of jobs or economic opportunity in the region, can assure you that we've set up a solid base, and I
has spurred sometimes violent protests that in have a clear focus on the programme, with time-
recent years have taken the form of attacks - lines, (so) you'll see that we are progressing."
mostly by militants associated with the Movement
for the Emancipation of the Niger Delta (MEND) - Jim Lobe's blog on U.S. foreign policy can be read
on pipelines and other oil facilities, as well as the at
abduction of employees of foreign oil companies,
such as Royal Dutch Shell, Chevron, and Total, that
have long been active there.

148 Pan Africa & World Review 2nd Quarter 2010


Umaru Musa Yar'Adua 1951-2010 − the Last Trip Home

7 May 2010

H e was an unlikely choice

for president when he
was elected in 2007 to lead Af-
rica's most populous nation;
when he died last Wednesday
night, three months shy of his
59th birthday, Alhaji Umaru
Musa Yar'adua, had become
Nigeria's unlikely hero. In-
between both milestones, the
country vacillated from periods
of uncertainty to anxious hopes
for national stability.
Yar'adua made it clear from the day he took The late President Yar’Adua pictured at his inauguration in
2007 (NAN photo)
office in May 2007 that his was going to be a rule-
of-law administration. He elevated the due process
Committee, which made wide-ranging recommen-
principle to a national mantra. He not only pledged
dations, including changes in the process of ap-
to live by the principle, he led by example. He de-
pointing the head of the Independent National
clared his assets as required by law but went a step
Electoral Commission (INEC). The committee's re-
further to make it public, the first and only Nige-
port is currently before the National Assembly,
rian president to have done so.
which is debating it, along with proposed amend-
Yar'adua was aware of the infrastructure defi-
ments to the 1999 constitution of Nigeria.
cit that faced the country. His concerns were en-
Systematically, Yar'adua began to stamp his
capsulated in his administration's 7-point agenda
authority, beginning with election cases. Because
by which he said the nation would be transformed
he was able to create the environment for rule of
from its present status to one of the twenty lead-
law to prevail, unexpected upsets in the guberna-
ing economies by the year 2020. He was also
torial make up of some states were recorded. In
acutely aware that attaining that objective would
both Ondo and Edo states, where members of
be an uphill task, given the simmering militancy in
Yar'adua's own ruling Peoples Democratic Party
the Niger Delta region that was severely constrain-
(PDP) were governors, election petition tribunal's
ing crude oil production which is the country's
verdict upturning their elections were respected
main source of revenues.
and opposition candidates in the 2007 elections,
Governance issues were also a problem, with
were declared winners by the tribunal and sworn
electoral frauds at various level of the polity.
in as governors.
The challenges are daunting even for the
Under his presidency, extensive banking re-
healthiest of men yet the late President bore his
forms were introduced. In these reforms, spear-
duties and frail health with dignity. Acknowledging
headed by the Central Bank of Nigeria, the rot in
that even his own election as president was
the industry became apparent. Big and powerful
through a process that was flawed, Yar'adua
names in the industry found to have abused cus-
pledged to introduce reforms in the electoral sys-
tomer confidence and misused depositors' funds
tem to make it more transparent as to inspire con-
were axed; most of them are today being prose-
fidence in the process and outcome of elections. cuted for their role in various alleged scams of the
He made a brave attempt by setting up the industry.
Justice Muhammadu Lawal Uwais Electoral Reform
149 Pan Africa & World Review 2nd Quarter 2010

Sept. 24, 2007, Nigerian President Umaru Yar'Adua addresses the U.N. Climate Summit, at
United Nations headquarters, New York (Mary Altaffer / AP)

President Yar'adua took a bold step in approv- administration was emphasizing the rule of law,
ing a long-standing government plan to dredge the and no sacred cows in punishing those found to be
River Niger. A significant project with huge eco- corrupt, several members of his government were
nomic potentials for the country, the plan to ex- in fact involved in shady deals and evaded prosecu-
pand the river had been on the drawing boards of tion because of their perceived closeness to his
successive administrations since independence, presidency.
but no concrete steps were taken to advance it The failure of his administration to deliver on
forward. a pledge to increase the electricity generation to
Perhaps the most important legacy that 6000mw was particularly disappointing. After he
Yar'adua would be remembered by is his painstak- promised to declare a state of emergency in the
ing, dogged effort, despite numerous provocative power sector during his presidential electioneering
acts to sway him from his course, to bring peace to campaigns, the 6000mw pledge by the end of De-
the restive Niger Delta region. His dramatic an- cember 2009 was perhaps one of the most eagerly
nouncement offering government amnesty to all awaited developments by virtually every segment
militants who surrendered their arms and re- of the Nigerian society.
nounced violence looked like straw-grabbing. In the end, it was his deputy, the Vice Presi-
Indeed, with so many of the region's militants' dent Goodluck Jonathan, who had to apologise to
leaders talking at cross-purposes, it looked like the Nigerians for the failure to deliver on that. That
amnesty deal was in danger of unravelling even was because the previous month, November 2009,
before the amnesty window closed. Mercifully, it Yar'adua was suddenly flown to Saudi Arabia. Offi-
has held. As a result, Nigeria's oil exports have in- cials later announced that he suffered from acute
creased and the country currently attains the out- pericarditis, a heart condition. He was never seen
put quota allotted to it by the Organisation of Pe- in public until his death on Wednesday.
troleum Exporting Countries (OPEC). He won the presidential election in 2007 and
It is a mark of the success of that programme died about 3 weeks to the Third anniversary of his
that various groups that formally operated under Presidency. It may well be that history may con-
the Movement for the Emancipation of the Niger sider the late President as one of those leaders
Delta (MEND), have issued statements expressing who in spite of limiting circumstances did their
their regret at Yar'adua's demise and condolences best for their countries. For now we can only pray
to the government and members of Yar'adaua's for the repose of his soul.
family. Daily Trust
There were also disappointments. While the
150 Pan Africa & World Review 2nd Quarter 2010
Africa/Nigeria/ Presidency

President Yar’Adua Photo Gallery

President Yar’Adua and First Lady Dr. Turai with Indian Prime
Minister Manmohan Singh and wife Gursharan Kaur

Photo by George Osodi, / AP)

People’s Democratic Party presidential candidate Umaru Musa Yar’Adua

and his vice presidential running mate Goodluck Jonathan on the cam-
paign trail in 2007.

Top: Obasanjo, Jonathan and Yar’Adua; un-

NAN photos der: Nigerian military guard carrying late
president in state ceremony.

151 Pan Africa & World Review 2nd Quarter 2010

Africa/Nigeria/ Presidency

Two Nice Guys

Goodluck Jonathan and Umaru Musa Yar’Adua

Goodluck Jonathan: “I have lost not only a great boss, but also a true friend and a loving brother."

O utside, Nigeria is no doubt one of the most

misunderstood countries in the world; but
the historical fact that Nigerians have preferred
resentation of Nigerian national and African conti-
nental geostrategic interests.
Yar’Adua and Jonathan, like Balewa and Sha-
modest gentleman leaders provides a clue to the gari before them, were soft spoken yet deliberate
dominate character of Nigeria as a nation-society. leaders who projected Nigeria as a friendly, wise
Whatever our human failings, Nigerians idolize and proactive nation.
good character and that is not only why Nigerians Canadian Prime Minister Stephen Harper in
are typically religious but also leads us to favor eulogizing the late Yar’Adua described him as a
leaders who embody integrity, simplicity and no- man of peace, predicting that his role in advancing
bleness. Abubaker Tafewa Belewa, Shehu Shagari, regional peace and security and his contribution to
Umaru Musa Yar’Adua and Goodluck Jonathan, all advancing Nigeria’s leadership role in the interna-
democratic leaders in a country that has mostly tional community would be remembered. U.S. Sec-
been ruled by soldiers, were trusted to lead by Ni- retary of State Hilary Clinton accredited Yar’Adua
gerians because they possessed the qualities of with having labored to build strong democratic
character that we are inclined to idolize. institutions in Nigeria. Russian President Medvedev
Yar’Adua throughout his active presidency and said of the late Nigerian leader, "I knew President
Jonathan from the time he was given the reins of Yar'Adua as a great friend of Russia, a staunch sup-
power as acting president, both projected a fine porter of cooperation between our nations, who
image of Nigeria’s leadership to the international did his best for broadening and deepening the Ni-
community. Yar’Adua had been invited as special gerian-Russian ties."
guest at the January 21, 2009 inauguration of U.S. German President Horst Köhler noted,
President Barack Obama, and Goodluck Jonathan "President Yar'Adua always sought ways to fulfill
as Acting President representing Nigeria in the 47 his responsibility for peace and security in his
nation Washington Summit on Nuclear Security country and in the African continent." "This com-
was invited for private talks by the U.S. President. mitment became apparent particularly during the
Historically, beginning with Sir Abubaker Ta- fourth Africa Forum held in Abuja in November
fewa Belewa, all of Nigeria’s democratically elected 2008, which we both co-chaired. In Yar'Adua's
leaders have enjoyed a wealth of goodwill and at- death, Germany has lost a partner who showed
tention internationally and have followed the na- distinct interest in relation with the European na-
tions coveted tradition of sober and congenial rep- tion," Koehler added.

152 Pan Africa & World Review 2nd Quarter 2010


Kaduna Governor Namadi Sambo new VP


Nigeria's Vice President Namadi Sambo (R) takes the oath of office in the presence of the chief justice of the
federation, Katsina Alu, at the presidential villa in the capital Abuja May 19, 2010. With his swearing in Nige-
ria's Kaduna state Governor Sambo filled the last major federal vacancy since President Goodluck Jonathan suc-
ceeded the late President Umaru Musa Yar’Adua two weeks earlier. Picture taken May 19 by Reuters

N igerian President Goodluck Jonathan on

May 13 announced his choice of Kaduna
State Governor Namadi Sambo as his vice presi-
Apart from the period 1988 to 1990 when he
was Kaduna State Commissioner for Works, Trans-
port & Housing, Vice President Sambo maintained
dent. Jonathan, a former governor of Bayelsa a private sector architecture practice, becoming
State, had been asked by the governors in a one of Nigeria’s most prominent architects. He
meeting to choose one of them and he affirmed also owns three companies.
that is what he had in mind. The governors then He became Kaduna State Governor in May
met among themselves and returned to him pre- 2007 with an 11 point socio-economic develop-
senting Kaduna’s Governor Sambo as their ment agenda that included empowerment of
choice, which the President accepted. It can be youth and women. According to the BBC May 18
recalled that the late President Yar’Adua and report on VP Sambo he had not yet succeeded in
Jonathan as his vice presidential candidate for implementing his agenda in health and education
People’s Democratic Party benefitted from for- facilities, water supply and roads. However, he
mer President Olusegun Obasanjo’s idea that the was credited with having significantly improved
next president should be the most outstanding of security in Kaduna. His Operation Yaki task force
Nigeria’s 36 governors. brought together the police, military and other
Namadi Sambo, born in 1952, is a 1976 ar- security entities to combat crime.
chitecture graduate from Ahmadu Bello Univer- Vice President Sambo is now holding his first
sity, Zaria, and was awarded a M. Sc. in 1978. His national political post, after only two years as Ka-
National Youth Service Corp assignment was at duna’s executive governor, his first political office
Oyo State’s Ministry of Works & Housing. at state level.
153 Pan Africa & World Review 2nd Quarter 2010
Africa/Nigeria/Voice from the People

WxtÜ _xtwxÜá Éy a|zxÜ|t

By Nosarieme Garrick

Dear leaders of Nigeria,

I am a citizen of Nigeria holding a green card in

the US. I left in 1998, after the death of Nige-
rian Dictator Sani Abacha, along with several
others. After growing up in Nigeria, and watch-
ing others leave to pursue an education, it just
seemed like the thing to do if you could afford
it. Some entire families relocated to the UK,
the US and other countries; other families sent your children. This could prepare them for a uni-
their kids alone to foreign school, for a chance versity education, or vocational training– not
at a better education. It’s now 2010, and some everyone needs or wants to go to university.
of us are itching to come back. I don’t think any Overseas we're taught that you can't get any-
of us were ever comfortable with the idea of where without a bachelor's degree, a lot of peo-
abandoning our country. ple have been the exception to the rule, but I'm
I'm not sure how much longer I want to glad I had the option to get a bachelor’s. Maybe
live abroad. After all, I would like my future we could provide that option for people back
kids to know where their mother's from, even home by putting more money into the university
possibly go to school there. However, all the system. Once we start to believe in our educa-
brouhaha that has been stirred up in the news tion in Nigeria, I doubt that people will feel the
these past few months makes the country need to send their kids to the UK or the US for
seem even more unappealing, than it was school.
when it sent us in droves to foreign lands. I've You should think about consulting once
kept in contact with some of the children in the more with Dr. Ngozi Okonjo-Iweala. Remember,
Diaspora, and we've all discussed coming back she used to be your former Minister of Finance?
home, but you keep giving us reasons to stay She’s now the Managing Director of the World
where we are. I hear you would like us to come Bank. According to The Punch Nigeria, she made
back, but you've lost our faith, we don't be- this statement at the Institute of Directors con-
lieve in our government. Fear not, we are will- ference in Lagos: ”One of the untapped growth
ing to work it out, it is our home, and so we’re drivers is Nigeria‘s youth. The time has come for
ready to help you help us come back. Here are us to focus on them and reap enormous devel-
some suggestions of ways for you to make us opment benefits or ignore them to the nation‘s
consider the idea. peril.” See, she believes in our potential, don't
Our obvious reason for leaving was to get let another country make use of us. Even Can-
a better education, which is unfortunate be- ada has been trying to lure us to their schools,
cause at Nigeria's independence we had the they value our billions of dollars that we are
highest number of university graduates in Af- ready to pay for a proper education. That
rica. The crumbling education system has con- money could go to Nigeria.
tributed to the increased crime rate; being that
our brothers and sisters back home, have very Nosarieme Garrick, 25 year old daughter of
limited options. Maybe you could reconsider former Nigerian government employees.
the budget cuts you made on education, and
look into the proper training for teachers, in
order for them to provide proper education for
154 Pan Africa & World Review 2nd Quarter 2010
Africa/South Africa/Economy

Strategic Plan Update 2010-2013


n April 14th the Standing Finance Commit-

O tee of South Africa’s National Treasury,
which is part of the Ministry of Finance, pre-
sented its Strategic Plan update covering the pe-
riod 2010-2013. While the presentation gave no
more than a very generalized overview and duly
conveyed the sobriety of South Africa’s national
planning establishment, the low growth pro-
jected and concern about wage pressures in-
creasing the anticipated well contained budget
deficit indicate that poverty reduction progress
will at best be modest. South Africa’s Finance Minister Pravin Gordhan, formerly
Assurance was given in the presentation that chairperson of the World Customs Organization and chair-
the National Treasury would work within the person of the Organization for Economic Development
identified priorities in delivering its mandate, (OECD) Forum on Tax Administration
which first and foremost is to promote fiscal pol-
icy framework and coordinate macroeconomic • Increasing access for private investment and par-
policy. ticipation in critical input markets
• Raising savings and investment through respon-
Factors revised to warrant this update were sible fiscal management
identified as:
• Planning Targets, Objectives and Facilitating Factors:
• Outcomes • Economy expected to grow by 2.3% this year
• Monitoring rising to 3.2% in 2011
• Integrated service delivery • Better inflation outcomes in line with the target
Government priorities identified therein were: • Global demand and trade volumes picking up
• Improving the quality of education • More stable employment and sectoral growth
• Enhancing the health of our people outcomes
• Making our communities safer • Current account deficit has moderated… ex-
• Fostering rural development pected 4.9% of GDP in 2010 compared to 7.1% in
• Creating jobs; and 2008
• Investing in local government and human set- • Sterling efforts of SARS resulted in an out-
tlements standing target overshoot of R8 billion – bringing
down the budget deficit to 6.8% of GDP
Key microeconomic reforms to support growth • Sustained public infrastructure investment over
• Support labour-intensive industries through the MTEF of R845 billion
industrial policy • Agreement in government regarding job creation
• Investment in and improved maintenance of and the need to transform the economy
network industries
• Raising productivity and competitiveness by
reducing regulatory hurdles and red tape
155 Pan Africa & World Review 2nd Quarter 2010
Africa/South Africa/ Banking & Finance

South African banking confidence recovers

Sapa, April 14, 2010

S outh African banking confidence rose

strongly in the first quarter of 2010 as the
country's banks experienced a turnaround in
their financial fundamentals and an easing of
their profit contraction, according to a survey by
Ernst & Young.
The survey, published on Monday (April
12), found that although banking profits contin-
ued to fall in the first quarter of 2010, they had
recovered considerably from their low levels of
2009, and that banking confidence had im-
proved from 24 index points in the fourth quar-
ter to 45 currently.
"Banks have undoubtedly recovered from
the global liquidity crisis," said Emilio Pera, lead
banking and capital markets director at Ernst &
Young. "Although their profits continue to
shrink, there is nevertheless a turnaround in
their financial fundamentals."
In addition, the rate of profit contraction
had abated, particularly for investment banks.

Impairment losses recede

Pera said that firstly, trends in credit losses and
credit impairments had gradually improved af- South African Reserve Bank Building, Pretoria
ter peaking in the second quarter of 2009.
"Both retail and investment banks are ex- Revenue recovering
periencing lower levels of impairments on their Secondly, both interest and non-interest reve-
balance sheets, and this follows through to the nue was gradually recovering from a very weak
income statement." 2009.
During the recent banking results reporting Investment banks were particularly chal-
season, individual banks mostly spoke of a year lenged in the fourth quarter of 2009, with inter-
of two halves - where essentially the first half est and non-interest revenue shrinking, he said.
was characterized by shrinking credit demand "The global liquidity crisis resulted in
and rising impairments. sharply reduced capital availability across global
"This changed considerably in the second financial markets. As a result, there was sub-
half, with impairment losses starting to recede stantially slower activity across most areas of
from peak levels, thereby generating relief to investment banking," Pera said.
operating cost growth," Pera said. All of private equity; corporate finance;
Overall, the slower impairment ratios were project finance, and specialised finance experi-
supporting easier credit standards. enced considerably slower volumes through
Retail banks particularly had eased their 2009, and into the first quarter of this year.
credit lending criteria, supported by lower inter- Retail banks, on the other hand, experienced
est rates and slowly improving household in- sharply reduced fee income growth only in the
debtedness levels, he said. last quarter of 2009, although it subsequently
recovered in the first quarter of 2010.

156 Pan Africa & World Review 2nd Quarter 2010

Africa/South Africa/ Banking & Finance SA banking confidence recovers
"To a large extent, retail banks relied on price
adjustments to offset weaker volumes of transac- JSE All Shares Index as of June 30, 2010
tions and declining fees stemming from lower lev- 27148.91
els of new credit agreements," Pera said. JSE Capitalization as of July 2, 2010:
"This kept fee income relatively strong R5,641.7bn
through most of 2009, but by the fourth quarter, Approximately $740.380 billion
non-interest revenue growth was feeling the strain
of indebted households," he said. Source JSE Equity Market Statistics

Expectations of a turnaround JSE off worst on bargain

Retail banks expectations of a turnaround in the
second quarter of 2010 were supported by the hunting
recently released consumer confidence surveys,
June 30, 2010
which indicated rising consumer confidence.
In addition, retail sales trends continued to im-
prove, albeit still negative, down 1.7 percent year- Johannesburg - Cheerier European markets and
on-year in January, from -6.6 percent in November hopes that the US will follow suit later in the day
2009. have ushered local counters well off their worst
Other survey findings included that retail levels of the day on Wednesday.
banks continued to shed jobs, as they right-sized At 12:02 local time the JSE all share index had
their organizations in an era of slower credit de- pulled off early morning losses of close to 100
mand. points to a loss of 23 points, or -0.09%.
Investment banks, by contrast, continued hir- Gold miners were up 0.88% and platinum
ing through the second half of 2009, despite lower counters by 1.04%. The resources index lost
business volumes and weaker profits. 0.05%, while banks were unchanged and financials
It was also found that banks' confidence lev- off by 0.05%. Industrials were down by 0.19%.
els remained significantly below the long-term The rand was bid at R7.61 to the dollar, from
average level of 80 index points. R7.62 at the JSE's last close. Gold was quoted at
Pera said investment income was slowly re- $1 244.80 a troy ounce from $1 234.90/oz at the
covering from a weak 2009, and was expected to JSE's previous close, while platinum was at
return to positive territory for both retail and in- $1,543.00/oz from $1 543.50/oz at the JSE's last
vestment banks in the second quarter of 2010. close.
"Expectations are that income levels will re- A local equities dealer said that while the pic-
cover sharply in the second quarter of 2010 ... ture remained a little mixed, with Dow futures
both retail and investment banks expect rising trying to gain ground, but Asia and the Dow down,
credit demand to feed into positive net interest there were signs of interest emerging.
income growth, a situation they have not experi- A decidedly negative global backdrop had led
enced since the second half of 2008." to local counters free-falling close to 600 points on
This in turn, was likely to lead to a gradual Tuesday. The Dow Jones Industrial Average posted
revival in profits growth, with investment banking its second-lowest close this year and its biggest
profits starting to rise again, while the rate of re- one-day drop since June 4. The Nasdaq Composite
tail banking profit contraction improved. recorded its lowest close since February 8 and its
"Failing another globally influenced crisis, biggest one-day drop since May 20, and the Stan-
banks are poised to benefit from a lower interest dard & Poor's 500 saw its lowest close since Octo-
rate environment, which will further stimulate a ber 30.
turnaround in credit demand." But Simon Denham at Capital Spreads told
He said local banks had sufficient capital re- Dow Jones Newswires on Wednesday that London
serves to favourably respond to growing credit equities were nudging a tad higher with the bulls
needs, given their improving impairment ratios, looking to pick up cheaper stocks after Tuesday's
and profit prospects. slump. The FTSE was last up 37 points at 4,951.
Sapa A couple of SA stocks reflected this trend as
they managed to turn around on Wednesday.

157 Pan Africa & World Review 2nd Quarter 2010

Africa/South Africa

Eugene Terreblanche

E ugene Terreblanche, co-founder and

leader of the Afrikaner Weerstands-
beweging (AWB), which seeks to have an all
white republic in South Africa, died on April 13th
from a bludgeon beating. A 28 year old man and
a 15 year old boy were arrested in connection
with the killing. According to attorney Puno
Moroko his client Chris Mahlangu, 28, worked
for Terreblanche who had treated him badly
and once throttled him. Attorney Moroko said
he would not in his defense use claims that
there was a physical relationship between Mah- Eugene Terreblanche founded and led the movement to
langu and Terreblanche and AWB secretary gen- establish a separate white state within South Africa’s terri-
eral Andre Visagie said he would not comment tory
on claims that Terreblanche died in a drunken
sex session because they were absurd. Accord- you offer your condolences to us when you
ing to police, it appeared a wage dispute led to could’ve repudiated Mr. Malema and prevented
the fatal assault on Terreblanche by the two the death of Mr. Terreblanche?’”
fellows who were charged with murder. ANC Youth League leader Juluis Malema
The 15 year old boy’s mother told AP tele- was drawn into the matter because he has re-
vision that when she spoke to her son at the fused to adhere to the South African High Court
Ventersdorp police station he admitted striking ban on singing an anti-apartheid era song that
Terreblanche with an iron rod and killing him. contains an exhortation to kill the Boer (White
She said her son was provoked by Terre- South Africans of Dutch descent) farmers. Presi-
blanche’s refusal to pay him for work done. dent Zuma stepped into the controversy sur-
Under South African law a minor involved in a rounding Malema in the premises by ordering
criminal case should not have either his name or that the High Court ban on the song in question
picture released to the public. should be respected.
Visagie called Terreblanche’s murder a dec- Lawrence Schlemmer, vice president of the
laration of war by South Africa’s Black commu- Institute for Race Relations, said he believes
nity against its White community and vowed to Terreblanche’s murder was a personal matter
avenge the death, despite the two suspects hav- and would have little political impact. “Eugene
ing been arrested and charged. Visagie urged Terreblanche has become an increasingly mar-
football teams to stay away from the World Cup ginal figure,” he said, adding, “I think it’s a per-
scheduled to open in South Africa on June 11th, sonal tragedy more than anything else. I don’t
saying the country would not be safe. He think there’s any political significance, although
claimed to have received hundreds of phone I suppose there will be a measure of sympathy
calls from White South Africans wishing to join because of the individual circumstances. He had
AWB in the wake of Terreblanche’s murder. a rough life and this is a rough ending.”
President Jacob Zuma called for calm and Eugene Terreblanche’s brother Andries,
asked that people refrain from making inflam- speaking to AP, gave the world a view of the
matory political statements. President Zuma AWB lot’s self perception: “We are not racists,
also gave his condolences to Terreblanche’s kin, we just believe in race purity.”
but Visagie responded with a rebuke: “My mes- Literally Terreblanche means white earth,
sage to Jacob Zuma is, ‘Why Mr. President, do or short slogan form for the white man’s earth.

158 Pan Africa & World Review 2nd Quarter 2010

Africa/South Africa

Terreblanche, Malema and

South Africa’s Dilemma
By Muhammed Kamil

I n a world where those in the job market can

access a list of the best and worst companies to
work for, being so disadvantaged that one has to
rely on the likes of Eugene Terreblanche for em-
ployment reminds the world that the legacy of
apartheid, the most inhumane socio-political sys-
tem in modern times, is still very much with us.
Employees on a farm that doesn’t have an adminis-
trative and financial management system, who go
directly to the proprietor for their wages, are for all
intents and purposes domestic servants. The
scenes of the farm, the house, the room and the
police described setting (a half naked corpse with
seaman on his private parts) where white suprema-
cist leader Eugene Terreblanche lost his life at the
hands of employees said by their attorney to have
Nelson Mandela upon becoming South Africa’s president
been seeking their wages raises in our minds a host
in 1994 introduced the non-racial rainbow society phi-
of questions about South Africa and why it has yet
losophy, launching the most ambitious social revolution
to achieve sustained double digit Gross Domestic in modern times
Product growth, like the much less endowed Asian
tigers did in the 1990s– despite the great potential school honing ambition to become a world class
of the country often referred to as Africa’s eco- professional or global business tycoon is left in a
nomic powerhouse. social situation where he has to work for pittances
When we talk of poverty eradication we must on the farm of a notorious white supremacist is an
have in mind that the lowest economic class in so- imposing challenge to South Africa’s leadership in
ciety will be the lower middle class. Farmers in all categories−political, entrepreneurial, academic ,
South Africa, whether black or white, whose work- technological and scientific, social scientists and
ers are in their conditions of employment domestic what have we. It is loudly ringing an alarm that
servants cannot contribute to realization of this South Africa must take this incident as an immedi-
goal. This is true for all of Africa and no doubt for ate challenge to advance from Black economic em-
the entire Global South. Yet, given its technological powerment mode and make “all in the middle class
assets, infrastructure, first class financial sector and or above by 2020” the national call to action. South
model socio-political aspirations– the achievement Africa’s current governing coalition having a Com-
of a non-racial rainbow, equitable society − which munist background, should be able to appreciate
have been enshrined into law and promoted by the the concept of equity capitalism. In a big business
country’s institutions, South Africa is expected to society like South Africa banks should have stock
be an exception. The legacy of apartheid wherein purchase financing programs accessible to wage
the majority of the country’s population suffers in and salary earners.
dire poverty is in this situation supposed to inspire I advise President Zuma to start sensitizing his
new thinking, daring approaches, revolutionary compatriots to the necessity of taking up the chal-
innovations. No doubt, if South Africa is to achieve lenge of making South Africa a country built on a
its lofty socio-political vision, it must modernize its middle class base and to promote the idea of a na-
economy second to none on the planet. tional vision and planning exercise to come up with
That 20 years after the official demise of a bold strategy to reach this arduous but vital
apartheid a 15 year old boy who should be in goal….if South Africa is to stay on coarse in building
159 Pan Africa & World Review 2nd Quarter 2010
Africa/South Africa Terreblanche, Malema and South Africa’s Dilemma
a non-racial society and not get thrown into chaos ment profile, in the conciliatory sphere, and its
by those radicalizing the popular discontent. Giv- heedless Youth League under Julius Malema, in
ing a country where mining and commercial farm- the radical camp, cannot be simply attributed to
ing are major economic activities and employers a the common impulsiveness of the youth com-
lower middle class base is a tremendous challenge, pared to their elders. In this digital information
but the Terreblanche syndrome and its sordid so- age when the younger generation elite are typi-
cial consequences is only one of the clear indica- cally better informed and better understand the
tors that South Africa’s economy needs to more workings of global markets and technological
substantially modernize and attain and sustain eq- possibilities than their elders, Malema and the
uitably spread double digit GDP growth if poverty ANC Youth League he leads appear like agitation
is to be eradicated by 2020. oriented political dinosaurs from the 1960s.
ANC Youth League leader Julius Malema The ANC Youth League is world known for
comes immediately to mind here. Malema is both the vital role it played in getting Jacob Zuma in
the right and the wrong man in the right and the president’s seat; but under the circum-
wrong place at the same time. It is unimaginable stances the question arises: morally, where does
that there wouldn’t be a Julius Malema in South Zuma’s debt lie, to support them politically or to
Africa at this time; he is a natural political product invest in the development of the Youth League’s
of the society. The danger he represents is that of human resource and institutional development?
leaving so many Black South Africans below the We should, I believe, all agree with UN Under-
middle class; and in that he is a realistic barometer secretary General and Executive Director for UN-
of the risk of failure South Africa faces in endeavor- Habitat Prof. Anna Tibaijuka’s advice to the early
ing a model society. If those who at his last birth- May World Economic Forum on Africa that the
day party were calling for him to be South Africa’s best way to invest in young people is to provide
next president get their wish South Africa one can them with proper education and skills, but we
imagine would be where Malema’s apparent hero don’t see the leader of ANC’s Youth League re-
Robert Mugabe has brought Zimbabwe; and if pov- flecting this. The intellectual capacity gap be-
erty eradication in South Africa is not dramatically tween the ANC Youth League and the South Afri-
accelerated in short order, no one should be sur- can Congress of Trade Unions (COSATU), an-
prised if Malema’s uncouth radicalism continues to other member of the ANC governing, alliance is
propel his political fortunes. We might not believe glaring. COSATU challenges Zuma and his cabi-
someone with Malema’s style will ever lead South net with studies and reports developed in-
Africa. Nonetheless, it is a political logic proposi- house. Malema has been advocating nationaliza-
tion that radicalism invariably has its roots in socio- tion of South Africa’s mines, but despite the
economic and, or political conditions; and for any wealth of experience Africa has had in nationali-
polity to keep its balance it must be effectively at- zation and privatization of mines, we don’t see
tentive to removing the root causes of radicalism. Malema waving and quoting from an ANC Youth
Indeed, from what we know of ANC political League study on the matter. From all appear-
culture and from what President Zuma has said, ances the depth of Malema’s intellectual arsenal
Malema is outside the box, but like that 15 year old is old fashion agitation. That is not fitting for a
boy accused of murdering Eugene Terreblanche he complex country with complex issues like South
is a victim of circumstances that he was perforce Africa.
acculturated into, which he had no part in bringing Looking at Malema from the perspective of
about. Malema was a child not yet ten years old the generation that dominates the higher ranks
when Nelson Mandela finally left Robin Island; he of ANC, this young unpolished politician is for
represents the first generation of post-apartheid better or worse our son, no less than that 15
South African youth to reach adulthood and signifi- year old boy accused of killing Eugene Terre-
cantly he is the youth league leader of a party that blanche, no less than the entire youth of South
not only exemplified African political maturity and Africa and the continent at large. We cannot
sophistication during the years of anti-apartheid leave them to be victims of the digital divide.
struggle, but has set for itself the highest ideals to The only realistic, progressive and humane
ever be introduced into modern civilization. The vision for Africa is a continent with a middle
ideological and style gap between ANC with its class socio-economic base and South Africa is
sensitivity to South Africa’s markets and invest- obviously best positioned to lead the way in this
160 Pan Africa & World Review 2nd Quarter 2010
Africa/South Africa Terreblanche, Malema and South Africa’s Dilemma
continental quest. Julius Malema boasts that by
living in Sandton he exemplifies the aspirations of
South Africa’s youth but being middle class is not
simply having the qualifying material resources at
one’s disposal; besides the economics, there is a
social dimension that entails good education,
skilled or professional talent and contribution to
the socio-economic development of society, in tan-
dem with refined socialization.
With a population of 50 million and
[purchasing power parity] per capita income of
$10,000, South Africa ranks as a middle income
country, but it is also known to be one of the
world’s most unequal societies. Endeavoring to
create an equitable society is not a matter of tak-
Johannesburg’s Park Station train terminal (above) and other
ing from the rich and giving to the poor, but rather
infrastructure reflect South Africa’s middle income nation
increasing the wealth of the rich in a sustainable status, but this is contrasted by some of the world’s most de-
way by establishing a middle class purchasing grading living conditions
power and socialization base for the country. This
does of course mean that the income of the lower $3.13m in loans for youth
classes must increase more rapidly than that of the development
upper class, which is the only way sustained double
14 May 2010
digit national income growth can be achieved.
South Africa is already one of the newly industrial-
South African's National Youth Development
izing countries (NIC); it has a world class financial
Agency disbursed 7,500 micro-loans to the value
sector and is also a world class player in certain
of R23-million in its first year of existence, Moni-
technology fields. Yet South Africa’s persistent sub-
toring and Evaluation Minister Collins Chabane
6% GDP growth does not admit it into the ranks of
said on Wednesday.
dynamic economies.
Addressing the National Assembly in Cape
President Zuma has expressed dissatisfaction
Town, Chabane said the agency had disbursed a
at the rate socio-economic progress is being made
further R3-million in loans to small and medium
in his country and no doubt he realizes that conser-
enterprises, and had issued 4 244 business consul-
vatism of the comfortable upper class is slowing
tancy vouchers worth more than R33-million.
the country’s pace. The last thing this type of situa-
Chabane said the agency needed more
tion needs is Malema’s brand of racial agitation,
money, but had begun to supplement its govern-
because that only provokes conservative and re-
ment funding of R369.9-million for the 2010/11
gressive backlash; rather, what is required is a na-
fiscal year via partnerships with other organiza-
tional campaign rationalizing the advantages that
manifold increase in the national purchasing power
"The budget allocated to the NYDA is inade-
and consumption capacity, in tandem with middle
quate," Chabane said. "If this institution has to
class socialization, will have for everyone.
fulfill its mandate, more resources need to be al-
In a nutshell, the most promising socio- eco-
located to it.
nomic progress route for South Africa is one where
"However, the NYDA recognizes that not all
both the rich and poor get richer, though in the
its funding should come from the government. As
medium term when poverty is being eradicated the
such, the organization has made strides by enter-
poor leap forward dramatically. Once a solid mid-
ing into partnerships with some of the country's
dle class socio-economic base is established and
smallest and biggest organizations, both public
there is a fair opportunity field, talent and capabil-
and private, for youth development purposes."
ity invariably result in competitive creativity and
The National Youth Development Agency was
innovation, upward mobility and extension of
formed in 2009 from the merger of the former
South African capital and talent into other African
National Youth Commission and Umsobomvu
and global markets.
161 Pan Africa & World Review 2nd Quarter 2010
Africa/South Africa/Social Development

South Africa to spend $2.15bn on housing

23 April 2010
The government is to spend R16-billion on building
new houses and sustainable human settlements
for poor South Africans in 2010/11, says Human
Settlements Minister Tokyo Sexwale, noting that
South Africa's housing delivery record is second
only to that of China.
"The bulk of this funding will go to the provi-
sion of housing subsidies to the bottom-most end
of the market - the poorest of the poor, who earn
[up to] R3,500 a month," Human Settlements Min-
ister Tokyo Sexwale said during his budget vote
speech to Parliament in Cape Town this week. Cape Town township new houses (right) and old dwellings
"A large percentage of this is allocated to (left) From 2007 through 2009 South Africa’s Department
provinces in the form of Housing Development of Human Settlements delivered 488,383 new housing
grants," he added. units
Sexwale pointed out that there were currently
8 ,000 human settlement projects underway across factory and office workers.
the country, and that 219, 000 housing units had "We emphasized to the institutions that in
been built by the government in the last financial putting the floor under their operations in this gap
year. market, financial prudency should remain para-
"Irrespective of what sceptics may say, the mount. In no way can there be recklessness in
record of this government on housing delivery lending practices which may lead to flippant calls
speaks for itself. Since 1994, more than 2.3-million upon the Guarantee Fund."
housing units have been made available for nearly Sexwale also advised potential beneficiaries of
11-million people. The scale of government hous- the fund to "exercise responsibility" by adhering to
ing delivery is second only to China." the terms and conditions of their credit agree-
Government Guarantee Fund
Sexwale met with the financial sector earlier this Monitoring complaince
week to discuss ways of increasing funding to both Sexwale also pointed out that he had raised con-
the low-cost and affordable housing markets, cerns with the financial institutions over their com-
which could increase the number of houses built pliance with the Home Loans and Mortgage Disclo-
by government and private sector. sure Act (HLAMDA), which requires banks to report
At that meeting, the Banking Association of on their lending patterns.
South Africa cited the fact that the success of the "The ministry will play an activist role in moni-
government's low-cost housing programme was toring this activity by the banks, in the interests of
"unparalleled". regulating the homeowners’ property market,
"We came away satisfied at the positive out- whilst being alive to the complexity and sensitivity
comes, and agreed to form a joint working team to of the operations of financial institutions," he said.
look into various aspects of housing finance - nota-
bly how to generate innovative ideas around the Source: BuaNews
R1-billion Government Guarantee Fund that is be-
ing set up to assist the 'gap market'," Sexwale said.
"Those who stand to benefit from such a fi-
nancial platform include inter alia nurses, teachers,
police, prison warders, government officials, cer-
tain categories of management, and blue collar
162 Pan Africa & World Review 2nd Quarter 2010
Africa/South Africa /Presidency

President Zuma’s India Visit


W hen South Africa's then Deputy

President Phumzile Mlambo-
Ngcuka was in India at the head of a
trade delegation during September
2006, she remarked that the bond be-
tween the two countries’ was like that
of cousins. The June (2-4) 2010 timing
of President Zuma’s first visit to India
coincided with the 150th anniversary
of Indians’ arrival of in South Africa, (left to right) India’s Prime Minister Manmohan Singh, Presi-
home to the largest Indian Diaspora. Nearly 1.5 dent Jacob Zuma and his wife Nompumelelo Ntuli Zuma and
million persons of Indian origin constitute two and the Prime Minister’s wife Gursharan Kaur, in Delhi.
a half per cent of the South African population. In
addition to Finance Minister and veteran ANC stal- and Tata Group boss Ratan Tata. Apart from en-
wart Pravin Gordhan, there are 3 deputy ministers thusiasm for expanding two way investment flows,
of Indian origin, as well as 25 Indian descent mem- the vision from both sides is to push two-way
bers in South Africa’s 400-seat Parliament. trade up from $7.5 billion in 2008-2009 to $12 bil-
President Zuma, making the official visit with lion in 2012. In 2002 South Africa-India bilateral
8 cabinet ministers, set the tone of solidarity with trade was $2.5 billion. The first substantive meet-
Indians by staying in Mumbai’s recently reopened ing of the CEO Forum is scheduled for August this
Taj Mahal Palace and Tower Hotel that was year in South Africa, during which time an Indian
wrecked by terrorists on November 26, 2008. Sig- businesses exhibit is also scheduled.
nificantly, Taj Mahal opened a luxury hotel in Cape South Africa, which has become the largest
Town earlier this year. external investor in Africa, has about $77 million
Beyond the statistics, symbolism and ges- worth of investments in India. SABmiller, one of
tures, the Indians were quite happy with President the world’s largest brewers, has around a third of
Zuma. Indian commentator Vikram Doctor wrote the Indian beer market after it bought India’s Na-
that Indians could not help but be charmed by the rang breweries in 2000. Airports Company SA
warm greetings and the flattering way he talked (Acsa) and Bidvest group were part of a consor-
about the long standing ties between South Africa tium led by Indian infrastructure company GVK
and India. Vikram also noted that South Africa was that won the contract to modernize Mumbai Inter-
the new favorite vacation place for India’s Bolly- national Airport in 2006. South Africa’s 200 strong
wood stars. business delegation accompanying Zuma was
Romanticizing the relationship between the composed of diverse sectors, including mining,
two countries was sweetener for bilateral coop- energy, health, pharmaceuticals, information tech-
eration events and talks. With a host of top South nology, hospitality and financial services. South
Africa CEO’s accompanying him President Zuma Africa’s News Café, a chain of premium cocktail
together with India’s Commerce Minister Anand bars, plans to invest over $20 million in India in
Sharma re-launched the India-South Africa Chief the next five years to open 20 outlets. Its first
Executives Forum, now to be co-chaired by Afri- overseas bar is inside a mall on a Mumbai road
canRainbow Minerals Chairman Patrice Motsepe named after Nelson Mandela.

163 Pan Africa & World Review 2nd Quarter 2010

Africa/South Africa /Presidency President Zuma’s India Visit
South Africa’s $276 billion GDP
($3,764 nominal per capita/$10,119
PPP per capita) is less than a quarter of
India’s $1.217 trillion GDP ($718 per
capita/$2,946 PPP per capita) and the
disparity is well reflected in India’s
substantial investment in South Africa.
Vishnu Prakash, spokesperson for In-
dia’s ministry of external affairs said
ahead of Zuma’s visit that the largest
Indian companies operating in South
Africa are in the process of investing
around $3.5 billion in diverse sectors.
The Tata and Mahindra groups already
have a presence in the automobile sec-
tor in Africa’s biggest economy. Nearly
100 Indian companies have set up shop in South Co-Chairs of the India-South Africa CEOs Forum Patrice Mot-
Africa. “South Africa is seen by Indian compa- sepe chairman of African Rainbow Minerals and Ratam Tata
nies as a spring board into the African conti- CEO of India’s premiere auto industry company Tata Motors
at the forum’s re-launching on June 2nd in Mumbai
nent. Our two-way trade with Africa is witness-
ing an exponential growth,” said an official with
the Confederation of Indian Industry (CII). and economic issues. They confirmed that the
Anant Singh, a South Africa of Indian roots 8th Session of the JMC will take place in Delhi
who was in the delegation led by President before the end of 2010, by which time both
Zuma to India was upbeat about the prospects sides are expected to evaluate the implementa-
for telecommunications, media and film indus- tion of bilateral agreements and decisions taken
try collaboration between South Africa and In- during the State Visit.
dia, saying, "There is a great deal of interest in Regarding economic cooperation, the lead-
the ICT (information and communication tech- ers underlined the need to utilize their respec-
nology), media and entertainment sectors from tive strengths to mutual advantage through
Indian companies. It is promising that they have greater cooperation between their business
displayed a keen interest to work in South Af- entities in sectors such as infrastructure and
rica." Indian film production companies have manufacturing, energy, mines and minerals, oil
indicated that they would like to shoot at the and natural gas, banking and financial services,
new Cape Town Film Studios scheduled to open tourism, pharmaceuticals, automobiles and
in October this year. Singh's company VideoVi- auto components, textiles and garments, fertil-
sion has a major stake in the new studios, which izers, information technology, small and me-
are also expected to further motivate Bolly- dium enterprises and forestry-based produce.
wood producers who have taken the coastal city Coming to geopolitics, the two leaders
as a popular shooting venue in recent years. agreed on the need for United Nations struc-
Singh anticipates collaboration in high-tech ani- tural reform, specifically stressing expansion of
mation films, features and documentaries. both permanent and non-permanent Security
President Zuma’s talks with Prime Minister Council member states. They were of the same
Manmohan Singh at Hyderabad House in New mind regarding the obsolescence of the UN
Delhi covered a wide range of issues. They dis- power structure adopted in the 1940s. This mat-
cussed trade and investment and stressed bilat- ter was also taken up in Brasilia during April at
eral cooperation within the framework of the the India-Brazil-South Africa (IBSA) Summit
Joint Ministerial Commission. The leaders reaf- when Zuma and Singh met with President Lula
firmed the importance of strengthening rela- Da Silva.
tions under the aegis of the India-South Africa In the regional context, President Zuma
Joint Ministerial Commission (JMC) which af- affirmed the importance of India as a partner
fords both sides an opportunity to address a ofthe African Union in the consolidation of
range of bilateral, as well as multilateral political peace and stability in the continent, through its
164 Pan Africa & World Review 2nd Quarter 2010
Africa/South Africa /Presidency President Zuma’s India Visit
contributions to peacekeeping, and as a
partner in the development of Africa through its
support for the objectives of the New Partner-
ship for Africa's Development (NEPAD).
In recalling the defining documents of the
South Africa–India relationship, the Red Fort
Declaration of 1996, the Joint Declaration of
2003 and the Tshwane Declaration of 2006, and
expressing satisfaction with the progress that
had taken place, the two leaders welcomed the
continued interaction between India and South
Africa at the highest political levels. The two
sides in Delhi signed an Air Services Agreement,
a memorandum of understanding (MOU) on
cooperation in the field of agriculture and allied
sectors and a MOU between the Diplomatic
Academy of International Relations & Coopera-
tion of South Africa and the Foreign Service In-
stitute of India.
Expressing satisfaction with the increasing
cultural exchanges between the two countries,
Messrs. Zuma and Singh agreed to further pro-
mote educational exchanges, including Univer-
sity-to-University linkages. Mr. Zuma and Dr.
Singh agreed that a more extensive and active
network of cooperation in Science & Technol-
ogy would be promoted by the concerned de-
partments, which would focus on cooperation
between designated agencies and specialised
institutions. In this connection, the two leaders
noted that the MOU for cooperation in the field
of Communications & Information Technologies
expired in September 2009 and thus called for
its early renewal and a meeting of the Joint
Working Group to identify projects for joint co-
operation in the ICT sector.
The South African President was also re-
ceived by India’s President Pratibha Patil and
Vice-President M. Hamid Ansari. Those who
called on him included ruling United Progressive
Alliance (UPA) Chairperson Sonia Gandhi and
Leader of the Opposition Sushma Swaraj. Sonia
Gandhi was invited by President Zuma to the
World Cup that would commence on the 11th
instant. He also invited her to attend the 2012
100th anniversary of the African National Con-
gress founding.
From top to Bottom: India’s Commerce Minister with the
South Africa President in Mumbai; South African Foreign
Minister Ms Maite Nkoane Mashabane greeting President
Zuma upon his arrival in Mumbai and the President and wife
Nompumelelo Ntuli Zuma laying a reef at the Mahatma Gan-
dhi memorial at Rajghat in New Delhi

165 Pan Africa & World Review 2nd Quarter 2010

Africa/South Africa/Urban Transport


Gauteng Premier Nomvula Mokonyane alongside Gautrain

G auteng Province’s Gautrain, designed for

100,000 passenger trips daily travelling at
160km per hour along an 80 km route, linking OR
The Gautrain network consist of 19 trains,
each with 4 passenger cars. Only the OR Tambo
International Airport-Sandton link, which included
Tambo International Airport with Johannesburg the Rhodesfield and Marlboro stations, came on
and Pretoria, came on stream June 8th, just in stream June 8th. The rest of the network is ex-
time for World Cup South Africa 2010. Gautrain pected to be completed next year.
materialized through a partnership between The Gautrain network is connected to the
South Africa’s richest province, Gauteng, which Metrorail public train system and using a single
boasts being Africa’s 5th largest economy, and ticket commuters can change between Metrorail
with local and international entrepreneurs; an and Gautrain. Also included in the network are 125
arrangement said to be the biggest public-private Gautrain luxury buses that operate within a 15 km
partnership in Africa. It is 50% owned by its inter- radius of the train stations.
national partners and 50% by Murray & Roberts Travelling at 160km per hour Gautrain takes
and the Strategic Partners Group, the consor- 40 minutes from Pretoria to Johannesburg and 15
tium's black economic empowerment compo- minutes from Sandton to OR Tambo International
nent. Airport. The initially announced Johannesburg-
Construction started in February 2006 after Pretoria fare is R29 (about $3.75), but the shortest
then Minister of Finance Trevor Manuel allocated destination fare along that route is R13. Gautrain
R7.1 billion (about $1 billion), creating over bus link fares are to vary between R4 and R11.
90,000 direct, indirect and induced jobs before Critics of the project have described Gautrain
opening for service in June 2010. The project as transport for the rich and it was opposed by
attracted investment in shopping malls, enter- COSATU, but the intention of the project was to
tainment centers, office blocks, residential devel- reduce road congestion along the Ben Schoeman
oping and petty trading along its network. An es- Highway, which it is expected to do by 20%.
timated 3,000 jobs per year will be created during Gautrain runs on South Africa’s coal gener-
Gautrain’s operation. As of June 2010 R26 billion ated electricity and the environmental impact as-
(about $3.2bn) had been spent on the project. sessment rated the project environmentally neu-
166 Pan Africa & World Review 2nd Quarter 2010

Al Bashir Wins Sudan’s Presidential Election


D espite facing war crimes and crimes

against humanity charges at the Interna-
tional Criminal Court (ICC), in connection with
civilian casualties in the 7 year old war between
government and rebels in Darfur, Omar Al Bashir
who came to power in a 1989 military coup
d’état, won 68% of the presidential vote in gen-
eral elections held from April 11 to 15. Yasir Ar-
man, candidate for the main opposition party,
Sudan People’s Liberation Movement (SPLM),
came second with 22% of the vote despite having
withdrawn from the race several weeks earlier.
Over 90% of Arman’s votes came from the
autonomous South Sudan region which is sched-
uled to vote in a referendum on separation or
unity next January. end of March complaining of unequal media ac-
SPLM, the party that fought for Southern cess and alleging that the ruling NCP was plotting
Sudan’s right to autonomous government, power a rigged election. However, several Sudanese po-
and wealth sharing and the right to a referendum litical analysts saw their withdrawal as a strategy
on independence, withdrew all its candidates for to try and deny the results credibility after realiz-
post in Northern Sudan. The move indicates a ing they would be roundly defeated. Some sur-
prevailing pre-disposition towards a vote for in- veys conducted by foreign NGOs before the elec-
dependence in the scheduled referendum. Ab- tion revealed support for Al Bashir running as
dallah Deng, the only Southerner in the race and high as 80%; on the other hand online voting con-
candidate for the Hassan Al Turabi led Popular ducted by Sudan Tribune.Com gave victory to
Congress Party, was on the ballot but finished Sadiq El Mahdi with 48% of the vote, followed by
third with only 4% of the vote. That was enough Yasir Aram with 37% and Al Bashir 6%. Many Su-
for the 78 year old Turabi to threaten court ac- danese initially disposed to Arman complained
tion to challenge the elections’ validity:"We will that he destroyed his own campaign with insensi-
go to court. If the judges do not rule in our fa- tive criticism of popular Islamic values. Arman, a
vour, we will employ other alternatives to ad- Northern Muslim who fought on the side of
dress the election problems." PCP is a splinter SPLM, has a political history of association with
party from Al Bashir’s National Congress Party; the Sudanese Communist Party. Northern conser-
both rooted in the officially defunct National Is- vatives hold Arman’s siding with SPLM against
lamic Front. Democratic Union Party (DUP) can- him, but quite a number of Northerners from all
didate Hatim El Sir, though on the ballot received strata of society support SPLM. Many had worked
only 2% of the vote, while Ummah Party candi- hard on Arman’s campaign before he withdrew.
date twice former Prime Minister Sadiq El Mahdi Sudan’s crises are largely rooted in constitu-
received 1% of the vote after withdrawing from tional inadequacies that allow a Northern oligar-
the ballot. chy centered domestic colonialism to pertain in
SPLM’s Yasir Arman and Ummah Party’s relation to marginalized hinterland regions−
Sadiq El Mahdi withdrew from the race at the Southern Sudan, Darfur, Nuba Mountains, South-
167 Pan Africa & World Review 2nd Quarter 2010
Africa/Sudan/Elections Al Bashir Wins Sudan’s Presidential Election
ern Blue Nile and Eastern Sudan. However, no
candidate stressed the fundamental need to re-
write or amend the constitution, which is crucial
to sparing the country from protracted crisis and
In the South incumbent Government of
Southern Sudan President Salva Kiir Mayardit
won on the SPLM ticket with 93% of the vote.
Former foreign minister, SPLM defector, Dr. Lam
Akol, won the remaining 7% as candidate for
SPLM-Democratic Change. Lam rejected the re-
sults, accusing his former party of rigging. "The
elections were rigged and the percentage of the
Former Sudanese Foreign Minister Dr. Lam Akol (above)
votes obtained by the president of South Sudan backed by an 8 party opposition front received only 7% of the
shows this," said the SPLM-DC leader in a press Government of South Sudan presidential vote and alleged the
conference held in Khartoum with other leaders election had been rigged.
of Southern Sudan opposition parties, including
Bona Malual and Joseph Lago. Dr. Lam was European Union and Carter Center observer
backed by an 8 party opposition alliance that in- teams rated the entire election below interna-
cluded his SPLM-DC founded last year. Other par- tional standards, but Al Bashir praised the peace-
ties in the South Sudan Political Party Alliance ful and incident free manner in which Sudanese
(SSPPA) were Sudan African National Union went to the polls, noting "the civilized and re-
(SANU), United Democratic Salvation Front spectful conduct during these elections, which
(UDSF), United Democratic Party, Sudan National saw no clashes or friction." Former US President
Labor Party, USAP-2, South Sudan Democratic Jimmy Carter said he believed the international
Forum and South-Sudan Democratic Front. Link- community would recognize the winners despite
ing his rejection to the outcome of the election the irregularities. Spokesman Kunle Adeyemi for
with prospects for next January’s referendum, Dr. the African Union observer mission in Sudan
Lam Akol averred, "I think the rigging will have a chaired by former Ghanaian president John
negative impact on the referendum. If people Kufuor, said, "What happened in Sudan was a
remain silent in the face of this cheating, the ref- historical event and a great achievement for Su-
erendum itself will be rigged." Presidential ad- danese people." Arab League observer mission
viser, Bona Maluwal, who is also the South Sudan head Salah Halima said, "We cannot say that the
Democratic Forum (SSDF) leader and Joseph Lago Sudanese elections have met international stan-
former vice president and UDSF leader echoed dards, but that does not reduce what has hap-
Akol’s accusation of fraud and lack of democratic pened, which is an important transition."
atmosphere in the South. Sadiq El Mahdi accused the United States of
Following announcement of the election re- imposing NCP on the country as part of a conspir-
sults South Sudan Presidential Political Affairs acy to disintegrate Sudan. However, indications
Advisor Lieutenant General Lual Diing Wol, who is from the UN, the United States and Europe are
also a SPLM Political Bureau member, disclosed that there is serious concern that an independent
his intention to decline appointment in the up- South Sudan, which would join the comity of na-
coming government, expressing his discontent tions with the dubious distinction of being the
with the conduct of the elections. According to world’s least developed country and with its his-
him, "The results announced by the National Elec- tory of communal violence and corruption since
tions Commission and accepted by the SPLM did gaining autonomy under the 2005 Comprehen-
not in any way meet any of the items of the SPLM sive Peace Agreement could become a liability on
vision, instead it has violated constitution and the international community.
vision of the SPLM." He added, “I have seen that When African Union Commission Chairper-
this upcoming government will not be the gov- son Jean Ping and UN Secretary General, speak-
ernment of the people by the people and for the ing at last January’s AU Summit in Addis Ababa,
people." He was speaking to Sudan Tribune.Com called on the international community to do all
in Nairobi. possible to preserve Sudan’s unity, Salva Kiir
168 Pan Africa & World Review 2nd Quarter 2010
Africa/Sudan/Elections Al Bashir Wins Sudan’s Presidential Election
retorted with a reminder that the choice of
unity or independence was left entirely
with the Southern Sudanese and outsiders
had no right to advocate either way in the
Al Bashir said after being declared the
winner that he would respect the results of
next January’s referendum in the South,
but immediately after the elections violent
clashes broke out along the Darfur-
Southern Sudan border, leaving 55 people
dead. The conflict along the yet un-
demarcated border between the North
and South from all reports appears to have
been between Southern soldiers and the
notorious Janjaweed militia associated
with Al Bashir’s ruling party and the main Government of Southern Sudan President Salva Kiir Ma-
perpetrators of the atrocities that led to his in- yardit, seen here with President Hu Jintao while on an
dictment by the ICC. According to official reports, official visit to China, said at his inauguration on May
the clashes began over grazing rights for cattle. 20th that as the ruling National Congress Parry had not
Although the Janjaweed have been given the im- made unity attractive, as agreed in the Comprehensive
age of being synonymous with Darfur’s Arabs, Peace Agreement signed in January 2005 ending the 22
intellectuals from Arab nomad communities in year North-South Civil War, the proposition of unity was
the region describe them as a “bunch of no longer in consideration and Southerners should look
forward to an independent South Sudan following next
[ethnically) assorted bandits”. Specialist on Dar-
January’s referendum. The Government of Southern Su-
fur tribal affairs El Fatih Abdulaziz El Nabi, concur- dan now receives 49% of the income from oil it produces,
ring with this view, maintains that there is no out of which the oil producing states in the region receive
pure African or Arab tribe in Darfur and that 2%. Jonglei State, bordering Ethiopia, which has reserves
tribes have become like associations people join estimated at 3 to 5 billion barrels has opposed exploita-
to advance personal and clique agendas. Commu- tion of its oil on these terms, pointing out that the returns
nity leaders in Darfur have described the conflict did not compensate for the inevitable environmental
in the region as artificial and fueled by leaders in damage.
Khartoum to avoid constitutional and political
reforms. NCP control of the economy and government
Perennial Sudan affairs commentator Eric organs have led to gross political naiveté and gul-
Reeves predicts that with his newly won man- libility.
date, Al Bashir will escalate violence against the Although the NCP regime is notoriously cor-
people of Darfur. “There has already been a sharp rupt it has brought unprecedented socio-
increase in military activity by the Khartoum re- economic progress to Sudan, providing low cost
gime and its Janjaweed militia allies over the past health care through the National Health Insur-
four months, particularly in the Jebel Marra and ance scheme, in addition to stable electricity and
Jebel Moon regions, where rebel presence is water supply and a world class telecommunica-
most significant. All signs since the elections sug- tions network. Real estate and infrastructural
gest an even greater increase in violence,” development in Khartoum, such as bridges across
Reeves wrote in a May 9th article entitled, “Sudan the Nile and new roads, have been phenomenal
elections augur more violence in Darfur.” while Sudan’s currency has been fairly stable for
Presidential Advisor Nafie Ali Nafie had said the past ten years, despite fluctuating somewhat
before the vote that an Al Bashir victory would with the rise and fall of petroleum prices.
prove that ICC allegations against him were false,
but beside the misinformation diet fed Sudanese
on what is happening in Darfur and other parts of
the country geographically remote from North
Central Sudan, 21 years of media censoring and
169 Pan Africa & World Review 2nd Quarter 2010

May 20, 2010

Sudan’s Key Post-Referendum Issues
ANALYSIS Under the CPA, the two sides divide proceeds
from oil pumped in the south. They will have to
Juba — Southern Sudan will in early 2011 hold a negotiate how to share oil revenue, as well as
referendum to determine whether to remain part any user fees levied against the south for using
of a united Sudan or become a separate state. the pipeline and refineries. The two parties
The referendum was a core component of the must also negotiate how to honour current oil
2005 Comprehensive Peace Agreement (CPA) contracts.
that ended decades of conflict between the
Southern Sudan People's Liberation Movement Water - Under a 1929 agreement between
(SPLM) and the Khartoum government. Egypt (which had control over Sudan) and Brit-
Should the south choose to separate, the two ain, and a 1959 agreement between Egypt and
sides will have to negotiate over various key is- Sudan, they control up to 90 percent of the
sues: water. Will Southern Sudan recognize these
old treaties, or will it work with Nile basin
Borders - Five major border areas are in dispute. countries in eastern Africa to work towards a
The first, and perhaps most potentially explosive, "fair" accord? If it honours the colonial pacts,
is around the oil-producing region of Abyei. The as it has indicated to the Egyptians, the south
region will decide in a separate referendum also must then negotiate with Khartoum over what
in January whether to join the south or the percentage of the 18.5 cubic metres of water
north. The borders were outlined in a July 2009 designated to Sudan it can claim.
ruling by the Permanent Court of Arbitration at
The Hague, but demarcation has stalled. At the Nationality - The fate of southerners living in
same time, the northern Misseriya community, the north and northerners living in the south
largely drawn out of Abyei under the new bor- has to be negotiated. Questions of citizenship
ders, has denounced the ruling. and rights will have to be addressed, as well as
According to SPLM secretary-general, Pagan ease of travel between the two. Egypt and Su-
Amum, four other areas are in dispute: the north- dan have signed a "Four Freedoms" agree-
ern-most border separating Renk county in Upper ment, granting Egyptians and Sudanese free
Nile from the north's White Nile state, the border- movement, residence, work, and ownership in
line running north-south between the south's either of the two countries. Could something
Unity state and the north's Southern Kordofan similar be decided between the north and
(this will determine who controls the Heglig oil south?
field), whether the Bahr al-Arab river forms the
exact border between the south's Bahr el-Ghazal Debts and Assets - The south's share of Sudan's
and Darfur in the north, and which river forms the sizeable national debt - estimated by the Inter-
exact western-most dividing line between West- national Monetary Fund in 2008 at US$34 billion
ern Bahr el-Ghazal and Southern Darfur. - will be another issue. Analysts say the north
will want a seceding south to take on a portion
Oil - An estimated 82-95 percent of the oil fields of its public debt burden. SPLM officials have
are in the south (depending on where the border rejected such suggestions, often accusing the
is drawn). Oil revenue accounts for 98 percent of north of using that borrowed money to wage
Southern Sudan's government revenue, and 60 war against southerners. There is also the ques-
percent of the national budget (according to 2008 tion of national assets and the properties of
figures). The sole export route for the landlocked state-owned companies in the south.
south is a pipeline running to the north to Port
Sudan on the Red Sea.

170 Pan Africa & World Review 2nd Quarter 2010

Africa/Sudan/Referendum Oil Consortium Behind War Crimes

Currency - After the CPA, Sudan's official cur- to decide whether to honour international
rency, the dinar, was replaced with the Suda- agreements reached by Sudan, or whether to
nese pound. If the south secedes, will the transfer or scrap some.
north and south continue under the pound? A
newly independent south could choose to cre- Security - The two parties must agree on what
ate its own currency, or switch for a period to happens to key aspects of national security.
an established foreign currency such as the US They will have to decide how to demobilize the
dollar. Analysts say a decision to maintain the Joint Integrated Units and what would happen
Sudanese pound on both sides could bond the to the southern portion of Sudan's national
two economies together. intelligence apparatus.

International agreements - A state enters [ This report does not necessarily reflect the
pacts every year with other countries on a va- views of the United Nations ]
riety of matters. Southern Sudan would have

June 9, 2010

Oil Consortium Behind Sudan War Crimes - Aid Agencies

Frank Mulder — The entry of a Swedish-led oil selink's report estimates that 12,000 people
consortium into Southern Sudan in 1997 trig- were killed or died from hunger or war-related
gered civil war and crimes against humanity, diseases. Many were raped and tortured, half
claims a European coalition of aid agencies. a million cattle was lost and almost 200,000
The European Coalition on Oil in Sudan people were violently displaced.
(ECOS) has called on the Swedish, Austrian and "The companies should have been aware
Malaysian governments to investigate into the of the abuses, but they continued to work with
possible complicity of the consortium in war the government and its army," Wesselink said.
crimes and crimes against humanity. Wesselink now calls on the respective govern-
When the Swedish company Lundin Oil ments to investigate whether the companies
formed a consortium with Petronas Carigali were complicit in the commission of war
Overseas from Malaysia, OMV (Sudan) Explo- crimes and crimes against humanity by others.
ration from Austria and Sudapet from Sudan in "We specifically bring this case to the
1997, they signed a contract with Khartoum to Swedish and Austrian governments, as these
drill for oil in Block 5A in Unity State, southern have acknowledged their commitment to the
Sudan. Comprehensive Peace Agreement in Sudan,"
At this time, however, the area was not said Wesselink. This agreement created the
fully under government control. This set off a right to compensation for injustices resulting
spiral of violence, according to a new report by from oil exploitation. "This promise remains
ECOS, called 'Unpaid Debt', that covers the unfulfilled to date."
period until 2003. "First they started with an aerial bom-
Although the actual perpetrators were bardment, which lasted several days," recalled
government forces and armed groups allied to Rev. James Koung Ninrew, general secretary of
government forces or their opponents, their the peace council in the region. The inhabi-
purpose was to clear the ground for the oil tants of his town, Koch, in Unity State, died or
companies. fled. "Secondly, ground troops came to check
"The oil exploration played a crucial role in the situation, killing the remaining population
the atrocities," Egbert Wesselink, coordinator of and setting the villages on fire. Finally they
ECOS, told IPS. declared the area safe and the oil companies
Based on comprehensive evidence, Wes- came in."

171 Pan Africa & World Review 2nd Quarter 2010

Africa/Sudan/Referendum Oil Consortium Behind War Crimes

The consortium was not directly involved in the

atrocities, Ninrew explained to IPS.
"But it was the consortium that demanded a
safe area for its operations," Ninrew said.
"Moreover, without the contracts the govern-
ment wouldn't have had money to buy gunships
and ammunition. As soon as the troops secured
the area, they moved to the next, systematically,
and the companies followed, until the whole
area of Block 5A was brought under control. The
companies could see the villages still burning."
Throughout the war in Block 5A the consor- Southern Sudanese child victim of civil war
tium worked alongside the perpetrators of inter-
national crimes, the report states. Their infrastruc-
ture even enabled the commission of crimes. For
example, an important bridge and a road ex-
panded the geographic reach of armed groups and
enabled year-round access to communities that
were formerly isolated in this huge, swampy, flat
area on the west bank of the White Nile.
Lundin Oil's spokesperson was not available
to IPS. However, in an open letter to sharehold-
ers, written this week, Ian Lundin, chairman of
the board, writes that ECOS "reiterates infer-
ences, insinuations and false allegations based on
partisan and misleading information which were
refuted [years before]." Beneficiaries of the World Food Program rations for those in
"Lundin contributed to peace and stability in Disarmament, Demobilization & Reintegration program for
former civil war combatants scrambling over foodstuffs
the region", and was "actively engaged with
brought to them at Lauro Village, Budy County, Eastern Equa-
stakeholders," the letter claims. toria State, South Sudan (Below) Southern Sudanese IDP
According to Wesselink, Lundin Oil made an watching TV in Khartoum
extremely biased selection of stakeholders for
their dialogue. "Their stakeholders consisted of
two of the political leaders in the region. But when
these leaders turned against the consortium, they
chose other stakeholders".
The Swedish foreign affairs ministry has re-
fused to react to the report. "We don't comment
on individual companies and we don't investigate
them," spokeswoman Irena Busic told IPS. "The
prosecutor will do that."
The ministry is hiding behind the possibility ECOS estimates the necessary compensa-
of a criminal prosecution, holds Wesselink. "They tion at 300 million US dollars.
miss our point. There are good reasons for crimi- "The local people now are very bitter,"
nal punishment, but that's not our objective. explained Ninrew. "They want the company to
That's not what the people of southern Sudan acknowledge they made mistakes. That also
are waiting for. We want the governments to means compensation, to the people who suf-
ensure appropriate compensation for all persons fered damages."
whose rights have been violated, and the compa- "Lundin thinks this storm will go over,"
nies have to pay their fair share." Wesselink said. "We think this time it won't."

172 Pan Africa & World Review 2nd Quarter 2010

Asia/Afghanistan/Geological Survey

Afghanistan’s trillions in mineral wealth


P resident Hamid Karzai’s spokesman

announced in mid June that the
United States Geological Survey under con-
tract from the Afghan government released
a report confirming the country has vast
mineral wealth. "The result of the survey ...
has shown that Afghanistan has mineral
resources worth $1 trillion," said Omar.
"This is not an overall survey of all minerals
in Afghanistan. Whatever has been found in
this survey is worth $1 trillion."
President Karzai at a May 13 event
with U.S. Secretary of State Hilary Clinton at
the U.S. Institute of Peace in Washington
Afghan President Hamid Karzai mandated to pursue peace
said discovery of the mineral resources brings a
with Taliban, which is essential for full exploitation of mineral
“massive opportunity.” Karzai said his country’s resources.
mineral wealth could possibly be worth as much
as $3 trillion.
noted that many deposits are in Taliban territory
The New York Times reported senior Ameri-
which is too dangerous for commercial mining
can officials saying the mineral wealth found by
the geological survey was enough to fundamen-
Geologists have long known that Afghani-
tally alter the Afghan economy and possibly the
stan was mineral rich but production of the re-
war as well. Minerals discovered include iron,
sources had not been developed because of
copper, cobalt, gold and lithium, an important
years of armed conflict and political instability. It
mineral used in the manufacture of batteries for
has also been reported that Afghanistan scien-
cell phones and laptop computers. The Times
tists have since the early 1950s known of their
quoted a Pentagon memorandum saying Afghani-
country’s mineral wealth but kept it secret out of
stan could become the Saudi Arabia of lithium.
concern that the political situation was not right
Mining analyst Charles Kernot at Evolution Securi-
for reaping Afghanistan’s people optimal benefit.
ties Ltd. in London, said it typically takes three to
The Soviets during their occupation of Afghani-
five years to get a lithium mine operating and
stan in the 1980s had mining experts survey the
electrical power and other infrastructures are
country’s mineral resources and the U.S. Geologi-
necessary. Although the lithium market is com-
cal Survey made use of their data in its initial ae-
petitive the prospects for electric cars suggest a
rial survey in 2006.
an upbeat future.
On June 4th Afghanistan’s religious and po-
Niobium, a soft metal used in producing
litical leaders, at the conclusion of a three day
semiconducting steel, was also found plentiful.
peace jirga gave President Karzai a mandate to
The Times quoted General Petraeus saying,
start a peace process to end conflict with the
"There is stunning potential here," adding, "There
are a lot of ifs, of course, but I think potentially it
is hugely significant." The U.S. Geological report
174 Pan Africa & World Review 2nd Quarter 2010

China leads global economic recovery


send the U.S. and marginally growing economies

into double dip recession.
Japan, now the world’s third largest econ-
omy with GDP at $5.085 trillion kept pace posting
5.5% expansion in last year’s 4th quarter and hold-
ing up with 5% growth for the first quarter of
2010. Japanese unemployment was high by his-
torical comparisons at 5.2%, while deflation set in
at -.9%.
Sheng Laiyun, a spokesman at China’s statis-
tics bureau reported China's consumer price in-
dex rose 2.9% in June, down from May's 3.1% rise
and significantly below economists' expectations
Despite China’s double digit growth in the first half of 2010,
of a 3.3% rise. CPI fell 0.6% in June from May,
and a 55.1% first quarter industrial production increase,
mainly due to lower vegetable and fruit prices.
Shanghai Stock Exchange (building pictured above), usually
The producer price index rose 6.4% in June, lower
the world’s fastest growing, lost 18.09% of it capitalization
value in the second quarter. Hong Kong’s Hang Seng, China’s
than May's 7.1% rise and economists' forecast of
highest capitalized stock market also declined, though a 6.8% increase.
slightly, during the second quarter. China’s industrial production rose 13.7% in
June, down from May's 16.5% increase and

W hile major economies are tenuously out of

recession, China is pushing ahead, sustain-
ing double digit growth. With revised 2009 GDP
economists' expectations of a 14.9% rise. Fixed-
asset investment in urban areas rose 25.5% in the
January-June period, down from a growth rate of
figures showing that it has officially passed Japan 25.9% in the January-May period. Economists had
as the world’s second largest economy, China expected a 25.2% rise.
posted an incredible 11.9% growth in the first China’s Ministry of Commerce reported that
quarter followed by 10.3% in the second. China’s $12.5 billion worth of foreign direct investment
nominal GDP at the end of 2009 was $5.296 tril- came in during June, up 39.6% from a year earlier
lion, according to China’s National Bureau of Sta- and an improvement on May's 27.48% rise.
tistics after having revised last year’s growth from Pointing out that China had managed to
8.7% up to 9.1%. On the International Monetary achieve high economic growth, high employment
Fund’s purchasing power parity (PPP) GDP list and low inflation" in the first half, Sheng Laiyun
China at the end of 2009 more than doubled Ja- reiterated that Beijing would keep its macroeco-
pan at $8.765 trillion to $4.159 trillion. nomic policies stable and flexible to cope with
The United States of America’s $14.093 tril- any changes in the domestic and global economic
lion economy by comparison grew 2.7% in the first situation. He also pointed out that the growth
quarter of 2010 but the unemployment rate was a rate for the period was in line with historic aver-
worrisome 9.5%, while inflation was contained at ages.
1.1% Having posted its highest growth rate in six Analyst Liu Li predicts that in the coming
years for the last quarter of 2009, 5.6%, the USA months China's exports may begin to feel the
economic recovery is not looking in the least impact of the euro zone's debt crisis. Also, ac-
bleak, but pulling down unemployment and reduc- cording to Li most analysts think the govern-
ing the national debt will require sustaining ment's controls on home buying will lead to a
growth above 5%, which is not happening. More- further slowdown in construction, which has
over, the trend to budget cutting in the face of been an important driver of China's growth.
highly risky sovereign debt to GDP rations could

175 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Cross Strait Relations

Beijing-Taipei Trade & Investment Pact


W ith mainland China’s trade representative

Chen Yunlin hailing the agreement as based
on “equal consultation and mutual benefits”, Bei-
jing and Taipei on June 29th took a major step to-
wards integration of their economies, signing the
historic Economic Cooperation Framework Agree-
ment (ECFA) in Chongqing, the city Chaing Kai-shek
made his provisional capital during the 1937-1945
war to repel Japan’s invasion of China.
China’s state news agency Xinhua reported
that The People’s Republic of China and Taiwan
agreed in the 16 part pact to “gradually reduce and
remove trade and investment barriers and create a China’s President Hu Jintao prior to signing of the ECFA
fair environment.” In April 2009 Chiang Pin-kung of pledged more business opportunities on the mainland for
the Straits Exchange Foundation and Chen Yunlin of Taiwanese investors
China’s Association for Relations Across the Taiwan
Straits signed on behalf of their organizations an increasingly influential in world affairs.
agreement to “realize the normalization of cross- Analyzing motives behind the historic June 2010
strait economic ties,” paving the way for the June development, Kao Huei of the National Kinmen Insti-
29, 2010 ECFA. tute of Technology in Taiwan, averred: "For Taiwan,
The April 2009 agreement was the third in a this is purely an economic deal, while for China, this is
series following Ma Ying-jeou’s election as presi- a political move. Mainland China now sees cross-strait
dent of Taiwan. He campaigned for Taiwan’s presi- relations at a stage of peaceful development and the
dency promising to improve relations with signing of ECFA fits into that narrative. In the long
mainland China. Prior to last year’s agreement, Tai- term, what China wants to achieve with peaceful de-
wan based investors were active in China but velopment is peaceful unification with Taiwan."
mainland Chinese companies needed permission On June 4th, looking forward to signing the ECFA,
from the government in Taipei to invest in Taiwan. Taiwan’s President Ma Ying-jeou put Beijing on notice
Four days after the April 26, 2009 agreement, state that it should not try to prevent Taipei signing free
owned China Mobile announced it would buy a 12% trade agreements with other countries.
stake in Far East Tone, one of Taiwan’s three larg- As of June 30, 2010, Taiwan private investment in
est telecommunications operators, for $529 million. China totaled $5.74 billion. During the first half of the
Immediately following the announcement $997 year Taiwan’s Ministry of Economic Affairs approved
million in foreign investment poured into Taiwan’s 217 investment projects slated for China.
capital market. Members of the opposition Democratic Progres-
The ruling Chinese Communist Party has con- sive Party criticized Ma Ying-jeou’s government for not
sidered Taiwan a renegade province sequel to allowing more public debate on the pact. Thousands
Chaing Kai-shek having established a government of Taiwanese demonstrated in the streets against it,
there in 1949 upon losing the civil war fought maintaining that it would open the island to a flood of
against Mao-Zedong’s CCP. The issue of relations cheaper Chinese goods, putting Taiwanese out of jobs.
with CCP governed Beijing has become increasingly
contentious in Taiwan as China grows wealthier and
176 Pan Africa & World Review 2nd Quarter 2010
Asia/China/Health & Welfare

Chinese president calls for universal basic health care

May 31, 2010

China’s President
Hu Jintao

C hinese President Hu Jintao has asked gov-

ernments at different levels to endeavor to
ensure all urban and rural residents to be cov-
China launched its massive health care reform last
year, which seeks to provide adequate and afford-
able health care services to all. The State Council, or
ered by basic health care service, a key livelihood Cabinet, issued a circular last month detailing spe-
issue in the country. cific goals and steps for future reforms.

Hu, also General Secretary of the Communist Hu pledged more government involvement in and
Party of China (CPC) Central Committee, made funding for health care services, which he said must
the call at a group study of the members of the be public-oriented.
Political Bureau of the CPC Central Committee on
Friday afternoon, said a statement issued on Sat- He said ensuring people's rights to health must be a
urday. top priority for governments and CPC committees of
all levels and urged them to resolutely work to
The political bureau members held discussions achieve the reform's success.
with two research fellows - Rao Keqin from the
Ministry of Health and Ge Yanfeng from the State In his speech, Hu also called for more efforts to es-
Council's Development Research Center - who tablish a national system of essential medicines,
made speeches on the issues of China's heath enhance health care service at grassroots level, and
care reform and global health care development. advance the pilot reform of state-owned hospitals.

Hu said the reform must realize the goal of basic Source: Xinhua
health care for everyone and it was a major task
to speed up the building of a basic health care
system that covers both rural and urban resi-
177 Pan Africa & World Review 2nd Quarter 2010
Asia/China/International Relations
Chinese VP's four-nation tour promotes friendship, mutual
trust– official
BEIJING, June 24 (Xinhua) -- Chinese Vice President Xi COOPERATION FOR
Jinping's visits to Bangladesh, Laos, New Zealand and COLLABORATIVE DE-
Australia has contributed to promoting friendship, VELOPMENT
mutual trust and cooperation between China and An important theme of
these countries, a senior Chinese official said Thurs- Xi's trip was strengthen-
day. ing wide, mutually
Xi paid official visits to the four nations between beneficial and prag-
June 14 and June 24, meeting with leaders and ex- matic cooperation. He
changing views on a wide range of issues, witnessing sent a clear message to
the signing of a series of bilateral cooperation agree- the world that China
ments, addressing business forums and attending cul- was ready to develop
tural activities. economic and trade ties
"The visits boasted great achievements. It was a with other countries,
successful trip of friendship and substantial coopera- Zhang said.
tion," said China's Vice Foreign Minister Zhang Zhijun, "Through meetings and talks on various occa-
who accompanied Xi on the tour. sions, the vice president set the directions and priori-
During the 11-days of visits, Xi visited seven cities ties of cooperation, thus strengthening the willingness
in four nations and attended more than 50 official of the four countries to cooperate with China."
activities, which were reported abundantly and posi- Xi promised China would continue to provide
tively by the media of the host countries and interna- Bangladesh with adequate assistance, encouraging
tional community, Zhang said. more Chinese enterprises to invest there. He also
CLOSER FRIENDSHIP, MUTUAL TRUST raised specific suggestions on promoting the trade
Senior officials and the public, especially the business between China and Laos.
world, warmly welcomed Xi's visits. The leaders When talking about Xi's speeches on economic
reached important agreements in consolidating and and trade cooperation in New Zealand and Australia,
enhancing bilateral relations, Zhang said. Zhang said Xi's ideas gained close attention and a
It was widely believed the tour had great signifi- warm response in the two countries and the interna-
cance for promoting friendship and mutual trust and tional community.
expanding pragmatic cooperation, he said. While attending the opening ceremony of the
Zhang noted large-scale economic and trade ac- China-New Zealand FTA Seminar, Xi put forward a four
tivities held during Xi's visits aroused widespread in- -point proposal to promote comprehensive coopera-
terests in these countries. tion in trade and investment.
Xi pledged to establish a closer comprehensive Speaking to a business luncheon, Xi said Australia
partnership of cooperation between China and Bang- and China should boost strategic cooperation on en-
ladesh and to strengthen the comprehensive strategic ergy and resources, push for a free trade agreement
cooperative partnership with Laos. and oppose protectionism in trade and investment.
In New Zealand, Xi urged both sides to develop WIDER HUMANITARIAN EXCHANGES
the potential for economic cooperation while making The Chinese vice president called for more exten-
full use of the China-New Zealand Free Trade Agree- sive cultural communications, citing the Shanghai
ment (FTA), and to make trade and investment more World Expo as an ideal opportunity for strengthening
balanced, smooth and comprehensive. mutual understanding between the peoples.
In his visit to Australia, Xi said China was willing Xi met those dedicated to promoting Bangladesh-
to promote bilateral political and strategic mutual China friendship and Laotians who studied in Beijing in
trust, and dedicate to a long-term stable and compre- the 1960s. In New Zealand and Australia, he attended
hensive cooperative partnership. various ceremonies at Confucius institutes and re-
Xi also introduced China's views on climate search centers cooperating with Chinese scholars.
change, the Korean peninsula situation, and regional All these showed the importance the Chinese leader
peace, stability and cooperation. has attached to the humanitarian exchanges, Zhang
"His introduction has increased all sides' under- said.
standing of China's stance on the key issues," Zhang After a 30,000 km tour, Xi and his delegation ar-
said. rived in Beijing Thursday afternoon.
178 Pan Africa & World Review 2nd Quarter 2010
Asia/China/International Relations

France’s Sarkozy in China


F rance’s President Nicolas Sarkozy was in China

for a three day official visit beginning April 29.
It was his fourth visit to China as president, but the
first since relations between Paris and Beijing
chilled in 2008 over the French president’s meeting
with Tibet’s exiled Dalai Lama. Beijing reacted with
cancelation of the Sino-European Summit. Prior to
Sarkozy meeting the Dalai Lama, accused by Beijing China’s President Hu Jintao and French President Nicolas
of seeking separation of Tibet from China, relations Sarkozy in Beijing at the start of Mr. Sarkozy’s end of April
official visit. President Sarkozy was President Hu Jintao’s
between the two countries soured when Free Tibet
guest at the opening of the World Expo 2010 in Shanghai
activists dogged the Beijing Olympic torch relay
passing through Paris. At the time Chinese called
for boycott of French goods; then Chinese Premier nese position, telling his counterpart that he com-
Wen Jiabao bypassed France on his late 2008 confi- pletely understands China’s preference for dialogue
dence building tour of Europe. The prelude to this but in the event dialogue is failing sanctions would
April’s visit was the meeting China’s President Hu be the only option. Cautious not to press for a con-
Jintao and President Sarkozy had on the sidelines of clusive Chinese position on the issue Mr. Sarkozy
the China-European Union Summit in Prague during concluded discussion of the matter saying, “….we
April 2009. Following that meeting a joint state- are willing to discuss this problem together at an
ment was issued in which France committed to ad- appropriate time.”
here to the one China policy, acknowledged that Like the Americans, the French contend that
Tibet was an inseparable part of China’s territory China’s currency, the renminbi, is undervalued, but
and promised not to support any activities calling Sarkozy did not press the devaluation demand dur-
for an independent Tibet. ing his discussion with Hu on global monetary re-
China’s $7.7 billion trade deficit with France in form. “France’s belief is that it is totally unproduc-
the first quarter of this year highlights the benefit tive to make accusations against one another,” Mr.
of having this nation of 1.3 billion people as a trad- Sarkozy said, according to Global Times. “It is far
ing partner and during his visit Sarkozy pressed for more intelligent to prepare the necessary evolution
more sales to China, urging President Hu Jintao to of the monetary system in the 21st century.” Wash-
purchase French nuclear technology and equip- ington complains that keeping the renminbi under-
ment. Although Sarkozy, travelling with 20 French valued reduces the cost of Chinese production and
transnational corporation executives, didn’t come gives the country an unfair trade advantage in the
away from this fence mending visit to China with global market, but American investors in China see
any mention of big contracts, he is looking forward Washington’s position in this inadvertently aimed at
to signing an agreement on civilian nuclear power cutting returns on their investments.
with China during Hu Jintao’s visit to France sched- Jian Junbo, an assistant professor at the Fu-
uled for August. dan’s University’s Institute of International Studies
Coming to geopolitics, Sarkozy sought China’s in Shanghai summarized President Sarkozy’s stance
support for new UN sanctions against Iran; some- during the visit as at once conciliatory and prag-
thing China which imports 12% of its oil from the matic, extending a hand of cooperation to China on
Islamic Republic would prefer avoiding. The French the big issues of the 21st century.
president however showed sensitivity to the Chi-
179 Pan Africa & World Review 2nd Quarter 2010
Asia/China/News Briefs

Chinese president, Canadian PM

talk on bilateral ties

Visiting Chinese President Hu Jintao (L) holds talks with Canadian Prime Minister Stephen Harper in Ottawa, Can-
ada, June 24, 2010. (Xinhua/Fan Rujun)
OTTAWA, June 24 (Xinhua) -- Visiting Chinese
President Hu Jintao met Canadian Prime Minis- Air China to buy 20 Boeing
ter Stephen Harper on Thursday for talks on the
development of China-Canada ties. planes for $13.98bn
The two leaders are also expected to ex-
change views on major global and regional is- HONG KONG, June 25 (Xinhua) -- Air China,
sues of common concern, said Chinese diplo- China's leading carrier listed in Hong Kong, said
mats. late Friday that it would pay 13.98 billion U.S.
According to the schedule, Hu and Harper dollars to buy 20 Boeing 737-800 planes.
will attend a signing ceremony of cooperation In a statement filed to the HK stock ex-
documents following their talks. change, the carrier said the cost would be
Hu flew into Ottawa on Wednesday for a "payable by cash in installments" and it would "
state visit to Canada. take delivery of the Boeing Aircraft in stages
This year marks the 40th anniversary of the from 2013 to 2015".
establishment of diplomatic relations between The transaction will be funded through
China and Canada. cash generated from Air China's business opera-
tions, commercial bank loans and other financ-
ing instruments of Air China, said the statement.

Editor: Zhang Xiang

180 Pan Africa & World Review 2nd Quarter 2010

Asia/China/News Briefs

Boeing CEO says China to continue to be

U.S. major market, partner
Air China Boeing in flight

by Jing Zhao Cesarone lomatic and economic channels were reopened.

CHICAGO, May 26 (Xinhua) -- China will con- "That Boeing 707 is truly the game-
tinue to be both a major market and partner to changing airplane of its time. China ordered ten
the United States, supporting thousands of U.S. Boeing 707 jetliners soon after the visit, setting
jobs and contributing significantly to the U.S. in motion a tremendously productive relation-
balance of trade, said CEO of a Fortune 100 ship between a company (Boeing) and a country
company in Chicago on Wednesday. (China) – a relationship that continues today
James McNerney Jr., chairman, president and in many ways has become symbolic of the
and CEO of the Boeing company, made the four decades of cooperation between our two
statement at a luncheon organized by The Chi- nations," McNerney said.
cago Council On Global Affairs as part of its Cor- When talking about the significant changes
porate Program: Focus on China. in China, McNerney said, "One of the most im-
McNerney started his speech by commend- portant changes in China that I have witnessed
ing Secretary of State Hilary Clinton and Treas- – the rapid growth in personal incomes. A grow-
ury Secretary Tim Geithner for the progress ing middle class in China is dramatically reshap-
their teams made this week at the Sino-U.S. ing the country' s domestic economy and has
Strategic and Economic Dialogue in Beijing. global economic impact too."
"It is vitally important that U.S. leaders are Regarding Boeing's growing business with
engaged in supporting U.S. trade relationships. China, the CEO exclaimed, "China has bought
Expanded engagement in international markets, more than any country in the world (except the
combined with the recovery of our financial ser- U.S.). It has a total of 1,560 airplanes (almost 53
vice markets, is critical to accelerating our over- percent of them are Boeing airplanes), and the
all economic recovery," he said. average age of these planes is just six and a half
In 1972, then President Richard Nixon years - meaning that China also has one of the
landed in Beijing aboard Air Force One - a Boe- youngest fleets in the region."
ing 707 - marking the first visit of a U.S. presi- Commenting on the relationship between
dent to China. Boeing has been one of the few China and the United States, he noted, "I be-
American companies present in China since dip- lieve the U.S and China are already interde-
181 Pan Africa & World Review 2nd Quarter 2010
Asia/China/News Briefs China to continue to be U.S. major market, partner

and military aircraft, with capabilities in rotor-

craft, electronic and defense systems, missiles,
satellites, and advanced information and com-
munications systems.
Editor: An

China plans bio-fuels industry

with Boeing and Honeywell
Culled from Air Cargo World

Boeing, PetroChina and Air China have begun to

evaluate setting up a sustainable aviation bio-
fuels industry in China. Other US participants in-
clude AECOM, Honeywell's UOP and United Tech-
Boeing chairman, president and
CEO James McNerney Jr., nologies.

pendent and growing more so every day. In fact, Air China, PetroChina, Boeing and Honeywell’s
our interdependence with China is key to the U.S. UOP will conduct an inaugural flight using sustain-
achieving President Obama' s goal of doubling able bio-fuels derived from biomass grown and
America's exports over the next five years – an processed in China. PetroChina will provide the
increase projected to support two million Ameri- biomass, which be processed into jet fuel by UOP.
can jobs at a time when we really need them." The internal China flight will highlight the viability
"I expect that the U.S.-China relationship will of the entire supply chain– from seed to flight.
always be complex, but that global interdepend-
The project will look at all phases of sustain-
ence in business will help keep both nations moti-
vated to work out their differences construc- able aviation bio-fuel development including
tively," he added. agronomy, energy inputs and outputs, life cycle
McNerney gave an example to illustrate his emissions analysis, infrastructure and government
point. "Despite ongoing debates on a number of policy support.
issues, the two nations have worked very closely Potential plant sources being considered are
and effectively to navigate through the global fi- only ones that don't distort the global food-chain,
nancial crisis." compete with fresh water resources or lead to
"The important concept here is maintaining
unintended land use change.
dialogue between the two nations as well as be-
Boeing China president David Wang com-
tween industry and the respective governments,
not only to address issues of concern but also to mented: "Sustainable bio-fuels can help reduce
expand existing partnerships and create new carbon emissions while offering the potential to
ones," he added. lessen aviation's dependence on fossil fuels."
"The more we work with out counterparts in In a related move, Boeing Research & Tech-
Chinese business and government, the more we nology and the Chinese Academy of Science's
will develop mutual understanding and influ- Qingdao Institute of Bio-energy and Bioprocess
ence." Technology have agreed to include other research
McNerney has been chairman of the board,
institutions and aviation supply chain participants
president and CEO of Boeing since July 2005. He
has served as a member of the company's board as part of their efforts in algae-based aviation bio-
since 2001. McNerney oversees the strategic di- fuel development.
rection of the 68.3-billion-dollar aerospace com-
With nearly 160,000 employees, Boeing is
the largest manufacturer of commercial jetliners
182 Pan Africa & World Review 2nd Quarter 2010

Shanghai Expo

Shanghai Expo grounds’ south gate entrance; at 5.28sq. km it is the largest fair site ever

E xpo 2010 Shanghai China opened for its 6

month run on May 1, scheduled to close Oc-
tober 31. More than 190 countries and 50 interna-
African Union Chairman President Bingu wa
Mutharika of Malawi was at the opening cere-
mony with Chinese President Hu Jintao who con-
tional organizations registered to participate. Be- ducted the formal opening.
tween 70 to 100 million visitors are expected, Mutharika expressed satisfaction with the
mostly Chinese. By the end of June there had al- green energy theme of the African pavilion. In
ready been over 20 million visitors, including addition to the AU Pavilion 44 Africa countries
French President Nicolas Sarkozy. have national pavilions at the Expo.
A number of Chinese companies have pavil- The Caribbean is represented by 8 national
ions and Cocoa Cola has one of the few foreign pavilions in addition to the Caribbean Community
corporate pavilions. Most pavilions are country Pavilion.
representative. Shanghai spent at least $45 billion on hosting
Expo spokesman Xu Wei says, "It is a big plat- World Expo 2010, substantially improving the
form, a big event for cultural exchanges. We are city’s infrastructure, including a new mass transit
bringing the whole world – different countries, train system.
different peoples – to this area, so it's a good op- Shanghai is China’s largest city and has been
portunity for Chinese people to have 'face to face' the mainland’s commercial center since the mid-
contact with international society." dle of the 19th century, largely owing to its har-
China won the vote to host the World Expo bor which made it the country’s principal port for
2010 at the 132nd meeting of the International foreign trade. Like New York it is not only a
Exhibitions Bureau held on December 3, 2002 in coastal city but sits at the mouth of a river– the
the Prince of Monaco Palace in Monte Carlo, pre- Yangtze.
vailing against Yeosu, South Korea which won the As of 2005 Shanghai with a population of
2012 World Expo and Moscow. 19.2 million and a per capita income of $11,500,
Before closing at the end of October Shanghai about double that national per capita, became
Expos is scheduled to have had 20,000 perform- the world’s busiest seaport. Shanghai Stock Ex-
ances, many of them by popular Chinese singers. change is the world’s fastest growing . In line with
Jackie Chan wrote City, the Expo’s official theme its own current focus, the theme of the Shanghai
song, which he performed at the opening cere- Expo 2010 is “Better City– Better Life”.
183 Pan Africa & World Review 2nd Quarter 2010
Asia/China Shanghai Expo

South Africa’s Expo Pavilion adopted the theme, Rise

of a Modern Economy
Artists’ perception of exterior of African Union Pavilion
projecting the theme: Great benefits of clean energy on
Africa’s urban management

Liberian Pavilion on the theme: A safe city is a peaceful


Botswana Expo Pavilion sporting the theme, A Heritage of


Ethiopian Pavilion theme: Blended legacy of cities;

the Ethiopian experience

Egypt’s fantastic Expo Pavilion with the theme: Cairo, Below is the Caribbean Community Pavilion asserting
Mother of the World, a city that keeps reinventing itself the theme: Many islands; different experiences

184 Pan Africa & World Review 2nd Quarter 2010

Asia/China Shanghai Expo

Woman posing in front of a work of art at the African Union Pavilion at World Expo 2010 Shanghai

Ghanaian Pavilion themed “Garden Cities”

Sierra Leone Pavilion themed Growth and more urban

Côte d’Ivoire Pavilion themed “Cohabitation of diverse cul-

tures in the city”
Kenya’s Pavilion themed “Cities of discovery and

Zimbabwe’s Pavilion (right) themed ‘Transforming our

cities for a better life”

185 Pan Africa & World Review 2nd Quarter 2010

Asia/China Shanghai Expo

Clockwise from top: (1) Canadian Pavilion (2) Singapore

Pavilion (3) German; (4) Swedish (5) Norwegian (6) Dan-
ish Pavilion (7) American Pavilion (8) Spanish Pavilion (9)
French Pavilion (10) and Taiwan Pavilion

186 Pan Africa & World Review 2nd Quarter 2010

Asia/China Shanghai Expo

Polish Pavilion Italian Pavilion interior

Mermaid sculpture Outside Danish Pavilion Seeds Cathedral inside British Pavilion

Expo Opening Night Fireworks

North Korea Pavilion Pan Africa & World Review 2nd Quarter 2010
Asia/China/Beijing International Auto Show

Auto China 2010


A Beijing Auto Show fashion model accompanies Chana EV Concept, a plug in, charge and drive electric two-seater
produced by China’s Changan Automotive Group; below right is the Chana EV driving compartment with iPod.

A uto China 2010, the Beijing International

Automotive Exhibition, held from April 23 to
May 2, with the first 2 days reserved for the press,
the following two for trade talks and deals; then
public viewing began on the 27th. With exotic mus-
cle cars such as Lamborghini (accompanied by the
company’s CEO) on display companies showcased
their latest energy saving technologies, highlight-
ing the official focus of the exhibit on green tech-
nology. Themed “Imagining the Green Future,”
Auto China 2010 featured 65 concept vehicles and
89 debut models among 990 exhibits from 16
China, now the world’s largest automobile
group’s strategy would be focus on “G-Living”,
market in number of vehicles purchased, con-
referring to “green, growth and global”.
sumed 13.64 million vehicles in 2009 and pro-
The biennial Beijing Auto Show is one of
duced 13.79 million. China’s home brands Cherry
three in China, along with the Shanghai and
Automobile and BYD Auto displayed their latest
Guangzhou shows. The show’s organizers ac-
electric cars and Shanghai Automotive Industry
knowledge having improved it since the maiden
(SAIC) showcased its new electric concept car, the
edition in 1990 and many industry executives
E1. Changan Automotive Group brought 6 electric
now rank it one of the best shows on the global
cars and 4 hybrid models to Beijing Auto Show.
auto exhibition calendar. More than 80,000 peo-
CAG’s CEO told the press that going forward the
ple visited Beijing’s Auto China 2010.
188 Pan Africa & World Review 2nd Quarter 2010
Asia/China/Beijing International Auto Show

From Britain & Germany

Bentley’s flagship, the £220,000 Mulsanne (above) and Bentley Continental Flying Spur Speed (below) were on dis-
play at the Beijing Auto Show along with the Bentley Continental GT. The Mulsanne, powered by a 6.8 litre, 505hp
V8 attains a top speed of 184mph and has a 8 speed automatic transmission. The Continental Flying Spur comes in
552hp and 600hp V-12 versions, the latter attaining a top speed of 200mph. .Prices for 2010 ranged from $185,000
to $210, 000. Bentley is now owned by Germany’s Volkswagen but assembled in England, though only the Mulsanne
body is made in England.

189 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From China

China’s Red Flag Limousine is the model used by President Hu Jintao

190 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From China

Geely GL Eagle GS

191 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From Germany

Audi R8 5.2 Quattro Convertible (top) and Coupe (bottom); prices range from $115,000 for the 4.2 litre V8 420hp
version to $155,000 for the 5.2 litre V10 525hp engine convertible version, which delivers 13-20mpg

192 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From Germany

Audi unveiled this long wheelbase version of its A8 (L W12) at the Beijing Auto Show

193 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From Germany

BMW Grand Coupé concept car seen here during a road test was on display at the Beijing Auto Show

194 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show

From Germany

The world’s largest manufacturer of luxury cars chose the Beijing Auto Show for the
World Premiere of its all new BMW 535Li (long wheelbase)

195 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From Germany

BMW Vision Efficient Dynamics

Bugatti Veyron Convertible,

Bugatti Veyron, flagship of Volkswagen’s new super luxury car stable, prices start at $1.7 million; the car has
1001 horsepower that delivers top speed above 250mph

196 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From Germany

Mercedes Benz E350 convertible, 268hp, 130mph for about $60,000

Mercedes-Benz SLS AMG 2 seat sports car

197 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show

From Italy

Ferrari 599 GTO at the Beijing Auto Show; with a 661 horsepower V12 engine it cost £300,000 ($460,000) and only
599 cars of this model are scheduled for production

198 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show

From Italy

Ferrari 599 GTO accelerates from start to 62 mph in just 3.35 seconds and boasts a top speed of 208 mph. Fuel
consumption range is 11-15 mpg

199 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From Italy

Lamborghini CEO Stephan Winkelmann (L) sits on the Murcielago LP 670-4 Super Veloce China Limited Edition
during a special media opening of the Beijing Auto Show on April 23, 2010

200 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From U.S.A.

From one of America’s leading luxury car brands the Cadillac Converj concept car at Beijing’s
Auto China 2010

201 Pan Africa & World Review 2nd Quarter 2010

Asia/China/Beijing International Auto Show
From U.S.A.

Ford Start concept car with a 3 cylinder 1 litre Eco Boost engine debuted at Beijing’s Auto China 2010. The
engine is likely to be in the 2012 Ford Fiesta production model

202 Pan Africa & World Review 2nd Quarter 2010


Prime Minister Yukio Hatoyama resigns


J apan’s traditional premium placed on self-

critical integrity proved alive and well at the
apex of Japanese society as Prime Minister Yukio
Hatoyama resigned on May 31st after only 8
months in office, citing failure to make good his
campaign promise to move the United States Ma-
rine Air Station Futenma off the southern island
of Okinawa. His decision to step down was
backed by pressure from his Democratic Party of
Japan as his approval ratings fell. In announcing
his resignation, the 63 year old grandson of for-
mer Japanese prime minister Ichiro Hatoyama
told his compatriots in front of the world, “Since
last year’s elections I tried to change politics so
that the people of Japan would be the main ac-
tors,” conceding that because of his failings ef- Yukio Hatoyama Prime Minister of Japan from September
forts to that end fell short. 16, 2009 to June 8, 2010
Besides failure to move the American marine
security pact to the fore of public policy, but he
base off Okinawa, the outgoing prime minister
nonetheless accepted blame for not closing
cited the political funding scandal in which two of
Futenma as promised.
his aides were convicted of falsifying contribution
Hatoyama who hold’s a Ph. D. in industrial
reports and given suspended prison sentences.
engineering from California’s prestigious Stanford
Hatoyama urged his party’s secretary general
University was first elected to Japan’s lower house
Ichiro Ozawa, who faced a separate political fund-
of parliament in 1986. He became president of the
ing scandal, to also step down to make way for
Democratic Party of Japan, the country’s main op-
the DPJ’s renewal. “Our party must break with
position party, in May 2009 and went on to lead
money,” he said. “We must become completely
DPJ to a historic victory in last September’s parlia-
clean in order to revitalize our society.”
mentary elections, ending decades of uninter-
Although Hatoyama had promised during his
rupted Liberal Democratic Party governance.
campaign last year to remove the American ma-
Prior to entering Parliament Hatoyama was Associ-
rine base from Okinawa, increasing North Korean
ate Professor at Japan’s Senshu University.
belligerence in the Asia Pacific region prompted
Apart from Yukio Hatoyama’s grandfather,
him to disappoint popular expectations that his
who served as Japan’s prime minister after World
promise would be fulfilled. A week prior to his
War II, having been a founder of the Liberal De-
resignation he agreed to a 2006 proposal to move
mocratic Party, his father was once Japan’s foreign
the base which has 47,000 United States military
minister and his great grandfather was parliamen-
personnel to a northern part of Okinawa. This
tary speaker in the 19th century.
concession was reported to have infuriated Oki-
nawa’s residents who wanted the base off their
island. Hatoyama explained to his compatriots
that recent tensions on the Korean Peninsula had
brought the importance of the Japan-America
203 Pan Africa & World Review 2nd Quarter 2010

Naoto Kan elected new Prime Minister


N aoto Kan, 63, the same age as his outgoing

predecessor Yukio Hatoyama, was elected
Japan’s Prime Minister Friday, June 4th, by the
country’s Parliament, moving him up from the
Economy & Fiscal Policy portfolio he had held
since the Democratic Party of Japan took over
government in the September 2009 elections.
"My task is to rebuild this nation," Kan pro-
claimed after being chosen ruling party chief. He
pledged to confront problems linking "money and
politics," and stressed the need to spur economic
Kan received 313 out of 477 lower house
parliamentary votes to put him in Japan’s top po-
litical office. Liberal Democratic Party leader Sa-
dakazu Tanigaki was second with 116 votes. Par-
liament’s upper house approved Kan’s election Prime Minister Naoto Kan speaking following his election
immediately thereafter. Prior to Friday’s full Par-
liament vote, the DJP met in the morning and He pledged to resume fiscal reforms and work
elected Kan its new leader. towards sustainable finances, including possible
In his acceptance speech following the vote tax hikes, to ensure a strong social security system
Kan, vowed, "We will work together as one in the for Japan's aging population. Addressing concerns
about financial scandals, he vowed to keep politics
face of the tough political situation and the up-
clean and tighten campaign financing laws, accord-
coming upper house election and fight together
unified," noting, "Our first priority is to regain the ing to China’s People’s Daily Online.
trust of the people." That was in reference to the Acknowledging his plebian background com-
DPJ government’s declining popularity under his pared to recent aristocratic Japanese prime minis-
predecessor; and perhaps also an acknowledge- ters, Kan who entered Parliament in 1980, said on
ment of the governance crisis implications of him Thursday, the day before being chosen, "I grew up
being Japan’s fourth prime minister in four years. in a typical Japanese salaryman's family… I've had
Kan referred to the U.S.-Japanese alliance as no special connections. If I can take on a major
the cornerstone of his country’s foreign policy role starting from such an ordinary background,
while stressing the importance of Japan’s ties that would be a very positive thing for Japanese
politics." Actually, his father was an industrial ex-
with its regional neighbors. "With the U.S.-Japan
alliance the cornerstone of our diplomacy, we ecutive.
must also work for the prosperity of the Asian Kan an outspoken populist, who while Minis-
region," Kan said ahead of the ruling party vote. ter of Health in 1996 exposed a government cover
In a written statement issued prior to voting up of HIV tainted blood products that caused thou-
Kan said, "I will tackle and pull Japan out of defla- sands of hemophilia patients to contract the virus
tion through comprehensive measures from the that causes AIDS, is known for standing up to Ja-
government and the Bank of Japan," indicating he pan’s powerful bureaucracy.
intended working closely with the central bank. Naoto Kan is a 1970 graduate of the Tokyo
Institute of Technology specializing in patents.
204 Pan Africa & World Review 2nd Quarter 2010

Kyrgyzstan climbs democracy ladder


M ountainous former Soviet Republic Kyr-

gyzstan with a nominal per capita income
of only $851 ($2,253ppp per capita), 40% of its
population below the poverty line and 18% un-
employment, is one of the poorest countries in
the world, though per capita income has halved
since the collapse of the Soviet Union; but among
the country’s population of 5.5 million aspirations
for democracy have remained strong despite dis-
appointment from successive leaders, including
political undermining of constitutional reform
efforts. Kyrgyzstan’s Transitional Government
President Roza Otunbayeva
Kyrgyzstan under the leadership of President
Askar A. Akayev significantly preceded Russia, former Soviet Republics. International develop-
then led by the late Boris Yeltsen, in resisting the ment assistance flowed into Kyrgyzstan in respect
attempt by hard-line communist to stage a coup of Akayev initiated reforms.
d’état against the reformist government of Mik- A new constitution in 1993 created a parlia-
hail Gorbachev in August 1991. Akayev, a physi- mentary system in which head of government
cist, had earlier in 1991 been elected president of functions were transferred from the President to
the Kirgiz Soviet Socialist Republic within the Un- the Prime Minister. Despite opposition in parlia-
ion of Soviet Socialist Republics by Parliament. He ment to President Akayev’s reform policies voters
was chosen during the Gorbachev reform era as a endorsed his economic policies in a 1994 referen-
liberal academic who had been a Communist dum. Akayev again called for a referendum in
Party member for only ten years, during which his 1996, after being re-elected the previous year, on
distinguishing role was as a member of the USSR constitutional amendments to transfer certain
Academy of Sciences and President of the Kirgiz powers from Parliament to the president, arguing
Academy of Sciences. He severed his ties with the that this was necessary for continuation of eco-
Communist Party in the wake of the August 1991 nomic restructuring. Akayev won the referendum
coup attempt and as Kyrgyzstan prepared to join overwhelmingly but as living standards fell owing
other Soviet Republics in declaring independence to the loss of communist era employment and so-
the country’s electorate placed their hopes for cial service guarantees opposition mounted, to
democracy development in Askar Akayev, elect- which Akayev became increasingly intolerant.
ing him president by direct universal adult suf- Critical politicians were imprisoned and newspa-
frage in October ’91. pers closed.
Akayev set about transforming the commu- Nevertheless, Akayev was re-elected in 2000
nist economy into a free market one, in the proc- with 74.5% of the vote. In 2002, political unrest
ess making Kyrgyzstan the first former Soviet re- erupted in the most economically suppressed and
public to introduce its own currency, som. He politically marginalized Southern region of Kyr-
also established economic ties with the United gyzstan, following arrest of an opposition politician
States and other Western nations, while Kyr- from the region, Azimbek Beknazarov. Several pro-
gyzstan joined the Commonwealth of Independ- testers were killed and dozens wounded when po-
ent States (CIS) comprised of Russia and other lice fired on a crowd in Aksy. More demonstration
205 Pan Africa & World Review 2nd Quarter 2010
Asia/Kyrgyzstan/Politics Kyrgyzstan climbs democracy ladder
flared up demanding those responsible for the
casualties be brought to justice. Several regional
prosecutors and police were subsequently sen-
tenced to prison over the attack on demonstra-
tors, but critics insisted that senior officials who
authorized the use of force should have faced
trial. In February 2003, amidst mounting opposi-
tion, President Akayev held another referendum;
this time on whether he should resign or serve
out his term through 2005 and also on a package
of constitutional amendments, including an
amendment guaranteeing former presidents im-
munity from prosecution for actions while in of-
fice. According to official results, Akayev once
again won an overwhelming referendum victory.
Local and international observers maintained
there were numerous voting irregularities.
The approved amendments left Kyrgyzstan
with a single chamber 75 member Parliament
(officially known as Jogorku Kenesh) and the sys-
tem of proportional representation was replaced Above Kyrgyzstan’s second president (2005-2010), Kurmanbek
by “first past the pole”, provoking accusations Bakiyev and below first president (1991-2005) Askar A. Akayev
that they were part of Akayev’s strategy to
strengthen his position ahead of his mandate’s
expiration at the end of December 2005.
Ahead of the February 2005 parliamentary
elections many politicians were disqualified from
contesting, sparking mass protests that continued
into March when protesters stormed government
buildings in the capital, Bishkek. Akayev’s party
had won an overwhelming majority in the elec-
tions but with election observers as well as the
opposition rating them seriously flawed President
Akayev became the focal point of unrelenting
demonstrations. Akayev fled the country, seeking
refuge in Russia, and formally resigned on April 4,
The newly elected Parliament accepted his
resignation on April 11 and scheduled presiden-
tial elections for July. The main leader of the
“Tulip Revolution” protest that brought Akayev
down, opposition leader Kurmanbek Bakiyev won
a landslide victory with 89% of the vote, becom-
ing post-Soviet Kyrgyzstan’s second president.
The elections were rated free and fair by the Or-
ganization for Security & Cooperation in Europe
(OSCE), which had discredited the March parlia- 2006 demanding his resignation. That very month
mentary elections. President Bakiyev approved a new constitution
Once in office President Bakiyev resisted that limited presidential powers and increased the
making the democratic reforms that had been a power of Parliament. However, before the consti-
principal demand of the uprising he led. Dissatis- tution went into effect in January 2007 Bakiyev
faction with his administration grew until demon- had written in changes returning many key powers
strations in Bishkek broke out during November to the president.
206 Pan Africa & World Review 2nd Quarter 2010
Asia/Kyrgyzstan/Politics Kyrgyzstan climbs democracy ladder
Kyrgyzstan’s Constitutional Court ruled in
September 2007 that the new constitution was
invalid because it had not been approved by ref-
erendum. The Court thereby restored the 2003
constitution. Bakiyev had a new constitution pre-
pared and put to the electorate in a referendum
during October 2007; it won overwhelming en-
dorsement along with a new electoral law. Baki-
yev emerged with power to dismiss the govern-
ment and directly appoint judges and local ad-
ministrators. Independent elections observers
were not uncritical of the way voting was con-
Bakiyev took advantage of his newly af-
firmed constitutional powers to immediately dis-
solve the Jogorku Kenesh and call early parlia- Top, Referendum ballots; below, Uzbek man in Southern Kyr-
mentary elections. Parliamentarians under the gyzstan holds his head in grief after his house was burned in
new constitution would be chosen from central ethnic riots. Tens of thousands of Uzbeks sought refuge across
the border in Uzbekistan.
party lists through a system of proportional rep-
resentation, rather than by direct vote as before.
Elections were held in December 2007; Bakiyev’s
new political party, Ak Zhol (Bright Path), won an
overwhelming majority in the legislature. The
opposition faired badly under the new electoral
law requiring parties to receive more than 5 per-
cent of the national vote as well as a certain num-
ber of votes in each region. International moni-
tors rated the election flawed.
The public increasingly complained of nepo-
tism and corruption within President Kurmanbek
Bakiyev’s administration. His brother Janysh Baki-
yev headed the presidential guard, brother Marat
Bakiyev was Kyrgyzstan’s ambassador to Ger- offer to resign provided he was given safe passage
many, another brother Adyl Bakiyev was advisor out of the country along with him family, as a
to the country’s ambassador to China and the popular outcry that he be brought to justice for
president’s son Maksim was responsible for sup- the lives lost under fire from the police could not
plying fuel to Manas International Airport, which easily be ignored by the transition government
hosts a U.S. airbase. The president was also ac- that took over on April 8. Finally, on April 15 Kur-
cused of transferring $35 million from a $300 mil- manbek Bakiyev flew to neighboring Kazakhstan
lion loan received from Russia into his own ac- along with his wife and two children, having signed
count. a formal letter of resignation prior to his depar-
Civil unrest broke out on April 6, 2010 in Ta- ture. Kazakhstan, in its capacity as the rotating
las, 116 miles southwest of Bishkek to where it chair of the Organization for Security and Coopera-
spread the following day. Bakkiyev announced a tion in Europe, announced that its president, along
state of emergency and unleashed police on the with the presidents of the United States and Russia
protestors, who nonetheless attacked the radio helped arrange for Bakiyev to leave the country,
and television stations as well as President Baki- calling it "an important step toward ... the preven-
yev’s office, prompting him to flee to his home- tion of a civil war in Kyrgyzstan."
town Jalal Abad, about 30 miles north of Osh, Head of Social Democratic Party of Kyrgyzstan
Kyrgyzstan’s second most populous city, in the parliamentary caucus Roza Otunbayeva, who had
southwestern quarter of the country. According been a key leader behind Bakiyev in the Tulip
to reports at least 80 people died in clashes with Revolution, was selected by opposition parliamen-
police, which complicated Bakiyev’s April 13th
207 Pan Africa & World Review 2nd Quarter 2010
Asia/Kyrgyzstan/Politics Kyrgyzstan’s climbs democracy ladder
tarians to head the interim government. Roza, a
university philosophy don and former commu-
nist, had served as acting foreign minister in the
interim period prior to Bakyiev’s election as presi-
dent in July 2006.
Kyrgyzstan’s security agency accused exiled
Bakiyev of collaborating with Islamic extremists
to instigate ethnic riots in the southern part of
the country that left an estimated 2,000 people
dead and 400,000 ethnic Uzbeks homeless. The
ethnic conflagration in which majority Kyrgyz bru-
tally turned on minority Uzbeks was said to be
ignited by gunmen Bakiye’s kinsmen hired to
shoot at people from both ethnic communities.
Uzbeks accused the security forces of shooting Maksim Bakiyev, born October 27, 1977, youngest son of ex-
them. president Kurmanbek Bakiyev, law graduate and businessman,
Explaining how the former president was was widely believed to be Kyrgyzstan’s richest fellow. Following
culpable, the security agency alleged that two of the ouster of his father he was charged by the interim govern-
Bakiyev’s relatives met with Taliban representa- ment with embezzlement and abuse of power. Prosecutors al-
tives, leaders of the Islamic Movement of Uzbeki- leged that companies he owns owed almost $80 million in
stan (IMU) and Tajik militants in Afghanistan dur- taxes on aviation fuel sales income.
ing May to discuss plans to trigger unrest in Kyr- Maksim was reportedly on his way to Washington for a
gyzstan. The Kyrgyzstan security alleged that IMU series of meetings when the uprisings that deposed his father
occurred but he never kept his appointments and is believed to
were offered $30 million by Bakiyev who had
have diverted to and held up in Latvia. In May Interpol posted
moved from Kazakhstan to Belarus. The security Maksim as wanted on its website. Also in May, an audio re-
also accused Bakiyev of trafficking heroin from cording was posted anonymously on YouTubue website with a
Afghanistan through Southern Kyrgyzstan where caption that the voices were those of Maksim and his uncle
the rioting started on June 10th– about 20 metric Janish Bakiyev. The two were discussing plans to arm groups to
tones a year. spread chaos across Southern Kyrgyzstan sometimes during
According to Associated Press, “Since the June.
1991 Soviet collapse the densely populated, im- Kyrgyz deputy prime minister Almazbek Atambayeev al-
poverished and conservative Fergana Valley that leges that the Bakiyev fellows financed the riots from their
Kyrgyzstan shares with Tajikistan and Uzbekistan pockets.
has become a breeding ground for fundamental- would be held soon, she said.
ist Islamic groups, including the al Qaida-linked While Washington commended Kyrgyzstan
IMU.” for the step forward Russian President Dmitry
On June 14th the former president’s son Medvedev expressed skepticism that the former
Maksim Bakiyev was arrested when he flew into Soviet Republic could manage the European style
the United Kingdom’s Farnborough Airport in parliamentary system it had voted to adopt, saying
Hampshire in a privately hired jet. Kyrgyzstan’s it could lead to a "collapse of the state" as
transition government demanded his extradition. "eventually, won't it enable the political parties,
Referendum on a new constitution was held which have extremist direction, to receive the
on June 27, 2010. The proposed constitution de- power?" This view was dismissed by interim gov-
creased presidential powers and would make Kyr- ernment deputy leader Omurbek Tekebayev who
gyzstan Central Asia’s first country where a Prime suggested the Russia leader was mislead by his
Minister elected from Parliament would be head intelligence operatives in Kyrgyzstan who had long
of government business. At night on the 27th been in cahoots with the oligarchs.
interim president Roza Otunbayeva announced
that the constitution had won the electorate’s
endorsement. She was thereby scheduled to be
sworn in as full president in mid July but would
be ineligible to stand in the presidential election
scheduled for late 2011. Parliamentary elections
208 Pan Africa & World Review 2nd Quarter 2010


North Korea dares

the world

North Korea “Eternal Leader” Kim Il-Jong visiting the September General Iron Enterprise in his country’s North
Phyongan Province

T he crisis over the March 26 sinking of the

1,200 ton South Korean warship
“Cheonan” corvette heightened as an interna-
ity, halting trade with DPRK, banning its mer-
chant ships from entering South Korean waters
and suspending humanitarian aid for DPRK chil-
tional investigation team citing North Korean dren. North Korea’s economy is already hurt by
marks on the torpedo that destroyed the ship UN sanctions aimed at getting Pyongyang to
pointed the finger of blame at Pyongyang. abandon its nuclear weapons program. Pyongy-
South Korea referred the matter to the United ang threatened to withdraw from its non-
Nations Security Council on June 4th with sup- aggression pact with the South if Seoul contin-
port from the United States. However, both ued its allegations that North Korea sunk the
South Korean President Lee Myung-bak and Cheonan. Pyongyang also threatened to prevent
United States President Obama refrained from South Korean access to the industrial zone
engaging North Korea in its threat that fresh jointly operated by the two countries six miles
sanctions or other retaliation would trigger "all- north of the Korean Demilitarized Zone separat-
out war." The impression is clearly given that ing the economically weak North from the well
while South Korea, its principal ally, the U.S., and industrialized South, immediately expelling 8
the international community are intent on con- South Korean government officials from Kae-
taining the crisis within the limits of condemna- song Industrial Park. One hundred and twenty
tions and sanctions that further isolate North one South Korean companies own factories in
Korea, the militarist Workers’ Party regime in Korea Industrial Park (KIP).
Pyongyang has rushed to raise the stakes to in- A May 21st statement from the North Ko-
vasion of the immensely more prosperous rean Ministry of Peaceful Unification said:
South. "North Korea will react harshly and mercilessly,
Following the investigation conclusion that including by the freezing of inter-Korean rela-
a North Korean torpedo had sunk the Cheonan, tions, complete annulment of the nonaggression
Seoul targeted the North’s economic vulnerabil- pact and comprehensive winding up of work on
209 Pan Africa & World Review 2nd Quarter 2010
Asia/Korea/Geopolitics North Korea dares the world

South Korea’s President Lee Myung-bak called for wisdom in dealing with Pyongyang’s provocations
inter-Korean cooperation." Il. The fighting halted in 1953 with a truce but 57
United Nations Secretary General Ban Ki- years later there has yet to be a peace agree-
moon, formerly South Korea’s foreign minister, ment.
expressed hope that the Security Council would United States Defense Secretary Robert
take prompt actions against Pyongyang in the Gates when badgered by journalists as to what
wake of the investigation team conclusion that the U.S. reaction would be declined from com-
North Korea had sunk the Cheonan. "I am confi- mitment but stressed that he accepted South
dent that the council, in fulfilling its responsibil- Korea’s conclusion that the North was responsi-
ity for the maintenance of international peace ble for sinking the Cheonan, killing 46 members
and security, will take measures appropriate to of its crew. The remaining 48 were rescued.
the gravity of the situation," Ban said at a May A few Republican congressmen in Washing-
24th news conference in New York. Ban main- ton suggested the Obama Administration’s re-
tained that prompt Security Council action sponse should be tougher.
would also contribute to the early resumption of While the United States, Europe and Japan
the six-party talks [involving Russia, Japan, were profuse in their criticism of North Korea,
China, the United States and the two Koreas] "to China and Russia, neither of whom were on the
address [Pyongyang's] nuclear issues and other investigation team that after 6 weeks of work
outstanding concerns." concluded Pyongyang’s culpability, were re-
In his initial response to the investigation served in their responses. On May 20th Chinese
team’s report South Korean President Lee officials appealed for calm. Vice Foreign Minister
Myung-bak vowed "stern action" against the Cui Tiankai called the sinking "unfortunate,"
North, but apparently upon reflection he stressing the need to maintain peace on the Ko-
stressed wisdom in dealing with the situation. rean Peninsula while declining to join the posi-
U.S. Joint Chiefs of Staff Chairman Admiral Mike tion that Pyongyang was culpable. Foreign Min-
Mullen during the third week of May said that istry spokesman Ma Zhaoxu told a separate
his country’s 28,000 troops stationed in South briefing later on May 20th, "The parties involved
Korea would not be put on high alert. Interna- should stay calm and exercise restraint ... to
tional forces under the auspices of the United avoid escalation of the situation." Regarding
Nations and led by the United States came to South Korea’s investigation, Ma said China was
South Korea’s rescue in 1950 when it was in- still assessing its results.
vaded by the communist North led by Kim Il Senate Armed Services Committee top Re-
Sung, the late father of current leader Kim Jong- publican Sen. John McCain of Arizona said the
210 Pan Africa & World Review 2nd Quarter 2010
Asia/Korea/Geopolitics North Korea dares the world
U.S. response "must be serious
and immediate" and urged China
to "work more responsibly than it
has thus far for the security and
stability of East Asia."
Secretary of State Hilary Clin-
ton labeling the Cheonan sinking
an "act of aggression that is one
more instance of North Korea's
unacceptable behavior and defi-
ance of international law," ostensi-
bly did not satisfy some Congress-
men. Senator James Inhofe, an
Oklahoma Republican, apparently
alluding to the cautious response
of the Obama Administration, said,
“We cannot continue to dismiss actions by North Cheonan wreckage salvaged from the seabed
Korea as 'more of the same.”
In dismissing the conclusion of the Seoul release on the matter read:
commissioned investigation team, Pyongyang "Hu and Kim exchanged views on the inter-
faulted its composition. In its first press briefing national situation, the situation in Northeast
on the Cheonan sinking, held of May 28, Pak Rim Asia and the six-party talks on the Korean Penin-
Su, head of the Policy Bureau of the Democratic sula nuclear issue. The two leaders said that
People's Republic of Korea (DPRK) maintained peace, stability and prosperity on the Korean
that since the United States is still in "a state of Peninsula is in line with common interests of
war" with the DPRK, and that Britain and Austra- China, the DPRK and the Northeast Asian coun-
lia had taken part in the Korean War, results of tries and expressed their readiness to make joint
the investigation could not be creditable. efforts for denuclearization on the Korean Penin-
The investigation team was comprised of 24 sula."
experts from America, Australia, Britain and Kim also promised to cooperate with Hu
Sweden. Jintao to resume the six party talks. However,
DPRK spokesman Pak alleged that civilian the Chinese and Korean leaders said, "the rele-
members on the investigation team had limited vant parties in the six-party talks should demon-
access to the main work of the investigation and strate sincerity and make positive efforts for
also that some investigators who had divergent pushing forward the six-party talks." This insinu-
opinions were driven out of the team. In arguing ated that harsh moves against Pyongyang by any
that there were contradictions in South Korean of the other parties could jeopardize the pros-
claims about the time, spot and witnesses of the pects of talks’ resumption.
incident, Pak went so far as to accuse Seoul of Kim’s cooperative talk in Beijing contra-
faking the investigation results to serve multiple dicted an April 21 statement from his country’s
objectives, including validation of its anti-DPRK foreign ministry declaring, "We will produce as
policy, justifying continued presence of U.S. many nuclear weapons as we think necessary,
forces in South Korea and diverting responsibil- but we will neither participate in the nuclear
ity for sinking of the warship. Pyongyang on May arms race nor produce them in excess."
20 in rejecting Seoul’s charge that it was culpa- North Korea conducted nuclear tests in
ble in the Cheonan sinking proposed sending a 2006 and 2009, but its payload delivery capabil-
team to South Korea to assess material evi- ity is still questioned by the United States.
dence. Seoul flatly rejected the proposition. John Sudworth writing “How South Korean
During a May 3rd to 7th visit to China, ship was sunk” for BBC News, explained that
North Korean leader Kim Jong-Il told Chinese given the strategic stealth of submarine warfare,
President Hu Jintao that he is committed to de- “It is entirely plausible that a ship, on routine
nuclearization of the Korean Peninsula, accord- patrol in its own shallow waters, would not pick
ing to China’s Xinhua news agency. The Xinhua up any signs of an enemy sub, or even a torpedo
211 Pan Africa & World Review 2nd Quarter 2010
Asia/North Korea/Geopolitics North Korea dares the world
fired from one, on its sonar system.” Sudworth
noted that absence of evidence on the Cheo-
nan’s monitors that it had been fired on with a
torpedo necessitated piecing together evidence
from the wreckage; although it had been deter-
mined early on that the Cheonan had been sunk
by an explosion.
Most torpedoes fired from submarines are
designed to explode near the target, so that
there is no contact but the explosion is strong
enough to destroy it. Sudworth points out that
sea mines are designed to explode in a similar
North Korean Eternal Leader Kim Il-Jong and Chinese President
way, computer detonated when a ship is in close Hu Jintao during Kim’s early May visit to China
enough proximity to be destroyed. Eventually
the investigating team found the propellers, a that China had no first-hand information" to
propulsion motor and a steering section of a tor- blame the maritime incident on the North and
pedo that they determined were a perfect will draw its own conclusion after carefully
match for a model known to be manufactured studying all information provided by the par-
and exported by North Korea. The markings, in ties involved. Two of the five Security Council
Korean script, were assessed by the investiga- permanent members, Russia and China, whose
tors to be consistent with those on a previously support or abstention is required to impose
obtained model. The evidence was put on dis- sanctions, stressed restraint in responding to
play at a May 20 news conference and said to the incident and the investigation report with-
represent proof that a 1.7 ton torpedo with a out mentioning Pyongyang’s alarming threats.
net explosive weight of 250kg sunk the Cheo- With Moscow and Pyongyang’s principal
nan. ally Beijing calling for restraint and six party
Other evidence cited in the 24 member in- talks resumption, and South Korean President
vestigation team’s report is that a number of Lee Myung-bak left with no politically tenable
small submarines escorted by a support ship left option other than referring the evidence impli-
a North Korean naval base in the Yellow Sea a cating North Korea in the Cheonan sinking to
few days before the Cheonan was sunk and re- the UN Security Council, Kim Jong-il’s regime
turned a few days afterwards. persisted in belligerent talk that constituted an
Considering the possible motive for North affront to the entire international community.
Korea to launch such a crisis laden attack, Sud- If China’s realpolitik in the premises entails
worth points out that over the past decade accommodation of the Pyongyang regimes
there have been several sea clashes between wackiness, it seems too much to ask the rest of
South and North Korean vessels in their dis- the world to equally pamper the nuclear
puted sea boundary and in one such incident armed sabre rattling North Koreans. We are all
last November a North Korean vessel was left in left wondering whether Beijing has sufficient
flames with causalities among its crew. influence over Pyongyang to prevent it from
On June 3rd Russia announced that it had executing its violent threats.
sent experts to South Korea to examine the sal- Ultimately, South Korea has to affirm a
vaged Cheonan wreckage and the torpedo found vision towards Korean unification and employ
in the vicinity of the sinking. The Russian deci- policies to that end. That Pyongyang has a Min-
sion was praised by the U.S. China was also in- istry of Peaceful Unification indicates it is not
vited to send examining experts but declined to adverse to reunification, but as the South is a
do so. In late April as tension over the Cheonan prominent country in the global mainstream, is
sinking heightened Moscow urged quick re- wealthy and rapidly progressing, only it can sit
sumption of the 6 party talks. in the driver’s seat in a reunification quest, just
Chinese foreign ministry spokesman Qin as it was West Germany that spearheaded Ger-
Gang had said following the May 26 investiga- man unification. Interestingly, 20 years hence
tion team report concluding Pyongyang was the an East German, Angela Merkel, leads the uni-
culprit responsible for the Cheonan’s sinking fied country. Indeed, post communist East
212 Pan Africa & World Review 2nd Quarter 2010
Asia/Korea/Geopolitics North Korea dares the world

South Korea’s capital Seoul is one of the world’s top 10 financial centres

Germany was anxious to leave the communist Supporters of the ‘Sunshine Policy” argue
past behind and willing to reunite, but it was that sanctions and threats from Washington
West Germany that would have to bear the and Seoul have harmed, rather than im-
costs and sacrifices involved, the immediate de- proved, prospects for reunification. They ar-
cline in national per capita income and finance gue that if the North Korean government does
alleviation of the wealth disparity between West not feel threatened by South Korea or the
and East. The per capita income disparity in Ger- United States, it will have nothing to lose and
many was 3:1 ($25,000 for West, about $8.500 everything to gain from dialogue and engage-
for East); in Korea it’s 15:1 ($27,500 for South; ment with the outside world, and will have no
$1,800 for North). Moreover, East Germany’s reason to build weapons of mass destruction.
population was only a third that of the West (17 Many argue that the only alternative to dia-
million to 60 million) whereas North Korea’s logue is an unacceptable military outcome.
population is half that of the South (22.7 million The Sunshine Policy was introduced by the
to 48.6 million). Germany was divided for 44 Millennium Democratic Party under President
years, whereas Korea has been divided for 60 Kim Dae-jung, (1998-2003) and was continued
years and the North is far more isolated from by President Roh Mu-hyun (2003-2008).
contact with and information about the rest of South Korea's Hyundai company, where cur-
the world than was East Germany under Com- rent South Korean president Myung-bak was
munism. formerly CEO, played a major role in pioneer-
The process towards Korean unification was ing commercial links with the North.
put in motion by the North-South Joint Declara- South Korean Unification Church mem-
tion in 2000 wherein the two countries agreed bers in 2003 launched "The Party for God,
to work towards peaceful future unification. Peace, Unification, and Home," declaring it
Several weeks later a United Nations General would focus on preparing for the reunification
Assembly resolution sponsored by 150 countries of South and North Korea by educating the
endorsed the unification intention declaration. public about God and peace. About 62% of
Advocacy of North-South unification has become North Koreans are Buddhist. Nonetheless, in
known in the South as the “Sunshine Policy”. 1988 the Pyongyang regime held the Interna-
- 213 Pan Africa & World Review 2nd Quarter 2010
Asia/North Korea/Geopolitics North Korea dares the world

What used to be South Korea’s Cheonan Warship

tional Seminar of Christians of the North and terested in a confederation arrangement

South for the Peace and Reunification of Korea wherein North and South retain their current
in Switzerland. governments and systems. This indicates the
President Lee Myung-bak said prior to the Pyongyang regime’s desire to reap economic
Cheonan crisis that he planed to visit Pyongyang and international political advantages from the
sometime during 2010. Departing from his South without giving up its militarist monarchi-
Grand National Party’s traditional hard-line cal political culture. In North Korea’s 2009 con-
against North Korea, he proposed seeking a Ko- stitution no mention is made of Communism.
rea economic community agreement. The The state ideology now is Juche, which the late
United States is apparently supportive of Koran Kim Il Sung conceptualized as man’s mastery of
unification under a democratic system as a the universe and in North Korean context strict
counterweight to China in the Asian Pacific. Ja- self-reliance and independence from outside
pan appears to have a similar view. Russia under interference or influence. This is at sharp vari-
Putin tended to favour maintaining the status ance with the substantial globalization orienta-
quo as a united democratic Korea would pre- tion of South Korea.
sumably be a close ally to the United States. Militancy is a central feature of North Ko-
China might also see nothing to gain from a rea’s Juche ideology and all aspects of life are
united democratic Korea and prefer the status infused with military spirit and methods. School
quo. leavers are reported to serve unusually long
Opponents of the Sunshine Policy argue compulsory military service. This has informed
that the North has no real interest in reunifica- North Korea’s bellicosity. In 1998 Kim Jong-Il
tion and that cooperation with Pyongyang has abolished the post of president and in assuming
only served to prop up its corrupt, totalitarian the post Chairman of the National Defence Com-
regime. They point out that South Korea has mission affirmed it as the highest office of state
received neither economic nor political benefit authority. The Supreme People’s Assembly is-
from all the money it has pumped into the sued the confirming decrees. North Korea is
North. For now President Lee Myung-bak’s thus a militarist society ever ready, if not anx-
Grand National Party is a base of the opponents ious for war; ostensibly most especially with the
of the Sunshine Policy and the Cheonan sinking prosperous “bourgeois South”, against whom it
has vindicated their position. no doubt measures the validity of its ideology.
Actually, North Korea’s regime is more in-
214 Pan Africa & World Review 2nd Quarter 2010
Asia/Korea/Geopolitics North Korea dares the world
(Top right) Pyongyang skyline; (center) a Pyongyang
street; (bottom) Bong Su Church in Pyongyang

Pyongyang is an inland city in the southwestern part

of North Korea and has a population of about 3.5
million within an area of 3,194 (1,233 sq.
miles). .

Various reports lead us to believe that Kim

Il-Jong’s youngest son, Kim Jong-Un, born in the
early 1980s has been designated the heir appar-
ent and that his birthday is now a national holi-
day. He is said to have schooled in Switzerland
before doing his studies at Kim Il-Sung University
and to speak English, German and French. His
former Japanese chef describes him as athletic
and indomitable. Former sushi chef Kenji Fuji-
moto in a memoir wrote the youngest son of
Kim Il-Jong is a "chip off the old block, a spitting
image of his father in terms of face, body shape
and personality''. However, more recent reports
claim he is now overweight and diabetic, though
still in his late 20s. The only photo of Kim Jong-
Un in circulation is one of him at 11 while at-
tending school in Bern, Switzerland in the iden-
tity disguise of a North Korean diplomat’s son.
As a virtually absolute monarch Kim Jong-
Un may prove no easier to deal with than his
father, but as a man of the 21st century he could
conceivably realize the Sunshine Policy will lead
Korea to a higher place in the world, probably
super power status that neither North nor South
Korea separated are on the road to attaining. If
he’s objectively intelligent he will also realize
that South Korea is already among the world’s
leading nations while isolated and poor North
Korea will continue losing ground in the race of
nations through the coming decades. Alterna-
tively, the next Eternal Leader could end up de-
posed in a revolt or coup d’état.

215 Pan Africa & World Review 2nd Quarter 2010

Asia/Pakistan/ Constitutional Reform
Monday April 19, 2010

President Zardari signs 18th Amendment Bill into law

Pakistan’s President Asif Ali Zadari signed constitutional reform bill transferring governing powers from his
office to that of the Prime Minister
ISLAMABAD: President Asif Ali Zardari on Monday not attend the ceremony.
signed the 18th Constitutional Amendment Bill to Minister for Law, Justice and Parliamentary
make it part of the Constitution in what is billed Affairs Dr. Babar Awan conducted the proceed-
as a smooth ‘political transition’ of power from ings at the ceremony. Though opposition leader
the Presidency to the Prime Minister’s House. in the Senate Wasim Sajjad was present, his party
The law ensures provincial autonomy and re- leadership was absent while Opposition Leader in
stores the 1973 Constitution by cleansing it of all the National Assembly Chaudhry Nisar Ali Khan
the dictatorial amendments that stained it for was also missing from the ceremony but his top
decades. leadership led by Mian Nawaz Sharif was present.
President Asif Ali Zardari gave his assent to With the assent accorded by President Asif
the amendment amidst slogans of “Jeay Ali Zardari to the 18th Amendment, the 1973
Bhutto” (long live Bhutto) at a historic and im- Constitution, which was passed under the leader-
pressive grand ceremony at the Aiwan-e-Sadr on ship of Zulfikar Ali Bhutto has been restored ac-
Monday which was attended by all the top politi- cording to its true spirit i.e. promotion of democ-
cal leadership of the country, including Prime racy and federalism.
Minister Syed Yousuf Raza Gilani, PML-N Quaid “It is indeed a great honour for me to have
Nawaz Sharif, ANP President Asfandyar Wali, Op- signed into law this bill that seeks to undo the
position Leader in the Senate Wasim Sajjad, Sen- undemocratic clauses introduced in the Constitu-
ate Chairman Farooq H. Naek, Speaker National tion by undemocratic rulers. The doors of dicta-
Assembly Dr. Fehmida Mirza, governors and chief torship have been closed forever,” said President
ministers of the four provinces, the president and Asif Ali Zardari while addressing the ceremony
the prime minister of the AJK government, mem- after according assent to the amendment.
bers of the federal cabinet and parliamentarians. “Now, when we have successfully restored
However, the top leadership of the PML-Q did
216 Pan Africa & World Review 2nd Quarter 2010
Asia/Pakistan/ Constitutional Reform
President Zardari signs 18th Amendment Bill into law

President Zardari said the piecemeal amend-

ments were forced upon the nation through ex-
ecutive orders by un-elected rulers only to legiti-
mize their rule. “Those amendments were not
introduced for the benefit of the people or the
cause of democracy. Credit for the first major
constitutional overhaul goes to the democratic
process and the policy of national reconciliation,”
he added.
He said it is a moment of great satisfaction
— indeed of pride — that the Constitution has
been made truly democratic and federal in char-
acter, and provincial rights and parliamentary
sovereignty have been restored. “I am particu-
larly delighted that the 17th Amendment has
been repealed. I am very happy that the people
of Pakhtunkhwa have finally got their identity —
an identity that eluded them for the past many
decades — as their province is renamed as Khy-
ber-Pakhtunkhwa,” he added.
He said the ceremony here and the gather-
ing of the leaders and parliamentarians of all po-
litical parties is a demonstration of the glory of
Prime Minister Yusuf Raza Gilani
democracy and power of reconciliation. “It shows
the democratic roadmap, it is time to work with that democracy and reconciliation can work won-
renewed vigour and enthusiasm to address those ders,” he added.
challenges which are confronting the common He said the Constitution that was first given
man,” said Prime Minister Syed Yousuf Raza Gi- to the people in 1973 had the backing of all politi-
lani while addressing the ceremony. cal parties and provinces while the first major
“The 18th Constitutional Amendment is constitutional reforms package after more than
unique because for the first time the incumbent 30 years also is backed by all the provinces and
president is giving his powers willingly to parlia- political parties. “Just as the nation made great
ment and the prime minister,” said Chairman Par- progress after the adoption of the unanimous
liamentary Committee on Constitutional Reforms Constitution in 1973, we hope that it will make
Mian Raza Rabbani in his address. similar progress after the adoption of the consti-
Addressing the ceremony after giving assent tutional amendments,” he added.
to the bill, President Asif Ali Zardari said his head The president paid tribute to Chairman Par-
bows in gratitude before Allah for giving him the liamentary Committee on Constitutional Reforms
opportunity to sign the 18th Constitutional Mian Raza Rabbani and other members of the
Amendment Bill. “It is indeed a great honour for team, saying he wishes to congratulate all mem-
me to have signed into law this bill that seeks to bers of the constitutional reform committee and
undo the undemocratic clauses introduced in the its chairman Senator Mian Raza Rabbani for ac-
Constitution by undemocratic rulers,” he said. complishing this task. “I congratulate all the po-
The president said the constitutional reforms litical parties and their leaders for rising above
bill that he signed into law is the first major con- party politics and agreeing to constitutional re-
stitutional reform package during the last more forms based on consensus amendments.
than 30 years. “It is fundamentally different from
piecemeal constitutional amendments that have
been made from time to time in the past,” he

217 Pan Africa & World Review 2nd Quarter 2010

Asia/Philippines/Presidential Election

Filipinos choose another

President Aquino

O utgoing Philippine President Gloria

Macapagal-Arroyo and incoming Presi-
dent Noynoy Aquino are both children of for-
mer presidents. They are not political allies,
although their parties, Lakas (Christian-Muslim
Democrats) to which Arroyo belongs, and
Aquino’s Liberal Party are both centrist. Inter-
estingly, Gloria’s father Diosdado Macapagal
was president as a Liberal Party leader. That
was when she was a teenager and Noynoy a
small child. Today, Noynoy Aquino as president Noynoy Aquino stepped into the presidency on June 30th with
of Philippines is expected to clean up the cor- a bullet lodged in his neck during a 1988 assassination at-
ruption and power abuse that flourished under tempt which principally targeted his mother President Corazon
Gloria Macapagal, while the newly retired Aquino. His 2 to 3 pack a day cigarette habit, which he attrib-
president sits in Congress as the elected repre- utes to stress, has people wondering if he has the nerves to
sentative of the 2nd District of Pampanga, cope with the difficulties he’s bound to encounter as he en-
deavors to fulfill the popular expectations behind his election.
where the international airport is named after
her father. Apart from the challenges of shoul-
dering the country’s $150 billion external debt, a day which has not been adjusted since 1989
reducing the budget deficit which is over 50% is insufficient to support a typical Filipino fam-
of GDP and alleviating poverty which grips ily. The incidence of poverty among 4 member
about 40% of the country’s 92 million people, families in 2000 was 23.8% and for families
the new Philippine president is confronted with 9 members or more 57.3%, whereas in
with a political system where patronage and 1985 poverty incidence for families of these
political opportunism are forces stronger than size was 10% and 23% respectively. For a fam-
law. Although Noynoy sponsored a number of ily of 6 the poverty incidence in 2000 was
important bills while a Senator, he has none- 40.5%, all these statistics implying in light of
theless been accused of not distinguishing him- the sub-ten percent unemployment rate that
self as a lawmaker. When asked why as Sena- most impoverished households in the Philip-
tor he did not author an impressive volume of pines have job derived income, whether as an
legislation, Noynoy replied that the Philippines employee or self-employment.
had good laws but the problem was in the im- Philippines has the highest fertility rate in
plementation gap. the Asia-Pacific region and trails Korea, Indone-
Perhaps the greatest dilemma stemming sia and Thailand in savings as a percentage of
from the Filipino economy is that despite the GDP, but the incoming administration should
official low unemployment rate of 7.6%, 40% avoid the error of focusing on family size as a
of the population is said to live in poverty. A hindrance to per capita income growth without
June 2005 Asian Development Bank report on equally addressing the issues of low wages,
poverty, vulnerability and family size in Philip- inequitable national wealth distribution and
pines identifies the country’s 3.5 fertility rate corruption, which not only aggravates eco-
as a factor stagnating per-capita income nomic inequity but also stunts infrastructure
growth. The minimum wage of P89 (about $2) and public service development.

218 Pan Africa & World Review 2nd Quarter 2010

Asia/Philippines/Presidential Election Filipinos choose another President Aquino
Philippines on course to met water supply
Millennium Development Goals
The water supply and sanitation systems in Philip-
pines suffer from low investment, resulting in
increasing water pollution. Only 4% of the popu-
lation is connected to the sewage system. Septic
tanks account for 75% of the sewage facilities. In
metropolitan Manila alone there are about 75
companies providing desludging services. In the
urban area 58% of the houses are connected to
pipe borne water; in the rural areas only 23%,
though when community water pipelines are
taken into consideration 87% of the urban popu-
lation and 82% of rural dwellers have access to
pipe borne water. Philippines is therefore on
course to attain the 2015 Millennium Develop-
ment Goals minimum of 86.6% access, with the
National Water Resources Board targeting 96%
access by the end of 2010. Sanitation service cov-
erage is up to 72% but disposal management in
congested areas needs improvement. The World
Bank multi-donor Water & Sanitation Program
partners with the Filipino in aiming to attain
benchmarks. However, the system water is de-
centralized to the extent that a 2005 World Bank
study identified 5,000 water service providers
operating in the 161,000 square mile
(300, country with population density
of 571 per sq. m/306 per

The Philippines is now classified as one of the
Newly Industrialized Countries (NIC). Industriali-
zation began in the Philippines upon independ-
ence from the United States of America in 1949,
with the manufacturing sector subsequently ex-
periencing periods of ascendency and decline.
When Corazon Aquino became president in 1986
50% of the industrial output was concentrated in
metropolitan Manila and 20% in adjoining areas;
capacity utilization was down to 40%, owing to
decline during the presidency of Ferdinand Mar-
cos. By the middle of 1988 industries were again
working at full capacity and local content laws
had brought about an extent of inter-linkage ex-
ceptional for a country at Philippines stage of de-
velopment. Industrial minerals mined in Philip- Ariel and ground views of the Philippines capital, Manila, one
of the 16 municipalities comprising the 21 million inhabitant
pines include limestone, gypsum, iron ore, mar-
Manila Metropolitan Area. The bottom photo is of Roxas
ble, sulfate, salt and sulfur. Philippines ranks 6th
Boulevard in the heart of Manila Municipality..
among the world’s chromium producers, 9th in
gold and 10th in copper production.

219 Pan Africa & World Review 2nd Quarter 2010

Asia/Philippines/Presidential Election Filipinos choose another President Aquino
Economic revival occurred under Corazon
Aquino’s administration, with the Philippines at-
taining Gross Domestic Product (GDP) growth of
6.7% in 1988. However the trade and govern-
ment budget deficits brought growth down to 3%
by 1990.
Historically, Philippines was one of the first
Global South countries where the manufacturing
sector overtook agriculture in contribution to
GDP. This occurred during the post-colonial in-
dustrialization drive in the 1950s. Over the first
decade of the 21st century industry’s contribution
to GDP hovered around 30%, more than twice
that of agriculture which has been slightly under
15%, while services have contributed in the vicin-
ity of 55%. For 2009, agriculture contributed New Texas Instruments analogue and embedded processing
14.9% to GDP, industry 29.9% and services 55.2%. chips plant in Philippines
Yet, the agriculture sector remained the second
mer capital, is the world’s most voluminous pro-
largest employer at 34% (2009), behind services
ducer of Digital Signal Processor (DSP) chips, as
at 51%, but ahead of industry’s 15% contribution
well as all the chips used in Nokia cell phones and
to employment. Unemployment in July 2009 was
80% of those used in Ericsson cell phones world
officially 7.6%.
wide. Texas Instruments in April 2009 launched
Pushing ahead with the $6 billion industrial
production at its new $1 billion plant in the Clark
investment program adopted by Marcos in 1979,
Freeport Zone at Pampanga.
the Corazon Aquino administration established
As industrial technology is continually im-
an operational copper smelter-refinery, coco-
proving the new administration is faced with the
chemical manufacturing and phosphate fertilizer
challenge of assuring sufficient financing capacity
projects, while rehabilitating and expanding the
for Filipino industries to keep modernizing and
cement industry. The Board of Investments in
stay competitive. For 2009 the Philippines trade
1990 approved manufacturing projects valued at
deficit was $8.6bn, informed by exports of
$1.48 billion. Industrial establishments gradually
$37.2bn offset by imports of $45.8bn.
became more evenly spread throughout the
According to former Arroyo economic advi-
country during the Aquino and Ramos admini-
sor Joey Salceda surveys showed as early as April
strations and small and medium scale industries
2010 that if Noynoy Aquino became president
became more numerous– producing handicrafts,
the rate of foreign and domestic investment in
furniture, electronics, garments, footwear, and
Philippines would increase from the current 15%
canned goods. Although small and medium scale
of GDP owing to confidence that the new leader
industries accounted for only a quarter of manu-
would better manage the economy than his
facturing value added (MVA), they provided 80%
predecessor. Salceda predicted 682,000 jobs
of the country’s manufacturing employment. In
would be created in the first 18 months of
heavy industry the rise of conglomerates proved
Noynoy Aquino’s presidency.
inevitable. A Senate inquiry in 1990 determined
Both Salceda and Noynoy were outgoing
that 8 of the county’s 17 cement manufacturing
president Gloria Arroyo’s economics students at
companies were under the control of a single
Ateneo de Manila University.
Salceda stressed the importance of efficient
Automobiles produced in the Philippines
tax administration for the economy to optimally
include BMW, Toyota, Volvo, Ford, Mitsubishi
improve. Liwayway Vinzons-Chato, a former Bu-
and Nissan, as well as ABS used in Mercedes-
reau of Internal Revenue chief under the Ramos
Benz. Intel has been in the Philippines for 28
administration, said in April that the high public
years, now producing state of the art Pentium
trust in Aquino will translate to better tax collec-
processors. The 20 year old Texas Instruments
plant in Baguio, a city originally established by the
American colonial regime as the country’s sum-
220 Pan Africa & World Review 2nd Quarter 2010

Benigno Aquino III’s Inauguration

t his June 30th inauguration Phil-
A ippines new president Benigno
Aquino III promised to lead his coun-
try to prosperity, peace and progress,
saying this was the legacy he was
blessed to have received from his par-
ents, the late President Corazon
Aquino and his father, assassinated
opposition activist Senator Benigno
Aquino II. Speaking plainly the 50 year
old former legislator declared, “No
more cheating, no more patronage
politics, no more stealing. It’s time to
help one another.”
The new president in his inaugu-
ral speech promised to bring peace to Benigno Aquino III taking the oath of office as the Philip-
Southern Philippines where Muslim militants pines 15th president; in the background are his two sisters,
have long waged an armed rebellion and to es- Kris (left) and Pinky (right)
tablish an independent Truth Commission to
investigate the administration of outgoing presi-
dent Gloria Macapagal-Arroyo.
Aquino refused to have his oath of office
administered by the recently appointed Su-
preme Court Chief Justice, maintaining that he
was one of the corrupt unacceptable appointees
of the outgoing administration.
Although the inauguration was held at the
presidential palace, Aquino said he would reside
at a simpler house nearby.
About half a million people attended the
inauguration, including former Filipino presi-
dents Fidel Ramos and Joseph Estrada. Outgoing
president Arroyo left after her final protocol ex-

The bachelor president entertaining guests at his inaugura-

tion party, singing a song. Noynoy as he is affectionately
called habitually moves freely among crowds.
Aquino’s cabinet appointees, announced the day be-
fore his inauguration, have been widely commended by po-
litical analysts.

Aquino’s supporters at the inauguration

221 Pan Africa & World Review 2nd Quarter 2010

Asia/Thailand/Political Crisis

Thailand: The Cost of Foresight Paucity

By Muhammed Kamil


P olitical tension has troubled Thailand since

billionaire Prime Minister Thaksin Shi-
nawatra was overthrown by the military while
out of the country in 2005. Chamlong Srimuang,
who in 1994 as leader of the Palang Dharma
Party brought Thaksin into the political arena,
expressed regret in the wake of the coup that he
had got "such a corrupt person" into politics.
Thaksin, while using the power of office to aug-
ment the wealth he had earned as a telecommu-
nications entrepreneur became highly popular
owing to policies he introduced to alleviate rural
poverty. In four years under Thaksin rural poverty
was reduced by half, as he became the first Thai
Prime Minister ever to serve a full term and win
re-election, with the highest voter turnout in the
country’s history no less, running under the ban-
ner of Thai Rak Thai which he founded in 1998.
Thaksin was accused of "policy corruption,"
whereby his infrastructure developments and
liberalization policies aided companies that were
owned by his family members. Officials at the
National Institute of Development Administration
maintained that Thaksin’s projects as Prime Min-
ister ran 30% over cost, costing the state an addi-
tional 400 billion baht (about $8.9 billion). The
coup had been bloodless and Thaksin was subse-
quently convicted in abstentia for conflict of in-
terests. He sought political asylum in the United
Kingdom but after his conviction by the Thai
court $4.2 billion of his assets were reported to
have been frozen by the U.K. The government in
London neither confirmed nor denied this report
which appeared in a late 2008 edition of Arabian From top: Red Shirt protestors besieged Bangkok’s Com-
Business magazine, but the British Home Office mercial Center demanding early elections and the resigna-
did revoke his visa and the British Embassy in tion of interim Prime Minister Abhisit Vejjajiva; (middle)
Bangkok sent e-mails to airlines that he should police were eventually brought in to dislodge the Red
not be allowed to board any flight headed for the Shirts, resulting in deaths among both the security forces
U.K. He now has Montenegrin citizenship. and protestors. (Below) Protestors at first resisted police
Thaksin’s supporters regrouped and won the but fled as the police assault intensified. The Thai authori-
December 2007 elections as the People Power ties maintained that cashes of weapons were found left
behind by the fleeing Red Shirts. TIME/CNN photos
Party. The victory provoked demonstrations by
222 Pan Africa & World Review 2nd Quarter 2010
Asia/Thailand/Political Crisis Thailand: The Cost of Foresight Paucity
anti-Thaksin activists styled the “Yellow Shirts”.
The protests continued for several months, dur-
ing which time the Yellow Shirts occupied two
airports causing flight cancellations that stranded
thousands of passengers. In December 2008, a
month after the airport siege, Thailand’s Consti-
tutional Court ruled that the People Power Party
was guilty of electoral fraud. The court dissolved
the party and Parliament chose Abhisit Vejjajiva
as the country's new prime minister while Thak-
sin’s red clad supporters protested outside. The
United Front for Democracy Against Dictatorship
(UDD), commonly known as Red Shirts, mounted
pressure on Abhisit to call early elections, but he
continually rationalized that conditions were not
yet suitable.
Ahead of the court ruling on whether former
Prime Minister Thaksin Shinawatra’s wealth
would be seized sequel to a corrupt earnings con-
viction, the world expected the worst if the ruling
went against the popular exiled billionaire politi-
cian. Verily, on February 10, 2010, the Supreme
Court found Thaksin guilty of having gained ab-
normal wealth from abuse of power and ordered
45 billion baht (a little over $1 billion) of his as-
sets froze. Thaksin accused the court of having
been infiltrated by his enemies. The Red Shirts,
supporters of Thaksin poured into the streets de-
manding new elections, calling attention to Prime
Minister Abhisit Vejjajiva not having been elected
by popular suffrage. Abhisit unflaggingly insisted
that conditions were not right for elections. To
demonstrate the passion behind their demands
the Red Shirts splattered government buildings
and the Prime Minister’s residence with blood
they had collected during a blood donation cam-
It was clear that Prime Minister Abhisit Ve-
jjajiva had no choice but to concede Red Shirt
demands for early elections or the crisis would
escalate and continue indefinitely. In April two
people were killed and 135 injured during a clash
between Red Shirts and government supporters.
Abhisit knew it was better to avoid violence and
he allowed the Red Shirts to carry on their largely
peaceful demonstration. Also, he had met with
them on March 28, but no agreement was
reached. The Red Shirts were demanding immedi-
ate resignation of Abhisit’s government, to be
followed by parliamentary elections. On May 3,
2010, after a series of grenade attacks and sev-
eral deaths, including 2 police officers and a sol-
TIME/CNN photos
dier, Abhisit offered to hold elections in Novem-
223 Pan Africa & World Review 2nd Quarter 2010
Asia/Thailand/Political Crisis Thailand: The Cost of Foresight Paucity
ber if the Red Shirts ended their blockade of
Bangkok’s commercial center. By then the bitter-
ness on both sides was flaming in tune with the
violence. The Red Shirts who had earlier indicated
that they would compromise if elections were
scheduled before the end of this year now de-
manded that Abhisit not only leave office imme-
diately but get out of Thailand. Abhisit reacted
withdrawing the offer of November elections.
That former Pri