Interview with Congressman Bobby Rush, Co-Chair of the Africa Partnership for Economic Growth Caucus (APEGc)

Posted by Motaroki on Thursday, July 23, 2009 at 5:11pm.

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AfricaBusinessSource.com:  There is an important debate going on right now, heightened by a new book written by Zambian economist, Dambisa Moyo. The book, called “Dead Aid”, levels an indictment on the “development industry” for creating a destructive dependency on foreign Aid in Africa. In a nutshell, she asserts that government aid props up corrupt governments and, in the worst cases, has assisted corrupt regimes that have contributed to the destruction of their countries. She goes even further by proposing a phase out of all government-to-government aid in five years. Not surprising, the development industry doesn’t like her critique including well renowned economists who’ve traditionally called for more aid, like Jeffrey Sachs. Is Dambisa Moyo right about cutting aid to Africa?

Congressman Rush:  U.S. ties with Sub-Saharan Africa today far transcend the humanitarian interests that have frequently underpinned U.S. engagement with the continent. Despite the billions of dollars given by donors, foreign assistance is not providing an appropriate response to the needs of the region. Ms. Moyo, like many scholars, is questioning the effectiveness of this aid and there is a serious call for more trade and investment in the continent.  There is not a single economy that can combat poverty without sustained growth. As Oxford University Professor Paul Collier said, “growth is not a cure-all, but lack of growth is a kill-all.” Given that, I find Ms. Moyo to be very courageous.  I commend her for her book and leadership on this issue.

The topic of “aid vs. trade” is an important one and I am sure many are perplexed about the role each of these concepts plays. It is undeniable that aid is important. You cannot look at an orphan whose parents died from HIV/AIDS and say aid is not important.  I am sure Ms. Moyo understands this.  It is also undeniable that aid does not create an economy.  Ms. Moyo’s critics understand this as well. It is time for Africa to activate its creativity and remove herself from the dependence on aid.  The U.S is doing everything it can to be less dependent on foreign oil.  Africa should also be doing everything it can to be less dependent on foreign assistance. In that sense, the debate created by Ms. Moyo’s book is timely. However, it is too ambitious to say we should cut off aid in five years? Absolutely! Africa holds the key to its own development. I hope that the dialogue on this topic will give birth not to another political game, but will give rise to a U.S. - Africa policy renaissance that will focus on what is best for both the African and American people.

AfricaBusinessSource.com: There are 4 countries in East Asia that were coined ‘Asian Tigers’ due to their rapid growth and expansion in a relatively short amount of time. The Four Asian Tigers which include South Korea, Singapore, Hong Kong, and Taiwan, have a highly educated and skilled workforce and have specialized in areas where they had a competitive advantage. For example, Hong Kong and Singapore became world leading international financial centers, while South Korea and Taiwan became world leaders in information technology and manufacturing. Their economic success stories became known as the Miracle on the Han River and Taiwan Miracle and have been considered role models for many developing countries. Do you think there are some ‘African Lions’ that exist or will likely emerge in the next few years or decades? If so, which countries do you think are most likely to emerge as economic powerhouses? And what circumstances do you think will contribute to that success, if any?

Congressman Rush:  Each region has it strength and its weakness. I am confident that Africa will create its own phenomenon and is on the verge of doing so.  Some countries are still going through challenges while others have made tremendous progress. It is apparent that Africa plays a significant role in meeting the world’s energy needs, supplying new technologies, and providing vital mineral resources. Africa is also at the forefront of countering the transnational threats of terrorism, piracy, global health issues, and trafficking in illegal narcotics and persons. Africa’s natural and human resources, if carefully managed, will contribute to global prosperity and expand economic growth in Africa. For example, the Gulf of Guinea region accounts for over 19.5% of U.S. oil imports in 2008; a share greater than what the U.S. gets from Persian Gulf countries!  The amount of U.S. oil imports from Africa is expected to grow to 25% over the next decade. The Gulf of Guinea region is expected to generate a GDP of $350-billion dollars by the year 2019.  That is more than the current GDP of Russia and close to the current GDP of all Sub-Saharan African countries. On one hand, countries that heavily rely on oil exports are extremely vulnerable to events that disrupt the oil market. On the other hand, rises in prices restrict economic growth in net importing to countries like the U.S. Lasting global prosperity requires a stable energy market. As president Obama said, “In the 21st century, we know that the future of our economy and national security is inextricably linked to one challenge: energy.”  Africa is an asset in this global economy, not a liability.  Members of the caucus fully recognize how exceptionally rich Africa is in human and natural resources. It is time to change the paternalistic approach in dealing with Africa and partner with the continent.

AfricaBusinessSource.com:  If you’d permit me, I’d like to ask about your relationship with your most famous constituent and current U.S. President, Barack Obama. Prior to running for the US Senate, he ran against you for Congress and lost. Considering he’s a former political opponent, are you comfortable working with the Obama administration on issues relevant to the Committees you sit on and chair and more specifically on U.S. Africa trade issues? Do you feel the Administration has the same right level of commitment to improving trade relations with Africa?

Congressman Rush: I sent a letter to the president regarding the formation of APEGc and our agenda.  We are ready to work with his administration to increase trade with Africa.  President Obama is committed to the well being of the African people.  His visit to Ghana is an acknowledgement of the progress being made in young African democracies.  Other U.S. presidents have traveled to sub-Saharan Africa while in office, but none have prioritized a trip to the continent so early in their term.  I am sure he will define a new relationship with the continent and take another step in establishing a new policy based upon mutual respect and collaboration between the nations of Africa and the U.S. This is APEGc’s mission.  We will work in phase with the Obama administration. We will not say “we can” but “we must.”

AfricaBusinessSource.com: Finally, Congressman Rush, How do U.S. and African businesses benefit from the creation of the the Africa Partnership for Economic Growth Caucus (APEGc) and where can they go to get more information?

Congressman Rush:  On both sides of the Atlantic, companies are unaware of the business opportunities available to them.  Members of the caucus will advocate for businesses operating in Africa.  Our office doors are open to them.  They can contact our office for information, request materials, and bring our attention to issues that affect them. We are all committed to African empowerment and economic growth.  With President Obama’s leadership, we have an historical opportunity to make a difference in the lives of African people. With God’s favor, we will participate in this transformational moment and create a zone a security and prosperity in Africa.

Finally, thank you for taking the time to answer our questions. We look forward to your leadership on U.S. Africa trade issues in the U.S. Congress and wish you every success.

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