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

    US, Somalia Launch New Chapter in Relations

    US sends first ambassador to Somalia in 25 years; diplomatic presence and forces pulled out in 1993, after 18 US soldiers were killed when militiamen shot down military helicopter

    Brexit Vote Ripples Across South Asia

    Experts say exit is likely to have far-reaching economic, political and social implications for a region with deep historic ties to Britain

    Russian Military Tests Readiness With Snap Inspections

    Some observers see surprise drill as tit-for-tat response to NATO’s recent multinational military exercises in Baltic region

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

    By the Numbers

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Testing Bamboo as Building Materiali
    X
    June 27, 2016 9:06 PM
    For thousands of years various species of bamboo - one of the world's most versatile plants - have been used for diverse purposes ranging from food and medicine to textiles and construction. But its use on a large scale is hampered because it's not manufactured to specific standards but grown in the ground. A University of Pittsburgh professor is on track to changing that. VOA’s George Putic reports.
    Video

    Video Testing Bamboo as Building Material

    For thousands of years various species of bamboo - one of the world's most versatile plants - have been used for diverse purposes ranging from food and medicine to textiles and construction. But its use on a large scale is hampered because it's not manufactured to specific standards but grown in the ground. A University of Pittsburgh professor is on track to changing that. VOA’s George Putic reports.
    Video

    Video Orphanage in Iraqi City Houses Kids Who Lost their Parents to Attacks by IS

    An orphanage in Iraqi Kurdistan has become home to scores of Yazidi children who lost their parents after Islamic State militants took over Sinjar in Iraq’s Nineveh Province in 2014. Iraqi Kurdish forces backed by the U.S. airstrikes have since recaptured Sinjar but the need for the care provided by the orphanage continues. VOA’s Kawa Omar filed this report narrated by Rob Raffaele.
    Video

    Video Re-Opening Old Wounds in a Bullet-Riddled Cultural Landmark

    A cultural landmark before Lebanon’s civil war transformed it into a nest of snipers, Beirut’s ‘Yellow House’ is once again set to play a crucial role in the city.  Built in a neo-Ottoman style in the 1920s, in September it is set to be re-opened as a ‘memory museum’ - its bullet-riddled walls and bunkered positions overlooking the city’s notorious ‘Green Line’ maintained for posterity. John Owens reports from Beirut.
    Video

    Video Brexit Resounds in US Presidential Contest

    Britain’s decision to leave the European Union is resounding in America’s presidential race. As VOA’s Michael Bowman reports, Republican presumptive nominee Donald Trump sees Britain’s move as an affirmation of his campaign’s core messages, while Democrat Hillary Clinton sees the episode as further evidence that Trump is unfit to be president.
    Video

    Video New York Pride March A Celebration of Life, Mourning of Loss

    At this year’s march in New York marking the end of pride week, a record-breaking crowd of LGBT activists and allies marched down Manhattan's Fifth Avenue, in what will be long remembered as a powerful display of solidarity and remembrance for the 49 victims killed two weeks ago in an Orlando gay nightclub.
    Video

    Video NASA Juno Spacecraft, Nearing Jupiter, to Shed Light on Gas Giant

    After a five-year journey, the spacecraft Juno is nearing its destination, the giant planet Jupiter, where it will enter orbit and start sending data back July 4th. As Mike O'Sullivan reports from Pasadena, California, the craft will pierce the veil of Jupiter's dense cloud cover to reveal its mysteries.
    Video

    Video Orlando Shooting Changes Debate on Gun Control

    It’s been nearly two weeks since the largest mass shooting ever in the United States. Despite public calls for tighter gun control laws, Congress is at an impasse. Democratic lawmakers resorted to a 1960s civil rights tactic to portray their frustration. VOA’s Carolyn Presutti explains how the Orlando, Florida shooting is changing the debate.
    Video

    Video Tunisian Fishing Town Searches for Jobs, Local Development Solutions

    As the European Union tries to come to grips with its migrant crisis, some newcomers are leaving voluntarily. But those returning to their home countries face an uncertain future.  Five years after Tunisia's revolution, the tiny North African country is struggling with unrest, soaring unemployment and plummeting growth. From the southern Tunisian fishing town of Zarzis, Lisa Bryant takes a look for VOA at a search for local solutions.
    Video

    Video 'American Troops' in Russia Despite Tensions

    Historic battle re-enactment is a niche hobby with a fair number of adherents in Russia where past military victories are played-up by the Kremlin as a show of national strength. But, one group of World War II re-enactors in Moscow has the rare distinction of choosing to play western ally troops. VOA's Daniel Schearf explains.
    Video

    Video Muslim American Mayor Calls for Tolerance

    Syrian-born Mohamed Khairullah describes himself as "an American mayor who happens to be Muslim." As the three-term mayor of Prospect Park, New Jersey, he believes his town of 6,000 is an example of how ethnicity and religious beliefs should not determine a community's leadership. Ramon Taylor has this report from Prospect Park.
    Video

    Video Internal Rifts Over Syria Policy Could Be Headache for Next US President

    With the Obama administration showing little outward enthusiasm for adopting a more robust Syria policy, there is a strong likelihood that the internal discontent expressed by State Department employees will roll over to the next administration. VOA State Department correspondent Pam Dockins reports.
    Video

    Video Senegal to Park Colorful ‘Cars Rapides’ Permanently

    Brightly painted cars rapide are a hallmark of Dakar, offering residents a cheap way to get around the capital city since 1976. But the privately owned minibuses are scheduled to be parked for good in late 2018, as Ricci Shryock reports for VOA.

    Special Report

    Adrift The Invisible African Diaspora