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Updated on 2/27/2003 -
Improving AU communities and member
States low capital market liquidity
THE AU is
a political entity combining politics, economy, military affairs and
culture as one, ultimately aimed at unifying currency and achieving
free transit of personnel and goods.
However in
short-term, the proposed AU Commission on regional and global
Economic Integration (GEI) express concern at the continuing low
capital market liquidity which in most AU member States
contribute only to less than 10 per cent to their State's Gross
Domestic product (GDP).
In most
member States, the capital market's real returns is just above zero
percent, not very exciting economically. The equity market's low 10
per cent contribution to GDP is for most part attributed to the
under utilisation of the capital global
markets. Furthermore, in most AU member States, the
budget do not mention institutional investment
guidelines to compel institutional
investors who have money to develop the market. Resource
mobilisation is weak and simply ignored in the budget
mobilisation.
For most
part, institutional investors are ready to issue funds in some AU
member Sates but, the problem lays with AU member Sates governments
who are not ready to issue incentives. For one, accumulated budget
deficits in excess of 10 per cent of the GDG are bad signal for
investment. For two, sighted uncertainty about budget deficits
impacts significantly on macro economic stability as a fiscal policy
that also impacts on investment. For three, the convergence of
monetary and fiscal policy in issuing government securities applied
by a good number of Au member State's governments had devasted all
other investments assets in their respective country. The treasury
bills are generally supposed to control money supply.
Unfortunately, such instruments have translated into State's sources
of revenue at the expense of long term
real investments that generate growth and further investments.
Fourth, factors like political risk, economic
risk and policy reversal affect
investments.
The
proposed AU Commission on regional and global Economic Integration (GEI)
policy is to improving and encouraging private
investments in AU communities and member State's low
capital market liquidity by promoting strict adherence to
sustainable economic characteristics like output growth, openness,
relative stability of real effective exchange rates, balanced budget
and low external debt.
In view of the above proposed GEI
policy, the following comprehensive interim AUGEIP
CFDs Foreign Currencies (Forex) Trading System
strategy is proposed by this proposed
AU Commission on regional and global Economic Integration (GEI)
for implementation review by all
stakeholders, AU communities and member Sates. Click here.
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Thabo Mbeki, "Our
peoples throughout our continent are determined that we must
advance in decisive manner toward the realisation of the goals
of African political and economic integration and unity - we
have to do this so that we overcome the problems of poverty and
underdevelopment that afflict Africa, impose misery on millions
of Africans, and lead to the global marginalisation of our
continent and its people."
| We need
more resources and financial assistances to fully
implement the AUGEIP Programme. The Office of the
Permanent Secretary of this Proposed AU Commission on
Regional Economic Integration, Research and Information
System drew up the following expenditure plan outlining
the expected FIRST expenditure as an approximation. The
indicative tasks to be Budgeted are shown below. Sign
up |
| INDICATIVE
REQUEST FOR FUNDING THE FIRST LINE OF THE
IMPLEMENTATION TASKS:
FIRST
LINE OF FUNDING TO COVER:
- Production
of this Proposed AU Consultative Process programme
and Website in other four official AU
languages (French, Portuguese, Spanish, Arabic and
Swahili) in order to reach over-board African
communities.: Time frame: 03/01/2003
– 03/22/2003. Estimated Funding needed: US $
35,000.00
- Advertisements
of this Proposed AU Consultative Process programme
on national, regional and some global print media,
community radio and television: Time
frame: 03/01/2003 – 05/17/2003. Estimated Funding
needed: US $ 106.000.00
- Development
and distribution of this Proposed AU Consultative
Process programme on electronic medias such as CD
ROM, Online electronic libraries and Internet access
to all Ministries of Commerce, trade and Industry;
Ministries of Agriculture and Co-operatives;
Ministries in charge of Mines, Energies and Natural
resources of the 53 member States and to their
Provincial and Districts offices for rural
communities participations and reviews: Time
frame: 03/10/2003 – 05/17/2003. Estimated Funding
needed: US $ 106.000.00
- Implementation
of AUGEIP Internet Centers (AUIC) throughout the 53
member Sates to provide Internet connections to
areas of the AU communities lacking to be able to
participate in the AUGEIP programme, especially to
accommodate for capital consumptive expenditure
related to procurement of equipments and software to
establish local link to Internet via local ISPs
(First step); computers and accessories; cables;
furnitures acquisition and communication lines and
equipments, minimum operational personnel of 3
Contracts qualified employees in each AUIC, leasing
or renting of spaces to implement the AUIC; licenses
purchasing and operating rights for each AUIC: Time
frame: 03/17/2003 – 05/17/2003. Estimated
Funding needed: US $ 212,000.00
- Direct collections of the above stakeholders' views on
the proposed GEI policy via AUGEIP's Online Research
and Information System and databases: 03/17/2003
– 05/17/2003. Estimated Funding needed: US $
53,000.00
- Organisation
of Forums via Internet, telecasts and regional
conferences to review the collected stakeholders'
views on the Proposed AU Regional and Global
Economic Integration Programme (AUGEIP): 04/01/2003
– 05/17/2003. Estimated Funding needed: US $
53,000.00
- Submission
of the final reviewed GEI policy to the AU
Chairperson, to the Assembly and Parliament for
adoption and enlistment of the International
community for implementation of the adopted GEI
policies within the AU communities and member
States: Starts on 05/17/2003 to 05/31/2003.
Estimated Funding needed: US $ 53,000.00
- The
current interim management, research and technical
staff is composed of 10 people. There is a critical
shortage of at least one AUGEIP Programme
Implementation Coordinator to coordinate the
Proposed AUGEIP Consultative Process programme in
each member States and attached at the Proposed AU
Commission on Regional and Global Economic
Integration Programme. For a total of 53 AUGEIP
Coordinators to be hired on Contract basis. For
operating expenses of 10 original managerial,
research and technical staff and salaries for three
(3) months – the duration of the Proposed AUGEIP
Consultative Process Programme: Time
frame: 03/01/2003 – 05/31/2003. Estimated Funding
needed: (US $ 3000 x 63 x 3) = US $: 567,000.00
TOTAL:
time frame: 3 months.
Estimated Funding needed: US $ 1,235,000.00
The
Consultative Process starts from March 1, 2003 through
Mai 31, 2003. Please click here
to find out HOW to pay for your appreciated
contributions.
We thank you in advance for your efforts and
contributions in helping to FULLY implement this
programme.
Sincerely,
P.O. The Permanent Secretary of the Proposed Au
Commission on Regional and Global Economic Integration
(AUGEIP)
Please
direct all inquiries to: permanent-secretary@africanunion.intranets.com
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