THE EAST AFRICAN - NAIROBI - KENYA
Regional
Monday, February 10, 2003
Africa Has Just 1pc of the World's Income
By JOSEPH MWAMUNYANGE
SPECIAL CORRESPONDENT
African countries must respond to the challenges of globalisation to ensure they reap its benefits while minimising its risks, UN Under Secretary General and Executive Secretary of the Economic Commission for Africa, Mr K. Y. Amoako has said.
Mr Amoako said globalisation had facilitated the development of new technologies and products.
It has encouraged and increased efficiency in the use of domestic resources to enhance competition.
Speaking last Thursday in Arusha during an African Regional Dialogue of the World Commission on the Social Dimension of Globalisation (WCSDG), Mr Amoako said globalisation had provided an opportunity for poor countries to earn foreign exchange while registering marked improvements in the well-being of the people.
Finland President Tarja Halonen, who is the WCSDG co-chair with Tanzanian President Benjamin Mkapa, said that Africa had been losing out in the process of globalisation and the significance of the continent had declined in world politics and economy.
"Two general observations can be made about Africa's experience of globalisation. First, the continent is mainly excluded from globalisation and second, when globalisation does impinge on Africa, the experience is mainly negative," said President Halonen.
She said that currently only one per cent of the world's gross income is generated in Africa, while the foreign direct investment in the continent is less than one per cent.
She said that with a few exceptions, African countries have not succeeded in responding to the challenge of new information technology. WCSDG aims at presenting a realisable vision of a fair globalisation built on a sustainable foundation that meets the needs of people.
President Halonen said: "We are striving for a more human globalisation, one that will promote development, well being, growth and employment and reduce poverty."
Other prominent people were Dr Simba Makoni - an international consultant and formerly Minister of Finance of Zimbabwe, Professor A. Sawyer who is a Director of Research of the Association of African Universities; and Prof Anna Tibaijuka - UN Under-Secretary General and Executive Director of UN-Habitat.
Ms Halonen said that the only way in which a globalisation that correspondents to people's needs could be brought about is by listening to the people�s experiences, needs and dreams in different parts of the world.
She noted that although Africa appears to be only on the margins of global capital and information flows, its role as a producer of many strategic raw material and commodities means that Africa is firmly networked with the world economy.
"It is the reason why the negative effects of globalisation are being felt especially strongly in Africa," she noted. The Executive Secretary of the Economic Commission for Africa (ECA), Mr Amoako said globalisation has been a plus for many countries. It has enabled many countries to reap the benefits of economies of scale through enlarged market size.
He said globalisation has facilitated the development of new technologies and products. It has encouraged and increased efficiency in the use of domestic resources to enhance competition. Mr. Amoako added that globalisation has provided an opportunity for poor countries to earn crucially need foreign exchange while registering marked improvements in well being and dramatic decline in poverty.
However he noted: "Yet globalisation has not worked for everyone, and concerns continue to be widespread. It can expose countries to global risks and uncertainties thereby increasing their vulnerability to shocks."
He said that because of structural deficiencies in their institutions and policies, rendering many countries unable to compete in the global market place.
Despite these risks, Mr Amoako said: "We cannot wish globalisation away. It is an inevitable part of the development process and African countries must respond to its challenges to ensure they reap its benefits while minimising its risks," he said.
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