Pittsburgh Panel Packed and Powerful

Sep 23rd, 2009 10:13 PM UTC
By Virginia Simmons

Earlier today, I attended the “G20 and Global Development” panel co-hosted by ONE, the Center for Global Development, and the University of Pittsburgh Graduate Program of Public and International Affairs. The speakers included:

Tim Adams, former Under Secretary for International Affairs, Department of Treasury
Nancy Birdsall, President, Center for Global Development
Donald Kaberuka, President, African Development Bank,
David Lane, President and CEO, ONE
Dr. Louis Picard, Professor, Graduate School of Public and International Affairs, University of Pittsburgh, moderator

Center for Global Development President Nancy Birdsall started us off with a few key messages:

In the US, the financial crisis is about bank failures, job losses and foreclosed homes, but in the poorest countries the crisis is about under-nourished babies and children leaving school to work in the streets because their parents have lost their livelihoods.

She also pointed out that the G20 is a relatively new global meeting. While it does not have the ability to perform formal implementation of its stated goals, it does have the ability to steer other global institutions, like the UN, World Bank and the IMF, in their work. When the G20 meets, it should indicate which international institutions it wants to work on implementing each of its goals. Two key goals she hopes the G20 will address at this summit are the impact of climate change on the poorest and helping developing countries ensure themselves against economic crisis in the developed countries.

Next Former Under Secretary for International Affairs, Department of Treasury Tim Allen spoke. Among other topics, he said that people who have to rely on capital from others are the hardest hit in any economic crisis. The irony, though, is that there is enormous capital in these developing countries, but that a lot of the money shifts out country. There just aren’t the institutional systems in place to capture capital in these countries. We need to help build those institutions and leaders. “Infrastructure matters and human capital matters.”

ONE’s President and CEO David Lane focused on 3 main points in his opening comments. The first being inclusion. The G20 has stated that their highest goal is to accelerate the global economic recovery. Africa is among the hardest hit in this crisis and it must be part of any plan for a lasting recovery. He spoke of ONE’s formal push to have a G20 meeting on the continent of Africa in the near future, encouraging those in the room to learn more and sign our petition at ONE.org. Finally he spoke of the importance of partnership and the role that both developing and developed countries must play in order for progress to be possible. Developing countries must focus on improving governance. Donor countries must be willing to open up trade and invest in poorer countries’ infrastructure.

When President of the African Development Bank Donald Kaberuka arrived to the panel, he said “I want to share what we as Africans feel about the global economic crisis.” He used the example of Ghana, the first black African country to be given independence. The 80′s were prosperous years for the country, he told us, and the 90′s continued with strong political gains. “In 1982 the Ghana economy was worse than Zimbabwe. Today, Ghana is being toted as a model.

“But there is a degree of frustration being felt on the continent. Many countries, while yes they made some mistakes, did mostly the right things. Suddenly those gains have been put on hold because of external problems.”

“And then we see a response to this crisis that has not truly been global. This is not about charity. It’s about — let us contribute to that global economy with you.”

“This should have been the summit to address the unaddressed business of the global stimulus.”

Next the panel moved on to questions, some from our moderator University of Pittsburgh Professor Dr. Louis Picard and some from the audience. Dr. Louis Picard asked this question to David Lane: In Eastern Michigan, Americans are really suffering. Africa is remote from the lives of ordinary Americans. Why should they care about places that are far, far away?

David responded that, yes, we are hurting in this country, but in terms of absolute poverty, there is an argument to help those who simply have no food to eat and have to sell themselves in the street. That argument is a moral argument and it appeals to many Americans.

But the argument to care is not just moral, it goes further.

In an era of globalization, having a region that is not part of the global economy is against our self-interest. “I’m not going to say that there is a clear, linear relationship between poverty and terrorism, but Somalia, for example, has not had an effective government for more than 10 years, it hasn’t had real educational system for more than 10 years, so it shouldn’t surprise anyone that there is some very dangerous thinking flowing out of that area.”

There was a question from an student of economics at University of Pittsburgh to the full panel: I’ve heard that Africa isn’t poor. It’s poorly managed. Do you think that’s true?

Donald Kaberuka was the first to respond. He said that, as an example, there is nothing Africans have done to cause global warming, but Africans are suffering.

“At least the rich countries should do something about climate change and adaptation. We accept there are issues of governance, but it’s not our issues of governance that caused climate change.”

Tim Allen also weighed in, citing that Africa is rich in resources “but it doesn’t help Africa when those resources are shipped away and the profits are shipped away too.” The reason it doesn’t stay in the local countries is because there just isn’t the institutional framework. We have to find a way to keep savings in the countries and keep others from coming in and walking away with developing nations’ natural resources.

TAGS: 2009 Pittsburgh G20, Policy News