/ 2 February 2005

Big push to woo US to Africa plan

Britain will warn the United States this weekend that the fight against terror will be hampered by poverty in Africa as the government launches a concerted diplomatic effort to secure President George Bush’s support for more generous debt relief and a doubling of aid.

The British Chancellor, Gordon Brown, will join the Foreign Secretary, Jack Straw, at talks with the new US Secretary of State, Condoleezza Rice, on Friday at which the two Cabinet ministers will stress the security benefits to the US of backing Britain’s proposals for development in the world’s poorest continent.

James Wolfensohn, president of the World Bank, on Tuesday night backed Britain’s plan for Africa but warned that rising defence spending, a growing budget deficit and an obstructive Congress would pose severe obstacles to winning Washington’s backing.

In an interview with The Guardian, Wolfensohn said the West should not underestimate the impact of the growing global gulf between rich and poor.

”My hope is there is a recognition now on behalf of the rich world that they cannot continue to be rich if the world is destabilised by poverty,” he said.

Wolfensohn’s message will be taken up by the prime minister, the chancellor and the foreign secretary over the coming days as Britain prepares to host a meeting of G7 finance ministers on Friday and Saturday.

Tony Blair intends to put pressure on Bush to support the UK initiative, while the chancellor will lobby the US Treasury Secretary, John Snow, in addition to meeting Rice.

Brown told The Guardian yesterday: ”We will be trying to persuade America that debt relief and extra finance for development is in its interests not just because it is good economics and social policy but good for its security as well.”

With global security a priority for Bush in his second term, Britain believes there is a good chance that Washington will back a modern version of the Marshall Plan, which provided aid to postwar Europe as a bulwark against communism.

”If the US wants to separate the extremists from those that they are trying to influence, it makes good sense to show how industrial nations can implement a Marshall Plan for developing countries,” the chancellor said.

”US interests point to the wisdom of the international finance facility and debt relief that will show that rich countries believe that globalisation should be about social justice on a global scale.”

Britain has secured the backing of the three other European members of the G7 — Germany, France and Italy — for its international finance facility, a scheme to double annual aid flows to $100-billion (about £53-billion) by selling bonds on the world’s capital markets. Ministers recognise, however, that the support of the world’s biggest economy and only superpower will be vital.

”There is a sense of momentum,” Brown said. ”We are winning support. Now is the time to take the next step forward. We are making a major push this weekend. We are demanding action this weekend from the G7.”

The US has raised three objections to the UK blueprint. The first is that the idea of selling bonds on capital markets to double aid over the next 10 years is a non-starter because one Congress cannot limit the freedom of action of a future Congress. The second is that Congress would be unwilling, in any case, to vote more money. The third is that any financial help would not be wisely spent.

Brown believes that all three can be overcome, and that the mood on Capitol Hill, particularly among Republicans, is changing.

The world bank president said on Tuesday he was happy to help the UK in its diplomatic efforts.

”This is the moment we can help Africa”, he said. ”If Britain wants us to participate in the scheme, we would be delighted to help.”

Wolfensohn, who leaves the bank in May, called for a switch in spending from arms to aid. ”Military expenditure in the United States will top $500-billion this year, and I think not just the US, but the entire world is spending far too much on military expenditure and much too little on development.

”The issue for the world to define and for the US to define is what is the appropriate level of aid, and in the US at present the problem is there is a very considerable focus on other expenditures and on the deficit.”

Africa, he said, had no chance on current trends of hitting the United Nations mil lennium development goals for 2015, which include halving the number of people living on less than a dollar a day, cutting infant mortality by two thirds and putting every child in school.

Rich countries needed to keep their promises on aid and trade, while developing countries needed to keep their promises on governance and corruption.

”Both sides are needed, and if we could have both sides meeting their promises, we would have a significantly better chance of advancing Africa’s future, rather than seeing it slip backwards as now,” Wolfensohn said. – Guardian Unlimited Â