The African Monetary and Economic Sovereignty Conference: A Path to Economic Empowerment

The speaker expressed gratitude and thanked the audience for attending the event. They acknowledged the honor of being present and thanked the University of Virginia for their support.

There were technical issues with the audio, prompting a question about the ability to hear the speaker clearly.

A reference was made to someone in Kenya being part of the conversation, with a request to check if they could hear the discussion.

The session was officially closed, with thanks extended to the attendees for their participation.

Apologies were given for the delay in starting the session, with an update provided on the status of attendees and the imminent arrival of a guest of honor.

The speaker expressed embarrassment or modesty in response to a comment or situation.

The meeting was officially called to order, signaling the beginning of proceedings.

A warm welcome was extended to all attendees, with specific mention of scholars from the Global South and North. Information on facilities and administrative support was also provided.

Details about restroom locations, secretariat room availability, and administrative support team members were shared for attendees' convenience.

Dr. Abdallah Hamdok, former Prime Minister of the Republic of Sudan, was introduced as the guest of honor who would open the conference on monetary and economic sovereignty.

Dr. Zsuzsi Tsikata, a Professor of Development Sociology with extensive experience in gender and development policies, was introduced as a key figure at the conference.

Professor Tsikata warmly welcomes the audience to the third edition of the African Monetary and Economic Sovereignty AIMS Conference. This edition is a collaboration between ideas and the Coalition for Dialogue on Africa, CODA. Key figures mentioned include HEE Dr. Abdallah Hamdok, Ambassador Segun Akpata, Andres Arauz, Jomo Kwame Sundaram, Fadel Kabu, Martin Guzman, Jason Hickel, and other notable speakers and organizers.

The theme of the conference is 'Leveraging Multipolarity: Economic Options for Africa.' Professor Tsikata discusses the ongoing debate around multipolarity, highlighting the challenges and opportunities it presents for Africa. She emphasizes the need for critical engagement with the implications of multipolarity, especially in the context of global power dynamics and Africa's position within them. The conference aims to address issues such as neoliberal economic policies, global financial architecture, civic space decline, authoritarian populism, and social inequalities within African countries.

Exploring new options and economic opportunities in a multipolar world where the West no longer dominates. Emphasizing the need for a commitment to multilateralism, a just world order, and reducing inequalities and discrimination as key principles for the multipolar world.

Reviewing the rich agenda of the conference, including discussions on lessons from the past, current debt development, climate crisis, domestic and international resource mobilization, taxation, illicit financial flows, climate finance, and social policy financing.

Highlighting the importance of reviewing the Sababa Action Agenda from the third Financing for Development Conference of 2015 and addressing unfinished business from the first FFD that led to the monetary consensus of 2002.

Stressing the significance of focusing on implementation and accountability in Africa's contributions to the Sevilla Agenda for Action, beyond just pushing for consensus documents.

Discussing BRICS-class leveraging agendas such as de-dollarization, de-globalization, monetary integration, de-linking strategies, rethinking pan-Africanism, and ending unequal ecological exchanges as key topics for the conference.

Introducing Charles Abugwe, the Executive Director of IDEAS, with a background in development economics from the University of Ghana and the Institutes of Social Studies in the Netherlands. Highlighting his expertise in public finance, poverty, inequalities, natural resource governance, international taxation, and tax justice.

Expressing gratitude to the Chairperson and Your Excellency for opening the conference. Welcoming participants and emphasizing the importance of engaging discussions over the next few days. Promising more substantive remarks on the theme later in the conference.

Introducing Dr. Ndongo Sambacila, the Head of Research and Policy for Africa at Ideas. Thanking Prime Minister Abdullah Mdok and the African Union for their presence and support. Acknowledging the partnership between Ideas and CODA for organizing the conference on Economic and Monetary Sovereignty of Africa.

The idea for the conference on monetary sovereignty in Africa was initiated by Professor Kaye Codembroe, Maha Bengada, and the speaker. The conference aimed to draw global lessons from African projects of monetary integration to address issues of monetary sovereignty in Francophone Africa, including the CFA problem and the fight against the French FAFSA. It also focused on unique regional currency projects in West Africa with the CDAO, in East Africa, and at the continental level with the project of a unique continental currency for Africa.

The first conference on monetary sovereignty in Africa was held in Tunisia in 2019 in collaboration with the Rosa Luxembourg Foundation. It resulted in the publication of the book 'Economic and Monetary Sovereignty in the 21st Century Africa,' edited by the speaker and colleagues. The book delves into issues of monetary sovereignty, disconnection strategies, the ecological crisis, and reparation.

The second edition of the conference took place in Dakar in 2022, and the upcoming book following the conference will be published in the first quarter of the next year. The book will continue to explore the issue of monetary sovereignty with a focus on disconnection strategies, the ecological crisis, and reparation.

The historical context of monetary and financial integration in Africa dates back to 1963 when the African Union was created. Kwame Nkrumah emphasized the need for Africa to unite for strength, calling for monetary and financial integration based on political federalism principles. The context of the Bretton Woods Institutions' birth in 1944 also influenced discussions on economic and monetary sovereignty in Africa.

The discussion highlighted the development of the BRICS nations, trends in dollarization, and the challenges faced by countries in the South, particularly in Africa, with debt crises. Countries like Ghana, Ethiopia, and Kenya have experienced defaults, leading to the return of structural programs in a context of climate and environmental distress. Efforts have been made to reform the international financial system and address sovereign debt restructuring to preserve employment and prosperity in Southern countries.

The conference on monetary sovereignty in Africa aims to discuss themes such as reforming the international financial system, addressing debt crises, and implementing mechanisms for sovereign debt restructuring. It brings together political decision-makers, university students, and members of civil society from around the world to share knowledge beneficial to Africa. The conference encourages productive exchanges over three days to explore solutions to economic challenges in Africa.

Dr. Ndungosila acknowledged the clear agenda of the conference set by the speaker, highlighting the genesis of the conference, the current situation, and expectations. The guest of honor, H.E. Dr. Abdallah Hamdok, the Alternative Chair of the CODA Board and Sudan's 15th Prime Minister, was introduced, emphasizing his extensive career in public service, international organizations, and the private sector.

H.E. Abdallah Hamdok served as the Regional Director for Africa in the Middle East of the International Institutes for Democracy and Electoral Assistance from 2003 to 2008. He also worked for the United Nations Economic Commission for Africa as the Director of Regional Integration and Trade in 2001 and 2002. Additionally, he held the position of Deputy Executive Secretary from 2011 to October 2018.

Following the transfer of power from the transitional middle to the Sovereign Council of Sudan, H.E. Abdallah Hamdok was appointed as the Prime Minister for the 2019 Sudanese Transition to Democracy. He took office on 21st August 2019.

Dr. Hamdok holds a BSc from the University of Khartoum and a PhD in Economic Studies from the University of Manchester in the UK.

H.E. Abdallah Hamdok welcomed participants to the third conference on African Monetary and Economic Sovereignty on behalf of CODA and IDEAS. He expressed gratitude to the African Union Commission for hosting the event and acknowledged the Ethiopian government and people for their hospitality in Addis Ababa.

H.E. Hamdok highlighted the serious humanitarian crisis facing Sudan, emphasizing the country's need for support from regional and international partners. He expressed hope for collaborative efforts to resolve the crisis and bring peace to the Sudanese people.

CODA's strength lies in convening policy dialogues that generate and disseminate ideas necessary for Africa's economic development. Collaborative efforts with the International Development Technology Association play a crucial role in fostering progressive thinking globally.

H.E. Hamdok discussed changing geopolitical dynamics and the emergence of a multipolar world characterized by conflict, economic shifts, and climate sustainability challenges. He emphasized the need to rethink outdated global arrangements post-Second World War.

The world faces a climate sustainability crisis, prompting a reevaluation of production paradigms. Recent hurricanes in Florida serve as a stark reminder of the impact of climate change, necessitating urgent action.

Africa faces challenges related to inadequate financial resources for development and a looming debt crisis. Structural transformation is hindered by global power dynamics and the need to balance wholesale change with working within existing systems.

Continuous negotiations are essential for African countries, involving experiences and reliance on financial matters.

Options in Africa are correct, with attempts for future development focusing on increasing social funds.

Africa has allocated over $432 million for a payment plan, benefiting nearly 50 million people at risk of electricity shortages.

Finding solutions at the governmental level while seeking improvements beyond the current social payment system is crucial. Success requires enhancing social capabilities through improving the social payment system.

Over a hundred clear developmental aids have been given to countries in Africa.

The mortality rate in Africa has had a very direct impact in several countries.

Since 2010, mortality rates in Africa have increased from 32.7% to around 65% in 2022.

African nations must continue to enhance their capabilities to deal with social and political challenges.

Changes in the global landscape, including the importance of private institutions, have a significant impact on Africa.

Failure to promptly and correctly address challenges could lead to significant repercussions for Africa.

The African Unity Organization has succeeded in intervening and ending attacks.

The African Executive Maritime Region aims to clarify transitions and eliminate marginalizing forces globally.

African countries are encouraged to utilize the executive idea to help combat challenges and discover their significant influence.

Solar power has been identified as a key energy source that can meet all the energy needs of the world. African countries control important executive technological capabilities in materials like cobalt, platinum, manganese, chromite, oxide, graphite, and vanadium, which are crucial for energy production.

It is essential for Africa to add value within its countries because achieving public execution without these crucial materials is nearly impossible. By utilizing its natural resources, Africa can have greater control over its execution and play a local role in shaping global future developments.

To participate in a better world, there are four key areas that need detailed attention. Firstly, implementing tools to ensure common goals are achieved for the American community. Secondly, engaging in tools for better execution in African countries. Thirdly, continuing efforts towards future execution achievements. Lastly, developing executive power and strategic thinking to assist Africa in continuous and advanced training in a rapidly changing world.

It is crucial for the third executive and economic institution in Africa to come up with tools to address the challenges faced. Africa lacks national power and economic strength to bring about executive changes, regardless of the nature of these changes. Developing executive power and strategic thinking is necessary to aid Africa in continuous and advanced training in a rapidly changing world.

Appreciation is expressed towards His Excellency, Dr. Abdallah Hamdok, for his comprehensive and agenda-setting opening remarks. It is suggested that his remarks be promoted to the opening keynote due to their importance and relevance to the meeting.

Andres Arauz from Ecuador, affiliated with the Center for Economic and Policy Research in D.C., poses a question on leveraging Africa's natural resources for the green transition amidst the global north's association of mining buyers.

Acknowledgment of Prime Minister Hamdok's contributions to Africa over almost half a century, highlighting his efforts in negotiations for internationally legally binding instruments like the UN task convention.

Kayode Akintemi from News Central Television in Nigeria queries about the future possibility of a single currency and open borders in Africa under the AFCFTA within the next five to ten years, and its potential impact on trade and continental growth.

Discussion on the upcoming South African presidency of the G20 and its significance in advancing an African agenda, with considerations for key areas of focus suggested for the presidency.

Prime Minister Hamdok expresses regret for the limited time to delve into the important issues raised, emphasizing the need for in-depth discussions beyond brief responses.

Collaboration is key to influencing the green transition. Working together, especially with the global South, can yield significant results. Joint efforts are crucial to avoid individual agreements that may lead to failure. The current world offers an opportunity for collective action and dictating terms, but it requires conscious effort and avoiding blame on external powers.

The discussion on the UN tax convention is a positive step towards global cooperation. Moving the conversation to the UN level provides voice and power to Africa and the global South. Collaborative efforts can lead to progress in this area, creating alliances and understanding the issues at hand.

Despite progress in integration, challenges remain in balancing national sovereignty with continental sovereignty. The continental free trade area is seen as a positive step, although its realization in the next five years is uncertain. The determination to work together, akin to the struggle against apartheid, is crucial for success in integration efforts.

Engaging with the G20 through analytical work and a clear agenda can bring benefits to Africa. Collaboration between institutions like the ECA and the African Union is essential in articulating an African position. Historical successes in the UN system highlight the importance of working together for the continent's advancement.

Appreciation is expressed for the insightful keynote and engagement with questions. The importance of working together for a durable and just peace in Sudan is emphasized. The support from Africa towards Sudan's progress is acknowledged, highlighting the collective desire for Sudan to succeed.

The conference is taking place on the second floor of the conference building. There are no provisions for coffee, tea, or food on this floor. Participants will need to go back to the ground floor for coffee breaks and lunches, either by taking the elevator or using the stairs.

A group photo will be taken to showcase the gathering of people and institutions at the conference. His Excellency Abdullah Hamdok will be part of the photo under the rising sun of the African Union.

Jeffrey Sachs will be making comments in the next 15 minutes, with a limited time of half an hour. Participants are encouraged to listen to his remarks before the tea break.

Participants are thanked for their attention and informed that the conference will now break for a coffee break. The session will resume after the break.

Multiple expressions of gratitude are shared by the speaker towards the participants, emphasizing a sense of appreciation for their presence and engagement.

A reminder is given to a specific individual to stay for further interaction, indicating that someone has requested their presence.

The speaker repeatedly asks if the listener knows that someone requested them to stay, emphasizing the importance of this request.

The speaker mentions that a group following will not be coming in for the game, indicating a change in plans.

The speaker states their intention to take their things, preparing to leave the current location.

The speaker expresses confusion about not finding the staircase in the expected location, leading to a sense of disorientation.

The speaker comments on the open internet access without the need for a password, highlighting the convenience of the situation.

The speaker expresses delight in the food, describing it as delicious and showing gratitude.

The speaker expresses thanks, showing appreciation for something that was done or received.

The speaker attempts to establish communication by saying 'Hello?' multiple times, seeking a response from the other party.

The speaker mentions that there are three people involved in the current situation, providing clarity on the group dynamics.

The speaker expresses anticipation for Joseph's arrival, indicating a readiness to receive him soon.

Professor Sachs is widely recognized for his bold and effective strategies in addressing complex development challenges. He serves as the director of the Center for Sustainable Development at Columbia University, holding the rank of university professor. Previously, he was the director at the Earth Institute at Columbia from 2002 to 2016. Additionally, he is the president of the UN Sustainable Development Solutions Network and co-chair of the Council of Engineers for the Energy Transition. Professor Sachs is also an academician of the Pontifical Academy of Social Sciences at the Vatican.

Professor Sachs emphasizes the crucial importance of African economic, financial, infrastructural, and political unification in the global context. He highlights the need for effective regional groups due to the scale required by technology and geopolitics. Comparing Africa to China and India in terms of population, he underscores the necessity for Africa to act as a union to meet its economic, diplomatic, and security needs effectively.

Africa's admission as a permanent member of the G20, now referred to as the G21, signifies a significant step in African economic diplomacy. Professor Sachs stresses the importance of African economic integration and diplomacy through the vantage point of the African Union. This representation allows Africa to have a voice in setting the global economic agenda.

Professor Sachs believes that Africa, as the world's lowest income region, has the potential for the fastest economic growth in the coming decades. Drawing parallels with China's rapid growth and poverty reduction, he asserts that economic convergence is both necessary and feasible for Africa. He envisions Africa achieving double-digit growth rates and significant poverty reduction through a unified approach.

To achieve rapid economic growth, Professor Sachs emphasizes the need for scale in Africa's development. He argues that economic integration at the continent-wide level is essential for creating a larger market, reducing costs, fostering innovation, and enhancing Africa's global diplomatic and economic influence. With Africa's projected population growth surpassing that of China and India, integration becomes even more crucial for amplifying Africa's voice on the global stage.

Economic integration in Africa entails establishing a continent-wide free trade area and investing in critical infrastructure such as transport (roads, rail, fiber), power, and ecosystem management. These initiatives are vital for promoting trade, connectivity, and sustainable development across the continent.

Regional initiatives like PETA and NEPAD are crucial for Africa's development, focusing on infrastructure development and integration of finance at a continental scale.

Advocating for the establishment of an African Monetary Union, including a continental-scale financial system, monetary policy, and the creation of an African central bank to enhance policy effectiveness and economic growth.

Monetary and financial union in Africa would not only lead to efficiency and lower costs but also provide political and international-facing benefits, such as having its own lender of last resort authority and negotiating power with the international system.

Setting a target for Africa's economic growth to mirror China's growth rates from 1980 to 2020, aiming for sustained annual growth rates between seven and 10%, leading to significant economic expansion over a 40-year period.

To achieve rapid growth, Africa needs higher investment rates, which can be facilitated through an integrated financial system, increased saving rates, formalization of the labor force, and stronger borrowing capabilities in international markets.

Massive upgrading of education across Africa is essential for rapid growth, aiming for universal completion of school up to upper secondary level and a significant portion of graduates pursuing tertiary education, requiring substantial financing and skills development.

With the new commission coming in next year, there is an opportunity to accelerate all dimensions of the free trade area, financial market integration, monetary integration, physical infrastructure, and scaling up of Africa-wide finance institutions like the African Development Bank and the Afrexin Bank. This acceleration aims for 7 to 10 percent per year growth up to 2063, the 100th anniversary of African unity, which could be transformative for Africa and the world.

Ambassador Shigun Apata, with over three decades in the Nigerian diplomatic service, currently chairs the forthcoming session on multipolarity and Financing for Development and Africa's Interests. He is known for his commitment to fostering African development, combating illicit financial flows, and serving on various advisory and charitable organizations.

Dr. Andres Arauz, a Latin Americanist and Pan-Africanist, emphasizes the integration of the Global South. He discusses the importance of a joint agenda between Africa and Latin America, focusing on multipolarity and financing for development. Dr. Arauz highlights key elements such as tax justice, illicit financial flows, regional payment systems, international currency hierarchy, and the need to exit the investor-state arbitration system.

The discussion delves into tax justice issues with ethical, fiscal, and resource mobilization implications, focusing on the monetary imbalance of payment implications. Emphasis is placed on the Sustainable Development Goals target 16.4.1, which monitors the total value of inward and outward illicit financial flows (IFFs) in current US dollars per year, highlighting the problematic nature of using USD as a metric and the responsibility of countries in the Global North for receiving illicit financial flows.

The indicator 16.4.1 in the Sustainable Development Goals is critiqued for its poor design, focusing on the issues of using USD as a metric, the accounting identity leading to responsibility for Global North countries, and the ambiguity in defining total IFFs as aggregate or consolidated, leading to a lack of effectiveness in addressing illicit financial flows.

The need to address not only reducing the yearly flows of capital flight but also recovering the stocks of capital flight already deposited in investment in the Global North over past decades is emphasized, highlighting the importance of not just stopping the bleeding but also recovering lost assets.

The centralization of international payments in banks primarily located in the United States, such as New York City and Miami, creates a liquidity dependence for countries in the Global South. This dependence on US banks for financial transactions leads to delays in settlements and perpetuates a perennial asymmetry where liquidity is deposited where it is not needed.

The discussion highlights the impact of dollar hegemony and the role of US banking institutions, specifically mentioning the Wolfsburg Group members as key players in the centralization of international payments. This centralization contributes to the perpetuation of liquidity asymmetry and dependence on US banks for financial transactions.

The Wolfsburg Group, consisting of 13 global banks, acts as the main correspondent banks for settling international cross-border transactions. These banks, including JP Morgan, establish anti-money laundering standards, lobby the FATF, interact with the OECD, the United Nations, and the United States Federal Reserve. They are key players in cross-border payments and the creation of international liquidity, influencing the movement of scarce currency and illicit financial flows globally.

Over the past few decades, there has been a shift towards the privatization of international reserves. Correspondent banks have taken on the role of settling international payments, leading to the privatization of reserves that were previously held by central banks. This change has resulted in the dominance of liquid elites who hold significant foreign liquid assets compared to the official reserves of their respective countries.

The concept of 'liquid elites and illiquid states' highlights the disparity between the foreign liquid assets held by elites and the official reserves of countries. Examples from Argentina, Ukraine, Ecuador, and Egypt demonstrate how elites possess a substantial percentage of GDP in foreign assets, while official reserves remain comparatively low. This phenomenon underscores the imbalance of wealth distribution and liquidity between private elites and public states.

Countries like Ghana face challenges in tracking international investment positions and capital outflows, leading to a lack of transparency regarding assets held offshore. The absence of statistics on stashed offshore wealth complicates efforts to address illicit financial flows and highlights the need for improved data reporting and monitoring mechanisms in the region.

A comprehensive proposal suggests analyzing and developing Article 8.2.B of the IMF's Articles of Agreement to address capital flight issues. This proposal, rooted in discussions from the Bretton Woods conference involving Keynes and White, aims to prevent capital flight and facilitate the return of assets to their originating regions for growth and development, particularly focusing on addressing capital flight as a significant concern for the Global South.

The article written 80 years ago highlights the need for repatriation of assets from the Global North to the countries of origin. It emphasizes that non-compliant currencies with exchange controls should be considered unenforceable in recipient territories, indicating the responsibility of Global North countries to return assets corresponding to illicit financial flows.

There is a call for a reverse FATCA to be implemented, similar to the legislation in the United States, to ensure the return of information on citizens' accounts deposited in U.S. banks. Additionally, making capital flight deposits non-enforceable is proposed, along with discussions on the repatriation of assets at the FFDA round.

The IMF is urged to improve its external sector assessment and recommendations by focusing more on capital account measures, including the repatriation of assets. Emphasis is placed on the historical purpose of the IMF for balance of payments reasons and the need to address capital account issues in countries requiring adjustment.

SDRs are highlighted as a key instrument for financing development, with a historical neglect for 40 years before being issued in 2009. The unequal allocation of SDRs heavily favors the Global North, but the focus is on ensuring progressive use of SDRs for critical emergencies and development needs, including climate-related issues.

SDRs are proposed to be used for debt relief, improving external and fiscal positions of countries. The ability to settle obligations with the IMF using SDRs is seen as a form of debt relief, despite criticism from richer countries who prefer conditionality-based loans over debt-free SDRs.

The IMF's recent modification to classify SDRs as foreign debts aims to deter countries from using them, despite previous manuals stating they were not debts. This change is seen as a tactic to discourage countries from utilizing SDRs for fear of accumulating more debt, even though SDR allocations do not incur actual liabilities for repayment.

While SDRs have a regressive allocation, there is a push for progressive use, especially among Global South countries. The focus is on moving towards new issuances of SDRs without emphasizing failed rechanneling efforts, unless for donations, to harness the potential of SDRs for development and critical needs.

The SDR allocation heavily favored rich countries, but the actual use was predominantly in the Global South, particularly in Africa and Latin America. This allocation was primarily for development purposes rather than purely monetary or crisis-related.

African and Latin American countries were the main users of SDRs in terms of both the number of countries utilizing them and the volume of SDRs used.

Developing countries benefited the most from the allocation and use of SDRs, as evidenced by the per capita active use statistics.

SDR re-channeling, framed as a debt relief mechanism, has largely failed with only $6.5 billion worth of SDRs re-channeled out of the total issuance of SDRs, representing just 1%. Rich countries have been reluctant to lend SDRs, preferring to create their own currencies.

Unused SDRs from rich countries could potentially pay off 100% of the world's debt to the IMF and its trusts, with rich countries still retaining a significant portion of their unused SDRs. A new issuance of SDRs could address debt relief and development needs in developing countries.

A buyers club, the Mineral Security Partnership, comprising various countries including the US, EU, and others, has been formed to secure critical minerals for energy transition. Developing countries lack a sellers club, leading to their exploitation as suppliers of critical minerals without adequate representation or benefits.

Big mining companies from the Global North file ISDS claims whenever countries try to raise royalties, demand local content, or increase environmental regulations for critical minerals exploitation. This leads to countries accumulating new foreign debt due to exercising their policies over natural resources.

Having a proactive agenda is crucial to address issues related to financing for development, improving terms of trade, and focusing on energy transition in the context of current accounts.

Dr. Earls' presentation was highly valuable, and the audience greatly benefited from the research shared.

The African Union, with its regional entities and political influence, plays a significant role in providing a collective voice for Africa in global debates. The history of African political leadership in promoting decolonization and unity reflects the potential for a Pan-African Union economically and politically.

The Financing for Development Conference, from Monterey to Addis Ababa, failed to deliver on commitments and promises. The Addis Ababa declaration heavily focused on aid effectiveness and the Millennium Development Goals, with a strong emphasis on development assistance and power relations. Despite efforts, commitments on development assistance and illicit financial flows have not been fully realized.

The concept of relieving resource and finance constraints through economic growth dates back to the 1961 UN development decades. Developing countries aimed for 5% growth, with developed countries committing to contribute 0.7% of their GDP for support. However, the 0.7% commitment was never fulfilled, leading to significant political and economic influences, especially in aid-dependent countries.

SDRs are crucial for providing reserves and liquidity to support expenditure, initially proposed by the UN in 1971. They have been discussed as a mechanism to address liquidity gaps in developing countries, particularly for those in need of liquidity. SDRs can play a vital role in raising resources for both the climate and development agendas, offering a realistic means to tackle the debt crisis faced by many developing countries.

Illicit financial flows on the continent primarily occur through three main channels: commodities, financial systems, and profit repatriation. In commodities, under-invoicing and over-invoicing reduce taxation opportunities and facilitate wealth transfer to tax havens. Additionally, outright stealing and smuggling of precious commodities like diamonds and gold contribute significantly to illicit financial flows. The financial system and profit repatriation also play key roles in facilitating such flows.

During the period of structural adjustment, resource-rich countries received very little share, around 3% of the overall value of resource exports, mainly through royalties. In 1972, a Club of Rome report highlighted the importance of resource-rich countries governing their own resources, owning them fully, and having the ability to reclaim ownership if illegally acquired. The issue of commodity ownership and wealth sharing is crucial for Africa's development crisis.

The IMF and World Bank were used for aggressive privatization, leading to fire sales and debt crisis. Countries faced serious commodity price crises, resulting in declining GDP growth and increased debt to GDP ratios. This situation left countries in debt, unable to benefit from commodity price booms due to selling off their commodities.

Africa's ability to mobilize domestic resources from production hinges on addressing commodity ownership, pricing, and resource wealth sharing. The reform of international financial architecture, particularly focusing on Africa's debt distress, is crucial. Over the last 20-25 years, African countries have had an average of about 10 IMF agreements, highlighting the continent's debt challenges.

The IMF plays a critical role in debt resolution for African countries, with many nations under repeated three-year IMF agreements. It is essential to reform the IMF to prevent it from becoming an instrument for trapping countries in repeated debt cycles. Collective action and attention to the IMF's role in debt resolution are necessary for Africa's financial stability.

Elite behavior and financial flows, including elite capture and under-invoicing, pose challenges to financing development in Africa. Statistics on elite financial flows in Africa are needed to address these issues. The transformation of India serves as an example for leveraging talent, similar to Africa's vast talent pool, for development. The issue of debt overhang resurfacing on the agenda requires attention and discussion for African development.

Anders mentioned the MDBs jubilee concept, highlighting the debate among big stakeholders on whether MDBs should incur losses. Overcoming political incompetency and reluctance to utilize resources poses a challenge. Relanding SDRs offers developing countries benefits like lower interest rates compared to hard currency debt, but convincing rich countries to participate is crucial.

Charles discussed the challenges faced by Africa and the Global South in maintaining non-alignment movements amidst integrated global supply chains. Issues like the US imposing tariffs on countries like Vietnam and Mexico disrupt traditional non-alignment strategies. New challenges arise due to global economic shifts and geopolitical pressures.

Questions were raised on enforcing Article A to B in the Global South and leveraging mechanisms for development. The disparity in SDR usage, with developing countries being major users and the Global North benefiting more, raises concerns about resource availability and needs. The discussion highlighted the need for effective implementation and equitable distribution of resources.

The FFD Conference presents an opportunity to reshape normative landscapes and address the debt crisis. Lack of debt cancellation or restructuring is attributed to promoting financialization and speculation. Regulating the financial sector, especially asset managers, is crucial. The conference offers a platform to tackle multiple issues simultaneously, including trade, finance, and debt, to address the needs of the global South and plan for a sustainable future.

The speaker questions the effectiveness of Special Drawing Rights (SDRs) as a solution for climate vulnerable countries, highlighting that the SDR interest rate, which is a weighted average interest rate of countries in the SDR bundle, could reach around 4% due to global economic factors. The concern is raised that countries in need of grants and concessional finance may not benefit sufficiently from SDR allocations, indicating a potential need to revise allocation rules for SDR distribution.

The speaker discusses the challenges faced by Africa in participating in the non-aligned movement, attributing it to fundamental shifts in leadership and political economy. Post-independence, African leaders sought political solidarity over development assistance, emphasizing self-sufficiency and domestic resources for development. However, changes in ideology and influence from institutions like the IMF have altered the outlook of African policy and political leadership, impacting their participation in global movements.

The speaker emphasizes the need to address fundamental issues in the global financial system rather than focusing solely on liquidity concerns at forums like the FFD. Highlighting the power dynamics of bondholders and asset managers, the speaker advocates for systemic changes to address underlying issues. The rise of middle-income countries like China, India, and Brazil offers hope for alternative discourses and relationships in the global financial landscape.

The speaker discusses the need for a transition in the regulation of finance, similar to the ongoing transition in tax regulation. They mention the concentration of high finance in a few global centers of power, such as the Financial Stability Board in Basel. The potential impact of the African Union's involvement in the G20 on the multipolarity of global finance regulation is also highlighted.

The speaker views SDRs as a multipolar instrument compared to the dollar hegemonic instruments. They emphasize the non-national and multilateral nature of SDRs, noting the inclusion of the Chinese currency in the SDR basket in 2016. The aspiration to include the African currency in the SDR basket is discussed as a way to provide more policy space for the continent.

The speaker addresses the technical aspects of SDRs, highlighting the convenience of using SDRs over conventional debt due to favorable cash flow requirements. They discuss the asymmetry in the distribution of SDRs favoring rich countries and the historical efforts to reform this distribution to benefit the developing world, which has not yet materialized.

The speaker suggests continuing to push for regular issuances following the mandate from the 1969 first issuance and the reforms of the Articles of Agreement to establish the SDR as the prime reserve asset for the international system. Concrete steps can be taken towards multipolarity, such as having the United Nations pass a resolution to shift accounting frameworks from the US dollar to SDRs.

There is a proposal for a debt jubilee in multilateral development banks where rich countries would cover the debt of the MDBs using their unused SDRs. An ad hoc accounting system could be prepared to allow for donations of SDRs without impacting the equity of central banks, enabling a massive debt relief program for developing countries.

The speaker highlights the need to make data on global asymmetry in illicit financial flows more visible. Mentioned sources include the Bank of International Settlements locational banking statistics and the United States Treasury Information Capital statistics, emphasizing the importance of research in this area.

The session concludes with gratitude towards the panelists for stimulating interest in financing global development. The speaker expresses thanks and acknowledges the valuable insights shared during the discussion.

The session is adjourned, and participants are directed to proceed to the multipurpose room for lunch. A one-hour break is announced, with a reminder to reconvene at 2:05 PM. The speaker expresses appreciation and thanks the attendees for their participation.

Ambassadors, ladies and gentlemen, were asked to take their seats to start the session on time. The session will focus on the Lessons from the New International Economic Order, chaired by Prof. Chandra Sekar, a Senior Research Fellow at the Political Economy Research Institute, University of Massachusetts Amherst.

Prof. Chandra Sekar has a vast academic background, having taught at Jawaharlal Nehru University in New Delhi and served as the Reserve Bank of India Chair Professor. He is currently a Senior Research Fellow at the Political Economy Research Institute, University of Massachusetts Amherst. Additionally, he has held various positions in different institutions and has been actively involved in economic research and publications.

David Adler, a political economist and co-general coordinator of Progressive International, is leading the global initiative on the New International Economic Order. He has a strong background, having served on the Foreign Policy Advisory Team of U.S. Senator Bernie Sanders and directed policy for Yanis Varoufakis in the Democracy in Europe Movement. Adler's academic achievements include being a Rhodes Scholar at the University of Oxford and a Fulbright Scholar at Collegium Mexico in Mexico City.

David Adler is set to deliver a presentation on the New International Economic Order. He mentioned having a PowerPoint presentation ready and requested technical support to ensure the slides are visible. Adler's expertise and experience in global economic initiatives make him a valuable speaker for the session.

The speaker aims to explore the concept of the New International Economic Order (NIO) on its 50th anniversary, emphasizing the need to renovate it for the 21st century. As the co-general coordinator of an organization uniting progressive forces globally, the speaker highlights the importance of commemorating the NIO and discusses a program of action for its construction involving figures like Dr. Andres Arauz and Professor Kai Cottenbrock.

Reflecting on the Bandung Conference 70 years ago, the speaker mentions its significance in the birth of the Non-Aligned Movement, leading to the establishment of the NIO in 1974. Despite initial optimism, the NIO eventually faded into obscurity, prompting discussions on its failure and the lack of realization of its promised benefits.

The speaker presents a map illustrating a recent UN General Assembly vote in 2022 towards a new international economic order, reminiscent of the old NIO. The map showcases support for the NIO from developing nations and resistance from old colonial powers in the Global North, hinting at a potential revival of the NIO ideals.

The speaker proposes a definition of an NIO moment as a period where less developed nations advocate an alternative global economic governance model against the existing system led by more developed nations. Key dimensions include the role of nation-states, the relationship between developed and developing nations, and the presence of contention in establishing a new economic order.

The speaker outlines conditions necessary for an NIO moment, starting with an interregnum where the old international economic order gives way to new possibilities. Activation of poorer nations during crises and a shared aspiration for change are crucial factors in seizing the opportunity to construct a new international economic order beneficial to their interests.

The speaker outlines six conditions necessary for establishing a New International Order (NIO), including economic decolonization, formal coalition formation, institutionalization of aspirations, program implementation, and the exercise of structural power by countries to transform the international economic order. These conditions aim to guide the transition from aspiration to realization, sparking a debate on their presence and utilization in the current global context.

The speaker discusses the concept of interregnum as a moment of transition in the global order, characterized by a shift towards nation-states and international economic cooperation. This period presents an opportunity for regions like Africa, Latin America, and Asia to leverage the open space created by the interregnum for their benefit, reflecting similarities to past debates on the international order.

The speaker examines the activation of less developed nations in the present interregnum, drawing parallels to historical movements like the Non-Aligned Movement. The persistence of the Brandt Line, demarcating the North-South developmental divide, has reactivated political coalitions along this divide, fueled by crises like COVID, climate issues, and security concerns. This activation raises questions about the emergence of a common aspiration among these nations.

The speaker questions the unity and common aspiration among nations along the lines of past speeches on colonialism and neocolonialism. Analysis of UN General Assembly debates reveals a shift in discourse away from decolonization and resistance narratives towards a lack of articulation on breaking the Brandt Line. Despite structural conditions of neocolonialism persisting, the language of liberation, exploitation, and domination has faded in the discourse of the South, posing challenges for a unified aspiration.

The discussion highlights a shift in narrative paradigm from a protagonistic view of the South's role in constructing the NIO to a more defensive stance, emphasizing multilateralism, consensus, and protection. This shift has led to defending the existing world architecture and expressing discontent with asymmetric application of WTO rules.

The significance of coalition building, particularly the birth of the G77 and the Global South as a diplomatic bloc, is emphasized. Despite concerns about the decline of the G77 as a block, it continues to operate cohesively, displaying diplomatic coherence and unity in various international forums.

The evolution of the G77 over the past 50 years is discussed, highlighting a shift where the group has delinked its diplomatic function from national political functions. Diplomats within the G77 operate as an epistemic community, focusing on solidarity and unity at the international level, even when not in agreement with certain national policies.

A paradox is revealed regarding national and international policies, where countries like Ecuador exhibit contradictory approaches. While national governments may pursue neoliberal agendas, at the international level, the spirit of non-alignment and cooperation within the NIO persists. This disconnect underscores the complexity of aligning national and international agendas.

The conditions of the NIO were influenced by the cartelization of petroleum production and distribution by OPEC. This historical context raises questions about the current dynamics and power structures within the NIO, hinting at the lasting impact of OPEC's role in shaping the organization.

The speaker questions the understanding of the value of OPEC and the progress in cartelization processes. Trade patterns within the 77 countries have stagnated across primary and manufactured commodities. South-South relations have led to stagnation, with the European Union trading 55 to 60% of goods within the bloc compared to Latin America's 15%. The United States is now a net exporter of primary commodities and a net importer of manufactured goods, significantly altering global dynamics.

The speaker highlights the changing conditions in global trade over the past 50 years. The United States no longer heavily relies on petroleum and resources, shifting to being a net exporter of primary commodities and a net importer of manufactured goods. This shift has implications for global governance reform efforts and structural leverage in North-South relations.

Recognizing the power deficit vis-a-vis traditional Western powers, many countries have turned to China and BRICS for support. However, the speaker suggests that this shift may be a dynamic situation. Trade patterns with China over the past 50 years show a similar imbalance to North-South relations 50 years ago, with China importing primary commodities and exporting manufactured goods.

The speaker concludes by posing the question of what needs to be done to address trade imbalances and challenges in the current global economic order. Through the Progressive International, efforts are being made to convene diplomats, scholars, and policymakers to discuss measures for a new international economic order. The focus is on building a consensus across North and South, moving away from grand ideas towards practical policies and measures for immediate collective action.

Dr. Andres Dadao mentioned coordinated withdrawal from ISDS and the ICSID treaty to reclaim economic sovereignty for Africa and other Southern countries. This includes measures like cartelization of coffee, lithium, and copper for greater negotiation leverage with the North. Other measures involve using parallel currencies to challenge dollar hegemony and move unilaterally without relying on North's entrenched interests.

Dr. Guillaume Long, with a background in history and a PhD in international politics from the University of London, has held various cabinet positions in Ecuador and served as Ecuador's permanent representative to the United Nations in Geneva. His research focuses on Latin American foreign policy, regionalism, and integration, as well as initiatives on tax havens, bilateral investment treaties, and human rights at the multilateral level.

Dr. Guillaume Long commends David's presentation on the potential for a new NIO moment, emphasizing the need for 'optimism of the will, pessimism of the intellect.' He highlights reduced structural constraints compared to a decade ago in Latin America but notes the importance of addressing issues with agency. Dr. Long mentions a reawakening of global South multilateralism, citing developments like the UN Tax Convention led by African countries.

Ecuador prioritized combating tax evasion by aligning domestic and international efforts. A referendum was held posing a question to ban civil servants with assets in tax havens. The referendum was won, politicizing the issue and highlighting Ecuador's battle against tax evasion in the Western Hemisphere.

There is a growing momentum globally against tax evasion, with Ecuador being a major victim in the Western Hemisphere. The fight against tax evasion has mobilized Africa, surpassing previous efforts. This signifies a significant moment in international relations.

Despite progress, there is a lack of decisive collective action in the global South against IMF and WTO policies. More work is needed to push back on these institutions, including addressing issues at the WTO level and forming commodity clubs like the long-awaited lithium cartel.

There is a consensus that Investment State Dispute Settlement (ISDS) mechanisms are losing credibility. Global North countries are withdrawing from ISDS agreements, signaling a shift in attitude. European countries are moving away from ISDS due to cases where European laws were challenged, hindering energy transitions and environmental regulations.

In 2016, Joe Biden promised not to sign new ISDS clauses into Free Trade Agreements (FTAs), while Elizabeth Warren led the fight against ISDS in Congress.

A highly politicized case of arbitration involving a US company called Prospera in Honduras is claiming a third of Honduran GDP in compensation for Honduras reclaiming a special economic zone granted by a corrupt government.

Despite a growing consensus on the neocolonial nature of ISDS, there is a missed opportunity in the Global South to address it, with ISDS being considered one of the top three neocolonial tools of the neoliberal world order.

There is a spirit of third-worldism among certain diplomats in multilateral fora, but heads of government and economic ministers often lack awareness or support for this perspective, with a few exceptions.

Neoliberalism is not just an economic project but also an ideology that promotes free riding and individual competition over collective action, leading to a portrayal of pragmatism versus ideology in global dynamics.

Latin America experienced a significant NIO moment in the early 21st century with a mass rebellion against US hegemony, resulting in left-of-center governments in 12 to 14 Latin American republics, including the creation of UNASUR as a geopolitical expression of this moment.

UNASUR was a promising organization with 14 sectorial councils covering areas like science and technology, health, education, security, and infrastructure. It aimed at comprehensive governance, a first in Latin American and South American history. Initiatives included a medicine price bank to purchase pharmaceuticals collectively and a regional infrastructure plan to address historical shortcomings.

Integration within UNASUR aimed to enhance sovereignty through economies of scale, despite the paradox of ceding some sovereignty to gain more. The focus on creating a common South American market aimed to address past failures like import substitution industrialization due to insufficient middle-class consumption.

UNASUR established a defense council to train regional officers, enhancing military transparency and cooperation. Infrastructure projects evolved from raw material-centric to connectivity-focused, including energy and internet connections, and transport networks for goods.

The government under Andres denounced and withdrew from multiple bilateral investment treaties, emphasizing economic sovereignty. Constitutional measures were implemented to prevent future treaty signings, leading to a successful referendum against Investor-State Dispute Settlement (ISDS) in Ecuador, making it unconstitutional.

The NIO moment faced challenges in a post-liberal context post-2008 crisis, with shifts in China and the United States towards post-neoliberal policies. Opportunities emerged with European withdrawal from the Energy Charter Treaty (ECT), signaling a potential new era led by Africa.

Despite challenges, there is optimism for future global shifts and opportunities, with a focus on Africa as a potential beacon-bearer for a new NIO moment. The speaker expresses gratitude for the mood of optimism and looks forward to continued engagement and progress.

The speaker reflects on the Latin American experience and the international order, emphasizing the disintegration of elements of the old international order in the North while still being applied in the South. Mention of low-hanging fruit as a metaphor for achievable goals and the need to address disconnects between negotiators and processes, particularly citing the UNFCCC and the role of civil society and social movements in shaping agendas for bolder actions.

The discussion shifts to the focus on the nation state and processes at the U.N., with a query on the limitations of this approach in light of the resurgence of decolonial ideas in academia. The speaker highlights the importance of considering decolonization in global discussions, noting the influence of Latin American scholars like Quijano in Africa and the need to broaden the analysis beyond the nation state to capture diverse perspectives and movements.

The presentation on unasu as a movement in Latin America prompts a comparison with regional integration efforts in Africa, particularly the lack of excitement around initiatives like the ACFTA due to the dominance of neoliberalism. The speaker contrasts open regionalism with intra-African regional integration, highlighting the challenges posed by neoliberal policies despite the potential of initiatives like the ACFTA.

The speaker expresses a Marxist analysis suggesting that the global economic power currently lies in the global south due to factors like demography, natural resources, and growth potential. Despite this, there is a perceived need for concessions from the global north, such as reforming institutions like the Bretton Woods Institution.

The discussion delves into the relationship between military power, neocolonial dynamics, and digital power in the context of economic power. The role of sanctions is highlighted as a potential challenge despite an optimistic outlook.

The conversation explores how global governance structures reflect power dynamics, emphasizing the need to address class forces in the global economy to achieve goals like a New International Order (NIO). The focus is on the role of states versus other potential actors of resistance, with a call to not overlook the historical significance of social movements in challenging imperialism.

The dialogue shifts to the potential power of African countries, noting challenges in achieving unity due to differing interests and potential sub-imperialist tendencies. South Africa is highlighted as a key player with hosting the G20, raising questions about its role in driving a pan-African agenda amidst competing interests.

The discussion highlighted the importance of driving a South African agenda to enhance economic clout and connectivity. It was emphasized that tangible actions by African countries are crucial to address concerns such as youth unemployment and drive employment within individual countries, potentially at the expense of broader continental cooperation.

The conversation delved into the forces hindering the establishment of a new International Economic Order (NIO). Factors such as existing global consensus around Sustainable Development Goals (SDGs), China's rise as a manufacturing powerhouse, and the influence of entrenched elites were discussed as potential barriers to unity and progress. The need to overcome these demobilizing forces was emphasized for any meaningful advancement.

The speaker highlighted the diminishing narrative around decolonization despite persistent structural conditions of neocolonialism. The discussion underscored the need to recognize the lack of substantial change in North-South relations over the past 50 years. The challenges posed by transnational elites and the erosion of national developmental coalitions were also addressed, emphasizing the importance of rekindling aspirations for national development amidst globalized interests.

The importance of effective infrastructure and coordination among social movements, parties, and unions was emphasized as a critical factor in advancing collective goals. The absence of peak organizations like the African Union was noted, leading to fragmented efforts and vulnerability to reactionary forces. Building effective infrastructure for collaboration was highlighted as essential to counter disintegration and promote unity in pursuing reforms globally.

The speaker emphasizes the need to facilitate greater forms of collective action by constructing effective person-to-person, movement-to-movement, party-to-party, and country-to-country infrastructure. This infrastructure is crucial for the successful implementation of Non-Imperialist Orders (NIOs) and must be robust enough to withstand military or mediatic interventions by opponents.

Acknowledging the palpable pessimism in the room, the speaker highlights the significant hurdles that need to be overcome. Despite the resilience of the neoliberal ideological project and the shift from a unipolar to a multipolar moment, there are substantial challenges that require action to be taken.

The speaker discusses the responsibility of global South elites, particularly in Latin America, in the context of organizations like UNASUR. Despite efforts to integrate various governments, including right-wing ones, the organization faced challenges due to its exclusion of the United States, leading to its de facto demise.

Highlighting the process of counter-hegemony, the speaker reflects on the significant political shifts in Latin America. The left in Latin America has become a major player in politics, leading to hyper-polarized dynamics that impact development. The ongoing struggle for hegemony and counter-hegemony underscores the need to recreate a Non-Imperialist Order (NIO) moment.

Addressing the pejorative perception of global South activism in the global North, the speaker challenges the notion of 'transactional global South.' Emphasizing the need to demonstrate genuine multilateral aspirations and global governance goals, the speaker rejects the demeaning characterization and advocates for a more respectful recognition of global South efforts.

Discussing the significance of social movements in the fight for social justice, the speaker warns against fetishizing either states or social movements. Drawing on past experiences in Latin America, the speaker underscores the crucial role of social movements in advocating for change and highlights the need for states to better engage with and support these movements.

There is a concern about the fetishization of social movements, which can sometimes resemble the neoliberal negation of the state. This includes arguments that the state is a Western construct and a nostalgic view of pre-modern forms of statehood. It is important to be cautious about these views and recognize that social movements should guide collective action.

Anil has informed that DSAs can be collected from him for those who are eligible.

The next session will focus on global tax justice for Africa, with Ambassador Shiguna Pata and Professor Charisse Elissi as panel members.

The meeting is called to order to resolve some issues and catch up on lost time.

The session focuses on global tax justice for Africa, with panel members knowledgeable about ongoing negotiations in New York. Professor Sharif Salihsi has advised presidents in Senegal on forging common positions, emphasizing the importance of African leadership in New York negotiations.

Ambassador Adeyemi Dipolu played a crucial role in mobilizing African actors to oppose unfavorable aspects of the inclusive framework processes for global tax justice. Nigeria, under his guidance, stood firm in negotiations, ensuring African perspectives were properly represented.

The speaker acknowledges the hard work and dedication of individuals who have labored and managed through various roles to achieve what are now considered successes. Dr. Hamdok emphasized the importance of supporting negotiators, especially with African leadership asserting ownership over conventions.

The two distinguished speakers introduced are Ambassador Shigun Apata, who leads the Coordination for Dialogue on Africa Secretariat Services, and Professor Sharif Salifsi, an intellectual academic researcher and lecturer currently directing the Third World Forum.

The panel discussion delves into the outcomes of the Summit of the Future in New York, focusing on global tax cooperation. The document emphasizes the need for inclusive and effective international tax cooperation to ensure a better future for people and the planet.

The agreed terms of reference for the framework conversion starting in January mark a significant development, with countries shifting from initial opposition to abstaining. This shift indicates a positive trajectory in global tax discussions, recognizing the critical role of taxpayers, both corporate entities and individuals, in the tax equation.

The primary objective of the negotiations is to finalize a U.N. Tax Convention. The terms of reference guide the negotiators' path, discourse, and resolution, especially concerning matters involving money.

One critical objective for negotiations in New York is to ensure that the U.N. Tax Convention is not subordinate to other international legal instruments. This is particularly important for negotiators from the Global South, as their interests differ from those of the North.

The African group in New York deserves commendation for their efforts in bringing the global environment together to agree on commencing negotiations for a U.N. Tax Convention. Despite initial challenges with many countries voting against, there is now a majority in favor of the convention.

Central to any U.N. Tax Convention is the absolute necessity of eliminating financial secrecy jurisdictions. This includes ensuring there are no places for states to hide money, as demonstrated by the U.S. decision to require foreign banks to disclose accounts of U.S. citizens for tax purposes.

Another crucial aspect is the elimination of shell companies, which can be used for illicit activities. By preventing the formation of shell companies that obscure beneficial ownership, the transparency of financial transactions can be improved to combat tax evasion effectively.

Efforts are being made globally to combat illicit financial flows, with a focus on creating an open register of beneficial owners for all corporate entities worldwide. This initiative aims to eliminate hiding places for individuals involved in illicit financial activities, promoting full disclosure of global elite liquidity. The UN Task Convention is expected to play a crucial role in addressing illicit financial flows globally, emphasizing the importance of transparency and accountability.

In Africa, the issue of illicit financial flows poses significant challenges, with estimates ranging from 100 billion to 150 billion. This amount is substantial, especially considering that it would cost 100 billion dollars annually to electrify the entire African continent. Efforts are being made by countries like Senegal to recover these funds and ensure proper control over financial outflows. The focus is on pressuring industrialized nations to cooperate in tracking and repatriating these illicit funds, highlighting the need for collaboration and diligence in addressing this issue.

Senegal is actively engaged in developing national strategies to combat illicit financial flows, under the leadership and supervision of Ursuad. The country is implementing restructuring efforts to gain better control over its financial destiny, with a particular emphasis on recovering funds that are owed. The current phase involves establishing a methodology that can be applied at a continental level, aiming for convergence in approaches across African countries. Key steps include enacting clear laws managed by parliamentary institutions, defining roles and responsibilities to avoid conflicts, and ensuring precise task allocation among agencies to facilitate effective collaboration in combating illicit financial flows.

Significant reforms are being considered to restructure responsibilities among stakeholders involved in combating illicit financial flows. The ideal scenario for Senegal involves transferring oversight of illicit financial flows from the Ministry of Economy and Finance to the Ministry of Justice, a move currently in progress.

Formalized coordination mechanisms, such as interinstitutional committees with real powers and necessary resources, are being established to enhance collaboration and effectiveness in combating illicit financial flows.

Efforts are underway to establish a centralized database for sharing information among stakeholders to address significant information imbalances in combating illicit financial activities.

Focus is on enhancing the capacity of public institutions to combat illicit financial flows by improving stakeholder capabilities, coordination, and ensuring adequate resource autonomy.

A robust legal framework has been implemented to promote transparency and good governance, reassuring the public and holding institutions and their officials accountable.

International cooperation plays a crucial role in addressing various issues, particularly in exchanging information to combat illicit financial flows effectively.

Emphasis is placed on promoting good governance, transparency, and accountability among institutions and officials to engage the public and provide necessary training on complex issues.

Efforts are directed towards addressing key factors such as corruption, with a focus on recovering illicitly acquired assets and dealing with multinational corporations and individuals involved in corrupt practices.

The primary risk in financial flows is identified, with a specific focus on sectors targeted for illicit activities and the need for tailored approaches to address varying cultural contexts and challenges in different countries.

The speaker discusses the challenges faced in the oil and fishing sectors in Senegal, highlighting issues such as pillaging and significant outflows from the fishing sector. Reforms are being implemented, including audits of agreements with the European Union and China, major exploiters of resources.

The importance of coordination among institutions in combating financial flows is emphasized. Recommendations include granting agencies strong autonomy and protecting personal interests to ensure transparency and accountability.

The lack of clarity in roles and responsibilities is identified as a fundamental issue, necessitating new legislation and precise directives. The absence of clear guidelines and formal coordination mechanisms poses challenges in effective governance.

The discussion contrasts the importance of national efforts and laws with global recognition. Emphasis is placed on the need for genuine efforts, laws, institutions, and coordination mechanisms at the national level to effectively implement global standards and policies.

The Nigerian government's efforts in combating financial flows, corruption, and illicit activities serve as a model for other African governments. Resolutions at the United Nations and the African Union highlight the progressiveness of certain governments in driving continental change.

The complexities of establishing effective coordination between agencies and departments at the national level are discussed. Challenges include determining responsibilities within ministries and clarifying which entity oversees specific areas, such as the Central Bank or the Ministry of Justice.

The speaker invites a discussion for clarifications and questions on the presentations. Clear recommendations will be prepared and distributed. Ambassador Di Paolo is encouraged to provide additional insights based on his critical role in shaping resolutions at both continental and global levels.

Ambassador Apata is mentioned as the speaker's long-standing boss, emphasizing his importance and authority in the discussion.

The key focus is on ensuring taxes are levied where economic activities occur, challenging both governments and multinational corporations to abide by this principle.

There is a cautious approach towards dispute settlement clauses, with a warning to avoid being trapped in global power dynamics that could undermine fair resolutions.

African nations emphasize the importance of taxing resources where they are extracted and express concerns about dispute resolution traps experienced in international processes like the WTO.

Concerns are raised about rich countries like Norway and Scandinavian nations shifting positions on tax justice efforts, impacting funding and support for global tax initiatives.

Queries are made about the digital readiness of national tax revenue agencies and the potential for regional or continental cooperation to enhance tax administration capabilities.

The discussion delves into the skepticism surrounding digital services tax, especially in Africa, due to concerns about unilateral approaches and the effectiveness of current tax justice frameworks.

Acknowledgment is made of the pivotal role individuals play in global initiatives, highlighting the importance of recognizing both past efforts and the need for evolving mandates to address contemporary challenges effectively.

The evolving nature of illicit financial flows is discussed, emphasizing the shift from illegal to legal activities and the need to distinguish between illicit and illegal practices to combat financial crimes effectively.

The importance of setting priorities for the Global South is stressed, redirecting attention from bilateral issues like ISDS to multilateral concerns in achieving progress in international trade and tax matters.

The speaker highlights the importance of recognizing setbacks and crucial goals for the FFD4 conference. Mentioned examples include Japan and China not following Western actions on interest rates, leading to East Asia gaining an advantage. The reduction in China's lending since 2016 is noted, emphasizing the need to acknowledge self-interest in the global North. The advocacy for Special Drawing Rights (SDRs) as a means to increase funding for SDGs and climate initiatives is discussed, with a focus on preventing China from dominating third-world financing.

The speaker acknowledges UNECA's involvement in combating illicit financial flows and expresses concern over its declining strategic role. Reference is made to Amdallah Hamdok's contributions in setting up the MBEKI panel and providing support. The decline in ECA's role is linked to the lack of follow-up on the MBEKI report's recommendations, impacting the fight against tax evasion and aggressive tax avoidance. The need for renewed focus on ECA's technical support for progressive actions is emphasized.

The speaker discusses the EC's reclaiming as a United Nations organization and its shift from a Pan-African institution. Mention is made of Dr. Hamdok's role as Deputy Executive Secretary and Chief Economist, along with Ambassador Di Paolo's involvement in the UNBEIQI Panel. The speaker highlights the importance of clarifying roles and responsibilities of institutions in addressing illicit financial flows. Concerns are raised about ECA's diminished capacity and the need for new approaches to drive the anti-corruption agenda.

A declaration was made in 2020, complemented with the Common African Position on Asset Recovery (CAPAR), to support the process of asset recovery, repatriation, and reparation. Legal experts caution about the complexity of legal processes involved in these matters.

Questions arise about whether African-owned institutions like the African Development Bank should fund UN organizations for implementing decisions at the national level. Concerns are raised about the role of UNECA in implementing African Union decisions.

Struggles are faced due to upcoming leadership changes in African institutions like the African Development Bank and the AU. The continuity of initiatives is at risk, and efforts are being made to ensure stability amidst these transitions.

Maintaining consistency in initiatives over time is challenging in many African countries. The continuity of efforts from national to global levels is complex, with countries like Namibia and the DRC facing difficulties in addressing issues like illicit financial flows.

Emphasizes the need to keep issues on the national agenda to ensure effective global attention and action. The coordination between national and global levels is highlighted as a significant challenge that requires addressing for impactful outcomes.

Stresses the importance of maintaining existing mandates without reopening discussions to prevent losing progress. The need for continuity in certain mandates is crucial for ongoing success without unnecessary revisiting of established frameworks.

Advocates for ensuring taxes are paid where economic activities occur, especially in the digital realm. Emphasizes the importance of effective dispute resolution mechanisms and cautions against mandatory binding arbitration in international agreements.

Highlights the distinction between illicit and legal financial flows, emphasizing the legislative aspect of making activities illegal. Nuances in addressing illicit financial flows are crucial for effective anti-corruption efforts.

Underlines the necessity of taxing economic activities at their origin, as discussed in the context of digital services tax. Calls for integrating this principle into a UN Convention on taxation to ensure fair and effective tax practices globally.

Clarifies that Norway abstained from voting on certain issues, unlike countries like Japan that voted against. European member countries, including Norway, took a specific stance during the voting process.

Africa championed the dispute settlement process, but it is crucial for the Global South to actively participate in shaping the outcome. Negotiations, like those for the International Criminal Court, may face opposition but can lead to beneficial agreements over time.

Senegal's ambitious investment in a data center surpasses current needs, emphasizing the importance of information sharing and database management. Collaboration among countries, like Nigeria's exemplary work, should focus on shared technologies while incorporating unique national specifics.

Acknowledgment and appreciation were expressed for the engaging panel discussion, highlighting the importance of the topics covered and the need for continued collaboration and dialogue.

A brief coffee break was announced to be followed by two more sessions, with a request for attendees to return promptly. A proposal to reschedule the last session on the feminist perspective to the following morning was made to streamline the agenda.

The panel discussions on domestic resource mobilization in resource-intensive economies were set to resume, chaired by Ahmad Zwepi Tamu Kamoyo. Ahmad Zwepi's extensive background in social policy and development positions him well to lead the discussion on Africa's potential for growth and sustainability.

Hama from the Institute for Economic Justice in South Africa introduces the panelists. Reza Gossi, Executive Director of First Source Money in Pretoria, South Africa, and founding member of Monetary Reform International. Tete Omekwaje, Head of Programs at Third World Network Africa, with expertise in international trade and investment policy negotiations.

Hama discusses the importance of reconceptualizing domestic resource mobilization for developing countries like Africa. He emphasizes the need to rethink the phrase and process of raising and spending funds for development. The discourse focuses on mobilizing existing resources rather than creating new ones.

The concept of mobilization, which involves activating human and institutional capacity for development, gained prominence at the UN Funding for Development Conference in Monterrey, Mexico in 2002. This idea emphasized countries sourcing resources internally through savings to drive investment and economic growth.

The theoretical foundation of domestic resource mobilization lies in classical and neo-classical economics, suggesting that economic growth stems from existing resources like savings. Developing countries, lacking sufficient domestic resources, often rely on external sources like colonial masters for funding, leading to a focus on taxation as a primary means of resource mobilization.

Taxation plays a crucial role in public resource mobilization, building state capacity, and fostering accountability to society. Developing countries, including those in Africa, emphasize taxation as a key component in achieving sustainable development goals and enhancing state capacity.

Effective mobilization and utilization of domestic resources, underpinned by national ownership, are essential for achieving sustainable development goals. Initiatives like the tax initiative, though not solely African-led, highlight the significance of public resource mobilization in shaping ties and accountability within society.

To broaden resource mobilization, strategies include enhancing revenue administration, modernizing tax systems, implementing progressive tax policies, improving tax collection efficiency, and addressing illicit financial flows. Development partners play a crucial role in supporting African countries to enhance tax capacity building and domestic resource mobilization.

The G20 meeting in Brazil, scheduled for a month from now, and the IMF document from June 2024 emphasize the importance of developing countries, particularly in Africa, to enhance their tax capacity. This focus on taxation is expected to be reiterated at the upcoming G20 meeting in South Africa, highlighting the significance of building tax capacity for sustainable growth and development.

The discussion delves into the historical context of capital accumulation and taxation, questioning the prevalent emphasis on taxation as the primary source of domestic resource mobilization. While acknowledging the role of taxation, the speaker challenges the notion that taxation alone can drive sustainable growth and development, advocating for a shift towards a more comprehensive approach to financing that includes other sources beyond taxation.

The conversation shifts towards the relationship between investment and financing, highlighting a paradigm shift in understanding. The speaker argues that investment is not solely determined by savings, as traditionally believed, but is rather a consequence of financing. This perspective challenges the conventional wisdom that savings drive investment, emphasizing the importance of mobilizing financing from various sources for capital accumulation and economic development.

The speaker underscores the critical role of banks in capital accumulation, emphasizing their function as creators and manufacturers of money. Contrary to the contemporary view that banks are merely financial intermediaries, the speaker asserts that banks play a pivotal role in financing economic growth through credit creation. This perspective calls for a reevaluation of the role of banks in driving capital accumulation and economic development.

The discussion concludes with a call to shift the focus of Financing for Development conferences from taxation to banking. The speaker advocates for a reexamination of the traditional reliance on taxation as the primary source of domestic resource mobilization, proposing a greater emphasis on credit creation through the banking system. By recognizing banks as key players in capital accumulation and economic growth, the speaker highlights the need for a paradigm shift in approaching development financing.

The speaker criticizes the IMF's suggestion for African countries like Ethiopia, Accra, and Pretoria to devalue their currency, emphasizing the need to focus on creating domestic banks instead of relying on international markets. He argues that the global financial architecture exploits Africans and the global South, advocating for a shift towards domestic banking systems similar to Germany's public banks and China's community banks for sustainable development.

The speaker rejects the IMF and World Bank's emphasis on raising taxes and external financing for domestic development, highlighting the importance of domestic resource mobilization. He stresses that African countries should not depend on external sources for financing, except for international trade purposes, and calls for negotiations to prioritize money and banking for sustainable economic growth.

The speaker emphasizes the macroeconomic significance of public and commercial banks in the development of the global South. He suggests that creating public banks or mobilizing private commercial banks to generate money internally is crucial for economic sustenance, rather than borrowing from external sources. He underscores the pivotal role of banking institutions in shaping the economic future of regions like Africa.

The speaker, a newcomer to discussions on multipolarity and domestic resource mobilization, acknowledges Dr. Nkosi's insights and poses two questions. He calls for a reevaluation of the concept, approach, and parameters of domestic globalization at national, regional, and international levels. He highlights the need to understand power structures within international governance to navigate issues related to multipolarity effectively.

The speaker recounts Kwame Nkrumah's diplomatic approach to nationalizing British gold mining companies in Ghana in the mid-1960s. Nkrumah emphasized the importance of these companies for employment, social impact, and resource leverage, challenging the perception that they were solely for revenue generation. This historical anecdote underscores the multifaceted significance of nationalization for developing nations.

In the past, discussions on the mineral sector focused not only on revenue generation but also on creating employment, social impact, and transformative changes in the economy. This approach considered a range of instruments beyond finance, emphasizing the state's role in deploying resources for various uses.

In 1980, the World Bank advised Ghana and other African countries to prioritize revenue generation from minerals through taxation, moving away from social impact and job creation. The emphasis shifted to corporate income tax as the primary form of taxation, neglecting other levies previously used for development funding.

Neoliberalism shifted focus from a diverse range of resource mobilization instruments to primarily corporate income tax and value-added tax. This approach neglected the structure of African economies, leading to ineffective resource raising methods that did not align with the economy's needs.

The application of corporate income tax did not reach many involved in the rural economy, where resources were not saved in monetary forms. Import duties played a significant role in revenue generation, even in countries like Britain until the 1970s, highlighting the importance of considering diverse revenue sources.

There is a call to reconsider domestic resource mobilization in alignment with the specific structure of each economy, moving beyond growth to focus on transformation. This process involves mobilizing both monetary and non-monetary resources to drive economic change and capture economic surplus for reinvestment.

In a typical African economy, economic surplus is generated from mining and pan-commodity exports. However, about 70% of the population is involved in small-scale agriculture, creating economic surplus that is often fragmented and not immediately reinvestable. Various financial and non-financial instruments, from national public banks to producer associations, have been created to capture and reinvest economic surplus in post-independent African countries.

Resource mobilization involves a range of institutions, including national public banks, rural banks, and agricultural technology banks, aimed at generating resources and channeling them to vulnerable areas. Non-financial institutions like producer associations and rural technology associations also play a role in expanding resources for reinvestment. The literature from Canada to Japan emphasizes the importance of institutions backed by the state in directing resources effectively.

The challenge lies in returning to a developmental notion of economic surplus and resource mobilization. The fragmentation of instruments in the FFD process has led to a disconnect between experts, policymakers, and resource organizations. The ability of the state to have policy space within international economic policy instruments and regimes, such as international investment agreements, is crucial for effective resource mobilization.

The international investment regime poses challenges, as seen in the example of the investment facilitation agreement discussed at the ministerial conference in Abu Dhabi. Countries like China, South Korea, Brazil, EU, and the US sought an investment facilitation agreement, but India and South Africa opposed it. This highlights the complexities of multi-polarity and the need for effective international investment agreements for sustainable economic development.

A multilateral agreement involving African countries, Brazil, and China has been rejected, with these countries fighting against it. In 2024, a repackaging instrument finds China and the EU on one side, while Africa and India, as developing countries, oppose it. The disagreement stems from antagonism and geopolitical differences, with China and the EU having a common interest in adopting an international framework for investment management that affects African countries' policy space and capacities.

Beyond geopolitics, imperialism is seen as capital exports for profit. China, a major exporter of capital, invests significantly in Africa, including in financial companies and lithium mining in the US to compete with Tesla. The movement of capital drives geopolitical differences between China, the US, and others, leading to converging interests that impact Africa's financial flows and capital interactions.

The heart of the global system lies in the movement of capital, influencing geopolitical differences and converging interests between major players like China and the US. Capital interests drive international agreements, with African countries accepting agreements influenced by capital flows and profit motives. China's role in inviting African countries to join investment agreements showcases how capital interests shape multilateral systems.

Rethinking domestic resource mobilization requires strategic planning at both national and international levels. International economic governance involves not just East-West antagonism but also convergence of interests. African countries need to strategize on domestic resource mobilization within the international order, considering the implications for economic governance and cooperation within the African Union.

Creating local-denominated money at a domestic level is crucial for economic development. The ability to generate money locally, such as for infrastructure projects like roads, plays a significant role in economic growth. Understanding the dynamics of creating and utilizing local currency is essential for sustainable development and financial stability.

Building a road from Bybridge to the other side in Zimbabwe poses challenges due to the lack of equipment, leading to the need to import most equipment. The country faces issues with machinery and local currency creation, often resorting to using U.S.-dominated money. The Zimbabwean government has attempted to create local money through successive regimes, resulting in devaluation.

African countries are advised to be strategic in domestic resource mobilization. This strategy involves going beyond creating local money and focusing on undertaking measures for effective resource mobilization. The discussion emphasizes the importance of strategic planning and implementation in African countries.

Taxation plays a crucial role in mobilizing resources for development, as highlighted by the concept of potential economic surplus. The discussion references Baran's distinction between potential and actual economic surplus, emphasizing the need for the state to appropriate surplus for productive use through taxation. Calculations in India's case illustrate the significant fiscal space that taxation can provide for development.

In a multipolar environment, countries, including African nations, have the opportunity to maneuver based on their national interests. The discussion stresses the importance of diversity in a multipolar setting, allowing countries to assert their national interests similar to major global players like China. The narrative encourages countries not to see themselves as victims but to strategically navigate their national interests in a multipolar world.

Linwood Tauheed from the University of Missouri-Kansas City, known for pioneering work in monetary theory, M&T, appreciates the opportunity to speak at the conference. He acknowledges the crucial role of banks in creating money and emphasizes the need for both bank and government-created money. Tauheed highlights the perspective that money is not the most critical factor for development, citing the importance of resources beyond monetary value.

Tauheed discusses his community economic development work in Kansas City, emphasizing the misconception that money is the sole requirement for development. He points out that distressed communities often overlook other valuable resources such as vacant lots, unemployed individuals, and skilled elders. By leveraging these resources effectively, Tauheed suggests that the need for excessive monetary investment can be reduced, promoting sustainable development.

Tauheed advocates for evaluating multiple resources before estimating the monetary requirements for a project. He stresses the importance of utilizing community resources such as knowledge, skills, and available land before seeking external financial assistance. By prioritizing local resources and collaboration, Tauheed believes that projects can be executed more efficiently and sustainably.

Tauheed highlights the significance of trust as a crucial resource for the acceptance and circulation of locally created currency. He emphasizes that trust cannot be purchased with money but must be cultivated within the community. By establishing social capital and fostering trust, the value of locally generated money can be enhanced, promoting economic growth and sustainability.

Tauheed reflects on the role of money in development, suggesting that while essential, its significance is often overemphasized. He aligns with the perspective that focusing on resources rather than monetary value is key to sustainable development. Tauheed appreciates the emphasis on resources brought out by the discussion, indicating a shift in perspective towards a more holistic approach to economic growth.

Tauheed echoes the sentiments of previous speakers, emphasizing the importance of a resource-centric approach to economic development. He appreciates the insights shared by Grace and emphasizes the need to prioritize real resources and goals over monetary considerations. Tauheed advocates for viewing domestic resource mobilization within the framework of industrial policy, highlighting the technical and material aspects of resource creation.

Taxing sectors that do not generate foreign exchange versus taxing sectors that generate foreign exchange is crucial for capturing foreign assets, preventing foreign debt issuance, and defending exchange rates. The agenda of domestic resource mobilization needs to shift towards a material and technical approach, including mobilizing the idle workforce.

Women subsidize the economy by generating 50% of the total value worldwide, contributing to primitive extraction and theft of natural resources. The surplus is not only based on worker exploitation but also on nature theft and historical colonial extraction.

Discussion on fiscal instruments beyond taxation like tariffs, payment for right of use, and quotas, and their impact on international trade dynamics. The convergence of fiscal and trade arenas raises questions on modifying the international regime to address disputes arising from the use of such instruments.

The current focus on domestic resource mobilization is deemed misleading, advocating for a shift towards capital accumulation as the primary source of growth globally. Emphasis on utilizing resources for development and moving away from agendas driven by international institutions like the IMF, OECD, and World Bank.

The discussion highlights the importance of debt management in Africa, emphasizing the need to redirect resources from the continent to the global north. Academics and civil servants in Africa are urged to fight against this trend to ensure economic stability and growth in the region.

The speaker references Zimbabwe's history of hyperinflation, drawing parallels with countries like Germany and Venezuela. The devaluation of the Zim dollar was attributed to Zimbabwe's productive capacity, leading to the need for importing capital equipment while also focusing on exports to generate foreign revenue.

The conversation shifts to the importance of deploying credit to the productive sectors of the economy in Zimbabwe. The emphasis is on supplying credit to sectors that can earn foreign revenue to facilitate the purchase of capital equipment for infrastructure development, such as creating a road between Bettebridge and Johannesburg.

The speaker discusses the historical context of resource liberalization in Africa post-independence, highlighting the use of monetary, financial, and non-financial instruments to mobilize resources. Examples like the Post Office Savings Bank are cited as tools to encourage savings and investment, emphasizing the importance of revisiting past strategies for economic development.

The discussion delves into the interplay between geopolitical differences and economic compulsion, particularly focusing on China's behavior in global economic forums like the G20 and the IMF. The speaker suggests that African countries need to navigate multipolarity strategically, recognizing common agendas among global players while being mindful of international regulatory effects that may limit their policy space.

The speaker highlights the challenges faced in mobilizing domestic resources in Africa, emphasizing the need to rise up to the possibility of multipolarity and difference. The discussion touches on the limitations faced by economies that have been focused on public policy for managing budgetary constraints, with a particular focus on the situation in Senegal where the national private sector and international private sector combined contribute less than 20% towards development funding.

The speaker delves into the diverse configurations of states in Africa, attributing their characteristics to historical factors like colonization and neo-colonialism. The discussion covers the spectrum of states from weak and fragile to failed and soft states, exemplified by Senegal as a 'soft state' incapable of solving internal problems despite engaging with external partners. The speaker emphasizes the need for African states to address internal challenges for sustainable development.

The speaker highlights socioeconomic challenges in Africa beyond financial and monetary resources, pointing out issues like underemployment and lack of career prospects for highly qualified individuals. With only a fraction of the active workforce employed in the public and productive sectors, there is a significant surplus of labor that needs to be addressed. The discussion underscores the importance of creating opportunities for national companies to compete and generate employment.

The speaker discusses the significant contributions made by religious institutions like the Catholic Church and mosques in creating jobs and investing in infrastructure in Senegal. Despite religious organizations playing a key role in job creation and societal development, there is a call for broader societal engagement in national construction efforts. The speaker questions why religious groups are willing to invest in buildings but reluctant to contribute through taxes for national development.

Tax is not a prerequisite for government spending, and tax revenues are not a constraint on government spending. However, tax is still important as it can be used to mobilize, reallocate, and redistribute real resources from the private sector. Other methods like regulations, state planning, and direct state employment of resources can also prevent wealth accumulation in the hands of oligarchs.

Money plays a crucial role in mobilizing resources. Discussions on developing domestic financing and mobilizing domestic resources should not overlook the importance of the global financial and monetary architecture. It is essential to reclaim the rights to govern and design the international monetary and financial system for the benefit of all, rather than relying solely on alternative financing systems.

In most African countries, challenges persist due to a lack of political will and leadership issues. Civil servants have highlighted challenges that need to be addressed collectively as a continent to prevent the failure of efforts. Building on existing challenges and addressing them is crucial for progress and development.

Taxation is important for economic development, but there is a concern about being driven by neo-colonial projects that benefit the global North at the expense of the developing South. Deploying money appropriately in sectors that enhance human capacity and other necessary capacities is vital. It is crucial to resist agendas that perpetuate poverty in developing regions for the benefit of others.

Logistical arrangements for the meeting include starting earlier at 9:00 AM to accommodate an additional session before lunch. Participants are requested to be in the lobby of the Radisson Blu by 8:15 AM. Name tags will be reshuffled, with speakers positioned at the front and others in listening mode at the back. A networking dinner will be held at the Radisson Blu, offering finger food, wine, and beer from 7:30 PM onwards.