Stop complaining and protect our economies

Over the years, the two Bretton Woods institutions, the International Monetary Fund (IMF) and the World Bank have been come under heavy criticism regarding their free market policies. The World Trade Organization (WTO) has also received its share of the blame. Leading the pack of attack has mainly been African leaders as well as other developing nations. It is undeniable that the impact of market liberalization has been extremely devastating especially for Sub-Saharan African states, which end up being the poorest in the long run. Since independence of such states, financial problems were bound to arise and they did so concurrently with developmental targets. Continuous borrowing and overdependence has thus been the prevailing practice and the situation is worsening by the day. Our awareness of history has however not stopped us from repeating it and in my view I think the complaining, criticism and persistent bashing of the above institutions should stop! As Africa, then as individual states the focus should be on how to mitigate the impact of such policies while taking into consideration the future of our continent, which has basically been a tool for the enrichment of others.

Many scholars in the field of development studies and political economy have contributed to analyses of impacts of IMF policies on Sub-Saharan Africa states. In addition, the experiences of such may be compared and reviewed. It is therefore absurd how we let the same ruin us over and over. For one, regional trading blocs such as the EAC, SADC and ECOWAS may foster a higher bargaining and protective power for concerned member states. Through such co-operations, African economies can be protected from Western centric interests and growth be achieved.

When it comes to World Bank borrowing, strategies underlying deadlines ought to be put in place. In order for most African states to meet their developmental targets, most of which are intertwined with the Millennium Development Goals (MDGs), foreign aid is necessary especially where funds cannot be raised immediately. These external funds however, should be allocated towards the intended projects fully, so as to avoid recurrent expenditure for states. It is these recurring expenditure that leaves most states lagging behind in terms of development mainly because, the funds were either embezzled by corrupt officials or not used for the required purposes altogether, forcing a repeat of the same.

With regards to aid, as much as borrowing may continue, it is vital to reduce, financial dependence, preferably annually, so that in the long run states may develop a culture of self reliance and self sustenance. External debt can be handed the same treatment, whereby periodic payments should be made at clearly defined intervals, in order to avoid accumulation of debt which may cause underdevelopment.

The above techniques are neither impossible nor unrealizable. They have actually been adopted and implemented by some states, with the best example being Brazil. Brazil was considered a third world country not more than 30 years ago. Recently, she overtook the United Kingdom to become the 6^th wealthiest economy. This was done by putting in place debt management strategies, economic strategies that would later make Brazil a self reliant state and thorough utilization of foreign aid for intended purposes. Other countries that have been able to achieve self reliance almost in the same manner are India, China and Turkey among others. It is not rocket science! It has been done and can be done!

In summary, I do not think that the leaders of most Sub-Saharan Africa states have made enough effort to minimize the effect of neo-liberal policies and institutional aid, on their countries. Despite this, they still lament as to how and why such institutions as the IMF, World Bank and WTO are impoverishing Africa. In my view, the whining has to stop and some action needs to be taken. Since awareness of the on goings, proceedings and intentions of IMF and World Bank are in the open, focus should shift on how to reduce economic and developmental harm on African states. I urge our leaders to do something about the mess now that it’s already made!