cuts-AFRICA rESOURCE CENTRE
|
|
| CUTS>CUTS-ARC>E-newsletter>CUTS ARC SOUNDS No. 5 |
|
About CUTS CITEE CART CHD C-SPAC CUTS-ARC Contact CUTS |
 |
|
|
CUTS-ARC
SOUNDS
Promoting
South-South Civil Society Cooperation
Vol. No. 5 of 2002
A
Bi-monthly E-Newsletter
Published by CUTS- Africa Resource Centre, Lusaka, Zambia
CONTENTS 2.
NEWS BRIEFS 3.
EVENTS/ACTIVITY NEWS 4.
RESOURCES AND
PUBLICATIONS Bretton Woods Prescriptions
for Poor Countries Hardly
a few weeks after the streets of Washington DC saw mass anti-globalisation
demonstrations against the International Monetary Fund (IMF) and the World
Bank (WB), Zambia is rife with discontent for the “exploitative and
unsustainable” policies of the two Bretton Woods institutions. A number of
workers’ unions and other civil society organisations staged a demonstration
on the 14th of December 2002 to halt the impending privatisation of
Zambia’s sole nationally-owned commercial bank, the Zambia National
Commercial Bank (ZNCB). The demonstration, staged under the Campaign “Save
Our Last Parastatals”, was to further protest against the sale of the other
remaining nationally-owned organisations; particularly the Zambia Electricity
Supply Corporation (ZESCO) and the Zambia Telecommunications (ZamTel) Company. Those
who oppose the latest series of privatisations in Zambia have vowed to see to
it that the sale of the parastatals is halted, this despite intimations from
the IMF Resident Representative that the sale of ZNCB was a conditionality for
Zambia under the Highly Indebted Poor Countries (HIPC) Initiative to reach
completion point next year and be eligible to get US$1bn in debt relief. The
arguments are that the privatisation process in Zambia has not worked but has,
instead, lead to the collapse of a vast number of major industries leaving the
country (nearly 75 percent of the population) in dire poverty. Thus implying,
then, that state ownership was not the real problem. Furthermore, citing the
World Bank in ‘Adjustment in Africa’ (1994), the Federation of Free Trade
Unions in Zambia (FFTUZ) says that the WB has itself admitted that efforts to
privatise state enterprises and improve their performance have yielded meagre
results in Africa. Indeed,
in the recent years, developing countries have been advised to adhere to good
governance and participatory decision-making by involving stakeholders as the
key to economic progress by various donors including the IMF itself and its
sister organisation the WB. One would wonder, however, whether it was not time
for these institutions to look back to their prescriptions and listen to the
people who actually meet and live with the reality of these policies. The
so-called structural adjustment programmes (SAP) devised and imposed on
countries such as Zambia are purported to favour the resuscitation of economic
growth and development that would,
ultimately, lead to better living standards of the people. And, needless to
say, better living standards are what the people of any nation desire. According
to a latest study by Professor Oliver Saasa, entitled “Aid and Poverty
Reduction in Zambia, Mission Accomplished”, Zambia is gliding faster and
deeper into poverty. This is despite the fact that Zambia’s per capita aid
is one of the highest in the world. According to Saasa, a country cannot stand
on its own if
it relies on the World Bank and IMF. When you get so much aid, it means that
the freedom to manoeuvre and make decisions is minimised, he says. In the case
of Zambia, despite positive growth in the economy through lowered interest
rates, among others, there has been no commensurate poverty reduction.
If we are not serious, externally prescribed remedies may become part of the
problem. Having
suffered for over a decade because of these policies, people are now saying no
more about these exploitative policies. Is it not time for the IMF and the WB
to stop and reconsider the whole issue and look towards alternative policies
and prove that what they aim at is, indeed, to better the lives of the peoples
in these impoverished developing nations? The former World Bank Chief Economist, Joseph Stigliz, some time ago, commented on the hollowness of the World Bank policies. However, these policies have not changed since then. Editor US
President to Grace COMESA Trade Exhibition As
part of the US–Africa Forum, President George Bush is scheduled to lead a
delegation, on his first trip to Africa, for an exhibition by the Africa
Growth and Opportunities Act (AGOA) eligible members. The Common Market for
Eastern and Southern Africa
(COMESA) has, thus, urged the AGOA eligible members to identify high
performing businesses to exhibit their goods and services. The sectors which
are the focal points of the private sector session are: textile and apparel,
agribusiness, leather and leather products, arts and crafts, transportation,
freight, finance and information technology. The
exhibition, scheduled for 13–17 January 2003, will be held in Port Louis,
Mauritius, at the COMESA Village, where members will be provided with space to
exhibit. This exhibition is part of the private sector section of the
US-Africa AGOA forum, an annual ministerial which will attract hundreds of
government and business leaders from the US and sub-Saharan Africa (source:
News from COMESA) EPAs
to Threaten African Industry: COMESA/SADC Study A
study, conducted by the Common Market for Eastern and Southern Africa
(COMESA) and the Southern African Development Community (SADC) to assess the
likely impact of the Economic Partnership Agreements (EPAs) on the performance
of key sectors in the COMESA and African Caribbean and Pacific (ACP) region ,
reports that some manufacturers are likely to be adversely affected by stiff
competition from the European Union-based industries in terms of prices and
quality, once the EPAs come into effect, latest by January 2008. The EPAs,
which will cover more than just the trade issues, are bound to lead to job
losses, further de-industrialisation and barriers to entry into new markets,
as a result of the reduced tariffs and restricted access to latest technology.
On the positive side, though, the Report says that exposure to competition
would force COMESA/ACP countries to reduce costs of production and improve
quality in order to be competitive and survive in the long run. (Zambia Daily
Mail, 20.11.02) Zambia’s
Report Rejecting GMO Maize Out The
Government of the Republic of Zambia on 29th October 2002 took the
final decision not to accept the genetically modified (GM) maize grain offered
to it, despite the grave hunger situation in the country. The decision
followed a report submitted by a team of scientists who were sent to study the
effects of GM foods in the US, Europe and other countries, which suggested
that, due to insufficient evidence, it could not be concluded that the GM
maize was safe and, thus, should not be allowed into the country. The
ban on the GM maize was introduced amid protests from some individuals and
organisations, saying that there was no evidence that the maize would be
harmful for consumption. And, the World Food Programme spokesman, Richard Lee,
said that the Organisation would now find it very difficult to meet the needs
of more than 2.5 million people facing hunger.
Currently, the country needs about 21,000 tonnes of food-aid each month
in order to feed the population that is facing famine. (REUTERS, 29.10.02). COMESA
Proposes Regional Policy on GMOs The
recent meeting of the COMESA Agricultural Ministers held in Kampala, Uganda,
on 4 November 2002 agreed to formulate regional policies on genetically
modified oganisams (GMOs). There was also consensus on the need for a
region-wide common agricultural strategy. The decisions came as a result of
the recent concern over the importation of GM foods into the region. (For
details: mkarake@comesa.int) The
United States Proposes Zero-Tariffs The United States Trade Representative, Robert Zoellick, has announced a proposal to have all the WTO Members eliminate tariffs on virtually all consumer and industrial products by 2015. The proposal argues that it was “a bold goal that would provide enormous economic benefits to developing and developed economies and raise the level of ambition in all other areas of the negotiations." According
to the proposal, the elimination of the tariffs would be done in two phases.
In the first-phase, which would run up to 2010, all tariffs of 5 percent and
less, including tariffs on all highly-traded goods, would be eliminated, while
the rest of the tariffs would be reduced to 8 percent across the board.
However, by 2015, the second-phase of the zero-tariff proposal, all
tariffs would have to be reduced to zero and would be complemented by a
reduction in non-tariff barriers, a list of which the US plans to announce by
January 2003. The
US proposal has, however, been met with mixed feelings from different sectors
of the national and global economy. While most of the US manufacturers were
enthusiastic about the proposed plan of action, the US textiles and apparel
industry showed
great resistance, calling it “a gift to China” to take over the world-wide
textile and apparel industry. Commenting
on the proposal, the WTO Director-General, Supachai Panitchpakdi, called for
caution. He said the plan could adversely affect the developing countries,
many of which had very high tariffs on goods to protect their fledgling
industries and could, thus, face a disproportionate burden . In the meantime, the EU has rejected the US proposal as
"unrealistic", stressing that "it has to take into account
preoccupations of developing countries". The
US proposal is also expected to meet with criticism from high-tariff Latin
American and Asian countries, such as Brazil and India, which are likely to
argue against the increased competition that their domestic industries would
be faced with, while their agricultural products were still subject to steep
barriers in the US markets. (For more information, Bridges Weekly, 28.11.02) Macedonia
to become the 145th WTO Member Macedonia
is
set to become the World Trade Organisation’s (WTO) 145th member,
following the WTO’s approval for its accession. The former Yugoslavia was
initially a member of the WTO’s predecessor body, the General Agreement on
Tariffs and Trade (GATT), but was suspended in 1992, when civil war broke out
among the units of the republic. It is reported that the country has already
finished bilateral and plurilateral negotiations with the WTO members on its
terms of entry. Thus, the grant of membership is merely pending approval of
the pact by the country’s Parliament and the official notification to the
WTO Secretariat of the ratification, after which Macedonia becomes a WTO
member, following an expiry of 30 days. (REUTERS, 15.10.02) Interface
between Trade and Regional Partnership Agreements CUTS-ARC,
in collaboration with MWENGO, Harare, Zimbabwe, and the Institute for Global
Dialogue, Johannesburg, South Africa, hosted a Regional Workshop on
“Interface between Trade and Regional Partnership Agreements – WTO,
Cotonou, AGOA and NEPAD: Are they conflicting or complementary?” in Harare
from 28-30 October 2002. Over 35 representatives from research, consumer and
advocacy organisations, media, academia, business and inter-governmental
organisations hailing from Zimbabwe, Zambia, South Africa, Malawi, Namibia and
Kenya were brought together at the three-day workshop. The
impetus for the workshop came from the belief that there was need for more
involvement of the various stakeholders’ representatives in policy issues at
both the national and regional levels. Thus, the objective of the workshop was
to help prepare a focused research and advocacy agenda on a synergic approach
to trade and development issues through genuine partnerships among
stakeholders. The workshop output would be used to influence policy debates
and decision-making at the national, regional and international levels. The deliberations of the workshop focused on the major trade arrangements in which the African countries are involved, viz., the WTO, the Cotonou Agreement, the Africa Growth and Opportunities Act (AGOA) and the New Economic Partnership for Africa’s Development (NEPAD). The purpose was to identify the various issues at stake in, as well as the benefits of, the various on-going negotiations. This was done by identifying the inter-linkages of the various trade arrangements and how they affect the people-centred development, for the benefit of the stakeholders. The workshop was organised with the resource support of the
Hivos Foundation, Harare, under the project, Fostering Equity and
Accountability in the Trading System (FEATS). (For details of the discussions,
please visit www.cuts-international.org or contact cutsarc@zamnet.zm Regional
Seminar on Investment CUTS
Centre for International Trade, Economics and Environment (CUTS-CITEE), India,
in collaboration with EcoNews Africa, hosted an Africa Regional seminar in Nairobi to discuss the
role of foreign direct investment (FDI) in economic development.
The Seminar, which took place on 18-19 October 2002, was
part of the project on “Investment for Development”, which involves
fact-finding and advocacy work on investment regimes in seven developing
countries, viz., Tanzania, Zambia, South Africa, Bangladesh, India, Hungary
and Brazil. The presentations at the meeting focused on the preliminary
findings of research carried out in Tanzania, Kenya, and Zambia on the impact
of FDI and were presented before the experts from about 20 African countries.
(For details: ifd_cuts@rediffmail.com).
African
Consumer Leaders Conference on Biotechnology Consumers
International – Regional Office for Africa (CI–ROAF), in collaboration
with the Zambia Consumers Association (ZACA), hosted the African Consumer
Leaders Conference on Biotechnology and Food Safety at Lusaka, Zambia, on
18-20 November 2002. The Conference was organised in the context of the recent
controversy over the prevailing food crisis in Southern Africa and the
importation of food items containing genetically modified organisms (GMOs) to
tackle the food insecurity. Representatives
of consumer and civil society organisations hailing from nearly 25 countries,
the business community and research organisations participated in the
three-day deliberations. The conference concluded with the adoption of
resolutions highlighting the position of consumer organisations in Africa on
GM food. (For details: mmotsi@ci-roaf.co.zw). National
Seminar on Competition Policy The
Zambia Competition Commission (ZCC), with the support of the UNCTAD, Geneva,
hosted a national seminar on competition law and policy in Livingstone,
Zambia, on 28-29 November 2002. The
Seminar brought together experts from several countries and stakeholders
hailing from various sections of the Zambian economy to discuss the role of
competition law and policy for economic development. The highlights of the
seminar included presentations of case studies on the implementation of
competition law, while dealing with soft drink and cement companies, and
interface between national and regional competition law in the context of
COMESA. (For details: zcc@zamtel.zm) Development
and the Challenge of Poverty: NEPAD, post-Washington Consensus and Beyond The
New Partnership for Africa’s Development (NEPAD) has been promoted as an
internally-driven and a new strategic framework for re-engineering Africa’s
development. This Briefing Paper argues that the NEPAD is donor-focused and
rooted in the neo-liberal macroeconomic discourse of the post-Washington
Consensus. The three core mechanisms outlined in the NEPAD – ‘sound’
macroeconomic policy and stability, greater openness of the African economies
and “good governance” – are at the core agenda of the post-Washington
Consensus. The paper concludes by arguing the need to transcend the current
discourse and practice embedded in NEPAD and the Bretton Woods Institutions.
(For further information please visit: www.cuts-international.org) Environment
at the WTO: Implications for Poor Countries The
United Nations World Summit on Sustainable Development (WSSD), which concluded
in Johannesburg at the end of September 2002, was hoped to be a forum for an
action plan to tackle the myriad environmental problems facing the world.
However, one trade-related issue that was discussed was that of agricultural
subsidies. The main concern is that these are environmentally unsound and
flout international trade rules. The Briefing Paper emphasises that a lot
needs to be done on trade and environment in the GATT/WTO.
(For further information, please visit: www.cuts-international.org) Enforcing
Competition Law in Zambia The
Research Report published by CUTS and the Zambia Consumers Association (ZACA)
gives an insight into the state of competition policy and law in Zambia.
Further, it attempts to relate the competition law to the economic development
policy, in general, and, more specifically, policies on market liberalisation,
foreign direct investment, consumer protection and other sector-specific
regulations. The Report is part
of a two-year comparative study of competition regimes in selected countries of the Commonwealth in Africa and South
Asia regions,
namely: India, Kenya, Pakistan, South Africa, Sri Lanka, Tanzania and Zambia.
The study
underlines the need to understand competition issues in developing countries
in the light of the rapid liberalisation and privatisation programmes being
undertaken by the developing countries. Therefore, it is important to regulate
privatised public monopolies. To obtain a copy of the Country Reports, contact
cuts@cuts.org or visit www.cuts-international.org
|
|
|
Africa Resource Centre
Suite 4.11, Main Post Office Building, |
|
This is a strictly non-commercial and educational service for non-profit organisations and individuals. |
|
D-217, Bhaskar Marg, Bani Park, Jaipur 302 016, India Ph: 91.141.2282821, Fax: 91.141.2282485
Hosted by: www.fullestop.com |
