Subsidies


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Subsidies Can't Help Africa, Says Annan

 

Secretary-General of the United Nations, Mr. Kofi Annan has reiterated the need for developed countries to put an end to the subsidies and tariffs regime, which incapacitates African countries from competing fairly in international markets.

 

"I call again for an end to the subsidies and tariffs that are stifling the ability of poor countries to compete fairly in the international trading system and trade their way out of poverty, " he said yesterday in his message on the occasion of the 2003 Africa Industrialisation Day. The theme of the celebration is "Acceleration of Africa's Integration in the Global Economy through Effective Industrialization and Market Access."

 

Annan whose message was read by the Representative of United Nation Industrial Development Organisation (UNIDO) in Nigeria, Dr. David Tommy described international trade as a key companion of industrialisation and a source of industrial growth, which helps to expand a country's trading prowess.

 

He expressed the need for African countries to diversify from "long-standing trade patterns" by which they have relied excessively on export of raw materials and semi-processed goods as well as the comparative advantages of raw materials and unskilled labour. Instead, he suggested a greater emphasis on "higher-valued-added" products and specialization for better rewards. But he pointed out that market access is critical for the success of such an approach.

 

The UN scribe urged governments to help nurture comparative advantages through the creation of enabling environment for business and industry.

 

He said they could do this by "improving infrastructure, upgrading technologies, reducing transaction costs, strengthening governance and building up a skilled and educated workforce."

 

According to him, "the mobilization of skills, people, technology, and knowledge is not automatic, it requires carefully crafted policies and systematic support, domestic and international."

 

However, in his address, Minister of Industry, Ambassador Magaji Muhammed disclosed that his ministry has solicited the assistance of UNIDO to help solve the problem of inadequate supply of electricity.

 

The problem of inadequate supply of electricity, he said, has been the bane of manufacturing concern in the country.

 

He revealed that UNIDO is presently working out modalities for a comprehensive interventionist scheme primarily, through the establishment of several mini-hydro projects or the rehabilitation of the giant hydro projects already existing.

 

 

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