THE G8 ARE NOT ‘MAKING TRADE WORK FOR AFRICA’

The G8 committed to ‘make trade work for Africa’, but have done almost nothing to facilitate greater trade between the continent and the rest of the world.

Most African countries have not been able to reap the benefits of globalisation. Despite a substantial increase in exports in recent years, Africa’s share of global trade is 3.5% in 2008, the lowest share of any region in the world. Even a small increase in this share of trade could translate into a substantial amount of income for Africa. In 2007, 1% of global trade was worth $119 billion – more than three times what sub-Saharan Africa received in development assistance in 2007.

Making trade work for Africa requires a combination of enhanced access to developed country markets, ‘aid for trade’ to help countries produce and deliver goods, a reduction in agricultural subsidies in rich countries that create an unfair advantage for their goods, and flexibility that enables governments to develop and implement trade policies that enhance poverty alleviation strategies. The magnitude of G8 agriculture subsidies and the failure of the Doha trade negotiations continue to make a mockery of the G8’s promise to make trade work for Africa. As the world works to rebalance and rebuild the global financial system, conditions must be set that ensure that the nearly 1 billion people living in Africa are not excluded from the new global economy.