Unity is economic strength

The world is definitely in a recession and the only debate remaining seems to be how long and how deep a fall. The global financial system meltdown is basically akin to the collapse of a badly designed apartment bloc – a case of faulty engineering committed by a fulcrum of recklessness, the magnitude of which is difficult to comprehend.
The rot can be traced back to the heady and greedy 1980s when Ronald Reagan and Margaret Thatcher loosened the checks and balances, deregulating everything in sight. Since “globalization” and ‘global village’, have created a new World Disorder, and de – regulation has spawned systematic degeneration of the fiscal world – to the point where currently in the U.S.A., retirees have seen $ 2 trillion of savings wiped out in weeks. The nation of Iceland, (all 300,000 inhabitants) is on the verge of becoming the first European country since Weimar Germany to literally go bankrupt - its banks – now effectively nationalized, are burdened with liabilities amounting to over 5 times Iceland’s 12 billion GDP.
It is recalled that the two houses of the U.S. Congress, after a laborious process, finally managed to agree on the terms of the $700 billion bailout. Failing financial institutions, beleaguered home owners and the world’s money markets had eagerly anticipated that the massive Federal injection would provide adequate liquidity, thereby stabilizing a system gone haywire. Unfortunately, despite being equal to 700 years of Ethiopian exports (at current valuation), the bailout has proven to be too little too late and even other massive infusions by other treasuries in the developed world (UK – over 100 bln pounds, Japan $94 bln, Sweden $20 bln, Russia – $34 bln, etc), global stock markets continue the downward spiral
Given this bleak situation therefore, the hesitancy by Africa to rush into various forms of Economic Partnership Agreements, especially with Europe, (Lisbon, Africa – EU Summit) seems to have been a wise and farsighted position.
This somewhat comforting thought must have flashed through the minds of the participants at a workshop organized jointly by the Africa Trade Policy Research Center (ATPC) and the Economic Commission for Africa’s; Trade, Finance and Economic Development Division (TFED) from October 8-10, 2008. The workshop evaluated the impacts of Economic Partnership Agreements (EPA) between African nations and the European Union, and particularly in regard to rescuing the regional integration agenda, given that individual African states are pushing ahead with bi-lateral trade agreements.
Africa is an immensely wealthy continent holding within its vastness, all the resources required to propel itself by its own momentum. However, this potential is being compromised by the lack of a unified continental position.
Since the December 2007 EU-Africa Lisbon Summit, facts on the ground indicate the existence of a marked divergence by both sides from the Lisbon Declaration which, contrary to the current ‘divide- and trade’ reality, envisioned continental collaboration. The Lisbon Declaration had avowed:, among other conditions; “to build a new strategic political partnership for the future, overcoming the traditional donor – recipient relationship and building on common values and goals in our pursuit of peace and stability, democracy and rule of law, progress and development.”
The summit’s African component was a solid bloc of 52 states plus Morocco, and the second party, represented by a unified ensemble of the 27 member states of the E.U. Nothwithstading Morocco’s separate status, there had been an across the board understanding that the summit was holistic in composition and the objectives targeted.
Thus, the subsequent break in the ranks is a disappointment. Individual nations on both continents undermined the Lisbon Declaration and its chief mechanism-the Joint Strategy and Action Plan, by concluding bi-lateral arrangements, severely eroding the spirit of the conference which had been seen as a meeting of minds between two supra-national blocs (E.U. and Africa)
We urge the leaders of both continents to return to this principled objective. This of course, with revision of context necessitated by the realities of the global fiscal turmoil. Africa, at least as far as it concerns the input of the Economic Commission for Africa (ECA) does seem to be in rather safe hands. Speaking recently while delivering the Mahatama Ghandi Memorial Lecture, P.M. Meles Zenawi, acknowledged with appreciation the policy vision and management expertise of U.N. Under Secretary General and ECA Executive Secretary, Mr. Abdoulie Janneh. The Executive Secretary carries on his shoulders the duty and honor of helping the wayward members of the flock, see the better alternative – that of one African voice. For divided we shall fall, but united, we shall forever stand. Eventually, perhaps we can envision without sounding too absurd, an African Economic Community. We wish the Executive Secretary and his commission success in this noble cause.