From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Fri Nov 13 2009 - 10:21:08 EST
Ethiopia's Meles says US at Fault for Africa's Econ Woes
By Peter Heinlein
Addis Ababa
13 November 2009
Ethiopia Prime Minister Meles Zenawi says failures in the U.S. financial
system are largely to blame for Africa's economic crisis, and pointed to
China as a possible key to recovery. Our correspondent in Addis Ababa has
details of the Ethiopian leader's keynote address to the annual African
Economic Conference.
Speaking to an audience of academics and policymakers, Ethiopia Prime
Minister Meles Zenawi painted a gloomy picture of Africa's economic outlook.
He said the theme of the conference, fostering development in the current
economic climate, may be impossible.
"The first question that comes to my mind is: Is it possible to foster
development when we have a whole era of economic crisis ahead of us? I am
going to suggest today that while it is probable that Africa will not be
able to foster development in the current era, it is nevertheless possible
to do so," said Meles Zenawi.
Mr. Meles, a former Marxist rebel leader, launched a blistering attack on
what he called "discredited neo-liberal economic policies" imposed on Africa
from outside. He said unsustainable consumption by the United States when
times were good had condemned Africa to a protracted period of low growth
ahead.
"The United States has hitherto served as the consumer of last resort and
helped to maintain the unsustainable division of labor and division of
production and consumption," he said. "It is no longer able to do it, and
this is the main cause of the current crisis."
Mr. Meles suggested Africa's best hope might be a massive infusion of cash
from China and other countries that have amassed surplus savings by
producing goods for the consumers.
"It is possible to imagine that the Chinese will decided to redirect some of
their surplus savings to infrastructural development in Africa," said Meles
Zenawi. "It is possible to do so because to some extent it is already
happening. Such a shift would mean tens of billions of dollars per annum
invested in African infrastructure, again opening the opportunity for the
transformation of the overall economy. Indeed, it is not only possible but
highly probable that the Chinese will take steps that would widen the window
of opportunity for Africa."
The Ethiopian prime minister, who will lead the African delegation to next
month's Copenhagen climate summit, expressed doubt the world is serious
about tackling global warming. But he said a climate deal could be a boon
to Africa, with its sources of renewable energy.
Some experts say Africa stands to receive as much as $100 billion a year
from rich countries to offset the effects of climate change.
The three-day African Economic Conference is being held against a backdrop
of low-growth forecasts for the near future. The 2009 growth estimate for
sub-Saharan Africa is just 1.3 percent, with a prediction of an increase to
four or five percent next year.
African Development Bank chief Donald Kaberuka, said prospects for recovery
remain fragile. He said a full recovery would not occur until the continent
returns to seven-percent growth, possibly within a few years.
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