Mark Schiefelbein/AP
By Abubakar Hashim
The ongoing shutdown in the US is not new and is not limited to the Donald Trump administration, though it has been more frequent under him.
In November 1995, under President Clinton, a five- day shutdown was declared, followed by a 21- day shutdown in the following month in December 1995.
President B. Obama declared a 10- day shutdown in October 2013. Current President Trump has declared the highest rates of shutdown. He declared a three- day shutdown in January 2018 and a 35- day shutdown in December 2019, both during his first term presidency. He has again declared another shutdown, still ongoing.
According to the BBC, this happens when parts of the US government close until the government can decide on spending plans.
”Many federal agencies close down, so that potentially hundreds of thousands of government employees have to take a leave of absence, often without pay.
Services such as national security, electricity generation and air traffic control continue, but others considered non-essential, like visa and passport processing, could be delayed.”
Implications for Africa
*Shutdowns crippled economic activities and services.
*African travellers and businesses will feel the negative effects.
*African goods and services will be affected. In this category, are agricultural produces that are perishable. There are currently skeletal services at various US air and sea ports.
*It will tremendously deteriorate the already declining trade balance with the US, resulting from the abolition of AGOA by the Trump administration
Boom To China, Other New Trading Partners
The negative effect of the ongoing US shutdown, is a boom to China and other new trading partners. African countries will open new trade deals with new entrants.
Trump will press hard to call off the shutdown, as intensive negotiations with the Democrats in tbe Senate and the House are ongoing.
No one knows how long the current shutdown will last. The longest shutdown was in 2019, for 35 days, under current President Trump.
On the current shutdown, BBC reported the reason:
”The US federal government has shut down after Republican and Democratic politicians failed to resolve a budget dispute.
It means that some, but not all, US government services are temporarily suspended, and 40% of the federal workforce – about 750,000 people – are expected to be put on unpaid leave.
Although budget confrontations are common in US politics, this spending fight is especially tense because President Donald Trump has drastically reduced the size of the national government since taking office, and has suggested he may use the current impasse to make further cuts.
Under the US system, the different branches of government have to reach an agreement on spending plans before they can become law.
The Republicans currently control both chambers of Congress. But in the Senate – or upper chamber – they are short of the 60 votes needed to pass the spending bill, which gives opposition Democrats some negotiating power.
They want to see an extension of expiring tax credits which make health insurance cheaper for millions of Americans, and for a reversal of Trump’s cuts to Medicaid, a government healthcare programme used by millions of elderly, disabled and low-income people.
Democrats also oppose spending cuts to government health agencies.
A stopgap bill designed to avoid the shutdown was passed in the House, or lower chamber, but did not clear the Senate.”
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