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Joint Statement from African NGOs and Trade Unions Prior to the 2004 Summit, Sea Islands, USA 8-12th June 2004
African Forum and Network on Debt and Development (AFRODAD)
June 04, 2004

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We representatives of some of the largest continental organisations and national networks headquartered in several African cities, bringing together women’s organisations, labour, researchers, development and advocacy NGOs across Africa note that a pre-occupation with domestic issues and international security priorities have displaced the capacity of the G8 to meet it’s obligations to Africa in 2004.

Two years after the Africa Action Plan was announced, G8 commitments to Africa appear buried beneath an avalanche of inaction on core areas such as HIV/AIDS, poverty eradication and debt. Africa’s cheque remains unsigned and un-cashable in spite of obvious need and progress by the African Union and member-states to meet their obligations to Africa’s poor and marginalized.

We nevertheless call upon the G8 to do the right thing in 2004, by announcing a comprehensive debt cancellation strategy for heavily indebted countries; greater market access for African commodities; an end to World Bank/IMF conditionality and delivery on the Africa Action Plan. Should these actions be taken at the upcoming G8 Summit on the Sea Islands, it would dramatically change current trends and create conditions for the determined pursuit of the MDG’s in Africa.

Debt Cancellation
Noting the emerging consensus within the G8 on the need for debt cancellation for Iraq and that current debt relief mechanisms are unable to address debt sustainability among several African Countries, we call on the G8 to announce debt cancellation for heavily indebted countries in Africa. If there is one obstacle that stands in the way of Africa meeting the millennium developments goals and assuring basic human rights for its citizens, it is the odious debt that strangles public expenditure and domestic economic growth. In many African countries, significant resources are being diverted away from basic social services into debt repayment obligations.

Broadening access to HIPC for African countries such as Somalia, Sudan and Liberia for instance and deepening the relief, is a step in the right direction but a miniscule step. HIPC countries’ sustainability criteria needs to be broadened beyond its narrow link to exports and relate more to poverty and government expenditure on basic social services. The cost of servicing debt continues to be a major source of state failure in Africa. Prioritising only collapsed states and states that have clearly become important to the war on terror for the G8 is short sighted and could open the door to future crises.

The G8 must ensure that all future calculations of debt sustainability for poor countries are linked to the Millenium Development Goals. In addition, the G8 must commit an additional $2.3 billion to ensure that all HIPC countries are brought down to the agreed 150 per cent debt to exports threshold.

Trade Justice
The G8 must address the systemic imbalances in current trade agreements which continue to prop up a multilateral trading system that undermines economic growth and poverty alleviation. Current reform of these agreements would help even the playing field and advance Africa’s economic interests. At the World Trade Organisation (WTO), emphasis must necessarily shift away from expanding the trade agenda in favour of addressing existing asymmetries.

The G8 must therefore commit to dropping demands on expanding the WTO agenda to include new multilateral rules on the Singapore Issues. The recent proposals within the European Union to reduce domestic subsidies and open up market access for products of export interest to developing countries can create a firm basis for progress on the Doha Development Agenda. All G8 members must rally support for this proposal and submit tangible and time-bound commitments on reduction of domestic and export subsidies including all forms of export credits that have a subsidy component. The G8 needs to take greater leadership in injecting political momentum towards realizing the objectives of the Doha Development agenda.

The G8 must make trade count for Africa by addressing World Bank/IMF trade liberalisation conditionality, the dramatic fall in the value of Africa’s primary agricultural exports, current G8 tariffs on Africa’s exports including non-tariff barriers that continue to discourage processing and value-adding of African commodity exports.

HIV/AIDS, Malaria and Tuberculosis
AIDS continues to undermine Africa’s development, adversely impacts on the provision of health services and constraints food security and agricultural productivity particularly in Sub-Saharan Africa which has been most affected by the epidemic. Access to affordable life-saving medicines and policy flexibility on intellectual property rights is a pre-requisite in the fight against AIDS. This G8 must go beyond empty promissory notes and support the Global Fund on fighting HIV/AIDS, malaria and tuberculosis by increasing funding to enable WHO meet its target of placing 3 million people, predominantly from sub-Saharan Africa, on ARV treatment annually over a five year period. The G8 must also not unnecessary fetter African countries keen on using available flexibilities on parallel importing and compulsory licensing to avail affordable life saving medicines.

Continental Integration
Despite the failure so far of the G8 to live up to its promises regarding support to important African initiatives, African States have embarked on an ambitious programme of continental institutional renewal with the formation of the Peace and Security Council, pan African Parliament, African Court of Justice and the African Peer Review Mechanism (2001-2004). Progress continues to be made on all these fronts. Nevertheless, a lot more remains to be done by our leaders to enable poor and vulnerable citizens inform their governments’ priorities and trade offs of national and international policy making. As the G8 meets African leaders, we call on the latter to commit to deepening democratic practise and public accountability across our continent by supporting on-going initiatives and strengthening institutions that enhance democratic culture and principles.

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