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America's effects to Africa and MDGs

posted on Wednesday, October 08, 2008 08:42 AM

Hello Comrades;

Glad to note that in Africa though we are worried but we havent yet been affected directly by the financial crisis in the United states of America.

However that has left us wondering and hoping that this will not trickle down here and affect alot of things including the soils , climate , foods and finally cash.

The problem that has brought all this can be discussed by us as wise brains and social entrepreneurs. and this is my point of vew;

1) Credit card culture;

This is something that is working well in america, but wat is this have to do with the financial crisis? people in America and Europe can purchase over and obove what they work for and can afford to pay for, in my understanding, customers might express the credit card rediness but its upto the banks and other financial intitutions to evaluate the credit card worthness which I think has been lacking and this has left people's accounts in debit so they have lived on and in credit all their lives. you can add more if you understand it more that I do.

2) The Motgage schmes;

When a financial institution has the motgage scheme for its clients, and its clients cannot pay for the motgage, then what this institution does is to bundle and package the unpaid motgages to another financial institution, without very good and clear guarantees. So if a client fails to pay for the motgage, then the institution takes over the house or any other machinery that it motgaged or if not the third party who took over the motgages will suffer and remember he (third party) might have borrowed from another bank, which will have interests and other such direct debits. So whoever is in the cycle will get caught in there and hence the fall.

3) Un-realistic speculations;

Agreements and serious business transanctions have been entered into on speulations on the stock exchange that are sometimes un-realistic. market forces od demand and supply have alot to play in the share value on the market. alot of things will change due to changes in the market forces, but people have gone ahead to sign agreements in organisations depending on "IF" whixh has left people's pressure high and collapsing in market.

4) Political Influence:

This cannot be overlooked, people can risk eonomies for political gain and tis will be regretable if it is. Lets wait for what will come out of the $700 billion bail out plan.

Effect To Africa:

It will have adverse effects to African Communities because many organisations are depending on American Donors, some of whom receive their monies from these financial markets and intititutions. The AGOA scheme, The American Aids program for Afria, The American Malaria and TB funding for African states and many more will have to sieze or cripple for this reason.

This in turn will affect negatively the health and environmental sectors of the economy and Africa will again go back years behind.

Interest Earned will reduce or sieze for African leaders who have invested the countries' funds on stock markets that seemed stable and also who have banked nearly 25% of the countries' monies in different fixed deposit accounts, this will be no more due to the problem and guess what will happen to the SME in the village.

Lets try and position ourselves for 2009 & 2010 because thats when we shall feel the effect.

Effect on the MDGs;

This can not also be overlooked because its Africa that implements the programs that will lead to the 8 mellinium Develpment Goals. So if w dont get there, then know that one of the governmets' sape goat or excuse will be tis financial donfall of American stock markets.



Humphrey Mutaasa

ACODE Foundation Inc

Making better African ommunities

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