African debt relief is only part of the cure
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Watching Tony Blair go about his Africa business is an act of faith: you either believe or you are forced to suspend your disbelief. The report of his Africa Commission, established to outline a program to transform the continent, was impressive in its analysis of the issues but flawed in its prescriptions. For example, its insistence on economic growth as the only curative is hard to swallow. Will the institutions, governments and corporations that have made a killing in Africa be trusted to repent and “fix” the continent? Look, for instance, at that agreement on debt relief from multilateral institutions to 18 of the poorest countries in Africa. This is a welcome break, but what of the debts owed to private banks? The reality is that many African countries are in hock to private banks, and these odious loans were often given without due diligence on the part of the lender. Moreover, the borrowers were often undemocratic regimes. Take Shell. Despite local and international criticism, Shell has yet to be held accountable for its environmental record in Nigeria. Just this past week, it announced a postponement of its oft-repeated promise to end gas flaring in Nigeria by 2007. If Blair’s ambitions for changing a continent’s fortunes and building a prosperous Africa are to succeed, he must address all those who have a stake in the continent. He must also deal justly with those who are part of the problem. And he must inspect the foundations on which the structure was built. Otherwise, the well-meaning rich world will be arranging the furniture as the house falls around them. |