Viewing cable 09LONDON1370
Title: AFRICA'S EMERGING ECONOMIC LIONS: MALLOCH-BROWN

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09LONDON13702009-06-10 10:47:00 2011-08-30 01:44:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy London
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DE RUEHLO #1370/01 1611047
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P 101047Z JUN 09
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC PRIORITY 2576
INFO RUEHZO/AFRICAN UNION COLLECTIVE PRIORITY
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UNCLAS SECTION 01 OF 02 LONDON 001370 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL EAID PINR ECIN XA UK
SUBJECT: AFRICA'S EMERGING ECONOMIC LIONS: MALLOCH-BROWN 
CALLS FOR EU-STYLE ECONOMIC AND INSTITUTIONAL INTEGRATION 
 
REF: 08 LONDON 1426 
 
¶1. (SBU) Summary. Foreign Office Minister for Africa Lord 
Mark Malloch-Brown argued in a major June 9 speech that 
Africa should concentrate on "Africa first" in order to "use 
the opportunity of the (economic) crisis to speed up the 
process of regional integration" and give Africa's emerging 
economic "lions" a seat at the table in global discussions. 
African countries must "seize the nettle of integration - not 
global so much as regional" and make collective investments 
in building Africa-wide markets and institutions, through 
which Africa will build economies of scale, and regional 
institutions will advance democracy and accountability. 
Highlighting globalization's "huge but fragile benefits for 
Africa," Malloch-Brown also attempted to debunk popular 
theories that globalization has harmed Africa more than it 
has helped it and that Western development assistance is 
"Dead Aid."  Malloch-Brown's speech is the UK Government's 
most clear policy statement that Africa's regional 
institutions are the most effective mechanisms to advance 
political stability and regional economic integration.  End 
summary. 
 
Strength in Economic and Institutional Integration 
--------------------------------------------- ----- 
 
¶2. (U) In a major speech delivered in Mozambique on June 9, 
Foreign Office (FCO) Minister for Africa Lord Mark 
Malloch-Brown called for African countries to concentrate on 
"Africa first" in order to "use the opportunity of the 
(economic) crisis to speed up the process of regional 
integration."  He began by outlining the four ways in which 
Africa had been hurt by the economic crisis: declining demand 
for and prices of key commodities, falling remittances, 
decreased international private capital inflows, and reduced 
international aid budgets.  Acknowledging "Africa's political 
economy is in a more vulnerable condition," he argued African 
countries must "seize the nettle of integration - not global 
so much as regional - to create opportunity from crisis" 
through making a collective investment in building 
Africa-wide markets and institutions.  He said, however, he 
was not making a "veiled" call for a united states of Africa, 
but an EU-style economic and institutional integration. 
 
Aid is Not Dead, Regionalization Builds Markets 
--------------------------------------------- -- 
 
¶3. (U) Highlighting the need for continued assistance to 
Africa's social safety nets, Malloch-Brown's disputed former 
Goldman Sachs economist and author Dambisa Moyo's theory that 
"aid is dead" and Western governments should "move boldly 
into the post-aid era."  He argued that human capital is 
developed through the health and education assistance Western 
government provide and is the "launching pad for 
transformation in Africa." 
 
¶4. (U) Through establishing economic regions, Malloch-Brown 
argued, Africa will "build the economies of scale necessary 
to create opportunities to stimulate the domestic private 
sectors and to keep attracting the external investment that 
brings jobs, businesses, and growth."  He applauded the G20's 
additional pledge to the Africa Development Bank and the 
Southern Africa Development Community's (SADC) launch of its 
Free Trade Area. 
 
Regional Institutions Advancing 
Democracy and Accountability 
------------------------------- 
 
¶5. (U) At the regional level, Malloch-Brown asserted, 
democracy and accountability trends are the most positive. 
Highlighting the positive role institutions like the African 
Union played in countering recent coups on the continent, he 
praised the work of the African Peer Review Mechanism and 
SADC's peer-to-peer democratic review process.  He also 
highlighted the role conflict, or "bad governance," plays in 
destabilizing regional economies and hindering growth. 
 
Africa First 
------------ 
 
¶6. (U) Through adopting "an even stronger sense of solidarity 
at home" - making "Africa first" - African countries and 
their people will reap the benefits of stronger regions in a 
globized world, Malloch-Brown said, and the "emerging African 
lions" will have a seat at the table in major global 
discussions. 
 
LONDON 00001370  002 OF 002 
 
 
 
Comment 
------- 
 
¶7. (SBU) Malloch-Brown's statements on regional integration 
draw heavily on the economic growth and political stability 
theories outlined in Paul Collier's "The Bottom Billion," 
often touted as the UK development and stability policy 
bible.  His speech is the UK Government's most clear 
statement of support for Africa's regional institutions as 
the most effective mechanisms to advance political stability 
and regional economic integration. 
 
 
Visit London's Classified Website: 
http://www.intelink.sgov.gov/wiki/Portal:Unit ed_Kingdom 
 
LeBaron