AGOA records huge increase in African exports to US

 
By Jerome Hule PANA Correspondent Monterrey, Mexico (PANA) - The Africa Growth and Opportunity Act passed by the US Congress in 2000, has led to an increase of more than 1,000 percent in African exports to the US in the past year, President George W. Bush said Friday.

Addressing the UN Conference on Financing for Development in Monterrey, Mexico, he said AGOA has also generated more than one billion dollars in new investments and many jobs in Africa.

Such improvement, Bush explained, is indicative of the impact that trade can make in the fight against poverty.

Calling for trade expansion, the American leader said trade brings new technology, new ideas and new habits to the peoples involved, citing South Korea and China, as examples.

In a speech that could pass for a lecture on development economics, Bush stressed the need for the world to adopt new ways to fight global poverty.

While reaffirming his announcement of a five-billion-dollar increase in US development aid over three years, beginning in 2004, Bush said the money would go to reforming countries.

Countries that have open markets and respect the rule of law will be able to use aid to improve the lives of their people as opposed to countries with oppressive and corrupt leaders, he said.

The US President pointed out that the old practice whereby donors talked about how much they gave in aid should change to how much improvement aid was able to achieve.

The best aid, he said, is the one that goes to benefit the poor and not a the leaders, who oppress their people.

And instead of giving loans that may not be repaid, Bush advised that donors focus more on grants that will be invested in health and the fight against HIV/AIDS.

He said he has asked his cabinet Members to develop objective criteria for the administration in deciding countries deserving of US aid, assuring that criteria would be applied fairly.

In his speech, French President Jacque Chirac said the Monterrey Conference should set the stage for the world to deal with its common destiny.

In today's globalising world with abundant resources, the French leader said it is a serious concern that two billion people still live and die in poverty and malaria, while HIV/AID ravages whole societies.

Chirac called for the globalisation of solidarity to end unacceptable, politically dangerous and socially absurd situations

For too long, the world had allowed indifference to prevail but from Monterrey, the world should allow a new wind to blow bringing hope and solidarity, he said.

The French leader said the Monterrey Conference Monterrey was only a beginning.

To achieve the millennium development goals of reducing poverty, improving the health of mothers and children and increasing access to education for the youth, he said the World Bank has calculated that additional 50 billion dollars would be needed every year.

That amount, he said, was modest given the resources available in the world, adding that what matters is the determination to achieve the millennium goals.

Among required efforts, he listed the cancellation of the debts of poor countries and expanding trade opportunities.

There is also the need to consider proposals for an international taxation to finance development and the use of Special Drawing Rights, the reserves allocated to member States of the International Monetary Fund, that could be drawn on to increase resources for development.

"We need to build on Monterrey through partnership for development," Chirac urged, saying what the world did in rallying around the US when it was attacked by terrorists last year could be repeated against poverty.

The Conference ends Friday.
 
Monterrey - 22/03/2002
 
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