Civil Society and African Development

It is a great pleasure to join you in opening the Second AGOA [African Growth and Opportunity Act] Civil Society Network Session. I am especially pleased to welcome civil society representatives who have traveled from Africa to attend this conference, including a group of International Visitors sponsored by the Department of State. Your presence here in Washington reflects the vital link civil society provides between the people, the government, and the business community in shaping the investment environment to promote prosperity for all.

Seeing all of you reminds me of my early days as a teacher in Kenya and a Foreign Service Officer in Sierra Leone and Congo. We worked hand in glove with many of the NGOs [non-governmental organizations] on the ground there, including CARE and Catholic Relief Services. It was a fruitful partnership that led to a number of successful projects to build schools, bring safe water to villagers, and provide improved agricultural techniques to small farmers. It also included a few late-night poker games! During that time, I really had a sense of shared vision of a more prosperous, peaceful Africa. It has proven to be a tough job, where successes mixed with many disappointments. But I am confident that working together we can strengthen and renew our partnership to support Africa in its journey toward a sustainable, market-based development.

“Building Trade, Expanding Investment” is our theme for this year’s AGOA Forum. By providing Africans unprecedented access to growing U.S. markets, the African Growth and Opportunity Act (AGOA) has had a catalytic impact, stimulating economic growth, supporting African reforms, and helping sub-Saharan Africa integrate into the global economy. Let me give you a few examples.

Total U.S.-African trade was nearly $24 billion in 2002. U.S. merchandise exports to sub-Saharan Africa were just over $6 billion in 2002, greater than exports to the former Soviet republics and nearly twice those to Central and Eastern Europe.

Trade with AGOA eligible countries increased 10% in 2002 despite an overall decline in global trade. While most U.S. imports continue to be in the energy sector, AGOA is providing an opportunity for Africa to diversify its exports. Already in 2002, non-fuel AGOA imports totaled $2.2 billion, with apparel imports totaling $803 million, roughly twice the amount in 2001. Transportation equipment imports (primarily cars and auto parts from South Africa) were up 81% to $545 million.

Trade in non-traditional exports continues to rise, and AGOA has facilitated new investment, both cross-border within Africa as well as investment from outside the continent. USTR [U.S. Trade Representative] estimates that AGOA-related trade and investment has created over 190,000 jobs in Africa and over $340 million in new investments. New investment in infrastructure, especially in southern and eastern Africa, can lead to a gradual adoption of world-class standards for customs clearance and port security.

While the African Growth and Opportunity Act remains a centerpiece of our economic policy toward sub-Saharan Africa, we are also focused on the Millennium Challenge Account (MCA). Through MCA partnerships, we will support eligible developing nations that demonstrate a strong commitment to the proven development foundations of just governance, investment in people through health and education, and promoting economic freedom.

This year, Congress has provided strong bipartisan support to the MCA. We have achieved consensus on a first-year appropriation of $1.0 billion, and we are optimistic that Congress will soon approve legislation establishing the MCA so that we may begin operations.

Through the MCA, we will work with partners committed to the policies that let development succeed. Both AGOA and MCA recognize that development assistance is a catalyst for growth, but that free markets and domestic and foreign investment are its true engines.

NGOs are a vital link in the development chain in Africa. We admire your dedication and can-do approach on the ground. We share your commitment to development, human rights, environment, and social issues.

NGOs in Africa have great influence. I respect your courage and commitment and believe that governments and NGOs must deepen our partnership with African governments, and with each other, if we are to help Africans achieve their place in the world.

Friends with influence have responsibilities. One of those responsibilities is to avoid carrying to Africa developed country disputes. The Cancun WTO [World Trade Organization] meetings represented a lost opportunity for Africa, in terms of reduction of tariffs and trade barriers that prevent the continent from reaching its full economic potential. I have been concerned, I must admit, that in recent years some NGOs have carried to Africa European positions on biotech food crops or agricultural trade and Indian positions on pharmaceutical patents.

Now I am not arguing that the views of the U.S. Government are always right. What I am arguing is that all of us need to scrupulously avoid the temptation to speak for Africa or to bring to that continent our disagreements that are not really at the heart of Africa’s situation. We will not agree on every issue, but I think we do agree that our goals are the same for a more peaceful and prosperous Africa.

We look forward to a busy and productive two days. Africa and the United States are important to each other. President Bush has shown his commitment to Africa, by expanding assistance for HIV/AIDS prevention, his personal involvement in getting the maximum resources for the Millennium Challenge Account, as well as an extension of AGOA trade benefits. NGOs and civil society also have a vital role to play in African development, and we need and thank you for your commitment.