tv Inside Story Al Jazeera January 1, 2021 8:30pm-9:01pm +03
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because we're have been excluded from the constitution since not 101 and 2 minor amendments in 969 we exist as an absence from the constitution so we've never being quoted and one word giant in the national anthem is not right it might get let's. start right genocide on. our absence from the constitution now artists in the gaza strip using graffiti in nurul to encourage people to take precautions against coronavirus it's hope there are told raise awareness about the need to wear masks and maintain social distance the gaza strip is experiencing a rise in infections however with no news on when vaccinations will start people are trying to stay positive for the new year.
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and most take you through some of the headlines here in al-jazeera now britain's departure from the e.u. single market and customs union has been fairly smooth so far there have been no major delays in the cross-channel movement of trucks and ferries to and from france not even barbara has the latest from london in the short term everyone's asking what it will mean for businesses no government a government survey recently suggested that more than half of small businesses in the u.k. were not fully prepared for the end of the freedom of movement of goods and services the deal covers only goods 20 percent of u.k. economy not services which is the vast majority so i think the months to come will really be revealing for many business owners across the u.k. . the u.k. could bring emergency hospitals into uses a more infectious strain of corona virus puts pressure on the health system many
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hospitals are now dealing with more patients than they were than there were at the peak of the outbreak in april 3 quarters of england is in the strictest tier of lockdown health experts in india are deciding on the safety of the oxford astra zeneca coronavirus vaccine report suggests it's close to being approved for emergency use india has recorded more than 10000000 cases so far with nearly 149000 deaths 33 african nations are now trading as one of the world's largest single markets a free trade deal that has just come into effect will see tariffs eliminated on 90 percent of goods within the block the world bank says it will lift millions of people out of poverty it's inside story in our stay with us here on out is iraq.
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open for business one of the world's biggest free trade this is now come into effect in africa but many all through the continent lacks proper infrastructure to implement the agreement so is africa ready for the free movement of goods and people this is inside story. hello and welcome to the program i'm peter a new year and a new start for africa the world's largest single market has now opened enabling all but one of the 54 nations to begin trading the african continental free trade
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area is a landmark deal bringing together the continent's multi-trillion dollar economy into one bloc it's the culmination of years of work that go see a sions and delays and while only $33.00 of the signatories support the deal into effect it's already being heralded as a turning point for africa's economic future committed wrist reports. workers at this garment factory rushed to deliver selfies masks the owner says more than 2 and a half 1000000. to control the spread of. but as the africa free trade agreement comes into effect he foresees trouble ahead for the continent's poor countries. small and poor economies will always be at a disadvantage hopefully as time goes on we can get special considerations otherwise it will be difficult to compete. businesses in poor countries may have their concerns but overall experts say the agreement will eventually benefit them
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they believe the cheap cost of labor in these countries will attract more industries. into african trade. development the level of industrialization. of others but african countries need to. unfinished among themselves. currently imports most of its needs from water to food and machinery from big retail to. flooded with imported products because. the country will continue to depend on him. to grow. experts say it's hard to see european and asian multinational companies giving up the trade advantage they've africa forcing. africa's largest economies in the shelves at the emmys biggest retailer.
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preferred these brands traders say they won't be many local goods on store shelves and government steps in. we should be given support government should facilitate acquisition of land and loans from banks. but it's hard to see how governments on the continent can do. that without breaching the protectionism rules of africa trade agreement and the world trade organization maybe greece al-jazeera yemi. now we have a panel of experts standing by but 1st let's break down the numbers behind the deal well under the agreement terrorists will be eliminated on 90 percent of goods that means in a market of one point $3000000000.00 people with a combined g.d.p. of $2.00 trillion dollars trading will be nearly duty free the world bank says that will increase the continent's income by $450000000000.00 in the next 15 years the bank also says africa's exports mostly in manufacturing will get
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a $560000000000.00 boost and the agreement will raise wages especially for women who account for more than 70 percent of cross border traders and the free trade agreement promises to lift $30000000.00 africans out of extreme poverty. ok let's bring in our panel today in nairobi we have david weir oh he's the founder of the africa development think tank in london we have paul mellie he's a consulting fellow at chatham house and in johannesburg we have the economist shanti pai he's a columnist a business day and the financial mail gentlemen welcome to you all david in nairobi can i come to you 1st for the countries have signed up to this what does this in theory mean for them well on the one hand you've got a big opportunity not only to borstar us into african exports and imports but as well as an opportunity to achieve your economic development goals of influence for
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the reason that most of what is treated within africa is actually originated from africa and saw these tend to be africa's value add in manufacturing sectors and so there's a huge potential for 'd not only creating greater primitive what unities but also increasing incomes as you are you specialize and you generate. a greater value of your value to poor 1000000 london lots of people are saying look this means good or better infrastructure but for some of the signatory countries they don't have an infrastructure to speak of to start with anyway. no that's certainly true particularly in the central african region i think it's really striking when you look at the map the west africa is relatively integrated east and africa has quite her degree of integration the same for southern africa but then right in the center of the continent is that huge or congo basin region where the
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development of long distance roads is only really getting underway now linking the member countries for example of the central african bloc and where there are very few rail connections and so the movement of goods from one part of the continent to another won't be quite as straightforward and so i suspect that at the start of this process we're really going to say perhaps a bit of an acceleration of integration and trading growth within the existing regions that were ready more integrated so in east west and south but that in the center of the continent it will take longer for those countries to really begin to reap the benefits because their infrastructure is something in some supply in johannesburg this also should mean a lot of external investment there is already in certain of the african countries
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a lot of external investment to the point of economic critics of certain external countries might say there's too much because if you've got so much money being poured into an economy it can skew the economy and if that country is in in effect in debt to trillions of us dollars the economy is not coming back in the way it's going out the way to the country that's doing the investing and that's those that issue and i think it's that it also in particular that actually also does not was that there was the fusion of these economies and so you actually find that you know you only have them. an agricultural economy and that actually makes it very difficult then to create to get the kinds of gains that you want to actually get from a much more industrialized exporting kind of country because obviously that if you're focused in particular areas and if we don't for the develop the skills if you think about the central african region this particular way there's a lot of mining and of course like a culture that that's the primary in terms of the wheat has been developed and it
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does not grow into actually being able to be actually much more advanced so that you can actually you know at the value and then export into the rest of the continent and actually have then there are other industries that can spring out of that and i think one of the things that we really have to focus on is exactly that and i think one of the interesting things about that of course is that while we are actually talking about that investment that has been coming in and i think this is something that people have complained about if you look at china is that we have investment that is also followed by labor of these kinds of skills that are actually coming together that developing local skills because we don't just want you know the movement of goods but it has to be also the creation of skills creation of jobs and upliftment of you know people's basic incomes and so this has to actually be something that has been has to be paid extra attention to in terms of but i think that is one of the key things that we have to be actually develop and i suspect that that has been is being developed up the secretariat is going to be quite central in actually trying to make sure that those things happen but we
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know that this investment has been a problem particularly for the african union where even funding african union programs has been very difficult from in 1st issues of infrastructure to keeping all of these things have been problematic and one actually has to focus on those things otherwise they're actually going to continue along the same path. in nairobi there is also surely on the part of the people who are driving this there is an economic assumption that the fundamentals of every country are basically sound but they are not you know does that explain say for example why nigeria wasn't particularly. keen on this idea of a free trading zone encompassing all of the african countries because the reality is 56 months ago on the show we were discussing how nigeria was heading towards bankruptcy and it needed to borrow money from people not in africa yes certainly. it warrants for and only send. keen observers of these affairs in
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africa to also think about the political implications that you know the continental featured brings about with them and certainly the hesitance that we saw from nigeria perhaps provide insight to that i know there was a lot of debate and discussion around you know their. small economies and the action to which they would lose out particularly if you look at west africa where nigeria you know sort of dominates those economies there and actually is a key partner to almost all the west african. a large majority of the west african states you would see that you know there are certainly. creation and today russian effects that would is out you know in an open continental wide trading arrangement but certainly i think to the broader question you know the aspect or the whole
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ambition behind the course that affected area really lies in the motive of raising or how own eyes in rather the process customs foresee does and the addressing that trade barriers that have existed on the continent much as we have indeed you know very different configurations and very unique economies there is an argument to be made that you know chip barriers are often. the story in the way of not only trading but also achieving the. make development that individual countries are spared and so we should take these as just one of the mechanisms by which our economies can actually provide a way out for their economies. to scale that development ladder suddenly come idea. how can we achieve a situation where we have that harmonization there that we're hearing about as
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a go to requirement if and this is happening as we speak there are certain borders that are closed because of conflicts slash and or corruption between different countries governments there are not wars going on across africa but there are conflicts going on all over africa and i think this has been a fundamental problem because i think obviously you know the whole idea that 20 percent of the guns is also i guess to try and actually move towards development but i think you know one of the interesting things actually as we have been talking about conflicts that you know this invisible war against poverty that has also highlighted some of the problems that we continue to face just a few days ago here you know in the foot of it in south africa and zimbabwe we you know we had a big major problems actually of people passing through in groups passing through because obviously of the kinds of limitations that were put there in terms of
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people passing through and between the 2 governments it became impossible to save people's lives the entire globe has died on that board and that tells us something about how it is that we are actually going to be able to actually think about you know how to actually manage crisis between you know with countries and then of course the idea that we actually want to be able to create the kind of suit environment that will allow us because of you know is that only you know their economies could not be met with you know you wanted the kind of testing you know that the easy stimulus kind of discussion and actually planning that is necessary to be done by 2 countries that are realty of lee have had long treated. mission you find that a crisis like covered not in as actually created the just situation in which actually goods and people could not move to that area and these are things that actually have to be expected and actually planned for because if we don't do that then actually we're going to find that actually then you know when that we're down trust of the investor really don't want to obviously bring investments to actually
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invest in this country the only thing countries where you can develop at the sector and then the treaties of the law how things because actually they kind of work that's a mystery but we have been a zombie then and i think it's been very disappointing given they've had it with that should've been done a long time ago if we actually are serious about the kind of trade that we want to do especially when there is already a substrate leashes. cornélie in london there's a lot of that coming down to being serious of a cold succumbed to political will because the reality is that an awful lot of african countries that we could talk about are less industrialized today than they were during the 1970 s. quite a few have lost in the street but in a sense that's that's partly because of the evolution of the global economy. towards a more high tech basis and away from some of the old heavy industries that were experimenting with in africa or in the immediate period after independence in a few countries but on the whole the technological evolution of the world economy
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has actually helped africa if one thinks of the mobile phone sector for example many countries never really developed a very strong. fixed line network but with the mobile telecoms and all its associated with it and fiber optic and so on the whole process has leapt forward hugely and now you've there are countries where you can be quite remote rural areas and yet have 4 g. access and then that facilitates. new economic activities new forms of business and trading but i think another key point is just this question of simplifying and reducing the administrative hassles and bureaucratic burdens that you find borders because every country. not just in africa or any country in the world obviously there's domestic political pressure if you like to look after
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domestic interests and that can sometimes foster the development of barriers at borders but when those barriers are able to be reduced through administrative reform and through cross border negotiation then it makes it easier to encourage not. just more trade more high quality trade and we can see this for example in west africa and there we're now beginning to see plans for the revival of car assembly plants probably garner in nigeria and because the borders the trade barriers are going to be reduced at the borders what are being reduced it's possible to develop car plants that will be serving the west african region as a whole and similarly in west africa the region grows a lot of cotton and most people wear cotton clothes and yet at the moment the
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textile industry is very thin and struggles to compete against chinese competition but we beginning to see one or 2 pointers to new investment in modern textile plants that can be internationally competitive so that west africans can grow the cotton that is then transformed locally into clothes for the local market david i mean if we're talking about anything or areas of industry as diverse as car manufacturing and also the cotton industry on the plus side i guess that means people have jobs but on the negative side is there potential here for the financial benefits to be generated in africa but to flow out of the african countries that are already taking steps in that direction because that's why for example post the brics it u.k. government trade ministers are already talking to some of the african countries because they're thinking we can access lower labor cost markets that in theory are
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built on lots of movement of industry infrastructure and people and the reality of dealing with those companies in that environment might be completely different to what it should be on paper yes you'd be going to head out again. as you know myself and colleagues and also what you've just. provided now provides a context to the larger picture that really you know occurred regulation a trade trading framework really is not the end all be all of you know addressing all our key economic challenges. and so the example that you give that you know it's even if we do have this setting framework in place it still doesn't address the greater challenges that are posed. or brought about by the existing financial architecture of the globe that we have right now on the reality is that africa is
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indeed losing a lot. you know some studies are distributed of the funded 1000000000 annually us dollars that africa loses just because of the way the financial architecture is and so that's not to say that we now don't implement. appropriate to policies that could result in economic development for our countries but really the question is can we put this can we as we address the trick questions also address other related . significant policies that should be implemented or to be implemented in concert with this set us to do with how articulations that govern the financial actually texture. that impacts africa you know other key question and also the other aspects that relate to issues of you know inclusiveness in terms of a kind of employment opportunities for women for youth and so forth that you ought
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to come about and so these are all questions that are important that we shouldn't forget and and that's why coming together from my own you know continental perspective is important because not only will we be able to put in place our trade policy but also strategize and. problem is our sector policy ought to be implemented in concert with that it policy ok he got what he had eve we cannot be implementing infrastructure approach programs that incoherent even within africa that regions so they example is ok shanti pie in johannesburg is it possible within this free trade agreement or free trade zone as it is as of today to codify what david we are nairobi is talking about there to codify that women get proper representation in the workplace that they get paid the same as the equivalent men that the crucial employment category in 20 comes to age unlike the 18 to 34 year
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olds there in the proper jobs especially given that some analysts are already calling this empire too because all those colonial powers that gave countries back literally after the 2nd world war and then walked away 80 percent walked away some of those colonial powers undoubtedly the french for example will be looking in and going oh well maybe we can start building rhinos and sutro ends in west africa as the nigerian economy pivots from oil and gas towards something else and that's absolutely true and i think one of the things that is absolutely going to guard against i think one of the interesting things is that also i mean you know we mentioned some of the negative things one of the things that you see of the good of time is that of course you know this idea of comparative advantage of low key areas that you have to look at we know for example that africa if it's still in the school system is there if you put up with a majority but we know that you know there are many other countries on the continent that have been very good in education in literacy mathematics and they
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have but then have not had the industry into the industry are very good of time and i don't think that one of the things learning can do is of course is to transfer some of that so we as american companies became transfer some of that industrial products into you know for example into the central african region where we know there's been a lot of you know that for education you know it's all gone. because then of be vacation and one of those things that we can meet them together nicely a lot of opportunities we're actually you know in the agricultural system is a love that's been very successful that's been very industrialized how do we actually turns there's some of that's good so one of the things we have to absolutely do is actually make sure that these transfers actually have been a date and that he was there that we could actually build on the technology and build on the industry actually and also use some of this already see that kind of skills development that has really happened in the continent and i think one of the things that of course one has got to give that the idea of i guess what people call the 2nd scramble for africa and then actually use some of that investment i don't
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think that it is now possible to actually develop into the clinton it without of course an extent of funding but one has to then say within this environment how do you actually say that you're not going to relax morton's last word to pull very briefly paul we've got 60 seconds for you to answer this question how and when do we know that this has been a success given that especially the continent of africa has 17 percent of the global workforce but it only produces 3 percent of the global g.d.p. i think we'll know if it is becoming a success if little by little we see that ratio beginning to shift because africa starts providing value added i me to take issue with your point about relevance a train coming in at the moment the point is the regulars the citron the folks bargains they're coming in toyotas they're all coming in anyway if you stand on the key side in any west african port you can see the car carrying ships importing all
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these vehicles it's not that nobody has cars and wouldn't it be better if some of those cars are at least assembled in the west african region and therefore employing people and with appropriate skills training and it building up the value added i mean why should or could you were all gone. always only produce cocoa why can't they produce chocolate you can apply that in sectors all over the continent so the real test will be if we start to see the value added rising so that africa's share of g.d.p. starts to relate a bit more to its population that means that people's living standards their jobs the range of skills that they can take up and use is gradually on the rise i think that's the indicator to watch ok gentlemen we'll have to leave it there thank you to our guests today they were able to we're opal melly and shanti pai and thank you to you for watching you can see the show again any time here the web site
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al-jazeera dot com and for more discussion go to our facebook page that's facebook dot com forward slash story can also track us on twitter at a.j. inside story for me peter they'll be on the team thanks for watching we will see you very soon for the moment but i. discovered kazakstan that as a new strategic location at the crossroads of europe and asia. develop and grow your business. in the leading logistics trade business and invest in a country with a great business climate robust legal system tax regime and advantageous investment incentives employ a well educated highly skilled and multi-lingual workforce. by investing in
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storytelling around the biggest issues we've done but have to do you should do it again. this is al-jazeera. hello i'm sami say and this is the news out live from doha coming up in the next 60 minutes a devastating toll corona virus infections in the u.s. cost 20000000000 thanking up almost a quarter of the world's cope with 19 cases traffic between britain and europe appears to be flowing smoothly as the u.k. formally complete 6 exit from the block. one of the world's largest free trade agreements officially begins across the.
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