G20 Pittsburgh’s over - so, how did it go?

Sep 30th, 2009 8:46 AM EST
By Mikiko Imai

The summit of G20 leaders in Pittsburgh last week, a year after the Lehman shock, was always going to be about economic recovery and on whether we need to regulate banker’s bonuses. So, did they talk development, at all? The short answer is yes. First, they reaffirmed previous commitments that they have made to the poor. Second, the leaders called on the World Bank to develop a new trust fund to support the new Food Security Initiative agreed at L’Aquila G8 Summit in July. Third, they agreed to review the capital needs of the multilateral development banks, especially the World Bank’s soft loan arm, the International Development Association (IDA), and the African Development Bank (AfDB).

But, there were some clear omissions too. On climate change, even though some G20 leaders committed to scaling up its assistance at the UN High Level Summit on Climate Change just a few days ago, the G20 as a group failed to call for resources to help the poorest countries adapt to the harmful impacts of climate change, and tackle its causes.

This Summit was another opportunity to recognise Africa as part of the solution to the global economic recovery. We thought that the best way to underscore the important role that the continent plays in today’s world is for the G20 to agree to hold an upcoming G20 Summit in Africa. With the G20 becoming the new G8 and the next several hosts already queued up (Canada in June 2010, South Korea in November 2010, and France in 2011), unfortunately, there will be no “G20 Africa Summit” any time soon. One thing is sure though – regardless, ONE will urge these leaders to keep the challenges of Africa and the world’s poor as an important issue on their table.

Read ONE’s analysis of the G20 here

ONE’s Reaction to the Pittsburgh G20 Communique

Sep 28th, 2009 8:19 AM EST
By Virginia Simmons

Overall, the Pittsburgh G20 Summit appears to have made some progress towards reshaping global power structures to make them more representative, but it still has some way to go before it becomes a truly representative global decision making body.

I spent the summit with our US Government Relations Director Tom Hart, who said:

“Moving from the G8 to the G20 is a seismic shift: it brings many more of the world’s people to the table, but the new expanded world body must now start addressing the needs of the poorest countries, especially in Africa. For nearly a decade now, Africa has been squarely on the G8’s agenda, even if delivery on their commitments has been mixed. During this transition time, African development must not fall through the cracks. One way to show the world will not forget Africa would be to hold an upcoming G20 summit on the African continent.”

As I posted earlier here, we passed our petition, in which 75,000 ONE members worldwide call for a G20 Summit to be held in Africa, to the US delegation at the summit.

Below are some key points in the summit’s communique that are relevant to Africa:

• Agriculture - The G20 called on the World Bank to develop a new trust fund, as a way to implement the G8’s food security initiative announced at the L’Aquila Summit in Italy in July. This multilateral fund will support the set of principles championed by the White House to make aid for agriculture more effective, coordinated and geared towards the strategies developed by poor countries themselves.
• Climate change – The G20 failed to call for resources to help the poorest countries adapt to the harmful impacts of climate change, and tackle its causes. It was disappointing that there was no mention of the urgency of addressing these needs.
• African Development Bank – The G20 have reaffirmed the commitment to make sure the multilateral development banks have enough finance, especially the World soft loan arm, the International Development Association (IDA) and the African Development Bank (AfDB). The African bank has increased its lending to respond to the financial crisis by as much as US$4bn and now needs support to replenish its coffers. ONE welcomes Canada’s announcement of an extra US$2.8bn in loan guarantees for the Bank.
• World Bank and IMF- Both International Financial Institutions took steps towards increasing representation of developing countries.

The G20: A Chance to Address Climate Change

Sep 25th, 2009 1:53 PM EST
By Beth Adler

Climate change is more firmly on the global agenda now more than ever, not just because the final round of the UN Climate Change Conference is taking place this December in Copenhagen, but because we are increasingly seeing the effects of climate change. ONE is also calling for the G20 to address climate change this weekend at the Pittsburgh G20 summit, but we’re keeping with our theme looking at it from the perspective that ‘Africa can be a part of the solution.’

Despite contributing only 3.6% of total global carbon emissions, sub-Saharan Africa will feel these effects—through droughts, floods, erratic rains that disrupt growing seasons—both first and worst. Any deal brokered in Copenhagen later this year must include the impact that climate change will have on the world’s poorest—and take into account the potential that developing countries hold to address climate change. The G20 meeting in Pittsburgh is the perfect place to get ahead start by working to do the following:

•Ensure that any global climate deal mobilizes funding to support the response to climate change in developing countries. In the short-term, agree on a down-payment to help developing countries deal immediately with the impact of climate change and build trust in international negotiations;

•Agree on principles to ensure that climate financing is spent predictably, effectively and through transparent governance structures;

•Ensure that a global climate deal considers Africa’s potential contribution toward reducing global carbon emissions, particularly in regard to carbon markets.

Not only will Africa bear the brunt of the climate change impact, but sub-Saharan African countries have the potential to help reduce global carbon emissions. The development of robust carbon markets, the adoption of low-carbon and leap-frog technologies, and the institution of carbon-offsetting programs like re-forestation projects can all flourish in the developing world—without sacrificing development, and maybe even encourage it.

ONE’s message at Pittsburgh is that no global recovery can be constructed in a stable manner if it excludes Africa, and the same goes for any discussion on climate change. We’ll be bringing you the latest from Pittsburgh as the week progresses, so keep an eye out here on the blog.

-Beth Adler

Amazing Mural Unveiled

Sep 25th, 2009 9:20 AM EST
By Virginia Simmons

Earlier this week, I attended the unveiling of a giant 200-foot mural created by the “Moving the Lives of Kids” (MLK) Community Project in downtown Pittsburgh.

ONE’s petition asking the G20 to hold a future meeting in Africa covers 100 feet of the wall. The MLK team, including nearly 20 local artists and 30 children from the community, painted the wall in less than five days. When we arrived for the unveiling and press conferences (and as it started to pour down rain) they were putting on the final finishing touches.

(If you’re in Pittsburgh, the mural is on Ross Street between 3rd and 4th.)

Why a G20 in Africa?

Sep 24th, 2009 11:48 AM EST
By Nora Coghlan

All eyes are focused on New York right now, but tomorrow Pittsburgh will grab the global stage when heads of state from the world’s biggest economies show up for the G20 Summit. In addition to a variety of requests for follow-up from the G20 London Summit and the G8 Summit in L’Aquila, ONE is also calling for the G20 to agree to host an upcoming summit in Africa.

But why? The obvious answer is that the African continent is made up of 53 states and nearly 1 billion people, so of course any discussion of the global economic recovery should be hosted in Africa at some point. Less obvious to many is the fact that when it comes to the economic crisis and other pressing global problems (like climate change and food security), Africa is part of the solution.

Take the economy. Until the financial crisis, 18 non-oil exporting African economies were growing individually at annual rate of 5.5% or more, the most sustained economic growth in decades. Increasing investment, trade and economic diversification were all part of this trend. This growth not only presented African countries with new opportunities to create jobs, increase exports and boost revenues, it also offered the world a new destination for investment and business. The same is true with the global economic recovery. Helping Africa get back on its feet after the financial crisis will reap benefits for the rest of the world. Research commissioned by ONE earlier this year showed that a $50 billion stimulus for long-term growth in sub-Saharan Africa would generate $250 billion of increased output and generate a 40% return for the investors in ten years time.

Climate and agriculture are other areas where Africa has a lot to offer. Preserving the continent’s vast natural resources, for example, could help offset global emissions. The forests of the Congo basin span 700,000 square miles, making it one of the world’s biggest carbon sinks. Africa’s potential for solar, geothermal and hydro-power provides new opportunities for private sector investments. And with greater investment in agriculture, Africa could one day serve as a global breadbasket and help to prevent the food shortages the world witnessed in 2008. Nearly two-thirds of Africa’s people are employed in agriculture, and some estimate that the continent is home to 800 million hectares of unused, cultivable land.

Much needs to be done to truly tap into Africa’s potential in a way that brings benefits to the rest of the global community- barriers to trade need to be removed, carbon markets need to be incentivized to invest in Africa and infrastructure needs to be strengthened so that the continent can attract more investment. But one easy way that the G20 can get the ball rolling is by announcing that it will host an upcoming summit on the continent. Doing so will signal that the G20 is sincere about bringing Africa to the table as these important global decisions are made and will force the rest of the world to take a closer look at what Africa has to offer.

-Nora Coghlan

ONE takes Pittsburgh!

Sep 22nd, 2009 10:21 PM EST
By Jessica Gomez-Duran

In anticipation of this week’s G20 Summit in Pittsburgh, ONE has taken to the streets to make sure all visiting world leaders and visitors will take notice of our message that Africa is part of the global economic recovery.

been blanketing shopfronts, restaurants, bookstores and everywhere in between with posters that read “ONE World. ONE Recovery. Africa is Part of the Solution.” and feature our very own Morgana Wingard’s great design work. Thanks to Nakturnal for the photo!

-Chris Scott

Busy September

Sep 17th, 2009 11:04 AM EST
By Jessica Gomez-Duran

It’s hard to keep track of our calendars here at ONE these days, as the next two weeks are jam-packed with important development events over in the US. Over the coming days, folks at ONE will be attending the G20 Summit in Pittsburgh (September 24-25), the UN General Assembly (the 64th session opened yesterday), a UN Summit on Climate Change (September 22), the Clinton Global Initiative (September 22-25) and a special seminar organised by the Global Fund to Fight AIDS, Tuberculosis and Malaria in New York.

It’s an important two weeks for the development community, as critical issues—innovative financing for global health, climate change funding, women’s empowerment, global economic recovery—will all be put on the table. Make sure to stay tuned to ONE’s blog, as we’ll provide updates on our travels throughout the coming weeks.

-Kara Arsenault

Can trade ministers gathered in India find the missing piece in the Doha puzzle?

Sep 4th, 2009 1:33 AM EST
By Mikiko Imai

Trade ministers from rich and emerging nations are gathered in India for the second day of the two-day informal trade meeting, to make progress on the G20 commitment to conclude the Doha Development Agenda by the end of 2010. As the US Trade Representative Ron Kirk said before he left for India, this could be a “very important step” for their efforts to do so.

So are we finally close to a trade deal that would allow all countries, especially poor African countries, reap the benefits of trade, where they can work their way out of poverty as a result of new opportunities presented by the expansion of global trade? On the one hand, the economic crisis has renewed the political will for an early conclusion of the long-stalled Doha round and thus there is more scope today to achieve the “ambitious and balanced” WTO deal pledged in L’Aquila in July. On the other hand, we have heard these high-level Doha promises before-without any results.

If the Doha Development Round is to be completed by 2010, participants must ensure that the talks produce a deal that integrates poor African countries into the global trading system. Keeping Africa’s needs in the picture is the only way to achieve a truly global recovery — ONE recovery ONE world.

African countries continue to face multiple constraints to expanding trade. A Doha trade deal must effectively help African countries trade more among themselves and with the rest of the world. For a Doha deal to benefit Africa, it must include real reductions in agricultural subsidies in developed countries, improved market access for goods from African countries, a new financial commitment to aid-for-trade and allow countries to pursue trade policies that support development.

If this progress is not forthcoming through Doha, WTO members should develop a separate trade initiative for sub-Saharan Africa. This could be built on existing preference programmes such as the U.S. African Growth and Opportunity Act (AGOA) and the European Union’s Everything But Arms (EBA) programme. The package needs to be comprehensive, combining market access and effective trade capacity building. A sub-Saharan Africa wide programme would help prevent trade distortions between neighbouring African countries, and could promote regional trade.

The G-20leaders meeting in Pittsburgh later this month should consider how they could achieve harmonised and coordinated trade measures for Africa – this would go a long way towards achieving a Doha deal that really delivers for development.

-Mikiko Imai

What We’re Reading 5/21/09

May 21st, 2009 9:24 AM EST
By Steve Wilson

AFP—Clinton: Mugabe needs to go
The departure of Zimbabwe’s President Robert Mugabe would be in “the best interests of everyone,” Secretary of State Hillary Clinton said yesterday. Clinton also told South African state television that the U.S. would not resume aid to the Zimbabwean government as long as it could not be sure it would reach the people concerned. “We’re encouraged by the new unity government that has been created. We are not yet ready to change our policy, but it is under review,” Clinton said.

Reuters—WTO trade talks machine revs up after US visit
A visit by U.S. trade chief Ron Kirk this month to the World Trade Organisation has transformed the political atmosphere of long-running global commerce talks, kick-starting the negotiations, trade sources said on Wednesday. “It’s like the engines are being started up again after being in cold storage for several months,” one trade official said. Diplomats cannot point to any sudden major advances in the WTO’s Doha negotiations, launched in late 2001 to help poor countries prosper through trade, but technical work on the details of trading goods from bicycles to bananas, which could lay the foundations for a future agreement, is moving along quietly.

Reuters—Africa hunger tied to politics
Agricultural experts looking at Africa’s enduring problems with food shortages and famine say hunger is unlikely to be solved there unless political stability returns to allow investment to flourish. At the “World Agricultural Forum” being held in South Africa this week, experts also said that only 10% of all foreign direct investment around the world went into the food category, and a mere 0.006% went into agricultural production. Investment to transport grains and livestock and improve water and irrigation are key to Africa progress, the experts said.

New Times (Rwanda)—Africa Did Not Cause the Financial Crisis (opinion)
A U.N. official writing in a Rwandan newspaper argues that as a result of the economic downturn, an additional 55 to 90 million people will be trapped in extreme poverty in 2009, with the number of hungry people expected to soar past one billion. To speed recovery, he writes, the world must learn from past mistakes and make sure that the interests of the poor are high on the financial crisis agenda.

AllAfrica.com—Global Crisis Is an Opportunity for Economic Renewal (interview)
The global economic crisis may lead to international reforms and new opportunities that may actually lead to the emergence of new economic powers, many of which may be African nations. These are some of the provocative arguments of “La crise” (The crisis), a recently published book by North African economists Hakim Ben Hammouda, Hédi Bchir and Mustapha Sadni Jallab that provides some fresh and encouraging perspectives on the current international situation. Here’s an interview by AllAfrica.com with one of the authors.

-Steve Wilson

ONE Hosts Press Conference at IMF Headquarters

Apr 23rd, 2009 9:05 AM EST
By Mikiko Imai

Earlier today, ONE held a press conference with the African Development Bank at the International Monetary Fund (IMF) headquarters in Washington D.C. The panel was an interesting mix of distinguished African development advocates and officials, including ONE supporter and activist Bob Geldof; African Development Bank President Donald Kaberuka; Tanzania Finance Minister Mustafa Mkulo; and New York Congressman Gregory Meeks.

The meeting was held in anticipation of the IMF and World Bank annual Spring Meetings. Both institutions will be making critical decisions to follow up on the details of the G20 commitments and determine what will be delivered and with what conditions. The press conference was focused on how the Spring Meetings can provide low income countries - particularly African countries - with the resources they need to get through this financial crisis as well as build on recent development successes, without creating a future debt crisis.

At the event, Bob described how the economic crisis has continued to marginalize the poor peripheral parts of the world. Interesting, Bob remarked that $5 billion (the amount ONE is asking the IMF to provide to developing countries in grants and loans) is a tiny amount compared to the bailout given out in developed countries. Bob referred to a study commissioned by ONE that shows that by injecting $50 billion to Africa now will would increasing global output by as much as $250 billion. He called for aid to Africa to continue and challenged the group to think about how relatively small change can make a big difference.

Mr. Kaberuka described how Africa, in the past several decades, has been a story of progress and setbacks. He questioned the idea of a “banking crisis.” Rather, Africa faces an economic crisis. Mr. Kaberuka emphasized that the amount needed for developing countries is relatively small - the international community pledged $50 billion at the last IDA replenishment and $9 billion for the African Development Bank. Doubling these could have a significant impact.

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