Global recession on the move The lessons for Africa

Editorial

The International Monetary Fund has warned that the world economy will likely contract this year in a "great recession" The Fund predicts that global growth will slow down to below zero this year, describing the situation as "the worst performance in most of our lifetimes," as continued deleveraging by world financial institutions, combined with collapse in consumer and business confidence is depressing domestic demand across the globe, while world trade is falling at an alarming rate and commodity prices are tumbling.

At this moment, the industrialized nations are registering losses in their banks, as well as adverse balance of payments and job losses. Imagine, these are nations that produce enough for their survival, enjoy protectionism thanks to the rules that govern international trade systems, yet they face economic meltdown. What then does this mean for Africa, a continent already ravaged by hunger, diseases and malnutrition with a subsistence economy that hardly produces enough for consumption. Some have argued that Africa's meager role in world trade has many explanations. Years of collective economic policies, including policies that shut off imports needed for efficient manufacturing, is one of the issues that have helped depress economic activity throughout the continent.

Political instability and civil war, in some cases, have ruled out foreign investment and trade. Poor and expensive transportation and telecommunications have hurt Africa, while traditional trade links have been diminished. And all these factors have worked against African nations meeting the big challenge of becoming competitive in world markets, and now that the world economy is in crisis our situation will grow worst.
Whatever the case may be, the lesson to be drawn from this is simple and clear. Africa is bound to remain underdeveloped and at the receiving end of global crises as long as we continue to feed in the kitchen of others.

African leaders have to demonstrate the political will to enact sound economic policies. They have to adopt the principles of people like President Jammeh who constantly advocates for the indigenization of our development and the promotion of south-south cooperation. It is also important that we consume our own agricultural products.

These are stark realities we cannot ignore. Africa faces critical challenges; poverty remains widespread, and there are a host of social, environmental, and health problems that hamper productivity. The best way to deal with such ills is through promotion of integration so that we can put together our resources for our own development.

It is from this angle that Africa’s future can be shaped. Outside this, we will continue to be the underdogs of the world.