My Beauty Best Teacher

Sanou Mbaye writing in Project Syndicate:

He speaks on the need to liberalize the remittance channels:

The effects of banks’ hijacking of national payment systems to service only the modern economy are compounded by the exclusive agreements that banks and money-transfer companies such as Western Union have signed with most African countries. These agreements lock out non-banking entities from the highly lucrative market for migrant remittances from the African diaspora, which remain a key engine of growth

African states must now recognize that modernizing their informal sectors by integrating them into the modern economy can be a major development tool. Yet only a few countries have started moving in that direction. Nigeria has refrained from signing any exclusive agreements with Western Union and others, and its newly consolidated banking industry is making significant inroads across the region...

Giving micro-finance institutions access to national and regional payments systems and electronic retail facilities will go a long way toward meeting the requirements of the retail and business sector in terms of banking facilities. It will also help facilitate access by the poorest to financial services, thus helping to reduce the high proportion of the un-banked population.

All of this will invariably spur development and integration of national financial systems and intra-regional trade. This will be a welcome development, because a large proportion of intra-regional trade is carried out by informal operators and small and medium enterprises that do not have access to the banking system. Moreover, economic integration and increased intra-regional trade are the best entry point into global markets for all countries.

Obiageli Ezekwesili writes:

Today, there is strong consensus among African leaders that regional integration is indispensable to unlock economies of scale and sharpen competitiveness. And promoting intra-African trade has emerged as a top priority, in recognition that the African market of one billion consumers can be a powerful engine for growth and employment.
Yet despite the introduction of free trade areas, customs unions, and common markets within the Region, the level of intra-African trade remains among the lowest in the world -- only about 10% of African trade is within the continent, compared to about 40% in North America and about 60% in Western Europe.

At last count Nigeria was listed as having 36 states within its Federal Structure. Unsurprisingly the great bulk of them(33 we now hear) are fiscally unable to sustain themselves.So there we have it, "resource curse" Nigeria incubates unsustainable states (every now and then) that bring new meaning to the phrase Intra-Country clientelism. 'State Governors' have no other role but to sink their snouts in a trough and thieve the handouts, while they apply no effort whatsoever to generating state revenues or creating wealth. If there is a better example of multi-layered governmental,knavery ,welfarism and indolence we are keen to know where?
What is the point of having administrative structures that have no financial viability? The 'Leaders ' of these synthetic constructs are actually administering imaginary territories...The emperors truly have no clothes!
I would bet that the 3 sustainable states include Lagos and Kano. What do you think?

Bienvenu-Magloire Quenum of Africa Biz Online writes that the "...The industrialization process will create a larger consumers' base in each African country with higher purchasing power. Therefore, the dependence towards overseas markets would be less important in a first stage. Otherwise, selling raw agricultural products - cotton, coffee, cacao beans to name the few, will lead SSA countries to a dead end of continued poverty. Negotiation rounds at the World Trade Organization will not give any reprieve to African farmers. The solution is to process the agriculture products to satisfy national market first and second African regional markets. Overseas markets coming as a last conquest...".Intra-regional trade largly informal and unsupported is centerpiece to rebuilding a viable trading ecosystem.

Thoughts to ponder for those in Africa who believe in mimicry rather than adaptation and self-generation, Kishore Mahbubani wrote in the FT:

...the strengths of Asian capitalism are greater than the weaknesses. Within a decade Asians will have some of the largest free trade areas, including those between China and the Association of South East Asian Nations, the Japan-Asean FTA, and the Indian-Asean FTA that is likely to be set up. Recent history has taught Asians a valuable lesson: more trade leads to greater prosperity. In the Asian way – two steps forward, one step back – trade barriers will gradually come down. By the middle of the 21st century, intra-Asian trade will far surpass that of any other region.
Despite this, there will be no ideological trumpeting of the virtues of Asian capitalism. After their experiences of the past 100 years, Asians are wary of ideology. They prefer the simple, commonsense approach of learning from experience and they will heed the advice of Adam Smith, who said that prudence is “of all virtues that which is most useful to the individual”. It may also be helpful to nations.

This open letter below was sent to me by Washington Teachers' Union Executive Board members, Willie Brewer, Agnes Dyson and Sheila Gill who were wrongfully terminated in what many believe was a manufactured reduction in force created by the Rhee administration. Their email is addressed to American Federation of Teachers (AFT) President, Randi Weingarten requesting that our national union order that all 265 wrongfully terminated union members be reinstated their full membership rights pursuant to AFT's Constitution. - Candi Peterson, blogger in residence

May 13, 2010

Dear President Randi Weingarten,

As you well know, we are elected WTU Executive Board members who were laid off October 2, 2009. We have been denied our right to complete our elected term of office and right to continue our membership by WTU President George Parker. As a result, 265 other WTU members have been damaged by the loss of health insurance and other membership benefits directly attributable to these actions. Upon attempting to maintain those benefits, we were provided misinformation including a WTU parliamentary opinion thereby robbing us of our rights as a WTU, AFT, and AFL-CIO members. At no time were we advised of AFT’s constitution addressing the laid off member policy by the aforementioned or AFT personnel. AFT Constitution & Bylaws, art. III - Membership, §6, cl. C.

After our own research yielded the above, President Parker undertook obstreperous actions to disallow WTU Executive Board members consideration of our concerns. Constitutionally mandated Union meetings-executive board, delegate assembly and membership meetings- are often cancelled or they do not have voting quorums and are held in place which we are barred (DCPS and the WTU offices). This complaint/notice informs you that WTU is not being managed according to its constitution or AFT’s and AFT’s representative agents, Mr. George Bordenave and Mr. Jody Easley, sit idle while these significant violations transpire.

Since a fair hearing of our concerns are not available at our local union level, we must exhaust all intra union remedies. We are requesting you to inform us in writing, with the necessary citations, of our rights to complete our elected term of office as WTU officers. Furthermore, we are requesting you to order all 265 wrongfully terminated teachers full membership rights reinstated immediately pursuant to AFT’s constitution at a dues rate of $6.00 per month remitted to the AFT. We look forward to your prompt response as time is of essence.

Sincerely,

Willie Brewer
WTU Executive Board Member

Agnes Dyson
WTU Executive Board Member

Sheila H. Gill
WTU Executive Board Member

Posted by The Washington Teacher, featuring Candi Peterson, blogger in residence

Lazarus Amayo makes a case for increased intra-continental trade:

He said there is need to expand trade links within the African region through product diversification and establishment of joint ventures...African nations need to improve its trade with other nations through cooperation agreements“There is need for African continent that trades with itself and rely on overseas countries to buy our products when our neighboring countries can do the same,”

Business as usual, French corruption in Africa.
The passing of a whistleblower-David Munyakei via Displaced African
Another call for Intra-African trade.
Emerging markets have more to say-Mbanking
Questioning Abdoulaye Wade...
The paradox of plenty against a backdrop of plunder.
Nigeria and Ethiopia top investment index via African Loft
Zimbabwe farmers make progress in Nigeria.
More on the Africa Asia comparison theme from Coldtusker
The Gulf continues to invest in the continent.
How Mugabe steals.. via Global Voices
Bongo's french accounts frozen...Switzerland next?
Githongo on corruption-Economist