From Africa Recovery, Vol.16#1, April 2002, page 32

CONFLICT DIAMONDS
'Breakthrough' in global regulation

At an 18-20 March meeting in Canada, representatives of the world's leading diamond exporting and importing states took a major step toward regulating the international trade in diamonds, specifically to stem the flow of gems from war zones in Africa. The Ottawa meeting -- involving governments, businesses and non-governmental organizations (NGOs) from more than 37 countries -- is the latest in a series of negotiations begun in Kimberley, South Africa, in 2000. The "Kimberley process," as it is known, aims to set minimum standards for trade in uncut diamonds, some of which finance conflicts.

The Ottawa meeting was described as a "breakthrough" by the chair of the Kimberley process, Mr. Abbey Chikane. It requires countries to establish "effective national controls" to prevent the shipment of "conflict diamonds" by the end of 2002. These include use of certificates of origin and tamper-proof containers for shipment, exchange of information on trade in uncut diamonds and legislation to enforce the agreement. The scheme will support existing UN sanctions on conflict diamonds and seek to protect the legitimate diamond producers from consumer boycotts.

Although NGOs broadly endorsed the Ottawa agreement, Ms. Susan Isaac of Partnership Africa Canada, an NGO umbrella group, noted that "civil society groups are not satisfied with provisions for monitoring and enforcement." For instance, she said, a monitoring team can only be sent to a country if significant evidence of non-compliance is provided. Also, all member countries, including those being monitored, must consent to the mission. Critics of the Kimberley process say it subjects many activities to recommendations rather than mandatory controls.

"Stepping back from the tension and debates, NGOs can be very proud of what has been accomplished -- with obvious caveats," noted a joint statement by NGOs. "Two years ago, the kind of agreement that now exists would have seemed inconceivable."

ECONOMIC GROWTH
African economies hold steady

Despite the delayed recovery in industrial economies following last year's global economic slowdown, sub-Saharan Africa's economic performance in 2002 is expected to hold steady at 2.6 per cent, the World Bank reports. This is significantly above the industrialized world's meagre 0.8 per cent growth rate, but below the 3.2 per cent average for all developing countries. It is also down from the 3.1 per cent recorded for sub-Saharan Africa in 2000, reports the Bank's annual Global Development Finance 2002, released on 13 March.

Merchandise exports are expected to grow by only 2 per cent this year, compared with 7.5 per cent in 2000. In part, this is because world commodity prices declined during 2001, falling especially sharply after the September 11 terrorist attacks on the US. While slow growth was widespread, nearly a third of sub-Saharan African countries achieved somewhat faster growth last year, including Angola, Chad, Ethiopia, Madagascar, Mozambique and Uganda.

Demand for tourism and other service exports is expected to remain depressed due to heightened security concerns and the weak outlook for the European economy. Civil strife and poor governance also contribute to weak economic performance, the report says. "Near-term prospects are especially bleak in Southern Africa because of political uncertainty in Zimbabwe," the report notes.

The report, which tracks financial flows in and out of developing countries, notes that total official development assistance worldwide declined from $39.5 bn to $37.5 bn last year, with provisional estimates showing a proportional decline in flows to sub-Saharan Africa.

SOUTHERN AFRICA
Food shortages loom

The UN World Food Programme (WFP) warns that millions of people in Southern Africa may face famine conditions in the months ahead, unless considerably more food aid arrives in the region. "Donor response to repeated WFP appeals has been sluggish," the agency noted at the end of March. "If we do not get enough food to feed 2.6 million people right now, what will happen when potentially millions more need our help in the months ahead?" asked Ms. Judith Lewis, WFP regional director for East and Southern Africa.

The WFP says $70 mn is required to buy 146,000 metric tonnes of food to ward off severe hunger in Lesotho, Malawi, Mozambique, Zambia and Zimbabwe. Preliminary forecasts for the April/May harvests indicate another year of low maize production, following last year's poor harvest. In Zimbabwe, normally a food surplus country, erratic rains, an economic downturn and disruption of the farming sector due to land conflicts mean the country has to import more than 1 million tonnes of maize. The expected surpluses in neighbouring South Africa will be insufficient to meet that need. Only 30 per cent of the $60 mn WFP has requested for Zimbabwe has so far been contributed.

Appointments Secretary-General Kofi Annan has appointed Mr. Tuliameni Kalomoh (left) of Namibia as the UN's new Assistant Secretary-General for Political Affairs. Mr. Kalomoh has served in the Foreign Ministry of Namibia since the country gained independence in 1990, and was Deputy Minister for Foreign Affairs at the time of his UN appointment. He replaces Mr. Ibrahim Fall, who is leaving UN headquarters to head the UN office in Senegal. Mr. Anwarul Karim Chowdhury (right) has been named by the UN Secretary-General as the High Representative for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, a new position within the UN system. As Bangladesh's permanent representative to the UN, Mr. Chowdhury previously served as president of the UN Security Council, and also led the negotiations for least developed countries (LDCs) during the May 2001 UN conference on LDCs in Brussels. Mr. James Morris, a US citizen, is the new Executive Director of the World Food Programme. He was previously head of a major US charitable foundation, the Lilly Endowment, as well as chairman and chief executive officer of the parent company of the Indianapolis Water Company. He succeeds Ms. Catherine Bertini, the first US national to head the Rome-based programme. The Managing Director of the International Monetary Fund recently appointed Mr. Abdoulaye Bio Tchane of Benin as director of the IMF's African Department. He previously served as an economist at the Central Bank of West African States, and at the time of his IMF appointment was Benin's minister of finance.

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