http://wsws.org/articles/2010/jun2010/afri-j25.shtml
Claims of African economic growth hide stark divisions of rich and 
poor
By Barry Mason
25 June 2010

“Africa is rich and its stock is rising. The value of its land and 
minerals is going up. There is no lack of resources, no deficiency 
of knowledge and no shortage of plans. Africa’s progress rests 
above all else on the mobilisation of political will,” Kofi Annan, 
former United Nations secretary general, recently told the 
Financial Times.

The article was part of a series that presented a glowing picture 
of African development.

“Africa has about 10 percent of global oil reserves, possibly 
more. South Africa has 40 percent of the world’s gold. The 
continent has more than a third of cobalt reserves and base metals 
abound. Its agricultural potential is barely touched”, it continued.

Africa could be on the verge of joining the rising economies of 
Brazil, Russia, India and China, the so-called BRIC group, the 
Financial Times claimed. The average gross domestic product (GDP) 
growth of sub-Saharan African countries is just under 5 percent 
this year and will rise to 6 percent next year after a decline 
last year.

The story has been circulating for some months. US based 
economists Xavier Sala-i-Martin and Maxim Pinkovskiy told the 
Guardian in March that poverty and inequality were decreasing in 
Africa.

Their claims have been met with some scepticism, and rightly so. 
Stefan Dercon of Oxford University says they rely too much on 
government statistics in coming to their conclusions whilst 
ignoring other data.

“They believe the evidence that many of us would least trust and 
throw away the evidence we tend to think is fairly accurate. 
Painstakingly collected household consumption and income surveys, 
especially when over various years using the same method in each 
year, give a rather detailed picture of whether there is massive 
enrichment or not. And unfortunately, the evidence for Ethiopia, 
where I have been doing this for years, doesn’t show such massive 
improvement.”

Alongside Dercon’s work is the evidence of two recent reports 
monitoring the promises made at the G8 meeting held in Gleneagles, 
Scotland, in 2005. The recently published Africa Progress Panel 
(APP) Report for 2010 has a foreword by Kofi Annan, who again 
claims that Africa is entering a period of economic growth. But 
Annan has to admit that none of the Millennium Development Goals 
(MDGs) for Africa have been met or are likely to be met in the 
foreseeable future.

The MDGs were agreed on by the United Nations in 2000. They 
include the eradication of extreme poverty and hunger; the 
achievement of universal primary education; the promotion of 
gender equality; the reduction of child mortality; the improvement 
of maternal health; combating HIV/AIDS, malaria and other 
diseases; ensuring environmental sustainability; and developing a 
“Global Partnership for Development”.

The report demonstrates that the absolute and relative numbers of 
people living in poverty remain high in Africa, that many people 
face food and nutrition insecurity, are unemployed or 
underemployed, and have minimal access to basic services such as 
energy, clean water, health care and education. Far from 
declining, the level of inequality is increasing as the economies 
of some sub-Saharan African countries grow.

More than 70 percent of Africans depend on subsistence agriculture 
to make a living. Yet agriculture is one of the most neglected 
sectors in terms of aid and investment. Climate change is making 
the conditions under which agriculture is practiced more and more 
uncertain. Drought and other extreme weather events are producing 
famine and forced migration.

The other report was produced by the One organisation, which was 
launched in 2007 by the rock singer and development activist Bono 
with great fanfare, specifically to monitor the G8 promises made 
at Gleneagles. After five years, the report has to admit that 
there is little to show for the G8 pledges on development. It is 
an admission that reflects the total bankruptcy of the aid industry.

One in six African children dies before the age of five. The 
causes of this horrendous death toll are not hard to find. It 
costs barely $1 to vaccinate a child against measles, yet a child 
dies of measles almost every minute because adequate vaccination 
programmes have not been put in place. Children are vulnerable to 
disease because they are malnourished. Nearly one third of 
children in sub-Saharan Africa are underweight for their age. Nor 
do they have access to clean water and sanitation that would cut 
the risk of disease.

The prospects of these children for the future are poor. Only 
about half of the primary age children in sub-Saharan Africa are 
enrolled in school, and one in three of those enrolled does not 
complete the course. For Kofi Annan to speak about African 
development in such glowing terms flies in the face of the 
evidence and is little short of criminal.

Some African economies have been buoyed by continuing demand for 
minerals and oil from China and India. But the wealth produced 
does not filter down to the majority of the population. It remains 
with a wealthy elite or enriches the global corporations and banks 
that claim the right to control Africa’s immense resources.

To take one example: the Nigerian economy grew by 7.23 percent in 
the first quarter of 2010 mainly as the result of increased oil 
production. Meanwhile, in northern Nigeria, women are sweeping up 
fallen grain in the market places to feed their families. In the 
Delta, where the oil is produced, the environment has suffered 
decades of degradation from oil spills. Local fishermen and 
farmers have had their livelihoods ruined and face high rates of 
disease. The profit from Nigeria’s oil enriches the very same 
companies that are responsible for the devastation of the Gulf of 
Mexico, while the majority of the population face deteriorating 
conditions.


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