Category: Africa

What The BRICS Development Bank Means For Africa

The statutes of a new development bank proposed by leaders of BRICS could be ready as soon as next year, as leaders of emerging economies plan to create a funding institution that can rival Western institutions such as the World Bank and the IMF, whom they accuse of bias and reflecting the interest of rich nations.

The unexpected announcement by BRICS leaders at its Durban conference in earlier in March to establish a parallel development institution to challenge the dominance of the IMF and World Bank must have ruffled a few feathers across the Western World.

Can Foreign Policy Cure Africa’s Dependency Syndrome?

Shrugging off memories of its colonial past, Africa today stands at a precarious crossroad. On one hand, it is being aggressively pursued by international heavyweights such as the United States, China and Japan – all of which promise billions in aid and investment. But on the other hand, will Africa be able fend off the exploitative hawks circling around her?

Is Africa Sowing Seeds Of Its Own Subprime Crisis?: Joseph Stiglitz & Hamid Rashid

There are no easy, risk-free paths to development and prosperity but borrowing money from international financial markets is a strategy with huge downside risks. It is no secret that sovereign bonds carry significantly higher borrowing costs than concessional debt does, so why are an increasing number of developing countries, particularly Sub-Saharan economies, resorting to sovereign-bond issues? And why have lenders suddenly found these countries desirable?

Resource Rivalries: Japan and China Race To Invest in Africa

The competition between China and Japan, the two economic heavyweights of East Asia, has now intensified at a time when both countries are hungrier than ever for resources and energy to cope with its development challenges. Earlier this month, Japan pledged some $32 billion in aid for Africa, a move designed in part to counter China’s rising influence on the resource-rich continent. But will Japan succeed, given China’s historical and political ties to the continent?

What Africa Can Learn from East Asia’s Developmental Success: Joseph E. Stiglitz

The world has changed markedly since East Asia began its remarkable developmental transition more than a half-century ago: Their development policies worked while all too often, those that followed the neo-liberal “Washington Consensus” policy prescriptions failed miserably. In the decade to come, African countries will benefit from reflecting on these successes and failures, and on what they mean for their own development strategies.