The "HOPE for Africa" legislation provides trade remedies that can be embraced by both working American and Africans because it raises the living standards of both. It does not raise some African living standards at the expense of lowering some American living standards. It is also good for long term business development and economic investment because average workers on both continents will be able to buy goods and services they produce and, in the process, build a fairer and more perfect economic world.

These are the four initiatives of the bill:

* Debt cancellation

African business development is not possible with 20% of all African export earnings now going into debt payment and no local credit markets possible. This debt that has been repaid many times over, but with compound interest and new loans to pay the interest of old loans, this debt will never be 'offically' satified. This debt must be wiped clean, a demand of the worldwide religious jubilee 2000 campaign. Thus the HOPE for Africa Act calls for cancellation of African foreign debt, starting with the relatively small debt owed to the United States covering the IMF, World Bank and private sector loans.

* African sovereignty to choose economic policies

The key principal underlying these goals, as specifically set forth by the African Finance Ministers in the Lagos plan for freedom for each African country to self-determine what economic policies suit the needs to their people and development.

* Sustainable economic opportunities

Grants African countries quota-free, duty-free market access for all goods listed under the Lome Treaty in which the United States is not a competing producer - these goods include a variety or minerals, tropical oils, and processed foods among other products.

* Restoration of equal treatment for Africa concerning foreign aid

To restore Africa's budget line item , for foreign aid, with a set guaranteed amount of aid not to decline below 1994 levels. This would restore parity for Africa with U.S. foreign aid treatment to other vital regions.

3. Related Cases:

Chiapas Uprising and Trade - Case 361

Border Waste Trade: U.S. and Mexico - Case 85

Legal Elephant Ivory Trade - Case 484

I.D.E.A..S Homepage - Africa Project

NAFTA Case 49

Oil Pollution in Ogoniland - Case 149

4. Draft Author: Rebecca M. Brisch - April 7, 1999

II. Legal Clusters

5. Discourse and Status: Disagreement - In Progress

The case of support for either a trade bill with Africa or a development bill is testimony of the battle between economic self-interest and humanitarian ideals. Now as much of sub-Sahara Africa is striving for stability socially and economically the U.S. has taken the initiative to be the first to invest in the future of these African nations with the introduction of a free trade bill. The first bill was H.R.1432 "The African Growth and Opportunity Act" which traveled through Congress with few reservation and was later passed by two-thirds of its members. Members voted for the bill knowing that it was not perfect but believed that their concerns about the bill would be addressed and remedied in the Senate proceedings (Waters). The bill then traveled to the Senate to be further considered and scrutinized.

It was introduced to the full Senate as S.778 and was met by strong opposition and an unwillingness by its proponents to consider possible amendments and adjustments. This failure to compromise helped to urge dissatisfaction and the ultimate failure of the bill in the Senate. It was the belief of several members of Congress that amendments would be instituted by the Senate for partial cancellation of Africa's debt and would include plans for social programs to be established. The bill lost a great deal of support in both the Senate and the House when the Senate Finance Committee stripped away important provisions dealing with possible debt relief programs and added a "Fast- Track" legislation clause (Senate Finance).

The 106th Congress saw the reintroduction of the "African Growth and Opportunity Act" but it was without the co-sponsorship of Senator Richard Lugar who has shown some support for the alternative development bill. In February of 1999 the H.R. 772 "HOPE for Africa Act" was introduced in rejection of implementing a free trade agreement between the United States and Africa. Both of these bills are currently being discussed in Congress.

6. Forum and Scope: Sub-Sahara Africa - Bilateral

The dispute between the Crane-Lugar act and the Jackson act involves the lives of millions of Africans and holds the fate of the sub-Sahara region. It is not clear which will produce the most fruitful result but we can looks back to past experiences between the U.S. and developing countries. The most recent case is the economic devastation that was recently experienced and still continues to occur in Mexico as a result of NAFTA (Free Trade). This free trade agreement linking the United States, Mexico and Canada and forced Mexico into a further unstable economy in an attempt to compete with the developed economies of the U.S. and Canada. The "African Growth and Opportunity Act" seems to be designed explicitly to secure U.S. corporate interests at the expense of the interests and needs of the African majority and the sovereignty of their nations. Africa is a fragile continent that needs the support of the United States and other countries but not at the cost of the African people. The "HOPE Act" looks to rebuild from the bottom up by giving Africa a new beginning on solid ground. The outcome can only be speculated. Proposed incentives of this nature have not been able to fully achieve the original aspirations. This was due to the fact that they never fully implemented the plan with confidence and determination. We are living in a time of change and if we wish to have a future we must make the commitment to rebuild an independent and stable Africa.

7. Decision Breadth: 48 Countries of sub-Sahara Africa

The decision will have a substantial impact on all Forty-eight nations as it is their future on the line in the legislation being debated. The outcome of this policy will determine the level of development and the ability for these countries to maintain economic and political stability. Africa has been involved in a lot of internal conflict due to the implications of relative deprivation. People are unable to provide for their families, there is a high mortality rate, instability within the government and corruption are serious problems. Africa is shifting in an upward development swing and the international community needs to take advantage of the situation. If the United States does not take advantage of the international attention that is being given to Africa the continent might slip to a point where no form of development can reach a satisfactory level of success. While the failure of Africa will have no significant bearing on the welfare of the United states, its success will make way for a wide array of potential opportunities in both communities to live a better life.

8. Legal Standing: Bill in Congress

The resolution to this issue might manifest itself in the form of a free trade bill between the nations of sub-Sahara Africa and the United States. If this is the final decision it will be the result of fast-track legislation by President William Jefferson Clinton. The alternative possibility will be in the form of development programs to the sub-Sahara region beginning with basic social programs promoting self-determination and state sovereignty. There will be many objections and amendments leading to the implementation of this bill and for the most part will not be pasted in its entirety. The most likely, but not necessarily the best, outcome to this debate will be a compromise of both of these bills. The problem is that both sides are standing firm in their beliefs and the bills are establishing programs that would in many senses be counter productive.

III. Geographic Clusters

9. Geographic Locations:

a. Geographic Domain: Africa

b. Geographic Site: Sub-Sahara Africa

c. Geographic Impact: Sub - Sahara Africa

10. Sub-National Factors: No

Pressure is coming from interest groups in both the United States and Africa. While other countries have an interest in the out come of the final form that a U.S. foreign economic policy will take if an agreement can be met. They are not asserting pressure either way they hope to ride along on the coat tails of international action by the United States. The development of Africa has given attention of humanitarian groups around the world. For those organizations that are devoted to the African cause this legislation in the form of the "HOPE Act" seems to be the light at the end of the tunnel. The research has been well formulated and groups are unwilling to step down from their platform to get this bill passed in its entirety. One of the strongest organizations leading this fight is TransAfrica. The seek to help Africa gain its severity and insure that the people have the right to self-determination.

Human rights organizations such as Human rights Watch and Amnesty International also realize the importance of the Jackson legislation. It provides the ways and means to institute a successful program to educate the region on their basic economic, social and cultural rights. The sub-Sahara region is of interest to the human rights community because of recurrence of acts of genocide and the long history of denial of indigenous rights. It has been difficult to establish efficient programs with a strong international backing. When the "HOPE for Africa Act" is passed they will be able to setup comprehensive programs to ensure the development process will be a success.

The Crane-Lugar act has the financial backing of the lar"> 

11. Type of Habitat: Tropical Rainy Forest and Savanna

12. Type of Measure: Bill in Congress

The "HOPE for Africa Act" is still being discussed."> 

11. Type of Habitat: Tropical Rainy Forest and Savanna

12. Type of Measure: Bill in Congress

The "HOPE for Africa Act" is still being discussnd any trade measures would impede on this progress. This bill is an act of humanitarianism and will require the United States to remain patient will the programs are implemented. When this bill is passed it will require a delayed return on our investment of manpower in the sub-Sahara region but the results will be three-fold. The trade agreement is in the interest of the United States to gain direct access to the natural resources of Africa. If the "African Growth Act" is implemented is will be and any trade measures would impede on this progress. This bill is an act of humanitarianism and will require the United States to remain patient will the programs are implemented. When this bill is passed it will require a delayed return on our investment of manpower in the sub-Sahara region but the results will be three-fold. The trade agreement is in the interest of the United States to gain direct access to the natural resources of Africa. If the "African Growth Act" is implemented is will be a program of "Fast-Track" legislation directed by the President William Jefferson Clinton.

13. Direct v. Indirect Impacts: Both

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: Yes

b. Indirectly Related to Product: Yes

c. Not Related to Product: Yes

d. Related to Process: Yes

15. Trade Product Identification: Agriculture and Raw Materials

16. Economic Data

Despite areas of instability, Africa's economic trends remain relatively positive. Africa has thus far weathered the global financial crisis, unlike many other developing economies. More than 30 countries --two-thirds of African nations -- continue to implement far reaching macroeconomic reforms, including liberalizing trade and investment regimes, reducing tariffs, rationalizing exchange rates, ending subsidies, and stabilizing their currencies (African Development Bank). The continent's 15 stock markets are open for business, with over 1,000 companies listed. And large organizations such as the Southern African Development Community and the revitalized East African Community are moving the past few years, raising over $2.3 billion in government revenue to invest in infrastructure, education, public health, and economic development (African Development Bank). The continent's 15 stock markets are open for business, with over 1,000 companies listed. And large organizations such as the Southern African Development Community and the revitalized East African Community are moving Schoolbook">But what is really remarkable is Africa's vast potential for tomorrows creative entrepreneurs, especially in areas such as telecommunications and agribusiness. Telecommunications growth potential is incredible because the industry has yet to be introduced to the vast majorities. There is considerable promise for a range of other consumer industries as well. The majority of the African population is under the age of 15 because there is a cultural trend to have large extended families. IntroductioSchoolbook">But what is really remarkable is Africa's vast potential for tomorrows creative entrepreneurs, especially in areas such as telecommunications and agribusiness. Telecommunications growth potential is incredible because the industry has yet to be introduced to the vast majorities. There is considerable promise for a range of other consumer industries as well. The majority of the African population is under the age of 15 because there is a cultural trend to have large extended families. Introduction of the internet was a complete success though the funding for equipment has been sparse and the development opportunities are abundant. This is why it is imperative that a development agreement be set into motion and sustainable development be achieved in Africa.

Even with these improvement it could all be lost with the wrong type of relationship between the U.S. and Africa. The problem is that the IMF, the World Bank and other international lending institutions and aid agencies have forced African nations to adhere to "structural adjustment programs." These programs orient economics toward export production, placing downward pressure on wages, encouraging unsustainable resource exploitation and undermining food security. This lead to to major reductions in government spending, including in the critical areas of education, health care and environmental protection; and they particularly harm women, who are most severely hurt by the elimination of the social safety net and policy neglect (Robinson). This economic data shows the potential of Sub-Saharan Africa's growth and economic potential but it is a delicate situation that needs to be handled carefully so not to send the region into a downward spiral.

17. Impact of Trade Restriction: Low

18. Industry Sector: Agricultural and Raw Materials

19. Exporters and Importers: United States and Sub-Sahara Africa

Sub-Saharan African trade continues to play a marginal role as a share of trade between the United States and the world, and between the United States and other developing regions. In 1997, Africa accounted for only one percent of U.S. trade with the world and only five percent of total trade with developing countries (USAID, Sub-Sahara). A large portion of Africa's imports to the United States were for petroleum an industry run by American companies and one that has created a poor reputation throughout the region. South Africa is the largest importer of American goods due to its relative economic stability in comparison to its surrounding countries. By looking at the pie charts below the distinction between the stability of a develop country is demonstrated in its imports and exports. The United States has a higher technological capacity so it is able to export higher priced finished products resulting from a skilled labor force. Sub-Sahara Africa is exporting natural resources and raw materials that do not require a high level of modern technology or a highly skilled labor force. Africa is more reliant on the exports of the U.S. than we are on their imports. It is in the interest of U.S. corporations to gain direct access to the the resources and tap into the human capacity of the potential African labor force.

V. Environment Clusters

20. Environmental Problem Type: Biodiversity and Pollution

Sub-Sahara Africa is endowed with rich and diverse ecosystems- - from sparsely populated rain forests to densely populated savannas and drylands and from flat coastal zones to plateaus and highlands. Africa, however, faces enormous environmental challenges, including spreading deserts, shrinking forests, biological diversity loss, threatened coastlines, and water pollution. Natural disasters, population growth, civil strife, refugee migrations and infectious diseases compound these problems.