By William Wallis in London (FT)
The International Monetary Fund should be allowed to sell some of its gold reserves to cushion Africa from the global economic crisis, African countries will argue at next month’s Group of 20 summit.
Meles Zenawi, Ethiopia’s prime minister, representing the continent, said the sell-off could raise between $5bn (€3.8bn, £3.6bn) and $15bn to be channelled through the IMF, World Bank and other multilateral institutions.
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Africa needed short-term increases in development assistance of between $30bn and $50bn to offset declining trade and investment. The availability of such funds was a matter of life and death, Mr Meles said in an interview with the Financial Times.
“We are seeking a much smaller stimulus package than is being spent bailing out the small and medium-sized banks in the west,” Mr Meles said.
In countries such as Britain, he added, the worst likely consequence for individuals in the downturn is the loss of employment. “The worst that can happen in Africa is that people who were getting some food would cease to get it and instead of being unemployed would die,” he said.
African economies are facing a looming balance of payments crisis as income from commodities, foreign investment, remittances and aid shrink simultaneously.
Mr Meles said there was a risk that fragile recent gains would be washed away, conflicts would reignite and more states would fail.
“Africa was beginning to stand up and now it is being knocked down again by this crisis, which is not of Africa’s making. That is one of the biggest tragedies,” he said.
In the past, African gold producers have opposed the idea of the IMF selling off its reserves because of its likely impact on world prices.
“Gold prices are doing well now so a slight correction to mobilise resources for Africa would not be that difficult,” Mr Meles argued.
More funds for the continent could be sourced if other developed countries join Europe in supporting a recapitalisation of the IMF with hundreds of billions of dollars of additional funds, he said.
In the longer term, Africans would have to rethink all their “development strategies” and “find ways of doing well in an environment that is less permissive”.
Ethiopia has resisted western pressure to open up its economy faster and privatise its banks, a position Mr Meles suggested had proved “prudent” in light of global events.
“One of the problems at the moment is that the situation is so volatile,” he added. “It keeps changing every week. It destabilises everything, including one’s thinking. If we knew where the bottom was we could start thinking as to how to get out of it.”
Copyright The Financial Times Limited 2009
Editor’s Note:
Zenawi and Co. have embezzled millions donated by the international community to save the Ethiopian people from starvation and disease. The following information shows in detail the amount of money looted out of Ethiopia’s treasury and deposited in foreign banks for use by the regime’s leaders and their extended families. This was the result of investigation done in 2005 and is believed to be only a fraction of the money looted out of Ethiopia. Zenawi and Co. need to give this money back before asking IMF to sell gold reserves.
Name ……………… Amount in US dollar ……… Bank and place
Meles Zenawi………………41 Million ………………Bank of Malaysia, Malaysia
Abadi Zemu ……………… 22 Million………………Swiss Bank, Switzerland
Sibhat Nega ……………… 29 Million……………… Deutsche Bank, Germany
Tefera Walwa …………….. 9 Million………………Bank of Canada, Canada
Amb. Birhane G/Kirstos …..19 Million………………New York City Bank, USA
Adisu Legesse ………… 14 Million……………… New York City Bank, USA
Arkebe Equbay………… 29 Million……………… Bank of Malaysia, Malaysia
Genet Zewdie ………………6 Million……………… New York City Bank, USA
Prof. Indrias Eshete ……7 Million……………… New York City Bank, USA
Shimelis Kifle …………… 12 Million……………… Bank of Canada, Canada
Abay Tsehaye ………… 17 Million……………… Bank of Malaysia, Malaysia
Amb. Mohamod Duri ……4 Million……………… New York City Bank, USA
Dr. Maru Yirdaw …………11 Million……………… Deutsche Bank, Germany
Bereket Simon ……………10 Million ……………… Deutsche Bank, Germany
According to 2006 news report by http://www.independent.co.uk/ titled “Third World cash exodus ‘points to laundering’”, dictators are busy looting money out of Africa.
Please follow the link here to find out more –
Third World cash exodus ‘points to laundering’
