The world was on the brink of a fresh outbreak of trade wars and protectionism after five years of fraught negotiation over a new trade deal ended in failure. The Geneva meeting was “lengthy and detailed … but at its conclusion, it remained clear that the gaps remain too wide,” Mr Lamy WTO Director-General told the full WTO membership. Hopes that a new agreement would create $300bn (£162bn) of wealth and drag millions of people out of poverty were in tatters after a meeting of the major powers dissolved into bitter acrimony.

 

Experts say the failure opens the way to an increase in trade wars and protectionism that will slow economic growth and worsen global poverty. It will also trigger a fresh round of bilateral trade deals that would favor rich countries at the expense of small nations. Watch this space for The African Executive’s opinion in the next issue.

Human Rights Abuse Eroding Wealth!

Mankind’s plight is sore. Ignorance surrounds his cradle. Then, his actions are determined by the first consequences-one which he can see. It is only in the long run that he learns to take account of others. Two very different masters offer this tutelage: experience and foresight. Experience teaches effectually but brutally. It makes us acquainted with the effects of an action by causing us to feel them. We cannot fail to know that fire burns after we have burned ourselves.

Watching the Lebanese and Israelis at each others’ throats; watching buildings which took days, expertise and huge fortunes to construct end up in rubble in a matter of seconds; watching military spending rise to stagnate a neighbor’s economy and  a happily married bride lose her husband  on the same day leaves one wondering-when will this mess stop?

If the sanctity of the individual was upheld; property rights respected; rule of law observed and Jew and Arab realized the simple fact that they are human beings faced with similar economic challenges requiring a united front, the Arab boy will dine with an Israeli girl and the hate crusade cease.

Sugar Output Boost in Ethiopia

Ethiopia is inviting foreign investors to help boost its annual sugar out put. Currently, the country produces 280,000 tones. Its target is one million tones by 2011. The state owned Ethiopian Sugar Development Agency (ESDA) plans to boost sugar production by upgrading existing factories, building new plants and developing land and water resources.

Weed Declared National Disaster

Prosopis juliflora commonly known as Mathenge could soon be declared a national disaster by the Kenyan government. The Environment minister Prof Kivutha Kibwana said that the hardy plant requires Kshs. 3 billion to eliminate. This comes after residents of Marigat in Baringo district took the government to court for introducing the plant in Kenya in the 70’s.

Open Markets for Africa

Mauritius Foreign Affairs and International Trade Minister, Madan Dullo has urged African countries to push rich nations hard to open their markets to labor and services. Madan Dulloo told delegates from the Southern African Development Community (SADC) trade block that African countries were well positioned to profit from the global services. He also urged African countries to invest in improving poor infrastructure which had damaged the continent’s competitiveness.

Kenya Joins the Developing Countries  

A list developed by the United Nations Conference on Trade and Development (UNCTAD) considers Kenya a developing country. This is due to its strong economy. Kenya is the only East African country excluded from the new list of the world’s poorest countries. According to the report, 50 countries are classified as least developed countries, 34 of them from Africa.

Mob Justice in Cameroon

Mob justice cases are on the rise in Cameroon. In January, angry villagers in Cameroon's North-West province beat their chief to death and burnt his corpse after they accused him of selling farmland to wealthy cattle breeders. In May, villagers in the small locality of Batibo, also in the North-West, stormed a gendarmerie station, pulled out two suspected armed robbers from a cell and lynched them in front of the police.

In many African countries where law and order has broken down because of war and rampant corruption, mob lynchings or beatings are common. In Kenya this month, a mob beat to death six young men accused of robbing a house before setting their bodies on fire. The 2006 U.S. State Department Human Rights Report on Cameroon blames the sharp increase in mob justice on the absence of an effective criminal prosecution system.

New Power Plant in Ethiopia

The Ethiopian government and an Italian company have signed a $ 2 billion hydroelectric power project (Gibe111 Hydro Electric Power Project) deal, said to be the biggest in Africa. It was signed between the Ethiopia Electric and Power Corporation (EEPCO) and SALINI Construction, an Italian company currently undertaking various construction works in Africa.

The hydropower project will be constructed in the North West Ethiopia where there are ample water resources including the Nile River. The hydropower plant project is expected to be operational by 2011.

Africa Famine Response "Too Little, Too Late"

Citing this year's drought in east Africa, where up to 11 million people still require urgent assistance, and renewed food insecurity in Niger, where at least 1 million people are vulnerable in coming months, the international aid agency Oxfam has said that food emergencies in Africa are occurring three times more often now than in the mid-1980s, but the global response to famine continues to be "too little, too late".

“It will cost the world far less to make a major investment now in tackling root causes of hunger than continuing the current cycle of too little, too late that has been the reality of famine relief in Africa for nearly half a century," Oxfam Britain's Director Barbara Stocking said.

International Recognition for Coffee Farmers

A cooperative society in Nyeri District Kenya won the Utz Kapeh certification for responsible coffee production. Utz Kapeh is an international body that oversees the implementation of global standards in socially and environmentally responsible coffee growing and sourcing practices. The farmers are now able to sell large quantities of coffee in Europe. The buyers include a top roaster, Kaffehuset Friele of Norway.  Utz Kapeh has 17 exporters, traders and roasters registered in Africa.  

Poverty Paradox in Congo

Despite huge reserves of precious minerals such as diamonds and gold in DR Congo, it is still languishing in poverty. A report by Human Rights Watch says that gold in the volatile north-east of the country has been the catalyst for much of the conflict in the area. Some of the biggest fighting and abominable treatment of civilians took place near Bunia in Ituri District, the site of one of Africa’s richest goldfields.

Sullivan Summit, an Eye Opener

Chairman of the Sullivan Foundation, Ambassador Andrew Young described the just ended 7th Sullivan Summit as an opportunity for African-Americans to understand Africa better. He said that Africa left lasting impressions on its visitors and revealed that the next summit would be held in Tanzania. China would participate.

'Agricultural Investment in Eastern Kenya' Launch

Over 50 people from Agri-business, the academia, research institutions, micro finance sector, NGOs and media attended Agricultural Investment in Eastern Kenya by James Shikwati and Stellah Amuhaya launch at The Pan Afric Hotel on July 19th, 2006. Hon. Kipruto Rono Arap Kirwa M.P and Minister for Agriculture, Republic of Kenya recognized the book’s advocacy on efforts to mobilize and bring farmers together in forming farmer and multi-stakeholder linkages and network with a business outlook. He was pleased that IREN recognizes that change of attitude is the best way to re-energize rural populations, empower farmers and enable them to pursue and sustain sound development programs. He urged Kenyans and by extension Africans to think outside the box and see opportunities in challenges. The book is available in leading bookshops in Nairobi or can be ordered directly from the IREN office.