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The Economic Community of West African States (ECOWAS) has dedicated about 21 billion U.S Dollars for investing in developmental projects in the economies of the 16 West African nations. The West African regional body made its decision public in the Ghanaian capital, Accra where a cream of journalists from 15 countries in the sub-region met to review and validate a comprehensive communication plan for monitoring the project. The funds will be made available through the Community Development Programme (CDP) set up by ECOWAS to oversee developmental projects in the sub-region. More than 200 targeted developmental projects in areas such as transport infrastructure, energy, agriculture, health, educational development, capacity building among others would be monitored by the CDP.

The Coordinator for the CDP, Dr Guevera Yao said ECOWAS already has seven billion dollars in their reserves and need the 21 billion to enable them to holistically implement the five-year development plan. The programme is expected to be implemented within five years beginning this year. He further explained that the projects to be implemented are proposals brought to the CDP through a survey conducted among inter-governmental organizations, Non Governmental Organizations, Civil Society Organizations and media networks in West Africa. Dr. Yao finally concluded that if the ECOWAS CDP gets the needed support to implement the projects, it will enhance the overall economic development in the sub-region by increasing the Gross Domestic Products as well as reducing poverty.

The representative of the Africa and Regional Integration Bureau of Ghana’s Ministry of Foreign Affairs, Mrs Sena Siaw-Boateng who chaired the event urged the media in West Africa to play a leading role in making sure that CDP meets its objectives. She also pledged the Ghanaian government’s support for the CDP, adding that other governments in the region should also show same commitment.Economic experts say if the programme is successfully and efficiently implemented, it would generate a lot of employment opportunities for citizens of the ECOWAS region. The ECOWAS CDP programme was formulated in 2008 to help with the vision of transforming the body from an organization where heads of States meet to an organization where people or citizens within the ECOWAS region can actively play a vital role in developing the region.

 

 

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Ngwa Bertrand

22.Feb.2015

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The government in France faces a no-confidence vote in the parliament over unpopular economic legislation put forward by the country’s prime minister. The vote, due on February 19, was planned after Prime Minister Manuel Valls opted to use an obscure provision in the French Constitution to push the economic legislation. Despite a Socialist majority in parliament, Valls decided to use a “bazooka” known as “Article 49-3” because he feared that his “Macron Law” would not be approved. The Macron Law is a raft of right-wing measures that increase the sell-off of state-owned assets, reduce workers’ rights and increase fees on the population in the recession-wracked country.

“I was surprised to learn that such an article even existed,” French citizen Jean-Pascal Toumert told Press TV. “When you think of how many powers our president has when compared with other nations, it makes you wonder why we even bother with a legislative branch?” Dozens of so-called “rebel” Socialist MPs refused to toe the Socialist Party line because they say the Macron Law is too pro-business. The no-confidence vote is the only legislative recourse to the invocation of Article 49-3, and the Macron Law passes automatically if the vote fails. However, the no-confidence vote is nearly certain to fail as it would compel the dissolution of parliament and force new elections. Few believe that lawmakers would risk essentially voting themselves out of their own jobs, and many feel this adds a new layer of manipulative cynicism to the government’s decision to bypass normal democratic procedures.

The cohesion of the ruling Socialist Party may be in jeopardy, as there has been widespread condemnation of Valls’ decision. It seems that the parliamentary majority of the Socialist Party cannot be taken for granted when it comes to supporting President Francois Hollande’s economic choices. “This is the type of maneuver that makes young people lose faith in politics,” Marie Tournesol, another French citizen, told Press TV, referring to the prime minister’s decision. “I can’t believe that France could become a country which becomes so fractured that it is ungovernable, but this may be Valls’ legacy.” Since the Macron Law became public, there have been dozens of protests across the nation involving perhaps millions of people, as well as numerous labor strikes. The measures were mainly inspired by a report generated by ex-President Nicolas Sarkozy in 2007, a staunch fiscal conservative. The convergence of mainstream political parties on right-wing economic solutions has been a constant criticism of governments across Europe since the beginning of the Great Recession.

Valls regularly claims that the reforms will “unblock” France’s economy, which has just completed its worst three-year performance since World War II. The French prime minister has routinely said that passing the changes is critical to “national unity” in France’s post-Charlie Hebdo atmosphere, which many have called confusing and manipulative. Much of the English-language media has mistakenly put their focus of the Macron Law on a single provision: the extension of shopping on Sundays. Currently, France drastically prohibits working on Sunday in order to help ensure that workers have a regular time to spend with their families or to rest. While culturally significant, its economic impact is expected to be minimal. This is while the biggest beneficiaries of the Macron Law will likely be those who can afford to purchase the planned state sell-off of certain national airports and dozens of other state-owned enterprises. The privatization of state assets to wealthy investors has been one of the most important developments since the start of the eurozone crisis, and has included everything from historic sites in Greece and Italy, to Portugal’s water department, to state-owned corporate shares in France, Italy as well as many other examples.

The law also makes it harder for workers to sue for wrongful dismissal, in a clear reduction of the rights of labor. Amid record-high unemployment, reduced purchasing power and cuts to social services, the Macron Law will also provoke increased fees for legal and medical services. Some have speculated that the government’s goal with the reforms is to persuade the European Commission to ease France’s debt reduction targets. France’s debt continues to be above the European Union (EU)’s arbitrary rule of 3 percent of GNP, mainly because of the continued low performance of its austerity-yoked economy as well as dozens of billions in lost government revenue caused by tax cuts on businesses and corporations.

 

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Ngwa Bertrand

19.Feb.2015

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The Institute of Economic Affairs (IEA) has warned the Ghanaian government that the current rate at which it is borrowing could lead to a total collapse of the national economy. The IEA is Ghana’s Public Policy Institute with the aim of promoting good governance, democracy and a free and fair market economy for sustainable economic and human development. A statement from the institute said Ghana’s national debt is rising at an unprecedented rate. That the statement said is a signal that the country’s economy would collapse if emergency measures are not implemented in the short term.

It predicted that Ghana’s national debt could rise to about 70% to Gross Domestic Product (GDP) by 2016 and by 100% by 2020. Ghana’s current national debt to GDP ratio stands at 65%. ``Our national debt will grow to about 70% of GDP by 2016 and close to 100% by 2020, returning our nation to where it was some thirty years ago, at the brink of financial collapse’’, the report said. Ghana’s economy came to a stand-still in the early 1980s and the then military government had to seek help from the International Monetary Fund (IMF).The report blamed politicians for mismanaging the economy. It said when the IMF intervene in the 1980s, Ghana’s economy came back on track but politicians who took over thereafter destroyed everything the IMF had built for the country. ``With the economy now stabilized and the mission accomplished, the IMF passed the baton to our political leaders to carry on with the race. We had been given a new lease of life and it was our responsibility to manage our fiscal affairs prudently and with the utmost care’’. ``Not long after the departure of the IMF, our political leadership squandered the opportunity created for economic growth and went back to their old culture’’, the report continued.

The IEA proposed in the report that Ghana should have a non-partisan law that forbids any government from borrowing excessively. ``Under the circumstances, the question that faces us as citizens is: how do we inculcate the culture of financial discipline among our elected leaders knowing very well that their inability to manage the country's fiscal affairs has been the bane of our problems and the cause of our poverty and underdevelopment? The IEA proposes that Ghanaians should require the adoption of fiscal policy rules with ceilings on annual fiscal deficits’’, the report added.

This damaging report comes as Ghana is preparing to agree a deal with the IMF. This makes it the fourth time in 30 years the IMF is intervening in the Ghanaian economy. Last year, Ghana’s currency performed poorly against the major trading currencies. It was the worst performing currency in Africa. Inflation rose to an unprecedented level, compelling the government to write to the IMF for bailout. The IMF has said that it would soon complete the documentation procedure need for the takeover of the Ghanaian economy from the government.

 

 

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Ngwa Bertrand

16.Feb.2015

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The Chairman of the Economic Community of West African States (ECOWAS), John Dramani Mahama has said that West Africa will meet the deadline by 2020 to become single currency monitoring zone. Chairman Mahama who is also Ghana’s President said this in Niger where he is attending a special meeting of the ECOWAS Presidential Taskforce on the Monetary Cooperation Programme.  The ECOWAS Monetary Cooperation Programme is responsible for the establishment of the common currency for the sub region. In 2013, ECOWAS leaders at a meeting in the Senegalese capital, Dakar charged Mr. Mahama and Mahamadou Issoufou, President of Niger to ensure that the sub region meets the January 2020 timeline for a single currency.

John Mahama highlighted the task ahead of the West African region which he described as difficult and can be accomplished only through dedication and perseverance. “My brother President Issoufou and I will continue to work and meet with our colleagues Heads of State to push for the needed political support for the activities of the various Central Banks and Finance Ministries towards meeting the various criteria and timelines. There will be no room for excuses, and especially as political leaders, our people will not appreciate any further excuses”, he said

He also urged all member States to continue working towards the convergence criteria and demonstrate the needed political will that would create opportunity for the people. “The process towards the establishment of the proposed ECOWAS Monetary Institute must start now in order for us to have the Working Group ready ahead of June 2015 as contained in the road map. Moving ahead of the roadmap with items that do not require lots of background work will be critical to the attainment of the activities including the establishment of the ECOWAS Central Bank by June 2019”, he added.

Apart from the French speaking States in West Africa who have the common West African Franc known as the CFA, the rest have different currencies. The English speaking nations in the region attempted to set up the West African Monetary Zone known as the ECO but that has been abandoned in favor of the ECOWAS Monetary Zone. Economic experts have said that if the West African region is able to have a common currency, it would speed up economic growth in their respective countries. Currently, ECOWAS has common passports system and if the common currency programme is achieved, it would serve as a tool for the unification of the region.

 

 

 

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Ngwa Bertrand

11.Feb.2015

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Russia and Egypt have signed an agreement on the development of a nuclear power plant in the African country. The accord between Russia’s Rosatom State Atomic Energy Corporation and Egypt's Ministry of Electricity and Renewable Energy was signed during a meeting between Russian President Vladimir Putin and his Egyptian counterpart, Abdel Fattah el-Sisi, in Egypt’s capital, Cairo, on Tuesday. At a joint press conference following a meeting of the two leaders, the Egyptian head of state said the nuclear power plant would be constructed in Dabaa in northwest Egypt on the Mediterranean coast. "This is comprehensive cooperation. Moreover, it presumes that Russia will also provide relevant financial support in the form of an intergovernmental loan," said Rosatom’s chief, Sergei Kiriyenko.

The foundation of the power plant was laid during the rule of ousted president, Hosni Mubarak. A 2011 uprising ended his decades-long rule in Egypt. "Mr. President and I held constructive and substantial talks and continued the exchange of views started in Sochi last year over the whole spectrum of the Russian-Egyptian relations and the key regional and international issues," Putin said after the bilateral talks, adding, "Russia intends to remain a reliable partner and friend of Egypt."

"I am certain that today's visit will give a good impetus to the development of our relations," Putin further noted. Russian delegates, headed by Putin, arrived in the Egyptian capital to hold talks with their Egyptian counterparts on Monday and were greeted by Sisi at Cairo International Airport. Putin said during an interview with Egypt’s al-Ahram daily newspaper on the same day that Moscow and Cairo may soon abandon the US dollar in bilateral trade and use their national currencies instead. The Russian leader added that the volume of bilateral trade between the two countries amounted to more than USD 4.5 billion, a figure nearly 50 percent up from the previous year.

Russia is one of the main non-Arab supporters of Sisi’s government and was among the first countries to endorse Sisi’s presidential bid in 2014. Sisi visited Moscow soon after the ouster of Egypt’s first democratically-elected president, Mohamed Morsi, in a military coup in July 2013. He made another visit to the European country in August 2014 after he won the Egyptian presidential election.

 

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Ngwa Bertrand

10.Feb.2015

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Russia and Egypt have signed an agreement on the development of a nuclear power plant in the African country. The accord between Russia’s Rosatom State Atomic Energy Corporation and Egypt's Ministry of Electricity and Renewable Energy was signed during a meeting between Russian President Vladimir Putin and his Egyptian counterpart, Abdel Fattah el-Sisi, in Egypt’s capital, Cairo, on Tuesday. At a joint press conference following a meeting of the two leaders, the Egyptian head of state said the nuclear power plant would be constructed in Dabaa in northwest Egypt on the Mediterranean coast. "This is comprehensive cooperation. Moreover, it presumes that Russia will also provide relevant financial support in the form of an intergovernmental loan," said Rosatom’s chief, Sergei Kiriyenko.

The foundation of the power plant was laid during the rule of ousted president, Hosni Mubarak. A 2011 uprising ended his decades-long rule in Egypt. "Mr. President and I held constructive and substantial talks and continued the exchange of views started in Sochi last year over the whole spectrum of the Russian-Egyptian relations and the key regional and international issues," Putin said after the bilateral talks, adding, "Russia intends to remain a reliable partner and friend of Egypt."

"I am certain that today's visit will give a good impetus to the development of our relations," Putin further noted. Russian delegates, headed by Putin, arrived in the Egyptian capital to hold talks with their Egyptian counterparts on Monday and were greeted by Sisi at Cairo International Airport. Putin said during an interview with Egypt’s al-Ahram daily newspaper on the same day that Moscow and Cairo may soon abandon the US dollar in bilateral trade and use their national currencies instead. The Russian leader added that the volume of bilateral trade between the two countries amounted to more than USD 4.5 billion, a figure nearly 50 percent up from the previous year.

Russia is one of the main non-Arab supporters of Sisi’s government and was among the first countries to endorse Sisi’s presidential bid in 2014. Sisi visited Moscow soon after the ouster of Egypt’s first democratically-elected president, Mohamed Morsi, in a military coup in July 2013. He made another visit to the European country in August 2014 after he won the Egyptian presidential election.

 

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Ngwa Bertrand

10.Feb.2015

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