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“International financial system biased against Africa; Reform it now” – President Akufo-Addo

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  The President of the Republic Nana Addo Dankwa Akufo Addo has called for an urgent reform of the international financial system since the current monetary system is biased against developing countries According to President Akufo Addo financial markets have been established and operate with rules designed for the benefit of rich and powerful nations and in times of crisis the facade of international cooperation under which they pretend to operate disappears In his turn to speak at the United Nations General Assembly on Wednesday September 21 in New York the president stated that these are the savage lessons that we have had to learn when the world emerged from the clutches of the coronavirus to rises in energy and food prices and a global increase in the cost of living The need to reform the system is pressing Emphasizing that our world is currently not in a good place he recalled a World Bank observation that described the global economy as enduring its steepest slowdown since 1970 With the world facing a devastating global economic pandemic pushing Africa into its worst recession in half a century President Akufo Addo declared that a drop in productivity and incomes increased pressures on spending and a spiral of public debt They faced the continent relentlessly As we grappled with these economic challenges Russia s invasion of Ukraine came crashing down on us compounding an already difficult situation It is not just the dismay we feel to see such deliberate devastation of cities and towns in Europe in the year 2022 we are feeling this war directly in our lives in Africa Every bullet every bomb every shell that hits a target in Ukraine hits our pocketbooks and our economies in Africa he said Describing global inflation as enemy number one this year President Akufo Addo noted that it reached a 40 year high in the US and UK in recent months There is record inflation in the euro zone Several African countries have inflation rates rising three to four times higher than just two years ago In Ghana the President indicated that we are experiencing the highest inflation in 21 years High food costs are hitting the poor hardest especially the urban poor The indirect effect of raising interest rates by central banks around the world to fight inflation according to the president has been severe across borders as global investors withdraw money from developing economies to invest in bonds in the developed world This he further explained has led to currency depreciation and increased borrowing costs which means that the economies of Africa need to raise and spend more of our own currencies to pay foreign debts in US dollars It has become clear if there was ever any doubt that the international financial architecture is significantly biased against developing and emerging economies like Ghana The avenues that are open to powerful nations so they can take action to ease pressures on their economies are closed to small nations he said To make matters worse President Akufo Addo noted that credit rating agencies have been quick to downgrade Africa s economies making it difficult to service our debts The label of Africa as an investment risk is little more than in essence a self fulfilling prophecy created by the bias of the international money market which denies us access to cheaper loans pushing us further into debt History the President stressed will judge us harshly if we do not seize the opportunity to make the changes that will allow us to address the many problems we face Conflict in the Sahel Referring to the conflict in the Sahel President Akufo Addo pointed out that the conflict has inexorably moved from the Sahel to the coastal countries of West Africa where all of Ghana s neighbors suffer from terrorist attacks and some lose territorial space to the invaders cash Terrorist pressure he explained terrorist pressure has provided a pretext for the unfortunate reappearance of the military government in three 3 of the fifteen 15 members of the ECOWAS Community two 2 of whom have been the most affected by terrorist attacks in the Region Mali and Burkina Faso All of us in the Region are forced to spend large amounts of money on security This is money we should be spending on educating and training our young people on the construction of much needed roads bridges hospitals and other similar infrastructure which we are spending to fight terrorists or to prevent them from destabilizing our countries This according to President Akufo Addo is a global problem that deserves the attention of the world community for a global solution
“International financial system biased against Africa; Reform it now” – President Akufo-Addo

1 The President of the Republic, Nana Addo Dankwa Akufo-Addo, has called for an urgent reform of the international financial system, since the current monetary system is biased against developing countries.

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2 According to President Akufo-Addo, “financial markets have been established and operate with rules designed for the benefit of rich and powerful nations and, in times of crisis, the facade of international cooperation, under which they pretend to operate, disappears.

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3 ” In his turn to speak at the United Nations General Assembly, on Wednesday, September 21, in New York, the president stated that “these are the savage lessons that we have had to learn, when the world emerged from the clutches of the coronavirus to rises in energy and food prices, and a global increase in the cost of living.

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4 The need to reform the system is pressing.” Emphasizing that “our world is currently not in a good place,” he recalled a World Bank observation that described the global economy as “enduring its steepest slowdown since 1970.”

5 With the world facing a devastating global economic pandemic, pushing Africa into its worst recession in half a century, President Akufo-Addo declared that a drop in productivity and incomes, increased pressures on spending and a spiral of public debt They faced the continent relentlessly.

6 “As we grappled with these economic challenges, Russia‘s invasion of Ukraine came crashing down on us, compounding an already difficult situation.

7 It is not just the dismay we feel to see such deliberate devastation of cities and towns in Europe in the year 2022, we are feeling this war directly in our lives in Africa.

8 Every bullet, every bomb, every shell that hits a target in Ukraine hits our pocketbooks and our economies in Africa,” he said.

9 Describing global inflation as “enemy number one this year”, President Akufo-Addo noted that it “reached a 40-year high in the US and UK in recent months.

10 There is record inflation in the euro zone.

11 Several African countries have inflation rates rising three to four times higher than just two years ago.”

12 In Ghana, the President indicated that “we are experiencing the highest inflation in 21 years.

13 High food costs are hitting the poor hardest, especially the urban poor.” The indirect effect of raising interest rates by central banks around the world to fight inflation, according to the president, has been severe across borders, as global investors withdraw money from developing economies.

14 to invest in bonds in the developed world.

15 This, he further explained, has led to currency depreciation and increased borrowing costs; which means that the economies of Africa need to raise and spend more of our own currencies to pay foreign debts in US dollars.

16 “It has become clear, if there was ever any doubt, that the international financial architecture is significantly biased against developing and emerging economies like Ghana.

17 The avenues that are open to powerful nations so they can take action to ease pressures on their economies are closed to small nations,” he said.

18 To make matters worse, President Akufo-Addo noted that “credit rating agencies have been quick to downgrade Africa’s economies, making it difficult to service our debts.

19 The label of Africa as an investment risk is little more than, in essence, a self-fulfilling prophecy created by the bias of the international money market, which denies us access to cheaper loans, pushing us further into debt.

20 History, the President stressed, “will judge us harshly if we do not seize the opportunity to make the changes that will allow us to address the many problems we face.”

21 Conflict in the Sahel Referring to the conflict in the Sahel, President Akufo-Addo pointed out that the conflict has inexorably moved from the Sahel to the coastal countries of West Africa, where all of Ghana’s neighbors suffer from terrorist attacks and some lose territorial space to the invaders.

22 cash.

23 Terrorist pressure, he explained, terrorist pressure has provided a pretext for the unfortunate reappearance of the military government in three (3) of the fifteen (15) members of the ECOWAS Community, two (2) of whom have been the most affected by terrorist attacks.

24 in the Region – Mali and Burkina Faso. “All of us in the Region are forced to spend large amounts of money on security.

25 This is money we should be spending on educating and training our young people; on the construction of much-needed roads, bridges, hospitals and other similar infrastructure, which we are spending to fight terrorists or to prevent them from destabilizing our countries.” This, according to President Akufo-Addo, is a global problem that deserves the attention of the world community for a global solution.

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