Africa can't afford cost of conflicts

from the Daily Nation

By YUCABETH CHEPKONGA
Development and Security consultant

Armed violence is always expensive, especially in Africa where terrorism contributes to the overall cost. The economies of many African countries have been devastated by violence, leading to the squandering of mineral as well as agricultural and human resources that should benefit people desperately in need.

A new report, Africa Losing Billions to Conflict, says that in addition to the misery suffered by millions of people caught in armed conflicts, the wars cost billions of shillings every year. From 1990 to 2005, the cost of armed conflict in Africa was a whopping $284 billion, roughly the total amount of international aid to the continent during the period.

Some 23 of the 53 countries were in conflict during the period through war, terrorism or insurgency. Indeed, armed violence is the single largest impediment to economic, political and social development, and Africa cannot afford to lose such huge amounts of capital.

About $18 billion was poured out of Africa annually during the period — an amount that could have helped to build stronger economies in the world’s poorest regions.

The report says: “The sums are appalling: the price that Africa is paying could cover the cost of solving the HIV/Aids crisis in Africa or provide water and prevent tuberculosis and malaria. Literally, thousands of hospitals, schools and roads could have been built.”

Not only do Africans suffer the physical horrors of violence, armed conflict also undermines their efforts to get rid of poverty. Compared to more peaceful regions, war-battered African nations have 50 per cent more infant deaths and 15 per cent more undernourished people, and life expectancy is reduced by five years. Africa has 20 per cent more adult illiteracy, 2.5 times fewer doctors per patient and 12 per cent less food per person.

According to the report, 15 per cent of African economies are wrecked by armed conflict. The impact worsens the longer the war lasts. During Eritrea’s three years of conflict, its gross domestic product declined 11 per cent, and Algeria, the largest economic victim in the report, lost about $60 billion during the period largely because of the security crisis brought about by terrorism.

But the report does not include the economic impact on neighbouring countries. Adjoining nations often suffer from political insecurity because of nearby violence or a sudden influx of refugees, a situation that has obtained for long in Kenya.

It identifies the key driver in armed conflict as the proliferation of weapons — certainly a major contributor to the scourge of terrorism in Africa. It says that nearly all weapons used in African conflicts are not made in Africa, thus the need for global action to control the trade, especially the ubiquitous Kalashnikov automatic rifles.

The study was conducted by British charity Oxfam as well as Saferworld and the International Action Network on Small Arms — two groups that seek tighter controls on small arms.

But on a more positive note, a report issued by the World Bank points to business reforms black Africa that could see the region emulate the economic boom in Asia. African countries are adopting reforms to relax controls that have been hampering business development, it says.

Kenya is cited as being among the notable success stories. Investments have soared and its economy has enjoyed significant growth. The bank attributes much of the progress to the reforms it has made in business procedures. Kenya is one of the world’s top 10 reformers, the report adds.

Kenya launched an ambitious licensing reform programme, eliminating 110 business licences and simplifying eight others. The changes streamlined business start-ups and cut both the time and the cost of getting businesses up and running.
Mauritius tops the African list in the ease of doing business, followed by South Africa and Botswana. Kenya still has a long way to go before it reaches that level of achievement, but it is headed in the right direction, the report notes.