News / Africa

Euro Debt Crisis Sidelines G20 Efforts to Focus on Developing World

Development groups push for more progress on development aid, accountability and corruption

Multimedia

Audio
William Eagle

The president of France, Nicolas Sarkozy, had planned to use his leadership of the G20 this year to highlight some of the needs of the developing world. Instead, the focus of G20 summit in Cannes has been on the threat of a Greek default and destabilization of the eurozone.

Europe’s financial crisis affects more than the 27 members of the European Union.

“There is a direct relationship between the crisis in Europe and flows of resources to Africa and development efforts around the world,” says Sam Worthington of InterAction, the largest U.S. coalition of non-profit organizations devoted to debt relief and development.

“Europe is one of the biggest centers of remittances around the world,” he explained. “As Europe gets poorer, those remittances begin to dry up. European banks have a large presence in Africa, bank credits will also continue to dry up. And as European countries begin to try to deal with their own fiscal crises, one of the first areas where we fear we will see cuts is in official development assistance.”

Famine and food prices

It’s ironic, Worthington said, that the debt crisis in the eurozone comes at the same time as the first famine of the 21st century in the Horn of Africa, with 13 million people being food insecure and another 750,000 people at risk of starvation. Contributing to the situation is the growing volatility of food prices, an issue that is also to be considered by G20 leaders.

U.S. President Barack Obama (L) walks with French President Nicholas Sarkozy, after Obama's arrival at Espace Riviera for the G20 summit in Cannes, France, November 3, 2011.
U.S. President Barack Obama (L) walks with French President Nicholas Sarkozy, after Obama's arrival at Espace Riviera for the G20 summit in Cannes, France, November 3, 2011.

“The solutions being offered here in Cannes,” said Worthington, “are important but not sufficient. One of the big proposals being debated in the communiqué right now are issues of food stocks in West Africa. At this point in time, it looks likely that some form of food reserves will be put in place but only for humanitarian uses in Africa. The broader question of regulation of food prices and the deeper fulfillment of the commitment made by the G8 at L’Aquila for f 22 billion dollars [in development aid] still remains elusive.”

Strengthening the safey net

Another goal of the G20 is to find new ways to improve the social safety nets of developing countries and support for development, education and climate mitigation. One proposal, back by Microsoft entrepreneur Bill Gates, calls for a tax on international financial transactions.
Some countries, including the United States, Britain, Japan and Brazil, oppose the tax.
“The UK will clearly not be on board,” said Worthington, “so it will come down to Germany, France and other euro countries, a process that will need to make it through to [European Union headquarters in] Brussels.

“It is unlikely France will act alone,” he continued. “We are seeing some support from South Africa and other groups. African countries have largely been silent in support for this tax, but if it is put in place it could generate up to 60 billion dollars in revenues.”

He said supporters of tax are using a two-part approach.

“The real question is what will be its uses?” he said. “Some in Germany say it should be used to offset deficits within European countries themselves. The battle for the tax itself is a big one. But the bigger battle is will this tax be used as a tool to finance some of the repayment effort s and financial efforts associated with Greece ?

The concern of NGOs, he said, is that the poor and development projects will not benefit in the long run.

French gendarmes stand near an anti G20 demonstrator who takes part in protest against globalization and tax havens, at the French-Monaco border in Cap d'Ail, November 3, 2011.
French gendarmes stand near an anti G20 demonstrator who takes part in protest against globalization and tax havens, at the French-Monaco border in Cap d'Ail, November 3, 2011.

“Our real cry here in Cannes,” said Worthington, “is that the problems the developed world is currently experiencing should not mean solutions are done on the backs of the world’s poor.”

He adds that with global interconnectedness, the answers to the sluggish world economy require inclusive solutions.

Inclusive growth means support for development efforts.

“The growth in Africa and in other parts of the world are now central to the well-being of people [everywhere],” he said.

“So there is now a direct economic relationship between development efforts in Africa, growth in African countries and the longer term global recovery,” said Worthington

You May Like

Hezbollah Chief Says Does Not Want War But Ready for One

VOA's Jerusalem correspondent reports that with an Israeli election looming and Hezbollah's involvement in Syria, neither side appears interested in a wider conflict More

Multimedia VOA SPECIAL REPORT: Despite Danger, Best US Minds Battle Deadly Virus

Scientists at America's premier biological research center race in military confinement to find effective drugs, speedier tests and a safe vaccine amid the deadliest outbreak of Ebola in history More

Kurdish Poet Battles to Defend Language, Culture

Kawa Nemir's work is an example of what he sees as an irreversible cultural and political assertiveness among Kurds in Turkey More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Egypt's Suez Canal Dreams Tempered by Continued Unresti
X
Heather Murdock
January 30, 2015 8:00 PM
Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Mobile Infrared Scanners May Help Homeowners Save Energy

Mobile photo scanners have been successfully employed for navigational purposes, such as Google Maps. Now, a group of scientists from the Massachusetts Institute of Technology says the same technology could help homeowners better insulate their houses and save some money. VOA’s George Putic has more.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

In the mid-1980’s, thousands of Sudanese boys escaped the country's civil war by walking for weeks, then months and finally for more than a year, up to 1,500 kilometers across three countries. The so-called Lost Boys of the Sudan had little time for games. But one of them later mastered the game of chess, and now teaches it to children in the New York area. VOA’s Bernard Shusman in New York has his story.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid