United Nations Radio

Over half of Africa's population is still living under a dollar a day.

Supachai Panitchpakdi

The global economic crisis has further weakened African economies already suffering from poverty and political instability. In their report on Africa, Supachai Panitchpakdi, Secretary General of the United Nations Conference on Trade and Development argues that a closer collaboration between African countries is the key if these economies are to survive. He spoke to UN Radio's Jean Pierre Ramazani.

SUPACHAI: Regional integration is deemed to be important for Africa for several reasons one reason is that it would help for Africa to diversify their production base another one is to help create the economical skills for African economies to be attractive for foreign investment and also to develop competitiveness. Regional integration could also help Africa to join together in investing in large public projects like in water management, in infrastructure projects.

RAMAZANI: What is the level of exchanges of goods in Africa nowadays?

SUPACHAI: At the moment it about nine to ten percent at the total export of Africa. If we compared this with let say Asia it will be cross forty five percent and Europe its more than seventy percent. Even in Latin America it will be cross twenty percent. So in Africa the size of intra Africa trade is really raised more and that can be enhanced and that can give the push to the domestic demand of the moment and help the growth rate in Africa at the time that the global trade volume is shrinking.

RAMAZANI: What is the impact of these international economic crises on Africa nowadays?

SUPACHAI: Well of course Africa will not go into negative growth but growth in Africa will drop from 5 % to 6 or may be below 3 or may be 2%. Africa will of course, have to adjust itself to the drop in export demand- particularly commodity prices that are now dropping so heavily. For migrant workers in Africa there will be a drop in remittances, it might drop by 20%. And also the objective of the millennium development goals MDG which has been achieved in certain area in Africa like in poverty reduction in some countries in terms of education, water management, this will be under threat. There will less achievement in some of the areas of MDG. This will be affects coming to Africa from the global economy crises.

RAMAZANI: What will be the emphasis that you will make in today's world meeting on the crisis?

SUPACHAI: Well, there will be a few things. First I think, the key is to maintain the level of development assistance into Africa particularly to the LDCs. The second thing is the need to be looking at the debt sustainability issues of Africa because this is the time that African countries may need to borrow At the moment we have to draw the attention to the need for countries to be looking at the debt sustainability of Africa and to be looking at how to restructure debt in Africa. The third one is for trade to be maintained and for trade round to be completed.

PRES: Supachai Panitchpakdi, Secretary General of the United Nations Conference on Trade and Development talking to UN Radio's Jean-Pierre Ramazani.

(duration: 3'12")