Marshall Plan at G8 'unlikely'

2005-06-30 12:14

Pretoria - Group of Eight leaders meeting in Scotland next week are unlikely to agree on a "Marshall Plan" for Africa that will see massive aid flow to the continent, Finance Minister Trevor Manuel told AFP in an interview.

"On a larger support package - a kind of Marshall Plan for Africa - heads of states will say this action would be required now," Manuel said, referring to the plan agreed by western powers to rebuild Europe at the end of World War II.

"But I am afraid we are not going to see it this round," he said during the interview on Wednesday.

G8 leaders from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States are to decide the fate of a multi-billion-dollar plan to wipe out debt, open up trade and provide aid to Africa at their two-day summit beginning on Thursday.

Under the leadership of British Prime Minister Tony Blair as this year's chairperson of the G8 club of wealthy nations, Africa will be taking center stage at the summit with a plan for debt cancellation, trade benefits and an extra $25bn in aid per year by 2010.

"The state of Africa is a scar on the conscience of the world, but if the world as a community focused on it we could heal it," Blair said in a landmark address as he took up the G8 presidency last year.

A deal reached by finance ministers earlier this month to cancel $40bn in debt to 18 countries, most of them in Africa, is to get final approval at the G8 summit.

Manuel said there "were a series of good signals" coming from G8 governments on the need to lift barriers to African trade, in particular to tackle farm susbidies that have hit hard at several agricultural sectors in African countries.

But on the broader issue of aid, the finance minister said that while there were commitments from G8 countries to increase aid, these came with conditions that put the onus on African countries to improve good governance.

"We would like to see a reduction of the conditionality" for aid, said Manuel, adding, "We need to get better at how we use" development assistance.

Manuel cited as an example a program to provide mosquito nets in Zambia that fell flat after poor villagers decided to put them to better use to catch fish.

Manuel has been an enthusiastic member of Blair's Commission for Africa that drafted the aid plan, arguing that the time was ripe to help Africa and recognise its strides towards democracy and good governance.

"Ten years ago, there were far fewer democratic elections in Africa. It's there now," he said.

"There is a greater responsiveness. We want to see and will ensure that we can maximise peace efforts on the African continent. And that is an important change of scene."

On the economic front, Manuel also cited a changing landscape across the continent.

"In terms of macro-economic balances, inflation is down to all-time lows, budget deficits are down, growth is up, not only in oil-producing countries," he said.

"What you are seeing on the African continent now is unprecedented," said Manuel.

- AFP