Success and Failure of International Organisations Regards to Development in Africa - Essay Example

THE SUCCESS AND FAILURE OF INTERNATIONAL ORGANISATIONS REGARDS TO DEVELOPMENT IN AFRICA The African continentis still largely marginalized in the arena of world economy despite its abundant natural resources. This may be attributed to a variety of causes which include diseases and viruses (notably HIV/AIDS and malaria), corruption, serious human rights violations, failed planning, illiteracy, lack of access to foreign capital, and frequent tribal and military conflict (ranging from guerrilla warfare to genocide). More than half of its population lives under US$1 a day per person. The “Millennium Development Goal” was decided upon of reducing poverty by half by the year 2015. It that goal is to be achieved in Africa, some major policy changes and amendments would be required at the national and international levels so that growth and development can be boosted in the region. (Draper, 2003) Much analysis of African socio-economic issues was done by UNCTAD. It aims at increasing global understanding of the development problems of Africa so that action at national, regional and international levels can be accelerated and promoted to ensure integration of African countries in the world economy. (Draper, 2003) Towards that effect, UNCTAD works with various international organizations. It also contributes to the New Partnership for Africa’s development (NEPAD). The year 2005 will undoubtedly a most favourable year for the region. Apart from the G8 summit in Scotland (where Africa dominated the agenda); the WTO Ministerial Conference in Hong Kong in December highlighted the continent too. While the importance of aid and debt relief for the poorest countries on the continent is acknowledged, favourable terms of trade are increasingly regarded as the key to sustainable economic development and self-sufficiency. The matrix of carve-outs from GATT disciplines included exemptions for developing countries from tariff liberalization. Tariff reduction negotiations therefore covered industrial goods and were dominated by developed countries who exchanged concessions among themselves. Apart from exclusions from some obligations, another aspect of SDT was the granting of preferential market access to developing countries by developed countries as an allowable departure from the non-discrimination principle underpinning GATT. For this and other reasons relating to the overall power distribution in the system, developing countries and African countries were not seen as equal partners in the negotiations. In addition, reliance on preferences locked many African economies into long-term dependency on low value added production for developed country markets. approach’ to SDT gave way to one of limiting policy flexibilities and exemptions from obligations, except for least developed countries (LDCs), whilst allowing for ‘asymmetry’ in developing country commitments. To pacify developing countries, a range of SDT provisions was built into the various WTO agreements. (Draper, 2003) Like many developing countries, African countries were not happy with the results of the Uruguay Round. They adopted a defensive stance towards developed countries, which contributed to failure in two WTO Ministerial Conferences in Seattle and Cancun. They further highlighted their disillusionment by opposing the initiation of the current round of negotiations calling for past ‘injustices’ to be addressed first. Only after a much diplomatic compromises, particularly with promises of a new round to address their developmental issues they finally relented. With specific reference to the Doha Development Agenda and in generally, a fairer WTO for Africa, some issues to be considered: “agricultural reform, non-agricultural market access challenges; SDT and the implementation agenda; interpretation of WTO rules, as well as adjustment assistance for those countries that stand to lose from liberalization.” (Draper, 2005) Africa could benefit from reductions in subsidies in developed country, which promotes price increases for their output. Hence, some African countries find caught in a difficult bargain with the EU. African countries felt they would benefit from dismantling protection regimes of the developed country. On the other hand, food security in many of the African states depends on EU-subsidized food imports. EU export subsidy elimination could raise prices for these products thereby negatively effecting food security The complexities within the trade relations in the African Group came to the fore at Cancun and demonstrated the need for newer ways to deal with the various issues, which are justifiable concerns The new opportunities for industrial export expansion may open up opportunities for African countries to make a substantial difference, at least in the short to medium term. Further, a quid pro quo could be tariff reductions by some African countries, which met with resistance so long owing to a desire to develop the infant industries. (Draper, 2003) These dynamics are particularly observable in the clothing and textiles sector, for example. The basic challenge here is to find ways through which the WTO can help in the improvement of African supply capacity and general competitiveness. The developing countries are facing problems of implementation difficulties due to agreements entered into in the WTO. They are struggling to implement the Uruguay Round obligations specifically in areas like intellectual property. What is require is the establishment of a broad framework of strategic cooperation among international organizations like World Bank, WCO, International Monetary Fund, UNCTAD, International Trade Centre as well as the private sector. Africa now needs protection of the rules-based WHO especially when bilateral and regional free trade arrangements (FTAs) are developing widely. The African countries are increasingly finding themselves under pressure to enter into FTAs with developed countries often under circumstances where they are required to reciprocate the benefits they might receive or even to give more than what the WTO decides for them. Africa brought a set of common demands to the WTO Ministerial meeting. African governments have therefore called for a "development round" of trade negotiations to review implementation of the current Uruguay Round accords. (Khalid, 1999) Africa wants current WTO rules reviewed to force open Northern markets to African exports and remove tariffs on all imports from least developed countries (LDCs). Africa seeks to continue the existing waiver permitting regional trade agreements, including the Lomé Convention (Africarecovery, 2006), as well as efforts toward freer trade within African sub-regions by the Economic Community of West African States and the Southern African Development Community. References: Africarecovery; 2006; ACP countries defend trade preferences; Africa Recovery, United Nations; africarecovery.org Draper, Peter and Nkululeko Khumalo; 2005; Towards a Fairer WTO for Africa; ISS.co.za; Retrieved from http://www.iss.co.za/SEMINARS/2005/junfrance/fairerwto.pdf Draper P, and Khumalo N; September 2003; ‘Smoke and Mirrors? Sub-Saharan Africa’s Negotiating Position in the Doha Development through the Prism of Special and Differential Treatment.’ SAIIA Trade Policy Briefing No 2 Khalid R, Levy P, and Saleem M, 1999, ‘The World Trade Organisation and the Developing Countries’. The OPEC Fund For International Development. Vienna, Austria. Read More