Popular Struggles and the Future of Africa’s Economic Integration

1. Popular Struggles and the Future of Africa’s EconomicIntegration TWN-UNECA Colloquim on Africa’s Economic Integration: Internal Challenges and External Threats 6-8 May 2014, Accra, Ghana Carnita Ernest director@ccpau.org

2. The Future of Africa’s EconomicIntegration: A state without its peoples is like a car without its engineandthe more things change the more they stay the same.

3. Questions • Which popular struggles? • Reconnecting the economic with the political and the social? • What has changed? Has the global political economy and Africa’s position in that changed since the ‘60s? • What is the Africa agenda when citizens are seen as threats?

4. Socio-economic rights – images across the continent • A living wage for farm workers, mine workers; land rights and food sovereignty – SA; Southern Africa

5. Fuel prices – Uganda

6. Key issues of struggle • Land • Food security/sovereignty • Water • Health • Education • Mining and other natural resources/extractives

7. WTO Meeting: Final outcome! For the Future

8. Why are we still talking integration? • We’ve nationalised our issues and struggles. • Does any political party incorporate as a core issue of their agenda the issue of regional integration • Rise in xenophobia – fears of the electorate • How do we re-ignite the PanAfricanist agenda --- which was not just about Africa but about the South in order to challenge hegemons • Our issues are itemised. We’ve lost the integrated analysis. Even within specific sectors we have become very minimalist in our agenda and work. • WE REQUIRE DEPTH with BREATH • Is the basis for integration violence – structural and physical? Given the inequalities within and between our systems how do we achieve integration without/or with limited violence.

9. Sitting at the Centre – what are the issues • MDGs and Post 2015; Sustainable Development Goals • Governance and Human Rights • International Justice --- As Africa we held an EOS which dealt with ICC • AGA - better coordination and coherence • Corruption • Peace and Security • Conflict intervention; increase in peacekeeping • Requires in itself regional approaches • Free Movement --- by 2015???!!! • Business and capital as allies --- why have we not moved further then? Most bilateral agreements have included business yet the most basic item – visa – have not been removed. • Trade and Agriculture; Infrastructure and Pharmaceuticals • Financing AU and Africa’s Development --- sitting on proposals since 2006 • Proliferation of instruments and structures; Speeches and no action

10. The Economic Agenda has become technicistSTCs • EPAs: West Africa, Southern Africa. Connecting the local to the capitals to the regional. As Africa we willingly disconnect the head from the rest of the body. • Structural Transformation is about changing the structures of power. And power never concedes willingly. • Structural Transformation cannot just be about agriculture and industrialisation. Surely it is about the actors both size and identity? • What happened to the CS who were the technical supporters/challengers • The actors will need to be many. Organising. We need to simplify the issue.

11. When your citizen is your enemy • The evolution of Agenda 2063 and the role of the state. Developmental State; What macroeconomic agenda? • Are we reflecting on the role of citizens and independent voices in developmental societies. It’s not just about developmental states which once again puts the state at the centre • We see the need to contesting the space at every level: community involvement in development at local level; national level and restrictive laws against the critical actors; continental level • Reinserting citizens will require organising across issues and across sectors. Requires prioritisation; reconfiguration; solidarity • Are we able to see our issue within the bigger underlying question

12. Pan African Agenda/ Connecting the issues • Which are the strong states on our issues: Needs to understand the regional blocs as well as how these relate to continental agenda. Need to know what is progressive to support; and what we need to challenge • Organising citizens at the national level but with continental analysis and understanding • Citizens’ Agenda --- citizens’ conference • What are our key items of integration • Economic, Social, Political • Macroeconomic Frameworks, Trade and Development --- specific focus on EPAs and CTFA lessons? • Can we develop our own indices of integration? • Taking the issues to the globe as Africans (EU PFD)

13. ANALYSING AND FOLLOWING THE MONEY: AU BUDGET • Budget alignment with 2014-2017 Strategic Plan • Five Pillars • Peace & Security • Social, Economic & Human Development • Integration, Cooperation& Partnerships • Shared Values • Institutions, Capacity Building and Communication • Key Areas of Budget : Peace and Security; Agriculture (***but note that agriculture and energy was reduced from 2013 – Pass Through Funds in 2014) • Sitting in the EU Meeting in November 2013 I tweeted this: ‘Must be lots of money in energy, agriculture, infrastructure, water, and sanitation. I guess militarization in no longer PC to mention.’ • --- Following the money and intervening on it is crucial

14. AU BUDGET : OVERVIEW • TOTAL BUDGET APPROVED FOR 2014: US$ 395,223,186

15. OPERATIONAL & PROGRAMME BUDGETS • A key challenge remains the over dependence on Development Partners for Programme Funds (95%)

16. Resourcing Africa’s Development • AU’s own analysis that MS assessed contribution could remain stable for the 2010-2014 with average annual contribution of US$119.85 million. • However it is felt that at minimal this should be $200 million • “The African Union needs an adequate, predictable base of regular resources in order to fulfill its mandate and preserve African character in supporting member states in achieving their development goals.” (AUC Budget Document, May 2013)

17. AU Proposals on Alternative Financing • Appreciation that Funding the Integration Agenda will be a challenge. • Africa currently has 28 of the 36 Least Developed Countries (LDCs) • Africa only contributes only 2% of the Global Economy • Overdependence on the Big Five which contribute 66% of AU’s Assessed Budget • Transformation of the OAU to AU increased AU’s mandate. We moved from 3 organs to more than 14 Organs and Implementation Bodies and numerous Specialized Institutions. • However, there is a growing sense that Africa stands at the precipice positive change i.e. Natural Resources, African Renaissance, Agenda 2063

18. The 2006 Wade Proposals • Levies • Levies on Imports (0.2% charge on goods from outside Africa) • Levies on Insurance Policies (0.2% charge) • Levies on Air Travel ($2 for short haul and $5 for long haul flights) • Levies on Exports (0.5% on certain goods) • Hydrocarbon Levy (0.5% on hydrocarbon exports) • Community Levy: Charge on goods from outside AU member States • Tourism Tax: 0.5% on all touristic activities

19. The 2006 Wade Proposals (cont) • Private Sector Funding : Leasing of rights to the Private Sector to organize certain economic events • Sundry Income: Exhibitions, sale of publications, Concerts etc • NO decision on adoption of any of the proposals. Assembly requested more studies and reports on the implications of the proposals.

20. Obasanjo Proposals • Panel established in 2011 (This coincided with the North Africa Uprisings) • It reviewed previous Wade Proposals, abandoned earlier suggestions and decided on only 3 options: • $2 hospitality levy per stay in a hotel instead of tourism levy; • $ 5 cents levy per text message sent; • $5 travel levy on flight tickets originating from or coming to Africa from outside Africa

21. Where We Stand • The Obasanjo Panel finished its work close a year ago • It is estimated that these proposals could raise the AU’s Budget to $ 2 Billion a year • No decision has been made on these proposals • Current Advocacy: 4 key areas – ECOSOCC, PAP, Financing, Civil Society Space • #Financing Africa: “For sustainability, visibility, image and ownership Africans need to fund the African Agenda”

22. THANK YOU • Ms Carnita Ernest, CCPAU • director@ccpau.org