The
Commission for Africa Report
The Commission for Africa Report
acknowledges that Africa is still in a debt crisis which is wrecking
health services, education systems and environments.
The Report recognises that
the process put in place to resolve this crisis - the "Heavily
Indebted Poor Countries Initiative" - is far too slow and narrow,
with only four countries having achieved so-called "sustainable"
debt levels by meeting its overly demanding criteria.
Tony Blair has described
the report as being "unflinching" in its criticism of
both African and Western élites in causing the crisis, and
it is fair to say that the tone of the Report does reflect the growing
public awareness in the West that our dealings with Africa are the
cause of devastating poverty. But these fine sentiments are totally
undermined by the Report's silence on four crucial issues.
1.The Report recognises that the
excessively liberal economic conditions imposed by the International
Monetary Fund (IMF) in exchange for debt relief have too often blocked
progress on debt and development issues. It recommends that, in
future, the only condition for debt relief should be that a country
has a good strategy for using the money released for development,
growth and poverty reduction. But the IMF will still have the final
say in whether a country's proposed strategy does indeed count as
"good", and the IMF is still in the grip of a right-wing
economic ideology which is increasingly believed to be the real
cause of global poverty. The Report was a powerful opportunity to
challenge this: instead it remained silent.
2.The report calls for cancellation of
the massive debts owed to the IMF, but does not mention the most
obvious way of doing this - namely, through a carefully controlled
sale of its gold stocks. The US has an effective veto on IMF decisions
and is unlikely to support gold sales. Gordon Brown could have used
the Report to put pressure on the US - but again the report is silent
and the chance was missed.
3.Instead, the report concentrates on Gordon
Brown's proposals for an International Finance Facility (IFF), which
is supposed to double aid flows in the short term by borrowing from
financial markets. There is a growing consensus that the IFF will
at best raise aid budgets by 20%, and will ultimately - since the
money has to be paid back with interest - result in their overall
reduction. The only argument in favour of the IFF is that the economic
growth it stimulates in the short term would raise more revenues
than would be lost to future aid budgets, but the Treasury has given
no concrete figures to back this up. This silence suggests that
the idea is unworkable - and moreover the US has flatly rejected
the idea.
4.The report recognises the role of corruption
both in Africa and in the Western countries who export there, and
calls for tougher laws to require banks to report suspected money
laundering and appropriation of aid funds. But it is precisely this
unflinching recognition of Western dishonesty which undermines the
report - for the role of criminal behaviour in causing poverty is
negligible compared to the devastation caused by the entirely legal
operation of the global financial system. When the rules of the
legal system are stacked against the world's poor, to concentrate
on those who have broken those rules is seriously misleading.
No one should doubt that Gordon Brown
and Tony Blair are sincere in their concern to help Africa. But
when so much of the blame for Africa's problems can be laid at the
West's door, they must realise that they cannot please everyone.
To read the full report click
here to go to the Commission website.
|