Visit the new WCO website. My impression is a very cool, uncluttered and refreshing design tailored for easy of use and the burgeoning social media space. Navigation is now a synch with the entire website content accessible via menu bar. Visit http://www.wcoomd.org/en.aspx now!
Following my recent post – Want to Help? Shut up and listen! – I thought it appropriate to share a link to the referenced book “Dead Aid” by Zambian born economist Dambisa Moyo.
In Dead Aid, Dambisa Moyo describes the state of postwar development policy in Africa today and unflinchingly confronts one of the greatest myths of our time: that billions of dollars in aid sent from wealthy countries to developing African nations has helped to reduce poverty and increase growth. In the past fifty years, more than $1 trillion in development-related aid has been transferred from rich countries to Africa. Has this assistance improved the lives of Africans? No. In fact, across the continent, the recipients of this aid are not better off as a result of it, but worse—much worse.
In fact, poverty levels continue to escalate and growth rates have steadily declined—and millions continue to suffer. Provocatively drawing a sharp contrast between African countries that have rejected the aid route and prospered and others that have become aid-dependent and seen poverty increase, Moyo illuminates the way in which overreliance on aid has trapped developing nations in a vicious circle of aid dependency, corruption, market distortion, and further poverty, leaving them with nothing but the “need” for more aid.
Debunking the current model of international aid, Moyo offers a bold new road map for financing development of the world’s poorest countries that guarantees economic growth and a significant decline in poverty—without reliance on foreign aid or aid-related assistance. Dead Aid is an unsettling yet optimistic work, a powerful challenge to the assumptions and arguments that support a profoundly misguided development policy in Africa. And it is a clarion call to a new, more hopeful vision of how to address the desperate poverty that plagues millions. Source: www.dambisamoyo.com
The subject of “Aid” is perhaps the hottest topic on the African continent, but for a variety of reasons. I came across the following video clip which I believe hits the nail on the head when it comes to international donor aid. No doubt there will be many out there who will denounce the presenter, Ernest Sirolli’s message, but as an African myself I can attest to the many examples of wasted opportunity and bullying which has occurred and continues (till this day) by NGO’s who believe they know better than any what is good for this continent. Thanks to the egotism of most politicians it is easy for such NGO’s to bulldoze their way into lucrative contracts which in most instances never see the light of day, or are so poorly implemented by outsiders, that the target country inevitably has to start all over again at its own cost. Anglo-Saxon involvement and meddling is a particular case in point … brazenly advancing the argument of ‘saving Africa from the Africans!’ I have experienced this several times in the last 15 years. Africa to donors has become little more than a box of Lego – where handpicked consultants experiment – upending all the coloured blocks and after 5 years or more leave a pile of blocks in no better arrangement than what they found when they first arrived. Sadly, the ‘developed nations’ have gotten the whole world into a financial mess and, now more than ever, will apply pressure on African governments into newer and more lucrative deals, because there are no more opportunities in their own back yards. The methods are the same, even the players are the same, just the stakes are now higher. Why, because China and the East are now the new ‘trading partners’ with a bit more bargaining power. Enjoy the video!
Ernesto Sirolli is a noted authority in the field of sustainable economic development and is the Founder of the Sirolli Institute, an international non-profit organization that teaches community leaders how to establish and maintain Enterprise Facilitation projects in their community. The Institute is now training communities in the USA, Canada, Australia, England and Scotland.
In 1985, he pioneered in Esperance, a small rural community in Western Australia, a unique economic development approach based on harnessing the passion, determination, intelligence, and resourcefulness of the local people. The striking results of “The Esperance Experience” have prompted more than 250 communities around the world to adopt responsive, person-centered approaches to local economic development similar to the Enterprise Facilitation® model pioneered in Esperance. Source: TED.com
According to the WEF, competitiveness reflects the level of productivity of a country, based on its institutions, policies and economic factors. In its study, the WEF groups the 144 countries it surveys into one of three economic categories. “Factor-driven” economies are the least developed and rely on low-skilled labor and natural resources. More developed countries are considered “efficiency-driven” economies because they turn to improving output. The most developed economies, which focus on improving technology and new product and idea development, are considered “innovative.”
To create the Global Competitiveness Index (GCI) score for each country, the WEF ranked more than 100 economic indicators divided into 12 broad categories, referred to as pillars, that quantify the extent to which a country is competitive. The economic indicators and pillars were then scored 1 to 7. To rank the countries, some economic measures were weighted more heavily than others, depending on how the economy was categorized.
Based on WEF’s Global Competitiveness Report, which ranks 144 countries that make up almost 99% of the world’s GDP, 24/7 Wall St. reviewed the economies with the highest and lowest Global Competitiveness Index scores. Data from the World Bank and the World Health Organization were used to provide additional information on some economies.
For a summary of the results, read – The World’s Best (and Worst) Economies – 24/7 Wall St.
For the full report, a PDF download (<500 pages) is available from: World Economic Forum
For a view on the impact for South Africa, read – Global South Africans
At the wake of call by some stakeholders for extension of concession period for direct inspection (DI) service providers at the nation’s ports, one of them, Societe Generale de Surveillance SA (SGS) Scanning Nigeria Limited, has reiterated its readiness to handover its cargo scanners and related services under the DI scheme to the Nigeria Customs Service (NCS) by the end of this month in line with the concession contract it entered into with the federal government through the ministry of finance. SGS Scanning Nigeria Limited,having fulfilled its contractual obligations under the DI scheme, is looking forward to a smooth takeover of its DI activities by NCS officers from January 2013.
In 2005, SGS, along with two other service providers was awarded a seven-year contract that commenced in January 2006, to supply cargo scanning machines on a build, operate and transfer basis (BOT) as well as training services and technical support on risk management, valuation and classification.
SGS has delivered on the deployment of cargo scanners and also trained more NCS officers than was stipulated in its contract. In addition, the company, in August this year, concluded the special training of 80 Customs officers tagged ‘DI Transition Team’ at the NCS Ikeja Training School, as part of her winding down activities. Additionally, SGS carried out renovation of some of the NCS training school facilities and provided computers and other equipment.
Furthermore, SGS believes all the NCS officers sent to us for training have been well prepared to take over the DI activities as from January 2013. (Comment: One would hope that the article appended below – Nigerian Customs officials cannot operate scanners – is dated or otherwise inaccurate. It would be grossly unwise for any arm of government to undertake this responsibility unprepared.) The seven-year DI Scheme can be regarded as a transition phase from the former Pre-shipment Inspection Scheme(PIS) to the next phase of NCS development. Therefore, the conclusion of our DI contract on December 31 will be a milestone for NCS.
Having been in Nigeria for more than 50 years, SGS will continue to support the economic transformation efforts of government should the opportunity arise. The company has been in Nigeria since 1957. Source: Leadership (Abuja)
The Nigeria Customs Service (NCS) has concluded plans to hold a conference on Single Window feasibility study findings where the national single window roadmap, implementation plan and key recommendations will be analysed.
The conference will occur in Lagos from 11 to 12 December, 2012, during which organisational, financial and cost benefit analysis for the proposed single window solution will also be analysed. The conference will address issues in areas such as business process, data harmonisation, ICT readiness of stakeholders, legislation, stakeholder relations and change management.
Feedback from all stakeholders is also expected to be collected and validated at the forum for the conclusion of the feasibility study. Furthermore, the conference is designed for policy makers, government officials, business managers, analysts, service providers, representatives of international agencies working in the field of trade facilitation, members of the academia as well as experts in trade and e-business. Source: Leadership (Abuja)
As countries around the world ramp up their campaigns against smoking with tough restrictions on tobacco advertising, the industry is fighting back by invoking international trade agreements to thwart the most stringent rules.
A key battlefront is Australia, which is trying to repel a legal assault on its groundbreaking law requiring cigarettes to be sold in plain packs without distinctive brand logos or colors. Contesting the law, which came into effect Dec.1, are the top multinational cigarette makers and three countries — Ukraine, Honduras and Dominican Republic — whose legal fees are being paid by the industry.
The dispute underlines broader concerns about trade provisions that enable foreign companies to challenge national health, labor and environmental standards. Once a country ratifies a trade agreement, its terms supersede domestic laws. If a country’s regulations are found to impose unreasonable restrictions on trade, it must amend the rules or compensate the nation or foreign corporation that brought the complaint. In the case of Australia’s plain packaging law, the tobacco industry and its allies are challenging the measure as a violation of intellectual property rights under trade agreements the nation signed years ago.
Public health advocates fear the legal attack will deter other countries from passing strong measures to combat the public health burdens of smoking. The “cost of defending this case, and the risk of being held liable, would intimidate all but the most wealthy, sophisticated countries into inaction,” said Matthew L. Myers, president of the Campaign for Tobacco–Free Kids in Washington D.C.
The advocates also say countries should be free to decide how best to protect public health, without being second-guessed by unelected trade panels. Moreover, they argue, tobacco products, which kill when used as intended, should not be afforded the same trade protections as other goods and services. Worldwide, nearly 6 million people a year die of smoking-related causes, according to the World Health Organization, which says the toll could top 8 million by 2030. With fewer people lighting up in wealthy nations, nearly 80 percent of the world’s 1 billion smokers live in low and middle-income countries.
Marlboro, the world’s top-selling brand, packaged under labeling laws of (clockwise) the U.S., Egypt, Djibouti, Hungary/Photos of non-U.S. packs, Canadian Cancer Society
Countries have been emboldened to pass more stringent measures by the Framework Convention on Tobacco Control. In effect since 2005, the treaty has committed about 175 nations to pursue such measures as higher cigarette taxes, public smoking bans, prohibitions on tobacco advertising, and graphic warning labels with grisly images such as diseased lungs and rotting teeth (The U.S. has signed the treaty, but the Senate has not ratified it. The U.S. Food and Drug Administration has ordered graphic warnings for cigarette packs, but an industry court challenge on 1st Amendment grounds has stalled the rule.)
Cigarette makers say they acknowledge the hazards and the need for regulations. “We actually support the vast majority of them,” said Peter Nixon, vice president of communications for Philip Morris International, which has its headquarters in New York, its operations center in Switzerland, and is the biggest multinational cigarette maker with 16 percent of global sales.
But the industry has watched with growing concern as more than 35 countries have adopted total or near-total bans on cigarette advertising. Its big profits depend on consumer recognition of its brands. Yet in many countries, the once-ubiquitous logos and imagery are receding, leaving the cigarette pack as a last refuge against invisibility.
Now the pack, too, is under attack. Along with plain packaging laws such as Australia’s, countries are weighing retail display bans that keep cigarette packs out of view of consumers, and laws requiring graphic health warnings so large that there is barely any room for trademarks. Tobacco companies contend that countries enforcing such rules are effectively confiscating their intellectual property and must pay damages.
The industry also claims that measures like plain packaging are counterproductive. “We see no evidence — none at all — that this will be effective in reducing smoking,” Nixon of Philip Morris International said in an interview. In fact, he said, generic packaging likely will increase sales of cheap, untaxed counterfeit smokes, thus increasing consumption (my emphasis added).
Comment: And for me this is the bottom line. Governments are happy to collect the ‘sin tax’ every year, most increasing it annually under the pretext of curbing the use of alcohol or tobacco products. Forcing draconian law will only increase the contraband ‘underground’ which these same governments have little control over. The worldwide push under the WHO banner appears to have more of a ‘social conditioning’ connotation than a health one.
Iron ore (Engineering News)
The South African cabinet has endorsed the final report on the work of the Intra-Departmental Task Team (IDTT) on iron ore and steel, says Minister in the Presidency responsible for Performance Monitoring, Evaluation and Administration, Collins Chabane.
Briefing reporters following Cabinet’s last meeting of year on Thursday, Chabane said in keeping with prior decisions to enhance the competitiveness of the steel value chain, Cabinet endorsed the final report on the work of the IDTT and the recommendations contained in the report for urgent implementation.
He said there had been a lot of debate and interaction between the Departments of Trade and Industry, Economic Development and steel producers and mining houses with regards to the pricing of steel.
In August 2010, the dti announced the formation of a task team to make recommendations into the viability of local steel production. This as it had expressed concern about the high price of steel in the South African economy.
“Within the context of the beneficiation programme where the government is emphasising and wanting to expand the beneficiation of South African mineral products as it is one of the critical aspects,” said Chabane.
Among the recommendations of the task team are the amendments to the Competition Act and the introduction of export taxes on iron ore and steel where appropriate. The recommendations also include the promotion of new steel investments and prioritisation of electricity available and connections to such investments.
“Government would want, among other things, to expand the number of participants in terms of those who are producing steel as part of the reason to introduce new competition. Secondly [we] also want to take measures which are going to contain the expansion of prices of steel countrywide in order to stimulate the domestic production of various products which need to be processed in the country.
“The government is going to take several steps with regards to that in order to lower the price for domestic consumption and to redirect the steel products to provide for the South African economy,” explained Chabane.
He further added that the Industrial Development Corporation (IDC) will have to play a greater role in the industrialisation of the country through being involved in manufacturing as well as beneficiation. Source: SAnews.gov.za
Twelve African countries are ranked among the 75 least corrupt nations in the world, according to the 2012 index published Wednesday by Transparency International. Published annually, the Corruption Perceptions Index draws upon a range of data sources to determine how corrupt countries’ public sectors are perceived to be. On a scale from 100 (highly clean) to 0 (highly corrupt), two-thirds of all countries scored below 50.
The top eight in sub-Saharan Africa (SSA) in 2012 also led the list in 2011, with approximately the same global rankings, ranging from 65 to 43. Liberia – at number 11 in sub-Sahara with a score of 41 – saw its global ranking rise 16 points – from number 91 last year to 75 in 2012.
Botswana, Cape Verde, Mauritius, Rwanda, Namibia, Ghana and Lesotho led the SSA rankings, along with South Africa, which dropped two places this year – to nine from seven. Gambia, which was ninth last year, dropped this year to 21 in SSA and 105 globally. Tunisia, which is grouped with Middle East and North Africa (MENA) countries, is tied with Liberia at 75 on the global rankings. Crowding the bottom among the most corrupt in the world are Chad, Sudan and Somalia. For more information visit – www.cpi.transparency.org
Flatscan 27 portable scanner
Mondial Defence Systems provide the full range of CBRNe (Chemical, Biological, Radiological, Nuclear and Explosive) solutions to government, military and civil agencies.
The FlatScan 27 is a highly innovative flat portable battery-powered X-ray photodiodes system that has been specifically designed for high-speed and high-resolution inspection tasks. It incorporates a state-of-the-art 2D (two-dimensional) self-contained robust scanning detector, a laptop computer and a CP120B or CP160B portable constant potential X-ray generator to deliver real-time image processing. FlatScan 27 was developed in cooperation with specialised EOD (Explosive Ordnance Disposal) teams and comprises various unique features, specifically to meet any emergency situation. The technology will predominantly be of interest for applications used by the military, police, prisons and customs.
The FlatScan 27 comprises a large number of unique technological features and delivers a versatile and highly thin detector (thickness of just 55mm). This detector means that large objects with dimensions up to as much as 535 x 412mm can be scanned in just one attempt, even in situations where they might be located in very inaccessible places (e.g. close to a wall).
Flatscan 27 providing material discrimination and conventional scanning capability
Furthermore, the FlatScan 27 delivers an excellent image quality with a high penetration capability (up to 34mm of steel at 160kV, 0.5mA). This is possible as a result of its sensitivity, the 800 microns resolution and the ability it offers for slowing down the speed of the scanning detector.
The FlatScan technology can be extended through a variety of options including materials separation. This involves the colour coding of a package to indicate whether the components inside are organic or inorganic in nature. This option delivers extra insight to the operator when making an informed judgment relating to the contents of suspect objects or packages.
The detector is equipped with a battery that lasts for two hours, while the two X-ray source cells each enable the development of up to 200 images. It should be noted that in cases of long-lasting laboratory applications, both items can be powered by optional mains power supplies.
For quick on site intervention, the FlatScan 27 detector can be easily transported in a backpack, while all accessories are stored in a carrying case. For more information visit – http://www.mondial-defence.com
National Planning Commission Minister – Trevor Manual
South African Minister in the Presidency in charge of the National Planning Commission Trevor Manuel says Africa has a lot to learn from the ongoing European economic crisis in order to avoid making the same mistakes. Delivering a presentation under the theme “Africa and the European Financial Crisis — Opportunities and Risks” at the AMH Conversations dinner in Harare on Monday, Manuel said while the European Union (EU) moved at a fast speed towards convergence “we in Africa have been rather painfully too slow about convergence”.
“In fact, it’s so bad for us as Africans that 21 years after the Abuja Treaty was adopted and set out exactly what we need to do if we want to get to an African common market…we still need to focus on regional building blocks,” he said.
“We aren’t building blocks, I am afraid that we are just pebbles without mortar to hold us together. Its not about EU, not about the US (United States), not about the IMF (International Monetary Fund) and World Bank, its about us and the way we relate to each other, and in this context it is fundamentally important that we talk to each other as Africans about some of the hard truths that confront us.”
The former South Africa Finance minister said regional integration required hard work, honesty and convergence, adding that in a global economy, African countries would not be able to survive as individual entities. “As individual countries, we will not make it in the world. We will be picked off and become markets for the rest,” he said.
“So we can’t look to the rest of the world. We have to look to each other in our neighbourhood and understand that’s where change will be driven from. As we learn from Europe we look at ourselves in understanding what we should not do.”
He said institutions mattered both in good times and during a crisis, adding that it mattered for Africa to understand the speed at which countries develop as it builds regional institutions. Manuel said the Lisbon accord brought everybody together in a short space of time without ensuring that each country in the EU was moving at the same rate.
Meanwhile, speaking at the same event, Finance minister Tendai Biti described regional integration as imperative. “For me, with great respect to our principals and leaders, my great disappointment is with the structure of our regional bodies,” he said.
“If you go into the main summit of a SADC meeting, we spend 90% of the time discussing Madagascar, Zimbabwe, Lesotho and now the Democratic Republic of Congo. The actual reports from key ministers like Ministries of finance, regional integration and trade are basically footnotes that Head of States just sift through.” Source: Newsday (Zimbabwe).
Comment: The sad reality of it all is that it is Africa’s politicians which drive this process – they preside over the regional secretariat’s. Its time to provide the necessary guidance to the regional bodies. Moreover, if the ultimate goal is an African Union, why are multiple (overlapping) regional economic unions being promoted?
New Kasumbalesa border post facility – time to jack up cross-border security
Copperbelt Permanent Secretary Stanfold Msichili says Government will enhance security measures to curb rampant illegal activities at Kasumbalesa Border Post which threaten public security. Mr Msichili has also directed Chililabombwe acting District Commissioner, Frank Siatwinda, to establish how Congolese managed to set up a booming trading place on the Zambian soil where assorted wares were being sold.
He said the Government would find a lasting solution to combat rampant illegal activities which threatens public security and that there were plans to engage concerned parties from the Democratic Republic of Congo (DRC). The Open Market has been built on our land because of its proximity to the trading area. It will not be easy to control the situation but Government is committed to finding a long-term solution.
Mr Msichili was saddened that scrap metal from DRC, which was banned for export in that country, was being smuggled into Zambia and reloaded for onward transportation to South Africa. He’s adamant that these issues should be addressed by the police, customs and immigration because we are allowing scrap metal to pass through the country. Earlier, Zambia Revenue Authority (ZRA) Kasumbalesa Border station manager Levy Simatimbe told Mr Msichili’s delegation that illegal activities were rampant at the border with some Congolese traders at the controversial Open Market on the Zambian side selling the banned alcohol, ‘Tujilijili’.
During the tour, Kasumbalesa police assistant superintendant Anthony Mphanza said the existence of the Bilanga Township, a few metres from the Zambian side where the population of foreigners was swelling posed a security threat. The Bilanga Township may encroach the Zambian side because its population of foreigners was concentrating along the areas where there was potential for trading in essential basic commodities, like maize meal, cooking oil, sugar, timber, household items, among other items. Illegal trade in cement was becoming a huge public concern at the border. It is estimated that about five tonnes of cement was illegally sold to DRC everyday. Congolese freely come to Comesa Market at Kasumbalesa Border to sell and buy different items. They carry about 10 bags of 25 kilogrammes on a bicycle. Source: The Times (Zambia)
Uganda, Malaba border crossing
The New Vision (Uganda) reports on a draft law which will punish countries that fail to implement agreed upon mechanisms to eliminate trade barriers has been submitted at the regional Parliament.
Jose Maciel, the TradeMark East Africa director of trade facilitation, noted that while most of the non-tariff barriers (NTBs), including road blocks and corruption have slightly declined, the proposed law in the East African Legislative Assembly, if enacted, would create the possibility of sanctions against stubborn states that do not enforce the check points. “It is important to give teeth to the system. We need to make it possible to impose sanctions for countries that do not eliminate NTBs,” said Maciel.
He was speaking at a Kenya Ports Authority (KPA) organised meeting with EAC media in Mombasa. TradeMark is a trade facilitating agency operating in the five states of East Africa. Maciel said non-tariff barriers like road blocks, which are easy to eradicate, are some of the biggest impediments to East Africa’s competitiveness.
States are not the only defaulting party to agreed upon positions on eliminating NTBs. P.J. Shah, a Mombasa entrepreneur, for instance notes that while Mombasa began 24-hour operations about three years ago, other agencies like banks and shipping lines are not operating 24 hours. The poor infrastructure such as rail and water systems, whose potential is yet to be optimised, also increase trade costs. Other NTBs include weighbridges and corrupt state enforcement agencies.
Regional trade experts and facilitation agencies such as Trade Mark East Africa agree that NTBs are known, and numerous researches have been done about them and their impact on trade. Although some efforts have been made to eradicate or reduce the salient ones such as road blocks, overall NTBs remain a major trade impediment.
Two thirds of goods are shipped in containers. TradeMark estimates that 20% of annual shipments face NTBs. TradeMark is also targeting to work with regional governments to harmonise 20 standards in a year, amongst the other efforts at making EAC more competitive.
During the Mombasa meeting, it was agreed that because sometimes there seems to be no communication between the different government agencies such as the Kenya Revenue Authority (KRA) and KPA, hinterland states suffer.
There should be a single authority that oversees them all and ensures enforcement. There are about 24 road blocks between Mombasa and Uganda’s border and another 21 in Uganda, four in Burundi and two in Rwanda. There are also 12 weighbridges in Kenya, five in Uganda and two in Rwanda.
“A well run efficient port can help shape economic growth and performance of the economy,” said Antony Hughes, a TradeMark official.
Mombasa handles about 20 million tonnes of cargo, 85% destined for Uganda and other hinterland states. Transit states always suffer the biggest brunt of NTBs and poor flow of information regarding imminent disruptions at the border. This was witnessed during the recent cash bond imposed by KRA that caught Uganda traders unaware, leading to massive clog ups of cargo and huge loss of value.
Comment: It appears that regional bodies such as the EAC are to get extraordinary powers to enforce rules over sovereign states. Would be interesting to learn whether these member states voted for such action, or if it is rather the ideal and persuasion of ‘foreign’ interests.
Researchers and students of international trade patterns and economics will find a useful resource in the following link. Information is made available across databases, annual publications as well as interactive statistics and maps. Please take note of the copyright.
EAC Heads of State sign historic Common Market Protocol
Kenyan Finance Minister Njeru Githae has said that the East African member states are going to meet the December 31 deadline for the signing of the monetary union protocol despite skepticism over the issue. He said that out of the 100 articles on the monetary union, 85 have been agreed upon therefore, he said, he is optimistic that the deal will be signed by the set date. “We are learning from mistakes of the eurozone and we have decided to come up with harmonisation of methodology for statistics such as inflation rate, interest rates and the penalties for the countries that do not comply,” explained Githae on Friday. “We have also agreed on the amount of budget deficit that is acceptable and countries that do not meet the set mark will also face penalties.” Comment: What on earth will penalties for not setting the mark achieve – those unfortunate countries will not have the money to foot the debt let alone penalties, plunging the rest of the common market into fiscal anxiety?
However, the minister cautioned that the signing of the protocol will not immediately result in change of currency to adopt one for all the member states but would rather give the road map to implementation of a single currency. The monetary union was slated as the next step to regional integration after the EAC Customs Union in 2005 and a Common Market in protocol signed in 2010. The monetary integration was to help member states co-operate in economic and fiscal matters aimed at reducing the costs and risks of doing business across the boundaries. When fully implemented and a single currency is later introduced as a result, the EAC partner states would achieve removal of the costs of having to transact in different currencies and the risk of adverse exchange rate movements for traders and travelers. Source: The Star (Kenya)
What Happened to the Portcullis? 
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