Global economic crisis discussed ahead of AU summit

The 17th Ordinary Session of the PRC kicked off at the African Union headquarters in Addis Ababa, Ethiopia.

The PRC has the responsibility of preparing the work of the Executive Council and acts on the Executive Council's instructions. It is allowed to set up such sub-committees or working groups as and when is necessary.

Chairman of the PRC and Tanzania's Ambassador to Ethiopia, Mohammed Maundi, who opened the meeting by speaking about the challenges that lie ahead for the AU, said poverty and underdevelopment, had continued to pose a serious challenge for the African continent, particularly in light of the recent global financial crisis.

He said though the economic crisis began in the world's richest country, its spill over effects have been most tangible in the developing world, including cuts in foreign-aid and investment. The credit crunch has also had major effects on remittances.

The fuel crisis last year caused prices for oil and petroleum to rocket. The food crisis, triggered by a combination of climatic shocks (mainly droughts) and local food inflation, has driven millions of people into poverty and famine, especially in the African continent.

"Due to the global economic recession that is ensuing, we are expecting declines in commodity prices, remittances, investments and the inflow of international tourists. Luckily though, there are encouraging developments in relation to the food and fuel prices which undermined our economies in the last year."

The chairperson further said that despite the major progress that had been made in peace and security on the continent, "civil unrest caused by natural and man-made factors continued to pull back our efforts to prosperity in the continent".

Since their last meeting, the continent has seen conflicts in some parts of the continent like Darfur, Somalia, Eastern Democratic Republic of Congo, Zimbabwe, Eritrea and Djibouti, and other potential election-related conflict in Mauritania, Angola and Cote D'Ivoire.

According to UNICEF, if current trends continue, the Millennium Development Goals target of halving the proportion of underweight children will be missed by 30 million children, largely because of slow progress.

African nations typically fall toward the bottom of any list measuring small size economic activity, such as income Gross Domestic Product (GDP), despite a wealth of natural resources.

The bottom 25 spots of the United Nations (UN) quality of life index are regularly filled by African nations. In 2006, 34 of the 50 nations on the UN list of least developed countries are in Africa.

It indicated that in many African nations, the GDP per capita income is less than $200 US per year, with the vast majority of the population living on much less. In addition, Africa's share of income has been consistently dropping over the past century by any measure.

However, Maundi said the PRC was determined to navigate the difficult challenges confronting the continent and urged the committee not to despair and lose hope.

"I firmly believe that our unity of purpose will sail us though the distress and difficulties ahead. We have shared responsibilities to ensure that the union achieves its noble objectives," he said, adding that the meeting will positively contribute to the success of the AU.

The PRC will deliberate and make recommendations on these and other matters, and forward them to the Executive Council of Foreign Ministers who will meet on 29 to 30 January for their 14th Ordinary Session.

The Executive Council will in turn, make their own assessments and forward them to the AU Heads of State, who are to meet from 1 to 3 February.

Meanwhile, African Union Commission chairperson Jean Ping has urged African nations to devote more effort to integration.

The issue has been on the agenda for the past few years between AU member states.

Ping told the PRC meeting that much discussion was still needed to realise African integration, and asked the ambassadors to work hard to realise this and other continental projects.

Article published courtesy of BuaNews