Posted by: Armel | March 6, 2009

ADBOULAYE WADE’s Bouquet to OBAMA

                                              A Bouquet for OBAMA
by Abdoulaye Wade President of the Republic of Senegal

 

As the president of the Dominican Republic affirmed at the UN General Assembly, citizens of the South have a duty to be part of the current reflection and debate on a new world governance.  In this spirit, I have offered U.S President Barack Obama a “bouquet of ideas” on our most urgent economic crises.

 

International monetary system

We need leadership that will impress upon the world’s economy a global evolutionary order – but one that does not leave behind the non-developed remain the international monetary benchmark (remaining unpegged to gold)
 while being held to strict rules of monetary discipline.

 

The US dollar should be “overvalued” by international consensus (or at least by contries with major currencies who are willing to accept certain adjustment anticipates the eventual correction of the euro.

 

In order to avoid an additional burden on debtors in dollars, the volume of debts of governments and companies should be reduced in the same proportion.  The differential can be cleared by the amount of dollars freed up by deflation, or directed to development policy.

 

The quota allocation system for capital fund constitution should be maintained but not proportionally to the wealth of member states.  The system should take into account the economic duality of our world by allocating half or two thirds to rich countries and the complement to developing nations.

 

An additional issue of SDR (Special Drawing Rights) specifically for Africa, should be created  in order to finance infrastructure, education, health and ICT’s exclusively.  Africa must take charge of the financing of all other economic sectors, primarily by opening up widely to the private sector.

 

Strategic position of Africa

Africa offers a unique and strategic solution for avoiding the recurrence of the global economic crises.  Africa could absorb a significant part of the massive speculative capital mainly responsible for inflation as recently noted in the soaring prices of oil and agricultural products.

 

Exceptionally endowed with natural and human resources, Africa should be developed briskly following the 19th century American model by opening up to private capital, specifically the scientific community devoted to the economic levers within a newly-created continental organization, namely the United States of Africa.

 

President Abdoulaye Wade

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