Attracting encroachments to national sovereignty by rapacious Washington-connected multinational corporations and the meddling attentions of their powerful home country; stunting reform and economic development at every turn; breeding economic dependency; firmly controlled by foreign companies and giving little beneficiation to the country of production; upending and undermining political institutions; and not even sustainable.
These are ringing accusations which bring to mind one natural resource –oil. Certainly not the banana. This is somewhat understandable; oil more readily lends itself to the vilification touted in these bleak and cynical claims, and it has been the subject of visible conflict, with allegedly oil-motivated American interludes into Kuwait, Iraq and Libya being all too well known and well televised.
Nonetheless, it is one of the blights of modern political economic analysis, including those with a bent for “resource curse” theory, that in their discussion of the interaction of forces that have resulted in the paradoxical plights of some resource-rich countries, they tend to overlook one of the most important culprits, or perhaps better understood as a catalyst in a larger political process; the innocuous banana. And yet, perhaps just as much as oil, this energy source has been the fons et origo of many social, political and economic malaise in many underdeveloped countries who possess them.
This inevitable interaction with politics is only more obvious when we consider the economic significance of this product; bananas are the world’s fourth most consumed food crop, after rice, wheat and corn, with some 350 billion bananas consumed every year. Figures of this magnitude rarely rack up by market forces alone and nominally hint at a set of vested political and economic hands at work.
In this brief article, a slice of the long and storied history of the politically-derived banana’s impact on the economies of numerous states which were in possession of it, particularly regarding Latin America, the Caribbean and sub-Saharan Africa through the prism of the unholy alliances between big corporations and dictators, as well as the battle for market access.
Unholy Alliances: Dictators and Corporations
The South American country of Ecuador rarely finds itself on the top 3 list of any global rankings. Yet it occupies that very spot when it comes to world production of the banana. Some 18% of the bananas traded worldwide during the 1970s and 1980s originated from Ecuador, and this number expanded to 30% in the 1990s. Banana production and trade in Ecuador gives direct employment to an estimated 380 000 people. This tells something about the history and geography of this fruit on two particular points; why Ecuador and why now? The road to this present-day reality is an interesting and entangled one through which we gain insights into the nature of globalization as a performative process and its structures with implications far beyond Latin America.
In order to flourish, banana plants require rich soil, combined with 9 to 12 months of sunshine along with constant, heavy rains of to 80 to 200 inches a year. This is a demand level unmatchable by artificial irrigation if the given plantation is to compensate for the production costs and still have the ability to sell at the low price for which the banana is known. This gives us an important clue as to the Ecuadorian presence among the top producers in the world. But that is only a partial aspect on a bigger picture.
For one, how did the bananas get to Latin America, when they are said to be native to the tropics of South and Southeast Asia, and are likely to have been first domesticated in Papua New Guinea? And how did one particular variety of this fruit, the Cavendish, conquer the world market when there are thousands all across the world? The answer to these questions are political and are to be found in the early half of the nineteenth century.
The mass production of the banana such as we know today commenced specifically in the year 1834 and saw an explosion in the late 1880s and from the beginning reaped political consequences. Prior to the 1870s most of the land that bananas were grown on in the Caribbean had been previously used to grow sugar, and indeed before then bananas were virtually unknown in the United States. But this quickly changed and just 30 years later, Americans (then totaling at 70 million people) were consuming over 16 million bunches a year. Like all rapid expansions and enormous profits, this came at a high cost, and perhaps none bore it more than the producing populations.
The odyssey started in 1871 and, indicative of those twists of fate with which history is so littered, not with anything to do with agriculture but the construction of a railroad in Costa Rica overseen by an ambitious23 years-old Minor Keith, born in New York. The mega project sees hundreds lose their lives, including the lives of Keith’s two brothers. Bur Mr. Keith is undaunted. While building the railroad in Costa Rica he was also hatching a far grander plan. As construction made progress, he ordered the planting of bananas on the land easements to either side of the tracks. The bananas flourished and once the railroad was brought to completion it was possible to economically transport the bananas to Americans who were beginning to acquire a taste for the exotic fruit. By the next decade, Keith owned three banana companies. Keith then joined up with a Cape Cod sailor, Lorenzo Baker, and a Boston businessman, Andrew Preston. The three raised the necessary capital to establish the Boston Fruit Company. By 1899, the Boston Fruit Company and the United Fruit Company (UFCO) emerged – and in their wake formed the largest banana company in the world, with plantations all over Latin America and the Caribbean, including Colombia, Costa Rica, Cuba, Jamaica, Nicaragua, Panama and Santo Domingo. The company also owned 112 miles of railroad linking the plantations with ports. To complete their Charter company-like set up, and in order to protect their interests, they also owned some eleven steamships, known as the Great White Fleet and an additional 30 other ships under lease.
In 1901, Guatemalan dictator, Manuel Estrada Cabrera granted to UFCO the exclusive right to transport postal mail between Guatemala and the United States. Thus came UFCO’s first entry into Guatemala in whose wake the country would be held custody to a fruit company. Ruled by a conservative dictator who would be a puppet to the UFCO, Keith judged Guatemala to have “an ideal investment climate”. He formed the Guatemalan Railroad Company as a subsidiary of UFCO and capitalized it at $40-million. Other countries in Central and South America also fell prey to the UFCO, which they called or “El Pulpo” (the Octopus), but no other state felt the weight of the UFCO more than Guatemala.
Why was Guatemala such an ideal investment climate for the UFCO? “Guatemala was chosen as the site for the company’s earliest development activities,” a former United Fruit executive once explained, “because at the time we entered Central America, Guatemala’s government was the region’s weakest, most corrupt and most pliable.”In Guatemala, United Fruit gained control of virtually all means of transport and communications. United Fruit charged a tariff on every item of freight that moved in and out of the country via Puerto Barrios. As if that were not enough, the company also managed to exempt itself from virtually all taxes in Guatemala for 99 years.
In 1944, the people of Guatemala overthrew the right-wing dictator then in power, Jorge Ubico, and held their first ever true elections. The man they elected president was Dr. Juan Jose Arevalo, a socialist. A new constitution was drawn up, partly based on the American version. At this time, in the highly class-divided Guatemala, only 2.2% of the population owned over 70% of the country’s land. Only 10% of the land was available for 90% of the population, most of whom were native Indians.
Most of the land held by the large landowners was unused. Jacobo Arbenz who succeeded Arevalo in another free election continued the reform process. Arbenz proposed to redistribute some of the unused land and make it available for the 90% to farm. This greatly unsettled the UFCO; the United Fruit was one of the big holders of unused land in Guatemala. The pressure mounted heavily against the UFCO and finally the company made its pleas and called on officials in the US government, including President Eisenhower and Secretary of State John Foster Dulles (whose former New York law firm, Sullivan and Cromwell, was a representative of the company), saying that Guatemala had turned communist and was susceptible to Soviet Union influence.
Fortunately for the fruit conglomerate, almost every major American official involved had a family or business connection to the company itself(Allen Dulles, head of the Central Intelligence Agency, had served on UFCO’s board of trustees while Ed Whitman, the company’s top public relations officer, was married to Ann Whitman, President Eisenhower’s private secretary). Thus with great zeal, the U.S. State Department and United Fruit, enlisting the talents of the PR genius Edward Bernays (a nephew of the pioneering psychoanalyst Sigmund Freud), embarked on a major public relations campaign to convince the American people and the rest of the US government that Guatemala was a Soviet “satellite”.
Upon Bernays’ suggestion, the company also arranged and offered to pay for the expenses of journalists who traveled to Guatemala to learn United Fruit’s side of the story, and some of the biggest outlets (and particularly The New York Times and The New York Herald Tribune) published accounts favorable to the UFCO.
The campaign was a resounding success and in 1954, with consent manufactured, the CIA engineered a coup, code-named “Operation PBSUCCESS”. The CIA set up a clandestine radio station to carry propaganda, jammed all Guatemalan stations, and hired skilled American pilots to bomb strategic points in Guatemala City. The U.S. replaced the democratically-elected government of Guatemala with another right-wing dictator that would again bend to UFCO’s will. The propaganda machine, meanwhile, portrayed the operation to the American audience as the removal of an unpopular leader and the ushering in of liberty and democracy; this has an eerily familiarity when looked at through the prism of America’s 2003 invasion of Iraq.
After his firm, Hubbard-Zemurray, experienced much success importing bananas from Latin and Central America and selling them in in New Orleans, Samuel Zemurray went to the Central American republic of Honduras to expand his company into banana production in the year 1910. Honduras was deemed well-suited for growing bananas due to its proximity to the equator. These were the seeds of what would eventuate into Cuyamel.
But Cuyamel did not enter unchartered territory and the turf was already spoken for. The main player seeking monopoly status in the Honduras banana market besides was Vaccaro Brothers and Company. But both the Vaccaro firm and Cuyamel were eclipsed by the much larger United Fruit Company. Before United Fruit entered Honduras as a direct producer in 1910, the firm participated in the Honduras market by proxy through investments in both Zemurray’s and Vaccaro Brothers’ companies. Before United developed plantations of its own in the cities of Trujillo and Tela, it owned 60% of Cuyamel and 50% of Vaccaro. Even though the three companies were competitive against each other, they maintained some respective distance, and even pursued joint efforts in advertising and increasing banana agricultural outputs in Honduras.
Nevertheless, competitiveness seeps through. Zemurray had played an active role in Honduran politics since he first arrived in the country. In 1910, the administration of President Miguel R. Dávila had given the Vaccaro Brothers’ Company land for railroad construction and prohibited any other companies from building a competing railroad within 12 miles of the Vaccaro line. This had long displeased Zemurray, and he detested the Dávila government, having provided encouragement and money to a failed coup in 1908 against Dávila.
These concessions by the Dávila regime to Vaccaro further enrage Zemurray. He makes a concerted effort now to remove the regime, and has an accomplice in the person of former President Manuel Bonilla. Zemurray supplied weapons and transportation for Bonilla to launch a coup against Dávila. President Dávila fled, and Bonilla once again assumed the presidency of the nation, owing in large part to the direct intervention of Zemurray.
Shortly before Bonilla ascended to the presidency, Zemurray in 1911 transformed his company from Hubbard-Zemurray into Cuyamel Fruit Company. He acquired 5,000 acres of land for agriculture along the Cuyamel River in the northwestern extremity of Honduras, near the Guatemalan border. The firm took its new name either from this river or from the town of Cuyamel nearby. As a repayment for his support, Bonilla also granted Zemurray a concession to build a railroad between the town of Cuyamel, by the coast, and Veracruz, in the interior.
There were no more coups in the country through the end of the decade, but Zemurray’s Cuyamel Fruit was in fierce competition with Vaccaro and United. Further, Cuyamel’s development of a previously empty strip of land along the Guatemala-Honduras border almost led to an outbreak of war between the two states, but this was halted by US mediation.This incident of near-war strained relations between pro-Honduras Cuyamel and pro-Guatemala United, and this tension would not fully cool off until the two companies became one in 1929, when following the October crash of international financial markets, Zemurray sold Cuyamel to United Fruit in exchange for stock and retired, making UFCO the giant discussed in prior sections.
The Banana Wars: The Battle for the Banana Market
Africa’s banana market is a paradoxical reality. In the lowland of the Congo basin, farmers grow a greater diversity of bananas than anywhere in the world.In countries such as Uganda, Burundi, and Rwanda per capita consumption has been estimated at 99 pounds per year, the highest in the world. Uganda itself is the second-largest producer of bananas in the world after India. It is, however, one of the smallest exporters, the crops being used mostly for domestic consumption.
West African countries produce nearly all of Africa’s banana exports. Production in this region has grown rapidly over the past 15 years, now accounting for around 4% of the world banana trade. The vast majority of these bananas are sold in Europe, mainly in France and the UK, where an estimated 2.5 billion tonnes of bananas are peeled annually. But the African access raises questions and a myriad of issues about the nature of the international political economy than meets the eye.
Since 1975, African and Caribbean countries had had a quota of bananas to import into the EU market, enabling them to sell to Europe as many as they wanted to support. The official reasoning for this was that the European Union (then known as the European Community) hoped, that this would enable the economies of such developing countries to grow independently, without depending on overseas aid. Some economists, however, question the logic behind this.
To begin with, if the EU is concerned with the development of these countries and to free markets, it makes no economic sense to continue to subsidize their agricultural lobby with up to 50-billion euros per year. Secondly, the EU would remove barriers to a vast array of agricultural products from Africa – as it stands only bananas can be sold into the EU market without barriers to entry, and indeed disincentives are provided as seen in the imposition of 30% tariffs to unprocessed coffee but 60% to processed (that is job-creating) coffee from Africa.
Secondly, banana and pineapple production in Africa are dominated by two American multinational companies Compagnie Fruitière/Dole (a descendent of the Cuyamel company dealt with above) and Del Monte.In any case, US multinationals which control the Latin American banana crop hold 67% of the EU market and the US itself does not export bananas to Europe. This perhaps displays the extent to which the removal of barriers to access are motivated by US-EU alliance and not developmental concerns regarding Africa. The Caribbean is a different story, however.
Despite this, however, the US filed a complaint against the EU for further with the World Trade Organization (WTO) and, in 1997, won. The EU was instructed to alter its rules as a result. The chief outcome of this deal had been to protect banana farmers in the Caribbean from competition from Latin America, whose bananas are cheaper because they are grown on largescale, mechanised plantations run by giant USbased corporations.
After the WTO ruling, the US government continued to argue that free trade in bananas had not been restored, while the EU argue it has changed its rules. The US has then imposed a retaliatory range of 100% import duties on European products, “encompassing everything from Scottish cashmere to French cheese” as the Guardian then put it.
The US government was allegedly pressurized by powerful US multinational companies which dominate the Latin American banana industry. “The Bill Clinton administration took the “banana wars” to the WTO within 24 hours of Chiquita Brands, a powerful, previously Republican supporting banana multinational, making a $500,000 donation to the Democratic Party” according to journalist Patrick Barkham.
The banana wars came to a conclusion only in 2009 with an agreement between the EU and Latin American countries. The December 2009 agreement involved the EU reducing its tariffs on imported bananas from 176 euros ($224; £140) per tonne to 114 euros per tonne within eight years.
The Future and Sustainability of the Banana: A Challenge of Globalization
Like oil, the banana is not only problematic in its production and sale, but it may also not have much of a future; at least not as we know it. Researchers have declared the Cavendish to be potentially unsustainable and at risk of “imminent death.” This threat stems from the Panama disease; a deadly root fungus from the island of Taiwan. And since all Cavendishes are clones, if the fungus can kill one banana shrub, it can kill them all.
Of course the Panama disease is nothing new. It was identified at least as early as the 1950s, when it wiped out the Cavendish’s predecessor, known as the ‘Gros Michel’, or Big Mike. When the Gros Michel banana succumbed to the fungus, the Cavendish was found to be immune, at least until the fungus mutated and started its attack all over again. Starting in the 1990s, the Panama fungus began to work its way across Asia and Africa once again. The oceans have proven effective barriers for now, “but when someone with the fungus on their shoe can cross an ocean in a few hours,” National Geographic magazine warns“oceans provide little protection.”
The history of the banana has been one of deep politicisation, therefore; implicating it in the unfavourable destinies of multitudes. But the banana, and for that matter oil itself, is merely one among many problematic resources to reap these economic histories and contemporary consequences. Indeed its trysts with dictators, lobbyists and tariffs at the behest of seemingly malevolent multinationals says more about the politicised nature of international trade than the resource in question. Indeed very few resources, if at all, could undergo similar examinations and emerge unscathed to some degree or another.
Radical Markets- Workable Ideas
We are living in a very interesting age. Call it a phase. A phase; where long cherished ideas of globalization is coming under threat, where Xenophobic attitudes are taking hold, where the right-wing has gained a lot of wind under them and seems ready to fly. Trump’s election, Brexit and anti-immigrant hysteria, all point towards a disturbing trend which looks as if gaining popularity and acceptance. In such a phase the ideas and concepts, utterly novel in their nature and perfectly workable if implemented, presented in the book Radical Markets gives us a hope.
Let’s start with the monopoly problem of property. Private ownership of a property while have certain advantage still cause many problems. For instance, the example, that any single person can sabotage a project if he decides to value his property at exorbitant prices after knowing it comes under a government project, for instance Hyperloop, is very common. Commenting on the “allocative” and “investment” efficiencies of a property the writers present an elaborative system to optimize both of the above mentioned functions. Surprisingly abbreviating into a very apt name, COST, the Common Ownership Self-assessed Tax, provides us with an alternative to the normal, usual taxation system. Moreover, possessing a self-regulating mechanism COST assures that the person uses the property for the best purpose. Avoiding the intricate details here, one can consider it as a system where-in one’s property would be listed on a national/international database with its price along with the option of anyone able to buy it at a click. If the property is very important for a person he might keep the price at such a level so that nobody can easily buy it however, at the same time he will be paying a handsome amount of tax on the declared value (a detailed description regarding the basis of the taxation is given in the book) which should bring in the most optimal level of pricing. Too much of a price and he ends up paying a lot of tax, too little and someone else might get it.
Not only this but the above concept can also be applied to personal skills such as for doctors, engineers and others.
Other ideas include Visa for Individual Program (VIP) which might prove to be very useful to curb xenophobic attitudes. The proposal includes setting up such a system where-in an individual, for example from U.S., invites a computer scientist here in Pakistan, and vouchsafe for these immigrant while he works at the company that the person in U.S. was able to find and share his salary with this man. Such a win-win situation might help to address many questions and grievances of people from both side of the world.
One of my most favorite and a truly radical idea is that of Quadratic Voting. Democracy, of-late, is under threat all over the world. Populism is gaining momentum and rabble-rousers are seizing the opportunities. One of the major reasons is that somehow, at some point, like globalization, democracy has failed to deliver. Problems like “majoritarian cycling” make matters worse. At times, majority can trespass on the rights of minorities. To quote the example from the book let’s suppose there is a society that has a certain plant due to which the utility bills have reduced. However, there are some in that society who due to certain health problems suffer due to that very plant. In case of a traditional voting process i.e. 1 person, 1 vote (1p1v) the majority would easily win however, for that particular class of society it is a matter of life and hence immensely significant. Quadratic Voting focuses preference and intensity of preference instead of a for and against approach. In such cases a minority can win over a majority.
To conclude, all of us, especially policy-makers around the world should consider, brainstorm and try to implement these ideas, albeit, at smaller scale, for the sake of experimentation, deducing results, suggesting improvements and omitting errors, if any.
Closing the Loop: Meet the Pioneers Turning our Global Economy Circular
A remarkable transformation is taking place in the global economy, with more and more established and start-up businesses generating value from waste products that otherwise would end up in landfill or our oceans, rivers and lakes. This is the finding from the fifth annual Circulars award, which recognizes businesses, governments and individuals that use innovation and disruptive technologies to reduce waste, emissions and the use of harmful materials.
With the circular economy estimated to represent a potential $4.5 trillion growth opportunity for the global economy, this year’s awards saw an expansion in the scope and scale of successful circular solutions. In total, close to 450 applications were received from over 45 countries, a 50% increase on last year.
“More and more businesses understand that Closing the Loop isn’t just about stewardship of our natural resources, it’s about gaining a competitive edge. Companies that lack a circular strategy risk being left behind in the new economy of the Fourth Industrial Revolution, said Terri Toyota, Deputy Head of the Centre for Global Public Goods, World Economic Forum.
The winners received their awards at the World Economic Forum Annual Meeting in Davos. They are:
Award for Circular Economy Multinational: Schneider Electric (France) for integrating circular concepts throughout its business including prolonging product lifespan through leasing and pay-per-use; introducing take-back schemes into the supply chain and using recycled content and recyclable materials in their products; 12% of the firm’s revenues now come from circular activities and, between 2018 and 2020, about 100,000 tonnes of primary resource consumption will be avoided.
Award for Circular Economy SME: Lehigh Technologies (Atlanta, USA) for extracting resources from end-of-life tyres into new tyres and other materials. To date, the company has manufactured more than 500 million new tyres using its circular model.
People’s Choice Award: TriCiclos (Chile) for building and operating South America’s largest network of recycling stations. To date, the company has diverted 33,000 tons of recyclable material from landfills and saved over 140,000 tons of CO2 emissions.
Circular Economy Public Sector: The European Commission for their strategic leadership through the development and implementation of their international circular economy framework, ‘The Circular Economy Action Plan.’ This framework has assisted 24% of all EU SMEs in delivering circular products or services and has guided many Member State national governments to create their own circular economy strategies..
Circular Economy Investor: Impax Asset Management (United Kingdom) for encouraging circular investments by mainstream investors. Impax’s environmental markets classification system was adopted by the FTSE in 2007. Today, it invests around $8 billion in more than 100 listed companies.
Circular Economy Tech Disruptor: Winnow (United Kingdom) for helping the food industry cut waste. Winnow’s smart meters analyse what is put in bins, which in turn helps inform production processes. Winnow cut waste in half in thousands of kitchens globally and saved customers $25 million per year, the equivalent of 18 million meals per year or preventing one meal from going to waste every seven seconds.
Circular Economy Leadership: Flemming Besenbacher, Chairman of the Danish Government’s Advisory Board for Circular Economy, for leadership in driving the circular economy in Denmark and beyond including in his role as Chairman of the Supervisory Board of Carlsberg.
In addition to the winners above, shortlisted companies include:
– AB InBev (Belgium): For circular activities including upcycling spent grains into protein-rich drinks and working with customers and suppliers to improve recovery and return of packaging; 43% of the company’s volume is now packaged in returnable glass bottles
– Cambrian Innovation (USA): For its EcoVolt technology, which allows the conversion of waste water from industrial processes into clean water and energy; with nine plants across the US, the company has treated more than 320 million litres of wastewater, recycling almost 95 million litres
– Close the Loop (Australia): For keeping plastic out of landfill; by developing an asphalt additive, the company is able to use soft plastic and used printer toner cartridges to make high-performance road surfaces; every kilometre of road uses the equivalent of 530,000 plastic shopping bags and 12,500 printer cartridges
– DyeCoo Textile Systems (Netherlands): For bringing the circular economy to the textile industry; its CO2-based technology eliminates the use of water and chemicals in the dyeing process; the impact of one dyeing machine eliminates the need for 32 million litres of water and 160,000 kilogrammes of processing chemicals per year
– Enerkem (Canada): For making biofuels and renewable chemicals from waste; the company’s technology allows the carbon in non-recyclable waste to be recycled in five minutes and converted into biofuels and bio-renewable chemicals
– HYLA (USA): For extending the lives of mobile phones and other devices; through its repurposing model, more than 50 million devices have been given a second life, creating $4 billion in value for their owners, keeping 6,500 tons of e-waste from landfills
– Miniwiz (Taiwan, China): For turning consumer waste into high-quality building materials; its “Trashpresso” mobile upcycling plant enables recycling without shipping waste long distances; the company has saved 17 million kilogrammes of CO2 in construction projects alone
– Tianjin Citymine (China): For pioneering the concept of “urban mining” using mobile recycling stations at waste sites to produce a reverse-logistics system of urban waste
“Consumers, employees, stakeholders and policymakers alike expect companies to lead with purpose around sustainability and are holding them accountable. Inaction or idleness can severely harm competitiveness, with a drop in stakeholder trust costing businesses globally $180 billion in potential revenues,” said Peter Lacy, Senior Managing Director, Accenture Strategy. “Moving to a circular economy delivers the disruptive change needed to secure a sustainable future, while enabling businesses to unlock innovation and growth. We are proud to recognize the individuals and organizations that are leading the circular movement, creating a thriving global economy.”
Former African Envoys advocate for more economic engagements with Russia
Former Ambassadors have strongly urged African leaders and business entrepreneurs to prioritize the most sustainable development needs as the best approach to seeking Russian investors in fixing their economies in Africa when they converge this October for the first Russia-African summit planned in Russia’s southern coastal city of Sochi.
In separate interviews, they believed what was abundantly clear how to stimulate African governments into exploring investment opportunities in Russia and Russian investors into Africa within some framework of mutual-cooperation.
Former South African Ambassador, (H.E.) Mandisi Mpahlwa, said that Sub-Saharan Africa has understandably been low on post-Soviet Russia’s list of priorities, given that Russia is not as dependent on Africa’s natural resources as most other major economies. It is important to point out that Soviet and African relations, anchored as they were on the fight to push back the frontiers of colonialism, did not necessarily translate into trade, investment and economic ties, which would have continued seamlessly with post-Soviet Russia.
“Of course, Russia’s objective of taking the bilateral relationship with Africa to the next level cannot be realized without close partnership with the private sector. Africa and Russia are close politically, but they are also geographically distant and the people-to-people ties are still far under-developed. This translates into a low level of knowledge on both sides of what the other has to offer. There is perhaps also a measure of fear of the unknown or the unfamiliar in both countries,” according to Mpahlawa.
Former Ethiopian Ambassador, Professor (Dr) Teketel Forssido, said that one of the biggest problems has been keen competition from the United States, Europe, China and India as more developed countries with more advanced technological and development oriented solutions, and have become, for the past decades, ” investment patrons” in African countries. These are what Africa need, – foreign policy directed towards the development needs of Africa.
Former Nigerian Ambassador, Air Commodore Dan Suleiman, told me that Africa’s drive for sustainable democratic governance backed by an enhanced economically viable environment is of paramount importance. Many African leaders are emphasizing the quest to eradicate poverty and give people a sustainable environment for budding democracy.
“It is Africa’s hope that foreign authorities will back us in this direction. It is important to remind foreign investors that investment opportunities for developing large and medium scale enterprises are abound in Africa. The importance of the informal sector in generating employment and promoting self-reliance through higher productivity. We implore Russian investors to take advantage of these new potentials,” Air Commodore Dan Suleiman stressed in his discussion.
Undoubtedly, the Russian government stance on supporting the policy of Africa to employ plausible solutions to resolve their infinite problems should be extolled assertively, wrote former Tanzanian Ambassador, Dr Jaka Mgwabi Mwambi.
He said, for instance, “Tanzania is currently on the verge of a bitter wrangle with iniquitous restraints, in order to redress all government systems, for the bright future of its wrath citizens. Thanks, it is discernible that the country is proactively moving steadfastly in a middle-income economy.”
Former Kenyan Ambassador to the Russian Federation, H.E. (Dr) Paul Kibiwott Kurgat explained in a recent interview discussion that any platform created for African leaders has to address thoroughly development-oriented questions, Kenya’s diplomacy has mostly focused on strengthening economic cooperation with foreign countries.
“Looking at the global development, Kenya would always like to build on this long history of strong and comprehensive engagement, first and for most, through developing closer ties with Russia in trade, investment and economic cooperation. So, my advice is that African leaders have to think objectively, first about effective ways how to improve the economy,” he said.
The Government of Kenya’s priority sectors range from infrastructure and energy development, industrialization and agriculture, manufacturing, tourism and among others. The development opens a myriad of investment opportunities to all potential foreign investors across the globe including Russia, Paul Kurgat added in his emailed comments from Nairobi, Kenya.
Former Mozambican Ambassador to Russia, Dr. Bernardo Marcelino Cherinda, emphasized that the changes in Russia have provided a greater impetus for forging new diversified relations, especially in the economic sectors, in Africa.
By this measure, African leaders have to relentlessly work towards a more effective cooperation and use political dialogue to remove obstacles that might hinder smooth progress and development. Whether they like it or not, African leaders have to make rational decisions to align their efforts and policies with this key goal of developing or building their economies, according to him.
Both Russia and Africa have to facilitate participation in the private sectors, to get also involved in medium-sized economic partnership, joint ventures, agro-processing industries, health and education. African leaders do not have to, in the least, doubt the enormous potentials that exist for these, according to the former envoy.
“And, I think it’s equally important Russia and Africa focus seriously on cultural aspects in their activities in order to bridge the widening information gap between the two countries. Russia has made the mark and it’s respected for its indelible historical achievements, literature and for the human values. The use of soft power as an instrument for new image-making initiatives has to be intensified,” Cherinda concluded.
Stergomena Lawrence Tax, Executive Secretary of the Southern African Development Community (SADC), assertively stressed in discussion with Russian authorities that strengthening ties in a broad range of economic fields would show that SADC truly remains as one of Russia’s key partners in Africa. SADC is an inter-governmental organization with its primary goal of deepening socio-economic cooperation and integration in the southern region.
Foreign Minister Sergey Lavrov and H.E. Dr. Nkosazana Dlamini-Zuma, the first woman to lead the bloc of 54 states, had discussed several times about Russian companies or industries participation in major infrastructure projects on the continent. Currently, Chad’s Moussa Faki Mahamat has also held discussion on Africa’s Fourth Industrial Revolution and has made efforts at enlisting Russia’s effective support for the Agenda 2063 of the African Union (AU).
For the past one and half decades (since his appointment in 2004), Foreign Minister Lavrov has held in-depth discussions on the current situation in Africa and always pointed to the possibility of continuing to promote effective bilateral cooperation in many spheres and to work together towards using fully the existing potentials. He always reminds that Moscow firmly supports the principle “African solutions to African problems” within a framework of achieving the Sustainable Development Goals (SDGs) formulated by the African countries.
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