As the world reels from the economic turmoil and uncertainty unleashed by Donald Trump’s chaotic tariff policy, it is increasingly clear that the neoliberal consensus is now over, and unlikely to return.

Many countries will suffer from the immediate impact of lost dollar revenues, but we should resist the trap of defending a deeply extractive system that has inflicted a crippling combination of high foreign debt, underinvestment and climate calamities upon countries in Africa.

These inequities are underpinned by profoundly hierarchical, neo-colonial financial structures that keep the dollar on top. Through the International Monetary Fund and the World Bank, a series of Structural Adjustment Programs – economic reforms including privatisation and austerity measures – have been enforced upon African economies. These hinder economic diversification and result in a toxic blend of underdevelopment and overexploitation of natural resources to accumulate dollars.

In combination with a reliance on foreign debt, this has left many African countries in debt traps and highly dependent on the dollar. The tariff fallout, combined with declining oil prices, forced Libya to devalue its dinar currency and the Nigerian central bank to spend $198m to support its naira currency – demonstrating how the current international financial architecture leaves African countries overexposed to US policy changes.

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As a result of the hierarchical and dollar-centric financial system, 32 African countries were forced to spend more on servicing foreign debts than on healthcare in 2023. A record $1.4trn was spent by developing countries on servicing foreign debt in 2023, diverting resources away from domestic developmental priorities.

Breaking free of the current international financial system, therefore, necessitates the construction of a new financial architecture in Africa and beyond, which bypasses the dollar’s clutches.

An opportunity to forge a new financial architecture

When the dollar-based international monetary and financial system was established at the Bretton Woods conference after the Second World War, the US was the largest economy in the world at 35% of global GDP. However, with the rapid development of formerly colonised countries, the US’s share of global GDP has since consistently fallen and it now finds itself in second place at 15%, after China at 19%, when measured at purchasing power parity.

With the economic heft of the US not what it once was, financial and trade disentanglement are far more achievable than they would have been a decade or two ago. The repeated weaponisation of the dollar, and of international payment systems like SWIFT through the use of sanctions, reinforces the case for building alternative payment infrastructures based on local currencies to increase economic and monetary sovereignty.

Many countries in the Global South are already accelerating a shift to local currency financing and trade arrangements to reduce their dollar dependency. This is the primary unifier of otherwise diverging interests among BRICS members, with China already conducting half its trade using the Chinese renminbi currency.

The Pan-African Payments and Settlement System (PAPSS) was launched in 2022 and is expanding across Africa, enabling cross-border transactions and trade in local currency. PAPSS saw its transaction volumes increase ninefold in 2025, with 16 countries currently participating in the platform. Not only does this boost intra-regional trade, but it also circumvents the costly US-dominated corresponding banking systems while reducing transaction costs and foreign exchange risks.

Payment systems are becoming increasingly important economic battlegrounds due to rising geopolitical uncertainty. The likes of the EU, China, BRICS and many others are currently in the process of developing new payment platforms and new forms of money to act as alternatives to the dollar-centric traditional payment systems.

African governments and central banks could increase their economic sovereignty and financial resilience by incorporating Central Bank Digital Currencies (CBDCs) within new payment systems. CBDCs are digital forms of cash, denominated in the local currency and issued by the central bank – unlike commercial bank money, which is created when private banks make loans.

CBDCs would therefore provide fiscal benefits in the form of seigniorage revenues, that is the profits derived from issuing money, while safeguarding public money and increasing financial inclusion. In comparison to traditional payment systems, CBDCs offer further benefits in terms of reduced cost while improving security and providing instant settlement.

The current moment offers an opportunity for African countries to further develop and expand payment systems such as PAPSS in order to reduce susceptibility to the growing belligerence of US economic policy. Increasing the capabilities of Global South-led multilateral development banks, such as the New Development Bank - established by BRICS states - and African Development Bank, to provide financing in local currencies would further strengthen African currencies and provide more stable financing options than expensive dollar-denominated debt.

Together, local currency financing and increased regional trade using local currencies would significantly reduce reliance on the US and the dollar, opening up economic policy space to focus on domestic priorities rather than dollar accumulation.

We are living in an increasingly multipolar world, in which US dominance of trade and finance has been diminishing year by year. Even if building a new financial architecture is far from a simple task, Trump’s tariff tantrums are an opportunity in disguise: setting in motion a process that has long been discussed but never treated as urgent until now.

Although the local currencies of many African countries are currently reeling from the impacts of the tariffs, it is in fact the dollar that faces a long-term crisis. The erosion of its dominance could be the catalyst for a new era — one in which the voices of Africa and the wider Global South are no longer sidelined but central to reshaping the rules.

https://www.opendemocracy.net/en/5050/trumps-tariff-tantrums-boost-case-for-new-financial-architecture-in-africa

 

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YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

 

 

         Gus Leonisky

 

         POLITICAL CARTOONIST SINCE 1951.

 

https://www.youtube.com/watch?v=EPEPBhSws9k

INTERVIEW: Never ever, ever again

 

Africans have had the feeling of still being colonised, says Joseph Okechukwu, but now Ibrahim Traoré in Burkina Faso is demonstrating what independence should look like

 

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YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

 

 

UN report says aid cuts led to global development slowdown     BY Shakeel Sobhan 

 

The progress in global development slowed in 2024, raising concerns that the gains in recent years may be slipping, according to a new UN report released on Tuesday.

The annual Human Development Index (HDI) report by the United Nations Development Programme (UNDP) said that despite the rebound seen after the COVID-19 pandemic by 2023, the recovery is now losing momentum — with life expectancy and income growth stalling and the number of ongoing conflicts rising.

UNDP chief Achim Steiner warned that this "unsettling" slowdown can cause human development to "slip by decades — making our world less secure, more divided, and more vulnerable to economic and ecological shocks."

Steiner said that recent cuts to international aid by several countries, led by the United States under President Donald Trump, will only serve to make ramifications more severe.

AI access limited in poorer countries

The report heralded the age of artificial intelligence (AI) saying it offers hope for revitalizing development, but cautioned that its benefits must be equitably shared to avoid deepening divides.

It noted that access to AI is limited in poorer countries compared to wealthier ones, and cultural biases may shape how the technology is designed.

"High-income countries such as the United States, the Republic of Korea, Japan and Germany, in that order, have well-established digital infrastructures, giving them a major advantage in AI development," it said, highlighting that the most global investment in AI flowed to the US in 2024, constituting 70.2%.

"If we fail to address the injustices and divides that persist today, AI will only entrench them further," Steiner said.

Iceland on top, Germany fifth in rankings

On the HDI ranking, while Iceland and Norway topped the list, Germany and Sweden shared fifth place.

The US ranked 17th, just below Canada. India and Bangladesh were tied at 130th, with Pakistan at rank 168. Chad, the Central African Republic, Somalia, and South Sudan occupied the last spots, ranking 190th to 193rd.

Of all regions, South Asia and sub-Saharan Africa saw the least amount of development, according to the report which assesses progress in three core areas: health and longevity, knowledge, and standard of living.

https://www.dw.com/en/un-report-says-aid-cuts-led-to-global-development-slowdown/a-72444368

 

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YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

 

GUSNOTE: LIKE ALL COLONIALISTS, THE ROMAN (I MEAN THE AMERICAN) EMPIRE GIVES HELP WITH A STRING (I MEAN A CHAIN) ATTACHED. MOST OF WHAT IS SPENT EITHER STAYS IN THE USA OR COMES BACK IN THE FORM OF GOODIES... OR PAY THE GENEROUS SALARIES OF (THE EMPIRE — MOSTLY AMERICANS) "HELPERS"....THE USA ARE NOT THE ONLY COUNTRY TO DO SO... THE FRENCH GOT BOOTED OUT OF THE SAHEL AND Ibrahim Traoré IS MAKING PROGRESS.... HOW LONG BEFORE HE'S ALLOWED TO BE STRONGLY INDEPENDENT IS YOUR GUESS... THE AMERICAN EMPIRE WOULD BE PLOTTING TO GET RID OF HIM...

FOR DONALD'S DOGE CUTTING DOWN USAID AND NED WORKS ON TWO FRONTS:

A) SAVE CASH BY ELIMINATING STAFF AND HAND OUTS

B) MAKE DEVELOPING COUNTRIES GO BACKWARDS.... MAKING THE CRUMBLING EMPIRE LOOK MORE ATTRACTIVE TO THE UNWASHED IN THE USA.

 

https://www.youtube.com/watch?v=1joa5_726xI

Why the West Wants This African Leader DEAD

 

Watch the full show: www.kimiversenshow.com Theo E.J. Wilson is a former campaign advisor to RFK, Jr. for African-American Affairs, Journalist, Filmmaker, Slam Poet, and Activist.

 

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YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

 

Beyond the Aid Illusion: Time for the Global South to Cut the Cord

Abbas Hashemite 

With the imposition of trade tariffs on all US trade partners and the suspension of the USAID program by the Trump administration, the need for third-world countries to break free from the shackles of neo-imperialism has resurfaced.

 

Foreign Aid or Foreign Control?

The United States established the USAID program in 1961, under the presidency of John F. Kennedy, through the Foreign Assistance Act. This program, started under the veneer of assistance to developing countries, was intended to gain influence over third-world countries. The USAID program provided significant political and diplomatic leverage to the United States. However, it proved detrimental for the recipient nations, making them dependent on the US and coercing them to follow the diktats of US leaders.The contemporary international economic crisis is an alarm bell for the leaders of developing and underdeveloped countries to think about the transformation of their nations 

In 2024, the United States disbursed approximately $41 bn in foreign assistance. This aid helped the Global South to finance various sectors, including healthcare and education. However, the suspension of the US aid program once again demands that third-world countries realize that their dependence on this financial aid is merely a choice, not a necessity. They also need to recognize that the US has long been exploiting these countries to achieve its regional ambitions.

The Price of Partnership

Pakistan was lured by USAID to join the US bloc in the Cold War and assist the United States in the so-called War on Terror. Pakistan has received a total of $32 billion in terms of the USAID. However, the country has suffered an economic loss of more than $130 billion due to terrorism since 2001. It possesses one of the world’s largest gold and copper reserves in Reko Diq. However, the country is unable to extract this gold and copper due to a lack of equipment and the vested interests of its corrupt political elite. The United States covert interference in Pakistan’s electoral process and subsequent election of corrupt politicians have barred the country from utilizing the potential of Reko Diq and other mineral deposits in the country. A Canadian mining company, Barrick Gold Corporation, is given the contract to extract these minerals.

Pakistan is also forced by the United States to buy expensive fuel from international markets, despite offers of much cheaper fuel from Russia and Iran.  Afghanistan has also suffered huge economic, infrastructural, and humanitarian losses due to the US War on Terror and the ensuing corrupt and puppet government, backed by the United States, during this period. Washington provided $73 billion in US aid to Kabul from 2001 to 2020. However, the losses suffered by the nation are far beyond this amount. The immature and hasty withdrawal of the US troops from Afghanistan led to the Taliban government, increasing polarization in the country.

The African continent has also faced similar consequences of its dependence on US aid. Africa is home to the world’s largest reserves of precious minerals that are rudimentary to empower the future. The Democratic of the Congo supplies around 70 percent of global cobalt, an essential component in electric vehicle batteries. 75 percent of the total platinum and 50 percent of the world’s total palladium is produced in South Africa. Madagascar and Mozambique are home to some of the largest deposits of graphite in the world. Zimbabwe possesses the largest cesium, a significant metal for manufacturing GPS and 5G systems.

African countries are compelled to sell these raw minerals at a cheaper rate, effectively serving as colonial vessels for the Western world. They are forced to beg for aid from the very nations that are profiting from their resources. The region’s mineral reserves offer a significant opportunity for the prosperity of these countries. However, West-backed leaders and insurgencies have long barred the region from harnessing this potential. Many pseudo-analysts propose that third-world countries lack the resources, equipment, and infrastructure to process or extract their minerals.

A Path Forward: From Dependency to Self-Reliance

Third-world countries indeed lack the resources to extract and process their minerals. However, given the rising uncertainty in the evolving world order, the developing world must reorient its priorities. It is high time for the global south to break the shackles of neo-imperialism by the West and invest in research and development, and infrastructure building. They must invest in their mineral resources and build processing facilities instead of solely focusing on the exportation of raw materials. They need to build sustainable extraction and processing facilities that align with their environmental goals while strengthening their economies.

The Global South, especially African nations, must adopt a regional approach. Multilateral regional frameworks can lead to the stabilization and prosperity of the whole region. However, this is only possible through political will. Unfortunately, most of the third-world countries are ruled by a corrupt political elite. Such political leaders never look beyond the next election. The contemporary international economic crisis is an alarm bell for the leaders of developing and under-developed countries to think about the transformation of their nations. Domestic processing of the mineral resources can earn them much more money than US aid, making them truly independent and helping them build a sustainable economy.

 

Abbas Hashemite – is a political observer and research analyst for regional and global geopolitical issues. He is currently working as an independent researcher and journalist 

https://journal-neo.su/2025/05/10/beyond-the-aid-illusion-time-for-the-global-south-to-cut-the-cord/ 

 

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YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

 

SEE ALSO: 

hands off ibrahim traoré! .........