Category Archives: ECONOMY

Africa IMF Reports : Swaziland 2011

IMF reports for Swaziland 2011

Departmental Paper No. 11/01: In the Wake of the Global Economic Crisis: Adjusting to Lower Revenue of the Southern African Customs Union in Botswana, Lesotho, Namibia, and Swaziland. Summary: The Southern African Customs Union (SACU) is facing its biggest challenge in its 100 years of existence. The global economic crisis has significantly reduced its revenue outlook, which is having a disproportionate impact on its smaller member countries, and which calls for an appropriate policy response. This paper discusses specifically the implications for Botswana, Lesotho, Namibia, and Swaziland, and provides recommendations regarding the proper fiscal response by these countries to the decline in SACU revenue.
http://www.imf.org/external/pubs/cat/longres.cfm?sk=24512.0

 Public Information Notice: IMF Executive Board Concludes 2010 Article IV Consultation with Swaziland
http://www.imf.org/external/np/sec/pn/2011/pn1106.htm

Country Report No. 11/25: Kingdom of Swaziland: 2010 Article IV Consultation–Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Swaziland
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24589.0

Press Release: Statement at the Conclusion of an IMF Staff Mission to Swaziland
http://www.imf.org/external/np/sec/pr/2011/pr1160.htm

 Country’s Policy Intentions Documents — Swaziland, Kingdom of: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, March 29, 2011
http://www.imf.org/External/NP/LOI/2011/SWZ/032911.pdf

Country Report No. 11/84: Kingdom of Swaziland: Staff Monitored Program-Staff Report; Staff Supplement
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24785.0

 IMF Survey: Swaziland Uses IMF Monitoring Program to Fight Fiscal Crisis IMF management approves a Staff-Monitored Program for Swaziland to help the country enact tax reforms and at the same time protect social spending. The program entails IMF scrutiny of the authorities’ policies, but does not include formal backing of the program or financial support.
http://www.imf.org/external/pubs/ft/survey/so/2011/car040811a.htm

IMF Policy Paper: Kingdom of Swaziland – Assessment Letter for Multilateral and Bilateral Donors Summary: This letter provides an assessment of recent macroeconomic developments in Swaziland and an update on the discussions between IMF staff and the Swaziland authorities. Swaziland faces a fiscal crisis caused by an 11 percent of GDP drop in revenue payments from the Southern African Customs Union (SACU) and one of the largest wage bills in Africa. In response, the authorities have put in place an ambitious Fiscal Adjustment Roadmap and requested IMF staff to monitor its implementation. The IMF Managing Director approved a Staff-Monitored Program with Swaziland on April 4, 2011, that seeks to start the necessary fiscal adjustment, while protecting education, health, and pro-poor spending and improving public financial management. Securing adequate financing in 2011/12 will be critical to avert a more severe fiscal situation.

http://www.imf.org/external/pp/longres.aspx?id=4561

Press Release: Statement at the Conclusion of an IMF Staff Mission to Swaziland
http://www.imf.org/external/np/sec/pr/2011/pr11186.htm

Press Release: Statement at the Conclusion of an IMF Article IV Mission to Swaziland
http://www.imf.org/external/np/sec/pr/2011/pr11415.htm

 IMF African Departmental Paper No. 2011/07: Macroeconomic Vulnerabilities Stemming from the Global Economic Crisis: The Case of Swaziland
http://www.imf.org/external/pubs/cat/longres.cfm?sk=25430.0

All information from imf.org

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Africa IMF Reports : Rwanda 2011

IMF reports for Rwanda 2011

Public Information Notice: IMF Executive Board Concludes 2010 Article IV Consultation with Rwanda
http://www.imf.org/external/np/sec/pn/2011/pn1103.htm

Country Report No. 11/19: Rwanda: 2010 Article IV Consultation and First Review Under the Policy Support Instrument-Staff Report; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Rwanda.
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24579.0

Press Release: IMF Executive Board Completes Second Review Under Policy Support Instrument for Rwanda
http://www.imf.org/external/np/sec/pr/2011/pr11251.htm

Country Report No. 11/154: Rwanda: Poverty Reduction Strategy Paper – Progress Report
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25001.0

 Country’s Policy Intentions Documents — Rwanda: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, May 25, 2011

http://www.imf.org/External/NP/LOI/2011/RWA/052511.pdf

Country Report No. 11/164: Rwanda: Second Review Under the Policy Support Instrument and Request for Modification of Assessment Criteria – Staff Report; Staff Supplement; Press Release
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25018.0

Country Report No. 11/244: Rwanda: Financial System Stability Assessment
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25137.0

All information from imf.org

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Africa IMF Reports : Togo 2011

IMF reports for Togo 2011

Country Report No. 11/6: Togo: Poverty Reduction Strategy Paper-Progress Report-Joint Staff Advisory Note
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24550.0

Country Report No. 11/7: Togo: Poverty Reduction Strategy Paper-Progress Report
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24551.0

Country’s Policy Intentions Documents — Togo: Letter of Intent, and Technical Memorandum of Understanding, November 15, 2010
http://www.imf.org/External/NP/LOI/2010/tgo/111510.pdf

Country Report No. 11/10: Togo: Fifth Review Under the Three-Year Arrangement Under the Extended Credit Facility, Request for Modification of a Performance Criterion and Request for Extension of the Arrangement-Staff Report; Staff Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Togo.
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24561.0

 Country Report No. 11/28: Togo: Enhanced Heavily Indebted Poor Countries (HIPC) Initiative Completion Point Document and Multilateral Debt Relief Initiative (MDRI)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24597.0

Press Release: Statement by an IMF Mission to Togo
http://www.imf.org/external/np/sec/pr/2011/pr11183.htm

Press Release: IMF Executive Board Completes Sixth and Final Review Under the ECF Arrangement for Togo and Approves US$13.95 Million Disbursement
http://www.imf.org/external/np/sec/pr/2011/pr11285.htm

Country’s Policy Intentions Documents — Togo: Letter of Intent, June 26, 2011
http://www.imf.org/External/NP/LOI/2011/TGO/062811.pdf

Public Information Notice: IMF Executive Board Concludes 2001 Article IV Consultation with Togo
http://www.imf.org/external/np/sec/pn/2011/pn11100.htm

Country Report No. 11/240: Togo: 2011 Article IV Consultation and Sixth Review Under the Extended Credit Facility Arrangement – Staff Report; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Togo
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25132.0

All information from imf.org

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Africa IMF Reports : Liberia 2011

IMF reports for Liberia 2011

 IMF Policy Paper: Framework Administered Account for Selected Fund Activities: Liberia Macro-Fiscal Subaccount

Summary: In March 2009, the Fund established a new Framework Administered Account to
administer external financial resources for selected Fund activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Liberia Macro-Fiscal Subaccount (the “Subaccount”) under the terms of the SFA Instrument.
http://www.imf.org/external/pp/longres.aspx?id=4517

Press Release: Statement at the Conclusion of an IMF Staff Mission to Liberia
http://www.imf.org/external/np/sec/pr/2011/pr11130.htm

Press Release: IMF Executive Board Completes Sixth Review Under the Arrangement under the Extended Credit Facility and Approves US$7 Million Disbursement for Liberia
http://www.imf.org/external/np/sec/pr/2011/pr11258.htm

Country’s Policy Intentions Documents — Liberia: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, June 7, 2011

http://www.imf.org/External/NP/LOI/2011/LBR/060711.pdf

Country Report No. 11/174: Liberia: 2011 Sixth Review Under the Three-Year Arrangement Under the Extended Credit Facility, Request for Extension of the Arrangement, and Augmentation of Access – Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Liberia
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25037.0

Country Report No. 11/214: Liberia: Poverty Reduction Strategy Paper – Second Annual Progress Report, 2009-10
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25099.0

 IMF Survey: IMF Technical Assistance Finds A Teachable Moment in Africa As countries around the world cope with the global crisis, the IMF’s technical assistance helps countries strengthen the policy skills, and technical know-how of their institutions.  In Liberia, on the west coast of Africa, the government put in place a modern system to pay teachers on time with the push of a button.
http://www.imf.org/external/pubs/ft/survey/so/2011/car112211a.htm

Press Release: IMF Executive Board Completes Seventh Review Under ECF for Liberia and Approves US$6.9 Million Disbursement
http://www.imf.org/external/np/sec/pr/2011/pr11442.htm

Country’s Policy Intentions Documents — Liberia: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, November 15, 2011

http://www.imf.org/External/NP/LOI/2011/LBR/111511.pdf

Country Report No. 11/345: Liberia-Seventh Review Under the Extended Credit Facility Arrangement
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25417.0

All information from http://www.imf.org

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Africa IMF Reports : South Africa 2011

IMF reports for South Africa 2011

The Fairest Cape, South Africa
The Fairest Cape, South AfricaIan Junor / Foter

Working Paper No. 11/69: Fiscal sustainability and the fiscal reaction function for South Africa Author/Editor: Burger, Philippe ; Cuevas, Alfredo ; Stuart, Ian ; Jooste, Charl Summary: How does the South African government react to changes in its debt position? In investigating the question, this paper estimates fiscal reaction functions using various methods (OLS, VAR, TAR, GMM, State-Space modelling and VECM). The paper finds that since 1946 the South African government has ran a sustainable fiscal policy, by reducing the primary deficit or increasing the surplus in response to rising debt. Looking ahead, the paper considers the use of fiscal reaction functions to forecast the debt/GDP ratio and gauging the likelihood of achieving policy goals with the aid of probabilistic simulations and fan charts.
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24758.0

Press Release: Statement by the IMF Executive Directors Representing Brazil, Russia, India, China and South Africa on the Selection Process for Appointing an IMF Managing Director
http://www.imf.org/external/np/sec/pr/2011/pr11195.htm

Press Release: IMF Managing Director Christine Lagarde to Visit South Africa

http://www.imf.org/external/np/sec/pr/2011/pr11476.htm

Press Release: Statement by IMF Managing Director Christine Lagarde at the Conclusion of her Visit to South Africa
http://www.imf.org/external/np/sec/pr/2012/pr1201.htm

All information from http://www.imf.org

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From Aid to Enterprise – An African Businessman in London

Guest Post on Aid to Enterprise by Herman K. Chinery-Hesse

I was asked to attend an event in London earlier this month to share my perspectives on aid in Africa and its role in poverty alleviation, Aid to Enterprise. As a Ghanaian businessman with real life experience of aid and the affect it has on local enterprise, I readily accepted the invitation. Let explain my reasoning.

Enterprise in Ghana is not encouraged by the government. Why? Because institutional aid is very profitable for select political individuals. They enjoy large kickbacks from ensuring the aid keeps flowing into my country. Unfortunately it comes with prerequisites – these include business deal approvals on public sector contracts. Even if a Ghanaian company produces a quality solution or product at a much, much lower price point than a Western equivalent, it’s unlikely the Ghanaian business will be in the running for the contract. I know this because I’ve been in that very situation.

As a local business you pitch for a public sector contract, receive positive feedback but then hear nothing for six months. You wonder why, but then you read in the newspaper that a foreign company has bid and won the contract at a price point around 50 times higher than what you offered to complete the deal for. Unfortunately, this is commonplace. Our government has to run all public sector procurement decisions past the aid organisations, as they control the flow of money into the country. Once alerted, these organisations approach suppliers in their home countries, who are then awarded the business. In this example a French company tendered for and won the contract, along with similar deals in several other African nations depriving them of the economic benefits as well. Ironically, the kickback the government official received from outsourcing the business to the Western company was around 20 times the price we quoted for the entire project.

The reality is that institutional aid is responsible for a rift between the political and business classes. They see us as an irritant and attempt to stifle enterprise with multiple tax audits or new financial regulations. The politicians don’t want the business class to create a local economy. This makes Ghanaian banks nervous about lending to Ghanaian businesses, as they know it’s unlikely they’ll be winning the bigger public sector contracts. It becomes a vicious circle and makes it very difficult for the local economy to prosper without taking extreme measures like we did with our new business.

We recently set up an e-commerce company allowing the general Ghanaian public to start exporting goods to the rest of the world it’s based on SMS and an online portal. However, we anticipated that the government would want to run all communications through a recently installed exchange. In order to counter this we registered the company in Panama, hosted the servers in Europe and built the SMS platform in Eastern Europe. As soon as we started publicising the new service and doing business we were contacted by the government who threatened to close us down. It soon realised that the company was beyond its jurisdiction and grudgingly retreated. But this isn’t how we want to operate.

Institutional aid has existed and been well publicised for decades, yet poverty still exists. All it does is allow governments to ignore their people. The long term solution for poverty alleviation in Africa is local enterprise: businesses building local economies that can then employ the population and create opportunities for future generations of Africans. It may sound cliched, but we want a business deal and a handshake, not a handout.

Earlier this month, Herman Chinery-Hesse spoke at an event in London entitled, From Aid to Enterprise: Economic Liberty and Solutions to Poverty, hosted by not-for-profit organisation, the Acton Institute. Listen to his presentation here.

Impact of Chinese competition in Zimbabwe

There’s quite a bit being written at the moment about Chinese investment in Africa. We tend to think this is big projects like bridges and stadiums. But, this IPS article brings out the human cost of this ‘investment’. Small local family businesses are being impacted by Chinese factories.

ZIMBABWE: Chinese Become Unwelcome Guests

Harare, Zimbabwe from the Kopje

Harare. Image via Wikipedia

HARARE, Jan 7 (IPS) Alec Marembo has built his family fortune making bricks in Dzivarasekwa, a sprawling high-density suburb north of the capital of Zimbabwe. But due to the economic crisis of the last decade, his fortune started crumbling. Although he could break even when the downturn started, he finally gave in to competition from the Chinese.
“I don’t understand how our government can allow the Chinese to come here and take over small jobs that we consider family ventures and pass them on as investment,” Marembo told IPS as he gazes into the distance where a new Chinese brick factory lies.
The government of President Robert Mugabe introduced the “look east” policy in 2004, after top government officials and state companies were slapped with sanctions by the UK, the United States and other western countries for alleged human rights abuses.
The policy has encouraged China and other Asian countries to invest in Zimbabwe, which they have done without attaching any conditions in the manner of trading partners in the west.
Times have been hard for many Zimbabweans due to the closure of a number of industries caused by the crippling economic crisis.
So when Chinese investors started arriving they were welcomed with open arms. But the trade relationship is now raising questions.
“The Chinese, like any other investors, are welcome but they have to come and build industries which will offer people employment,” Thulani Mkwebo, a small shop owner in downtown Harare, told IPS. “If I had a choice I would drive them out.”
Resentment against the Chinese can be felt in many parts of Zimbabwe.
Recently there were wildcat strikes at several Chinese-run business ventures. Last month some 600 Zimbabwean construction workers employed by a Chinese construction and mining company, Anhui Foreign Economic Construction Company (AFECC), downed their tools.
They were protesting bad labour practices ranging from physical abuse to irregular working hours and low wages pegged at four U.S. dollars a day, far below the rates set by the Zimbabwe National Employment Council (ZNEC) for the construction industry, which are between 1.00 and 1.50 dollars an hour.
The company is building a 98 million dollar military college just outside Harare, financed with a Chinese loan to be repaid with diamonds.
AFECC is mining diamonds in eastern Zimbabwe, in partnership with the Zimbabwean military, according to the Ministry of Mines.
The Chinese have many interests in this southern African country. But the retail sector, mining for diamonds and minerals, construction, manufacturing and agriculture are the main attractions.
According to a 2011 report by the Zimbabwe Economic Policy Analysis and Research Unit, Zimbabwe’s exports to China rose from 100 million dollars in 2000 to 167 million dollars in 2003, but fell to 140 million dollars in 2009.
Imports from China, meanwhile, climbed from 30 million dollars in 2000 to 197 million dollars in 2007, before taking a dip in 2008.
This country’s exports to China are largely in the form of raw materials, with tobacco and minerals being the main products, while Zimbabwe receives loans and various finished products most of which are popularly referred to here as “ZhingZhongs” (poor quality products).
But this has not deterred the Chinese, who have set up small businesses pushing locals, particularly cross-border traders, out of business as they cannot compete with cheap Chinese products.
Mara Hativagone, a former president of the Zimbabwe National Chamber of Commerce (ZNCC) and chairperson of the Zimbabwe Investment Authority (ZIA), said the Chinese should not compete for the downstream industries traditionally reserved for locals.
“We want to see more technology transfer from foreigners. They must not come here and do all sorts of funny things, taking advantage of the existing relationship between the two countries,” Hativagone told IPS.
“There is no way Zimbabweans can compete with the Chinese, because they use cheap labour and mass produce while half the time we have no water and electricity in our industries to produce,” she said.
She also accused the Chinese of being cheats. “Sometimes the Zimbabwe Investment Authority gives them manufacturing licenses, but they go and open restaurants under such big Chinese names as Wing Wah International Hotel and Shangri-la,” she said.
Zimbabwe’s ambassador to China between 2002 and 2007, Chris Mutsvangwa, who now runs MONCRIS, a consultancy firm which helps people from China set up businesses in Zimbabwe, said he does not expect the Chinese to flood business opportunities reserved for locals.
“Any end of the industry anywhere in the world should be reserved for locals. I would not expect Zimbabweans to go to China to compete with the Chinese in small businesses, and I don’t expect the Chinese to do the same,” Mutsvangwa said.
“The Chinese have to come and exploit other areas where we have a shortage, but we should not completely bash them but look at other things that they have done for us. They have helped offer competition for the Americans, and now the girlfriend has another boyfriend.”
After the government’s land reform programme began in 2000, U.S. business interests left in droves to relocate to neighbouring South Africa, depriving Zimbabwe of millions in potential foreign exchange earnings.
Beijing is aware of the jitters and has warned against undoing the existing relationship.
“China understands the need for indigenisation and empowerment but we hope Zimbabwe will protect the legitimate right of Chinese businesses in the country,” Chinese Vice Premier Wang Qishan told the media during a visit to Harare last year.
But there is also popular support for the Chinese doing business here.
“The Chinese are welcome, we love them, they bring us cheap goods, and whoever says they don’t want them should first create jobs for us,” said Zvikomborero Moyo, a hair and clothing boutique worker in downtown Harare. “With Chinese help, we can start businesses, we buy from them very cheaply and resell in the suburbs and that way we are able to make a living.”
[Copyright Inter Press Service (IPS) 2011. Stories reproduced in print or web must acknowledge IPS and the author, and may not be sold to other organizations]
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Is China a rogue donor, as some media pundits suggest? Or is China helping the developing world pave a pathway out of poverty, as the Chinese claim?

Among the specific topics tackled here are China’s interest in African oil; military and security relations; the influx and goals of Chinese aid to sub-Saharan Africa; human rights issues; and China’s overall strategy in the region.

WEST AFRICA: Building resilience in the Sahel

Nomads leaving Niger with their goat herd, Dak...

Image via Wikipedia

Progressive impoverishment

LONDON, 27 October 2011 (IRIN) – In 2005, drought and famine hit the Sahel, claiming many lives. The pattern was repeated in 2010, with the crisis most acute in Niger. And now the early warning signs are there for problems again next year, in 2012. [ http://www.irinnews.org/InDepthMain.aspx?indepthid=81&reportid=89121 ]

Sahelians have always had their ways of coping with bad years. Not so long ago the cycle could be tracked by the size of women’s gold earrings. In major drought years the gold would have to be sold, and for a time the women would wear replica ornaments of painted tin. Then gradually they could start to buy gold again, until eventually their earrings were back to their former size.

But successive droughts, coming this close together, tax families’ resilience to the limits. Not just gold has to be sold, but productive assets too – livestock, tools and land – making it almost impossible for the family ever to get back to its position before the crisis. A government study of 14 agro-pastoral areas in Niger found that pastoralists with small herds had on average lost 90 percent of their livestock due to successive droughts. International aid has kept people alive – more successfully in 2010 than in 2005 – but it has not stopped this kind of progressive impoverishment.

After the 2005 famine, the Sahel Working group, an informal grouping of UK and other European aid agencies, commissioned a study (entitled Beyond Any Drought) – on the lessons which could be learned from the way the crisis had been handled. Now its author, Peter Gubbels of Groundswell International, has repeated the exercise. The new publication (PDF), Escaping the Hunger Cycle; Pathways to Resilience in the Sahel, looks at what happened in 2010, what has changed for the better, what challenges remain, and what can be learned for the future.

One of the continuing problems identified in the report, and one which still has not been solved, is a conceptual issue of how you think about crisis and normality in areas where child malnutrition is always at a level which would elsewhere denote an emergency situation. [ http://www.irinnews.org/report.aspx?reportid=88425 ]

No resilience, no reserves

In Kanem, for instance, in western Chad, the incidence of global acute malnutrition (GAM) fell below the World Health Organization (WHO) emergency threshold of 15 percent only once in the past 20 years. These are children with no reserves, no resilience when the next bad season comes along.

A third of the population of Chad is chronically undernourished, regardless of the rains or size of the harvest. More than 50 percent of the population in Niger suffers from food insecurity, with 22 percent extremely food insecure, according to the World Bank in 2009.

“The brutal, unpalatable reality”, says Gubbels in the report, “is that a pervasive, on-going, structural food crisis exists in the Sahel. Many high level decision-makers, within CILSS, [Permanent Inter-State Committee for the Fight against Drought in the Sahel] national governments, the UN agencies and donor agencies (aside from a few exceptions), do not appear to consider the current high level of food and nutrition insecurity as a `crisis’. This widespread attitude undermines attempts to reduce chronic vulnerability. This is the key problem. This must change.”

 Humanitarian response versus development

The practical result of this conceptual confusion is that attempts to build people’s resilience to cope with drought and food crises fall down the crack between the agencies which deal with emergencies and those which deal with development.

Colum Wilson, a senior humanitarian adviser with the UK’s Department for International Development (DFID), speaks with feeling about trying to get support and funding for this kind of programme. “One challenge which we are grappling with inside DFID is our own funding mechanisms. You are either Humanitarian Response, or you are Development. We need to get to the point where, when an NGO comes to us and says, ‘We want to do a re-stocking programme in the Sahel; it will take two and a half years,’ there is some pot of money that they can tap into. Because at the moment the humanitarians shrug their shoulders and say ‘Sorry, that’s too long for us.’ And the development actors say ‘Hmmm, that sounds a bit like a crisis response; we are not interested.’”

Donors, to date, have been slow to embrace more flexible funding, but there is a sign that attitudes among them are shifting. EU humanitarian funder ECHO, for instance, has outlined both short and long-term objectives in its Sahel strategy; UN Emergency Relief Coordinator Valerie Amos has recently stressed the need to build relief to development bridges.

The report is full of practical ideas for things that can be done better, both in the periods of obvious crisis, and in what pass for normal times in the Sahel.

Gubbels feels that too much emphasis is placed on agricultural production, both as an early warning indicator, and as a way of averting future crises. He points out that, although most of the people of the region can be loosely described as farmers, pastoralists do not grow their own food, and nor do the poorest 20 or 30 percent of the population – they buy it in the market. So they may still go hungry when the harvest in their own region has been adequate, if other factors mean food in the market is priced beyond their reach.

More effective early warning indicators and rapid response mechanisms are required to prevent the immense damage to livelihoods, and the loss of productive assets by vulnerable households, when an acute food crisis occurs.

Meanwhile, development projects to increase agricultural production help the better-off farmers who do grow their own food, but not those who have had to sell their land or tools to get through a crisis or whose able bodied workers have been forced to migrate to look for paid work. More focus on livestock management is needed to help pastoralists boost their disaster coping mechanisms.

And far more work needs to be done to tackle moderate acute malnutrition, such as addressing the multi-dimensional aspects of malnutrition, including livelihoods, food production, social protection, health, water and disaster risk reduction; and on responses that focus on strengthening the incomes of poor households.

 Cash transfers

The report has interesting things to say about social protection programmes and cash transfers, just beginning to be tried in this part of West Africa. It showcases one successful project in Niger, where women received around US$120, in three payments, during the hungry season. Most of it was spent on food, improving nutrition. No families had to sell land, and freed from the desperate search for cash income, household members were able to spend more time farming and produced as much as 50 percent more millet than usual. Since the labour market was not flooded with people desperate for any employment, wages were better for those who did have to look for paid work. [http://www.irinnews.org/InDepthMain.aspx?indepthid=81&reportid=89432 ]

But there were warnings about too much enthusiasm for cash transfers among those present at the launch of the report. Paul Harvey, a partner in the consultancy Humanitarian Outcomes, said he agreed that cash was probably underutilized as an alternative to food aid, but went on: “There’s a danger in seeing it as more of a panacea than it is likely to be, because of the issue that not enough cash isn’t that much better or more than not enough food. So a shift to cash may be helpful at the margins, but if the problem is simply that people are not getting enough assistance, then getting it in cash isn’t going to be that much more helpful than getting it in food. And if cash isn’t adjusted for inflation, then it’s actually going to be less helpful, because its value is being eroded.”

In his report Gubbels does address this issue, urging countries to build food reserves to help stabilize prices. It is a mechanism which fell out of favour because it interferes with the free operation of the markets, but Gubbels believes it still has a role, especially given the time lag in getting food into these landlocked countries in a crisis.

He believes the final test of success in building resilience in the Sahel is the long-term health of its children. “If there is a drought”, he says, “and the rate of child malnutrition doesn’t rise, that really would be a sign of resilience.”

This report on line: http://www.IRINnews.org/report.aspx?ReportID=94082

© IRIN. All rights reserved. More humanitarian news and analysis: http://www.irinnews.org/

[This item comes to you via IRIN, the humanitarian news and analysis service of the UN Office for the Coordination of Humanitarian Affairs. The opinions expressed do not necessarily reflect those of the United Nations or its Member States. Reposting or reproduction, with attribution, for non-commercial purposes is permitted. Terms and conditions: http://www.irinnews.org/copyright.aspx]

Suggested Books

Sahel: The End of the Road (Series in Contemporary Photography, 3)

Sahel: The End of the Road (Series in Contemporary Photography, 3)

Reconciliation and Institutional Capacity Key to Economic Recovery in Côte d Ivoire

Obiageli Ezekwesili

Obiageli Ezekwesili

Reconciliation and Institutional Capacity Key to Côte d Ivoire s Economic Recovery, Says World Bank Vice President for Africa Abidjan, October 25, 2011

As she wrapped up a two-day visit of Côte d Ivoire, World Bank Vice President for the Africa Region, Obiageli Ezekwesili, stressed the importance of rebuilding social cohesion in a country that previously had very strong social capital based on unity, diversity and a vibrant economy in the sub-region of West Africa.

I said to the President that it is obvious that the common vision is to make Côte d Ivoire a society that grows economically, becomes vibrant again and tackles poverty, which is the common enemy of all Ivoirians, Ms. Ezekwesili said as she wrapped up a two-day visit during which she met with President Alassane Ouattara, Prime Minister Guillaume Soro, and members of the Commission on Dialogue, Truth and Reconciliation headed by former Prime Minister Charles Konan Banny.

The visit, which comes six months after the end of the post-election crisis that shook Côte d Ivoire, was an opportunity for Ms. Ezekwesili to follow up on progress towards debt relief under the Heavily Indebted Poor Countries Initiative, as well as reforms in the agriculture sector, in particular the cocoa and coffee sub-sectors. It was also an opportunity for Ms. Ezekwesili to reiterate the World Bank s commitment of support to the efforts of the Ivoirian government towards national reconciliation.

During a working session with cabinet members, the World Bank Vice President for the Africa Region expressed her appreciation of the efforts that the government is making with regard to macro-economic stability, public financial management and governance, and the need for improvements in agriculture, infrastructure, education and private sector development.

What Côte d Ivoire needs now urgently is for jobs, more jobs and even greater jobs to be available to the citizens. This was our main focus as we looked at what Finance Minister Charles Koffi Diby and his colleagues have been doing across the infrastructure, energy, agriculture sectors to enhance productivity and improve competitiveness, Ms. Ezekwesili said.

Another important aspect of the visit was a series of discussions with the leaders of Côte d Ivoire s Commission on Dialogue, Truth and Reconciliation, as well as meeting with women and Civil Society representatives, on the prospects for reconciliation and social cohesion.

Ms. Ezekwesili noted that the World Bank Group has drawn important lessons from the 2011 World Development Report on Conflict, Security and Development. The report, she said, offers to both the Commission and civil society representatives insights into best practices and technical expertise to help them achieve their goals.

Ladies and Gentlemen, at the end of the day, the most important things for Ivoirians, regardless of where they are from, is to understand that their nation and its potential will be strengthened. This will not be realized until there is a unified purpose and a realization that it is corruption, poverty, poor governance and lack of transparency which are the common enemies of all Ivoirians, Ms. Ezekwesili said.

She added that the World Bank will support the commission in looking at the important dimension of communication strategies and how women, who have suffered most from the long political stalemate, can become vital agents for peace building.

The World Bank has recently provided two grants to Côte d Ivoire: US$150 million in budget support and US$50 million for youth employment.

Contacts: In Abidjan: Taleb Ould Sid’ahmed, + 225 22 400 400, touldsidahmed@worldbank.org

In Washington: Aby K. Touré, +1-202-473-8302, akonate@worldbank.org

For more information, please visit: www.worldbank.org/cotedivoire or www.banquemondiale.org/cotedivoire Visit World Bank on Facebook: http://www.facebook.com/worldbankafrica Be updated via Twitter: http://www.twitter.com/worldbankafrica For World Bank YouTube channel: http://www.youtube.com/worldbank

Ornamental fish farming in the rainforests of West Africa

Anenome / Clown Fish
photo credit: mattk1979

Ornamental fish exports

There is an interesting story about aquarium fish breeding in Africa. It seems strange to think about ornamental fish with all the recent talk about food crises. I guess most of us thought that these fish which appear in garden centres are grown in the UK or our own country. The issues discussed in this paper are important though, and are pertinent to most trade arguments. 95% of profits from items produced in Africa disappear to middle men and a minute amount goes to the people themselves. That’s besides the arguments about the sustainability of the products themselves.

Read the report and see what you think.

Over 200 species of valuable ornamental fish live in the rivers of the Lower Guinean rainforest in Cameroon. The export trade for these fish largely benefits foreign businessmen, though, who keep up to 95 percent of profits. More sustainable approaches to trade are needed if local people are to benefit.
http://www.id21.org/zinter/id21zinter.exe?a=0&i=n3wf1g1&u=4af54eb6

You can download a pdf of the report ‘ Africa’s Age of Aquarium: farming ornamental fish in the rainforests of West Africa to improve livelihoods of the poor‘ by the World Fish Center

The report concludes that the key lessons learnt are:

  • Commercially sound and environmentally sustainable trade in non-timber forest products is a viable means of conserving rainforest ecosystems and sustaining traditional livelihoods.
  • Ornamental aquaculture systems that make minimal modifications to streams and depend on natural nutrient cycles provide incentives for forest dwellers to conserve rivers and streams.
  • Refining green aquaculture technologies goes hand in hand with grass roots organization to hone marketing skills and advocate conservation and the fair valuation of ornamental fish.
  • Reduced mortality in shipments of ornamental fish to Western markets conserves fish in their ecosystems while multiplying the economic returns to local communities.

Books and articles (US)

Africa IMF Reports : Lesotho 2011

IMF Reports for Lesotho 2011

Lesotho Departmental Paper No. 11/01: In the Wake of the Global Economic Crisis: Adjusting to Lower Revenue of the Southern African Customs Union in Botswana, Lesotho, Namibia, and Swaziland. Summary: The Southern African Customs Union (SACU) is facing its biggest challenge in its 100 years of existence. The global economic crisis has significantly reduced its revenue outlook, which is having a disproportionate impact on its smaller member countries, and which calls for an appropriate policy response. This paper discusses specifically the implications for Botswana, Lesotho, Namibia, and Swaziland, and provides recommendations regarding the proper fiscal response by these countries to the decline in SACU revenue.
http://www.imf.org/external/pubs/cat/longres.cfm?sk=24512.0

 Press Release: Statement by IMF Managing Director Dominique Strauss-Kahn on Death of Central Bank of Lesotho Governor and IMF Alternate Governor Moeketsi Senaoana
http://www.imf.org/external/np/sec/pr/2011/pr1185.htm

Press Release: IMF Executive Board Completes First Review Under ECF Arrangement for the Kingdom of Lesotho and Approves Disbursement of US$9 Million
http://www.imf.org/external/np/sec/pr/2011/pr11115.htm

Country’s Policy Intentions Documents — Lesotho: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, February 24, 2011
http://www.imf.org/External/NP/LOI/2011/LSO/022411.pdf

Country Report No. 11/88: Kingdom of Lesotho: First Review Under the Three-Year Extended Credit Facility Arrangement and Requests for Waiver of Nonobservance of Performance Criterion and Modification of Performance Criteria-Staff Report and Press Release.
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24790.0

Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with the Kingdom of Lesotho
http://www.imf.org/external/np/sec/pn/2011/pn1175.htm

Press Release: Statement at the Conclusion of an IMF Mission to Lesotho
http://www.imf.org/external/np/sec/pr/2011/pr11254.htm

Press Release: Statement at the Conclusion of an IMF Mission to Lesotho
http://www.imf.org/external/np/sec/pr/2011/pr11467.htm


All information from imf.org. Reports will be added as they become available.

Suggested Books

This book is one of the first travel guides dedicated solely to Lesotho.

Set in Lesotho and South Africa.

MP3

Old 1976 archive recording.

Africa IMF Reports : Kenya 2011

IMF Reports for Kenya 2011

Press Release: IMF Executive Board Approves Three-Year, US$508.7 Million Arrangement Under Extended Credit Facility for Kenya

http://www.imf.org/external/np/sec/pr/2011/pr1122.htm

IMF Survey: IMF Lends $508.7 Million to Help Kenya Launch Key Reforms The IMF approves a $508.7 million loan to back Kenya’s economic program, as the country embarks on reforms arising from the implementation of its new constitution. The program will help Kenya deal with vulnerabilities that could derail its efforts to accelerate growth.
http://www.imf.org/external/pubs/ft/survey/so/2011/car020811a.htm

Country’s Policy Intentions Documents — Kenya: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, January 17, 2011
http://www.imf.org/External/NP/LOI/2011/KEN/011711.pdf

Country Report No. 11/48: Kenya: Request for a Three-Year Arrangement Under the Extended Credit Facility-Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Kenya
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24636.0

Press Release: IMF and Kenya Host Conference for Sub-Saharan Africa on Improving Tax Revenue Mobilization
http://www.imf.org/external/np/sec/pr/2011/pr1193.htm

Press Release: Statement at the Conclusion of an IMF Mission to Kenya
http://www.imf.org/external/np/sec/pr/2011/pr11194.htm

Press Release: IMF Executive Board Completes First Review Under Extended Credit Facility for Kenya
http://www.imf.org/external/np/sec/pr/2011/pr11266.htm

Country Report No. 11/165: Kenya: First Review Under the Three-Year Arrangement Under the Extended Credit Facility, Request for Waivers and Modification of Performance Criteria
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25020.0

Country’s Policy Intentions Documents — Kenya: Letter of Intent and Technical Memorandum of Understanding, June 14, 2011
http://www.imf.org/External/NP/LOI/2011/KEN/061411.pdf

Press Release: Statement by IMF Mission to Kenya
http://www.imf.org/external/np/sec/pr/2011/pr11386.htm

Press Release: IMF Executive Board Completes Second Review Under the Extended Credit Facility for Kenya and Approves Request for Augmentation of Access and US$143.67 Million Disbursement
http://www.imf.org/external/np/sec/pr/2011/pr11457.htm

IMF Survey: IMF Boosts Loan to Kenya to Help Cope With Regional Drought The IMF approves a $143 million loan payout to help Kenya cope with the severe drought in the Horn of Africa and higher food and fuel prices. In its regular review of the country’s economy, the IMF says Kenya is preserving the basis for strong growth.
http://www.imf.org/external/pubs/ft/survey/so/2011/car122111a.htm

All information collated from imf.org.

Suggested Books

Robert Bates focuses on Kenya, a country that continued to grow while others declined in Africa, and criticizes the neo-classical turn in development economics.

In this definitive new history, Charles Hornsby demonstrates how independent Kenya’s politics have been dominated by a struggle to deliver security, impartiality, efficiency and growth, but how the legacies of the past have continued to undermine their achievement, making the long-term future of Kenya far from certain.