The West must approach Africa in a new light

French President Nicholas Sarkozy said it well this past week at the France-Africa summit when he said this about Africa in today's world: “Africa’s formidable demographics and its considerable resources make it the main reservoir for world economic growth in the decades to come.”

Chatham House has a new report that states the relationship between the West and Africa should be looked at in a new prism. Asian countries seemed to have caught the changing winds especially countries like China, Japan, India but many western countries have yet to fully adjust to the changing reality. Russia has a renewed interest, Brazil as well.  France due to historical reasons will always have interest in Africa and the lastest summit hosted by French President seems try and a new course with Africa.  Reuters has a similar take:

For the past ten years, fundamental change has been taking place across large parts of Africa. Growth rates and stability have increased. Political, regulatory and security reform have deepened. Increasing investment from China, but also Brazil, India, Turkey, South Korea, Argentina and other ambitious emerging powers has acted for the most part as an accelerant.

Even the global financial crisis has in some ways hastened this process, for while in the short and medium term it had a devastating impact on millions across Africa, it has also revealed the true ebb of power from East to West, and encouraged the new economic actors of the G20 to chase access to the 40 percent of the world’s mineral resources, and 1 billion consumers gathered in Africa. Almost as important is the 25 percent of UN General Assembly votes that are represented by the continent’s 53 countries.

Meanwhile, many Western countries seem trapped in a humanitarian conception of Africa.

Popular media coverage and policy judgement is overwhelmed with a perception that Africa is simply a problem continent with little strategic value, except as a space where largess is shown and good things done to make up in some small way for the messy reality of international diplomacy.

This is not only delusional and self indulgent, but damaging. For emerging power interest is showing that Africa is not a space distinct from the rest of the world. Many of their investments are valuable and welcome, but others are as exploitative and damaging as anything under colonialism.

Without a Western strategic and business engagement – bringing with it a focus on sustainability, regulation and transparency, the progress of the past 10 years is unlikely to be sustained. For the truth is that China’s development policy is first and foremost about China’s development, not Africa’s, and as yet the governments of many emerging powers are not focusing enough on ensuring their investments in Africa are sustainable, and therefore equitable.

African leaders have never faced so much choice, but they need to show more foresight as well, for it is only by combining the energy of the emerging East, with the regulation of the West, that Africa’s, and the world’s interests will be served. That needs Western strategic engagement, but more fundamentally it requires more effective leadership from within Africa itself. Post financial crisis, the opportunities for Africa and the world economy, but also the risks, have never been higher.

These are the main highlights of the report by Chatham House:

• African countries are playing a more strategic role in international affairs. Global players that understand this and develop greater diplomatic and trade relations with African states will be greatly advantaged.


• For many countries, particularly those that have framed their relations with Africa largely in humanitarian terms, this will require an uncomfortable shift in public and policy perceptions. Without this shift, many of Africa's traditional partners, especially in Europe and North America, will lose global influence and trade advantages to the emerging powers in Asia, Africa and South America.


• China's re-engagement is for the most part welcome, as is that of the increasing numbers of emerging powers such as Turkey, South Korea and Brazil that see Africa in terms of opportunities - as a place in which to invest, gain market share and win access to resources.


• Economic fortunes across Africa are now diverging, making it less meaningful to treat Africa as a single entity in international economic negotiations. Despite this, it is in the global interest that the African Union should be granted a permanent place at the G20. In turn, a more focused, sophisticated and strategic African leadership is needed.

Nothing to disagree with, as a matter of fact these are the points that we at Stratsis Incite have been emphasizing all along.

World Cup and Economics

Goldman Sachs may have taken a lot of heat lately, but they may have done themselves a great favor by releasing their 2010 World Cup Research Report earlier this month. Running a little over 70 pages, it's a remarkably in-depth summary of each country in this year's finals, including football prowess, economic state, and political situation. Furthermore, it provides a primer on the potential hosts of the 2018 and 2022 World Cups, and, unsurprisingly but more than interesting, an examination of economic growth and decline vis-a-vis the international football teams of respective countries.

Some of the most noteworthy things to take away: like most of the speculation has focused on, the report predicts a European-hosted cup in 2018, and a return to the U.S. in 2022. (Also included are bid pitches from Russia, England, and the U.S.) Interestingly, this is what it says about the U.S. bid:

The sport has taken roots in the USA and the market is quickly becoming one of FIFA’s most important. They already pay one of the largest television rights fees to FIFA of any country. However, the perception is still otherwise.

For U.S. soccer fans, that perception is extremely frustrating. It is somewhat accurate: for a team that has qualified for the last six World Cups (granted, a Foreign Policy* staff team could probably qualify for the finals out of the Confederation of North, Central American, and Caribbean Association Football -- CONCACAF), interest would appear to be lower than warranted. (Six out of six is, by the way, quite impressive: England, France, and the Netherlands can't claim that streak.)

But that's changing. Go to many bars in the District on Saturday or Sunday morning, and you'll see European football -- usually the English Premier League -- on the TV. From my own observations (be wary of perception bias), the sport with the most jerseys worn on the streets of Northern Virginia and D.C. is soccer, by far. Moreover, 24.5 million Americans play football, the second most  (behind China's 26.2 million) in the world. Since 1994, there has been a dramatic increase in the number of U.S. soccer fans, but among casual or non-fans, there still remains an idea that soccer is not an "American" sport. (It should also be noted that the U.S. Women's team is the dominant global powerhouse.)

UEFA's (Union of European Football Associations) selection of the 2012 Euro Cup host proved prescient, as well. Picking in 2007, Poland won the rights to host the tournament (OK, co-host with Ukraine, but since then UEFA has suggested Poland be the sole host, which the Poles have graciously declined to accept). Poland, however, was the only bid country that hasn't suffered economic decline since -- and yes, Greece was the first bid country eliminated.

Other notable findings: the Growth Environment Scores (a Goldman-devised figure of sustainable economic growth and productivity) of respective countries loosely correlate to soccer performance, but a much stronger connection exists between the improvement of economic conditions and national soccer teams. (Algeria, which did not qualify for the 2006 finals in Germany, posted the highest GES improvement among developing countries over the last four years.) The report also argues that success is partially dependent on the number of males aged 18-34 in countries, and provides a UN chart with predictions for 2050. If the claim is accurate, the Nigerian Super Eagles are going to be really, really good in a few decades.

Lastly, Goldman offers their own predictions of the semi-finals (I won't spoil, though I will say it's what my predictions are as well), and lists the probability (with their metrics) that each country will become World Cup champions.

It's lengthy, but an extremely interesting read, and provides the best rundown of the Cup to come that I've seen. Check it out.

African nations seek reform in major world institutions.

[caption id="" align="aligncenter" width="411" caption="French President Nicolas Sarkozy spoke at a press conference with his South African counterpart Jacob Zuma."][/caption]

African nations voiced a need for change in world major institutions like the World Bank, United Nations, & International Monutary Fund.

More than 50 African countries and France called on Tuesday for an urgent reform of the United Nations Security Council and other institutions so the continent can better be represented in global governance.At the close of the 25th Africa-France summit, France announced plans to ensure African nations are better represented at the G-20 when France takes its turn at the helm of the group.

France and the 39 heads of state and government and 12 other national delegations which met for two days in the Riviera city of Nice called for African states to be fully integrated into the global economy.

The summit reviewed issues from peace and security to climate change but added a new dimension by inviting more than 200 business leaders to encourage development through free enterprise. A charter for good business was adopted to encourage transparency among French businesses operating in Africa and, it is hoped, serve as a model for companies from elsewhere.

France agreed to support the African Union in strengthening security on the continent, including the African Standby Force, and pledged ¤300 million ($369.1 million) for 2010 to 2012 and agreed to train 12,000 African troops for peacekeeping by the African Union and U.N.

French President Nicolas Sarkozy stressed that France, once a colonial ruler on the African continent, wants to strengthen its role on all parts of the continent where countries that are traditional outsiders, notably China, are profiting from multibillion dollar projects.

"France doesn't just want to be friends with francophone countries ... What we want is for France to talk to all of Africa," Mr. Sarkozy said at the closing session. The French president did away with the traditional "dinner among friends" featured at Africa-France summits in which only leaders of former colonies are invited. He held a dinner for all attendees Monday night.

"You are all friends, all of you, and we can build together," he said.

France has been pressing for a greater voice for Africa in critical international forums, such as the G-20 and the Security Council, where there are five permanent members with veto rights—and where Africa, which makes up some 25% of U.N. members, wants a voice.

South African President Jacob Zuma called the summit "very useful."

"We believe strongly that times have changed," he said. Climate change was a major issue at the summit, and the leaders linked it to development.

They agreed to support creation of a renewable energy plan for a sustainable electricity system "based on concrete projects and innovative financing." Among such projects would be use of solar power.

France announced creation of the African Agriculture Fund, an investors' fund, for food distribution and other projects, to initially raise $120 million and that could reach $300 million, according to a final statement.

The next summit is to be held in 2013 in Egypt, where the just-ended meeting was initially meant to be held. Because of concern that Sudanese President Omar al-Bashir, sought by the International Criminal Court for allegedly masterminding atrocities in Darfur, would be invited, France persuaded Cairo to allow the gathering to convene in Nice.

Zimbabwe's President Robert Mugabe, facing EU sanctions travel restrictions, also wasn't invited. The nation of Madagascar, the Indian Ocean island where a 2009 coup toppled an elected president, was excluded from the summit.

More background on previous post about the France-Africa summit.