Senegalese leader appeals for IFM Special Drawing Rights for Africa
Senegalese President Abdoulaye Wade on Tuesday proposed a modified system of the Special Drawing Rights (SDRs) allocated by the International Monetary Fund (IMF), to overcome the financial crisis which may wreck the efforts for African development.
The quota systems of IMF Special Drawing Rights is not democratic, it is unfair to be offset, because it is inconceivable to only loan countries regarding their wealth, President Wade said at the opening of the 44th Annual Meetings of the African Development Bank (AfDB) being held from 10 to 14 May in Dakar.
He proposed the creation by the IMF Special Drawing Rights for Africa during these meetings on the theme; “Africa and the financial crisis: an Agenda for Action”.
The Senegalese leader reckoned that the global financial downturn was only an aspect of the global governance crisis, and he therefore urged African countries to define a joint position for a comprehensive solution to deal with both issues.
“There is no financial solution to a financial solution”, Wade slammed, adding that the crises indeed spring from Europe, but they could find solutions in Africa which offers tremendous possibilities in terms of human and material resources.
The African continent can, he said, absorb the capital surplus from the financial speculations of the world stock markets.
He therefore urged business people to come and invest in Africa instead of gambling on stock markets or somewhere else”.
President Wade recalled that the current financial downturn began with a global monetary crisis with U.S banks offering additional premiums and the greenback value governing the world.
Speaking in the presence of the incumbent chairman of the West African Economic and Monetary Union (WAEMU), Blaise Compaore of Burkina Faso, the Senegalese leader also exhorted African countries to systematise the various means to get additional resources in a bid to deal with the financial crisis.
He therefore advocated the possibility for West African countries to establish a mutual guarantee which can enable them to mobilise funds fit for sub-regional integration infrastructure.
President Wade said with conviction that it was irrelevant to request developed countries to suppress the subsidies directed to farmers, and urged them instead to allocate subsidies to African countries.