World Bank, Nigeria and the Partnership on Road Constructions

No nation is an island and no country can stand on its own without dependence but not a precarious dependence. Dependency must be based on shared trusts and benefits. The Nigerian government just like most African countries has continued to seek external supports in almost every aspect of its national activities. Borrowing and has become a norm even when the regime will not live to pay the massive debt.

The Federal Government of Nigeria called for more financial support from the World Bank to enable it develop more economically viable roads. The Minister of Works, Mike Onolememen pleaded for the assistance when speaking at a meeting with a delegation from the World Bank's Federal Road Development Programme.

Onolememen acknowledged the efforts of the bank in assisting the Federal Government to transform the country’s road sector. He solicited for more funding to enable government open more arterial roads. The minister told the visiting team that work would begin on the Akure-Ilesha road project before the end of October, adding that the government signed the contract a few weeks ago.

He gave an update on some of the road projects being financed by the World Bank in collaboration with the Federal Government. The World Bank Federal Road Development Project Team was led by Mohammed Essakali. The team paid a visit to the minister to give an update on a number of road projects being funded by the Federal Government and the World Bank, and supervised by the ministry.

Onolememen said that the road would be given the needed attention in view of its importance to the economy of the South-West states and the country as a whole. According to the minister, the administration of President Goodluck Jonathan has in the last three years invested heavily in road construction. Earlier, Essakali noted the improvement in the country’s road network, and urged the government to keep up the pace.

Earlier Nigerian President begged President Obama to help him develop Nigeria nay Africa. The country is almost tilting towards accepting the US covert control in counter-terrorism measures. Nigerians know their country is capable of standing without begging but the leaders prefer the begging style because it gives them more avenue to perform obnoxious magic with state finance.

The World Bank is not a charity organisation. It has a way of getting back whatever fund it releases. The hidden deal is always kept secret which obfuscates the reality of such financial support. Nigeria is rich enough not to beg for any external assistance on the large scale it does but the forces to keep it at the lowest rung of the ladder internally are mammoth and strong.

World Bank to help Congo Develop its Mining Sector

Sylvie Dosso Kouame, an official of the World Bank revealed that the World Bank is set to support the Republic of Congo in the development of the mining sector in an effort to diversify the economy. She stated: "It is an honour to have this opportunity to reaffirm the bank's willingness to support the Republic of Congo in its efforts to diversify its economy and manage its natural resources. The statement was made in Brazzaville at the opening of the first international conference on mines in Congo according to NAN.

"The government's decision to identify the mining sector as a priority sector is a very important one because the Republic of Congo can effectively become a major power in the mining industry both on the African and world stage and significantly stimulate the non-petroleum economy," she said. She spoke at a two-day conference organised by the Republic of Congo's Mines ministry in partnership with Ametrade Ltd., to bring together participants from Africa and elsewhere to promote opportunities in the Congolese mining sector.

She further opined that the eventual strategy of promoting the mining sector would contribute towards development and reduce poverty in the country. Kouame urged the Congolese government to revise its legal and taxation laws on the mining sector. According to her, this would help to consolidate the progress achieved since the coming into force of the mining code in 2005. The World Bank's official emphasise on the need for the state to have the necessary expertise when negotiating contracts with mining companies.

The World Bank has been accused of not being fair over the years when it comes to African matters. It has best served the interests of the foreign powers seeking to milk and suck Africa dry. The most worrisome and mind-boggling is that African leaders and policy-makers rush to those whose policies have not benefited any country on the continent beginning from the notorious structural adjustment programme of the 80s to the deregulation policy of the present era. Its policies have never suited Africa yet Africans kowtow to allow more.

Nigeria and South Africa lose out in Foreign Direct Investment in 2012

A United Nations report reveals that Foreign Direct Investment into the economies of the African Giants; Nigeria and South Africa plummeted despite the high record in Africa in 2012 which was among the two continents to witness such in the year. Year-on-year rise in FDI inflows was witnessed by South America; it which grew 12 percent, though flows to the Latin America and Caribbean region as a whole declined.

Reuters report that while global FDI fell by 18 percent last year, Africa bucked the trend with inflows increasing 5 percent to $50 billion, as countries like Mozambique, Tanzania and Uganda reaped the benefits of new discoveries of oil and gas, according to the 2013 World Investment Report published by the United Nations Conference on Trade and Development.

Although West Africa had the biggest share of investment, flows to the region declined by 5 percent to $16.8 billion largely due to decreased investment in the continent's top oil producer Nigeria. Its FDI inflows fell from $8.9 billion in 2011 to $7 billion last year due to political insecurity and a weak global economy, UNCTAD said.

FDI flows to South Africa slumped 24 percent to $4.6 billion in 2012, largely due to a foreign mining company offloading its stake in a South African subsidiary, the report said. The case of Nigeria is complex because it is fighting an insurgency in the north which is drastically affecting investors confidence.

However, inflows to Mozambique, where companies like Brazil's Vale and London-listed Rio Tinto are developing huge offshore gas and coal deposits, doubled to $5.2 billion. FDI to central Africa surged 23 percent to a record $10 billion, while in east Africa recently discovered gas reserves in Tanzania and oil fields in Uganda resulted in a 40 percent jump to $6.3 billion.

The report also found that African countries, led by South Africa and Angola are stepping up their investment overseas, with FDI outflows from the continent nearly tripling from $5 billion in 2011 to $14 billion last year.

G20 Leaders Pledge to Avoid Currency Wars

G20 Leaders Pledge to Avoid Currency Wars
By Alexander Bratersky

Leaders of the Group of 20 said Saturday that global economic growth remains weak despite government measures, but they agreed to avoid currency wars intended to stimulate the economy by devaluing their money.

A meeting of the group's finance ministers and central bankers was held in Moscow for the first time, due to Russia's current G20 presidency. The Manezh exhibition hall, a stone's throw away from the Kremlin, was the venue.

"We recognize that important risks remain and that global growth is still too weak, with unemployment remaining unacceptably high in many countries," read a joint communique published on the G20's official site Saturday.

The communique, signed by high-profile financial experts including former U.S. Federal Reserve Chairman Ben Bernanke, also called on countries to avoid "persistent exchange rate misalignments."

"We will refrain from competitive devaluation," the statement said.

Financial experts said the communique indirectly criticized Japan, which recently devalued the yen to encourage economic growth by keeping interest rates at almost zero.

French Finance Minister Pierre Moscovici told reporters Saturday that G20 members had agreed not to engage in currency wars.

The commitment is in line with the position of Russian Finance Minister Anton Siluanov, who has said exchange rates should be set by the market because Central Bank interference could lead to imbalances, Rossiiskaya Gazeta reported Saturday.

G20 leaders also said they had agreed to establish a joint study group with the World Bank, International Monetary Fund and United Nations to stimulate the financing of long-term investment.

The G20 is also seeking to increase governments' control over the global financial system.

"The pendulum has swung toward tougher financial regulation," Deputy Finance Minister Sergei Storchak said Saturday, Prime reported.

The G20 meeting in Moscow was seen as a milestone for Russia, which is nursing the idea of turning Moscow into a key financial center despite purportedly poor corporate governance.

"A clear and enforced rule of law will be important for Russian financial markets to reach their full potential," Lawrence Goodman, head of the Center for Financial Stability, a U.S.-based financial think tank, told the Moscow Times in an e-mail interview Friday.

"Russian participation in the G20 and inclusion in the BRIC category of nations helps deepen its local financial markets," said Goodman, a former adviser to the U.S. treasury secretary.

"Although the clustering of Brazil, Russia, India and China is somewhat artificial," he said, "the four nations maintain the potential to shape future growth outside the advanced economies."

WTO: In search of a Future

All things tremble in the world as American economy shakes. The latest is the World Trade Organisation, a third tier financial cum economic organisation backing the Brettonwood institutions. The organisation admitted China in 2001 and Russia in 2011. It has controlled the destiny of the economy of most countries especially developing ones mostly in Africa alongside the World Band and IMF. The organisation is now in search of a future. More.