Congressman Rush Advocates For Economic Engagement with Africa

In recent weeks, Congressman Bobby L Rush (D-Ill.) has been vocal in his support of U.S. economic and trade development with Africa. Rush, who is the chairman of the House Subcommittee on Commerce, Trade, and Consumer Protection, has both issued a letter to President Obama encouraging him to expand the United States’ relationship with Africa and issued a statement on the subcommittee’s joint hearing with the Subcommittee on Africa and Global Health on U.S.-Africa Trade Relations: Creating a Platform for Economic Growth.

In his letter to President Obama, Rush states that he looks forward to working with the Administration to implement a mutually beneficial policy that will increase commerce and trade, especially for women, minorities, and small- and medium-sized enterprises.

The letter (PDF) reads in part http://www.house.gov/apps/list/press/il01_rush/BLRLettertoPOTUS-6-17.pdf

I strongly encourage you to expand the commitment of the United States with sub-Saharan Africa. Our interest should far transcend the humanitarian concerns that have frequently underpinned U.S. engagement with the continent. Economic development, natural resource management, human security, capacity building, and global stability was well as traditional humanitarian assistance are inextricably linked.

Within the urgent, complex human and national security agenda of lowering poverty; disease; hunger; and abuse of women, children, and minorities, I fully support your aspiration to stimulate private sector development, two-way trade, and investment. Currently, there are thousands of American jobs that depend upon U.S. exports to Africa. There could be many more when Africa realizes its potential. In the near future, we wish to see a larger African middle class, more job opportunities, increased purchasing power for its consumers, and more exports to the continent.

Shortly after issuing his letter, Rush issued a statement emphasizing the Subcommittee’s support for charting a more productive course between the United States and Africa.

Rush’s statement includes the following highlights: http://www.house.gov/apps/list/press/il01_rush/pr_090624_africa.shtml

“African economies are among the fastest growing, globally, and registered nearly 6% overall economic growth in 2007, the highest in 20 years. The continent’s challenges are amplified by the current global financial crisis. Nevertheless, Africa could represent a growth center and a stimulus to the world economy if provided with the proper tools.

“The U.S. government and private sector should jointly promote Africa’s economic development, U.S. trade with the region, and U.S.-Africa business partnerships.

“By increasing commerce and trade opportunities that include women, minorities, and small- and medium-sized enterprises, on both sides of the Atlantic, we will create a new zone of security and prosperity in Africa.

“I strongly encourage my colleagues to expand their commitment to expand trade and investment, spur economic growth, and create job opportunities for both the African and American workers.”

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UAE wins support from US on Irena - International Renewable Energy Agency

SHARM EL SHEIKH // The US will join the International Renewable Energy Agency (Irena) today and throw its support behind Abu Dhabi’s bid to host the headquarters at Masdar City at this evening’s vote, according to three US State Department officials interviewed here yesterday.

The officials did not wish to be named because they did not want to pre-empt an announcement expected to be released in Washington today. A decision by the world’s largest energy consuming nation to join Irena would reverse the policy of the previous US administration, under George W Bush, which argued against creating a new institution when existing UN regulatory organisations and the International Energy Agency already dealt with the development of renewable energy.

An endorsement of the bid to host the headquarters would represent an important boost in a months-long lobbying effort to bring the headquarters to Abu Dhabi.

“The way I look at it, we’ve done our homework,” said Sheikha Lubna Al Qasimi, the Minister of Foreign Trade. “We capitalised on our strong bilateral relationships with so many countries and also the commitment we have through our diversification of the economy.”

Officials from more than 114 member states will gather here to decide among competing bids by Abu Dhabi, Vienna and Bonn, as well as choose a director and allocate budget for the new agency.

“We have a very comprehensive, committed bid,” Sheikha Lubna said. “The bid is not merely about having an office in there as a secretary. We’re committed in many aspects in terms of co-investment with other countries towards renewable energy development.”

Irena’s creators say it will serve as focal point for information and policy on renewables, and the Government hopes a base in Abu Dhabi would elevate the emirate’s status as a global energy player.

The UAE Foreign Ministry has mounted a visible and aggressive campaign to bring Irena to Abu Dhabi, with Sheikh Abdullah bin Zayed, the Minister of Foreign Affairs, concluding a tour of dozens of countries in the past few months, said Ahmed al Za’abi, the UAE ambassador to Egypt.

“The diplomats of the UAE, under the leadership of Sheikh Abdullah bin Zayed, have exerted unprecedented diplomatic efforts,” he said.

Mr al Za’abi said that as a diplomat he was “warily optimistic” that the UAE would win the vote.

“After meeting the heads of the delegations in Sharm el Sheikh, most of them showed appreciation and support of the Emirates,” he said, adding that he thought the percentage of supporters was high.

Sheikha Lubna said the Government was “pretty comfortable and confident” going into the vote.

The UAE’s delegation kept up the lobbying yesterday: Mr al Za’abi was on hand at the airport to personally greet arriving delegates, and kandoras were a common sight in the hotels among dozens of officials deployed to Egypt to make the case for Abu Dhabi’s bid.

A number of European countries have also come out in favour of the UAE, including France, Portugal, Spain and Finland, noting that it is better placed than a European city to reach out to developing countries.

Irena will collect information on renewable energy, make recommendations to governments, and even train companies and officials in methods for implementing energy projects, said Arthouros Zervos, the president of the European Renewable Energy Council, who is one of four candidates for the post of director general.

It was likely that the group’s first priority would be to participate in climate change talks later this year, he said.

From the UAE’s point of view, Irena played into a larger objective by the Government to preserve stability in the energy market, since it would promote diversification of energy supply, Mr al Za’abi said.

Even though it is a member of Opec and an exporter of oil, he said, the UAE is interested in alternative energy because of its interest in the stability of the international energy market and the stability of the world economy.

cstanton@thenational.ae

mhabboush@thenational.ae

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Address by the Minister in The Presidency, National Planning Presidency’s Budget Vote debate Trevor A Manuel, MP

President Zuma, in announcing his new Cabinet last month, established a Ministry for Planning in The Presidency. Before discussing the broad objectives, key institutions and the proposed Green Paper, I wish to briefly sketch the context and rationale that gave rise to the need for a planning ministry.

Countries that have grown rapidly over two to three generations have often had clear strategies which required difficult trade-offs and a careful sequencing of policies. Often, long run growth and development requires long term investments in people, in democratic institutions and in infrastructure. Countries are often reluctant to make correct trade offs because trade offs sometimes imply pain in the short term or pain for some people, with long term uncertainty. If a country chooses to spend more on education, it must spend less on something else. If a country chooses to invest more, it must consume less today.

Governments all over the world are confronted with this dilemma of how to make trade-offs that involve long term benefits and short term pain. Democracies instinctively deal with policies that provide benefits within a single term of office. But many of the challenges that confront us today require a much longer term perspective. Addressing our skills constraints requires a long term perspective.

Reducing unemployment requires a long-term strategy. Reducing CO2 emissions requires a long-term plan. Addressing our future water and food requirements require long term plans that have opportunity costs in the short term with payoffs in the longer term. The creation of a planning ministry in The Presidency is about incorporating these ideas into our policy thinking and enabling government to make long term investments even though the return may accrue long after we’ve left office. Most importantly, it is about governments learning to do better.

A government which is focused on the development imperative and on improving on both the quantity and quality of services to citizens must place an emphasis on its own learning. Much of this learning arises from the rigour of analysis of the implementation of its policies. The authors Ashraf Ghani and Clare Lockhart, in their book “Fixing Failed States”, share the following observation of how things fall apart.

They observe various centres of power vie for control, multiple decision making processes confuse priorities, citizens lose trust in the government, institutions lose their legitimacy and the populace is disenfranchised in the most extreme cases, violence results. This negative cycle creates a sovereignty gap.

Mister speaker, it is this fragmentation that we seek to avoid.

To sketch the context for the planning ministry, allow me to outline what the broad roles and functions of The Presidency are in relation to planning. To do this, we need to locate the functioning of The Presidency in our system of government. The seat of the executive of government is Cabinet, headed by the President. The executive arm of government has to operate collectively. This implies that key decisions are taken collectively and members of the executive share collective responsibility and accountability for the decisions of the executive.

The Presidency has many functions, three of which are key in setting out the context today. The first is the policy coherence function. It is the task of The Presidency to ensure policy coherence throughout government, that policies support the overall objectives of government that inconsistent policies are changed, unintended consequences are recognised and managed and contradictory policy outcomes in government are minimised.

A strategic approach to planning that sets out a coherent vision backed by clear and measurable targets and programmes does not materialise out of thin air. Institutions and mechanisms are needed. The economist James K Galbraith sets out the argument for planning thus, the experience of the wider world even that of the most despised countries—provides no general case against economic planning and also none in favour of unfettered markets as a substitute for a planning system. On the contrary, it shows that in a properly designed system, planning and markets do not contradict each other. They are not mutually exclusive. Rather, the choice of one or another for any particular problem is a matter of what works best for the purpose - it's a question of a social and political division of labour, of what tools are needed for what goal.

Hence, the output of the planning function is clear direction, a coherent vision for the future supported by medium and long term plans. These plans should encapsulate the priorities of government and articulation of the policy tradeoffs it faces and its key policy choices. These plans and policy choices are to be made by the executive, collectively. The role of The Presidency is to lead the process of developing a coherent agenda and plan for government.

The second role of The Presidency is to ensure that the agreed upon agenda is reflected in the work and priorities of all of government, to ensure policy co-ordination in government. In any system, individual ministers, government departments, provinces, municipalities, state enterprises and other agencies should shape their actions in terms of an overall agenda or plan.

This policy co-ordination function is carried out through Cabinet directly by the President, through cabinet committees by the respective chairs of cabinet, through clusters of directors general, through Minmecs, the President’s co-ordinating council, through the budget and numerous other institutions and processes in government. The policy co-ordination function is critical to ensure that government’s agenda is implemented with the vigour and consistency that citizens expect and hence it is located in The Presidency. In summary, it is about driving the agenda of government.

The third function is the performance management function. The Presidency must develop the capability to monitor the performance of government, evaluate the impact of programmes and to intervene where performance is sub-optimal. This function is not about removing the accountability that vests in individual ministers, provinces or municipalities. It is a recognition that citizens expect more and better from their government and holds the executive collectively responsible for delivery.

There are several techniques to drive better performance, the details of which will emerge in the next few weeks. Our marching orders here are the clear focus on performance and accountability set out by President Zuma in his State of the Nation Address. Two elements in this toolbox are the ability to set clear targets linked to government’s priorities and to intervene to unblock institutional blockages to better performance.

These three functions of The Presidency are interlinked. They cannot be separated through artificial barriers. Government’s plan and priorities must drive the setting of targets. Assessments of performance must feed into the co-ordination role of government and informs what the agenda should be in various government clusters. Information gleaned in the monitoring function informs government’s agenda and the agenda determines what is measured and monitored.

President Zuma, Deputy President Motlanthe, Minister Chabane and I have collective responsibility for these three roles. We are politically accountable for these roles. However, all ministers, parliament and each institution in government are also accountable for performance and delivery and have specific responsibilities to ensure that government achieves its objectives.

Minister Chabane and I have agreed to release two green papers simultaneously - one on planning and co-ordination and one on performance monitoring and evaluation. The purpose of these green papers is to provide all stakeholders with a sense of government’s thinking in this regard and provide them with an opportunity to input into the process of deciding how these functions will be performed.

The precise role and function of the Planning Ministry and National Planning Commission as well as the importance of a national strategic plan and vision that has the support and backing of the wider society will be outlined in a Green Paper to be released for discussion by the end of July.

It is intended that this green paper will be presented to parliament as a discussion document in the next month or so. We look forward to an active engagement with you on these issues.

Let me turn now to one or two of the specifics of the planning function. The planning function will co-ordinate the process whereby government develops its long term vision and plan. This long term plan must take into account the key long term challenges facing South Africa and articulate the vision for the type of society that South African’s desire.

The process whereby Cabinet collectively agrees to the Medium Term Strategic Framework is the second major task of the planning function. This document sets out governments priorities, informs resource allocation and provides a framework for the sequencing of programmes and reforms. The Medium Term Strategic Framework (MTSF) then needs to be broken down into detailed outcomes that can then be used to inform the priorities of government. For example, if the MTSF says that raising the literacy rate of Grade three school learners, then this is what The Presidency will measure and this is what will inform interactions between the Minister of Basic Education and The Presidency.

The Planning Ministry has a key role to play in building the organisational and technical capability of the state to ensure government delivers on its policy commitments. We envisage the creation of a nerve centre in The Presidency which would develop links with organisations such as the Development Bank of Southern Africa (DBSA), Human Sciences Research Council (HSRC), Council for Scientific and Industrial Research (CSIR) and other science councils, universities and relevant think tanks to provide expert opinion on long term developmental issues such as water security, climate change, food security, defence capability and migration. The expertise exists in the country and does not have to be replicated in The Presidency. What we do need is the capacity to commission research, to synthesise the evidence and to be able to feed these into the policy processes in government.

There is also a need to encourage a more systematic approach to long term planning in government and in state owned enterprises. This is particularly true in sectors such as spatial planning, energy, transport and water security where long term perspectives are important. This is critical for private sector investment too. Investments in the mining sector require policy certainty and energy security in the energy sector. Land use planning and agricultural investment are intertwined.

What will the planning function not do? There is a notion floating around in some circles that The Presidency will take over existing planning responsibilities from national departments and State Owned Enterprises (SOEs), and even from provincial and local governments. As my preceding points on the role and functions of the planning ministry show, nothing can be further from the truth. Micro-planning and sectoral planning will not be undertaken from the centre. Rather the Planning Ministry will seek to encourage, support and harness sectoral and sub-national strategic plan making and initiatives and mainstream these within the national planning process. That is giving concrete expression to sectoral priorities and priorities emanating from provinces and municipalities.

A further misconception that has been created is that The Presidency will play the role of gatekeeper for plans and that all government institutions would be required to get clearance from The Presidency before a plan is adopted. This would be foolish and undesirable, let alone totally impractical leading to massive delays in implementation. On the contrary the task of The Presidency would be to ensure that the quality of planning by government departments, state owned enterprises and provincial and local governments achieves a high standard, and that the quality of planning in these institutions continues to improve.

Finally, honourable speaker, these are many questions that still have to be answered. This administration has only been in place for six weeks. We request the patience and space to be able to work through this very complex set of issues. In several cases, ministers have to sit down together to work out who does what, what the relationships are and how we account for what is delivered. In doing this, I want to assure this house that we will be guided by a spirit of co-operation and collective accountability. Turf wars are unacceptable. It will take time to resolve some of these issues.

We are working tirelessly to refine the system of government to define our roles and to allocate responsibilities. In some ways, this is an ongoing process, a process of perpetual improvement. In other ways, some of the institutions are new and require time to mature. I assure you that we will involve you and all stakeholders in discussions on these critical issues facing our country. The green paper processes will contribute towards refining the way in which the centre of government works.

Our endeavours, honourable members, are premised on the need to strengthen democracy, to strengthen the trust that citizens have in this democratic government and its institutions. Our efforts are for a better democracy, capable of anticipating and responding to the needs of all of our citizens.

Thank you.

Issued by: The Presidency
24 June 2009

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Southern Africa - Interim Economic Partnership Agreement

On 4 June 2009 the State Representatives of Botswana, Lesotho, Mozambique and Swaziland (BLMS) signed an Interim Economic Partnership Agreement (IEPA) with the Member States of the European Union after years of negotiations. The Agreement provides in article 105 that signature and ratification or approval are required to express the Party’s consent to be bound. The terms signature and ratification bear specific legal meaning.

Signature is one of the first steps in the process of becoming a party to a treaty. The IEPA provides in art 105 that a signatory State will become a party to the agreement through ratification or approval. In addition article 18(a) of the Vienna Convention on the Law of Treaties 1969 determine that the signature of an agreement confers an obligation on the contracting parties to refrain from acts which would defeat the object and purpose of the agreement in the period prior to its entry into force. Once a State signs an agreement it is barred from taking action which may undermine its entry into force.

The ratification or approval of an agreement represents an international act whereby a State establishes on the international plane its consent to be bound by a treaty. In this instance, the parties are required to deposit an instrument of ratification or approval to the Secretary General of the Council of the European Union. This institution will function as depositary of the Agreement and shall be responsible for the proper execution of the provisions of the treaty. The Agreement shall enter into force one month after the depositary receives the last instrument of ratification or approval. This will mark the moment on which the treaty becomes legally binding and enforceable on the State parties. In the case of the BLNS countries this will only happen once the final EPA is in force. These States agreed to continue negotiations to extend the scope of the agreement beyond trade in goods. Article 67 of the IEPA provides that the second stage of negotiations will include trade in services, investment, competition and government procurement.

Notwithstanding ongoing negotiations article 105 of the IEPA determines that pending its entry into force the States shall provisionally apply the provisions of the Agreement. The provisional application of an agreement entails giving effect to its provisions notwithstanding the fact that constitutional or internal rules and procedures on ratification or approval have not been concluded.

Additionally provisional application will be effected 10 days after the last notification of provisional application is made to the depositary. However nothing prevents a State from unilaterally applying the Agreement before provisional application.

The case of Namibia is more complicated. Namibia decided not to sign the IEPA due to the inability of the negotiating partners to address the concerns it had raised upon initialing the IEPA text. If Namibia should decide not to join the second stage of negotiations it would have to start the process of ratification.

In addition, article 19(1) of the IEPA determines that the agreement establishes a free trade agreement between the Parties in conformity with article XXIV of the General Agreement on Tariffs and Trade. Thus the agreement must respect and abide by the principles of the World Trade Organisation (WTO). In this regard, paragraph 1(a) of the Transparency Mechanism for Regional Trade Agreements provides:

(a) Members parties to a newly signed RTA shall convey to the WTO, in so far as and when it is publicly available, information on the RTA, including its official name, scope and date of signature, any foreseen timetable for its entry into force or provisional application, relevant contact points and/or website addresses, and any other relevant unrestricted information.
Therefore the IEPA must be notified to and considered by the WTO Committee on Regional Trade Agreements. The Transparency Mechanism explicitly requires notification before the provisional application of an agreement. This provision is particularly important considering the agreement between the parties to apply the provisions of the IEPA pending its entry into force. The Transparency Mechanism also makes provision for the notification of subsequent changes to a notified agreement.

Moreover, each individual party will ultimately (after the conclusion of the full EPA) have to seek domestic approval of the agreement in accordance with its own constitutional provisions. The procedure for transplanting treaty commitments into the domestic legal regime might vary considerably among the Parties depending on their constitutional orders. It may involve the enactment of national legislation to enable the domestic implementation of the agreement. Once the agreement has entered into force the real challenge to State Parties will be to ensure that treaty obligations are continuously and effectively met.

JB Cronjé, a Tralac Researcher, comments on the signing of the Interim Economic Partnership Agreement.

http://www.tralac.org/cgi-bin/giga.cgi?cmd=cause_dir_news_item&news_id=68787&cause_id=1694

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