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Many European countries start agreeing with African activists on more trade than economic aid.
Thursday, 18 July 2013
There is some agreement that the emergence of China for African, though
having its weak points, seems to have been the strongest liberating
force Africans have wanted for decades. Now more Europeans seem to have
joined the ban wagon of "trade not aid," to the Dark Continent.
Sweden had said vehemently clear, though divided along political lines,
that it was going to reduce the amount of economic aid given to many of
those African countries that are already showing improved economic
growth. That is the essence of economic aid though- to move the
countries out of poverty. Norway and Finland had also said they were
reviewing their African economic aid policy given that the continent
had started showing countries with substantial economic growth.
Increasing investment changing Africa for the better- trade not aid seen here working well in Ethiopia. Image from Swedish Television
In this light, many African activists had been clamouring for the
western economies to stop giving economic aid to their countries for
the money fuelled the runaway corruption observed today. They had
called for better trading chances instead. Now it looks like other
western countries are now joining the "less aid and more trade"
discussion.
According to a report on Swedish television, Holland is now joining the
Western countries' new approach to aid to African. They plan to cut
economic aid to the continent by 20 percent by 2017. This will affect
the wealthier Africans - those that are enjoying higher economic growth
at this moment. Aid in the future might target the rural areas.
The image of an Africa that is made up of war, conflict, and famine are
gradually fadding. The latest economic growth reports show how many
African countries are changing economically driven more by their
economic freedom with China rather than implanting the economic aid
received from the west.
China has given the Africans a black cheque in exchange for their
abundant minerals. African corrupt government have very limited
opportunity to embezzle these because the Chinese themselves are on the
ground to build the road, schools and hospitals which the western
economic aid had failed to build for century.
This has made the western countries to change their views on
economic aid though countries like the UK still favour huge economic
aid at the dissatisfaction of the Africans and the British public.
In Sweden the governing Alliance coalition is divided in the new aid
policy platform, where the Conservatives want to put more emphasis on
trade, while the People's Party and the Christian Democrats are
defending the traditional economic aid plan to the poorest.
Several EU countries are now reconsidering their relationship to the increasingly rich African countries. Holland is one of the EU countries that have gone furthest. According to a government decision in April, the country's aid budget will be reduced by €1 billion by 2017, which represents 20 percent.
"We are a trading nation and we feel that we do not get an adequate
share of Africa's emerging markets," says Hans Blankenberg, Dutch
Ambassador to Ethiopia, one of the countries whose economy is growing
fastest, in an interview with Swedish television.
"Our mission is to help Dutch companies help themselves, help them to
invest. We would both allow self-interest and solidarity to control. We
see that Africa will soon be on the same level as us and think it's
time to change that old-fashioned relationship between donor and
recipient to a more mature and equal relationship."
"When Dutch companies coming here and investing, it creates jobs,
which lifts people out of poverty. Moreover, they pay business tax to
Ethiopian government that contribute to the country's prosperity."
In this light, he points that Holland has invested heavily in an
enterprise fund and highlights two recent examples: the Dutch brewing
industry and the Dutch flower industry.
"Several Dutch breweries have invested in large breweries in Ethiopia.
They have signed contracts with 20,000 small farmers to cultivate and
supply raw materials to the brewers, such as hops." In addition, he
continues "40 Dutch flower companies are here employing together 50,000
people in the lucrative Rose industry."
The roses are flown home to the European market.
Holland will not stop aid all together, will use its heavily invested
enterprise fund, like Swedish Swedfund, which helps industry who wishes
to establish themselves in the new markets. The Dutch ethos is that
foreign direct investment in the long run is better than sustenance aid
that may be more whimsical in nature.
by Scancomark.com Team