Policies and Economic Bodies of Sub-Saharan African Countries - Essay Example

World History During the age of colonization, global empires were created that ruled vast areas all over the world. The British Empire was one over which the sun never set and the governmental policies of expansion and increased exploitation of colonies like the American, Asian and African regions certainly helped the economic and social development which took place at home. In fact, the credit for taking the old world towards industrialization is also given to the wealth gained during the colonization era by historians such as Inozemtsev and Karaganov (2005) as well as O’Brien (1982). However, the after affects of colonization are still causing shocks in regions such as Africa and some parts of Asia where unresolved questions still come up regarding international borders disputes or sharing regional resources. In such situations, it becomes easy to say that perhaps freedom from colonization was not a good idea for some sub-Saharan African nations where freedom has resulted only in the law of the jungle. Countries where independence was supposed to bring about a break from oppression and the rule of the elite have only seen corruption, inept governments and governmental policies which are making the rich richer and killing off the poor. For the lack of a better word, it seems that some former colonies are more or less ‘unable’ to handle the processes of government since they cannot establish governmental policies or control. It can be considered a little condescending on the part of Akbar (2005) but he strongly suggests that the management of financial affairs and handling large sums of money regardless of where they come from can be an issue for many young countries. This is especially true in the case where these newly independent nations have had no previous experience in managing such sums of money. Therefore he is in complete agreement with Rato (2006) and they both suggest that international organizations and donor agencies should help governments. This help should be targeted towards the creation of useful government policies and financial aid should be given to support specific causes and development programs. In effect, instead of establishing control over the government of the country, the donor agencies or countries can establish control over how the donation is used. While this protects the sovereignty of the nation, it also allows the weak government to gain access to some of the brightest minds in the world when they need to know how they can improve the conditions of their country. As per the recent recommendations of the United Nations (2005), it is suggested that foreign aid in Africa should be used primarily for programs that work towards the elimination of hunger, controlling infectious diseases, improving education standards and towards reducing poverty levels. While these objectives are certainly dear to the hearts of the governments of poor countries, without the proper guidance, human resources and the money required for creating and continuing the programs, such development paths and successful project completion would be difficult indeed. If this can be considered government by proxy then it certainly is so because international humanitarian intervention as well as international financial intervention seems to be the norm in any location where there are unstable governments or rampant poverty. The IMF and World Bank come across as the prime candidates for being called neo-colonial organizations who govern with the blessings of Washington and London in economic terms over countries that seem unfit to manage their own economies. The defenders of these bodies call them a boon and a path to greater economic freedom for the less developed countries of the world. Those who oppose them call them a cruel implementation of new liberalism and a tool for the global hegemony of America (Williamson, 2000). The current strategy of the IMF regarding low-income countries has been given by the Managing Director of the Fund (Rodrigo de Rato) who has set the re-centring of policies and economic bodies of sub-Saharan African countries as a priority. This would enable these nations to come out of debt and the poverty cycle on their own rather than with help from the outside. In fact, the focus of the IMF appears to be on creating strategic alliances with these countries rather than a relationship which brings back memories of the colonial era. At the same time, the IMF wants to take some control of the areas which come under its own expertise of managing macroeconomic growth, debt control, and financial development. If we look at these policies closely, it does not appear why such policies can lead to accusations of colonialism since debt relief for the poorest countries of the world is a big part of the IMF’s program. To date, the IMF has already given complete debt relief which was owed to it by some of the poorest countries of the world. 13 of these countries were in sub-Saharan Africa and plans are underway to reduce or eliminate the debts owned by several other poor nations in Africa and Asia. At the same time, the developmental recommendations from the IMF would prevent or restrict new loans until establishment and development conditions were met so that the economy has had the chance to grow without the burden of debt servicing (Rato, 2006). In this new age of development support, financial and development aid is supposed to be given to specific situations or causes like hunger elimination, the reduction of poverty, education and the control of diseases such as AIDS/HIV and Malaria etc. This means that there are conditions attached with the use of large sums of money and the IMF wants to guide countries on how this money can be used without causing a false rise in the economic development indicators or increased inflation for the fledging nation (Rato, 2006). Such measures improve the chances of a country’s citizen’s to access micro-lending programs and loans for starting small businesses. The IMF involves itself deeply in the financial sector of a poor country and for some nations, financial control and economic independence might have to be forgone to some extent. On the other hand, this new colonialism has a lot of benefits since the IMF can call upon financial experts who are familiar with the difficulties and solutions that were created in other parts of the world. However, as reported by Akbar (2005), these experts may be as neo-colonial governors who have come to establish their rule rather than helpful and supportive guides. For instance, the IMF advises countries on how to conduct their Public Expenditures since they are important for handling increased aid flows. This also helps in the reduction of corruption to a certain extent and can even establish a baseline for accountability for the governments. However, this is a thorny issue and the Managing Director of the fund has asked for international support in these matters by saying: “But on governance and on many other issues, the international community must work together if policies are going to be effective. We are already talking with our colleagues at the World Bank about the division of responsibility between the two institutions. I look forward to discussing this approach further with the rest of the international community (Rato, 2006, Pg. 1).” In conclusion, it remains to be seen how the new agenda and the fresh policies of the IMF, World Bank and other institutes will help or hurt the development of newly independent states in Africa and elsewhere, but it is clear that this guidance has the ring of neo-colonialism attached to it. I feel that further research and study as well as the historians of the future will be able to give us a better picture if this approach is better than letting other countries govern these nations as under the old colonial era. Works Cited Akbar, N. 2005, ‘Scoring the Millennium Goals: Economic Growth Versus the Washington Consensus’, Journal of International Affairs, vol. 58, no. 2, pp. 233-244. Inozemtsev, V. and Karaganov, S. (2005). Imperialism of the Fittest. National Interest, vol. 80, no. 1, pp. 74-80. O’Brien, P. (1982). European Economic Development. The Economic History Review, vol. 35, no. 1, pp. 1-18. Rato, R. 2006, ‘The IMFs Medium-Term Strategy for Low-Income Countries’, [Online] Available at: http://www.imf.org/external/np/speeches/2006/031606.htm UN (United Nations). 2005, ‘What are the Millennium Development Goals?’ UN.org, [Online] Available at: http://www.un.org/millenniumgoals/ Williamson, J. 2000, ‘What Should the World Bank Think About the Washington Consensus?’, World Bank Research Observer, vol. 15, no. 2, pp. 251-264. Read More