His Excellency President Olusegun Obasanjo
 President of the Federal Republic of Nigeria
 At the Sixth Edition of Conference de Montreal
 Montreal May 14, 2000

It is indeed an honour and privilege to address this August gathering on a subject so real, so topical and so close to the hearts of all of us whom God in His infinite wisdom has placed on the continent of Africa - the cradle of humanity.

But let me first thank the people and Government of Canada whose invitation to a state visit has been largely responsible for my presence here today. My wife, my entourage, and myself have had a really wonderful time in the past four days here in a country that is highly regarded by the large majority of Nigerians. In the context of the theme for this conference, I personally believe that the future of Africa stands to gain a lot from Canada's image as a nation with a good heart, as demonstrated by her excellent record of genuine concern for the plight of less endowed nations.

We Africans may feel proud to note our continent as the cradle of humanity, however, the recent history of Africa makes it hard for us to claim that prize with confidence. How could we, when, as once remarked by the late Mwalimu Julius Nyerere of Tanzania, "Africa has suffered in the hands of foreigners like no other continent". What is more, most of that suffering was concentrated in the last two centuries, so much so that if we Africans could ordain it, we would strongly be tempted to erase these dehumanizing centuries from our memory, if only the for the sake of alleviating the pain and anguish associated with period.

But, Ladies and Gentlemen, we cannot and will not do that. We need the lessons of the past to inform and strengthen our resolve and determine to win back some of the losses, as we surely must do, if we are to survive.

Africa entered the last century with the hands of colonialism round its throat. The grip would tighten into a stranglehold that was maintained through two thirds of the twentieth century. During that period, Africans had no say in the way they were governed, nor did they have any say in the development and progress of their societies. Until the 1970's most Africans were subjected to governance of exploitation, designed to extract the maximum out of their continent for the sole benefit of those who could not care less about the destiny of African societies.

Ladies and Gentlemen, the losses directly attributable to the wholesale colonization of our continent are simply incalculable. First we lost through exploitation, namely illegitimate profit from the use of our human and natural resources. And the fight against colonialism cost us tens of thousands of lives, as well as draining our intellectual, human and material resources. Then, to top it all, when we thought we had regained control of our destiny, and when we believed that we had earned our rights to join the rest of the world as equal partners and discuss mutual cooperation on basis of equitability, we discovered that the position of our continent in the world order had been disadvantageously fixed and pre-determined by numerous factors which, for want of a better description, we call colonial legacies.

Distinguished Ladies and Gentlemen, none of the foregoing is aimed at blaming anyone for the plight of our continent, nor do Africans intend to seek refuge in the excuse that we have been innocent victims of world history. Nevertheless, it puts in perspective Africans' feeling that the one thing we all could genuinely celebrate about the last century was the final exit of colonialism, when majority rule was eventually established in South Africa.

All over the continent, we had fought hard for our political independence. The pain of injustice inherent in colonialism in any part and in any region was shared by all of us. And we are delighted that we are not carrying the colonial burden into the new century, indeed into the new millennium.

Africa's developmental balance sheet at the beginning of this century shows huge deficits that are accounted for by the following factors:

Demographic explosion

Rapid desertification

Frequent periodic droughts in economies that are excessively dependent on rain-fed agriculture

Lack of appropriate technological know-how and sustainable human development

Debt overhang and low level of domestic and foreign investment

The pervasiveness of conflicts and wars

Failure to archive any major breakthrough in regional cooperation and integration

Lopsided and inequitable nature of international trade regime.

Distinguished Ladies and Gentlemen, in Africa we are coming to grips with the reality that our uncertain journey into the new millennium will continue to be shaped by the profound forces of globalization and liberalization unleashed in the final years of the 20th century. As modern technology relentlessly drives the globalization of economic activities, market forces now determine the allocation of resources, and the State is fast becoming irrelevant in economic planning. Globalization has brought in its wake, new opportunities and challenges for all people in all countries. The consequent expansion of world trade and output, the acceleration of the mobility of factors of productions and seeming disappearance of national frontiers, have all together led to the emergence of a global village in which, it was assumed, all countries and people will prosper. However, our experience so far clearly indicates that globalization has brought mixed blessings. The prosperity it engenders is unevenly shared among countries and regions of the world. While the industrialized countries remain its major beneficiaries, hardly any African nation has been able to take advantage of the opportunities presented by this phenomenon. We have been consigned to the periphery of the global economy, which the risk of further marginalisation and possible de-linkage.

These adverse consequences of globalization have led us in Nigeria to conclude that a troubled relationship has emerged between globalization and the imperatives of development. This disturbing reality is more than amply demonstrated by the failure of globalization to spur economic recovery, faster growth, greater employment opportunities and poverty eradication. Rather, it has exhibited a tendency to accentuate the income and welfare gaps between the rich and the poor, among and within countries and regions. Never has the world witnessed such massive disparities in international economic and social activities. And nowhere is this trend more glaring than with African countries.

In the quest for a better management of a globalize world economy, it is incumbent on us to direct our searchlight on the unsatisfactory evolution of the multilateral trading system. The developing countries participated with enthusiasm and high expectations in the historic Uruguay Round of Multilateral Trade Negotiations that ushered in the new rules-based multilateral trading System (MTS) and the birth of the World Trade Organization (WTO). They had hoped that the new trading regime would enhance their trade fortune, and facilitate effective integration into the world economy, and arrest their marginalization from global trading system. In assuming commitments under the various Uruguay Round Agreements (URAs) our countries reaffirmed the primacy of a transparent, fair and equitable rules-based multilateral trading system, in recognition of the vital role of international trade in the process of economic development.

But unfortunately, the vast majority of developing countries, particularly in Africa, have so far been unable to reap the benefits arising from their membership of the WTO. The imbalance between rights and obligations of membership is reflected in the failure of the major trading nations to faithfully implement the development dimensions of the various WTO Agreements. Africa's trade prospects continue to be hampered by the non-implementation of the special and differential measures in favour of developing countries, and the increasing protectionist measures on their export products. Besides, the paucity of technical and financial assistance, that would have enabled us to take advantage of the limited market access opportunities that exists, which continues to deepen Africa's marginalization in the globalize world economy. Regrettably, the major trading nations are bent on advancing the process of globalization and liberalization by introducing, on the global trade agenda, new issues with additional obligations for developing countries.

Ladies and Gentlemen, It is sad to note that Africa, the least developed of all the regions and the least able to cope with external shocks, has been the principal victim of the dark side of globalization and liberalization of the world economy. The continent's continuing marginalization is increasingly defined by its low level of exports and decreasing share in world trade, during the past four decades. The consequence has been import compression, weak productivity and low output.

Similarly, Africa's share in the manufacturing value added has fallen to an all time low. Its share in total Foreign Direct Investment (FDI) inflows to developing countries, for instance, dropped significantly to less than five percent in the second half of the 1990s, and a meager 1.2 percent of world FDI flows in 1997. This trend has continued despite the efforts of African countries to implement far-reaching economic reforms and maintain macro-economic stability, particularly the introduction of a more open and business-friendly investment regime and the provision of incentives to attract foreign investment.

Agricultural performance and commodity export, upon which the African economy's overall growth depends, have even faired worse. The traditional internal structural difficulties, aggravated by external systemic constraints, have rendered African agriculture unable to respond to the opportunities presented by globalization and liberalization. As a result, low agricultural productivity and competitiveness, and the dramatic collapse of commodity prices, continue to dim the prospects of agriculture as a pillar of Africa's efforts at poverty alleviation and sustainable development.

The heavy external debt burden and large unsustainable debt service obligations of Africa countries constitute a major impediment to their quest for social and economic development. Debts undermine the capacity of our countries to make positive adjustments. They also create the greatest obstacle in our determined efforts to move our people out of poverty. It is clearly unacceptable that the external debt burden should continue to constrain our ability to channel public investment into physical and social infrastructures and human resources development. Furthermore, the debt burden continues to deter new foreign investments and erode the ability of our countries to participate meaningfully in a globalize world economy.

For us in the African region, the persisting external debt burden has a paralyzing effect on social and economic development, as illustrated by the following grim statistics:

By the end of 1998, total debt, as a percentage of GDP, reached 65.5 percent

The debt stock represented 303 percent of exports of goods and services in 1998.

Debt service, as a percentage of exports of goods and services, rose to 30.9 percent in 1998

Some countries spend up to 40 percent of their national budget on debt servicing

Accumulated arrears on interest and principal payments reached 64 billion US dollars in 1996, representing 27.4 percent of total debt

Two-thirds of the increase in total debt stock since 1988 has been due to arrears, and not new loans - Africa has indeed been making net negative transfers to creditors as interest payments exceed new lending

The debt per capita, standing at 357 US dollars, far exceeds the per capita income of the average African, which is 100 US dollars.

 

Ladies and Gentlemen, there is no better time than now, at the dawn of a new millennium, to give African countries a fresh start to enable them meet the challenges of providing the basic necessities of life for their citizens. To facilitate such a fresh start, it is imperative for our development partners to take immediate steps to relieve us of our crippling debt burden by outright cancellation of these debts, much of which are known to be spurious.

There is an urgent need for decisive international actions to reduce the incidence of financial volatility especially with short-term speculative capital flows, which have grave social and economic consequences for developing countries. In this regard, we welcome the on-going debate on the reform of the international financial institutions and the imperative for developing countries to participate fully and effectively in the design and management of the new international financial architecture, which should be structured and sufficiently funded to respond to the needs of developing countries. A central element of this new international financial architecture must include such definitive resolution of the external debt problems of developing countries. Similarly, it must include measures to arrest the growing phenomenon of illegal capital flight and the repatriation of illicit wealth, siphoned abroad by corrupt political leaders and their collaborators, back to their countries of origin.

Ladies and Gentlemen, surely increasing interdependence among countries at different levels of social and economic development in our global village of today compels new forms of multilateral relations. Such relationships should be based on the principles of mutuality of interests and benefits, shared responsibilities, and genuine partnership. Essential elements of this engagement should entail decisive international actions to ensure the mobilization of human and material resources for the elimination of inequalities among and within the countries of the world.

It is thus a matter of concern that the core resources of the United Nations Funds and Programmes that have traditionally brought meaningful improvement to the lives of our people have been declining in recent years. We must call on developed countries to halt this decline. And we must urge them to fully and faithfully implement their commitment to provide substantial resources to these Funds and Programmes. Similarly, the alarming decline of Official Development Assistance (ODA) must be arrested. ODA had traditionally bridged the financing gap in assistance to developing countries, particularly the least Developed Countries - most of whom are in Africa. It is regrettable that the ODA has been on the downward trend since the second half of the 1990s. The current ODA flows are at their lowest levels ever, recording less than one-third of the internationally agreed target of 0.7 percent of the Gross Domestic Product of donor countries. It must be acknowledge that few donor countries have faithfully and consistently kept to their commitment of meeting the 0.7 percent ODA target, and in some cases even surpassed it. However, a meeting such as this conference ought to record its recognition of the imperative for the international community to take urgent action to reverse the downward slide of ODA.

Without stable political conditions and good governance, poverty alleviation will remain a pipe dream. Yet, today as many as 19 of Sub-Saharan countries are engaged in armed conflict. That is about half of Black African countries. If the 1980’s was Africa’s lost decade economically, the 1990’s has turned out to be the decade when conflicts have reached an ominous proportion. In the interest of Africa, and indeed in the interest of the whole world, the trend has been halted and reversed.

As I speak one of our neighboring countries in the West Africa sub-region is burning. This has been a conflict for which Nigeria has made enormous sacrifices. And we are prepared to make more, to ensure that peace should return to the people of Sierra Leone.

We are pleased to note that on the insistence of African countries the UN has assumed some responsibility for the situation in Sierra Leone. There is still need for the Security Council to assume further responsibility in other flashpoints of conflicts in Africa. For too long, impoverished Africans have struggled to maintain peace in their region to save, their hemorrhaging neighbors. Resources diverted to these peacemaking and peacekeeping efforts become unavailable for other pressing developmental requirements. The United Nations should do a lot more in providing logistics and financial support to assist regional peace-keeping and peace-building efforts as well as the welfare of refugees and other displaced persons.

Ladies and Gentlemen, the more violent and protracted the conflict, the greater and more pervasive the negative impact. Conflicts result in considerable human, social, economic and environmental destruction and create huge structural imbalances. The destructive impact of low – intensity conflict, such as that which was waged in my own country between June 1993 and June 1998 is just as devastating as that of armed high – intensity conflict.

Our failure to fully comprehend the fundamental long-term historical causes of conflicts in Africa has prevented us from their mastery. Poverty and conflicts feed on each other while both go hand-in-hand with bad governance, whose hallmarks are the marginalisation and social exclusion of the majority of the population, the neglect of the social services and infrastructure, and the failure to maintain law and order. Invariably, the remote as well as immediate causes of conflicts in Africa are real and perceived political, social and economic injustice and inequity. In short, bad governance. Mastery of conflict is more than mere cessation of hostilities. We must address their fundamental causes in order to prevent their recurrence.

Ladies and Gentlemen, I began this address by referring to how much our continent and our people have suffered in the hands of non-Africans. It was by no means an attempt to defend Africa against such labels as “The Hopeless Continent,” as proclaimed on the cover of the latest edition of The Economist, which I have no doubt many members of this audience would have seen. Needless to say that for us, Africans living in Africa, development and progress is not an idle debate. For us, it is a matter of life and death! We certainly cannot afford the intellectual luxury of writing off our continent. Nor can we even begin to weigh the possible validity of the rather racist connotation that underdevelopment is innate to the character of Africans and African societies.

Ladies and Gentlemen, The Economist, as authoritative as it might be, conspicuously omitted reference to one quarter of Black Africa, that is to say Nigeria, where we have been devoting all our energy to rebuilding our nation after years of traumatic misrule and mismangement by our own people. Our administration, which will be a year old in a couple of weeks, is wholeheartedly and irrevocably committed to reversing the fortunes of Nigeria. The process has begun and we all know that the process of national rebirth is mostly arduous. The road has been – and will be – bumpy, as some of you may know from recent events in our country. But we are winning. And by the Grace of God we will succeed. All Nigerian now know that we cannot afford to fail!

Throughout Africa we recognize the need to rise to the challenge of putting our house in order. The key is effective leadership that is transparently democratic and duly sensitive to the needs and aspirations of our people. There is no difficulty in having a vision of Africa that is free of strife and where the people live peacefully and prosperously. And we have no reason to doubt our ability to achieve progress. We believe we can do it. We know we can do it. And we will do it.

But, Ladies and Gentlemen, Africa’s internal efforts are currently circumscribed by the mostly disadvantageous and inequitable status within the international order. Our situation is like that of a man in a wet pit, he needs a lifeline to make his climbing efforts a success. The history of humankind is replete with such complementarity of efforts. Our vision for this coming century cannot exclude the trend of the world becoming a global village. But let it be a village in which good neighborliness, governed by mutuality of interests, is the norm. Let it be a village in which a burst pipe in one compound makes all neighbors sit up with genuine concern and desire to help. It is not – and cannot be – a meaningful village if certain compounds are, for whatever reasons, de-linked, as it is now happening to Africa.

We are struggling and asking for Africa to be re-linked equitably into the international order, politically, economically, socially and technologically. This demand is predicated on humanity and morality, which are two essential factors that differentiate humans from beasts of the wild. If we can attain this, it will be a quantum leap for humankind in the 21st Century.

I thank you all.