The provided text discusses the European Union’s approach to development and investment, particularly through its Global Gateway strategy. Here’s a breakdown of the key themes and arguments:
Core Problem:
Imbalance in Value Chains: Developing countries often extract or produce valuable resources but retain only a small fraction of the final value. This is illustrated by the example of an African cashew being processed in Asia and exported to europe, wiht limited benefits for local communities and high environmental costs.
Investor Hesitation: Investors seek safe, long-term returns, but are deterred by a lack of predictability, transparency, and robust regulatory frameworks in some developing countries.
Lack of Local Capacity: Local partners in developing countries need the capacity to build value chains that align with their strengths and priorities.
EU’s value-Based Model (Global Gateway):
The EU’s approach aims to tackle this imbalance by focusing on three key areas:
- Job Creation and Investment in Human Capital: This includes investing in skills, education, inclusion, and sustainability.
- High-Quality Infrastructure: Developing essential infrastructure to support economic growth.
- Supporting Local Ownership and Governance: Promoting reform, stable investment conditions, and local governance.
Examples of Implementation:
Lobito Corridor (Angola and Zambia): This project aims to transform a railway linking Angola to landlocked, mineral-rich regions into more than just a trade route. The EU is supporting vocational training, education, and local processing to ensure economic benefits remain in the region. Specific initiatives include:
Zambia: Grants to strengthen enduring agriculture, with technical training in beekeeping, agro-processing, and rural entrepreneurship.
Angola: Investment in vocational programs for the transportation,logistics,and energy industries.
Namibia Green Hydrogen Program: This program aims to help Namibia realize its green hydrogen potential while supporting Europe’s energy transition. It’s a prime example of long-term planning, demand-driven approach, skills orientation, and job creation, with specialized training for workers in the hydrogen and electricity sectors.
Addressing Fragility and Conflict:
In fragile settings where institutions and basic services break down, instability and unrest can follow.
Initiatives like the Global Gateway help bridge the gap between humanitarian aid and long-term development by restoring essential services and building resilience in conflict-affected areas.
Key to success:
Local Ownership: Lasting progress depends on local ownership, commitment, and resolve from national governments and local communities.
* EU’s Role: The EU’s role is to provide reliable, transparent support to its partners.
In essence, the text argues that the EU’s Global Gateway strategy is designed to create a more equitable and sustainable model of development and investment by empowering local communities, fostering skills, building infrastructure, and ensuring good governance, thereby attracting investors and creating lasting economic benefits.
