THE IMPORTANCE OF AfCFTA FOR GHANA AND AFRICA

WORLD DEVELOPMENT REPORT 2020

THE WORLD BANK HAS JUST PUBLISHED THE WORLD DEVELOPMENT REPORT 2020.(YOU CAN DOWNLOAD THE REPORT AT THE BEGINNINF OF THIS ARTICLE.) IN THIS REPORT, THE WORLD BANK DISCUSSES THE USE OF GLOBAL VALUE CHAINS (GVC), ESPECIALLY FOR DEVELOPING ECONOMIES. GLOBAL VALUE CHAINS DEMAND MORE INTERNATIONAL COOPERATION. ON THE AFRICAN CONTINENT, THIS REGIONAL INTERNATIONAL COOPERATION WAS RECENTLY INITIATED THROUGH THE AFRICAN CONTINENTAL FREE TRADE AREA (AfCFTA). WHAT IS THE IMPORTANCE OF AfCFTA FOR GHANA AND AFRICA?

GLOBAL VALUE CHAINS MEAN THAT THE PRODUCTION OF GOODS ARE SPLIT BETWEEN VARIOUS COUNTRIES.

IN ITS REPORT, THE WORLD BANK STATES THAT  GVC BOOST INCOMES, CREATE BETTER JOBS AND REDUCE POVERTY. NEVERTHELESS, THERE ARE SEVERAL PROBLEMS ASSOCIATED WITH GVC. OME IS THAT – GVC ARE VERY MUCH DEPENDENT ON AUTOMATION AND THE WORLD WIDE WEB. FOR MANY WHO ARE EMPLOYED IN LOW INCOME JOBS, THEIR SKILLS ARE SIMPLY NOT SUFFICIENT FOR THAT.

BUT DEALING WITH GVC IN GENERAL WILL BLOW UP THE FRAME OF THIS ARTICLE. I WILL DISCUSS THIS SUBJECT IN A FURTHER, MORE EXTENDED ARTICLE. I WILL PUBLISH THAT ARTICLE THEN IN http://www.publisher.ghanaresearch.org AND ANNOUNCE IT HERE.

SO, ON THE AFRICAN CONTINENT, AFTER ESTABLISHING REGIONAL FREE TRADE ZONES, A FIRST STEP IS MADE FOR A CONTINENTAL FREE TRADE AREA (AfCFTA). THE REGIONAL FREE TRADE ZONES DON’T SEEM TO BE AS SUCCESSFUL AS PROBABLY HOPED. BUT PERHAPS PEOPLE AND THEIR GOVERNMENTS CAN LEARN FROM THEIR MISTAKES, AND MAKE THE AfCFTA SUCCESSFUL.

THE SUCCESS IS ALL IMPORTANT FOR THE DEVELOPMENT OF THE AFRICAN CONTINENT. ONLY THROUGH AN INCREASED COOPERATION WILL AFRICA ADVANCE. THIS ACCOUNTS FOR THE INTERNAL DEVELOPMENT OF SINGLE AFRICAN STATES. BUT IT IS ALSO IMPORTANT FOR THE CONTINENTAL POSITION IN INTERNATIONAL TRADE. ONLY THROUGH INCREASED INTERNAL COOPERATION AFRICA CAN BOOST ITS SUCCESS IN NEGOTIATIONS. THIS INC[UDES NEGOTIATIONS WITH OTHER ECONOMICAL ENTITIES AND STATES. IT IS ESPECIALLY IMPORTANT FOR NEGOTIATIONS WITH SO-CALLED “DEVELOPED COUNTRIES”.

BUT A SUCCESS OF A CONTINENTAL FREE TRADE ZONE NOT ONLY DEPENDS ON A BETTER COOPERATION BETWEEN THE GOVERNMENTS. AFRICANS MUST ADJUST THEIR MINDSET – WHEREVER THEY ARE. RIOTS AGAINST “ALIENS” AS THEY HAPPENED IN RECENT TIMES MUST BE A THING OF THE PAST. PEOPLE – AND THEIR GOVERNMENTS – MUST LEARN THAT ONLY THROUGH COOPERATION THEY WILL HAVE A FUTURE. THEY MUST GET STRENGTH -ECONOMICALLY AND PSYCHOLOGICALLY.

ESPECIALLY IN ECONOMIC WAYS INTENSE COOPERATIOM BETWEEN AFRICAN COUNTRIES IS OF UTMOST IMPORTANCE. COUNTRIES LIKE THE U.S.A. MORE AND MORE WALK ON THE PROTECTIONIST PATH. THEY WILL DO EVERYTHING ONLY TO PROTECT THEIR OWN ECONOMY. IF YOU DON’T TAKE CARE, THE WHOLE ISSUE WILL THEN LEAD TO AN ECONOMIC FORM OF COLONIALISM.

THE ONLY CHANCE TO FACE SUCH CALAMITIES IS IMPROVED COOPERATION  TO  USE COMBINED ECONOMIC POWER. ECONOMUC INTERESTS OF AFRICAN COUNTRIES ARE PEINCIPALLY THE SAME. RECOGNISING THAT, ALL AFRICAN COUNTRIES INVOLVED IN THE COURSE OF DEVELOPING AfCFTA MUST FIND AGREEMENTS THAT BENEFIT ALL COUNTRIES.

FOR GHANA, THE SITUATION IS OF EVEN MORE IMPORTANCE. GHANA IS CHOSEN TO HOST THE AfCFTA SECRETARIAT. IN THIS LIES THE CHANCE FOR GHANA TO SHOW THAT THE COUNTRY IS ABLE TO ORGANISE AFFAIRS OF THE CONTINENT. THEREFORE, GHANA MUST PUT SPECIAL EFFORTS INTO THE DEVELOPMENT OF THAT POSITION. FURTHERMORE, GHANA MUST SHOW LEADERSHIP. GHANA MUST LEAD THE WAY TO A SUCCESSFUL COMPLETION OF THE CONTINENTAL FREE TRADE ZONE. THIS WAY, GHANA CAN BENEFIT DOUBLE FROM AfCFTA.

FIRST, FROM THE ADVANTAGES OF A CONTINENTAL FREE TRADE ZONE GENERALLY. GHANA IS THEN PART OF A COMBINED ECONOMIC POWER OF THE AFRICAN CONTINENT.

SECONDLY, FROM GAINING REPUTATION THROUGH A SUCCESSFUL ESTABLISHMENT OF THE AfCFTA SECRETARIAT. THAT WILL GIVE GHANA THE CHANCE TO SHOW ITS LEADERSHIP ON THE AFRICAN CONTINENT. GHANA MUST THEREFORE SHOW ORGANISATIONAL TALENT AND ENTHUSIASM.

THIS SHOWS THE IMPORTANCE OF AfCFTA FOR GHANA AND AFRICA

THEREFORE: GHANA WORK HARD; AFRICA, WORK HARD.

FOR A SUCCESSFUL AFRICA CONTINENTAL FREE TRADE AREA!

 

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