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New research from Christian Aid shows that sub-Saharan Africa is a massive US$272 billion worse off because of ‘free’ trade policies forced on them as a condition of receiving aid and debt relief.

Christian Aid, July 2005

Link to the full report

The figure of $272 billion represents the income that poor countries in sub-Saharan Africa have lost over the past 20 years as a result of being forced to open their markets to imports. 

In human terms it represents tens of thousands of destroyed lives and years of lost opportunity.

Two decades of liberalisation have cost sub-Saharan Africa roughly what it has received in aid over the same period. The amount lost would have been sufficient to wipe out all of sub-Saharan Africa’s debt and allow all of its children to be vaccinated and go to school.

Counting the cost

The research reveals that in 2000 alone the cost for Africa was US$28 billion – enough to halve poverty in the continent, according to UN estimates.

When the cost of these ‘free’ trade policies is calculated on a country-by-country basis, the lost opportunity is starkly revealed.

The cost for Mali – one of the poorest countries in the world – was US$191 million in 2000, more than what the country spent on healthcare that year.

The reforms that rich countries forced on Africa were supposed to boost economic growth. However, the reality is that imports increased massively while exports went up only slightly. The growth in exports only partially compensated African producers for the loss of local markets and they were left worse off.

A message for the G8

Tony Blair and Gordon Brown have said that tackling poverty in Africa is top of the agenda for the G8 summit.

Increased aid and debt cancellation are of course welcome, but if nothing is done to stop the forced opening of African markets, the G8 will be giving with one hand and taking with the other.

The UK government has recently announced that British aid will no longer come with economic policy strings attached.

However, aid from other G8 countries – and the debt cancellation package recently announced by G7 countries – still demands that poor countries open their markets in return.

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