Monday, July 31, 2017

Civilizational problems are not that uncommon.

At the insistence of Germany, which holds the presidency of the G20 for 2017, an annexure was added to the Leaders' Declaration, which stated, "The Partnership intends to support related initiatives of the G20 and facilitate investment compacts between interested African countries, international organisations and interested partners to support private investment, sustainable infrastructure and employment in Africa." Why is Germany suddenly so concerned about Africa? Because of the flood of migrants coming into Europe, with an average of 55% of Europeans wanting a complete stop of Muslim migrants. So fierce is the opposition in some countries that Austria sent tanks to its border with Italy to stop migrants crossing over. Africa is enormously rich in natural resources, with a total population of 1.216 billion people, less than that of India, with an area 10 times the size of India. So, every person should be incredibly rich. Sadly, Africa's riches have been looted by other nations for centuries, helped by local despots who derived their power from the money paid by the same foreigners. This is not some conspiracy theory. Kofi Annan, the former Secretary General of the United Nations pleaded for a stop to the exploitation. Annan is from Ghana. As the competition for resources has heated up, with China entering the fray, rich countries shifted to digital exploitation, trying to tie African countries to a completely free and open Internet, with no customs duties, no transfer of technology and no commitment to recruit local people. While Europe has slapped a fine of $2.7 billion on Google for not giving equal listing to products of competitors, and Apple has been ordered to pay $14.5 billion in back taxes, Africa is being asked to give complete freedom to western companies. No wonder they walked out. Africa is making progress but not as much as it should, wrote Prof Noah Smith, because it has not been able to improve quality. Why not a Marshall Plan for Africa? Indeed, Germany has proposed a 'Marshall Plan with Africa' to stimulate African economy. Will it work? President Emmanuel Macron of France said that Africa has "civilizational" problems, which include "failed states, complex democratic transitions and African women giving birth to seven-eight children". There are 2.8 million people of Indian origin living in Africa so India should be able to increase investment across the continent. But, African nations must improve their governance so that their citizens do not have to seek refuge abroad. Same applies to India.

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