Dr Boyce: The Economic Implications of Obama's Trip to Africa

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President Obama is headed to Africa this week in what appears to be a symbolic, one day visit. While one can certainly not build Africa in a day, the truth is that we don't yet know how deeply committed our new president is to reforming the continent. However, Africans trust the president a great deal and so do many African Americans. There is reason to trust Obama, given his African roots, and the truth is that it won't take much for him to improve on the policies of Clinton and Bush.

As black people, it is important for us to realize the urgency of persuading the president to pursue an assertive economic policy in Africa. Africa is a place that is rich with resources and full of opportunity. We should take the lead in ensuring that our nation changes the perception of the continent and opens the door for greater investment across the sea.

Additionally, Obama should keep this in mind as he begins his journey to the motherland:

1) The goal is not to simply give aid to Africa. The objective should be to help Africa to aid itself. The recent package of $15 billion being offered by many rich nations across the world is a great first step, but not simply because of the size of the package. It is also significant due to the fact that it helps farmers to use their land more efficiently, thus allowing Africans to achieve sustainable long-term economic growth. The same mindset can be applied to helping African businesses operate more effectively, form strategic partnerships and to develop the necessary infrastructure for corporate development.

2) The president correctly noted in recent interviews that political stability is an important precursor to economic stability. Those governments that do not represent the people should be challenged by the United States to engage in greater governmental transparency. Yes, this is a difficult task, but it is surely worth pursuing. One can hope that the task of addressing corrupt governments would be done without any sort of secondary agenda, but then again, politicians will be politicians.

Obama on Tour

    U.S. President Barack Obama walks by the G8 logo during a media conference at the G8 summit in L'Aquila, Italy on Thursday, July 9, 2009. (AP Photo/Andrew Medichini)

    AP

    U.S. President Barack Obama, left, and Australia's Prime Minister Kevin Rudd participate in a media conference at the G8 summit in L'Aquila, Italy on Thursday, July 9, 2009. (AP Photo/Andrew Medichini)

    AP

    South Korean President Lee Myung-bak participates in a media conference at the G8 summit in L'Aquila, Italy on Thursday, July 9, 2009. (AP Photo/Andrew Medichini)

    AP

    U.S. President Barack Obama walks by the G8 logo during a media conference at the G8 summit in L'Aquila, Italy on Thursday, July 9, 2009. (AP Photo/Andrew Medichini)

    AP

    U.S. President Barack Obama, left, and Australia's Prime Minister Kevin Rudd participate in a media conference at the G8 summit in L'Aquila, Italy on Thursday, July 9, 2009. (AP Photo/Andrew Medichini)

    AP

    U.S. President Barack Obama, left, and Australia's Prime Minister Kevin Rudd participate in a media conference at the G8 summit in L'Aquila, Italy on Thursday, July 9, 2009. (AP Photo/Andrew Medichini)

    AP

    Honduras' interim President Roberto Micheletti, right, is accompanied by Cyrus Alpizar of Costa Rica's Foreign Ministry upon his arrival to Juan Santamaria international airport near San Jose, Thursday, July 9, 2009. Micheletti arrived to participate in negotiations with Honduras' ousted President Manuel Zelaya, with Costa Rica's President Oscar Arias acting as mediator. Honduras' army seized Zelaya and flew him out of the country on June 28 after the courts and Congress accused him of violating the constitution. (AP Photo/Kent Gilbert)

    AP

    Leaders leave a news conference on the environment at the G8 summit in L'Aquila, Italy, July 9, 2009. Leaders of the Group of Eight major industrial nations and the main developing economies are meeting in the central Italian city of L'Aquila until Friday to discuss issues ranging from global economic stimulus to climate change and oil prices. From L-R: Mexico's President Felipe Calderon, Britain's Prime Minister Gordon Brown, Italy's Prime Minister Silvio Berlusconi, Canada's Prime Minister Stephen Harper, U.S. President Barack Obama and South Korea's President Lee Myung-bak. REUTERS/Chris Wattie (ITALY POLITICS ENVIRONMENT)

    Reuters

    Australia's Prime Minister Kevin Rudd (R) offers his hand to U.S. President Barack Obama after the two leaders gave a news conference on the environment at the G8 summit in L'Aquila, Italy, July 9, 2009. Leaders of the Group of Eight major industrial nations and the main developing economies are meeting in the central Italian city of L'Aquila until Friday to discuss issues ranging from global economic stimulus to climate change and oil prices. Pictured clapping are Mexico's President Felipe Calderon (L-R), Britain's Prime Minister Gordon Brown, Canada's Prime Minister Stephen Harper, and Italy's Prime Minister Silvio Berlusconi (2nd R). REUTERS/Jason Reed (ITALY POLITICS ENVIRONMENT)

    Reuters

    Uighur, Tibetan and Mongol demonstrators hold flags and posters while marching during a joint protest against China, in Stockholm, Sweden July 9, 2009. Chinese President Hu Jintao, forced to abandon a G8 summit in Italy by ethnic violence in restive Xinjiang, said that maintaining social stability in the energy-rich region was the "most urgent task", state television reported on Thursday. REUTERS/Bertil Ericson/Scanpix (SWEDEN CONFLICT POLITICS) NO COMMERCIAL OR BOOK SALES. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. SWEDEN OUT. NO COMMERCIAL OR EDITORIAL SALES IN SWEDEN

    Reuters


3) Given that sub-Sarahan Africa gets only 2% of all global trade (compared to 6% in 1980), a slight increase in this number can do a great deal to eradicate poverty and improve standards of living. Obama should invest in economic think tanks that have real power to help solve this problem, and work proactively to implement their suggestions. The increase in trade should be accompanied by corporate accountability, to ensure that business is being done in a way that provides incentives for U.S. corporations to invest in the communities within which they operate. One serious problem in many African nations is that the wealth being earned from African resources rarely finds its way to the people. This is fundamentally wrong.

As people of color, we cannot stand by idly and watch Africa suffer. We must remember that while the plight of African Americans is difficult in this global economy, the plight of Africans is far worse. Millions of lives are dependent upon our willingness to act, and the world is watching us closely. During my trip to Africa, I realized that you and I are quite privileged to be just a couple of degrees of separation from the most powerful leader in the world. We collectively control our own destiny.

Below, there are two interviews I did this week, one with Dr. Wilmer Leon, a Howard University Professor and one of the leading black political scientists in the country. The other is with Pastor Poju Oyemade, one of the leading pastors in Nigeria. I felt that with all the commentary about what people in the US are thinking about Obama's trip to Africa, it is only appropriate that we hear from our brothers and sisters across the sea.

The interview with Dr. Leon is at this link.

The interview with "Pastor Poju" is at this link. I hope you'll take a listen.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, "Black American Money," set for release on July 15, 2009. To have Dr. Boyce commentary delivered directly to your email, please click here.

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