African Union wants to see an African heading IMF

Appointment of the new IMF Managing Director
Time for a Long Overdue Change – Time for an African

African Union Statement
Department of Economic Affairs
June 8, 2011

The departure of Mr. Dominique Strauss-Kahn as Managing Director of the International Monetary Fund (IMF) presents a prime opportunity for the IMF and the developed countries to deliver on their commitment to implement major reforms at the IMF, including those relating to governance. In particular, there is now need to end the ‘informal agreement’ that the head of the IMF should be a European. In this regard, an opportunity has arisen to decisively take hold of the IMF governance reform agenda by selecting the next IMF Managing Director through an open, transparent and merit based selection process in accordance with recent discussions within the G20 in the wake of the recent global economic and financial crisis.

The African Union believes that it is now time for a non-European, particularly an African, to be at the helm of the IMF, given that the position of IMF Managing Director has never been held by a non-European because of the tacit agreement that currently exists for a European to head the institution. Selecting a non-European and particularly someone from the developing world would go a long way in increasing voice and representation at the IMF for these countries.

In addition, selecting a non-European would also better reflect the dynamic changes occurring in the global economy, with a gradual shift in global production and demand away from the industrialized economies to developing regions such as Africa, Asia and Latin America. The IMF’s World Economic Outlook for January 2011, for example, predicts that the world economy will expand at about 4.5 percent in 2012, with advanced economies growing at only about 2.5 percent and emerging economies advancing at 6.5 percent. Notably, a number of countries that are expected to continue growing strongly are in Africa. Further, the World Bank’s Global Development Horizons 2011 Report also projects that the world's emerging economies will grow on average by 4.7 percent annually between 2011 and 2025, a rate that is twice the 2.3 percent projected for advanced economies over the same period.

The case for an African IMF Managing Director also arises from the fact that Africa is emerging as a new pole for global growth with huge potential ranging from increased gross domestic product (GDP) growth performance, macro-economic stability, a population size of 1 billion, consumer spending of more than USD 860 billion, and abundance of natural resources, amongst other things. Arguably, the developing countries, including those in Africa, have several highly qualified and credible candidates for the position of IMF Managing Director, whose appointment would also give credibility and legitimacy to the IMF.

Reforming the selection procedure for the Managing Director of the IMF is also crucial given that developing countries are increasingly becoming major contributors to the institution, representing about 42 percent of the contributions to the Fund, compared with the less than 30 percent contributed by Europe and the United States. Further, appointing an IMF Managing Director from a developing country, and in this case from Africa, would bring with it new perspectives and new ways of handling the macroeconomic and fiscal problems of IMF member countries that take into consideration the interests of all countries, and thereby help to foster improved global sustainable and balanced growth and macro-economic stability.

In conclusion, the African Union urges that candidates from developing countries, and particularly from Africa, be given fair and equal opportunity for selection for the position of IMF Managing Director. Europe can no longer maintain an absolute right to the position of IMF Managing Director. Should the tradition be done away with, one possible compromise in the package of change would be for the No. 2 position to be given to a European. The time is now to deliver on the IMF governance reform agenda relating to ensuring an open, transparent and merit based selection its Head.

Jacob Zuma: NATO is abusing UN resolution in Libya

Libyan rebel fighters walk forward on the outskirts of Zlitan near Misurata's western frontline June 12. [Reuters]

This wont be the first time NATO has abused the UN charter and insulted African ways the only difference this time is the African president of the largest economy in Africa, the man himself J to the Zee a.k.a Jacob Zuma ( A man of steel ) as they call him acknowledged on Tuesday that NATO is abusing a United Nations resolution to protect Libyan civilians from Muammar Gaddafi's forces in order to pursue regime change and political assassinations.

"We have spoken out against the misuse of the good intentions in Resolution 1973," Zuma said during a budget speech in parliament.

"We strongly believe that the resolution is being abused for regime change, political assassinations and foreign military occupation''

But Britain as if their death to these remarks chanted on "Britain can sustain its mission in Libya for as long as it chooses" these words came from the head of the armed forces on that same day, even after the navy chief warned of tough choices if the campaign lasts more than six months.

Either way Muamar Gadhafi has to go but i want AU to take credit for it, not other way around!

US to assist Tanzania overcoming power shortage

"Tanzanian first lady Mrs Salma Kikwete and United States secretary of state Mrs Hilary Clinton"

THE United States has praises Tanzanian government for its strong commitment to deliver to the society and has pledged its full support in addressing the challenges that lie ahead.

The US Secretary of State, Mrs Hillary Clinton, said in Dar es Salaam on Sunday that energy was the key for swift development and pledged her country's commitment to help Tanzania overcome its electricity woes.

"In Tanzania we have found a government and people that understand this and I know how important it is," said the US Secretary of State amidst applause.

Flanked by the Chief Executive Officer for Millennium Challenge Corporation (MCC), Mr Daniel Yohannes and Paul Hinks, the Symbion Power Company's CEO, Ms Clinton said that in the MCC projects Tanzania would become a model not just for Africa but the whole world.

She insisted that the US is taking the opportunity to help Tanzania overcome most of its development obstacles and that it is eager to assist the country deliver reliable and affordable electricity to its citizens.

"That is why MCC is such an important partner in this," she said. Visiting the Symbion Power plant at Ubungo in Dar es Salaam during the second day of her three-day visit, Ms Clinton said many developing countries were not succeeding for lack of energy.

"If you are looking for the single biggest reason why development is not succeeding in Latin America, Africa and Asia it is because of lack of energy and inability to deliver electricity to the people.

"I find I am standing before a large jet engine that will bring electricity to thousands of homes here in Tanzania. It is good because Tanzania is taking off.

"Tanzania is taking off on so many fronts. The most important one being improving access to electricity -- expanding what is possible with reliable and affordable electricity," said Mrs Clinton.

She said that Tanzania is one of four countries in the world and one of only two in Africa that the US has considered eligible as its first partners for growth.

The US Secretary of State, who is on a three African states visit has already been to Zambia with Ethiopia coming next after Tanzania, also talked about her government's assistance to alleviating power shortages in Zanzibar.

She said that the 45 million US dollars project whose funding is part of a $698 million US dollar grant to Tanzania in 2008 under the Millennium Challenge Corporation to fund water, energy and infrastructure, would increase the capacity of the 30-year-old marine cable extending from the Mainland.

Some $206 million US dollars has been allocated for energy projects for the construction and rehabilitation of 24 power substations throughout the Mainland and on Unguja.

The agreement will finance the manufacture and installation of a new 100 megawatt submarine power cable between the Mainland and Zanzibar . But here are some photos from her arrival in Tanzania:

U.S. Secretary of State Hillary Clinton is entertained upon arrival at the Julius Nyerere International Airport in Dar es Salaam, Tanzania June 11, 2011.

( I wonder who's the hottie in black tux?.. )