Sleight of hand

Reuters reports that the European Commission (EC) will give Tanzania US$800m between 2008 and 2013, to help it boost trade. Around 90% of the program is dedicated to macroeconomic aid, support to the transport sector and a trade and agriculture focal area aimed at pro-poor growth.

At the same time, Tanzania is among African, Caribbean and Pacific (ACP) nations in talks with the EU ahead of signing an Economic Partnership Agreement trade deal before a December 31 deadline.

The EU wants to sign these new Partnership Agreements with ACP countries to replace preferential deals that the World Trade Organisation has deemed illegal.

Opponents of the new Economic Partnership Agreements argue they will weaken developing economies, expose them to cheap European imports and cut government revenues earned from tariffs.

Is this just a sleight of hand? Giving with one hand while taking with the other?

I wonder whether what bargaining power the ACP countries might have?

European trade barriers are falling!

Switzerland is leading the way in removing tariffs and quotas on trade with Tanzania. At the same time, they are helping to build trade capacity within the country by funding local trade development programs.



These initiatives will help overcome two trade barriers –

• the restrictions of tariffs and quotas
• the barriers formed by food quality standards

This is part of the new wave of assistance and economic restructuring that will lift some African countries out of grinding poverty. This is the future that the kids at St Jude’s will inherit.

The Swiss government has removed all tariffs and quotas standing in the way of Tanzanian exports destined for Switzerland. The new regulations came into force in April 2007, and are expected to benefit a wide range of Tanzanian businesses trading in products such as flowers, cashew nuts and fish.

The capacity building programs include support to the cashew and coffee sectors at farmer level and assistance in boosting the processing sector for the crops, the aim being to increase the value of the exported products. Technical assistance is also being provided to the Tanzania Bureau of Standards to enhance its capacity for testing systems in line with internationally accepted standards, as it certifies potential export products.

A statement from the Swiss embassy in Tanzania noted:

The introduction of this zero duty initiative does not affect the requirement for Tanzanian exporters to satisfy Swiss product quality standards.

These measures show that Western countries now have a better understanding of the complexities of aid and economic development. Tariffs and quotas are not the only barriers to trade, so development aid is being given to build producer capacity and improve local governance so Tanzanian produce meets the requirements of European markets.

I hope to see a lot more initiatives like this over the coming months and years. We're seeing the will and the knowledge to make a difference at the individual level and at the systemic level.




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Bah Humbug! Building progress

Recently, I read an article in the LA Times that argued that Africa is doing just fine thank you very much. All is not doom and gloom because many African countries have good economic growth. The columnist argued that trade, not aid, is what Africa needs. I got impatient at the over-simplification of this discussion. It seems to me that both sides of the Aid vs Trade argument get over-simplified and people end up slanging off at each other.

So, for peace of mind, I turned my thoughts to the School of St Jude. Here is a project that depends on private aid and that makes a material difference to the lives of hundreds of families right now, while providing jobs and educating the future leaders of Tanzania.

How can this country grow without educated professionals? How can people who live in extreme poverty educate their children without the help of others? While Africa has entrepreneurs who are establishing mobile phone networks and selling minerals to China, it doesn’t have any entrepreneurs who are offering affordable (i.e. no cost) education to the poorest of the poor.

Bah Humbug! Leave them to their debates and take a look at this.

Foundations for three girl's houses

These pictures show progress on the building works for the weekday boarding facilities for over 300 boys and girls at the Moshono campus of the School of St Jude.

A foundation to last for generations

Generations of children will use this accommodation. This school will serve the local area through the coming generations of increasing prosperity. Perhaps at some time in the future, families will be able to afford school fees and will not depend on the consciences of people who live far away.

Columns to support the second floor

These buildings are solidly made, using local materials and local labour. This provides employment for people who can take pride in building their own future, while putting food on the table today.

Good, solid foundations and columns

The weekday boarding accommodation will be open by the end of 2007, ready to house children in 2008. What a change that will be for all the children, and the school. Instead of a two-hour trip to school, they will have a five-minute walk. Instead of trying to do secondary school homework in a two-room house with no electricity, they will have comfortable and safe study rooms and dormitories. At weekends they will spend time with their families.

It seems to me that the poverty in Africa is due to large influences, like geography, and systems of government that have not always been very effective, and trade rules that disadvantage some countries. Individuals suffer the effects of these large influences. Now the system is beginning to change and poor people in Tanzania have the hint of a chance of a better life for their children.

With our help, these children can step into a new future where they can contribute to the ongoing growth and development of this very poor country. So, don't get muddled by Trade vs Aid arguments – your support for the School of St Jude has no downside, only benefits at all levels.



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