is currently (gambia) integrating africa · integration, poverty eradication, gender empowerment,...

INTEGRATINGAFRICA

Abdoulie Janneh

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Abdoulie Janneh

“Abdoulie Janneh’s stewardship at the ECA coincided with a period of steady growth in Africa and increased optimism

about the prospects of our continent. The policy statements in this book contributed to shaping our strategies, policies and programmes in the pursuit of sustainable development and economic transformation. I am sure that many senior policy

makers will find this book extremely useful.”

— Meles Zenawi, Prime Minister, Federal Democratic Republic of Ethiopia. Printed at ECA

ABDOULIE Janneh (Gambia) is currently United Nations Under Secretary-General and Executive Secretary of the United Nations Economic Commission for Africa (ECA). Mr. Janneh strategically re-positioned ECA to better support Africa’s development agenda and initiated Business Plans to operationalize the new strategic vision of promoting regional integration and helping Africa to meet its special needs. Under his leadership, ECA took

significant steps to support African countries in the area of regional integration, poverty eradication, gender empowerment, trade, financing for development, ICTs, governance, statistics, climate change, the fight against HIV/AIDS, and natural resources management.

Before joining ECA, he was Assistant Secretary-General and United Nations Development Programme Regional Director for Africa covering 45 countries with a complement of over 1,500 staff. Prior to that, he was UNDP Resident Coordinator and Resident Representative in Ghana (1996-1999) and Niger (1993-1996), as well as Deputy Executive Secretary of the United Nations Capital Development Fund (1990-1993).

Mr. Janneh remains particularly interested in the institutional transformation of the African Union and the successful implementation of the New Partnership for Africa’s Development (NEPAD), including the African Peer Review Mechanism (APRM), as critical initiatives for achieving the Millennium Development Goals.

He is the Chairperson of the Governing Council of the African Institute of Economic Development and Planning (IDEP) and of the African Trade Policy Centre. He also serves on the Board of the Global Green Growth Initiative, the Coalition for Dialogue on Africa, and as a Patron of the World Sustainable Development Forum (WSDF). Mr. Janneh was awarded the “Femmes Africa Solidarité Leadership in Peacebuilding Recognition” as well as the African Leadership Award in 2011. He has also been recognized by the African statistical fraternity for his work in promoting statistics in the continent.

Integrating Africa

Economic Commission for Africa

A b d o u l i e J a n n e h

Edited by Adeyemi Dipeolu, Chief of Staff, ECA and Adeyinka Adeyemi, Senior Regional Adviser, ECA

Additional writing Sonala Olumhense Maria Thundu Layout Ferdos Issa Cover design Tsitsi Mtetwa

© United Nations Economic Commission for Africa, 2012Addis Ababa, Ethiopia

All rights reservedFirst printing March 2012

Material in this publication may be freely quoted or reprinted. Acknowledgement is requested, together with a copy of the publication.

Printed by the United Nations Economic Commission for Africa, Publications and Conference Management Section/DPU.

iii Integrating Africa

table of contentsPart One: On the Africa Policy Agenda 1

Introduction 3Strengthening peace and security for the success of Africa’s development challenges 5Achieving the Millennium Development Goals in a challenging environment 9MeetingAfrica’snewchallengesinthe21stCentury 16TheGrandDebateonanAfricanUnionGovernment 20KeepingAfrica’simprovedeconomicperformanceontrack 25WorkingcollectivelytoachieveAfrica’sdevelopmentagenda 31StepstowardsachievingsustainablegrowthinAfrica 37Encouragingfasteranddeeperintegration 42UsingscienceandtechnologytoaccelerateAfrica’sdevelopmentprocess 46Productivecapacities,economicgrowthandpovertyreductioninAfrica 51NEPAD’scontributionstotheMDGs 54NEPADandAfrica’sregionalintegrationagenda 59

Part Two: On Regional Integration 63

Introduction 65Additionalfinancinginthepromotionofregionalintegration 68IntegratingAfrica 72WorkingtogethertoadvanceAUpriorities 76TheRegionalEconomicCommunitiesasECA’sallies 81StrengtheningcollaborationwithECOWAS 86ReapingthebenefitsoftheEconomicPartnershipAgreementsinAfrica 93OnthecapacityneedsoftheRegionalEconomicCommunities 97TakingforwardtheSouthernAfricanDevelopmentCommunity’s FreeTradeArea 100Usinggoodgovernancetopromoteregionalintegration 103DeepeningregionalintegrationtosustainAfrica’semergingpotential 109TransformingAfricaintoadestinationforforeigndirectinvestment 113Buildingproductivecapacitiesforpovertyeradication 118TradeasthebedrockofAfrica’seconomicprosperity 121ReviewingprogressinregionalintegrationinAfrica 125

iv Table of content

NEPAD’scontributionstotheMDGs 129

Part Three: On Partnerships 135

Introduction 137ForgingaseamlesspartnershipwiththeAfricanUnion 139PartnershiparoundtheAfricanTradePolicyCentre 147Gettingreadyforemergingchallenges 150Deepeningstakeholderdialogueonthefinancialcrisis 155Engagingwithfragilestates:Challengesandopportunities 158HarnessingAfrica’sfullpotentialthroughstrategicpartnerships 162Japan’sroleinthetransformationofAsiancountries:Auseful experiencetosharewithAfrica 166Enhancingcapacitiesfordevelopmentresults 175ActivatingtheUNten-yearcapacitybuildingprogramme fortheAfricanUnion 177

Part Four: On the Financial Crisis 179

Introduction 181Africa’sresponsetotheglobalfinancialcrisis 183ImplementingMonterreyConsensusatatimeofglobalcrisis 188Focusingondomesticresourcesmobilization 191Consolidatingmacroeconomicgainsatatimeoffinancialcrisis 195Involvingprivatesectorindomesticresourcemobilization 198Africaandthefinancialcrisis:Anagendaforaction 201GivinghopetoAfrica’syouth 205

Part Five: On Africa’s Special Needs 209

Introduction 211Improvingclimatedatafordevelopment 214AddressingtheimpactofclimatechangeinAfrica 219Climatechangeanditshumanitariandimensions 224HelpingAfricarespondtoclimatechangeimpact 228FacingtheclimatechangeandsecuritychallengeinAfrica 233Takingactionongenderequality,women’sempowerment andendingviolenceagainstwomeninAfrica 237ImplementingSecurityCouncilresolutiononwomen, peaceandsecurity 240Investinginscienceandtechnology 244PoweringAfricawithICTandentrepreneurship 253Formulatingaframeworkforactiontosecurelandrights,enhance productivityandsecurelivelihoods 256

v Integrating Africa

RespondingtoAfrica’sfoodcrisis 260AchievingbetterUNcoherenceinsupportoftheAUandNEPAD 263GivingsubstantivesupporttotheAPRMprocess 266InvolvingyouthinAfrica’sdevelopment 269AchargetotheAfricanyouth 272Usingknowledgeandpeerlearningtoimprovepoliciesto reducepovertyinAfrica 275GoodgovernanceforachievingtheMDGs 281WorkingtogethertopreventHIVinAfrica 286Promotingpro-poorgrowthtoachieveMDGs 290Tacklingclimatechange:theabidingchallengeofthisera 296AdoptingagreeneconomyforAfrica’sstructuraltransformation 300Theroleoflegislationandpolicydevelopmentinensuring youthdevelopmentatanationallevel 303EnhancingAU’scapacitytoachieveitsstrategicplan 308Harnessingforestsforeconomiclivelihoods 312ExploringhydropowerforsustainabledevelopmentinAfrica 315Greengrowthandsustainabledevelopmentgovernance:Rio+20andbeyond 319

vii Integrating Africa

foreword

By Jean Ping, Chairperson of the African Union Commission

Iampleasedtowritetheforewordforthiscompendiumofthestate-ments and speeches delivered bymy friend and colleague,Mr. Ab-doulieJannehwhohasapassionate,dynamicandoptimisticvisionforAfricaanchoredonhisfirmbeliefourcontinentcanplayamajorroleinglobalaffairsthroughtheexampleofoursharedvaluesandasakeycontributortoglobalprosperity.HehasaccordinglyusedhistenureasExecutiveSecretaryoftheEconomicCommissionforAfricatodrivethisagendainaninnovativeandall-bracingmanner.

ECA’s strategic orientation under Abdoulie Janneh’s leadership hasfocusedonpromotingregionalintegrationbutitalsomeantassistingAfrica to achieve its special needs by restoring neglected or previously dismantledprogrammes,deepeningofworkinexistingareasofcontin-uingrelevance,tacklingemergingdevelopmentchallengesthatareofparticularimportancetoAfricaandbuildingpartnershipsinthisregard.

Mr.JannehhasconsistentlylaidoutavisionforAfricatobecomeonestrong,robust,diversifiedandresilienteconomy,supportedbyafirst-class trans-boundary infrastructure and a highly skilled, flexible andfullyemployedworkforcelivinginconditionsofpoliticalstability.Hispositionisthatsuchprogressrequirescontinuousdebate,sharedval-ues,deepeningoftransboundarycooperationandstrengtheningoftheinstitutionsofintegration.Thisperspectiveandhiskeenpan-African-ism underpin his strong commitment to nurturing and sustaining the strongpartnershipbetweenECAandtheAfricanUnionandotherkeyactorsinthecontinental landscapesuchastheAfricanDevelopmentBankandtheRegionalEconomicCommunities.

In2005,whenMr.JanneharrivedatECA,therewasgrowingconcernabouttheabsenceofcriticalcapacitiesinthecontinentinkeyareasofdevelopment and more over the regional dimension of development wasoftenoverlooked.Underhisleadership,ECAsetabouttostrength-enitworkinthisareabyenhancingtheroleofitsSub-RegionalOfficesanddeepeningtheirrelationshipwiththeirrespectiveRECsincludingthroughtheadoptionofMulti-YearProgrammes(MYPs).Similarly,ECA

hadstoppedworkinginameaningfulwayonkeyactivitiesrelatingtoplanning and statisticsdue to the thendominantworld viewof the‘Washington Consensus’ whose adherents had dismantled planningframeworksandfeltthattherewasnoneedforAfricatogenerateitsownstatistics.

Indeed,withregardtostatistics,severalAfricanandpartnercountriestaskedhimtorestorestatisticsandstatisticaldevelopmenttothecen-treofECAconcernswhichhedidthroughtheestablishmentoftheAf-ricanCentreforStatistics(ACS),whichisalreadymakingitspresencefeltacrossthecontinent.AlthoughanumberofAfricancountrieshadalreadyrestoredplanningframeworksoftheirownaftergettinglimitedresultsfrommarketfundamentalistpolicies,theglobaleconomicandfinancialcrisisacceleratedcountrydemands forassistance fromECAforrestoringplanning frameworksandthis iswhereMr. Janneh’sef-fortstorevamptheAfricanInstituteforEconomicDevelopment(IDEP)begantopayoffwithIDEPnowplayinganactiveroleinre-buildingtherequirednationalandregionalcapacitiesforplanning.

AsthethemesofthiscompilationofMr.Janneh’sspeechesandstate-ments show, his tenure has also been devoted to deepening ECA’sknowledgeactivitiesacrossitscoreprogrammesinleadingsectorslikeAU’sNEPADprogramme, gender, food security, sustainable develop-ment, trade, ICTs, economic development, finance and governance.Mostcritically,however,ECA’sflagshippublicationsliketheEconomicReportonAfrica,theAfricanGovernanceReport,thereportonAssess-ingRegionalIntegrationinAfrica,whichhavesetanenviablestandardfordiscourseanddebateonkeyaspectsofcontinentaldevelopmentare nowbeing co-publishedwith theAfricanUnion Commission. aswellasabasisfortrackingprogressonsectoraldimensionsofdevelop-ment. Equally significanthavebeenECA’s technical contributions totheAfricanPeerReviewMechanism(APRM)andthecontinentaltrack-ingandmonitoringofprogressbeingmadetowardsachievingtheMil-lenniumDevelopmentGoals.

Whileregionalandsub-regionaleffortswillcontinuetobeparamountintacklingAfrica’sdevelopmentalneeds,itisalsoimportanttobearinmindthatallsucheffortsareframedbythenorms,rules,opportunitiesandconstraintsoftheprevailinginternationalenvironment.Itisthere-forenotsurprisingthatunderMr.Janneh’swatch,ECAhasdevelopedanicheinprovidingtechnicalbackstoppingforAfricannegotiators in

Foreword

ix Integrating Africa

globalforumsincludingclimatechange,environmentandtrade. Be-yondnegotiations,AfricancountriesandtheirRECSalsoneedtode-velopthecapacitytoimplementagreementsandutilizeopportunitiesarisingfromglobalnegotiationsthusthestrengtheningoftheAfricanTradePolicyCentreandestablishmentofawhollynewAfricanClimatePolicyCentrewhichnowassistsECAmemberStatesintheprocessofadaptingtoclimatechange.Progressinthemoderneracontinuestobedrivenbyscience,technologyandinnovationwhichiswhyMr.Jan-nehlaunchedandpromotedtheSciencewithAfricaagendatowhichtheAUC,AfDBandotherpartnersarecloselyassociated.

ThiscompilationofspeechesalsoclearlycaptureandconveyMr.Jan-neh’s vision for placingAfrica’s development prospects on fast-trackthroughtheinstrumentalityofpartnershipsandwearealreadybegin-ningtoseetheresultsofeffortsmadeinthisregard.Hehascontrib-utedinnosmallmeasuretomakingUNworkinAfricamorecoherentandproductivethroughtherevitalizationoftheRegionalCoordinationMechanismforAfrica(RCM-Africa).Hehasalsoengagedbilateralpart-ners in supportof the strategicobjectivesofAU-ECA-AfDBasmani-festedbythesuccessfulestablishmentandfunctioningoftheStrategicPartnersDialogue.Indeed,AbdoulieplayedamajorpartinhelpingtoensuretheestablishmentoftheAU-AfDB-ECAJointSecretariatSupportOfficewhichisnowupandrunningandwealsoowehimspecialthanksfor theeffort toconceptualizeandget theCoalition forDialogueonAfrica,offtheground.

It therefore gives me great pleasure to commend this compendium of AbdoulieJanneh’sspeechesandstatementstoAfricanleaders,itspoli-cymakersandpeople,Africa’spartnersandindeedthegeneralreadingpublicforabetterunderstandingofAfrica’sdevelopmentproblematic,effortsmadetoaddressitandacrosstheboardinformationaboutthecurrentconditionsinthecontinent.

Jean Ping Chairperson, African Union Commission

xi Integrating Africa

preface InNovember2005,IwasappointedUnderSecretary-GeneralandExecu-tiveSecretaryoftheEconomicCommissionforAfrica(ECA)byMr.KofiAnnan,Secretary-GeneraloftheUnitedNations,justaftercompletingasix-yeartermastheUNDPRegionalDirectorforAfrica.

My arrival at the ECA coincidedwith three significant developments:First,ahigh-levelbodyhadjustbeensetuptomakerecommendationsonimprovingtheUN,inthecontextofOne UN.Secondly,thiswasape-riodofsteadyeconomicgrowthandprogressforAfricancountriesdue,in part, to broad improvement inmacro-economic policies and goodgovernance.Thirdly,theAfricanUnionhadcommittedmorevigorouslytoregionalintegrationasacriticalwayforAfricancountriestoachievesustainable,broad-baseddevelopment.

IthereforespentpartofmytimeatECAengagedwiththetaskofre-ori-entingtheCommissiontoconfirmtherelevanceofitsroleandrestructur-ingittobetterreflecttheprioritiesoftheAfricanUnionand,inparticular,toaccompanytheintegrationvisionofitsAfricanmemberStates.Thistaskwasmadeeasywiththehelpofsomehighlydedicated,knowledge-ableandcommittedECAprofessionalswithwhomIbouncedideasonhowbesttorespondtoAfrica’smostpressingdevelopmentchallenges---foodinsecurity,achievingpro-poorgrowth,increasingintra-Africatrade,attainingregionalintegration,reducingfragmentationthroughpartner-ships,dealingwiththefinancialcrisisandrespondingtoAfrica’sspecialneeds,whichincludetheimpactofclimatechange,leveragingICTandscience for development andpromoting gender equality andwomenempowerment.

ThisbookisacompilationofsomeofthepolicystatementsImadebe-tween2006and2012onvariousdevelopmentissuesastheyaffectAf-rica.IthankAfricanleaderswhogavemetheopportunitytosharemyviewsandreflectionsattheirhigh-levelforums,especiallyattheAfricanUnionSummitsofHeadsofStates.IalsothankthemfortheirconfidenceinthequalityofECA’sanalyticalworkandforsupportingtheCommis-

xii Preface

sion’srecommendationsonvariousdevelopmentandeconomicissueswithappropriatepolicydecisions.

ThestatementsbenefitedfromtherichdiscussionsandexchangesIhadwithmanypeople,includingtheleadershipoftheAfricanUnionCommis-sion,especiallyformerPresidentAlphaKonare,Dr.JeanPingandMax-wellMkweazalamba,CommissionerforEconomicAffairs. Ialsogainedfrommy various discussions with Donald Kaberuka, President of theAfricanDevelopmentBank,PascalLamyDirector-GeneraloftheWorldTradeOrganization,andDr.IbrahimMayaki,CEOoftheNEPADAgency. Specialthanksgototwoindividualsfromwhosecollaborationandsup-portIgreatlybenefited,namelyMrMoIbrahim,ChairoftheMoIbrahimFoundationandMr.AnilSood,formerVice-PresidentoftheWorldBank.

ECAwitnessedasubstantialincreaseinpartnershipsduringmytenureandIwishtotakethisopportunitytothankthebilateralpartners,multi-lateralinstitutionsandcivilsocietyorganizationsthatworkedalongsideusintheexcitingandengagingtaskofimprovingAfrica’slong-termpros-pects.

Ireceivedsupport,criticalfeedback,andcontributions intheprepara-tionsofmystatements frommanyECAcolleaguesovertheyears, forwhichIamgrateful.IthankthemfortheirdedicationandsenseofdutyinpromotingAfrica’sdevelopmentagenda.WithregardtothepublicationofthisbookIwishinparticulartoacknowledgethecontributionofAdey-emiDipeolu,myChiefofStaffandAdeyinkaAdeyemi,SeniorRegionalAdvisoronNEPADwhohelpedtoputittogether.

Lastly,sincetheultimategoalofallknowledge,ideasandpolicyistheimprovementoflivelihoods,Ihopethatthisbookcontributestoenergiz-ingtheongoingdebateonthechallengesfacingAfricaandclarifieswork-ableresponsestowardsachievingregionalintegrationonthecontinent.Moreover,Iexpectthatresearchers,policyenthusiasts,bureaucratsanddiplomatswhodailyengage indevelopmentworkwillfindthereflec-tionsinthisbookusefulandilluminating.

Abdoulie Janneh Addis Ababa, March 2012

ONTHEAFRICAPOLICYAGENDA

Part One

3 Integrating Africa

Introduction

Onaccountoftheweightofhisoffice,anystatementdeliveredbytheExecutiveSecretaryoftheECA,inhisofficialcapacity,isan

importantone.Suchastatementisasignificantpolicydocumentbe-causeitisalwaystheproductoflonginstitutionalhoursofresearch,consultation,reflectionandplanning,backedbytheweightandin-sightoftheUnitedNations.

TheCommission’sdualprofileastheAfricaregionalarmoftheUNand—alongwith theAfricanUnion (AU)andAfricanDevelopmentBank(AfDB)—asoneofthekeycontinentalinstitutions,hassinceitsestablishmentin1958investeditwithprominenceintheadvocacyandsupportofAfricandevelopmentissues.

ThisrolehasbeenfurtherboostedinrecenttimesbytheagendaoftheAfricanUnion’sNewPartnershipforAfrica’sDevelopment(NE-PAD),thestrongsupportoftheinternationalcommunitythroughtheMillenniumDevelopmentGoals(MDGs)andotherframeworks,andthestrategicrepositioningbytheCommissiontoenableitbestsup-portthedevelopmentaspirationsandeffortsofAfricannations.

ThisemergingprofilehasconferredonECAagrowingresponsibilityandauthorityinadvancingtheAfricadevelopmentagenda,andontheExecutiveSecretaryanevenmorepowerfulvoicewhereverhespoke.AstheUnitedNations,initsreformprocess,hassoughtmore

4 Part One

waystoassistAfrica’sdevelopment,ECAhasfurthergrowninstatureandspokenoutwithincreasinginvolvement.

NowhereisthevoiceoftheExecutiveSecretaryclearerorhispassionandadvocacymoreeloquentthanatthemeetingsoftheExecutiveCounciloftheAfricanUnionCommission,theJointAnnualMeetingsoftheAUConferenceofMinistersofEconomyandFinance,andtheECAConferenceofAfricanMinistersofFinance,PlanningandEco-nomicDevelopment.Thatiswhythissegmentofthisbookisunique:itfeaturesallthespeecheshehasgivenatthesemeetingssinceheassumedofficein2006,ratherthanjustaselectionofthem.

ThisreflectstheimportanceofthemeetingsoftheExecutiveCoun-cilof theAfricanUnionCommissionnotonlyasanopportunitytoreviewprogressandissues,butalsoasanagenda-settingforuminwhich themostsignificant issuesandtheway forwardareconsid-ered.

ThestatementsherereflecttheconcernoftheExecutiveSecretaryaboutthemostimportantissuesthatconfrontAfricancountries,towhichhe returnswithunflaggingenthusiasmat theannualmeet-ings. These include regional integration, continental unity, peaceandsecurity,MDGs,NEPAD,goodgovernance,education,infrastruc-ture, agriculture, financing for development, capacity-building, cli-matechange, trade, technology, transportation,andtheeconomicandfinancialcrisis.

Theseinterventionsvaryfromprogressreviewstoprogrammepre-views. As a development activist, his voice ranges from thatof asupporterbringinggoodnews,suppliesandsuggestionstothatofacheerleaderurginggreatereffort,ideasandenergy.Overall,thestatementsshowanincreasinglydynamicECAworkinginstepwithAUandAfDBinanefforttoensurethatAfricancountriesreceivethefull supportof theUnitedNations that theyneed toachieve theirobjectives.


African economies continue to sustain the growthmomentum,whichhasbuiltupinrecentyears.In2006,theoverallrealgross

domesticproduct(GDP)growthrateacceleratedfrom5.2percentrecordedin2005to5.7percent.Thismomentumcontinuestobeunderpinnedby twomain factors: the improvement inmacroeco-nomic management in many countries; and the strong global de-mand for key African export commodities, which resulted in highexportprices,especiallyforcrudeoil,metalsandminerals.Itisex-pectedthatgrowthin2007willcontinueonthissamepathtoreacharound5.8percent.

However, despite this trend in economic growth, evidence showsthat Africa is unlikely to meet the Millennium Development Goals (MDGs)by2015unlessnewandvigorousapproachesareadopted.

ThechallengesthatAfricafacesaremanyandoftenvaryfromcoun-trytocountry.However,inthecontextofglobalisation,thereisnodoubtthatweallmusttackletheissuesofpeaceandsecurity;trade;particularlythepromotionofintra-Africatrade;therationalandfairutilisationofAfrica’snaturalresources;theprovisionofanadequateinfrastructuretoenablegrowth;andtheempowermentofwomenandyouthsothatwecanfullyutilisethewealthofthetalentthataboundsinthecontinent.ThisiswhytheUNfamilyisfullycommit-

Strengthening peace and security for

the success of Africa’s

development challengesAddis Ababa, Ethiopia

25 January 2007

6 Part One

tedtostrongcollaborationwiththeAU,intheseareasamongothers,toensurethatwemovetheAfricandevelopmentagendaforward.

More specifically, on trade, I had the opportunity to discuss thestalled Doha Round of trade talkswithMr. Pascal Lamy, Director-GeneraloftheWorldTradeOrganization(WTO).Weagreedontheneedforaspeedyresumptionof thetalksasAfricastandstogainthemostfromtheachievementofafairandequitableglobaltradingsystem.

Weareall inagreementthatpeaceandsecurity isasinequanonfor Africa’s development challenges to be successfully dealt with.Inthisregard,letuscongratulatetheAfricanUnionforitsconstantand credible engagement in this area and for the successes that have beenachievedwith regard toovercoming someof the intractableconflictsthatbedeviledthecontinent.

The task before us is multifaceted and wemust use a variety oftoolstoaddressitcomprehensively.Withoutadoubt,scienceandtechnology, the theme chosen for your Summit is a vital elementin the toolkit foracceleratingAfrica’sdevelopment.Theworldhaswitnessedhowadvancesinthisinnovativefieldhavebeenperhapsthemostforcefulandenduringdriversofeconomicgrowthandde-velopment.Muchevidenceshowsthatthereisastrongcorrelationbetweenacountry’sscientificandtechnologicalstatusanditseco-nomicperformanceandwealth.ThisisastrueforAfricaasitisandhasbeenforotherpartsoftheworld.

It is therefore clear that for Africa to accelerate its development and achieve theMDGs,Africancountrieshave toscale-up their invest-mentsinscienceandtechnology.And,forthisveryreason,NEPADhas made science and technology a priority sector for the advance-mentofthecontinentalagenda.

In order to buildAfrica’s scientific and technological developmentframeworkwehave toovercomeanumberofchallenges.First, inmanyAfrican countries the linkbetween the scientific communityand the political institutions are veryweak and science and tech-nologypolicies continue tobeoutdated. Second,despite the longtimethathaselapsedsincetheadoptionoftheLagosPlanofAction,whichcalledforAfricancountriestoallocateat least1percentof


theirGDPtoresearchanddevelopment(R&D),manyofourcoun-triesdevote considerably lower funding toR&D. This impingesonmany areas of development, particularly the continent’s ability toachieveandsustainfoodsecurity.Third,thequalityofourscienceandengineeringeducationisonthedecline,inpartduetotheab-senceofphysicalinfrastructureandequipment.ThesefactorshavelimitedAfrica’scapacitytodevelop,adaptandexploitscience,tech-nologyandinnovativesolutionsthatwillaccelerateitseconomicandsocialprogress.

Despitethetremendouschallenges,thereisstillhopeifAfricacouldtakeadvantageofitsgreatpotential.ThiswouldrequireundertakingamajorScienceandTechnologyCapacityBuildingInitiativetogener-ate,revampanddeploylargenumbersofscientists,engineersandtechnicians;establishingstronglinkagesbetweentechnology-basedindustry,academiaandgovernmentneedssothattechnologiesap-propriate tonational needs aredeveloped; andpromotingpublic-private-partnershipsinmodernscienceandtechnologyresearch.

SincetheBanjulSummit,substantialprogresshasbeenmadewithregardtoAU-UNcooperation.Followingwide-rangingconsultations,theUNSecretary-GeneralandtheChairpersonoftheAUCommis-sionsignedadeclarationon“EnhancingUN-AUCooperation”inNo-vember2006.TheDeclarationistheframeworkfortheevolvingUNTen-YearCapacityBuildingProgrammefortheAfricanUnionandanexpressionofthecommoncommitmentofbothinstitutionstoworktogetheronissuesofpeaceandsecurity,humanrights,post-conflictreconstructionandregionalintegration.

AstheframeworkforUNsystem-widesupporttothecapacitybuild-ingeffortsof theAfricanUnionCommissionandtheregionaleco-nomiccommunities,theDeclarationalsoprovidesroomforcoopera-tionintheareaofscienceandtechnology.

Youwill recall that theBanjul Summit stressed the importance ofeffectivemanagementandcoordinationofUNactivitiesinAfricaasanintegralpartofUNsystem-widesupporttothecontinent.Sincethen,andinresponsetothedemandsofthenewUN-AUcoopera-tionframework,theUNhastakenstepstorevampitsregionalcon-sultationmechanismofUNagenciesworkinginAfrica.Theregionalconsultationmechanism,whichiscoordinatedbyECA,hasnowbeen

8 Part One

expandedtoincludetheAfricanUnionCommissionaswellasUNHead-quartersdepartmentsdealingwithpoliticalaffairsandpeacekeepingop-erations.

Atthe7thmeetingoftheRegionalConsultationMeeting(RCM)inNo-vember2006,itwasdecidedtoexpandthefocusoftheregionalconsul-tationmechanismtoincludeUNsupporttoAUinadditiontoitsNEPADprogramme.Anothersignificantfeatureofthatmeetingwasthecreationoftwonewclusters,namely:peaceandsecurityandindustry,tradeandmarketaccess.Ascoordinatoroftheregionalconsultationmechanismandsecretariatforthevariousclusters,ECAwillactivelymonitorandre-portonitsactivities.

Theclusterforpeaceandsecurityisco-chairedbyUNDepartmentofPo-liticalAffairs(DPA)andtheAUCommission.Wearepleasedbythestepsthatarebeingputinplacetobringcoherenceinthisarea,aspeaceandsecurityissuesaretoreceiveaveryspecialfocus,asweimplementtheTen-YearCapacityBuildingProgrammefortheAU.

AfricanUnion,AfricanDevelopmentBankandEconomicCommissionforAfricaareupscalingcooperationandcollaborationtocoordinateAfricandevelopmentstrategiesandprogrammesinaconsistentmanner.Atthesametime,wecontinuetoplacedueemphasisondefining,articulatingandstrengtheningAfrica’spositiononrelevantdevelopmentissues.

InBanjul,therepositioningofECA,tobettersupportregional integra-tioninAfricaandhelpthecontinentachievetheMillenniumDevelop-mentGoals,wasendorsedandwehavesincecontinuedtomoveonwithdetermination.AnECAbusinessplanfortheperiod2007to2009wasdevelopedasacomprehensiveprogrammeofactiontoscale-upECA’ssupporttoimplementationofthedevelopmentprioritiesofAUanditsNEPADprogramme.Further,theUnitedNationsGeneralAssemblyap-provedanactionplantostrengthenoursub-regionalofficessothatweworkmorecloselyandbetterservethedifferentregionaleconomiccom-munitiesinAfrica.

WearecountingonyoursupportforthescalingupoftheeffortsoftheUNfamily tohelpadvancetheboldagendaof theAfricanUnion.Wetherefore look forward to this Summit’sendorsementof the compre-hensivepartnershipframework,whichhasbeenagreedbetweentheAUCommissionandtheUN.


Inkeepingwith the spiritof renewedandclosepartnership,ECAworkedcloselywiththeAfricanUnionCommissiontoorganisethisTwenty-SixthMeetingoftheCommitteeofExpertsoftheCommis-sion.TheAfricanDevelopmentBankalsocontinuestopartnerclose-lywithECAandtheAUCommissiontosupportAfricancountriesintheirdevelopmentjourney.Iwouldalsoliketorecognisethepres-enceof theUnitedNationsDevelopmentProgramme (UNDP) andto thank them for partneringwith us on this and other activities.Finally,IwouldliketorecognisethepresenceofrepresentativesofUNagencieswhowillbeparticipatingactivelyinourdeliberations.

Inthisregard,youwillbepleasedtoknowthattheUNcommunitycontinues towork closelywith theAfricanUnionCommission, es-peciallywithinthecontextoftheRegionalConsultativeMechanism.LastNovember,UNandAUCsignedaMemorandumofUnderstand-ing(MoU)toguideandenhancesupporttotheregionoverthenextseveralyears.WeareexcitedbythisandexpectthattheMoUwillresultinasubstantialincreaseinthelevelandscopeofoursupporttoAfrica.

MeetingsoftheCommitteeofExpertsserveasaprimaryplatformforin-depthdiscussionofthepressingchallengestoAfrica’sdevel-opmentandconsiderationoftheoptionsbeforeourcountries.Yourcontributiontothedevelopmentofourcontinentisevidentinthe

Achieving the Millennium

Development Goals in a challenging

environment

ECA Conference of Ministers of Finance, Planning and Economic Development

Twenty-sixth meeting of the Committee of Experts

Addis Ababa, Ethiopia29 March 2007

10 Part One

positivechangesthathaveresultedfromrecommendationsofyourmeetingsofyearspast.Withoutyouractiveparticipation,thisCon-ferencecannotfulfillitspurpose.

Lastyear,inOuagadougou,IapprisedyouofmyeffortstorepositionECAsothatitmaymoreeffectivelyaccompanyourcountriesontheirdevelopment journey. Since then,wehavemoveda longway toactualisethenewvisionforECA.Wepreparedthebold,ambitiousand comprehensive ECA Business Plan 2007-2009. The BusinessPlanwas launchedatthefifthsessionoftheAfricanDevelopmentForum(ADFV)–whichtookplacehereinAddisAbabalastNovem-ber–bytheSecretary-GeneraloftheUnitedNations,supportedbytheChairpersonoftheAfricanUnionCommissionandthePresidentoftheAfricanDevelopmentBank.It isbasedonthetwopillarsofECA’swork:promotingregionalintegrationinAfricaandmeetingthecontinent’sspecialneeds,includingsupportingthedevelopmentpri-oritiesofNEPAD.

TheBusinessPlanwasalsoendorsedbytheJanuary2007SummitoftheAfricanUnionAssemblyofHeadsofStateandGovernment.WethereforehavebroadpoliticalsupportforthechangesthatwehavebeenintroducinginordertomakeECAanimbleandversatileinstitution.

IthasbecomequitecleartousatECAthatachievingtheMDGscon-tinuestopresentanespeciallydifficultpolicychallengeforMemberStates.Ingeneral,economicconditionsinourregionhavebeenim-provingpersistently in thepastsevenyears; this ischeeringnews,butprogresstowardsthesegoalsremainsslow.

The issue is not that progress is not being made; it is that the rate ofprogress is low.Withjustabouteightyearsleftto2015andsomuchtodo,ithasbecomeimperativethatourregionmustspeedilyscaleupitsMDGsefforts.MemberStatesneedtoscaleup,Africa’sdevelopmentpartnersneedtoscaleup,andECAmustscaleupitsas-sistancetoMemberStatesonMDGplanning,reporting,monitoringandevaluationbecausethere is tremendousscopeforustoreallyaddvaluetowhatcountriesaredoing.Thisiscritical,especiallyinthecontextoftheresolutionofthe2005WorldSummit,thatcoun-trieswithextremepovertyadoptby2006andbeginto“implementcomprehensivenationaldevelopmentstrategiestomeetthe inter-


nationalagreeddevelopmentgoals,includingtheMillenniumDevel-opmentGoals.”

Since theadoption in theMillenniumDeclaration in2000,wehavestriven to place MDGs at the centre of the development debate in Af-rica.Thethemeofthe2003Conferencewas“TowardsGreaterPolicyCoherenceandMutualAccountabilityforDevelopmentEffectiveness”.Thiswasbecausewerealisedearlyonthatwithoutpolicycoherenceand mutual accountability, international development cooperationfettered by high transaction costs and poor alignment, would notcontributeitsfullpotentialtoAfrica’sprogresstowardsthetargetsof2015.InAbuja,in2005,withinthecontextofthepreparationforthe2005UNWorldSummitandMid-TermReviewofProgresstowardstheMDGs,wechosethetheme“AchievingtheMillenniumDevelopmentGoalsinAfrica”.

WecontinuetofocusontheMDGsbecauseouranalyticalworkshowsthat they remainapolicy,operationaland success challenge toourcontinent;wefocusonthembecauseyouwantusto.Forexample,theMinisterialStatementoftheAbujaConferencestated,andIquote:

“It isnowcritically important thatwe reviewboth theprogresswehavemadeandtheobstacleswehaveencounteredinordertolearnthelessonsandbecomemoreoperational”.

IntheperiodsinceAbuja,ECAhasreviewedtheprogressthatMemberStateshavemadeandtheobstaclesthattheyhaveencountered.Thefirstquick reviewsuggested that joblessgrowthwasanobstacle toachievingtheMDGsinAfrica,hence,thethemeof“Employment”waschosenforthe2006Conference.Butfurtherreviewssuggestedthatindeedapiecemealapproachwouldnotwork,itwasnecessaryforustobringallthechallenges–aswehaveidentifiedthem–togetherinordertounderscoretheimperativeofsimultaneousactiononmanyfronts.

The centralmessage of this Conference is that this continentmustscaleupALLinterventionsinordertomeettheMDGsbythetargetdate.Anditmustdosonow,drawingonbothinternalandexternalresources.Ourchallengethereforeistounderstandhowourcontinentcanreachthegoalsbythetargetdate;whatourcountriesmustdo,individuallyandcollectively,toachievesuccess.Thewhyshavebeen

12 Part One

considerablyanalysedandwehavearelativelygoodideaofwhatweneedtodobutitisinrespectofthehowitcanbedonethatwehaveconsiderablyfallenshort.

The2005UNWorldSummitprovidedbroadguidanceinthisregard.Worldleadersreaffirmedthat“eachcountrymusttakeprimaryre-sponsibilityfor itsowndevelopment”andmust“adoptandimple-mentcomprehensivenationaldevelopmentstrategiestoachievetheinternationallyagreeddevelopmentgoalsandobjectives,includingtheMillenniumDevelopmentGoals.”Thetechnicalchallengehereistodefinetheappropriatemixofcomprehensivedevelopmentstrat-egiesforeachofourcountries.Thisisnoteasy.Whatwemustdoisto identify,ameliorate,andattenuatethebindingconstraintsonaction.

Inotherwords,beyondthetechnicalchallengeofworkingoutthemixofpolicies,costingtheinterventions,andthelike,there isthechallengeofunderstandingandconcurrentlyputtinginplacemeas-urestoattenuateormitigatethepossibleunintendedadverseeffectsofscalingup.LetmeillustratewhatImeanwithasimpleexample:Considerthescalingupofinfrastructure–sayroads–toimproveac-cessofthepoortosocialservicesandmarkets.Withoutadoubtaneworupgradedroadtoafoodproducingregioncan,byimprovingaccesstomarkets,raiseincomesandhelpreducepoverty.However,theremaybeunintendedconsequencessuchasrural-urbanmigra-tion,whichwouldneedtobeaddressedat thesametime. Thereisthusachallengetocomeupwithinnovativeschemestomanagethesetensions.Weneedtoscaleup,butinamannerthatisnotonlyinter-temporallysustainablebutthatalsotakesaccountofpossibleunintendedconsequences.

Scalinguppublicsectorinvestmentsdependscriticallyonscalingupfinancing.TheMonterreyConsensusonFinancingforDevelopmentprovidesa strong framework formobilising resources tomeet theMDGs.Therehasbeensomeprogressinthisregard.Foreigndirectinvestmenttoourregionisgoingup;andtheG8MultilateralDebtReliefInitiative(MDRI)presentshopethatthedebtproblemofmanycountrieswillsoonbefinallyresolved.Onthedomesticfront,coun-triesareintensifyingeffortstoincreasedomesticresourcemobilisa-tion.Countriesarebeginningtomanagerevenuesfromtheirnaturalresourcesbetter. There ishowevera lotstill tobedoneontrade.


ThesuspensionoftheDohaRoundoftradenegotiationsisconstrain-ingthescopefortradetocontributetofinancingMDGsinAfrica.Ithereforehope for thespeedyresuscitationof theDohaRoundoftradenegotiationsandcallonAfricannegotiatorstoensurethatitsessentialcharacterasadevelopmentroundisnotdiluted.Itisinthiscontextthatweshouldwelcomethe“aid-for-trade”initiative,whichaimstohelpdevelopingcountriesovercometheirtrade-relatedchal-lenges.Ifeelthatifproperlyharnessed,thisinitiativehasthepos-sibilityofenhancingthecontributionoftradetoeconomicdevelop-mentinAfrica.

Inthe“AnnualReportontheWorkoftheCommissionfor2007”andfromthe“ProposedProgrammeofWorkandPrioritiesfortheBien-nium2008-2009”,thestructureofECAhasbeenredesignedtoen-ablegreatercoherenceandbetterfocusonitscoreactivities.Inpar-ticular,wehavecreatedtwonewsub-programmes:Sub-programme9 on Statistics and Sub-programme 10 on Social Development, toenhanceoursupporttoMemberStatesintheseareas.Statisticsisasubjectthatrequiresoururgentattention.WeneedtocommittheresourcesandscaleupeffortstoaddressthedataproblemsinourregionandyoursupportisneededintheefforttoimprovestatisticsandstatisticalcapacityinAfrica.Thesub-programmeonsocialdevel-opmentwillenableustobetteraddressthesecondprongofECA’smandate,which is “to promote the social and economic develop-mentofAfrica”.

Wewent even further andensured that there are sections to ad-dressissuesrelatingtotheMDGsandpovertyanalysis,developmentfinancing, industry, science and technology and the environment.RecognizingthatsuccessontheprioritiesofNEPADisessentialforprogressontheMDGs,wecreatedaNEPADSupportUnittocoordi-nateoursupporttoNEPADandanAPRMSupportUnit,toprovidesimilarassistancetotheAfricanPeerReviewMechanism(APRM).

Peer learningandknowledgesharing remaincritical for success inour joint endeavour. ECA is therefore scaling up its peer learningandknowledgesharinginitiatives.Forexample,consistentwiththerecommendation of the Cairo African Plenary on Poverty Reduc-tionStrategiesandtheMillenniumDeclarationGoals,wearerevi-talising theAfrican LearningGrouponPovertyReduction StrategyPapers(PRSP-LG),andexpandingitswarranttoincludelearningon

14 Part One

theMDGs.Thenewlyre-energisedsub-regionaloffices(SROs)willplay anactive role asoperational armsof theCommissionandassub-regionalhubsofECA’speerlearningandknowledgesharingini-tiatives. Theywill alsowork as privileged partners of the regionaleconomiccommunitiestoadvancetheAfricandevelopmentagendaatthesub-regionallevel.TheGeneralAssemblyhassupportedtheSecretary-General’s ActionPlan for the SROs andmade additionalresourcesavailabletothem.TheBusinessPlanalsoprovidesforevenhigherlevelsofsupporttotheseofficesduringtheplanperiod.

We are also continuing to scale-up cooperation and collaborationwithotherPan-Africaninstitutions,notablytheAfricanUnionCom-missionandtheAfricanDevelopmentBank.ThesecondAUCConfer-enceofMinistersofEconomyandFinance(CAMEFII)recommendedthattheAUCandECAshouldharmonisetheirconferencesofmin-isters responsible for finance and economic development. This isamatteronwhichwewould like theministers tomakeapositivepronouncement. Our collaborationwith theother sisterpan-Afri-caninstitution,theAfricanDevelopmentBank,remainsstrong.LastSeptemberourtwoinstitutionsheldaretreattodiscussandagreeonareasforjointandcollaborativeactivities.Theoutcomeofthatmeetingwasanaide-memoire,theimplementationofwhichhasal-readycommenced.Inaddition,ECAandADBjointlyorganizedtheBigTableandwill,asusual,collaborateontheMinisterialRoundta-bleandHighLevelSeminarsattheShanghaimeetingsoftheAfDB.

WecontinuetostrengthenourpartnershipwithourUNsystemcol-leagues,notablytheUNDPwithwhichwesignedMemorandumofUnderstandinglastyear.BothinstitutionsaresupportingMDG-basedplanninginmemberStates.

Thesepartnerships-andnewonesthatwehopetobuildandnurtureinthecomingmonths-haveonethingincommon:toenhanceourabilityasyourinstitutiontomoreeffectivelyaccompanyourMem-berStatesintheirdevelopmentjourney,includingintheireffortstoreachtheMDGsbythetargetdate.

Ihavetouchedonmanyoftheissues.Anumberofthem,includingAid-for-Trade,SROs,financingfordevelopment,andstatisticswouldrequireresolutionsfromyou.Butthereareotherissues,includingtheAfricanInstituteforEconomicDevelopmentandPlanning(IDEP)


andstatutorymattersthatwehavebroughtbeforeyouforconsid-erationandguidance.

Onstatutorymatters,theproposedworkprogrammeandprioritiesof theCommission for2008-2009hasbeenpreparedon thebasisofthenewprogrammeorientationaslaidoutintheBusinessPlan.Theproposedworkprogrammecoversthetensub-programmesthatmakeupthenewprogrammestructureoftheCommission.

Finally,itisproposedtostreamlinetheinter-governmentalmachin-eryandalignitwiththenewprogrammeorientation.Akeyfeatureofthisrevisedstructureisthecreationofnewsectoralcommitteestoguidetheworkofthesub-programmesasre-arrangedandtoel-evatethemeetingsoftheInter-governmentalCommitteeofExperts(ICE)–thegoverningbodyofourSROs–intosub-regionalmeetingsoffinanceandplanningministers.ItisproposedtoorganisetheseICEmeetingsback-to-backwithministerialmeetingsofrelevantRECstooptimisetheuseoftimeandresources.

The eminentNigerian novelist, Chinua Achebe, in his bookHomeandExile,tellsthestoryofalittlebirdthatflewoffthegroundandlandedon an anthill. The littlebird congratulated itself, believingthatithadleftthegroundnotknowingthattheanthillwaspartoftheground. Letusnotbe likethe littlebirdand its illusoryflight.Scalingupmustmeanapositivedemonstrablechangeinthelivesofpeople.TheSecretary-General’sreport-InLargerFreedom–submit-tedtothe2005UNWorldSummit,encouragedcountriestopreparenationaldevelopmentstrategiesorPRSPsthataresufficientlyboldandambitioustoreachtheMDGsbythetargetdate.Letme,withyourpermission,purlointheSGbysayingthatyoumustbeboldandambitiousindiscussingtheIssuesPapertoprovidethebestpossibleguidance to our ministers to enable them take the decisions neces-sary forour region tomeet the targets. This is a challenge that Iknowandbelievethatwecansuccessfullyachieve.

16 Part One

Asyouknow,thisConferenceisaspecialone.ItisthefirsttimethatajointmeetingisbeingheldundertheauspicesoftheAfri-

canUnionandEconomicCommissionforAfrica,whichapartfromre-ducingthenumberofannualmeetingstoattend,willpermitgreatercoordinationofregionalpolicyoutcomes. Comingtogetheratthistimewillalsoenableconsultationsandadoptionofcommonposi-tionspriortootherkeyevents,suchasthespringmeetingsoftheBrettonWoodsInstitutions,BoardofGovernorsoftheAfricanDevel-opmentBankandtheG8Summit.

Although attaining fifty years is by itself a landmark worth com-memorating, in the case of ECA I believe thatwe are celebratingsolid achievements.Over the past fifty years, ECAhas lived up toitsmandateofpromotingtheeconomicandsocialdevelopmentofAfricaandalsogeneratedlastingideastounderpinAfricandevelop-mentthroughitsresearch,advocacy,technicalcooperationandcon-sensusbuildingactivities. ECA’sproudest tradition is its independ-entthinking,whichhasinformedyourpolicyprescriptionsovertheyears. Withoutadoubt,manyideasadvocatedhereoverthepasthalf-centuryhavebecomepartofmainstreamthinking,butourroleinpopularisingthemisoftenforgotten.

Meeting Africa’s new challenges

in the 21st Century

Joint Annual Meeting of the AU Conference of Minister of Economy and Finance and ECA Conference of African

Ministers of Finance, Planning and Economic Development



WehavealsopromotedtheestablishmentofinstitutionssuchastheAfricanDevelopmentBank,regionaleconomiccommunitiesandre-gionalCentresofExcellence;wearebuildingupregionalcapacitiesintradenegotiations,statisticsandinformationandcommunicationtechnologies;wehavefashionedusefulpolicymakingtoolssuchasthe African Gender Development Index and the MDG Mapper; and wecontinuetoprovidetechnicalbackstoppingforAfricaninitiativessuchasNEPADandAPRM.

Asweexaminefiftyyearsofdevelopmentpolicy inAfrica,wearecompelledtoaddress issuessuchasgrowthandemployment,andthebuildingofcapablestates.Wealsoneedtoconfrontchallengesof a global nature, such asHIV/AIDS,which is ravagingour fragileskillsbase,andclimatechange,whichisdamagingdelicateeco-sys-temsandaffectingthelivelihoodsofmillionsofpoorpeople.Urgentsolutionsarealsorequiredtotacklerisingfoodandoilprices,whichare breeding social tensions in several African countries and across theglobe.SeveralkeymessageshaveemergedfromECA’sworkovertheyears,includingtheneedforregionalunityintacklingcommonchallenges;theimperativeofeconomicdiversification;thecaseforAfricanownershipof itsdevelopmentagenda;andtheimportanceofstrikingtherightbalanceindevelopmentpolicyandstrategy.

The importance of African unity to meet global and regional chal-lengesresonatedatthefirstmeetingoftheCommissionin1958andcontinues to find expression in the regional integration agendaofthecontinent.Weshouldthereforemoveawayfromthinkingaboutissuesofgrowthanddevelopmentsolelyinnationalterms.Forin-stance,Africaneedstodiversifyitsproductsandtradepatternsifitistosustainandincreaseitscurrentgrowthrateof5.8%andgeneratemuch needed employment for our people. Yet, intra-Africa traderemainsvery lowandconsiderableobstaclesremain inthewayofeconomictransactionsbetweenoursmall,fragmentedeconomies.

WehavecontinuouslyespousedAfricanownershipof itsdevelop-ment agenda, an idea that found expression in the Lagos Plan ofActionandisnowembodiedintheNEPADprogramme.Whilethedetailsoftheselandmarkdocumentsmaydiffer,theirmessageisthesame: Africa’sdevelopmentmustbeunderpinnedbygrowthwith

18 Part One

equityandsocialjustice,reductioninpoverty,greateropportunitiesforwomenandabrighterfutureforourchildren.Inthisregard,wemustbuildcapablestatesthatderivetheirprioritiesfromownershipandpopularparticipationandthatareabletomobilisesocietalre-sourcesbehindcommongoalsandaspirations.

A key lesson that has emerged in development policy is the impor-tanceofstrikingtherightbalancebetweendifferentstrategiesandapproaches. Insteadof the sharp ideologicaldebatesof thepast,there isnowagreementon theneed foragoodbalancebetweenstate and market. Similar thinking must also guide responses toshort-termchallengesandtherequirementsforlong-termdevelop-ment.Forinstance,ECAhadadvocatedsincetheearlydaysofthedebt crisis that the risk ofmoral hazardmust bebalancedby theneedforinvestmentandresumptionofgrowth.Today,theworldisconfrontedwithhighoilandfoodprices,whichareaboontoproduc-ersbutexactahigh-tollonconsumers.Thechallengethatwefacethenishowtoensurethattheseessentialgoodsareaffordablewhilenotstiflingthesignalingroleofpricesforincreasedproduction.

Wehaveexaminedthepastandthepresentbutwemustalsopon-derthefuture.TheneedtolookatAfrica’sfutureprospectstakesonaddedurgencyaswearemeetingatatimeofgreatuncertaintyintheglobaleconomicoutlook.WearealsomovingawayfromanintenseperiodwhennearlyalldevelopmentdiscoursewasaboutAf-rica’sprospects.Atfifty,weinECAfeelthatAfricamustpauseandreflectonwhetherourdevelopmenttrajectoryisontherightpath,aswealsoconsiderwhatwillbeAfrica’s futurerole inglobaleco-nomicterms.

Inotherwords,isthepositivestoryofgrowthinAfricaashort-termoccurrenceora long-termtrend? ArewepoisedtomakethistheAfricancentury?WhatshouldAfricalooklikeinthenextfiftyyears?AreweharnessingregionalresourcestomeetAfrica’sdevelopmentpriorities?Thesearequestionsthatwemustaskaswemoveahead,soECAintendsduringthecourseofourcelebrationsthisyeartopro-vide an opportunity for African intellectuals and thinkers to address theseissuesinameaningfulmanner.


AsAfrica’s leadingdevelopmentforum,this jointconferencehasauniqueopportunitytoaddressthecontinent’schallengesandprof-ferdurablesolutions.WemustcontinuetoputthebuildingblocksinplacetoensurethatAfrica’sstoryinfiftyyearstimeisnotoneofmar-ginalisationbutoneofastronganddiversifiedeconomy,supportedbyfirst-classinfrastructureandinstitutionswithahighlyskilledandfullyemployedworkforcelivinginpeacefulconditions.

20 Part One

Africaisonceagainatthecrossroads.TheoutcomeoftheGrandDebatewillnotonlyhaveramificationsfortheinstitutionalland-

scapeofthecontinentbutalsoimplicationsfor itsfuturedevelop-ment. Thedebatealsocomesatatimeofgreat internationalen-gagementaboutAfricaand itsdevelopmentprospects. Insteadofbeingmarginalised,Africaisnowfirmlyontheinternationalagendathroughitsowninitiatives,suchasNEPADaswellasotherinterna-tional initiatives, like theoutcomeof the 2005World Summit, inwhichgloballeaderspledgedtosupportAfricainmeetingitsspecialneeds.

WearealsoexperiencingthebestperiodofeconomicgrowthinAf-ricaforagenerationandtheoveralleconomicperformanceofAfricacontinuestoimprovestronglywitha5.6%growthratein2006.The2007EconomicReportforAfrica,whichispublishedjointlybyECAandAUC, indicatesthatgrowth in thecontinent isexpectedtore-mainhighoverthenexttwoyears.

These factors are contributing to the positive spirit of ownershipandself-beliefwhichmustperforceunderpintheGrandDebate.Itisquitegratifyingthereforethatthepan-AfricanidealthatinformedthesuccessfuldriveforliberationanddecolonisationofAfricaisnowinformingdeliberationsonthepoliticalandeconomicintegrationofthecontinent.Ofcourse,thedesiredunionisnotonlyofconcernto

The Grand Debate on an African Union government

Statement to the African Union Executive Council

July 2007


AfricanStatesbutalsoofinteresttotheirpeopleanditisgratifyingthateffortshavebeenmadetoascertaintheviewsandaspirationsoftheAfricanpeopleinthewiderdebate.

The Debate on an African Union Government is very important and timelyandwillenableAfrica’s leaders tosharetheirvision for thefuturedevelopmentofAfrica. Whicheverwaythedebategoesoninstitutionalarrangements,modalitiesandtimeframefortheunion,theunderlyingessenceofregionaleconomiccooperationandinte-grationforAfrica’sfuturewillremain.Astheoldestofthepan-Africaninstitutionswithamandatetosupporteconomicandsocialdevelop-mentofthecontinent,ECAwelcomestheGrandDebateandstandsreadytoupscaleitseffortsinsupportofAfrica’smarchtocloserinte-gration.Wehaveconsistentlymaintainedthatregionalintegrationis imperativeforAfricatomeet itsdevelopmentchallengesandtoovercome the limitations of Africa’s small, fragmented economiesaswellasgivingitagreatersayinthemanagementofglobaleco-nomicprocesses.Indeed,closerintegrationreflectstheaspirationsofmost Africans for the continent to become one strong, robust,diversified and resilient economy, supported by a first-class trans-boundary infrastructureandahighly skilled,flexibleand fullyem-ployedworkforcelivinginconditionsofpoliticalstability.Toachievethisdesirableobjective,Africaneedstoacttogethertoscale-upef-fortstoachievetheMDGs,addressobstaclestoimprovingtradeandinvestmentflows, tackle infrastructure relatedchallenges,manageitsnaturalresourcesandaboveallensureconditionsofpeaceandsecurityfortheAfricanpeople.

TheimperativeofscalingupeffortsandinvestmentstoachievetheMDGswas taken up at the Conference of AfricanMinisters of Fi-nance,PlanningandEconomicDevelopment inApril thisyear. Onthatoccasion,theFinanceMinistersdeliberatedonthetheme-“Ac-celeratingAfrica’sGrowthandDevelopmenttomeettheMillenniumDevelopment Goals: Emerging Challenges and theWay Forward.”They agreed on the need for a massive scaling up of public and privatesector investments ifthecontinent istoachievetheMDGsaimedateradicatingpoverty,promotinggenderequalityandmeet-ingothereducation,healthandenvironmental targets. Using re-gionalintegrationasameansofacceleratingtheachievementoftheMDGsisonewayofensuringthebuy-inoftheAfricanpeopleintothisnobleideal.

22 Part One

Africaalsoneedstoactasoneintheareaoftrade,especiallyinne-gotiations at theWTO and the Economic Partnership AgreementswithEuropeanUnion.Theobjectiveinbothnegotiationsshouldbeto seekdevelopmentoutcomes that favourAfrica. While there isvisibleevidenceofincreasinglystrongcollaborationbetweenAfricancountriesandtheregionalgroupingsinthesenegotiations,thereisstillaneedtodomuchmore.Attheendoftheday,thecloutandbargainingpowerthatwillenablefavourableoutcomesdependtoalargeextentoneconomicsizeaswellastheoffersbeingbroughttothetable.Increasedintra-Africatradeisthereforenecessarytoen-ablethecontinenttotakeadvantageofglobaltradeopportunities.Thiswould,inturnrequireovercomingthechallengesthatimpedetheflowofgoodsandserviceswithinthecontinentaswellasthediversificationofAfrica’sproductionstructures.

Tradefacilitationiscloselytiedtotheneedforaffordable,efficient,andsustainablephysical infrastructuretosupporteconomicactivi-tiesandtheprovisionofbasicsocialservices.Ofparticularimpor-tance in this regard is transport infrastructure such as roads, rail,air,andportserviceswhichneedtoberehabilitatedandexpanded.Integration is also an importantmeansofmanaging sharedwaterresources,whichhaveavitalroletoplayinthetransportofgoodsandpeople.Moreover,Africaneedstodevelopenergyinfrastructuresuchaselectricitygridsandoilandgaspipelinesthatwillfacilitatecross-borderenergy supplies, therebyenhancing securityand reli-abilityofenergysupply.EnergyissueswereaddressedwhenAfricanFinanceandEnergyMinisterscametogetherwithdevelopmentpart-nersattheFinancingforDevelopmentConferencetodeliberateonthemobilisationoffinancialresourcestohelpmeetAfrica’senergyneeds.

Regional solutions are also important in the sustainable manage-mentofAfrica’svastnaturalresourcesinareassuchasgovernance,institutionalcapacity,ownership,andtheenvironment.Theseissueswereaddressedatthisyear’sBigTable,jointlyorganisedbyECAandtheAfricanDevelopmentBankinclosecollaborationwiththeAfri-canUnionCommission.Severalusefulrecommendationsemanatedfromthefrankandrobustdialoguewhichisthehallmarkofthisfo-rum,includingsuggestionsthattheAfricanPeerReviewMechanismbe expanded to include the governance of the natural resources sec-tor and that natural resources management should be mainstreamed


intopovertyreductionstrategies.Apeer-learninggrouponnaturalresourcesistobeestablishedtopromoteknowledgesharinginthisarea.

Inthefinalanalysis,thesuccessfulintegrationofAfricamustbeun-derpinnedbyconditionsofpeaceandsecurityandthereareposi-tivesignsthatthecontinenthastakenimportantstepsinthisregard.Inadditiontothepositiveanddeterminedefforttoevolveapeaceandsecurityarchitectureforthecontinentthereisevidenceoftheincreasing use of African Union structures and mechanisms for re-solvingconflictsandmanagingpeace.However,moreremainstobedone,especiallyinplacessuchasDarfurandSomalia,whichrequireconcertedactionby theAUand itspartners. There isneedat thesametimetohelpconsolidatepeaceandsecurityincountriesemerg-ingfromconflictandtakingaregionalperspectivecanhelpmobiliseinternationalsupportforsuchefforts.Thepromotionofgoodgovern-ance lies in turn at the heart of ensuring peace and stability in Africa becauseitgivesvoicetomarginalisedcommunitiesandpromotesfairaccesstoresourcesandopportunitiesfordevelopment.

TheUnitedNationssystemiswellpositionedtocontinueitssupportfor Africa’s regional integration agenda. For instance, its RegionalConsultativeMechanism(RCM)ofUnitedNationsagenciesworkingin support of the AfricanUnion agenda andNEPAD,which is con-venedbyECA,hasnowbeenexpandedtoincludetheAU.Moreover,itnowconsistsofnineclusters,whichenablescoherenceandclosecoordinationinthedeliveryofUNsupportattheregionallevel.Thetwonewclustersonpeaceandsecurityandindustry,tradeandmar-ket access created last November have been inaugurated and have startedworkinearnest.

ThecommitmenttointegrationinAfricaisquiteclearandthecaseforitwasestablishedalongtimeago.Theevidenceaboundsinthees-tablishmentoftheAfricanUnionandtheadoptionofNEPAD.Italsoaboundsinthevarioussectoralinitiativesaswellasthelongstandingexistenceofregionaleconomiccommunities.Accordingly,itisnowtimetomovefromideastoactionandfrominstitutionalarchitectureto actual mechanisms and specific programmes for tackling trans-boundarychallenges.

24 Part One

Inthisregard,Iwouldurgethatadequateattentionbegiventohowtoaccelerateintegrationthroughactualprojectsandtheremovalofthemajorobstaclestocoherentintegration.Inparticular,itwouldbenecessarytorationalisethespaghetti-bowlofRECsinthecontinenttoovercome theproblemsofoverlapandduplication. Similarly, itwouldbedesirabletopayattentiontohowtobequeaththecontinentwithadynamicandforwardlookingcapacitytodevelopappropriatestrategiesfordealingwithcurrentandemergingchallenges.Takingaregionalperspectiveisparamountfortacklingsuchchallengesinthiseraofglobalisation.


ThismeetingisyetanothermanifestationofAfrica’sstrongcom-mitment to seeking regional solutions to transboundary chal-

lenges and it is pleasing to note that Africa is making steady progress inthisregard.Indeed,concreteeffortstoimprovetheinstitutionalbasisforregionalcooperationandintegrationarealreadyevidentatbothcontinentalandsub-regionallevels.Otheremergingtrendsaresimilarlyencouragingacrosseconomic,politicalandsocialsectors.

Thereisclearevidence,forinstance,thatAfricacontinuestogovernitselfbetterinkeepingwiththeaspirationsofNEPADandsupportedinmanyinstancesbytheinstrumentalityoftheAfricanPeerReviewMechanism.Ofcourse,bettergovernanceandincreasinglystrongerinstitutionsdonotmeanalackofproblemsbutratherindicatethatdisagreementswillbeaddressedopenlyandresolvedpeacefully.Weshouldnotbediscouragedevenwhentherearelapses,butshouldinsteadseesuchoccurrencesaspartofthegrowingpainsofademo-craticdispensation.

Evidence of improved governance is also reflected in economictrends, where bettermacroeconomicmanagement has combinedwithhighcommoditypricesand increasedprivatecapitalflows tosustainimprovedgrowthrates.Forinstance,economicgrowthinAf-ricaasaregionwas5.8%in2007,whichwasmarginallybetterthanthe5.7%achievedin2006.Thechallengethereforeistoupscaleand

Keeping Africa’s improved

economic performance

on track

Statement at the Twelfth Ordinary Session of the Executive Council of the

African Union

Addis Ababa, Ethiopia27 January 2008

26 Part One

sustainthisgrowthsoastosignificantlyreducepovertyandachievetheotherMillenniumDevelopmentGoalsinthewholecontinentbythetargetdateof2015.

Centraltothiseffortisthemobilisationofdomesticandinternation-alresourcestoenhanceproductiveinvestments,boostgrowthandreducepoverty.Theidealwouldhavebeentoraisetherequiredre-sourcesthroughdomesticor,indeed,regionalsavings.However,thereality is that for several of our countries this is not possible in the shortrunduetoalow-incomebaseandanunderdevelopedfinancialsector. External sourcesoffinanceare therefore required tomeetthefinancing gap inAfrica. This critical roleof financewas recog-nisedbyworldleadersinthe2002MonterreyConsensusonFinanc-ingforDevelopment.

Highoilandfoodpricesarealsoamatterofimmediateconcernforseveral African countries because of their impact on balance of pay-ments and because resources that are being used to meet these high costsdetract fromwhatcouldotherwisebeusedtoprovide infra-structure and social services. This situation also requires vigilancebecausedisquietingeconomicconditionsinmajorindustrialecono-miesraisethespectreofthe1970swhenacommodityboomwastruncatedbypolicyresponsestostagflationindevelopedcountries.Theseeventsforeshadowedthelostdecadeofthe1980s,andgiventhatseveralAfricancountriesarestillweigheddownbyadebtover-hang,thereisneedforvigilance,well-consideredresponsesandcon-tinuedcloseengagementwiththeinternationalcommunity.

Without a doubt, the international community has placedAfrica’sconcernssquarelyonitsagendaandpledgedsupportforitsdevelop-mentefforts.Thiscommitmenttoup-scalethequalityandquantityofofficialdevelopmentassistancehasbeendemonstratedinseveralwaysandacknowledgedassuchbyAfricanleaders.However,thereis stillmuch tobedoneas thequantumof support remains inad-equateand the translationof commitments into reality remainsachallenge. Despite the possibility of global economic slow-down,this is not thetime to reduce assistance and all efforts shouldbemadetokeepAfrica’simprovedeconomicperformanceontrack.In-deed,thecaseforcounter-cyclicalactionseemsquiteevidentfromrecentactions inseveraldevelopedcountriestoboostspending inordertokeeptheireconomiesontrack.


Anothermatterof immediateconcernwith long-term implicationsforAfrica’sdevelopmentisclimatechange.Allrecentstudiesshowthat although Africa contributes least to global greenhouse gas emis-sions,itisoneofthemostvulnerableregionstothenegativeimpactofclimatechange. Ithasbeenreported for instancethat thegla-ciersofMountKilimanjarohaveshrunkby98%overthelastcentury,whilewater levelshaveseriouslydecreased inmajor lakessuchasLakeChad,whichhaslostover50%ofitswatersince1973.

Ourcollectiveefforts should therefore remainstrongly focusedonmitigatingtheimpactofclimatechange,adaptingtoitseffectsandobtainingtherequiredtechnologyandfinancetosupportadaptationandmitigation.TheseconcernswerebroughttotheforeattheUNConferenceonClimateChangewhichtookplaceinBali,Indonesia,andaspartof thecontributionof theUnitedNationssystem,ECAwill beestablishinganAfricanClimatePolicyCentrehere inAddisAbabatoprovidetechnicalbackstoppingtoAfricaonthismatter.

The issue of climate change is very closely linked to the industrial developmentofAfrica,because thereare concerns thatproposedresponses to climate change might make the path for industrialisa-tion inAfricamoredifficult. Ofcourse,thisneednotbethecase.Asamatteroffact, it isquitetimelyandappropriatetodeliberateindustrialisationinAfricabecauseindustrialexpansionisneededtotransformAfricaneconomiesthroughincreasesinproductivity,im-provedskillsandcreationofadditionalopportunitiesfordecentandproductivework.

IndustrialdevelopmentinAfricawillalsoreducethedependenceofAfricancountriesonproductionandexportofprimarycommoditiesaswell as integrateAfricanfirmsandbusinesses intoglobal valuechainsandhelpthecontinent tobecomedynamic,diversifiedandtechnologicallyadvanced.Wethereforeneedtostrengthenourin-dustrial capacities, improve productivity and competitiveness andraise thequalityandstandardof localproductssoas tobebetterabletousetheincreasinglyavailableopportunitiesininternationaltrade.

Inrecognitionofthekeyroleofscienceandtechnologyindevelop-mentanditspotentialcontributiontotheindustrialisationofAfrica,aSciencewithAfricaConferencewasorganisedtofollow-uponthe

28 Part One

theme of last January’s African Union summit; to raise the level and rangeofparticipationandcollaborationofAfricanscience-baseden-titiesininternationalresearchanddevelopmentprojects;andalsotoinformanewsciencediplomacywithinAfrica.Throughthisprocess,itishopedthatanewdynamicwillevolvetointegrateAfricainglobalscienceprocessesandimproveitsaccesstoscientificknowledgethatwouldsupporttheindustrializationofthecontinent.

Thiskindof collaboration isalsopositiveproofofhowtheUnitedNationssystemisworkingcloselywithAfricaintheareasofpeaceandsecurity,development,andhumanrights,thethreepillarsofUNwork.Secretary-GeneralBanKi-moon,isattheforefrontofsuchef-fortsandhas,forinstance,setupanMDGAfricaSteeringGrouptomobilisetheleadershipoftheUNsystemandmajormultilateralandintergovernmental agencies behind this noble agenda; and provide policyguidanceforacceleratingprogressinthisregard.

TheMDGsencapsulatethemajorsocialdevelopmentobjectivesofthe international community and striving to achieve themwill re-quirethatnecessary investmentsbemadetoempoweryouth,ad-vancetheroleofwomen,protectvulnerablegroupsandprovidethetotalityofAfricanpeoplewitheducation,healthandtheopportuni-tiestoleadfulfillingandproductivelives.ItisessentialthereforetoremainfirmlyfocusedonensuringthatnoAfricandiesofmalnutri-tionorpreventablediseases,orisdeprivedofeducationoraccesstobasichealthcare.

Itisequallyimportantthattreatment,prevention,careandsupportforHIVvictimsarewithinreach,andthattheprevalencerateisre-ducedsubstantially.ItisimportanttoacknowledgethatimportantprogresshasbeenmadeagainstHIV/AIDSalthoughitisstillaleadingcauseofglobalmortality.InAfrica,forinstance,upto5,800peopledie daily and another 6,800 become infected in the sameperiod.TheAfricanUnionandtheUNworkedtogethertohelpdeveloptheregionalHIVandAIDSpolicyinAfricaandweremaincommittedtohelping African Member States meet regional and global commit-mentsinthisregard.

As this Council knowsonly toowell, Africa’s development agendacannot be achieved ifwedonot collectively safeguardpeace andsecurityineverycornerofthecontinent.Itisthereforepleasingthat


the leadershipof thecontinent throughthemechanismof theAf-ricanUnion isconstantlyengaged indeterminedefforts toresolveconflictsandmanagepeace.TheUNhasalsobeenactivelyinvolvedininitiativestopromotepeaceandsecurityinAfrica,whichextendsbeyondpeacekeeping. For instance,we are cooperatingwith theAfricanUniontomoveforwardinareassuchasmediationandgoodoffices,training,desk-to-deskexchanges,conflictpreventionandtheAUBorderProgramme.

However,wecanalldomoretoensurethatAfricanpeopleareabletoliveinpeace,andgiventherightconditions,tosecuretheirliveli-hoods.Moreover,allhandsshouldbeondecktoassistrefugeesandinternallydisplacedpersonswhilepeace-buildingeffortsincountriesthathaveovercomeconflictandareactivelyengagedinreconstruc-tionanddevelopmentshouldcontinuetoattractinternationalsup-port.

Inoureffortstoachievesustainabledevelopmentinanenvironmentofpeaceandsecurity,Africamustcontinuetopayattentiontothepreservationofhumanrights.AscommittedmembersoftheUnit-edNations,weshouldremainfaithfultotheUniversalDeclarationonHumanRights,thesixtiethanniversaryofwhichisbeingmarkedthis year. Alsowithin theambitof theTen-YearCapacityBuildingProgramme,aregionalconsultationwasheldtodiscusstheopera-tionalisationofspecificelementsofthecooperationbetweentheAUandUN in theareaofhuman rights, justiceand reconciliation. AparticularobjectiveinthisregardistosupportAfricanUnionhumanrightsinstitutionsinbuildingtheircapacities.

TheUnitedNationshasmaintaineditseffortstobuildcoherenceinits programmes undertaken in support of African development by revitalisingitsRegionalConsultationMeeting.ThisisamechanismforUN inter-agencycollaboration towork closelywith theAfricanUnion in implementingtheTen-YearCapacityBuildingProgramme.Bythismeans,wehopetosupporttheeffortsoftheAUCommissionandregionaleconomiccommunities in tacklingchallenges relatingtopoverty,climatechange,AIDS,industrialisation,trade,peaceandsecurity,humanrightsandinstitutionbuilding.

The8thRegionalConsultationMeetingtookplaceinAddisAbabainNovember2007andtookfar-reachingdecisionsonhowtodeepen

30 Part One

itsworkandinparticularagreedthatitsninesectoralclustersshoulddrawupbusinessplansandaligntheiractivitiesmorecloselywiththeprogrammaticstructureof theAfricanUnionCommission. UnitedNationsinter-agencycollaboration,throughitsregionalconsultationmeetings,willcomplementtheexistingstrongpartnershipbetweentheAfricanUnion,AfricanDevelopmentBankandEconomicCom-missionforAfrica,whichcontinuestobestrengthenedinaccordancewiththewishesoftheAssemblyofHeadsofStateandGovernment.

Inconclusion,IwishtoemphasisethatwhileAfricaismakingsteadyprogress,itcontinuestofacepressingandlong-termchallengesthatcanbeovercomethroughdedicatedleadershipandaspiritofowner-shipandself-belief.TheAfricanUnioncan,inthisregard,continuetocountonthestrongsupportoftheUnitedNationsinitsnobleeffortstobuildapeaceful,developed,resilientandrenascentAfrica.


In the spirit of deepening collaborationbetween theAfricanUn-ionandECA,theEleventhOrdinarySessioninAccramandatedthetwoinstitutionstoholdJointAnnualMeetingsfortheMinistersofFinance,PlanningandEconomicDevelopment.Basedonthisman-date,thefirstJointAnnualMeetingwasheldinAddisAbabafrom31Marchto2April2008.

Atthismeeting,MinisterscommendedtheeffortsofmanyAfricancountriesforpursuingpoliciesthataregearedtowardssustainableeconomicgrowthandpovertyalleviation,inlinewiththeprioritiesofNEPAD.AlthoughtheseeffortshaveculminatedinrecentyearstorobustgrowthforAfrica,povertyreductionandemploymentcrea-tionhasbeenverylimited.

The2007EconomicReportforAfrica,ajointpublicationofECAandAU,forecaststhatAfrica’sgrowthoutlookwouldbeverystrong,dueinparttohighdemandforAfrica’scommodityexports,generatedbyrobustgrowthinAsia,continuedeffectivemacroeconomicmanage-mentandtheimprovinggovernanceandsecuritysituationinAfrica.However,Africa’sgrowthoutlookcouldbetemperedbyanumberofrisks,chiefamongthembeingasharperslowdownintheUnitedStates,withanadverseimpactonEuropeaneconomies,resultinginafall inworldcommoditydemandandprices. Inaddition,highoilpriceswouldcauseincreasingfiscalandexternalimbalancesinoil-

Working collectively to

achieve Africa’s development

agenda

Thirteenth Ordinary Session of the Executive Council of

the African Union

Sharm-El-Sheikh, Egypt27 June 2008

32 Part One

importingcountries,whileinfrastructurebottlenecksandunreliableenergy supply continued to pose severe impediments to growth.There is therefore a need for African countries to implement strate-giestomitigateriskssoastoachievesustained,sharedandbroad-basedgrowthinthefuture.

AgriculturecontinuestoremaintheheartoftheeconomiesofmanyAfrican countries. In ensuring its efficient management and foodsecurityforall,anumberofinitiativesandprogrammeshavebeeninstitutedattheglobalandregionallevels.Worldleaders,includingthosefromAfrica,atthe2002WorldFoodSummit(WFS)recommit-tedthemselvestoimplementthe1996WFSPlanofAction.Further-more,attheirJuly2003MeetinginMaputo,ourleadersresolvedtoimplement,asamatterofurgency,theNEPADComprehensiveAfricaAgricultureDevelopmentProgramme(CAADP)aswellascommittedtodevoteat least10percentof their respectivenationalbudget-aryresourcesforagriculturalandruraldevelopment.Althoughtheseinitiativeshaveachievedsomeresults,Africadoesnothavefoodse-curity.Thecurrentsoaringfoodpriceshavefurthercompoundedthealreadychallengingfoodinsecuritythroughoutthecontinent.

The global climate change also threatens agricultureproductiononthecontinentbecausemany African countries are at most risk andhavelessfinancial,technicalandinstitutionalcapacityforadaptation.Moreover,someofourcountriesareintheSahelZone andare threatenedbydesertification,which continuestogaingroundandispushingitswaysouthward.Inadditiontocontractingtheareasuitableforagriculture,climatechangeispro-jectedtoresultinsignificantshorteningofcropgrowingperiodsandreductioninyieldsfromrain-fedagriculture.Morefrequentandse-veredroughts,floodsandweatherextremeswouldconstraincropand livestock production, while rising water temperatures woulddecrease foodsupplies fromfisheries resources. Asa result, foodinsecuritywould increase significantly ifmigration and adaptationprogrammesarenotputinplace.

The challenges to the development of agriculture in Africa and the threatsofclimatechangesuggestthatweneedtoactswiftlyinfind-ingsolutions.That iswhy in linewiththeprioritiesof theNEPAD/CAADPframework,ECAispartneringwith(FAO)and(UNIDO)tosys-


tematicallydevelopthevaluechainsofselectedstrategicfoodandagriculturalcommodities.

ECAisalsoworkingwiththeRECsandotherstrategicpartnerstousescienceandtechnologytodesignanindustrialisationframeworkthatwillpromotethetransformationoftheeconomiesofAfricancoun-triesfromoverwhelmingdependenceonproductionandexportsofprimarycommodities toadynamic,diversifiedandtechnologicallyadvancedeconomy.WeshallalsocontinuetopromoteandsupportthestrengtheningofAfrica’s industrial capacitiessoas to increasethelevelofindustrialcompetitiveness,raisethequalityandstand-ardsoflocalproducts,improvethecapacitiesandcapabilitiesofthecontinent in international trade aswell as strengthen the synergybetweenproductionandtrade.

DespitetheprogressmadebytheregionaleconomiccommunitiesandAfricancountries, thereareanumberofchallenges, includingthe low level of intra-African trade, poverty,monetary integrationandthemovementofpeople. Intra-regional trade inAfrica is stilllow, representingonaveragearound10per centof total exports.Therearemanyfactorscontributingtothelowleveloftradewith-inthecontinent,includingtheeconomicstructureofmanyAfricancountries,whichconstrainthesupplyofdiversifiedproducts;poorinstitutionalpolicies;weakinfrastructure;weakfinancialandcapitalmarketsandfailuretoimplementtradeprotocols.

Inordertopromoteandaddressthechallengesimpedingtheflowofgoodsandserviceswithinthecontinent,weneedtotakeappropri-atepolicyprescriptions.Africancountrieswouldhavetocommittotheeffectivestructuraldiversificationofproductionandexports.Theproductionofnon-traditionalexportcommoditieswithcomparativeadvantageonregionalandglobalmarketsmustbeencouraged.Gov-ernmentmightconsidershifting their industrialdevelopmentpoli-cies and strategies towardsdiversifiedproduction lines,whicharedrivenbyapproachesbasedontheprocessingoflocalrawmaterialsandonlocalinnovation.

TradewithinAfricawouldnotbeimprovedwiththecurrentqualityofourinfrastructure.Transportinfrastructureandservicesshouldbeim-provedthroughmaintainingandrehabilitatingexistingroads,expand-ingtheroadnetworkto isolatedareas, improvingrailwaysnetwork,

34 Part One

replacingobsoleteandinappropriateequipmentatports,developingmore dry ports to serve both landlocked countries and interior areas ofcoastalcountries,and increasingair transportconnectivity in thecontinent,particularlyforthesmallislandcountries.Wealsoneedtodevelop mechanisms that seek to promote the free movement of Af-ricanswithinthecontinentasawayofboostingintra-Africantrade.

Africaneedsadequateresourcestosupportitsdevelopmentagenda.However,itfacesthechallengeofmobilisingenoughdomesticandinternational resources to enhance productive investments, boostgrowth,and reducepoverty.This isbecauseaidflows fromdonorcountries, as a percentage of their gross national income, remainbelowtheMonterreyConsensus,whichcallsondonorcountriestotarget0.7percentoftheirGDPtowardsaid.Thissuggeststhatasub-stantialpartofthedevelopmentfinancinggapinAfricancountriesshould be closed through an increase in domestic resourcemobi-lisation.Furthermore,developmentpartnersshouldtranslatetheirpledgestoscale-upaidtoAfricancountriesintoconcreteactions.

Inourquesttostrengthenourdevelopmentagenda,itisimportantthatwedonotconcentrateononlytheeconomicaspectsofourde-velopmentbutalsopayequalattentiontothesocialdimensionsofdevelopment.ThatiswhyMDG7,EnsuringEnvironmentalSustain-ability, requires using natural resourceswisely and protecting thecomplexecosystemsonwhichoursurvivaldepends.Unfortunately,thecurrentpatternsofresourceconsumptionandusethreatentohampertheachievementofthemuch-desiredsustainability.Landisdegradingatanalarming rate,plantandanimal speciesarebeinglostinrecordnumbers,theclimateischanging,bringingwithitthethreatsofworseningdroughtsandfloods,andsealevelsarerising,fisheriesandothermarineresourcesarebeingover-exploited.

Accesstosafewaterandenvironmentalsanitationarevitalforthedignityandhealthofallpeople,includingchildrenandwomen.Yetaccording to theUNICEF/WHOJointMonitoringProgramme (JMP)about2.6billionpeople,manyofwhomareinAfrica,donothaveaccesstowaterordecentsanitaryconditions,resultingin2millionchildrendyingfromdiarrhoea-relateddiseaseseveryyear.AlthoughtheworldasawholeisontracktomeettheMDGtargetfordrinkingwater,Africamaynotachievethetargetifdrasticactionisnottaken.


UNICEFestimates thatmeeting theMDG sanitation targetwill re-quirethatanadditional1billionurbandwellersandalmost900mil-lionpeopleinoftenremoteruralcommunitiesshouldhaveaccesstoimprovedsanitationservices.Accomplishing thisby2015willbeadauntingchallengefortheworld,particularlythoseinAfrica.ThereisthereforeaneedforallAfricangovernments,fromnationaltolocallevel,institutions,NGOandcivilsocietyorganisations,aswellasde-velopmentpartners,tojoinforcestowardsmeetingtheMDGtargetsfordrinkingwaterandsanitation.

Related toAfrica’sdevelopment is thepromotionofmaternalandchildhealth,theHIV/AIDSpandemicandotherpreventablediseases.Africaaccountsfor20percentoftheworld’sbirthbutcontributesto40percentoftheworld’smaternaldeaths.Maternalhealthplaysan important role in development because it helps governments to reduce the burden of disease and build on the social capital that de-rivesfromanenabledandempoweredpopulation.Moreover,ma-ternal and reproductivehealth freeswomen topursueproductiveopportunitiesaswellasimprovetheirlivesandthatoftheirfamiliesandcommunities.Today,however,Africaisstillchallengedtopre-ventmillionsof its less fortunatewomenfrompreventabledeathsrelatedtopregnancyandchildbirth.ThereisthereforeaneedforaconcertedeffortbyAfricangovernmentstoamelioratethesituationaswellasimplementtheoutcomeofthe2005SocialSummitonuni-versalaccesstosexualandreproductivehealthwithoutwhichakeyMDGgoalcannotbeachieved.

Despite commendable effortsmade by the African leaders, Africacontinues to wrestle with the HIV/AIDs pandemic. The UN Secre-tary-General’sreportindicatesthatin2007,Sub-SaharanAfricaac-countedfor68percentofalladultslivingwithHIV,90percentoftheworld’sHIV-infectedchildrenand76percentofallAIDSdeaths.Thereportof theCommissiononHIV/AIDSandGovernance inAf-rica,SecuringourFuture,alsodetailstheimpactthis insidiousdis-ease is having on the governance structure of many African coun-tries.Bothreportsemphasisethathaltingandreversingthespreadofthediseasewouldcontributetopovertyreduction,improvementinnutrition,reductioninchildmortalityandimprovementinmater-nalhealth.Tothisend,strongleadership,increasedfinancialsupportand good governance are needed to tackle this challenge. That iswhyweshouldallembraceandsupporttheAUstrategicdocument

36 Part One

onhealthentitled,AfricaHealthStrategy:2007-2015,whichmanyUNagenciescontributedto,anduseaframeworkforaddressingthehealthchallengesinAfrica.

Africa’s development agendawould not be achieved ifwedonotcollectivelysafeguardpeaceandsecurityineverycornerofthecon-tinent.Thisisbecauseconflictsleadtopoverty,lossofphysicalandhuman resources, the destruction of infrastructure,misappropria-tionofnaturalresources,thediversionofforeigndirectinvestmentandthecreationofrefugeesaswellasinternallydisplacedpeople.ThatiswhyinAprilthisyeartheUNSecurityCouncil,underthepres-idencyofSouthAfrica,heldahigh-leveldebateonthemaintenanceofinternationalpeaceandsecurityandthepreventionofconflicts.ItisgratifyingthattheSecurityCouncilattheendofthedebatewel-comedtheproposalbytheUNSecretary-GeneraltosetupaUN-AUpanelofeminentpersonstoconsiderthemodalitiesofconflictpre-ventionaswellasstrengtheningpeacekeepingaroundtheglobe.

The promotion of good governance is vital to the preservation ofpeaceandstabilityinAfricabecauseitempowersmarginalisedcom-munities andpromotes fair access to resources andopportunitiesfordevelopment.WemaythereforeconsiderexpandingtheAfricanPeerReviewMechanism to include thegovernanceof thenaturalresourcessector.

TheUNsystemwillcontinuetousetheRegionalConsultationMech-anismtostrengthenthecoordinationof itssupporttotheAUandNEPAD.ThroughtheRCM,theUNagencies,workingthroughtheirrespectiveclusters,arealigningtheirworkprogrammesonthecon-tinenttothestrategicplansoftheAUCommissionandtheNEPADSecretariat.

WeatECAwillcontinuetoprovidesupporttotheNEPADSecretariatandAfricancountriesfortheimplementationofNEPAD.ECAwouldalso increase its support to the APRM through technical support to theAPRMSecretariat.Inaddition,ECAwouldworkcloselywiththeAUCommission,theAfDBandtheNEPADSecretariattoproduceacontinentalinfrastructuremasterplan.


WearemeetingatacrucialtimeforAfrica,whichmustremainalertandmindfulofglobaldevelopmentsthatareimpacting

onitseconomicandsocialdevelopment. ThisCouncil,throughitsdeliberations,hasacriticalroletoplayinensuringthatAfricaspeakswith a clear and common voice on global matters, especially theglobaleconomicandfinancialcrisisandnegotiationsonapost-Kyototreatyonclimatechange.Africaisoftenrepresented–inglobalpro-cessestoaddresstheseissues–byourdiplomaticrepresentativesinmajornegotiatingcentreswhotaketheircuefromdecisionstakenbyourHeadsofStateandGovernmentontheadviceofthisCouncil,soyourdeliberationsareveryimportantforthecontinent.

ItisinthiscontextthatIwishtofocusmyremarksonthreemajorissuesthatwillnodoubtengageyourattention:theeconomicandfinancial crisis, climate change and the theme of the forthcomingsummit,whichis“InvestinginAgricultureforEconomicGrowthandFoodSecurity”.ThefirsttwoissuesrequirethatAfricahaveaclearappreciationoftheissuesatstakeandidentifyitsinterestssothatwecancontinuetospeakwithonevoiceinglobalforumsconvenedonthesematters,forifcareisnottakentheycanundorecentgainsinpeaceandsecurityandeconomicdevelopment.Already,growthratesinAfricaareexpectedtofalltoanaverageof2%thisyearcom-paredtoarateofnearly6%intheprecedinghalf-decade.Moreover,thereisclearevidencethateconomicinstabilityandpoliticalinsta-

Steps towards achieving

sustainable growth in

Africa

28 June 2009 Sirte, Libya

38 Part One

bilityoftengohandinhandandincreasingeconomichardshipandthe scramble for increasingly scarce resources may undermine hard wonpeaceandsecuritygains.Indeed,asthingsstand,theeconomicandfinancialcrisishasalreadybecomeadevelopmentcrisis,which,ifnothandledappropriatelywillbefurthercompoundedbyclimatechange.

Thefinanceandplanningministersdeliberatedontheglobalcrisisatthe2ndJointAU/ECAMeetinginCairo,Egypt,wheretheyreviewedtheimpactofthecrisisandalsoexploredoptionsavailabletoAfricaforrespondingtothecrisis,includingthrough“EnhancingtheEffec-tivenessofFiscalPolicyforDomesticResourceMobilization”.Accessto development finance is falling sharply through reduced exportearnings,officialdevelopmentassistanceand remittancesandwillnegativelyimpactonourabilitytofundtheprovisionofkeyservicesand slowdown the achievementof keydevelopment goals, espe-ciallytheMDGs.Itisthereforeessentialthatwecontinuetoexploredomesticpolicyoptionsforbridgingthedevelopmentfinancegap.

Thecollectiveapproach thatAfricahas takenso far to respond tothe crisis following the landmarkmeeting ofMinisters of FinanceandGovernorsofCentralBanks inTunis inNovember2008undertheaegisoftheAUCommission,theAfricanDevelopmentBankandECAhasalreadybeguntoyieldsomeresults.TheCommitteeofTenMinistersandGovernorssetupbytheTunismeetingpreparedAf-rica’ssubmissiontotheG20SummitwhichtookplaceinLondonlastAprilanditisgratifyingtoreportthatmanyoftheproposalsmadebyAfrica,throughtheleadershipofPrimeMinisterMelesZenawiofEthiopia,werecontainedintheG20communiqué,includingtheal-locationofnewspecialdrawingrights(SDRs),goldsales,supportforcounter-cyclical spending, reviewof thedebt sustainability frame-workandtheprovisionofmorecapitalforthemultilateraldevelop-mentbanks,includingtheAfricanDevelopmentBank.AfricanMem-berStatesalsofullyparticipatedintheUNHigh-LevelConferenceontheFinancialCrisisinNewYork.

This ishowever just thebeginning,andaclearmessagemustem-anate from this Council to urge that theG20 commitmentsmadeare actualised and that the promised resources reach their intended beneficiaries.Africaalsoneedstoensurethatitsconcernsaretakenonboard inongoing internationaldiscussionsonreformof the in-


ternationalfinancialsystemandarchitecture. Key inthisregard istheissueofgivingAfricagreatervoiceandrepresentationininterna-tionalfinancialprocessesandbodies.However,weshouldcontinueto demonstrate that our collective voice reachedon a consensualbasis isworth listening tobybeing coherent, consistent andwell-reasoned. IbelievethattheMinisterialStatementadoptedbytheFinanceMinisters inCairomettheserequirementsandshouldun-derpinAfrica’sparticipationattheforthcomingG8meetinginItalyaswellasthenextG20meetinginNewYork.ItsspiritwillalsoserveAfricawell inongoingtradenegotiationsconcerningtheEconomicPartnership Agreements with the European Union and the DohaRoundtradetalksoftheWTO,whoseAid-for-Tradeagendashouldbeutilisedtothefullest.

ClimatechangeisanotherareainwhichAfricaneedstospeakwithaclear,consistentandcommonvoiceandIampleasedtoreportthattheAUCommissionandECAhavebeenworkingtogetherwithcol-leagues in the AfDB to support Member States in the forthcoming negotiationsonapost-Kyoto frameworkonclimatechange.Thereareseveralareasofimportanceintheclimatechangenegotiationssuch as mitigation, adaptation, technology transfer, and finance.However,becauseAfricadoesnotcontributemuchtotheenviron-mentaldamagecausingclimatechange,itskeyconcernisrelatedtoadaptationandhowtofinancethecostofthisactivity.Whileesti-matesandfiguresvary,whatisclearisthatthecostofadaptationishighandtheflowofresourcestoAfricaunderexistingmechanismstofinanceclimatearelow.

TherecanbenodoubtthatAfricahasmadesubstantialprogressinagriculturalproduction,whichisthemainstayofoureconomies,andtheComprehensiveAfricaAgricultureDevelopmentProgrammeofNEPADhasbeeninstrumentalinplacingagricultureonthenationalandregionalpolicyagenda. However,as lastyear’s foodcrisis re-vealed,therearemajorstructuralchallenges inAfricanagriculturethatneedtobeaddressedifthiscontinentistoachieveitspotentialasamajoragriculturalproducer.Theseshortcomingsincludepreva-lenceofsubsistence farming, lowutilisationofabundant landandwaterresourcesandahighdegreeoffragmentationofagriculturaltradeacrossfifty-threeboundariesandconsequentlowlevelsofin-tra-Africatradeinagriculture.

40 Part One

ItisimperativethatAfricatakearegionalapproachanduseitsdiver-sityofresourceendowmentstodevelopregionallyintegratedstrate-gicagriculturalcommodityvaluechains.Sincethedifferentregionsofthiscontinentaresuitedtoproducingdifferenttypesofagricul-turalcommodities,thisshouldbeusedasabasisforcreatingalargermarketandaddingvaluefordifferentactivitiesacrossthecontinent.Public-privatepartnershipsshouldbeusedtopromotecross-borderinvestmentintheseactivitiesandthecreationofAfricanjointven-turesacrosstheagriculturalvaluechain.

Inordertoputagriculturalactivitiesonafirmerfooting,itwouldbeessential toaddress thekey issueof landpolicy,whichhas strongpoliticalundertonesandcanundermineprogressbeingmadeinag-ricultural development. There is stillmuch debate aboutwhetherrecentforeignacquisitionsoflargetractsoflandinAfricaforagricul-turalproductionarelandgrabsorforeigndirectinvestmentinagri-culture.Whateverthecase,thereisneedforourcountriestohaveaproperframeworkinwhichtobeabletoaddresslandpolicyissues,which iswhyAUC/ECA/AfDBcollaboratedtodevelopaLandPolicyInitiative.LPIisnotamodeloflandpolicyforthecontinentbutrath-eratoolthatourMemberStatescanusetodeveloptheirownlandpolicy initiatives. Itwill similarlybeuseful toRECswith regard totransboundarynaturalresourcemanagementandharmonisationoflandlawswhereneeded.

BeforeIconclude,permitmetoreassureyouofthecontinuedstrongcommitmentoftheUnitedNationssystemtosupporttheworkoftheAfricanUnion Commission across the board. We continue toworkwiththeAUCommissionandwiththecollaborationandsup-portofotherbilateralandmultilateralpartnerstopromotethekeyobjective of peace and security in Africa including through jointpeacekeepingoperationsandsupporttothewell-structuredpeaceandsecurityarchitectureof theUnion. Weareallencouragedbytheprogressbeingmade to realiseour aspirations for apeaceful,secureanddemocraticAfrica,whichisasinequanonforsocialandeconomicprogress.

ItisalsothespiritthatunderpinsthecollaborationbetweenECAandtheAfricanUnionCommission,whichcontinuestowaxstronger.Inadditiontoour2ndJointMeetingofMinistersofFinance,whichIre-ferredtoearlier,wehavealsocollaboratedinameaningfulmanner


acrosskeyservicelinessuchasknowledgegenerationandmanage-ment,consensusbuildingandtechnicalcooperation.InadditiontotheEconomicReportonAfrica,AfDBhasjoinedusintheproductionoftheAssessingRegionalIntegrationinAfricareport,theAfricanSta-tisticalYearbookaswellastheMDGProgressReporttobesubmittedtotheAssembly.WealsojointlylaunchedtheCoalitionforDialogueonAfrica(CoDA)inAddisAbabainMarch2009.Itsworkisguidedbyanindependenthigh-levelAdvisoryBoard,headedbyformerPresi-dentFestusMogaeofBotswanawithanumberofothereminentanddistinguishedAfricansandnon-Africansamongstitsmembers.

A key consideration in all theseactivities, including the consensusbuildingaroundthefinancialcrisisandclimatechangenegotiations,isthedesiretoensurethatAfrica’srecentprogressisnotderailed.Keyinthisregardisthepromotionofregionalintegration,whichisacommonthreadtyingalltheseissuestogether.Thepeopleofthiscontinentwillbewellservedifweareabletospeakwithastronger,unifiedvoicebackedbyadiversified,integratedandwell-functioningeconomythatisunderpinnedbysuccessfultransboundaryactivitiesandprojects.

42 Part One

Thisyearisparticularlysignificantbecauseitmarksthestartofanewdecadeandnewbeginningsarealwaysanopportunityfor

renewalandrededicationtoourdevelopmentaspirations.Perhapsmorenoteworthyisthefactthatthisyearmarksthefiftiethanniver-saryof independencefora largenumberofAfricancountries. Af-ricawasencouragedby the trailblazingexampleof countries suchasSudanandGhana,butwithacriticalmassofcountriesachievingindependencein1960,thatyearcouldarguablybedescribedastheturningpointinthestrugglefordecolonisation.Aswecelebratethisanniversary,wemust inevitablyreflectonhowwellwehavedoneoverthisperiodinthevariousareasinwhichwehavebeencollec-tivelyengagedsincethen.

Ifsuchareflectionexerciseistakenasasnapshotofthelastdecade,itwillbequiteevidentthatAfricahasmadeconsiderableprogresssincethebeginningofthenewmillennium.ThiswastheperiodinwhichtheAfricanUnionwasestablishedandNEPADadopted.Priorto theoutbreakof the global economic andfinancial crisis, Africahadconsistentlyachievedannualgrowthratesof6%.Itwasmakingsteady progress in peace and security issues and had taken the lead indefining itsowngovernanceagendabypromotingmoredemo-craticandaccountablepoliticalstructuresinthecontinent,includingthroughthecreationoftheAfricanPeerReviewMechanism.More-over,ourcontinenthasmadeconsiderableprogressinanumberof

Encouraging faster and

deeper integration

16th Ordinary Session of the African Union Executive Council



social development areas, with some remarkable gains in genderequality, primary school enrolment, reductions in HIV prevalencerates andprogress in the treatmentof infectious andpreventablediseases.

Last year, 2009, however marked a departure from this trend associo-economicdevelopmentsinAfricawereovershadowedbytheglobaleconomicandfinancialcrisisandthepriorfoodandfuelcrisis.Exportandgovernmentearningsdroppedsignificantlyasdidremit-tancesandotherfinancialflows.ContinentalGDPdroppedfrom4.9percentin2008to1.6percentin2009,whichisbelowthepopula-tiongrowthrateand impliesa fall inpercapita income. Similarly,governanceconditionsseemedtogivefreshcauseforconcernwitha rashofunconstitutionalchangesofgovernments thathaveblot-tedthepolitical landscape intherecentpastandwhichshouldbefirmlyresisted.Maternalmortalityandviolenceagainstwomenandchildrenremainunacceptablyhighandoursocietiescontinuetofacechallengesinprovidingadequatelyformarginalisedandvulnerablegroupsaswellasforrefugeesandinternallydisplacedpersons.

Iwouldposit however that despite this departure from the trendthere is no cause for pessimism. The forecast in the forthcomingEconomicReportforAfrica,jointlypublishedbyECAandAfricanUn-ionCommission, shows thatAfrica’sGDP isexpected togrowatarateof4.3percentin2010.However,weneedtoensurethatourdevelopment policies go beyond improving macroeconomic man-agementandbalances,whichareimportantandnecessarybutinsuf-ficient.Structuresareneededtopromoteproduction,employmentand trade to transform our small and fragmented economies into strong,diversifiedand resiliententities that cangenerateemploy-mentfortheirteemingpopulations.

TheadoptionbytheInternationalLabourOrganization(ILO)andUNEconomicandSocialCounciloftheGlobalJobsPactaimedatstimu-latingeconomicrecovery,generatingjobsandprovidingprotectiontoworkingpeopleandtheirfamiliesisastepintherightdirection.Alleffortsmustbeunderpinnedbyarenewedsenseofurgency inpromotingAfrica’sregionalintegrationagenda.RegionalintegrationisimperativeifAfricaistorealiseitspotentialtobecomeadynamiceconomicforce.

44 Part One

Fasteranddeeper integrationwillnotonly reflect thepan-AfricanidealofcontinentalunitybutwillalsoenableAfricatoengagemoremeaningfullyinglobalpoliticalandeconomicprocesses,whichareacentralconcernofthisExecutiveCouncil.AcommonAfricanvoicehas been used to great effect in recent international forums suchas theG20meetingsaswellas theClimateChangeConference inCopenhagen,whichraisedtheclimatechangechallengetothehigh-estpoliticallevel.The“CopenhagenAccord”wasitsmainoutcomeandcommitmentscontainedthereincludelimitingglobalwarmingtobelow2OC, recordingemission reduction targets andprovidingshort and long-termfinance for developing countries. The Accordrepresents an importantfirst step toestablishing a legallybindingagreementforapost2012internationalclimatechangeregime.

Regional integration is also imperative to enablemore economiesofscaleintheproductiveactivitiesthatmustunderpingreatercom-petitivenessandgrowthinthecontinent. Intoday’sglobalknowl-edge economy and information-driven society, economic successisincreasinglybasedontheeffectiveutilisationofintangibleassetssuchasknowledge,skillsandinnovativepotentialaskeyresourcesfor competitive advantage. Information and communication tech-nologies or ICTs can improve performance of businesses and theefficiency ofmarketswhile empowering citizens and communitiesandincreasingtheiraccesstoknowledge.IthereforesaluteAfricanleadersfortheirchoiceoftheme:InformationandCommunicationTechnologiesinAfrica:ChallengesandProspectsforDevelopment.

ICTsprovideseveralopportunitiesforAfricancountries.Forinstance,asmobilephoneusageexpandsitwillfacilitatehealth,commerce,trading,andfinancialservicessuchasm-bankingandm-payments.Africanscannowuse theirmobilephones tomakeperson-to-per-sonpayments,transfermoneyorpurchasepre-paidelectricity.ICTdevices also provide awealth of information that have enhancedtheeducationandknowledgestreamforchildren, leading to theirfurther understanding of Africa’s development challenges, humanrightsissuesandthescienceandtechnologyunderpinningICTs.Fur-thermore, theuseof geo-spatial technology formanagement andexplorationofnaturalresourcesanddisasterawarenessandprepar-ednessaswellasinclimatechangeadaptationwillcontributetoim-provingsocio-economicconditionsinAfrica.


While Africa has chalked some milestones in embracing and adapt-ingtotheinformationsocietyandtheuseofICTs,thereisstillsomewaytogo.For instance,Africaneedstobe integratedmuchfasterintotheknowledgeeconomythathascomeaboutasaresultoftheICT revolution. Therefore some critical foundation blocs need ur-gentlytobeputinplace,namelybywayofinfrastructure,regionalbackbonesandconnectivity. Internetgrowthandspeedisstill lim-itedinAfricawherewehaveonlyonefixedbroadbandsubscriberforevery1,000inhabitants.Europeincomparisonhas200subscribersper1,000people.

ThroughtheAfricanInformationSocietyInitiative,aimedatboostingthedeploymentofICTsinsocietyandeconomy,andwiththesupportofECAanditspartners,particularlytheGovernmentofFinland,uptofortyAfricancountrieshavemadegoodprogressinadoptingICTstrategies,especiallythroughNationalInformationandCommunica-tionInfrastructurePlans(NICIs).Tremendouseffortsarealsounder-waytolaunche-health,e-governmentande-commerceapplicationsinrelatedsectors.Throughinitiativessuchase-CEMACande-SADC,ICTs are being used in support of regional integration to promoteharmonisationofnationalpoliciesandregulatoryframeworks.

Inconclusion,IwanttoreiteratetheabidingfaithoftheUnitedNa-tionsintheprospectsforAfrica’slong-termprogress.Thisiswhywecontinue toplace appropriate emphasis on the functioningof theRegionalCoordinationMechanismofUNagenciesworking in sup-portoftheAfricanUnionandNEPADProgramme.

TheUnitedNationssystemremainsfirmlycommittedtosupportingAfricanUnionobjectivesinpeaceandsecurity,developmentandhu-manrightsaswellasforamorerapidintegrationofthecontinent.

46 Part One

Using science and technology

to accelerate Africa’s

development process

2nd Science with Africa Conference

Addis Ababa, Ethiopia23 June 2010

TheSciencewithAfricaconferencewasbornoutofourstronglyheldbeliefatECAthatalongwithimprovedeconomicmanage-

ment and governance, the proper use and application of science,technology and innovationwas an indispensable ingredient in theAfrican development process. This viewwas informed by the re-alisation that scientific thinking and discovery must underpin thestructural transformation of African economies as evidenced bytheexperienceofotherpartsoftheworld,especiallytheemergingeconomiesofAsiaandLatinAmerica.Thepositiveresponsebythescientificcommunityandotherstakeholderstothefirstconferenceshowedthatsimilarviewswereshared.

There have been several key developments in the global environ-mentsincewefirstmetforSciencewithAfrica.Thisconferenceistaking place against the continuing backgroundof the global eco-nomicandfinancialcrisisfromwhichmanyofoureconomiesareyettorecover.Thecrisishasputatriskthehardearnedgainsinimprov-ingthe livingconditionsofourpeopleand inmeetingthegloballyagreedMillenniumDevelopmentGoals.Therecoveryremainsshakyassomecountriesfacehugedebtsanddeficits.Theglobalcrisiswillhave undoubtedly also impacted on science and technology invest-mentsinAfrica,whichwerealreadyrelativelylow.Itwillnodoubtalso impact on the support that Africa receives for its research and developmentactivitiesthroughgrantsandcollaborativeprojects.


Theeconomicandfinancialcrisisishoweveragoodopportunitytorefocus and reinvigorate the science and technology agenda in Af-rica. Crisisspurs innovation,andthereareexamplesfromallovertheworldtoshowhowcountriesarerelyingoninnovationanden-trepreneurship to recover from the economic crisis and remain com-petitive.TheUnitedStates, in formulatinga response to thecrisisalso took account of the climate change challenge and accordingly seekstoinvestabout$150billioninthenextgenerationofenergytechnologies.

Thisbringsmetothethemeofthisconference:“Science,innovationand entrepreneurship”. There aremany factors that contribute togrowthbutforourpurposes,itisalsoimportanttohighlighttheim-portantcontributionofinnovationandentrepreneurship.Bybring-ingcriticalthinkingtobearonimprovingandadaptingproductsandprocesses,innovationalsoenablesentrepreneurstoactualizetheirvisionandaddvalue. Amajorobjectiveofthisconferenceshouldaccordinglybetoidentifymeasuresandmechanismsforcreatinganenvironmentthatbringsinnovationandentrepreneurshiptoplayinaddressing Africa’s pressing challenges and shaping its future oppor-tunities.

Thecrucial linkbetweenscience, innovationandentrepreneurshipcanbeseenfromtheglobalriseof largetechnologyfirmssuchasApple, Amazon, Google, Infosys, Microsoft and Samsung, whoseachievements have been driven by these processes. The mainstrengthof thesefirms is their intellectual assets,oftenprotectedbyintellectualpropertyrightsthathaveenabledrapidgrowthinthetradeinintellectualassetsandhightechnologyproducts.TheextenttowhichAfricahasbenefitedfromthesedevelopmentsremainsun-knownbutcurrentECAresearchindicatesthatglobalroyaltiesandlicensingfeepaymentshavegrownbyabout500%fromabout$27billionto$161billionbetween1990and2008.Yet,Africa’sshareofthisgrowing trade in intellectualassets isabout0.75%,which isafarcryfromitsalsolowshareofglobalmerchandiseexports,whichstandsat3.4%.

Inthesamevein,Africa’sperformanceinthegenerationandowner-shipofknowledgeisfarbelowitscurrentpotential.Africaaccountsforabout2.4%oftheglobalresearchers–slightlyhigherthanthenumberofresearchers in India.Yet, Indiawasgrantedthreetimes

48 Part One

morepatentsthanAfricabytheUnitedStatesPatentOfficein2008.It isthereforeimperativeforAfricatoseedandnurtureacadreofentrepreneurs thatwillestablish itsown leading technologyfirms,which is not an impossible task. Recently, African entrepreneurshavescoredsuccesses inbringing innovativeproducts tomarket inthemobilephoneindustry,includingtheintroductionofsystemsthatallowuserstosharetheircreditwithothersandtoperformsimplebankingoperations.

AnotherkeyissueforthisconferenceishowAfricacanstimulatein-novationthroughacombinationofpoliciestosupportresearchanddevelopmentandtostimulatetheirusebyentrepreneursandven-turecapitalists.ItishearteningtonoteinthisregardthatanumberofAfricancountriesareinvestinginscienceandtechnologyinfrastruc-turesandincreasingR&Dexpenditure.Thisyear,TanzaniaincreasedtheallocationtoitsScienceandTechnologyCommissionbyupto36timesmorethantheallocationof2009.Similarly,Ugandaisboostingsalariesofresearchersthroughan$8millioninvestmentwithanother$2.7millionallocatedtofacilitatetechnologycommercialisation.

Thesesupply sideactionsneed tobematchedbymeasures to im-prove the business environment and protect intellectual property rightsonthecontinent.Otherincentivesfortechnologytransferandcommercialisation and building of public-private partnerships arepolicies that can lower risks for technology and business develop-ment.Suchmeasurescanencouragetheprivatesectorto innovateevenwhenfinancial resourcesare limited. Indeed, therearewaysinwhichafarmerwhocannotaffordatractorcouldstillbehelpedtobecomemorecompetitiveifprovidedwithimprovedsoilandpestmanagement,irrigationcanals,improvedcropvarietiesandalterna-tivefertilizers.

Another key message that should emanate from this conference is theneed tobebold andpositive in theuseof newandemergingtechnologies.Whiletherewillundoubtedlybecompetitionforscarceresourceswiththepressingsocialandeconomicchallengesthatthiscontinentfaces,Africansmustalsobestrategicandvisionaryintheirattitudestoadaptingandutilisingnewtechnologies. Somepeoplefeel that Africa’s failure to capitalise on the development of the Inter-netintheearly1990swasinasensealostopportunity.Bythetimewe embraced the technology other regions had accumulated the


necessarytechnologicalandorganisationalknowledgetomanagetheknowledgeeconomy.ThechallengeofclimatechangerequiresthatAfricashouldpositionitselftobenefitfromthegrowthopportunitiesintheemerginggreeneconomy.

Partnershipsarealsocriticalforthesuccessofourefforts.Partner-shipsoffertheopportunityforAfrica’sscientificcommunitytohar-ness its intellectual assets and resources and translate them into commercial successes. In the United States, a group of young re-searchscientistsworkingforacompanycalledIntellectualVenturesare trying to develop a computer model that could help eradicate malaria,whichafflicts300millionto500millionpeopleayearandkills1millionofthem,mainlychildreninAfrica.Wethereforeneedtoexplorehowourownyoungscientistscancontributetosuchun-dertakings.

ECAisalsointheprocessofexpandingitscollaborationwithregionalbodies involved inscienceandtechnology,suchastheAfricanRe-gionalCentreforTechnology(ARCT).ARCTwasfoundedundertheauspicesofECAandtheAfricanUnionandweshallcontinuetoworkcloselywiththeminadvancingthescienceandtechnologyagendainAfrica.

InowturntosomeofthethingsthatECAanditspartnershaveputinplacefollowingthefirstSciencewithAfricaconference.ParticipantswillbepleasedtoknowthataTechnologyDevelopmentandTransferNetworkandtheAfricanScience,TechnologyandInnovationEndow-mentFund(ASTIEF)werelaunched.

TheTechnologyDevelopmentandTransferNetworkseekstoenhancethecapacityofitsmemberstobringpotentiallyusefulresearchleadsand technologies tomarket and facilitate inter-firmand intra-firmtechnologytransfer.Itwillaccordinglycreatearegionalpoolofsea-sonedscientistsandbusinessleadersthatwillhelpemergingtech-no-entrepreneurstotapexpertiseandresourceswithinandoutsidetheirnationalborders.

ASTIEF,whichissupportedbytheGovernmentofFinland,isarevo-lutionaryfundingmechanismtosupportbankableR&Doutputsthatarelikelytomakeacommercialandsocialreturn.Thisnovelinitia-tiveisbeingdevelopedthroughauniquepublic-privatepartnership

50 Part One

thatbringstogethertheentrepreneurialcultureandcreativityoftheprivatesector,ononehand,andtheabilityofthepublicsectortoimprovethebusinessclimate.

WewillalsobelaunchingtheAfricanSciencetoBusinessChallengewiththeResearchTriangleInstitute(RTI)-InternationaloftheUnitedStates.ThisinitiativewillenablesuccessfulcandidatestospendtimeatRTI,learninghowtotransformtheirideasintoaviablebusinessventure.Theinitiativewillbenefitsmallandmedium-sizeenterprises(SMEs)andentrepreneursoperatingintheinformalsector.Alltheseinitiativeswillbecomplementedbyourpilotassessmentofthein-novationclimateinsomeselectedAfricancountriesthisyear.Thisassessmentfocusesonsevencore innovationpolicyareasandwillbuildontheR&DandCommunityInnovationSurveysundertakenbyNEPAD.

Withthesefewthoughts,letmetakethisopportunitytothankyouallfortakingthetimeoutofyourbusyschedulestobewithustoday.YourpresenceishighlyvaluedandIhopethatyourinvestmentofre-sources,timeandenergywillbefruitfulindividuallyandcollectivelyinadvancingthecauseofAfricandevelopment.


Productive capacities, economic

growth and poverty

reduction in Africa

UNCTAD regional workshop 13 April 2011

Addis Ababa, Ethiopia

TheissueofproductivecapacitiesandpovertyreductionhasbeenofcriticalimportancetoAfricaovertheyears.Economicandsocial

developmentinAfricaandespeciallyinAfricanLDCshascontinuedtobeconstrainedbyinadequateproductivecapacityandlowproductiv-itythatadverselyaffecttheireffortstopromotehighandsustainablegrowthandtoreducepoverty.

Asyouknow,thecontinentrecordedrelativelyhighGDPgrowthdur-ing the lastdecade,but thisgrowth remains farbelow itspotentialandthelevelrequiredtomakeasignificantdentonunemploymentandpovertyreduction.ThereisacriticalneedforAfricato improveproductivecapacities,overcomestructuralimpedimentsandsupply-sideconstraintsandpromotestructuraltransformationinordertoac-celerateandsustaingrowth,benefitfromglobalizationandachieveitseconomicandsocialdevelopmentgoals.

Someofthefactors identifiedbyECAworkascriticaltostimulatingproductivecapacitiesforenhancedgrowthandpovertyreductioninAfricainclude:stablemacroeconomicconditionsandaconductivele-galandregulatoryframework,targetedinvestmentstoimprovephysi-calinfrastructureandhumancapitalaswellaslabor-intensiveinvest-menttocreatejobs.Thesefactorsarecriticalforreducingtransactionscosts, increasing theproductivity of factors of production, reducingbottlenecksintheproductionprocessandopeningupnewinvestment

52 Part One

opportunitiesandmarkets,especiallyforAfricanLDCs.

ThevulnerabilityofAfricanLDCstoexogenousshockshasbeenthehallmarkof their inadequatesocialandeconomicperformance.Be-sideseffortsatnationallevel,bothregionalandglobalsupportises-sentialforthemtoaddresstheirspecialdevelopmentchallenges.

Therefore,thismeetingcomesataveryopportunemoment.AfricanLDCsgrewatanaveragemorethan5percentperannum,beforesuf-fering a setbackwith the combinedfinancial, fuel and food crises.Although many the economies of many of these countries rebound afterthecrisis,growthratesremainfragileandnotexpectedtoreachthethresholdof7percentorsignificantlyreduceunemploymentandpovertyrates.AlsomacroeconomicimbalanceshavewidenedinmanyAfricanLDCsasaresultofthecrisis.

GrowthpatternsinAfricanLDCswereunderpinnedbyprimarycom-modityexportswhichconstituteover70percentoftheirexports.Theproductionofprimaryproductsisgenerallycapitalintensiveandhaslittleforwardandbackwardlinkagestothelocaleconomy.Thisren-dersAfricanLDCsparticularlyvulnerabletoexogenousfactors,includ-ingthetriplecrisesthathaveadverselyaffectedlivelihoods,agricul-turalproductionandhealthburdens.

EconomicdiversificationandstructuraltransformationisvitalforAf-ricanLDCstoaccelerateandsustaingrowth,reducevulnerabilityandreducepoverty. In this regard, theCommission’sannualConferenceofAfricanMinistersofFinance,PlanningandEconomicDevelopmenthas repeatedly expressed support to and advocated the cause of Afri-canLDCSparticularreferencetothemobilizationoffinancesfortheirdevelopmentandthebuildingofinstitutionsthatcouldassistthemtoovercometheirspecialdevelopmentconstraints.

SupportingLDCshasalwaysbeenatthecoreofECAworkprogrammeandhasrecentlybeeninstitutionalizedbycreatingadedicatedsectionthatspecificallyaddressesLDCsissues(MDGs/LDCsSection).OneofthekeyrecentactionstakenbyECAinpreparationfortheupcomingIstanbulmeetingwastoorganizetheAfricanregional reviewof theBrusselsProgrammeofActionforLDCswhichproducedtheinputintoLDC-IVandarticulatedacommonAfricanpositionandvoiceonthewayforwardforthenextprogrammeofAction.


OtherexamplesofECAactivitiesinsupportofAfricanLDCsisprovidedbyitsrecurrentpublications,includingtheEconomicReportonAfrica(ERA),theAfricaMDGsReport,andtheAfricanGovernanceReporttonameafew.Theseandotherknowledgeproductsandcapacitybuild-ingandadvisoryservicesprovidedbyECAfocusesonstrengtheningeffortsbyAfricancountriesandAfricanLDCsinparticulartoimproveeconomicgovernanceandbuildinstitutions,accelerateregionalinte-gration,mobilizingresourcesandaddressingthechallengesofclimatechange,statistics,tradenegotiationsandpartnershipagreementsandscienceandtechnology,amongotherissues.

Institutionalized and special assistance to African LDCs requires re-sourcesandthereforecallsuponallofustoworktogetherandinten-sifyourefforts. Forexample,oneof the recurrentchallenges inas-sessingprogresstowardstheProgrammeofActionforLDCshasbeenmonitoringprogressinsuchawaythatinformspolicymakersonperti-nentinterventionsespeciallywhenvariationwithincountriesislarge.Thisrequireshighlydisaggregateddataatlowerlevelsofgovernment,whichisnotavailableinmostAfricanLDCs.

Againstthisbackdrop,ECAisdevelopinganinnovativeanalyticaltoolthatspatiallyexhibitsindicatorsofprogresstowardstheProgrammeofActionforLDCsatnationalandsub-nationallevels.Thisvisualpres-entationofnationalandsub-nationalprogressprovidespolicymak-erswithgeospatialinformationcrucialfortargetedinterventionsandrelevantfiscaltransfersacrossadministrativeborders.IampleasedtoinformyouthatthismonitoringtoolwillbepresentedatasideeventduringtheLDC-IVConferenceinIstanbul.

ItgivesmegreatpleasurethattheUNCommitteeofExecutiveBod-ies’s(UN-CEB)clusterontradeandproductivecapacity,inwhichECAplaysanimportantparthasarrivedataconsensualwayforwardforLDCs.ThisactionplanfullyreflectsthechallengesandopportunitiesdeliberatedattheAfricanLDC-IVpreparatorymeetingandmirrorthewayforwardintheOutcomeDocument.

Inconclusion,thereremainsmuchtobedoneandthismeetingaffordsustheopportunitytotakestockandrenewourefforts.Ithereforelookforward to your active participation, useful feedback, and ideas onhowwecanworktogethertoassureAfrica’sbrightfuture.

54 Part One

NEPAD’s contributions to the MDGs

Panel discussion on NEPAD and the MDGs: Progress, Challenges

and the Way Forward

7 October 2011New York

ThisdiscussionistimelyandrelevantasitcomesatatimewhenNEPADiscelebratingits10thanniversary,whilethetargetdate

of2015setforachievingtheMDGsisfastapproachingandconsid-erationisalreadybeinggiventoapossiblepost-MDGdevelopmentagenda.

My remarks today will recall the nexus between NEPAD and theMDGs,examine theachievementsof these twovitaldevelopmentframeworksandhighlightsomeofthevitalworkthathasbeendonebytheUnitedNationstopromotetheirlaudableobjectives.

TheMillenniumDevelopmentGoals (MDGs)andtheNewPartner-shipforAfricanDevelopment(NEPAD)are inextricably linked. TheMDGsaim toachievevitalobjectives inpoverty reduction,educa-tion,health,gender,andenvironmentandserveasareferenceformeasuring development progresswhileNEPAD is at once a visionandstrategicframeworktoincreasethepaceandimpactofAfrica’ssocio-economicdevelopment.TheMDGsandNEPADthushavesim-ilar goals and both rely on partnerships at the global and regional levelsfortheirsuccessful implementation. Indeed,NEPADcanbedescribedastheframeworkforachievingtheMDGsinAfrica.

NEPAD’sprogrammes,projectsandtargetsareaccordinglyconsist-entwithandcloselyalignedtotheachievementoftheMDGs.Forin-


stance,NEPADhighlightsagricultureandfoodsecurityasoneofkeythematicareasoffocusandhasdesignedtheComprehensiveAfricaAgricultureDevelopmentProgramme(CAADP)whoseaimsarecon-sistentwiththeobjectivesofMDG1toreducepovertyandhunger.

Similarly,theotherMDGsthataimtoachieveuniversalprimaryedu-cation,reducechildmortality,improvematernalhealthandcombatcommunicablediseasesallrelatetodifferentaspectsofhumande-velopment thatareat theheartofNEPAD. It is in this regard thatNEPADhasseveralprogrammesthatspecificallycatertopromotingsuchobjectives,anotableexamplebeingtheConsolidatedPlanofAction (CPA) for Science and Technology intended to provide theknowledgethatwillbackstoptheeducational,healthandenviron-mentalaimsoftheMDGsinAfrica.

Inotherwords,giventheircommonpurposeandmutualityofobjec-tives,successesrecordedontheMDGfrontalsocontributetotheachievementoftheNEPADvisionandviceversa.Tostartwith,mostofuswouldagreethattheMDGshavebeensuccessfulingalvanizingpoliticalsupportforhumandevelopmentinthesenseofinfluencingpolicy discourse and as a basis for measuring progress in achieving consensuallyagreedgoals,targetsandindicators.

Inthisregard,andthroughourjointECA-AUC-ADBandUNDPannualregionalreportonAfrica’sprogresstowardstheMDGs,wehaveseenthatAfrica’sprogresstowardtheMDGshasgenerallybeenpositive,although performance has been mixed across indicators and coun-tries.Wecanpoint,forinstance,tothecontinent’sprogresstowardsuniversalprimaryenrolmentwhichincreasedsignificantlyfrom65%in1999to83%in2009.Similarlythegoalofgenderparityatprimaryschoollevelisontrack,whilewomen’srepresentationinparliamentincreased in over 80 percent of African countries between 1990and2010.AdvancesinstemmingtheHIVandAIDSpandemichavebeensignificantinthemajorityofAfricancountries,bothintermsofpreventingnewinfectionsandinmakingAnti-RetroviralTreatment(ART)morereadilyavailabletoinfectedpeople.

Overall, however, the initial rapidprogress in achieving theMDGswastosomeextentbeensloweddownbytheadverseeffectsoftheinternationalfuel,foodandfinancialcrises.However,theintegrationofMDGsintonationaldevelopmentstrategieshelpedtomitigatethe

56 Part One

negativeimpactofthesecrisesandsuchinstitutionalinnovationalsoprovidedforamoremediumtermapproachtodevelopment.

Therehavebeenotherchallengesaswell. For instance, theposi-tivegrowthinAfricasincetheturnofthenewMillenniumhasnotresulted in job creation just as domestic resourceshavenot beensufficientlymobilized for the implementation of programmes andprojectstostempoverty.Similarly,aidflowsfromdevelopmentpart-nersinsupportoftheMDGswhilesubstantiallyupscaledremainwellshortofcommitmentsmade.

Thesechallengesdopointtowardsmoresystemicissueswhichneedtobeaddressedintherun-upto2015andthisiswherethelessonslearnt fromthe implementationofNEPADover thepast tenyearswillcomeinuseful.TheextentofinternationalsupporttosuccessfulNEPADprogrammessuchasgovernance,agricultureandinfrastruc-turesuchastheAfricanPeerReviewMechnism(APRM),CAADPandtheProgrammefor Infrastructure inAfrica (PIDA)showsthatpart-nershipsremainskeyintheAfricandevelopmentlandscape.

Similarly,NEPADhasplayedanimportantroleinpromotingregionalintegrationbypopularizingaregionalandsub-regionalapproachtoprogrammingandprojectimplementation.Throughitsmajorcon-tinentalframeworksandacrossawiderangeofsectors,NEPADhascreatedanapproachwhereinprojectshavebeenprioritizedbasedontheirreadinessforimplementationanddegreeofcontributiontoregionalintegration.

Inthesamecontext,NEPADhascontributedtoimprovedcoherenceinthevariousmechanismsandarrangementsbywhichdevelopmentpartnersprovidesupporttotheAfricancontinent.InthecaseoftheUnitedNations,theGeneralAssemblyinitsResolution57/7calledforUNsystemorganisationstoaligntheiractivitiesinAfricawiththeprioritiesofNEPAD,andurged thescalingupof resources for thispurpose.

Notwithstandingthesenotableachievements,significantchallengesremain. For instance, themomentumof international support forAfrica isnot yet strongenough tobe irreversible, and thereareanumberofareasinwhichpolicymeasuresandpracticalactionsareneededtolendimpetustotheimplementationofNEPAD.Onevital


areaistheroleoftheprivatesectorintheimplementationofNEPAD,wheremoreneedstobedonetostrengthenpublic-privatepartner-ships–includingindeliveringpublicgoodstoachievetheMDGs,andthebuildingofinfrastructure.

Such issuespoint to theneed fornew thinkingon the roleof theStateandother institutions inAfricawhichwaswhythe2011AU/ECAConferenceofMinistersofFinance,PlanningandEconomyandtheaccompanyingEconomicReportonAfricawasdevotedto‘Gov-erningDevelopmentinAfrica’.WehavealsoundertakenknowledgeactivitiestosupportAfricanprioritiesinregionalintegration,trade,food security, climate change, infrastructure, gender, science andtechnologyandgovernancetomentionbutafewareasofworkper-tinenttotheNEPADagenda.

Atamoreoperationallevel,UNsupporttotheNEPADagendaiscoor-dinatedundertheauspicesoftheRegionalCoordinationMechanismforAfrica. RCM-Africaprovides a forum forbringingUNagenciestogetherononesidetointeractandengageasonewiththeAfricanUnion, theNEPAD Planning and Coordinating Agency and the Re-gionalEconomicCommunities.Itisnowthemainmechanismforco-ordinatingUNsystemsupporttoNEPADandhasachievedenhancedinteragency coherence and coordinationwhile promoting broadercooperationthroughjointactivitiesandprogrammes.RCM-AfricaisorganizedaroundninethematicclustersthatreflecttheobjectivesandpriorityworkareasofAU/NEPADandECAservesasconvenerandprovidesthesecretariatoftheRCMontheUNside.

There is general agreement about the importance of improving Af-ricancapacities to implementprogrammessuchas theMDGsandNEPADandthisiswhyinNovember2006,theSecretaryGeneraloftheUNandtheChairpersonoftheAfricanUnionCommissionsignedaFrameworkAgreementfortheUNTen-YearCapacity-BuildingPro-grammefortheAfricanUnionwhichwiththefullintegrationofNE-PADintotheAfricanUnionisnowextendedtotheNPCAalongwithotherAUorgansandtheRegionalEconomicCommunities.Theim-plementationoftheTenYearCapacityBuildingPlan isalsocoordi-natedthroughtheRCM.

From an ECA specific dimension, our partnershipwith theNEPADAgency is guided by a Memorandum of Understanding between

58 Part One

thetwoinstitutions,whichisnowbackstoppedbyaMultiyearPro-grammeoutliningECAsupporttoNEPAD. Our intentiongoingfor-wardistomoveNEPADfromitsinitialandsuccessfulphaseoftrans-forming visions, philosophies, and principles into implementableprogrammestooneofimplementingconcreteregionalprojects.

Inconclusion,IwillliketounderscoretheimportanceofmaintainingandsupportingAfrica’seffortstobringcoherencetopolicymakingandpartnershipswithin the continent. This is important to avoidduplicationofeffortanddissipationofscarceresourcesaswestrivetoachievetheMDGsandsuccessfullyimplementtheNEPADagenda.policycoherenceandcoordinationofouractionsinsupportofNE-PADandtheMDGs.Evenaswebegintoreflectonthedevelopmentagendapost-2015,theUNmustremaincloselyengagedwiththeAUandNPCAtoensurethatthestrategicvisionandobjectivesofNEPADarefactoredintodeliberationsandeventualoutcomes.

LetmeendbycommendingDr.IbrahimMayakiforhisableandvi-sionary leadership of the NEPAD Agency and by assuring you all of ECA’scontinuedstrongcommitmenttosupportingAfrica’sregional,sub-regional andnational efforts to achieve theMDGsand imple-menttheNEPADagendafortheultimatepurposeofbuildingavi-brant,progressiveandintegratedAfrica.


NEPAD and Africa’s regional

integration agenda

41st Meeting of the NEPAD Steering Committee

Addis Ababa22 January 2011

A decadeago,AfricaUnionHeadsofStateandGovernment,withthe support of its regional institutions, initiated an ambitious

programme called the New Partnership for Africa’s Development(NEPAD)toaccelerateprogressinachievingsustaineddevelopmentinthecontinentandtoendthecontinent’smarginalizationinglobalaffairs.

Today,aswereflectonthemanyachievementsoftheNEPADpro-grammewe can attest to the determinationof Africa’s leadershipandinparticularthisSteeringCommitteetoimprovethefortunesofAfricanpeoplebywayofconcretisingthevisionsofthecontinent’sleadersintoworkableprogrammesandprojects.

NEPADprocesseshavestrengthenedintra-Africancooperationinthedevelopment of joint policies, programmes and projects and con-tributed to deepening Africa’s regional integration agenda. TheseincludewellknownframeworksliketheComprehensiveAfricanAg-riculturalDevelopmentProgramme(CAADP),TerrAfricaProgramme(for sustainable landmanagement), Programme for InfrastructureDevelopmentinAfrica(PIDA),andtheAfricanCapacityDevelopmentFramework.Inaddition,theAPRMhashighlightednotonlyissuesofgovernance for development but also the processes and strategies bywhichnationalconsultationsandconsensusbuildingcanbebuilt.

60 Part One

This meeting of the Steering Committee comes a year afterthe landmark decision of the 14th AU Summit on the integra-tion of the NEPAD programme into the AU structures and pro-cesses and the establishment of the NEPAD Planning and Coor-dinatingAgency. It isagainst thisbackground that Iwish to salute Dr.MayakiandhisstaffintheNEPADAgencyforstepsthathavebeentakentoaligntheirinternalprocessestothatoftheAUCommissionandtoarticulatea2010to2013StrategicDirectiondocumentand2010-2014BusinessPlanfortheNPCA.

I recall that in 2002 theUnitedNationsendorsed theNEPADpro-grammeastheoverarchingframeworkforAfrica’sdevelopmentandtheRegionalCoordinationMechanism(RCM)wasoriginallydesignedtosupporttheNEPADprogramme.However,sinceNEPADisnowanintegralprogrammeoftheAfricanUnion,theRCMwhichiscoordi-natedandconvenedbytheEconomicCommissionforAfrica,isnowalsogearedtooverseeingtheTenYearCapacityBuildingProgrammeinsupportoftheAUCandNPCA.

ThefirsttriennialreviewoftheTenYearCapacityBuildingProgrammewasundertakenatthelastRCMmeetinghereinAddisAbabainNo-vember2010. Themainoutcomeofthereviewwastheadoptionof recommendations toboost the implementationof theTenYearCapacityBuildingProgrammenotablybydevelopingcomprehensivecapacitybuildingprogrammefortheAUC,NPCAandtheRECs,mo-bilisingresourcesforjointactivitiesincapacitybuilding,andutilisingtheRCMplatform for advancingAfrica’s preparations towards theUNSustainableDevelopmentConferencein2012.

AlsoofparticularsignificanceisthefactthattheAUCmovedtotakeownershipofRCM-Africawhich isnowthe recognizedmechanismforcoordinatingUNsupportforAUCandNPCA.

ThefirstNEPADdecadewasspentonprogrammedesign,develop-ing partnerships, and aligning institutional structures- that is, em-beddingthephilosophicalframeworkunderpinningtheprinciplesofownershipandleadershipinAfricandevelopmentprocessesandlay-ingthefoundationsforsustainabledevelopmentinAfrica.

IcannowenvisagetheusheringinofanewNEPADdecadewhereemphasiswouldbeplacedonimplementationanddeliveringdevel-


opmentresults.Inthisregard,theSteeringCommitteeneedstoleadtheway increatingamoreresultsorientedapproachthatwillen-ablevigorousassessmentsofprogressinimplementationofNEPADprogrammes aswell as amove into creative andmultidisciplinaryapproaches to development programming and the harnessing of ef-fectivepartnershipswiththeAfricanprivatesectorandcivilsociety.

Global challenges also need to be clearly factored into Africa’s devel-opmentplanningprocesses.Theundeniableriskofclimatechange,risingenergyandfoodprices,aloomingcurrencycrisisandissuesofsovereigndebtwillallimpactonAfrica.WemustthereforeremainalerttothesehappeningsandplanforhowbesttoprotectAfrica’sencouraginggrowth.

On its part, ECA places great emphasis on its collaboration withtheNPCAand itssupport fortheNEPADprogramme. This isboththroughdirectassistancetoNPCAinternalmanagementprocessesaswellasforNEPADstrategicframeworksandregionaldevelopmentprogrammes.ECAprovidestechnicalsupporttotheAPRMprocessandhasalsobeen involved in supportingNEPADKnowledgeMan-agementactivities.EveryweekthroughtheNEPADTodaynewslet-terweareabletoupdatethousandsofsubscribersonNEPADpro-grammeactivities.

WewillbuildonourexistingMemorandumofUnderstandingwiththeNPCAtoelaborateamulti-yearplanthatwillcontaintheprior-ityareasofworkbetweenthetwoinstitutionsstartingin2011andupdatedonarollingbasis.

Inconclusion,Iwishtowelcomethekeynotespeakersatthismeet-ing.TheirpresenceisindicativeofthenewstrategicdirectionsoftheNPCAandtheircontributionswillnodoubtenrichyourdeliberationshereaswellastheoutcomesandrecommendationstobesubmittedtotheNEPADHeadsofStateandGovernmentOrientationMeetingatitsnextmeeting.

ONREGIONALINTEGRATION

Part Two


Regional integration, as a factor in development, is one of theAfricanUnion’smostsignificantobjectives.Itisnobigsurprise

thatintherepositioningplanoftheECA,thepromotionofregionalintegration in support of the African Union’s vision and prioritiesemergedasoneofthetwopillarsoftheCommission’snewfocus.

RegionalintegrationisveryimportantbecauseofthenatureofAf-rica’seconomies,which,beingsmallandfragmented,standtoenjoya variety of economicbenefits thatwould come from integration,inadditiontobecomingastrongervoiceininternationaleconomicdecision-making.

In the implementation of its new focus on promoting integration,ECAdecidedtopursueresearchandpolicyanalysisof issuesrelat-ingtoregionalorganisation,strengthencapacityandprovidetechni-calassistancetoinstitutionsdrivingtheregionalintegrationagenda,andworkonarangeofcross-borderactivitiesandinitiativesinsev-eralsectorsthatarevitaltotheregionalintegrationagenda.

ThisapproachhasinformedandguidedtheworkofECAanditsde-velopmentadvocacysinceitwasestablishedhalfacenturyago,butparticularlysincetheadoptionoftherepositioningplan.

Introduction

66 Part Two

In thestatementsselected for thiscluster, theExecutiveSecretarylooksattheprogressthatisbeingmadeontheintegrationagenda,andcallsforaquickeningofthepaceatwhichmeasuresarebeingimplemented.

Inhisspeakingengagements,headvocatestheneedforaroadmapfor achieving full integration, with timelines for achieving specificgoals.Hecallsforconsensusonthearchitectureofintegration,theeliminationofthekeyhurdlestoregionalintegrationandtheidenti-ficationofreadilyimplementablemeasures.

Inseveralofhisaddresses,hefocusesonsuchissuesas:trade;infra-structure;theRegionalEconomicCommissions(RECs);science,tech-nologyandinnovation(STI);capacitybuilding;andthesub-regionaloffices(SROs).

Oneofhiskey themes is theroleof theRECs,whichheconsiderstobepivotal intheintegrationprocess. HeconsistentlyadvocatesthatthecomplexsystemofRECs,inwhichmanycountriesbelongtomorethanone,hascreatedacomplexduplicationofeffort.

In his appearances at meetings of the RECs, he celebrates theirachievementsandexploreswaysofenhancingcooperationandcol-laborationbetweenthemandECA,andassistingtheirprogrammesandobjectives.

With reference toSTI,headvocatesstrengtheningalliances for in-vestmentatalllevelsthatwouldassistAfricannationstobuildecon-omiesthatareincreasinglybasedonknow-how.This,hebelieves,shouldbeoneofthestrategiesforpovertyreductionandemploy-mentgeneration,andwouldcontributetoeconomicgrowth.

Indeed,oneof themost importantplanksof theExecutive Secre-tary’s advocacy is thedeploymentof knowledge, andhehaspaidunceasing attention to the Commission’s knowledgemanagementplatformasapowerfulnetworklinkingECAtotheAfricanUnionnet-workandtheRECs.

Aswillbefoundinthesestatements,heholdstheviewthatECA’sbestaccomplishmentisthequalityofitsideas,whicharisefromin-dependentthinking,andhaveinformeditsrecommendations,whichhavepercolatedpolicy-makinginAfrica.


Hestressesthat inordertocollectivelymeetAfrica’sdevelopmentchallenges,theroadmapfornurturingalliancesforregionalandin-terregional cooperation is the collaboration between ECA, AfricanUnionandAfricanDevelopmentBank.

68 Part Two

Additional financing in the promotion of

regional integrationAfrican Ministerial Conference on

Financing for DevelopmentJointly organised by the Government of Nigeria, the United Nations Economic Commission for Africa (ECA), and the

African Development Bank (ADB)

Abuja, Nigeria21 – 22 May 2006

Thiskeymeeting isanotherexampleof the frequentcollaborationsthattakeplaceandIwouldliketothanktheGovernmentoftheFed-

eralRepublicofNigeriafor invitingECAtopartnerwiththemandtheAfricanDevelopmentBank(AfDB).Overthepastseveralyears,NigeriahasplayedaleadingroleinfacilitatingtheemergenceofAfricanconsen-susonimportantinternationalissuessuchastheAUDeclarationonHIV/AIDS,TBandMalaria,theFertilizerinitiative,andtheTreatyoftheAfri-canEconomicCommunity.ItisthusfittingthatweshouldgatherhereinAbujatoproactivelybeginanengagementwithanissuethatislikelytodominateouragendainthenextseveralmonths–themanagementofadditionalfinancialresourcesthatmaysoonbecomeavailabletoourcountriestoenableascalingupofeffortstomeettheMillenniumDevel-opmentGoals.

Twomonths ago, in Cairo, the AfricanMinisterial Plenary on PovertyReduction Strategies and theMillennium Development Goals, jointlyorganisedbyECAandtheAUCommission,incollaborationwithAfDB,discussedissuescongruentwiththosetabledfordiscussionatthisCon-ferenceandmadeimportantrecommendations.Oneofthoserecom-mendationswasthatnationaldevelopmentstrategiesshouldbesuffi-cientlyboldifAfricancountriesaretoreachtheMDGtargetsby2015.Thismeetingisthusverytimelyandweseeitasanappropriatefollow-upbyAfricaofthe2005WorldSummit.


Asweknow,Africa’srecentgoodgrowthperformancehasnottranslat-edintoafasterrateofjobcreationpartlybecausegrowthisconcentratedin the enclave minerals sector and partly because sectors such as agri-culturearenotgrowingataratethatwewouldlikeduetoinadequatefinancialresourcestoprovidecomplimentaryinputs.

ThejointECA/ADBSymposiumfocusedoninfrastructureforregionalintegration-avery importantmatterbecauseobstacles togrowthandpovertyreductionhavearegionaldimension,notonlybecausemanyofourcountriesarelandlocked,butalsobecausemarketfrag-mentation,aswellasconflictsandinfectiousdiseases,limitcompeti-tiveness.Thisexplainswhyregionalintegrationisoneoftheobjec-tivesoftheNEPADprogramme.Withoutit,thegoalofcreatinganAfricanEconomicCommunity(AEC)willnotberealised.

Weneedadditionalfinancing–andnewinstitutionalarrangements–toprovideregionalpublicgoodsinordertopromoteregionalinte-gration.Weneedadditionalfinancingtodiversifyoureconomiesinordertohavebroad-basedgrowththatcreatesjobs.

So,itiscleartoallofusthatfinancing,inadditiontostrongpoliticalwillandcapacity,isimportantforthespeedatwhichAfricamakesprogresstowardsthetargetsoftheMDGs.ThisisyetanotherreasonwhythisConferenceisverytimely.

Fortunately, Africa has recently seen increasedwillingness on thepartofourdevelopmentpartnerstosupporthereffortswithaddi-tionalresources.InMonterrey,attheUNConferenceonFinancingforDevelopment,theindustrialisedcountriesmadeacommitmentto meet the earlier commitment of raising overseas development as-sistanceto0.7%ofgrossnational income. SinceMonterrey,addi-tionalcommitmentshavebeenmade,forexampleattheGleneaglesG-8Summit.Thedebtwrite-offoftheMultilateralDebtReliefInitia-tive(MDRI)isanexampleofthisincreasedwillingness.

Increasedaidflowswillrequireustouptheeffectivenessandeffi-ciencyofmanyofoursystemsandthewaywedomanythings.Newcapacitieswillneedtobebuiltandnationaldevelopmentstrategieswillhavetobebettercosted.Africaandthedevelopmentpartnerswillalsohavetodevelopnewskillsandinstrumentstobetterman-age their relationship. Forexample, thefirst reactionofdevelop-

70 Part Two

mentpartnerstoperceived“difficulties”ontheAfricansideshouldnotbetosuspendaidsincesucharesponseveryoftenimperilssuc-cessesalreadyachieved.

Africancountriesmust intensifydomesticresourcemobilisation. ItisimpossibleforAfricancountriestogetthepolicyandfiscalspacesthattheyareaskingforiftheycontinuetodependsoperilouslyonexternalassistance.Anintensifieddomesticresourcesmobilisationeffortcanbeasignalingdevice–asignaltodevelopmentpartnersofAfricangovernments’seriousnesstoscaleuptheirowneffortstoreachthetargetsoftheMDGs.

Iwouldliketoconcludethesebriefremarksbyaddressingsomeoftherecommendationsofthe“AfricanMinisterialPlenaryonPovertyReductionStrategiesand theMillenniumDevelopmentGoal”heldinCairo, inMarch,whichfocusedprincipallyonsecond-generationpovertyreductionstrategiesbecausetheyarepertinenttothisCon-ference. InCairo,AfricanMinistersconcludedthatfuturenationaldevelopment plans in African countries must be bold enough to achievetheMDGssoonerthan2015.ThePlenaryalsounderscoredtheimportanceofstrongstatisticsandstatisticalsystemsforeffec-tivemonitoringanddecision-making.GivenAfrica’senormousdevel-opmentneeds,thePlenaryfurtheragreedthatincreasedaidflowstoAfricaareneededandurgentlyso,andthatweneedtoimprovetheeffectivenessofaid.Thevolumeofaidneedstoincrease,aidmustbepredictable, and the gapbetween commitment anddisbursementmustbeclosed.

It is thus important for Africa’s development partners to improve theharmonisationandcoherenceoftheirpoliciesandprogrammestoensurebetteralignmentwith the identifiedprioritiesofAfricancountries.Mutualresponsibilityandmutualaccountabilitymustun-dergirdtheaidrelationship.PartnersmustfacilitatethroughgreatermarketopennesssinceECAandtheOrganisationforEconomicCo-operation and Development/Development Assistance Committee(OECD/DAC)havebeenworkingontheissueofmutualaccountabil-ityinthepastseveralyearsanditisourintentiontosharetheresultsofthis jointworkwithMemberStatesandthewider internationalcommunity in order to raise awarenessof theneed for thewide-spreadadoptionofthisprinciple.


TheAfricanPeerReviewMechanism(APRM)oftheAU,whoseob-jectiveistomonitorgovernanceinAfrica,isanimportantinstrumentformutualaccountabilityontheAfricanside.RecentAPRMreportsdocumentsubstantialprogressbypeer-reviewedcountriesinallar-easofgovernance–economic,political,corporateandsocial-andtheenormousadditionalfinancingneededtosustainprogressandtomakeprogressinotherareas.ForGhana,accordingtothePresident,additionalfinancingisintheneighbourhoodof$5billiontoenablethecountrytobridgetheidentifiedgapsinthereviewprocess.

TheCairoPlenaryalsorecommended,congruentwiththepurposeofthismeeting,thatECAshouldrevitaliseitsAfricanLearningGroup(LG)onPovertyReductionStrategies;itsremitshouldbeexpandedandtheLGitselfremodelledintoaneffectivePeerLearningactivityonPRSandMDGs.ECAiscommittedtodoingthat.

Inconclusion,itismyhopethatwewillrisefromthismeetingwithashortlistofactionablerecommendationsonhowtoensurethatthenoblecommitmentsoftheinternationalcommunitytoassistAfricaaremetandthatAfricakeepstoherpartofthebargain.

72 Part Two

ThethemeyouhavechosenforthisSummit,RationalizationandRegional Integration, is very important, timely and appropri-

ate.Theultimategoalofcontinental integrationistoallowAfricancountries tomerge their economies andpool their capacities, en-dowmentsandenergiestogetherforthedevelopmentoftheconti-nent.Ifweareabletoachievethisgoalquickly,Africacanmakegreatstridesinitsquesttoachievesustainedandrobusteconomicgrowthandpovertyalleviation.

Wehavemadenotableprogress inourattempts to integrateoverthepast50years,inparticular,sincethecreationofthefirstRegionalEconomicCommunities (RECs). The initialeditionofECA’sflagshippublication on regional integration, Assessing Regional IntegrationinAfrica(ARIAI),publishedin2004,reportsthatsomeoftheRECshavemadesignificantprogressintrade,communications,macroeco-nomicpolicy,andtransport.

However,thestudyalsonotedthatsignificantgapsremainbetweenthe achievements andexpected goals. There are areas inwhich alotneedstobedone,particularlyinthepromotionofintra-Africantrade, infrastructure, macroeconomic convergence, and economicdiversification.ItstillremainsthecasethattransportcostsinAfricaarefartoohigh.Also,wefindthatthroughoutthecontinent,manyroad,airandrailnetworksneedsubstantialimprovements.Addition-

Integrating Africa

Seventh Ordinary Session of the Assembly of the African Union

Banjul, The Gambia 1 July 2006


ally, existingnon-tariffbarriers andweak infrastructurewithin thecontinentarealsoamongthefactorsattributabletothelowvolumeoftradewithinAfrica.Allthesechallengesneedtobeaddressedsoastoacceleratetheintegrationofthecontinent.

Atthesametime,wealsoneedtobringmorecoherencetoourre-gional integrationarchitecture inorder tobuilda solid foundationfor the African Economic Community we envisage. As you know,there are presently fourteen main regional economic blocs on the continent. TheAfricanUnion recognizeseightof themas regionaleconomiccommunitiesandtheremainingasinter-governmentalor-ganisations.ThesimilarmandatesandobjectivesoftheseregionalgroupingsandthemultiplicityofmembershipbyAfricancountriesintodifferentRECsappear tobe thwarting the integrationagendaofthecontinent.Thereisthereforeastrongneedtorationalisetheregional economic grouping so as to advance and strengthen the in-tegrationagendaof thecontinent.Thisneedstobedonebecausethe presence of so many regional economic groupings spreads lim-itedresourcesthin,complicatestheoverallcontinental integrationprocess,andputsenormousstrainongovernments’abilityandre-sourcestocopewithdiverseagendasandexigencies.

ECAhasbeenworkingonregionalintegrationissuessinceitsincep-tionin1958.Itplayedabigpartinthecreationofsomeoftheregion-aleconomiccommunities.Inrecentyears,ithasalsoassistedsomeoftheRECswiththedesignofsustainablefinancingmechanismsandestablishingdevelopment funds to support theirprogrammes.WeplantodeepenourworkandsupporttoMemberStatesintheareaofregionalintegration.

ItisakeyelementofthecurrentexercisetorepositionECAtobetterrespondtoAfrica’sprioritiesagainstthebackgroundoftheeffortsofourSecretary-General,HisExcellency,Mr.KofiAnnan,toputinplaceamoreefficientandcoherentUnitedNationssystem.Letmealsotake the opportunity to thank President Konare for his support and thatoftheAfricanUnionCommissiontowardsECA’sreformagenda,andindeedforhiscommitmenttowardsfosteringacloserrelation-shipbetweenECAandtheAfricanUnionCommission,andwiththeAfricanDevelopmentBank,whosePresident,DonaldKaberuka,hasalsobeenanardentsupporterandchampionofourtripartitepart-nershipintheserviceofourcommonMemberStates.

74 Part Two

In summary, under ECA’s repositioning initiative, and in line withitsmandateandtheAfricanUnion’sagenda,ECAwillnowfocusonachievingresultsintworelatedareas:(i)promotingregionalintegra-tion;and(ii)meetingAfrica’sspecialneedsandchallenges.

Under thefirst pillar, ECAwill concentrateon fully supporting theAfricanUnion’seffortstoacceleratethepoliticalandsocio-economicintegrationofthecontinent,promoteanddefendAfricancommonpositionsandestablishthenecessaryconditionstoenablethecon-tinenttoplayitsrightfulroleintheglobaleconomy.Itwilldosobypromotingdialogueandundertakinganalyticalstudiessuchastheserieson“AssessingRegionalIntegrationinAfrica(ARIA)”.Itwillalsovigorouslypromotethebuildingofregional infrastructure. Inaddi-tion,ECAwillplaceastronger focusonthespecificneedsofRECsthrough a region-specific, multi-year partnership strategy agreedwitheachRECwithclearlyarticulated resultsandmilestones;andtheestablishmentofmoreempoweredsub-regionaloffices(SROs),withincreasedaccesstotheskillsandresourcesneededtodelivertheagreedresults.

Withregardstothesecondpillar-meeting Africa’s special needs and challenges - ECA’sworkprogrammewillfocusonachievingthemainobjectivesofNEPAD.Here,ECA’sactivitieswillinclude:socialdevel-opment,withspecialfocusontheMillenniumDevelopmentGoals;food security and sustainable development; emerging global issues and economic development; harnessing information and commu-nication technology; and improving governance and developmentmanagementtoenhancenationalcapacityandcapabilityandtosup-porttheAPRMprocess.

Yourdeliberationsat this Summitare vital to theadvancementofthecontinent’sintegrationagenda.Therecommendationsyoumakecouldhavefar-reachingimplicationsontheharmonisationandcoor-dinationoftheintegrationarchitectureasweworktowardsthecrea-tionoftheAfricanEconomicCommunity. Inthisregard,youhavebeforeyouvariousscenariosontherationalisationoftheRECs.Thefinal choice isoneof sensitivepoliticaldecision.Weknowwecancountonyourwisdom,guidanceandpoliticalcouragetomovetherationalisationagendaforwardandhelpbuildastrongAfricanUnion.


LetmeconcludebyassuringyouthatECAwillcontinuetoworktoassistMemberStatesandtheRECs, inveryclosepartnershipwiththeAfricanUnionCommissionandtheAfricanDevelopmentBank,inthepursuitofthenoblegoalsofintegrationanddevelopmentofourbelovedcontinent.

76 Part Two

WehavegatheredheretodaytoreflectontheactivitiesofECAintheareasoftrade,regionalcooperationandintegrationso

astostrengthenitscontributiontotheAfricanUnion’scontinentalintegrationanddevelopmentagenda.TheCommitteeonTradeandRegionalCooperationandIntegrationisoneofECA’ssectoralcom-mitteeswhichmeetonabiennialbasistoreviewdevelopmentsandissuespertainingtotheirrespectivedevelopmentsectors,formulatepoliciesandstrategiestoaddressAfrica’sdevelopmentchallenges,andadviseonsectoralworkprioritiestobereflectedintheworkpro-grammeofECATheoutcomeoftheCommitteemeetingswillthenfeedintothedeliberationsoftheannualmeetingsoftheCommis-sion’sprincipallegislativeorgan,theConferenceofAfricanMinistersofFinance,PlanningandEconomicDevelopment.

AtitslastmeetinginMarch2005,theCommitteerecommendedthatECAundertakeactivitieswhoseoutcomewouldpromote,strengthenand support the African Union’s development agenda in the areas of tradeandintegration.WiththeendorsementoftheAfricanUnionSummit inBanjul, in July2006,theCommissionrepositioned itselfandhasplacedregionalintegrationasoneofitstwopillarsofwork.

SincethelastmeetingoftheCommittee,ECAhasundertakenanum-berofactivitiesaimedatcontributingtotheachievementofmostof

Working together to

advance AU priorities

5th Meeting of the Committee on Trade, Regional Cooperation

and Integration

8-10 October 2007Addis Ababa, Ethiopia


therecommendationsmadeatthemeeting.Forinstance,followingtherecommendationofthemeetingthatthereisaneedtorational-isetheregionaleconomiccommunities,wefocusedthesecondre-portofourflagshippublication,AssessingRegionalIntegrationinAf-rica,ontherationalisationoftheRECs.Thereport,whichwasjointlypublishedbytheAUCommissionandECA,waspresentedtotheAs-semblyofAfricanUnionHeadsofStateinJuly2006,inBanjul,TheGambiaandhelpedtoinformtheirresolutionlimitingthenumberofrecognisedregionaleconomiccommunitiestoeight.

TheAfricanTradePolicyCentre (ATPC),housedatECA,haschan-nelledmostof its researchandadvocacywork inassistingAfricancountries to addressing the challenges of trading in the global mar-ketplace.ATPCandECA’sGenevaofficesprovidetechnicalbackstopforAfricantradenegotiatorsinGenevaandBrussels.TheCentrealsotrainsAfricanexpertsonnewtoolsandmethodsforconductingin-ternationaltradeanalysis.Throughitsadvocacywork,ECA,incollab-orationwiththeAUCommission,periodicallybringstogetherseniorofficials fromAfrican countries todiscussmajor trade issues,witha view to forminga commonAfricanvoiceonmajor internationaltradenegotiations.

Pursuanttotheoutcomeofthelastmeeting,ECAhasalsoupscaledits cooperationand collaborationwith theAfricanUnionCommis-sionandAfricanDevelopmentBank.TheleadershipofECAisincon-stantcommunicationwithitcounterpartsattheAUCommissionandtheADB.ECAhasalsoheldanumberofbilateralmeetingswiththeChiefExecutivesandseniorofficialsoftheRECsandNEPADSecretar-iatonpertinentissuesrelatedtoeconomicandsocialdevelopmentofAfrica.Thethreeinstitutions,AUC,ADBandECA,havealsojointlyorganisedanumberofhigh-levelconferencesinsomeoftheareasaddressedatthelastCommitteemeeting,includingtheConferenceofAfricanMinistersresponsibleforintegrationinKigali,RwandainJulythisyear.AnumberofkeyrecommendationsofthesemeetingshavebeenadoptedbytheSummitsoftheAfricanUnion.

Alltheseeffortshavebeencarriedoutinthecontextofourdetermi-nationtoworkcloselytogetherinordertostrengthensynergyamongourinstitutionsandouractivities,therebyhelpingtofostercoordinat-edsupportandactiontowardsAfrica’sdevelopmentandintegration.

78 Part Two

Inthesamevein,wecontinuetomarshalourcollectiveeffortstohelpAfricancountriesdefineandarticulateAfrica’scommonpositionsandinterestsonrelevantdevelopmentissuesininternationalforums.

ThisfifthsessionofthisCommitteewillbeexamining,amongotherthings,progresstowardspromotingAfrica’sregionalintegrationinthecontextoftheobjectivesandprogrammesoftheAfricanUnionandtheRECs.ThereisnodoubtthatAfricahasmadesomeprogressinitseffortstointegrateitseconomies.

Nonetheless, it is fair to say thatAfrica still faces tremendous chal-lengesinadvancingitsintegrationagendaatalllevels:national,sub-regional and continental. Allowme therefore, to highlight a fewofthesechallenges.

Inthemacro-economicenvironment,Iwishtohighlightonekeyongo-ingchallengemanifestedinthepersistentupwardtrendsinoilprices.As amajority of our countries are non-oil producing, escalating oilprices translate intohigh importbills foroil.Theyalsohaveseriousrepercussions on countries’ ability to balance the budget and main-tainfiscaldisciplineinthefaceofheighteneddemandstoacceleratetheachievementoftheMDGs,withpovertyreductionatthecentreof thesedemands.Howtoreducevulnerabilities to theoil increasecontinuestoremainahugechallengeforthesecountries.Addressingthischallengewillrequireconcertedtrans-boundarysolutionsinthesearchforanddevelopmentofalternativesourcesofenergy.Further-more,researchatECAshowsthatshockstothemacroeconomicenvi-ronmentarebetterhandledifMemberStatesembarkonconvergentmacroeconomicframeworksasprescribedbytheirrespectiveregionaleconomiccommunities.

Intheareaoftrade,itisworthrecognisingtheeffortsofmanyofourRECstoliberalisetradewithintheirrespectivesub-regionalspacesandcreatefreetradeareasandcustomsunions.However,thefactstillre-mains thatdespite these laudableeffortsby the regionaleconomiccommunities,tradewithinAfricaisstillverylow,consistentlyhoveringbetween10-12percentoverthelastdecade.Africanstradelesswiththemselvesthanwiththerestoftheworld.Theissueofintra-Africantrade is thereforean important itemontheagendaofthismeetingandIurgetheCommitteetoaddressit.Youwillagreewithmethatin-frastructureisoneofthecorechallengestoovercome,andthismeet-


ingwillthereforebedeliberatingondevelopmentsinthisarea,includ-ingtransport.

AfricaisengagedintwokeyinternationaltradenegotiationsattheWorldTradeOrganizationandalsotheEconomicPartnershipAgree-ments (EPA)with the EuropeanUnion.As you all know, theDohaRoundoftradenegotiationsismovingataveryslowpace.Itisourdesirethatthetalksconclude,wheneveritdoes,withastrongdevel-opmentdimensionthatwillbebeneficialtoAfrica.AcloselyrelatedissueisthatofAidforTradeandtheAfricanRegionalReviewmeet-ingonthismatterwhichrecently tookplace inDaresSalaam. Atthatmeeting,AfricanMinistersreiteratedtheircallfortheupscalingofthefinancialsupportforthedevelopmentofinfrastructureonthecontinentsothatAfricancountriescanbecomecompetitiveintheglobaltradeandalsotrademoreamongstthemselves.

GiventhepotentialchallengeslikelytobefacedbyAfricancountriesasaresultofbilateralandmultilateraltradereforms,ECAwillcon-tinuetoputthestrongcapacitiesithasbuiltontradetotheserviceof African countries in order to achieve the desired outcomes in the international trade negotiations.Wewill also continue to providetechnicalsupporttoourMemberStatesintheEPAnegotiations.

Yourdeliberationsduringthis5thSessionareimportantforadvanc-ingthetradeandintegrationagendaofourcontinent,andwillalsohelpsharpenECA’sworkintheseareastoacceleratetheoverallde-velopmentoftheAfricancontinent.Itisourhopethatthismeetingwill:

• Give clear guidance on ourwork programme in the areas oftrade,regionalintegrationandinfrastructure;

• Identify trans-boundary solutions toaddress theenergychal-lenges facing many African countries in the search for and de-velopmentofalternativesourcesofenergy;

• Addresshowtostrengthenthecapacityoftheregionaleconom-iccommunitiestoimplementtheirintegrationprogrammesatthenationallevel;and

80 Part Two

• Advise on how the programmesof theRECs are aligned andconvergetoAfricanUnioncontinentalintegrationagenda.

LetmeendbyreiteratingECA’scommitmenttoadvancingthetradeandregionalintegrationagendaoftheAfricanUnion.Wethereforelookforwardtotheoutcomeofyourdeliberationsatthismeetingsothatwecanchartthewayforwardonthisimportantsubjectmatter.


WearegatheredheretodayinfurtheranceoftheSADCvisionofaregionalcommunitythatwillensureeconomicwell-being,im-

provedstandardsofliving,freedom,socialjustice,peaceandsecurityforthepeoplesofsouthernAfrica.ThisisaloftyvisionthatECAsolidlyidentifieswith.

Aspartofyouroverallstrategyforrealisingthisgreatvision,theRegion-al Indicative StrategicDevelopment Planwas adopted,which,whencombinedwiththeStrategicIndicativePlanfortheOrganonPolitics,providesasolidframeworkfortheimplementationofthedevelopmentagendaofthecommunity.YourgoalisconsistentwiththeAfricanUn-ion’svisionofcontinentalintegration,andIsaluteyoufortheforesight.

IamgladthatthisSummitistakingplaceinLesotho,whereECAhasbeenofferingvarioustechnicalservices,especiallywithregardstothedevelopmentoftheKingdom’sScienceandTechnologypolicy.WehaverenderedsimilarservicestomanyothercountriesintheSADCregion,includingBotswana,SouthAfrica,Namibia,Mozambique,AngolaandSwazilandandwillextendtheservicestoothercountriesuponrequest.

WearemeetinghereatatimewhentheDohaRoundoftalkshavebro-kendown;shatteringinitswakethehopesanddreamsofatransformedmultilateraltradingarchitectureforAfrica.Whenthenegotiationsbe-ganfiveyearsagowith recordparticipationofAfricancountries,we

The Regional Economic

Communities as ECA’s allies

2006 SADC Summit of Heads of State and Government

Maseru, Lesotho17–18 August 2006

82 Part Two

hadhopedthatDohawoulderasethedisappointmentsassociatedwiththeUruguayRoundsinaneweraoffairness.InDoha,AfricancountrieshadexpectedaleveledplayingfieldandrealsolutionstotheplightofAfricanfarmers,whohavebeensufferingfromtheeffectsofsubsidiesgiventotheircounterpartsintherichnations.WewereprayingforafairmultilateralsystemwhereAfricancountriescouldtradetheirwaysoutofpoverty.

Perhapswecanusethisstatusofstalemateandminimalprogresstoreflectontheneedtoincreaseintra-Africantrade.IfothercountriesarereluctanttoopenuptheirmarketstoAfrica,letusdoitforour-selves.Letneighbouringcountriesbuymorefromandsellmoretoeachother.IfourRECsremovetheirrespectiveinternaltradebarri-ers,rationalisetheiroperationsanddismantlebarriersthatpreventoneRECfromtradingwithanother,thentheywouldhavemadeagiantleapinthedirectionofanAfricanEconomicCommunity.Andinitiatives such as Dohawould no longer determine our develop-mentfuture.

ThisiswhythenewECAhasmaderegionalintegrationoneofitstwokeypillars,andtheRECsitsveryfoundation.Someofourregionalof-ficesareco-locatedwiththeoperationalheadquartersoftheRECs.Wherethisisnotthecase,wewillpostaSeniorAdvisertoserveasECAliaison,toworkmorecloselywithyouonaday-to-daybasisandrespondquicklytoyourimmediateneedsandchallenges.

ThenewECAwill,morevigorously,focusonthespecificneedsoftheRECsthrougharegion-specific,multi-yearpartnershipstrategywithclearmilestones.WewilltangiblyincreaseourtechnicalsupporttotheRECsandMemberStatesbyincreasingthetechnicalcapacitiesofourregionalofficesandsubstantiallyincreasingtheiroperationalbudgets.Wewillmakespecialeffortstoensurethatoursub-regionalwork programme is directly relevant to thepriorities of theRECs.IbelievethatthisfocuswilldeepenourexistingcollaborationwithSADC,especiallyinthedevelopmentofpolicyframeworksandpro-grammesfortransport,ICT,mining,energy,gender,labour,agricul-ture,landtenuresystems,HIV/AIDSandcorporategovernance.

Iwouldliketorecall,withsatisfaction,ourcollaborationwithSADCin transit transport facilitation, road safety, implementationof theYamoussoukroDecisiononairtransportliberalisation,andairtrans-


portcommunicationsandnavigationsystems.WealsoinitiatedthedevelopmentofICTpoliciesinSADCMemberStatesandassistedinimplementingtheSADCprotocolsonminingandenergybydevelop-ingframeworksforharmonisingpoliciesinthesesectors.

InMarch2003,ECAandSADCagreedtojointlyaddressgenderissuesinthesub-region inordertoavoidduplicationofeffortsanddissi-pationofresources.Sincethen,wehavecontributedsubstantivelytovariousSADCinitiativesoncapacitybuildingfornationalgendermachineriesandparliamentarians in theSADC region.Wealso fa-cilitated the revision of the SADC HIV/AIDS framework to apply agender-responseapproach,whichwasadoptedbytheSADCSummitinAugust2003.

Butourcollaborationandinterestsareongoing.Followingourmulti-yearstudyoftheimpactsofHIV/AIDSongovernanceinAfrica,wehavebeenworking,inpartnershipwiththeWorldHealthOrganiza-tionandtheWorldBank,onwhat it takestoaccelerateHIVtreat-mentinAfrica,usingthreepilotcountries–Mozambique,GhanaandBurkinaFaso.Wearealsogivingseriousthoughttothequestionoflong-termhealthfinancingwithacontinuationstrategysothatourvastpopulationsinfectedwithHIVcanhavethebenefitoftreatmentforaslongastheyneedit.

Becauseoftheimplicationoflandforfoodsecurity,housing,urbandevelopmentandpeace,ECAiscollaboratingwiththeAfricanUnionCommission,AfricanDevelopmentBank,andtheRECsonanambi-tiousprojecttodevelopaPan-AfricanFrameworkforLandPolicy.Inthenearfuture,wewillbeseekingbroadstakeholderparticipationthroughsub-regionalworkshopsandconsultations.Inthisregard,Iwouldliketoacknowledgethesupportofourdevelopmentpartnersandtheparticular lessonswehavedrawnfromtheSADCRegionalLandReformTechnicalSupportFacility.

We are also building a facility, theAfricanCentre for Statistics, toupscaleourstatisticalcapacitytobetterassistMemberStateswithevidence-basedplanning,sounddecisionmaking,andidentificationofbestcoursesofactioninaddressingproblems.Asyouknow,theseelements are essential for effectivedelivery of basic services, andareindispensableforaccountabilityandtransparency.Theyarealsoessential forprovidinga soundbasis for thedesign,management,

84 Part Two

monitoring, and evaluation of national policy frameworks such asthePovertyReductionStrategiesandprogresstowardstheMillen-niumDevelopmentGoals.They,therefore,arepartoftheenablingenvironmentfordevelopment.

AtthemarginsoftheBanjulAUSummit,IheldbilateraldiscussionswiththeChiefExecutivesofNEPADandsomeoftheRECsonhowtostrengthencollaborationandpartnershipbetweenECAandtheirrespectiveinstitutions.Subsequenttothismeeting,aNEPADdelega-tion,ledbytheDeputyChiefExecutiveOfficer,visitedAddisAbabatodiscussandpreparetheframeworkforcollaborationbetweenNE-PADandECA,drawingoneachinstitution’scomparativeadvantageintheimplementationoftheNEPADagenda.AformalMemorandumofUnderstanding(MoU)betweenthetwoinstitutionsisbeingdrawnupforthesignaturesoftheleadershipofthetwoinstitutions.Thisisonlyabeginning.

InthecaseofSADC,oursub-regionalofficeinLusakaispreparingaproposalonaCooperationAgreement,basedon theoutcomesofyour ConsultativeMeeting inWindhoek, and the Integrated Com-mitteeofMinistersMeetinginJohannesburgin2006.TheAgree-mentwill specify areas for cooperation, incorporating regional in-tegration,capacitybuildingandhumanresourcesdevelopment,aswellasresourcemobilisationforregionalmulti-sectoralprojectsandprogrammes.

Themodalitiesfordevelopingthecollaborationwillincludejointmis-sions,dialogue,research,traininginitiativesandjointmobilisationofresources for programmes in SADCMember States. I have agreedwiththeExecutiveSecretaryofSADCtosendadelegationofseniorECAofficialsimmediatelyafterthisSummit,totheSADCSecretariattodiscusstheoperationalizationandfinalizationofthisagreement,whichcouldformthebasisforaMemorandumofUnderstandingbe-tweenourtwoinstitutions.

Inthiscontext,Iwouldliketoappealforanenhancedparticipationand leadership of SADC in the deliberations of ECA’s Intergovern-mental Committeeof Experts,which, as you know, is drawn fromyourvariousgovernmentinstitutions.Weshouldexploitthisforumfullyasan instrument forpolicydialogue indefining theprioritiesandneedsofthesubregion.


YourdeliberationsatthisSummitarevitaltotheadvancementofthedevelopmentagenda intheSADCregionandmaybeabeaconfortherestofAfrica.IwanttoassureyouthatECAwillcontinuetoworkdiligently,inclosecollaborationwiththeAfricanUnion,theAfricanDevelopmentBank andother partners, to translate your visionofintegratingAfricaintoastrongcompetitivecontinent,intoreality.

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Wehavegathered inOuagadougou today to takeacritical re-flectionon theperformanceof theEconomicCommunityof

WestAfricanStates(ECOWAS)soastochartthefuturepathofthisgreatregionaleconomiccommunity. Inordertohaveameaningfuloutcome,theECOWASCommissionhasinvitednotonlytheMinistersofRegionalIntegrationbutalsotheMinistersofFinancewhodecideonhowthemoniesofMemberStatesshouldbedisbursed.Thedeci-sionofbringing the twogroupsofMinisters together forconsulta-tions isverycommendablebecause itprovidesanavenueforbothgroups to consult and have a common understanding on the use of regionalintegrationasastrategyforthesustainabledevelopmentofthesub-region.

Inordertohaveameaningfuloutcome,theCommissionhasinvitedus to focus thediscussionsat this forumonthreemain issues: thevisionofECOWAS,ECOWASmedium-termstrategicplanforpovertyreduction,andpolicyharmonisation.

ECOWASisoneofthe[most?]successfulRECsonthecontinent.Un-liketheotherRECsthatcutacrosssub-regionsandarethereforedif-ficulttomanage,ECOWAScoversonlytheWestAfricansub-region.ThisputsitinanenviableanduniquepositiontodevelopandpursueanintegrationagendathatwoulddrivetheAfricanUnion’scontinen-tal integrationagenda.Despitethesuccessesyouhavechalkedand

Strengthening collaboration

with ECOWAS Retreat of ECOWAS Ministers of

Finance and Regional Integration

Ouagadougou, Burkina Faso1- 4 June 2007


being seen as themost advancedRECon the continent, I stronglybelieveyoucanachievemore.Thisretreat is thereforeappropriateandtimelyasitoffersanopportunitytoreflectonthechallengeswefaceandintheendchartaroadmap,whichwouldleadustothefullintegrationof the sub-regionaswell as strengthenour continentalintegrationagenda.

Againstthisbackground,wearebeingcalledupontoreflectonthevisionofthecommunity.Itismydesirethatanewvisionforthissub-region should ensure that the fifteen economies in the sub-regionbecomeonestrong, robust,diversifiedand resilienteconomy, sup-portedbyafirst-classtrans-boundaryinfrastructure;highlyeducated,flexibleandmobileworkforce;financialcapitalthatishighlymobile;soundhealthfacilitiesandpeaceandsecurity.Allofthismustbeun-derpinnedbythespiritofownershipandself-beliefofnationaldevel-opmentpolicies,whichgivessufficientpolicyspacetoMemberStatestodesignstrategiesthataddresstheirspecificneedswithaviewofendingaiddependencyovertime.

TheimperativeforregionalintegrationinWestAfricaisparticularlystrongduetothesize,structureandlowlevelofdevelopmentoftheeconomiesofthesub-region.WiththeexceptionofNigeria,mostaresmallandnon-diversified,withvery littletradingrelationsbetweenthecountries.Thefragmentationofthemarketsisthereforeimped-ingindustrialdevelopmentinthesub-region.Thatiswhythemarketsin the sub-region need to be integrated so that ECOWASMemberStates can overcome constraints arising from their small domesticmarketsandreapthebenefitsofeconomiesofscale,strongercom-petitionandincreaseddomesticandforeigninvestment.

RegionalintegrationisalsocrucialforWestAfricabecausethecoun-triesofthesub-regionfacenumerouscommonchallengesthatcanbestbedealtwithcollectively.Theseproblemsincludethemargin-alisationof theregion in theglobaleconomy,weak infrastructure,weak performance in macroeconomic policies as well as regionalcommons such as the environment and natural resources utilisa-tion.Inaddition,fourteenofthefifteencountriesofthesub-regionareclassifiedamongthelow-incomecountriesintheworld.WaterresourcesfromimportantriverssuchastheNiger,theSenegalandthe Gambia are common resources to many countries and there-foreneedtobemanagedinacollectiveandconcertedmannersoas

88 Part Two

toassuretheirsustainability.Additionally, threecountries,BurkinaFaso,MaliandNigerare landlockedandthereforefacehightrans-portcostsanddifficultiesthatareuniquetothefifteenlandlockedcountriesinAfrica,whichcanberesolvedthroughimprovedregionalcooperationorintegration.

Againstthisbackground,thereistheneedforustohaveacontinuousdialogueanddebate,attheregional,sub-regionalandnationallevels,onhowweplaceregionalintegrationasthecentrepieceofoureco-nomicandsocialdevelopment.Aforumsuchasthisretreat,whichal-lowsforeffectiveexchangeofideasonregionalintegrationbetweenkeypolicymakers,shouldbereplicatedatalllevelsofoursocietyandshouldbebroadenedtoincludeallthekeystakeholders,particularlytheprivatesectorandcivilsocietyorganizations.

CommendableprogresshasbeenmadebyECOWASovertheyears.Forinstance,since1990,ithasestablishedavibrantfreetradezonewhich issupportedbyprogrammesoftradefacilitation, includingauniformandsimplifiedcustomsdeclarationformandacommonsta-tisticalnomenclature,whichisinlinewiththeWorldCustomsOrgani-zation(WCO)harmonisedsystem.Ithasalsointroducedprogrammesthatseektostrengthenanddeveloptheinfrastructureinthesub-re-gion,particularlytheareasoftelecommunication,roadsandenergy.

Despitetheprogressmade,thereareanumberofchallenges,includ-ingthelowlevelofintra-ECOWAStrade,poverty,monetaryintegra-tionandthemovementofpeople.Intra-regionaltradeinWestAfricaisstill low,representingonaveragearound10percentof totalex-ports.Therearemanyfactorsassignedforthelowintra-communitytrade,includingtheeconomicstructureoftheMemberStates,whichconstrainsthesupplyofdiversifiedproducts;poorinstitutionalpoli-cies;weakinfrastructure;weakfinancialandcapitalmarketsandfail-uretoimplementtradeprotocols.

AlthoughthetradeperformanceofECOWASmatchesthatofotherAfrican RECs, it is extremely low compared to other trading blocsoutside our continent. For example, trade within the AssociationofSouthEastAsianNations(ASEAN)accountsforabout60percentoftheirtotalexport.ThesameistrueforthecountriesoftheLatinAmericanFreeTradeAgreement(ALENA)area,whoseintra-regionaltradeaccountedfor56percentoftotalexports.Itisnowonderthat


theeconomiesofASEANandALENAaredoingremarkablywell.

Inordertopromoteandaddressthechallenges impedingtheflowofgoodsandserviceswithinthesub-region,weneedtotakeappro-priatepolicyprescriptions.MemberStateswouldhavetocommittotheeffectivestructuraldiversificationofproductionandexports.Theproductionofnon-traditionalexportcommoditieswithcomparativeadvantageonregionalandglobalmarketsmustbeencouraged.Gov-ernmentmightconsidershifting their industrialdevelopmentpoli-cies and strategies towardsdiversifiedproduction lines,whicharedrivenbyapproachesbasedontheprocessingoflocalrawmaterialandonlocalinnovation.

Trade between ECOWAS Member States would not be improvedwiththecurrentqualityofour infrastructure.Transport infrastruc-ture and services should be improved through maintaining and re-habilitatingexistingroads,expandingtheroadnetworkto isolatedareas,improvingrailwaysnetworks,replacingobsoleteandinappro-priateequipmentatports,developingmoredryportstoservebothlandlockedcountriesandinteriorareasofcoastalcountries,andin-creasingairtransportconnectivityinthesub-region.

To increase the freemovementof the citizenryof the sub-region,ECOWAS introduced a common passport. In addition, citizens ofMember States do not have to have an entry permit or visa to move acrosstheborderswithinthecommunity.However,althoughECO-WAShasaprotocolontherightofresidence,MemberStatesarere-luctanttofullyimplementit.Itisabouttimethatallstate-signatoriestotheprotocolfullyoperationaliseit.Thiswouldalsohelppromotetradeandinvestmentwithinthesub-region.

Letmenowturntotheissueofpovertyreductionstrategies.IhighlycommendECOWAS for itsmediumtermstrategicplan forpovertyreduction.Tillnowpovertyreductionstrategieshavebeencountryspecific.ECOWASisthefirsttotakeaninnovativeapproachtotackletheissuefromatrans-boundaryperspective.

Compared toother regionsof thedevelopingworld,mostAfricancountries,includingthoseintheECOWASregion,havemadelimitedprogressinreducingpovertyandachievingtheMDGs.AlthoughAf-rica’sgrowthratehasimprovedinthelastfewyears,ithasbeenvol-

90 Part Two

atileandinsufficienttoachievetheMDGs.Moreover,thebenefitsofthegrowthachievedhavenot,forthemostpart,beensharedbroad-lyacross society largelybecausegrowthhasbeenconcentrated intheextractivesectorsandthecapitalintensivesectors.

Stimulating faster,qualityandsustainableeconomicgrowth in thesub-regionisessentialforpovertyreduction.Todothis,policymak-ers must vigorously pursue coherent and consistent policies that ensure sustained prudent public expenditure policies, particularlythe scaling up of infrastructure development; reasonable macroeco-nomicstability;stronger internationaleffortsaimedatcopingwithexternalshocks;productivepublic-privatepartnershipandaboveallpeaceandsecurity.

Financingtheimplementationofpovertyreductionstrategieswillre-quirebothdomesticandexternalresources.MemberStateswouldhavetoaggressivelymobilisedomesticresourcestofinancepro-poorgrowthpolicies.Partofthedomesticmobilisationcouldincludetheefficientcollectionoftaxesandtheuseofcapitalmarketsto issuefinancinginstrumentssuchasbondsandtreasurybills.

Domesticresourcesalonewouldnotbesufficientforthefinancingof PRS activities. That iswhy theUNMillenniumProject (UNMP),theCommissionforAfrica(CfA),theG8andtheUNGeneralAssem-blyhavecalledfora“BigPush”,inotherwordsthedoublingofaidplus an acceleration in domestic investment, to spur growth andachievetheMDGs.Implementingthe“BigPush”strategywill,how-ever,requirethatadequateabsorptivecapacityandfiscalspacebecreatedwithinthemacro-economicframeworktoaccommodatetheincreasedrevenuesandexpendituresassociatedwithadditionalof-ficialdevelopmentassistance(ODA)inflows.TheAccrameetingon“FinancingforDevelopment”hadafocusonenergy.Theoutcomeofthemeetingprovidesnewinsightsonhowtofinancedevelopmentonthecontinent,includingthissub-region.

Scientificevidenceclearlyshowsthatasaresultofgreenhouseemis-sions,theglobalclimateischanging.Poordevelopingcountries,in-cluding those in theWestAfrican sub-region, areatmost riskbe-cause they are more dependent on agriculture; more vulnerable to coastalandwaterresourcechanges;andhavelessfinancial,techni-cal and institutional capacity foradaptation. Furthermore,halfof


thecountriesofthesub-regionareintheSahelZoneandarethreat-enedbydesertification,whichcontinuestogaingroundandispush-ingitswaysouthward.ItisthereforeimportantforECOWAStocomeupwithacomprehensiveActionPlanonhowtomitigateandadapttoclimatechange.

Letmenowmakeafewremarksonwhythereistheneedforharmo-nisation and coordinationof policies of regional integrationblocs inthesub-region.TheassessmentofECA is that thecurrentsystemofintegrationinAfricaistoocomplex.AlmostallofourcountriesbelongtomorethanoneoftheseRECs.TheexistenceoftheseRECsandthefailuretoharmonisetheirinitiativeshasresultedinunnecessarydupli-cationofeffort.ThereisthereforeanurgentneedtoaligntheseRECstoensurecoherence.

InWestAfrica,thereisthepresenceofECOWASandl’Unionéconom-iqueetmonétaireouestafricaine(UEMOA).Bothinstitutionsrecognisethateachhastocomplimenttheeffortsoftheotherandareengagedinremovingduplicationsandoverlapofprogrammesandactivities.Thatiswhyaframeworkofconsultationsbetweenthetwointegrationbod-ieshasbeencreatedasameanstostrengthentheirrelationship.

Despite this commendable frameworkof cooperation, ECOWASandUEMOAneedtodomore.Thebodiesshouldharmonisetheirprotocolsandaligntheirinstitutionalsettingssoastoensureefficiencyandtheeffectiveuseofresources.

BeforeIconcludeletmebrieflytouchonwhatwearedoingatECAtostrengthenourcollaborationwithECOWAS.

AtthemarginsoftheShanghaimeetingoftheAfricanDevelopmentBank, I held bilateral discussionswith thePresident of the ECOWASCommission,Dr.IbnChambas,onhowtostrengthencollaborationbe-tweenECAandtheECOWASCommission.Iinformedhimthatoursub-regionalofficeinNiameyhasbeenstrengthenedandwouldverysoonhaveamulti-yearagreementwiththeCommission.TheAgreementwillspecifyareasforcooperation,incorporatingregionalintegration,trade,infrastructure,capacitybuildingandhumanresourcesdevelopment,aswellasresourcemobilisationforregionalmulti-sectoralprojectsandprogrammes.

92 Part Two

LetmeendbyassuringyouthatECAwillcontinuetoworktoassistECO-WASanditsMemberStatestodevelopsounddevelopmentpolicies.Inaddition,ECAwillcontinuetostrengthenitspartnershiparrangementswiththeAfricanUnionCommissionandAfricanDevelopmentBanksoastoadvancethedevelopmentalagendaofourbelovedcontinent.


The Economic Partnership Agreements (EPAs) continue to drawvariedreactions,notonlyintheconstituenciesofthenegotiat-

ingparties—theAfrican,CaribbeanandPacificandEuropeanUnionStates—but across the world, moreover, the private sector, fromsmall rural farmers struggling to improve their livelihoods through agricultureandtheday-timeworkerinasmallcottagemanufactur-ingindustryinasmallAfricantown,totheworkersandownersoflarge plantations and formalmanufacturing firms in African citiesthatareconcernedby theEPAs.Someof themareworriedaboutEPAs,despitetheopportunitiestheseagreementsmighthave.

ThecauseoftheworryisthattheyarestilluncertainthattheEPAswill deliveron their developmentpromise. This ismadeworsebythe discordant voices onwhat EPAswill do toAfrican economies.Someofthe issuescausingconcern includethefearthatEPAswillundermineregionalintegrationinAfrica.Thesefearswere,toalargeextent,confirmedbytherushtoinitialinterimEPAslastyear.TherearealsoconcernsthatthefocusofEPAsisontrade,tothedetrimentofdevelopmentobjectives.Again,theauditoftheinterimEPAsdidsuggestthatthedevelopmentobjectivecouldbeconstrainedbyin-sufficientattentiontospecialanddifferentialtreatmentandlackofbindingcommitmentsonhowdevelopment-orientedprovisionswillbefinanced.

Reaping the benefits of the

Economic Partnership

Agreements in Africa

Addis Ababa, Ethiopia8-10 October 2008

94 Part Two

AlsoofconsequenceisthefactthatEPAsmaycontainWTO-pluspro-visions(suchasgovernmentprocurement;competition;investmentrules.), which could in theory contribute to positive developmentoutcomes,butmostAfricancountrieslacksufficientinstitutionalandregulatorycapacityintheseareas.EquallycriticalisthefeelingthatEPAswillhavesignificantadjustmentcostsandimpactnegativelyonalreadylowintra-Africantrade.

OverthelastfouryearsECAhaspresentedvariousstudiesonEPAsatcontinentalmeetingsinMombasa(2005);Cairo(2006);andNai-robi(2007);inadditiontosimilarworkatcountryandsub-regionallevel.WehavealsomaderecommendationstoyouthroughtheAf-ricanUnionMinistersofTradeconferencesonhowtheEPAscouldbeusedasdevelopmenttoolsandalsohowtheagreementscouldtacklesomeofthesefears(Cairo(2005);Nairobi(2006);AddisAbaba(2007and2008)).

Letme therefore spend sometimeaddressing someof the issuesraisedintheEPAsdebatebeforeconcludingwithsomesuggestionsonhowAfricacouldtaketheprocessforward.Fromtheoutset,itisimportant to recognise that there isaverystrong relationshipbe-tween Africa and Europe, which is why an Africa-EU strategy hasbeendiscussedandagreedatthehighestlevel.Tradeanddevelop-ment are important pillars in this strategy and the EPAs should be seeninthislight—apartnershipwithinthecontextoflong-termco-operationstrategicframework.

Thereisalsoanotherimportantgiven,andthatis,despitethecur-rentturmoilintheworldeconomyoccasionedbyshocksemanatingfromwhat ischaracterisedbythe3F’s—food, fuelandfinancecri-ses—bilateral,regionalandmultilateraltradenegotiationswillcon-tinue.Theinternationalcommunityisinagreementthattradehasanimportantroletoplay,includinginresolvingsomeofthechallengesarisingfromthecurrentcrises.EPAsareoneofseveraltradingagree-mentsthatwillbenegotiated,andthekeyissueishowAfrica,withits regional integrationagenda,andweak integration in theglobaleconomyandtradingsystem,willwanttousethesevariousroutestoachieveitsoveralldevelopmentobjectives.

Ontheissueofregionalintegration,thereisnodoubtthatboththeconfigurationof thenegotiatinggroupsand thesituationresulting


fromtheinterimEPAswasnotencouraging.Furthermore,someofthe commitments that have been made in the interim agreements intheareaofmarketaccessfortheEU,(forexampleintarifflinestobeliberalisedandalsolistsofsensitiveproducts)arenotalignedtotheagendaofsomeregionaleconomiccommunities.Itisthereforeimportantthatasyoumeethere,youdiscussexhaustivelyhowtheseshortcomingscouldberedressedinthefinalEPAagreements.

With regard to development, some feel that having a predictableregulatoryenvironment,withclearrulesintheareaofcompetition,investments, and government procurement, among other issues,couldhelpintheexpansionofregionalmarkets,whichwouldcon-tributetowardspositivedevelopmentoutcomes.Ontheotherhand,thereistheviewthathavingfullyfinancedpoliciesandinvestmentprogrammes,similartoAid-for-Trade,insupportofEPAimplemen-tation is theonlyway thatAfricancountries canbenefit from thisprocess.Bothargumentshavemerit.Thechallenge ismoreonse-quencing,whichiswhyasyouconsidersafeguardsatthismeeting,Iwouldurgeyoutobearinmindtheimportanceofhavingtherightsequencing of the commitments that African countrieswillmake.Thiswould also help determine investment needs over the entiretransitionperiodsoftheEPAsimplementation.

Regardingtheeconomicandsocialadjustmentcosts,asinallnego-tiations,thereareboundtobewinnersandlosers.Researchshowsthat trade reforms can have unexpected impacts on livelihoods at the household level. One cannot therefore deny that some liveli-hoodsmightbenegativelyaffectedwhensomeoftheprovisionsintheEPAsareimplemented.Ourcommonresponsibilityhereisthere-foretocomeupwithproposalsforEPAnegotiationsthatwillprotectorprovidealternativeadjustmentpathsforthosethatarelikelytobeaffectedadverselybythereformsoccasionedbythefinalagree-ment.Thiscouldbedonebyhavingagradualprocessofimplemen-tationofthereformmeasures,andalsointherightorder.

Therearemanyotherimportantissuesthatwillarisefromthetech-nicalpresentationstobemadeatthismeeting.Forinstance,thereistheimportantquestionoffinancingadjustmentcosts.TheEPAsmusttakecareofthisquestioninanunambiguousway.YoumaythereforehavetolookathowtheAid-for-Tradeimplementationcouldplayapart,especiallyonthesupplyside,suchthattheEUanditsMember

96 Part Two

States provide support over and above the European Development FundasAfricancountrieshavebeenrequesting.

Youwillrecall thatonApril3,2008,theAfricanMinistersofTradeandMinistersofFinancecalledupontheAfricanUnionCommission,incollaborationwithECA,tocomeupwithatemplatethatAfricancountriescanuseinconcludingcomprehensiveEPAagreements.Inthismeeting,youwillbepresentedwithresultsandrecommenda-tionsbasedonalegalauditofinterimEPAs.Onthisbasis,apaperhasbeenputtogethershowingclausesandprovisionsinthevariousinterimEPAsthatcloselyapproximatetheAfricancommonposition.OurexpectationisthatMemberStatesandRECswill lookattheserecommendationsandmakesuggestionsfortheirimprovement.

YouhaveaveryimportanttaskaheadofyouandIwanttoreassureyouofECA’scontinuedcommitmenttosupportyouinthistoensurethatattheendoftheday,thevisionofaprosperousAfricaisreal-ised.


TheAfricanCapacityBuildingFoundationconvenedthisveryim-portantmeetingonaddressingthecapacityneedsoftheregional

economiccommunities(RECs),whichweredesignated,bytheAbujaTreaty,astheleadagentsforrealisingthedreamofanAfricanEco-nomicCommunity.Inaddition,theHeadsofStateoftheNEPADIm-plementationCommitteehavealsoassignedthemprioritytaskstobecarriedouttoadvancetheNEPADagenda.Despitebeingassignedsuchimportantduties,theRECsarestillnotbeingprovidedwithre-sourcesthatcommensuratewiththetaskstheyhavebeenassigned.This partly explainswhyprogress towards theultimate goal of anAfricanEconomicCommunityhasbeenmixed.

TheoverlappingmandatesandobjectivesoftheRECs,theduplica-tionofintegrationpoliciesandthemultiplicityofmembershipbyAf-ricancountriesintothedifferentRECs,appeartobeslowingdowntheintegrationagenda.Atthesametime,despitetheeffortsoftheRECs and member countries, intra-African trade remains low be-causeoffactorsthatincludeexistingnon-tariffbarriers.Withregardstothemovementofpersonsfromonecountrytoanother,mostRECshaveabolishedtouristvisas,however,mostRECsareyetto imple-menttherightsofresidencyandestablishmentfornon-citizensofamembercountry.

On the capacity needs of the Regional

Economic Communities

Addis Ababa, Ethiopia25 February 2006

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Thepresenceofmanyregionaleconomiccommunitiesalsospreadslimitedresources thin,complicates theoverall continental integra-tionprocess,andputsanenormousstrainongovernments’abilitytocopewithdiverseagendasandexigencies.

Findingasolutiontothisproblemisclearlynotaneasyone.

Topof the list of challenges facing theRECsare the capacity con-straintswithintheir individualsecretariats,whichareseriously im-pedingtheimplementationoftheirworkprogrammes.

AsurveyundertakenbyECAforthesecondeditionofAssessingRegion-alIntegrationinAfrica(ARIAII)revealsthatmostoftheRECsareunder-staffedandalsosufferfromahighrateofstaffturnover.TheECAsurveyreportsthattheRECsexperienceaturnoverof0–3years,impactingheavilyonthehumanresourcecapacityneeds.Theyalsolacktechnicalexpertise.Inparticular,theECAsurveyindicatesthatmorethan55%oftheRECsreportedseriousgapsintheareasofITmanagement,lawandaccounts.Sectoralprogrammessuchasagriculture,economicsandpo-liticalscience,whichareprominentfeaturesinamajorityoftheRECs,arealsoseriouslyunder-staffed.Theseshortagesarehavingaseriousimpactontheimplementationoftheirworkprogrammes.

These staffingconstraints couldalsobe linked to the resourcescon-straints.Thereisahighlikelihoodthatiftheirbudgetsweresufficient,mostof theRECswouldbe inapositiontodealwiththeir technicalskillsshortages.Clearly,thefinancialcrunchfacedbytheRECscanbeexplainedbythefailureofMemberStatestofullymeetthefinancialneedsof the secretariats.Given themultiplemembershipsofmanycountriesinoverlappingRECs,theabilityoftheseStatestomeettheircontributionobligationsisalsolimited.

Moreover, theeffectivenessandefficiencyof the secretariatsof theregional economic communities is hampered by the duplication ofprogrammes at the RECs level. The ECA survey observed that RECsare duplicating their efforts in programmes related to trade facilita-tionandtradeandmarketintegration.Surprisingly,theduplicationofprogrammesintradeandmarketintegrationisnottranslatingintoin-creasedintra-Africantrade.


Today’s meeting is very important and useful for the advancementandstrengtheningofthecapacityofregionaleconomiccommunities.YouwillbediscussingtheresultsofanimportantsurveycarriedoutbyACBF.Thesurveyidentifiestheseriouscapacityconstraintsandchal-lengesencounteredbytheRECsasImentionedabove.

We,atECA,believethatthegoalofcreatingtheAfricanEconomicCom-munity,asenshrinedundertheAbujaTreaty, isstillachievable iftheRECscanbeeffectivelysupportedtotacklethechallengesthatconfrontthem. In that regard, the recommendations reachedat thismeetingcouldassistallofusinaddressingthecapacityproblemsoftheRECs.

LetmeendbyassuringyouthattheECAwillcontinuetoworkdili-gently,inclosecollaborationwiththeAfricanUnionandotherpart-ners,toassistMemberStatesandtheRECsinthestrengtheningofintegrationprogrammesonthecontinent.

100 Part Two

ThelaunchofSouthernAfricanDevelopmentCommunity(SADC)FreeTradeArea(FTA)isatonceanexpressionofyourwell-known

commoncommitment to the idealsofdeeper regional integrationaswellasabidingfaithintradeasanengineofgrowth.Thisframe-work,withitsassociatedharmonisationofrulesandstandardsandremovalofexistingbarriers,promiseswelfaregains,includingmorejobs, increased investmentflowsand improvedeconomicprosper-ity. It shouldhelp individualcountries todiversify theireconomiesandtherebycollectivelyimprovetheproductivecapacitiesofSADC.Moreover,theSADCFTAisconsistentwiththeidealsofcontinentalintegrationandconsistentwiththevisiontheAfricanUnionanditsNEPADprogramme.

IntakingitsFTAforward, IknowSADCwillensurethat itsbenefitsarebroad-basedandthattheyfilterdowntoallMemberStatesandreachthegrassrootscommunity, includingpreviouslymarginalisedsectorsofsocietysuchaswomenandpoorruraldwellers.Youarealsocreatinganenablingenvironmentforthefurthergrowthoftheprivatesector,whichhasakeyroletoplayinmakingsuccessfuluseoftheregulatoryframeworkprovidedbytheFTA.Equallycommend-ableareongoinginitiativestoharmoniseSADC,theCommonMarketforEastandSouthernAfrica(COMESA),andEastAfricanCommunity(EAC)programmes,whichwillgivefurtherimpetustoachievingthe

Taking forward the Southern

African Development Community’s

Free Trade Area

South AfricaAugust 2008


aimsofthisFreeTradeAreaaswellasassisttheprocessofconclud-ingEconomicPartnershipAgreementswiththeEuropeanUnion.

ThereisgoodreasontobepositiveabouttheprospectsfortheSADCFreeTradeAreadespitetherecent lamentablebreakdownoftalksintheDohaRoundoftheWorldTradeOrganization.Whilewemuststillhopethattheglobaltradetalkscanbesalvagedgiventhenar-rownessofthedifferencesthatneedtobeovercome,weshouldalsoseethesituationasanopportunityinthesensethatweshouldnowfocus our attentionon intra-Africa trade. In this era of high foodprices,itisnow,morethaneverbefore,importanttopromoteintra-Africa tradeasameansofmeetingemergency foodneedsand inordertoprovideanincentiveforincreasedinvestmentinagriculturalproduction.

Inadditiontohighfoodprices,whichthreatenfoodsecurityandaf-fectpoliticalstability,theworldisconfrontedbyhighenergyprices,whichposeaseriousconstraintonourcollectiveabilitytomovefor-wardonthedevelopmentagenda,includingachievingtheMDGs.Ifweaddthenegativeeffectofclimatechangetothemix,itthenbe-comesclearthatconcertedeffortswillbeneededifthisregionistomaintaincurrentgrowthtrendsandovercomespill-overeffectsfromanincreasinglytroublingglobaleconomicoutlook.

SADChasestablishedastrongtrackrecordofsolidarityinrespond-ingpositivelytochallengesthatfacethesub-regioninareassuchaspovertyreduction,governanceandconfrontingthechallengeofHIVandAIDS. Iamthereforeconfidentthatsimilardeterminationwillbe brought to bear in addressing present challenges of high food and energyprices,climatechangeandapotentialeconomicdownturn.

ECA, and indeed the entire UN system, remains available to sup-portSADCeffortswithregardtooperationalising itsFTAaswellasinotherareasoftransboundarycooperation.Inparticular,wehavecreatedcrediblecapacitytoimproveaccesstoreliabledata,whichisessentialforevidence-basedplanningandthemonitoringandtrack-ingprogress invariousareasofdevelopment. Indeed, since I lastaddressedthisaugustgathering,anAfricanCentreforStatisticshasbeenestablishedatECAanditisworkingactivelywithseveralSADCmemberStatestoimprovetheirstatisticsanddeveloptheirnationalstatistical systems. In this context,we salute the supportanden-

102 Part Two

couragementreceivedfromtheSouthAfricanGovernment,inpar-ticularfromMinisterTrevorManuelandthestaffoftheDepartmentofFinance.

Ourcooperationinsupportofitseffortsoverawiderangeofactivi-tieswillbedeepenedbytheMemorandumofUnderstandingwhichECAhopestosignwiththeSADCSecretariatafterapprovalbytherelevantbodies. Meanwhile,wehavere-focusedourprogrammesso that theyaresynchronisedandsupportiveof theprioritiesandprogrammesoftheSADCSecretariat.YoucancountonthesupportofECAandtheentireUnitedNationssystemasyouworktogetherinacoherentandcollaborativemannertoimprovethelivesandpros-pectsofyourpeople.


I ampleasedtobeherewithyoutodaytocommemoratethe35thanniversaryoftheAfrican,CaribbeanandPacificGroup,theACP

Group.Sinceitsinception,theACPGrouphasconsistentlyandcred-iblymanagedtherelationsbetweenitsmemberStatesandtheEu-ropean Union over the years through the changing structure of the Europeanintegrationprojectaswellastheconstantlymutatingin-ternational landscape.Thisanniversaryisthereforewellworthcel-ebrating.

Ifindthethemeofthissymposium–RegionalIntegrationandGoodGovernance–compellingforseveralreasons.Tostartwith,regionalintegrationisoneofthetwopillarsofECA’swork,theotherbeinghelpingAfricatomeetitsspecialneeds.Improvinggovernancecon-ditions inAfrica is certainlyoneof the continent’spriorities if theprovisionsoftheAUCharteranditsNEPADprogrammeareanythingtogoby. ThetopicisalsopertinentandtimelybecauseweareattheheartoftheEuropeanUnion,themostsuccessfulregionalinte-grationarrangementofrecenttimes. Topicalevents,evenhere inEurope,have shown thatgovernanceconditions in someMemberStatesimpactgreatlyonothermembersoftheEuropeanUnion.

SinceAfricaisthecontinentthatIammostfamiliarwith,mostofmyexampleswillbedrawnfromthere.Africaasacontinent,givenitsfragmentationintosmallStates,hastointegrateifitistosignificantly

Using good governance to

promote regional

integrationAfrican, Caribbean and Pacific Group of States (ACP Group) Symposium on:

Regional Integration and Good Governance

Brussels, Belgium7 June 2010

104 Part Two

improvetheeconomicandsocialconditionsofitspeople.Wehappi-ly note the increasing commitment of Africa and its leaders through theAfricanUnionandtheRegionalEconomicCommunities(RECs)totheintegrationagenda.

IwilloutlinesomekeyissuesthatarerelevanttoallregionalgroupscomprisingtheACP.This iscertainlythecasewithmycentralprem-ise,whichisthatthesuccessandcredibilityofanyregionalintegrationagreementbeitafreetradearea,customsunion,economiccommu-nityoreconomicunionisultimatelydependentongoodgovernancepracticesinindividualmemberStatesshapedbysharedvalues.

Forpurposesofclarity,bygovernanceIamreferringtotheprocessesthroughwhich individuals and organisations participate, cooperate,decideandresolvedisagreementsregardingtheproductionanduseofpublicgoodsinthecontextofstaterelations.Thisrelatesbothtothenatureofpoliciesadoptedaswellastheinstitutionalsetupforactingonthem.Fortheseprocessestofunctioneffectivelytheymustbeunderpinnedbysharedvaluessuchasacommonculturalheritage,democracy,humanrights,genderequality,accountability,equityandtherealisationthatthehumanbeingmustbeplacedatthecentreofdevelopmentefforts. Sharedvaluesprovidethebasisofacommonapproachfordealingwiththeinterlinkagesbetweenregionalintegra-tionandgovernance.

The validity of this statement can be seen from the varying interac-tionofregionalintegrationandgovernance,especiallywithregardtoissuessuchasfindingtherightbalanceofsovereigntythatmemberStatesarewilling toyield to their regionalgrouping. It canalsobedemonstratedwithregardtothemanagementofinstitutionsofinte-grationand transboundarycooperation, thecostof integration, thepreventionofconflictsaswellastheoverarchingimperativeofade-velopmentoutcome.AlsokeyinthisregardaretheissuesrelatingtovoiceandrepresentationofAfricaandindeedthewiderACPinglobaleconomicprocesses.

The degree of sovereignty and amount of policy space that member States arewilling to cede to regional groupingswoulddepend to alargeextentontheirsharedvalues.Theirabilitytocedesuchimpor-tantstateprerogativesdependontrustandcommonalityofpurposethattheyhavewithothermembersandthiscanonlybeassessedby


agoodtrackrecordofgovernanceandcompliancewithagreedpolicyobjectives.WeareallawareofthefactthatmembershiptotheEuro-peanUnionrequirescandidatecountriestoshowthattheycanmeetcriteriasuchasfunctioningdemocraticinstitutionsandmarketecono-miesaswellastheabilitytomeettheobligationsofmembership.

Thecloseinter-relationshipbetweengovernanceandregionalinte-grationisalsoevidentinthemanagementoftheinstitutionsofin-tegrationandtransboundarycooperationbetweenmemberStatesofregionalgroupings.Bytheinstitutionsofintegration,Imeannotonly the secretariats of regional groupings but also their intergovern-mentalbodiesandspecialisedagencies. Thesebodiesneedtoac-quireandbuildupthecapacitytoenvisionintegrationstrategiesandinfluenceagreedeconomicandsocialoutcomes.Moreover,regionaleconomiccommunitiesshouldhavethecapacitytosuccessfullyun-dertake tasks thathavebeen identifiedbyparticipatoryand inclu-sive processes as properly belonging in the realm of transboundary cooperation.

Theprocessofintegrationisacostlyonebecauseofitsinstitutionalrequirements as well as for the funding of physical infrastructureandprogrammessuchastheEU’sCommonAgriculturalPolicy(CAP).Where money is concerned there are likely to be tensions over its use.ItisthecommoncommitmenttotheefficientandtransparentuseofresourcesandthebeliefthatscalesofassessmentwerefairlydeterminedthatencouragesmemberStatesofRECstobewillingtoentrustresourcestothecentre.Butthisisnottheonlyconsidera-tion.TaketheEconomicCommunityofWestAfricanStates(ECOW-AS)forinstance,whichhasdevelopedagoodfinancingarrangementthrough levieson imports into theCommunity. Therehave tobegoodgovernancepracticesintermsofstatistics,recordkeepingandcustoms procedures to ensure that such levies are fully transferred torelevantECOWASinstitutions.

Theformulationandimplementationofcommonpoliciesmustalsobeunderpinnedbysharedvalues. To illustrate, I recall thatmem-bershipoftheEurozonerequiredthatgovernmentsofitsmembercountries maintain and report accurately on policy regimes that wouldensurethestabilityofthecurrencyandthefinancialsystemoftheentirezone.Theabilitytocomplywiththemonetaryandfis-calrequirementsofthispolicyregimewouldcertainlymattermore

106 Part Two

indevelopingcountriesbecauseofissuesofstatecapacity.Wherecountriesareunabletomanagetheirexternaldeficitsduetostruc-tural constraints and governance challenges then they are unlikely to beabletoenterintosinglecurrencyarrangements.Thesameistruefortheadministrationofrulesoforiginrequirementsinpreferentialtradeareas.

SomekeysharedvaluesoftheAfricanUnionrelatetoidentity,op-portunity,justice,andfairness.Whenthesearenotobservedthereispotentialforconflict,whichalsoundermineseconomicandsocialdevelopment,includingthroughthewipingoutofsocialcapitalandtrust.Similarly,withopenbordersandglaringdisparitiesineconomicopportunitywithinaregionalgrouping,peoplearelikelytoresorttomigrationwhichinturncanarousefeelingsofxenophobia.Sharedculturalheritageandaffinitiescanhelpmanagesuchprocessesandkeepstatesfromclosingtheirborderswhenconfrontedwith largenumbersofrefugeesoreconomicmigrantsfromwithintheirregion-algrouping.

Akeysharedvalueinintegrationandgovernanceprocessesrelatestoplacingtheimprovementofthehumanconditionatthecentreofdevelopmentefforts. Regional integrationgroupingsmustaccord-inglybegovernedwithdevelopmentoutcomesinmind.Inadditionto the potential gains from trade, economies of scale fromwidermarket opportunities and the pooling of resources to undertakecommonprojects, regional groupingsmust remain accountable totheir people in thepolicy stances that they adopt. Regional poli-cies must promote the achievement of the Millennium Development Goals and encourage foreign direct investment and should not be fo-cusedsolelyonshort-termgains.TheabilityofafinancialinstitutionsuchasECOBANK to successfullyopenandoperatebranchofficesinseveralmemberStatesofECOWASatteststotheexistenceofre-gionalpoliciesthatenabletransboundaryinvestmentinthatregion.

Thus far, I have emphasised how the shared values underpinninggoodgovernanceimpactonregionalintegrationbuttherearealsowaysinwhichtheconverseisalsotrue.Beingtogetherinaregionalintegration grouping provides opportunities for countries to learnfrom one another, especially in the process of adopting commonpolicies.Italsoprovidesaframeworkforclearlyarticulatingandde-velopingsharedvalues. Theexampleof theAfricanUnion issalu-


tary,thesharedcommitmentofitsmemberStatestodemocracyandhumanrightshasledtotheadoptionofclearpoliciestoresistandopposeunconstitutionalchangesofgovernment.TheAfricanPeerReviewMechanismoftheAfricanUnion,whichisaninnovativeandvoluntaryapproachtoinstitutionalisingbestpracticesingovernanceisyetanotherexampleofthecontributionthatregionalintegrationarrangementscanmaketopromotinggoodgovernance.

Thesame isalso true for theconductof international relationsasmembership of regional groupings gives small states greater voice andrepresentationinglobalinstitutionsandnegotiatingforums.Af-rica’swidelyhaileddecisiontonegotiateasoneintheclimatechangenegotiationsisanexampleofaninstitutionalarrangementthathasarisenoutoftheintegrationeffortsofthecontinent.Anotherexam-ple,relevanttotheACPGroupisthenegotiationofEconomicPart-nershipAgreementswiththeEuropeanUnionbydifferentregionalgroupings.Sucharrangements,giveAfricaavoicetohelppromoteglobalsharedvaluesofequity,fairnessandrespectfortheviewsofthelesspowerfulmembersoftheinternationalcommunity.

Africa’scommitment toregional integrationand improvedgovern-ancemustbetemperedbytherealisationthatthereisstillalotmoretobedone.Takeforexample,trade,whichisoneofthepillarsofre-gionalintegrationprogrammesinAfrica.Despitecommendableef-fortsbyAfricancountriestosignificantlydismantlebarrierstotrade,intra-Africantradeisstilllow.ThefourthreportonAssessingRegion-alIntegrationinAfrica,whichwaspublishedjointlybytheEconomicCommission forAfrica,AfricanUnionCommission and theAfricanDevelopmentBank,findsthatintra-Africantraderepresentsonaver-agearound10percentoftotalexports.Thisstateofaffairsispartlyduetoalackofphysicalinfrastructureaswellastopoorgovernancepractices suchas theexistenceof roadblocks, legal orotherwise,andthefailuretoimplementtradeprotocols.

ThesuccessfulimplementationofpoliciesandprotocolsadoptedbyRECsmustalsobematchedbythecontinuationofeffortstoreducethecostofdoingbusiness.TheevidencefromAfricashowsthattheex-factorycostofproductionisnotmuchdifferentfromotherpartsof the world and that its products start becoming uncompetitivewhentransport, infrastructureandregulatorybarriersarefactoredintotheequation.Thisunderscorestheimportanceofregionaltrade

108 Part Two

facilitationprogrammes,whicharebeingsupportedbytheAid forTradeinitiativeoftheWorldTradeOrganization(WTO).ThedecisionofmemberStatesoftheCommonMarketforEasternandSouthernAfrica(COMESA),EastAfricanCommunity(EAC)andSouthernAfri-canDevelopmentCommunity (SADC)toembark inthiscontextontheNorth-SouthCorridorprojectclearlydemonstratestherequiredvisionandcommitmenttoachievesuchobjectives.

Tosumup,regionalintegrationwillnotbesuccessfulifitisnotun-derpinned by good governance and there are certainly governance practicesthatcanbepromotedbytheintegrationprocess.Thefind-ingsof theAfricanGovernanceReport,publishedbyECA, indicatethat good governance is intrinsically linked to improvement in eco-nomicandsocialoutcomes.

TheseareoutcomesthatweareallcommittedtoandECAwillcer-tainlycontinuetoworkcloselywiththeSecretariatoftheACPGrouptoarticulatesounddevelopmentpoliciesandpromoteinternationaleconomiccooperation.


This is a time of greatly increased interest in Africa’s economicprospectswhich is comingquiteparadoxically at atimeofun-

certainty in the global economic outlook especially in the developed economies.However,tobeabletobenefitfromitsemergingpoten-tial,Africamustcontinuetoembraceregionalintegrationwithevengreaterzealandcommitmentthanhasbeenthecaseuntilnow.Inthisregard,Imustdeclaremyselfasanunwaveringadvocateofre-gionalintegrationinAfrica,but,ofcourse,Iamnotalone.Thisisaposition thatAfrica’s leaders haveby themselves committed to intheAbujaTreatyestablishingtheAfricanEconomicCommunity,theConstitutiveActoftheAfricanUnionandthetreatiesofthevariousRegionalEconomiccommunities.

Thiscommitmentisalsoreflectedinthenotableprogressthathasbeenmade in tradeandmarket integrationwith themovebyRe-gional Economic Communities to create free trade areas and cus-tomsunions.Itisalsoreflectedinarrangementsformacroeconomicconvergence,monetaryandfinancialintegration,freemovementofpeople,commitmentstoimprovinggovernanceandensuringcondi-tionsofpeaceandsecurityinthecontinent.InoticehoweverfrommyvantagepointattheEconomicCommissionforAfrica,whichhasbeen in the vanguard of promoting regional cooperation inAfricasincetheearly1960s,thatthereissomedegreeofuncertaintyaboutthepace,institutionsandprocessesofintegrationinthecontinent.

Deepening regional integration

to sustain Africa’s emerging potential

2nd Conference on Africa: 53 Countries, One Union

Washington DC, USA15 June 2011

110 Part Two

Inresponse,IwishtoofferthefollowingframeworkforacceleratingtheprocessofintegrationinAfricaandforovercomingcurrentchal-lenges.

Firstofall,Africa,thatis,itsgovernmentsandpeoplesmustcontinuetodebatealldimensionsofregionalintegrationinthecontinent.ThevalueofdebateisinformedbytheexampleofEurope,wherethereisstillavigorousexchangeofviewsaboutthenatureandinstitutionsoftheEuropeanUnion.Ratherthanbeingaconstraint,suchdiscus-sions have fuelled the great progress that has been made in that con-tinentovertheyearssincetheestablishmentoftheEuropeanCoalandSteelCommunityintheParisTreatyof1951.

SuchadebateinAfricashouldincludebutcannotbelimitedtogoals,stages, speed, timing, priority sectors and institutional structures.Without a doubt, if our efforts to integrateAfrica are to succeed,thenit is imperativethatwhenwespeakofregional integrationinAfrica,wecandosowithconfidencederived fromtheknowledgethatwearealignedbehindacommongoalhavingexaminedtheis-sues involved,airedourdifferencesanddeterminedtheresourcesrequiredtoachieveourobjectivebuildingapeaceful,united,resil-ientandrenascentAfrica.

Mysecondpointwouldbetoreiteratethat integration inAfrica isbased on shared values, as recently demonstrated at the January2011AUSummitwhichdevoteditsmeetingtothistheme.AsIstat-edonthatoccasion,Africa’sassertionofcommonvaluesstartedinthepre-independenceerawithafocusontheAfricanidentityandthepan-Africanist ideal. Thisshared identityshapedacontinentalunity thatdoesnotexistelsewhere in theworldand,despite set-backsalongtheway,ithasbroughtaboutacommoncommitmenttodemocraticideals,respectforhumanrights,promotionofgenderequality,promotionofculturalandreligioustoleranceandthebuild-ingofinclusiveandharmonioussocieties.

TheAfrican PeerReviewMechanism is a practical example of thecommitmenttosharedvalueswithinthecontinent.ItisnotpossibletohaveacluborcommunityofanysortwithoutsharedvaluesandAfricamust accordingly continue toplace emphasis ondeepeningcommitmenttothevaluestowhichithassubscribed.


Next, I would posit that more trans-boundary cooperation is re-quiredtodeepenintegrationinAfrica.Ifintegrationistobemean-ingful, itmustenable regional solutions tocommonchallenges. Inotherwords,theAfricanUnionanditsmemberStatesmustcontinuetoworkassiduouslytoincreasecooperationwithinthecontinenttopromote peace and security in all parts and assist in the harmoni-ousandmutuallybeneficialuseofsharedresourcesincludingwater,forestandmineralresources.Suchcooperationisalsoessentialfortackling common threats to health and environment aswell as inovercomingtheimpactofclimatechangeandthesharedeffectsofenvironmentaldegradation.

Trans-boundarycooperationisalsokeyforthedeterminingthestand-ards,codes,rulesandregulationsthatreducetransactionscostsandfacilitatetradeandinvestment.Itwillalsoenablethecommonpro-visionandoperationofinfrastructureandservicesrequiredtospurfurthergrowthinAfricaneconomies.Ofcourse,moretrans-bound-arycooperationmightentailsomesacrificesorentailthemusteringofpoliticalwilltocedesomesovereigntybutitmustultimatelybedrivenbytherealizationthatthereismoretobegainedbyworkingtogetherthaningoingitalone.

Thelastaspectoftheframeworkthroughwhichwemightwishtoviewissuesofregionalintegrationrelatestoclarifyingthearchitec-tureof regional integration inAfricaand strengthening related in-stitutions. SincetheadoptionoftheLagosPlanofActionin1980,regionaleconomicgroupingshavebeenrecognizedasthebuildingblocks of continental integration. However, the establishment ofthese bodies has not taken place in a consistent and coherent man-nerandtheresulthasbeenoverlappingroles,duplicationoffunc-tionsandcompetingclaimsonscarceresources.Itwasagainstthisbackgroundthatthethemeofthe2ndAssessingRegional Integra-tioninAfricareportnowjointlyproducedwiththeAfricanUnionandAfricanDevelopmentBankwasdevoted to “RationalizingRegionalEconomicCommunities”.

Icantellyouthatthiswasaveryhotlydebatedandcontentiousis-sueforsomeoftheRegionalEconomicCommunitiesbutthereportultimately spurred the decision of the African Union to recognisejusteightRegionalEconomicCommunities(RECs).Thiswasastepintherightdirectionbuttherearemanyothergroupingswhoseman-

112 Part Two

datesrelatetoregionalandeconomic integrationthatcontinuetoexistandfunction.Sincewecannotwishthesegroupingsaway,weneedtobeinnovatinginourthinkingabouthowtheycanfitintotheorganizationalframeworksoftheirrelevantRECs.PerhapsinWestAfrica,theManoRiverUnioncouldbecomethesubsidiaryorganofECOWASforpeacebuildingandpost-conflictreconstruction.

Allofthisgoestoshowthattheorganizersofthisconferencewerequite right to focus the sessions thatwill takeplace tomorrowonissuesofpeace,security,democracyaswellastradeandinfrastruc-ture.AlloftheseissuesareimportantbutIcannotaddressthemallinthetimeavailable,sopermitmejusttosayafewwordsonthecriticalissueofinfrastructurethatisrequiredtolinkupAfrica’svastspaces,poweritsindustries,facilitatetradeandlightupitshomes.There is much agreement on the vital role of infrastructure in pro-motinggrowthatthenationallevelinAfricabutIfeelthatitisequallyimportanttoexplorethepossibilitiesofregionalinfrastructure.ThisapproachwillnotonlyfasttrackintegrationbutwillactuallyenableimplementationofsomeofthelargerprojectslikeINGAwhichwillbemoreefficientandwillbringunitcostsdowntobebuilt.

Takingaregionalapproachtotheprovisionofinfrastructurerequiresseveral issuestobeaddressed including joint identificationofpro-jectsandprovisionoffinancingthroughregionalfundingwindows.I certainly hope that theworkof theG20High Level Panel on In-frastructureFinancewilllendimpetustothisprocessparticularlyinAfrica.Thismatterisalsocloselyrelatedtofinancingtheprocessesand institutionsof integrationand thewaysandmeansof sharingthecostsandbenefitsof integration. Therewillbelosers insomeinstancesoftradeliberalizationbuttheuseofcompensationfundsintheshortrunandpromotionofcomparativeadvantagesinthelongruncouldhelptoovercomeanydifficultiesinthisarea.

At ECA,we areworking very closelywith theAfricanUnionCom-mission and the African Development Bank to accelerate Africa’s integrationagenda. Aspartof theprocessofbringing the collec-tivepolitical,technicalandfinancialresourcesofAfricatogether,wehaveestablishedaJointSecretariatSupportOffice.Wearealsocol-laboratingwithourpartners across the four areas I haveoutlinedtoensurethatourcommonaspirationsforanintegratedAfricaareachieved,soonerratherthanlater.


ThiseramarksthebeginningoftheAfricanmoment.Afteryearsofnegativeviewsandnewsaboutourcontinent,amorepositive

message is emanatingaboutoureconomicprospects. TheAfricaneconomywasresilientoverallduringtheglobaleconomiccrisisandour continent is emergingon the global economic scene. Africa’spotential as adestination for foreigndirect investment in supportofglobalgrowth isevidentfromvariousstudies includingarecentanalysiswhichfoundthatsixofthefastestgrowingeconomiesglob-allyoverthelastdecadewereinAfrica.

Thedataavailabletousalsotellsthisstory.Africa’sGrossDomesticProductgrewonaverageby4.7%in2010comparedto2.4%duringthethroesoftheglobaleconomicandfinancialcrisisin2009.Thisswiftandfairlyrobustrecoverywashelpedbyhighcommoditypric-es,increasedflowsofforeigndirectinvestmentandthereboundoftourism.Itwasreinforcedbycountercyclicalpoliciesinsomecoun-tries,andagoodshowinginagricultureandthetelecommunicationssector.Growthprospectsremainfairlystrongwithanexpectedaver-agegrowthrateof5%in2011.

Imustcautionhoweverthatdespitethis fairlyoptimisticscenario,thereremainseriousdownsiderisks,whichasrecenteventsinsomeofourcountriesshow,canunderminesocialstability.Inparticular,Africa’s relatively stronggrowth isyet to translate infomeaningful

Transforming Africa into a

destination for foreign direct investment

Statement at 18th Ordinary Session of the AU Executive Council

Addis Ababa27 January 2011

114 Part Two

job creation especially for its rapidly expanding youth population.Thistroublingsituationisbeingfurthercompoundedbyrisingfoodand fuelprices, thedangersofclimatechangeaswellasdevelop-mentsintheglobaleconomyespeciallythesovereigndebtcrisis,fis-calconsolidationandcurrencytensionsindevelopedeconomies.

IfAfrica’spromisinggrowth is tobesustainedand improveduponthen itmustbebuttressedby thesharedvalues thatunderpinoursocietalandstaterelationsincludingrespectforthehumanbeing,eq-uity,equalityofopportunityandaffirmationof theAfrican identity.Indeed,Africa’seconomicgrowthmustremainhighforrequiredstruc-turaltransformationbutitmustalsobeinclusive,justandequitableotherwisethereisarealriskthatitmightbederailed,whichunder-scorestherelevanceofthethemeoftheforthcomingSummit–To-wards Greater Unity and Integration through Shared Values.

Shared values convey a sense of community and common interests andareintegraltoanyclub,society,orgrouping.Theycanbeuniver-salorparticularasisobviousfromtheexampleoftheUnitedNationsandotherregionalgroupingsaroundtheworld.IwouldaverinthisregardthatAfricahascontributedtopromotingagloballyacceptedethicalnormthatanindividualdoesnotexistinisolationfromhiscom-munity,whatourbrothersandsistersfromSouthernAfricacall‘Ubun-tu’. This isreflectedinthe“African Charter on Human and People’s Rights”whichtakesaccountofsocialandgrouprightsespeciallyinthecontextofdevelopmentbutwhichdoesnotnegatefromtheconceptoftheAfricanidentity.

Africa’sownquestforcommonorsharedvaluesstartedinthepre-in-dependenceeraandcontinuestodate.ThisprocesshasbeenmarkedbysuccessesandsetbacksbuttheAfricanidentity,whichiscloselyre-latedtoourunrelentingvisionforanintegratedcontinenthasbeenacommonthread. ThiswasthevalueunderpinningPan-AfricanismwhichreaffirmedhumandignityirrespectiveofcolourandcreedandinspiredAfrica’sfightforfreedomanddecolonizationandagainstrac-ism.

This shared identityalsohelped to shapeAfrica’s institutional land-scapefirstwiththeOrganizationofAfricanUnityandnowtheAfricanUnionandourRegionalEconomicCommunities.Ithasalsobuttressedourcommoncommitmenttoimprovinggovernanceinthecontinent


includingthroughadoptionofdemocratic ideals,respectforhumanrights,promotionofgenderequality,promotionofculturalandreli-gious tolerance and building of inclusive and harmonious societies.TheadoptionoftheCharteronDemocracy,ElectionsandGovernancefurtheratteststoAfrica’sfirmconvictionandcommitmenttoestab-lishingagovernancearchitecturetostrengthenthisagenda.

Theseaspirationsare reflected inboth theNEPADandAPRMpro-grammesandenshrinedinseveraltreatiesandchartersoftheAfricanUnionbutwealsohavetoacceptthattherearestillgapsbetweenourgovernancevisionandthecomplexanddifficultrealitiesacrossourvastanddiversecontinent. Undeniably,electoralprocesses insomeofourcountrieshavebeenfraughtwithchallengesthatneedtobebetterunderstoodandaddressed,whichiswhythenextAfri-canGovernanceReporttobepublishedbyECAanditspartnerswillbetakingacloserlookat‘electionsandmanagementofdiversity’.

Improved governance is also needed in the development process whichiswhythenextAU/ECAConferenceofMinistersofFinance,PlanningandEconomicDevelopmentwillbedeliberatingon ‘Gov-erning Development in Africa’.JustastheLagosPlanofActionandtheNEPADprogrammeattesttoasharedcommitmenttotheeco-nomicandsocialdevelopmentofthiscontinent,ithasbecomeim-portant to place development back on the agenda of the governance discourseafternearlythreedecadesofrelativeneglect.Giventhecontinuedexistenceofgrindingpoverty,hungerandlimitedaccesstoeducation,healthandsuitableshelterandtheevidencefromoth-ersuccessfuleconomies,itisnolongerpossibletolimittheroleoftheAfricanstatetothatofamere‘nightwatchman’.

Anotherwellknownvaluethatissharedinthiscontinentisthecol-lectivecommitmenttopromotingpeaceandsecurity. Thismeanspreventing and stopping violent conflicts and civil wars to enablestable conditions for enduring socio-economic development. ThedecisionofAUmemberStatestodiscardtheprincipleofnon-inter-ferenceinfavourofnon-indifferenceintheAUConstitutiveActwassothattheUnioncouldactastheultimateguarantorandprotectoroftherightsandwell-beingoftheAfricanpeople.Thissharedvaluehas informed the development of an elaborate peace and security architectureandtheimportantfocusonpostconflictreconstructionanddevelopmentbytheAU.Givenitsownwellknownmandatein

116 Part Two

thisarea,theUnitedNationshasgeareditselftosupportingthisef-fort.

Ourcommitmenttoregionalintegrationisabouttakingcommonap-proaches to tackling common challenges and also a mechanism for shapingnewvalues.Inadditiontoitseconomicadvantages,regionalintegrationpromotestrade,peaceandsecurity,asborderconflictsareunlikelywhereintra-regionalbordercontrolsarede-emphasisedandthe idealof freemovementofpeople isattained. Integrationalsoenablestheshapingofvaluesthroughinter-regionalprocessestoguidethemanagementofnaturalresourcesincludingsharedwa-terresources.Ithasalsogivenimpetustothephysicalintegrationofthecontinentandprojects liketheINGAdamshouldbepromotedandexecutedtoshowcommitment.Successinregionalintegrationcannot be measured by individual country progress but by the collec-tivegainsoftheentirecontinent.

The shared commitment to shaping common African responses to globalchallengesisanotherkeyvaluethatthisUnionhasdeveloped.WhileAfricahas always tried towork together in global negotiat-ingforumsitwasonlyrecentlyinthecontextoftheclimatechangenegotiations that thedecision tonegotiate asonewas formalizedwiththeestablishmentoftheConferenceofAfricanHeadsofStateandGovernmentonClimateChange(CAHOSCC).Iamconfidentthatwith thesuccessof thisprocess,weshall continuetohavesimilararrangementsespeciallygiventhereneweddesiretoconcludetheDohatradetalksthisyearaswellason-goingeffortstoreformtheinternationalfinancialsystem.

Thewiderangeandscopeofinstrumentsreflectingoursharedvaluesallattesttotheconsiderableprogressthathasbeenmadetoputinplacecontinentalpolicyframeworksandaccompanyinginstitutionalarchitecture.Whatremainsnowistodomesticatetheirprovisions,provide required financial resources and promote beneficial part-nerships.Oursharedcommitmenttosuccessfulintegrationrequiresthatcontinentalarrangementsareimplementedinindividualcoun-triesandthatweensurethefinancialviabilityoftheAUCommissionandotherinstitutionsofintegration.Moreover,wemustcontinuetobuildpartnershipswiththerestoftheworldincludingtheemergingeconomies.


TheUnitedNationssystemremainscommittedtosupportingAfrica’sintegrationanddevelopmentagendabasedonownuniversalsharedvalues.Ourpillarsofworkandtheprioritiesinourworkprogammesreflectthisrealityfromissuesofconflictprevention,crisismanage-ment,resolutionofongoingconflictsandelectoralassistancetohu-man rights, humanitarian assistance including refugees, children,youth and women, health and HIV/AIDS, education and environ-menttomentionbutafew.This iswhywecontinuetostrengthenRegionalCoordinationMechanismforUNAgenciesinAfricawhichisconvenedandcoordinatedbyECA.Atits11thmeetinginNovember2010, theRCMadopted recommendations relating to theUNTenYearCapacityBuildingProgrammefortheAUC,NPCAandtheRECsandforusingtheRCMplatformforadvancingAfrica’spreparationstowardstheUNSustainableDevelopmentConferencein2012.

TheUNhasalsoestablishedanOffice to theAfricanUnion toen-hancethepartnershipbetweenitandtheAUintheareaofpeaceandsecurity.TheOffice,knownasUNOAUwillalsocoordinateUNpeacekeeping and special politicalmissions. TheOffice is headedby Assistant Secretary-General ZacharyMuburi-Muitawhowill nodoubt be engaging Ambassadors in Addis Ababa to provide further details.

The renewed self-belief, and “can do” attitude in Africa shouldnow be translated into peace, better economicmanagement, theachievement of the MDGs, provision of first class regional infra-structure,increasedintra-Africatradeandforeigndirectinvestment.These elements and a commitment to placing the human being at thecentreofdevelopmentwillbringaboutawelleducated,healthy,highly-skilledandgainfullyemployedcitizenrythatwillpromoteandprotect the valuesof theAfricanUnion and takeownershipof itsintegrationagenda.Thismustbeourunwaveringvision.

118 Part Two

Thetopicofthisforumisofcriticalimportanceandremainscen-tralintheongoingdiscourseofacceleratedeconomicgrowth,job

creationand sustainabledevelopmentof LDCs,mostofwhichareAfricancountries. Indeed, inadequateproductivecapacityand lowproductivitycontinuetoconstrainefforts topromotehighsustain-ablegrowthandtoincreasewelfareandreducepovertyinthisgroupofcountries.Thethemeofthisforumisthereforeveryappropriate.

AfricanLDCsrecordedrelativelyhighGDPgrowthratesduring thelastdecadeincludingnotablyincountrieslikeEthiopia,MozambiqueandUganda. However this growthdidnot translate into employ-mentandpovertyreductionduetolimitedprogressinseveralareasthat are critical to stimulating productive capacities for enhancedgrowthandpovertyreductionincludingtargetedinvestmentstoim-provephysical infrastructureandhumancapital,andlabor-absorb-inginvestmenttocreatejobs.

ItshouldalsobepointedoutthatthedriversofAfricanLDCs’growthareextremelyvulnerabletoshocks.Thiswasevidencedbytheim-pactofthefinancial, fuelandfoodcrisesonLDCgrowthrates.Al-thoughtheeconomiesofmanyofthesecountriesreboundedafterthecrises,growthratesremainfragileandmaynotreachthethresh-oldof7percentorsignificantlyreduceunemploymentandpoverty

Building productive

capacities for poverty eradication

LDC IV Conference’sSpecial event of the Organization of

Islamic Conference/Turkey Forum

Istanbul, Turkey11 May 2011


rates.MacroeconomicimbalancesinsomeAfricanLDCshavedete-rioratedfurtherasaresultofthecrisis.

ThevulnerabilityofAfricanLDCstoexogenousshocksisalsoduetolimited diversification. Growth in African LDCswas spurred by fa-vorabletrendsinprimarycommodityexports.Intheperiod2000-2009,exportsofAfricanLDCgrewatanaveragerateof14percent,comparedtotheglobalaverageof7.8percentwithfuelsandminingproductsconstitutingmorethantwo-thirdsofAfricanLDCexports.Thisexportperformancehashoweverhad limitedspillovereffectsontherestoftheeconomybecausetheproductionofthesecom-moditiesisgenerallycapital-intensivewithlimitedforwardandback-wardlinkagestothelocaleconomy.

EconomicdiversificationandstructuraltransformationisvitalifAfri-canLDCsaretoaccelerateandsustaingrowth,reducevulnerabilityandreducepovertywhichiswhytheincreasedpoliticalcommitmentinAfricatotheseoutcomesistobeapplauded.TheConferenceofAfricanMinistersofFinance,PlanningandEconomicDevelopmentorganized jointlyby theAfricanUnionand theEconomicCommis-sion forAfricaonanannualbasishaspaid increasingattention tothismatterwithparticularemphasison resourcemobilizationandinstitutionbuildinginsupportofAfricanLDCs.

Similarly,a recentmeetingofAU/ECAMinistersof Industry identi-fiedkeystrategicindustrialsectorsforstrengtheningoftheAfricanIndustrial Development Agenda in order to promote greater value additionandstructuraltransformation.

ItisalsopleasingtonotethattheUNclusterontradeandproductivecapacity,inwhichECAplaysanimportantpart,hasalsodrawnupanactionplantosupportLDCsinthevitalareaofincreasingproductivecapacity.

Thecommitmenttodiversificationneverthelessneedstobebackedbyotherpolicymeasures.LDCgovernmentsshouldaccordinglycon-tinuetoprovideincentivesforexportsandexpandinternalmarketsthrough,regionalintegration.

ButyouwillagreewithmethatLDCscannotdoitalone.Theywillneed the support of the international community in a number of

120 Part Two

ways.Ofcritical importance is theneed fordevelopmentpartnerstosupporteffortsaimedatcreatingacommonpreferenceschemewithfullproductcoverage,flexiblerulesoforiginandapredictabletime frame. As you arewell aware, current schemes have inflex-iblerulesoforigin,excludecertainproductsthatareofimportancetoLDCsandincludeeligibilitycriteriathatnegativelyaffectregionalintegration.

ECAcontinuestosupporttheeffortsofAfricanLDCstoachievetheirdevelopmentobjectivesasdemonstratedbytheestablishmentofadedicated team in its Economic Development and NEPAD Division tospecificallyworkonLDCs’issues.WealsoorganizedtheAfricanregionalreviewoftheBrusselsProgrammeofActionforLDCswhoseoutcomesinvolvedtheadoptionofacommonAfricanpositionthatwillnodoubtinformthefinaloutcomedocumentofUNLDCIV.

OtherexamplesofECA’ssupporttoAfricanLDCsincludethedevel-opmentof policy-enhancing knowledgeproducts such as the Eco-nomicReportonAfrica(ERA),theAfricaMDGsReport,andtheAfri-canGovernanceReport,tonameafew.TheseproductsandaswellasthecapacitybuildingandadvisoryservicesprovidedbyECAfocuson strengthening democratic and economic governance inAfricancountriesincludingLDCs.

Thereremainsmuchgroundtocoverandthisforumaffordsustheopportunitytotakestockandrenewourefforts.Aswereflectanddeliberateonthisveryimportanttheme,weshouldbeguidedbytheultimategoalofcomingupwithpracticalandconcreteproposalstoupscaletheproductivecapacitiesofLDCssoasto increasegrowthandemploymentandtherebyincreasewelfareandreducepoverty.


ECAendorsesthekeyrecommendationscontainedinthebriefingnotepreparedbytheUN-CEBInter-AgencyClusteronTradeand

ProductivityCapacity,towhichwebelong.ThefirstpointIwishtomake is that trade is playing an increasingly important role in Africa’s economicprospects.

African economies grew rapidly in the last decade and this goodperformanceincludedAfricanLDCs.Thisgrowthwasrelativelyresil-ienceduringtheglobaleconomiccrisesandtradewasanimportantsourceofthisgrowth.

Alsonoteworthy is the fact that LDCs tradevalueshave improvedalthoughtheproductsanddestinationsshowlimiteddiversification.

DuringmostoftheBrusselsPlanofActiondecade,LDCsexperiencedanaverageannualgrowthrateofexportsof14%comparedtotheworldaverageof7.8percent.However,thisrobustperformancewasmostlyduefuelsandminingproducts,whichaccountformorethanthree-fifthsof totalLDCsexports.ThemarketdestinationsofLDCsexportscontinuetoevolvewithChinaisnowabsorbing21percentofLDCs’merchandiseexportsin2008.

A thirdpoint tonote is that theperformanceofAfricanLDCswassimilartoLDCsasagroup

Trade as the bedrock of

Africa’s economic prosperity

LDC IV Conference special event of the UN Cluster on Trade and Productive Capacity on “Development of productive capacities and trade: The key to inclusive

and sustainable growth”

Istanbul, Turkey9 May 2011

122 Part Two

Exports from African LDCs to emerging and developing countrieshaveconsiderablyincreasedovertheperiod.AfricanLDCshavealsoincreasedtheirexportstootherAfricancountries,morethanexportsto EuropeanUnion. Intra-Africa exports of African LDCs increasedfive-fold between 2001 and 2008; while to the EU they went upthree-fold,pointingtoimportantcomplementaritiesamongAfricannationswhichcanbeexploitedinthecontextofregionalintegration.

African LDCs trade with developed countries is dominated by ex-portstotheUnitedStateswhichincreasedsix-foldovertheperiodunderreview,largelyduetotheAfricanGrowthandOpportunityAct(AGOA).

ItshouldbenotedneverthelessthatLDCsareyettorealisethefullpotentialoftradeasapillarofdevelopment.LDCshavenotreapedtradeopportunitiesinfullymainlyduetotheirexportcomposition.Mostoftheirtradedgoodsareinthelowerendofthevaluechainandtheyareexportedeitherasrawmaterialsorwithvery limitedvalueaddition.

Thisvulnerabilitywasmadeclearduringtheeconomiccrisiswhenthe trade channel turned out to be one of the main channels through whichAfricaneconomieswerenegativelyaffected.

Thispoints to the fact thatdiversification iscritical forsustainabledevelopment

LDCs in Africa have not been able to build diversified economieswheremanufacturingandservicesmakeasubstantialcontributiontoeconomicactivity.Thesesectorsarecriticalforthegoodmanage-mentofnaturalresourcesandraisinggrowthrates.

Inthisregard,Africa’sIndustrialDevelopmentAgendahasindicatedagro-industry, pharmaceutical and infrastructure sectors as key inpromotingandcatalyzingvalueadditionandstructuraltransforma-tioninthecontinent.

It therefore goes without saying that domestic policies matter asmuchasinternationaltradepolicies

Historyshowsthatnocountryhasbeenabletodevelopwithoutdi-versifyingitseconomyandutilisingtradingopportunitiestothefull-


est.LDCgovernmentsneedtonotonlypursuedomesticpoliciesthatexpand internalmarkets, and also put in place appropriate incen-tivestopromoteexports.Policieswhichcreateabiasagainstexportsshouldbeeliminated,whilepoliciesthatenableaccesstocheaperinputsshouldbeencouraged.ThismeansLDCsshouldadoptmorestrategictradepolicieswhilealsotakingintoaccountthechallengenowposedby climate change to the traditional path of industrialdevelopment.

Ishouldhoweverpointoutthatbyputtinggreateffortsinregionalintegrationprocesses,AfricanLDCsaretakingdomesticpolicyactiontobuildlargerregionalmarketsasplatformsfordiversification.

LDCscontinuetorequirethesupportoftheinternationalcommunityand development partners

AfricanLDCscontinuetoneedpartnershipsintheireffortstodeep-en regional markets, maintain stable macroeconomic conditions,provideaconductivelegalandregulatoryframeworkfor investors,and to undertake targeted investments to improve physical infra-structureandhumancapitalandtocreatejobs.ThesefactorstallywiththerecommendationsintheCEB’sclusterpositionpaper.Suchsupport should also extend to providing improved market access for LDCsincludinginthecontextofAidforTrade.

These issues point to the need for an improved common preference scheme

Withouthelp,LDCswillnotbeabletodevelopviableandgloballycompetitivemanufacturing sectors. They should thereforebe sup-ported through the provision of privileged market access to devel-opedandemergingeconomies,inawaythatwillenabletheirfirmstoparticipateinglobalsupplychains.

Currentschemeshaveseveralshortcomingsincludingdifferenttimespansandcoverage;exclusionofkeyproducts;inflexiblerulesofori-gin;andeligibilitycriteriathathampersregional integration.Whiletheduty-freequota-freemarketaccessschemeforLDCsagreedattheWTOHongKongmeetingin2005havecatalysedtheexpansionofexistingschemesorestablishmentofnewones,itisnotenough.Cre-atingacommonpreferenceschemethatovercomestheconstraintsIjustlistedwouldofferbettersupporttoLDCstradedevelopment.

124 Part Two

Finally, meeting Aid for Trade commitments remains important.HugeinvestmentsarerequiredforLDCstobeabletoimprovetheirtradeandproductivecapacities.Developmentpartnerscouldinthisregardbymeetingtheiraidfortradecommitments.Aregionalap-proachtothedeliveryoftheaidfortradewillalsohelptackletheconstraints limitingtradeandproductionat thenational level,butwillalsohelpenlargeregionalmarketsthatLDCscanexploit.


RegionalintegrationisanecessityforAfricaduetothebenefitsofa larger and more coherent economic space and also because of

thegrowingtrendtowardsregionalisminotherpartsoftheworld.Indeed, Africa has long since realized the importance of regionalintegrationascanbeseenfromthecreationofRegionalEconomicCommunitiesfromasfarbackasthe1970saswellastheadoptionofvariousinstrumentsliketheLagosPlanofAction,theAbujaTreatyestablishingtheAfricanEconomicCommunityandmostrecentlytheConstitutiveActoftheAfricanUnion.

Giventhisbackground,itisparticularlyappropriatethatatameet-ingsuchasthis,wereviewtheprogressthathasbeenmadetowardintegration,share lessonsandexperiences fromotherregionsanddeliberateonkeychallenges facingouraspirations fordeeperandfullerintegration.

TheprogressthathasbeenmadeinregionalintegrationinAfricaisevident from common policies and programmes spanning arrange-ments for trade liberalization, macroeconomic convergence, andmonetaryandfinancialintegration.Itisalsoevidentinthecreationofregionalpowerpools,riverbasincommissions,provisionsforfreemovement of people and commitment to improving governance and ensuringconditionsofpeaceandsecurityinthecontinent.

Reviewing progress in

regional integration in

Africa5th Conference of African

Ministers in Charge of Integration (COMAI V)

8 September 2011Nairobi, Kenya

126 Part Two

Intheareaoftrade,Africa’sMinistersofTradeagreedtofast-trackthe establishment of an African Free Trade Area building on the land-markdecisionofCOMESA,EACandSADCtocometogethertocreateasingleFreeTradeAreaembracing26countries. ThegainsoftheSouthernAfricanPowerPoolareestimatedatover$785mbetween1995and2010.AgreedparametersrangingfromreducinginflationandfiscaldeficitstoloweringexternaldebtarehelpingAfricancoun-tries to achieve and maintain macroeconomic stability and move to greaterconvergence.ThefreemovementofpeopleinECOWAShasbeenonforoverthirtyyearsandhasbeenreplicatedinothersub-regions.Regionalairnetworksarealsonotablybeginningtoemerge.

TheinstitutionalarchitectureofintegrationisbeingharmonizedandconcretizedwithattemptstolimitthenumberofRECswhileensur-ingthattheybuildcollaborativeandcooperativerelationswithotherregionalgroupingswithintheirgeographicalareasofcoverage.Pan-African institutionsof integration covering secretariat, judicial andparliamentaryfunctionshavebeencreatedandalsoexistorarebe-ing replicatedat sub-regional level. Indeed, regional responses tocommon problems have become the norm as can be seen from the IGADresponsetothedroughtintheHornofAfrica.Aboveall,inanefforttobringalltheseactivitiestogetherwithinaclearframework,theAUCandtheRECshavedevelopedandagreedonaMinimumIntegrationProgrammeasacollectivearchitectureforregionalinte-grationinthecontinent.

Inspiteofthesenotableachievements, it isclearthatthereisstillmuchtobedone.Intra-Africatraderemainsabysmallylowatabout10%compared to ratesofup to60% inEuropewhile thepaceofmovementtowardsFTAsremainsuneven.Infrastructuredeficitsre-mainamajorchallengewithlimitedfinancingforregionalprojectswhilefreemovementofpeopleacrossRegionalEconomicCommuni-tiesisbarelyexistent.Imuststresshoweverthatweneednotbedis-couragedbythissituationbecauseAfricaisadevelopingcontinentandintegrationisanon-goingprocess.Nevertheless,wemustlendmomentumtotheprocessbycontinuingtodebateandclarifythenatureof integrationthatwewantwhiledrawingon lessons fromelsewhereandtacklingexistingandemergingchallengeswithclarityofvisionanddeterminationtosucceed.

Asthecrisisintheeurozonehasshown,thereisnoperfectformula


for integrationarrangements. Theheartof theproblem in theEUtodayisthatthepolicyoptionsforindividualmembersoftheeurozonetorespondtonationaldebtcrisisarelimitedbytheirmember-shipofthesinglecurrency.Inotherwords,therearetrade-offsbe-tweenthecommitmenttocommonpoliciesatregionallevelandtheroomforindividualstateaction.

This leadsmeintothethemeofthisconferencewhich is“Integra-tionandSovereignty”.Bydefinition,thereisaninverserelationshipbetweendeeper regional integrationandnational sovereignty. Byentering into collective regional agreements a state is necessarilyceding its right to adopt alternative policies or change track as itdeemsfit.Thereareseveraldimensionsthroughwhichthiscouldbeacauseforconcern.Firstisthatacountrycouldbelockedintopolicyregimesthatitdeemsdetrimentaltoitsoverallinterests.Second,isthat a state may perceive the costs of a regional agreement as being larger than theexpectedbenefits. Thus the commonlyexpressedfearoflossofrevenuearisingfromtradeliberalization.Thirdisthefearthatmoreopenbordersmayunderminenationalandsecurityandfacilitatetransnationalcrime.

Thesearelegitimateconcernsbuttheyalsopointtotheimportanceof regional integration agreements being underpinned by sharedvalues. It isnotpossible tohaveacluborcommunityofanysortwithoutsharedvaluesandAfricamustaccordinglycontinuetoplaceemphasisondeepeningcommitmenttothevaluestowhich ithassubscribed.Theseincludebutarenotlimitedtodemocraticideals,respectforhumanrights,promotionofgenderequality,promotionof cultural and religious tolerance and the building of inclusive and harmonioussocieties.Suchvaluesarethefoundationforpeaceandsecuritywithoutwhichitwillnotbepossibletodeepenregionalin-tegration.

Animportantpointtobearinmindisthattheultimateobjectiveofregional integration is to enableAfrican countries to benefit fromeconomiesofscale, reducetransactionscostsandusetradeasanengine of growth and development. This would require greatertransboundary cooperation, jointprojects andprogrammes for in-vestmentandtradefacilitation,andadoptionofcommonstandardsandcodes. Wemustkeepthesebenefitsinmindwhilefashioningmechanismstoaddressconcernsaboutthepossibleconsequences

128 Part Two

ofthelossofsovereignty.Thereareseveralwaysinwhichthiscanbe done ranging from opt-out clauses, to compensatory mecha-nisms,developmentofproductionnetworksanddecision-makingonaconsensualbasis.Whatshouldbeuppermostinourmindsishowtodevelopandimproveourcollectiveabilitytoreacttounforeseencircumstancesinaninnovativeandflexiblemanner

Attheendoftheday,however,bothintegrationandsovereigntylieinthepoliticalrealm.Thisisinthesensethatanydecisiontodeepenintegrationorwillingnesstocedesomesovereigntyisanexpressionofpoliticalwill.InAfrica,oursharedvaluesandeconomicrealityhaveunderpinnedthepoliticaldecisiontoincreasethepaceandremitofintegration.Ourchallengeisthereforetoseekwaysandmeansofachievingthisobjectivewhileaddressingtherelatedconcernsaboutreducedroomformaneuverforcountryspecificproblems.

Thisiswhereweneedtore-dedicateourselvestotheMIPagenda.Member States need todemonstratepolitical commitment to theMIPandprovidemaximumsupporttoRECsandtheAUCincludinggivingthemtherequiredauthorityandresourcestoimplementre-gionallyagreedprogrammesandprojects.Twocriticalareasrequir-ingattentionrelatetoovercomingcapacityconstraintsandresourcedeficits soas toenable the implementationofexistingand futurecommitmentswithoutwhichwecannotreapthefullbenefitsofre-gionalintegration.Indeed,thetimehascometosecurepredictableandsustainablefundingforournobleregionalintegrationagenda.

PermitmetoconcludebyreiteratingECA’scontinuedcommitmenttosupportingtheeffortsofmemberStatesandregionalinstitutionsto implementAfrica’s regional integrationagenda. IndoingsowewillcontinuetoworkwithpartnerssuchastheAUCandAfDBespe-ciallyonourflagshippublicationonAssessingRegionalIntegrationinAfricaandinusingthecapacitiesavailableintheAfricanTradePolicyCentretomovetheAfricantradeagenda.

Wecontinuetobemotivatedbyourcollectivevisionforastrong,ro-bust,diversifiedandresilientAfricaneconomy,supportedbyjointlyagreeddevelopmentprogrammesandfirst-classtrans-boundaryin-frastructureaswell asahighly skilled,flexibleand fullyemployedworkforcelivinginconditionsofpoliticalstability.


ThisdiscussionistimelyandrelevantasitcomesatatimewhenNEPADiscelebratingits10thanniversary,whilethetargetdate

of2015setforachievingtheMDGsisfastapproachingandconsid-erationisalreadybeinggiventoapossiblepost-MDGdevelopmentagenda.

My remarks today will recall the nexus between NEPAD and theMDGs,examine theachievementsof these twovitaldevelopmentframeworksandhighlightsomeofthevitalworkthathasbeendonebytheUnitedNationstopromotetheirlaudableobjectives.

TheMillenniumDevelopmentGoals (MDGs)andtheNewPartner-shipforAfricanDevelopment(NEPAD)are inextricably linked. TheMDGsaim toachievevitalobjectives inpoverty reduction,educa-tion,health,gender,andenvironmentandserveasareferenceformeasuring development progresswhileNEPAD is at once a visionandstrategicframeworktoincreasethepaceandimpactofAfrica’ssocio-economicdevelopment.TheMDGsandNEPADthushavesim-ilar goals and both rely on partnerships at the global and regional levelsfortheirsuccessful implementation. Indeed,NEPADcanbedescribedastheframeworkforachievingtheMDGsinAfrica.

NEPAD’sprogrammes,projectsandtargetsareaccordinglyconsist-entwithandcloselyalignedtotheachievementoftheMDGs.Forin-

NEPAD’s contributions to

the MDGs

Panel discussion on NEPAD and the MDGs: Progress, Challenges and the

Way Forward

7 October 2011New York

130 Part Two

stance,NEPADhighlightsagricultureandfoodsecurityasoneofkeythematicareasoffocusandhasdesignedtheComprehensiveAfricaAgricultureDevelopmentProgramme(CAADP)whoseaimsarecon-sistentwiththeobjectivesofMDG1toreducepovertyandhunger.

Similarly,theotherMDGsthataimtoachieveuniversalprimaryedu-cation,reducechildmortality,improvematernalhealthandcombatcommunicablediseasesallrelatetodifferentaspectsofhumande-velopment thatareat theheartofNEPAD. It is in this regard thatNEPADhasseveralprogrammesthatspecificallycatertopromotingsuchobjectives,anotableexamplebeingtheConsolidatedPlanofAction (CPA) for Science and Technology intended to provide theknowledgethatwillbackstoptheeducational,healthandenviron-mentalaimsoftheMDGsinAfrica.

Inotherwords,giventheircommonpurposeandmutualityofobjec-tives,successesrecordedontheMDGfrontalsocontributetotheachievementoftheNEPADvisionandviceversa.Tostartwith,mostofuswouldagreethattheMDGshavebeensuccessfulingalvanizingpoliticalsupportforhumandevelopmentinthesenseofinfluencingpolicy discourse and as a basis for measuring progress in achieving consensuallyagreedgoals,targetsandindicators.

Inthisregard,andthroughourjointECA-AUC-ADBandUNDPannualregionalreportonAfrica’sprogresstowardstheMDGs,wehaveseenthatAfrica’sprogresstowardtheMDGshasgenerallybeenpositive,although performance has been mixed across indicators and coun-tries.Wecanpoint,forinstance,tothecontinent’sprogresstowardsuniversalprimaryenrolmentwhichincreasedsignificantlyfrom65%in1999to83%in2009.Similarlythegoalofgenderparityatprimaryschoollevelisontrack,whilewomen’srepresentationinparliamentincreased in over 80 percent of African countries between 1990and2010.AdvancesinstemmingtheHIVandAIDSpandemichavebeensignificantinthemajorityofAfricancountries,bothintermsofpreventingnewinfectionsandinmakingAnti-RetroviralTreatment(ART)morereadilyavailabletoinfectedpeople.

Overall, however, the initial rapidprogress in achieving theMDGswastosomeextentbeensloweddownbytheadverseeffectsoftheinternationalfuel,foodandfinancialcrises.However,theintegrationofMDGsintonationaldevelopmentstrategieshelpedtomitigatethe


negativeimpactofthesecrisesandsuchinstitutionalinnovationalsoprovidedforamoremediumtermapproachtodevelopment.

Therehavebeenotherchallengesaswell. For instance, theposi-tivegrowthinAfricasincetheturnofthenewMillenniumhasnotresulted in job creation just as domestic resourceshavenot beensufficientlymobilized for the implementation of programmes andprojectstostempoverty.Similarly,aidflowsfromdevelopmentpart-nersinsupportoftheMDGswhilesubstantiallyupscaledremainwellshortofcommitmentsmade.

Thesechallengesdopointtowardsmoresystemicissueswhichneedtobeaddressedintherun-upto2015andthisiswherethelessonslearnt fromthe implementationofNEPADover thepast tenyearswillcomeinuseful.TheextentofinternationalsupporttosuccessfulNEPADprogrammessuchasgovernance,agricultureandinfrastruc-turesuchastheAfricanPeerReviewMechnism(APRM),CAADPandtheProgrammefor Infrastructure inAfrica (PIDA)showsthatpart-nershipsremainskeyintheAfricandevelopmentlandscape.

Similarly,NEPADhasplayedanimportantroleinpromotingregionalintegrationbypopularizingaregionalandsub-regionalapproachtoprogrammingandprojectimplementation.Throughitsmajorcon-tinentalframeworksandacrossawiderangeofsectors,NEPADhascreatedanapproachwhereinprojectshavebeenprioritizedbasedontheirreadinessforimplementationanddegreeofcontributiontoregionalintegration.

Inthesamecontext,NEPADhascontributedtoimprovedcoherenceinthevariousmechanismsandarrangementsbywhichdevelopmentpartnersprovidesupporttotheAfricancontinent.InthecaseoftheUnitedNations,theGeneralAssemblyinitsResolution57/7calledforUNsystemorganisationstoaligntheiractivitiesinAfricawiththeprioritiesofNEPAD,andurged thescalingupof resources for thispurpose.

Notwithstandingthesenotableachievements,significantchallengesremain. For instance, themomentumof international support forAfrica isnot yet strongenough tobe irreversible, and thereareanumberofareasinwhichpolicymeasuresandpracticalactionsareneededtolendimpetustotheimplementationofNEPAD.Onevital

132 Part Two

areaistheroleoftheprivatesectorintheimplementationofNEPAD,wheremoreneedstobedonetostrengthenpublic-privatepartner-ships–includingindeliveringpublicgoodstoachievetheMDGs,andthebuildingofinfrastructure.

Such issuespoint to theneed fornew thinkingon the roleof theStateandother institutions inAfricawhichwaswhythe2011AU/ECAConferenceofMinistersofFinance,PlanningandEconomyandtheaccompanyingEconomicReportonAfricawasdevotedto‘Gov-erningDevelopmentinAfrica’.WehavealsoundertakenknowledgeactivitiestosupportAfricanprioritiesinregionalintegration,trade,food security, climate change, infrastructure, gender, science andtechnologyandgovernancetomentionbutafewareasofworkper-tinenttotheNEPADagenda.

Atamoreoperationallevel,UNsupporttotheNEPADagendaiscoor-dinatedundertheauspicesoftheRegionalCoordinationMechanismforAfrica. RCM-Africaprovides a forum forbringingUNagenciestogetherononesidetointeractandengageasonewiththeAfricanUnion, theNEPAD Planning and Coordinating Agency and the Re-gionalEconomicCommunities.Itisnowthemainmechanismforco-ordinatingUNsystemsupporttoNEPADandhasachievedenhancedinteragency coherence and coordinationwhile promoting broadercooperationthroughjointactivitiesandprogrammes.RCM-AfricaisorganizedaroundninethematicclustersthatreflecttheobjectivesandpriorityworkareasofAU/NEPADandECAservesasconvenerandprovidesthesecretariatoftheRCMontheUNside.

There is general agreement about the importance of improving Af-ricancapacities to implementprogrammessuchas theMDGsandNEPADandthisiswhyinNovember2006,theSecretaryGeneraloftheUNandtheChairpersonoftheAfricanUnionCommissionsignedaFrameworkAgreementfortheUNTen-YearCapacity-BuildingPro-grammefortheAfricanUnionwhichwiththefullintegrationofNE-PADintotheAfricanUnionisnowextendedtotheNPCAalongwithotherAUorgansandtheRegionalEconomicCommunities.Theim-plementationoftheTenYearCapacityBuildingPlan isalsocoordi-natedthroughtheRCM.

From an ECA specific dimension, our partnershipwith theNEPADAgency is guided by a Memorandum of Understanding between


thetwoinstitutions,whichisnowbackstoppedbyaMultiyearPro-grammeoutliningECAsupporttoNEPAD. Our intentiongoingfor-wardistomoveNEPADfromitsinitialandsuccessfulphaseoftrans-forming visions, philosophies, and principles into implementableprogrammestooneofimplementingconcreteregionalprojects.

Inconclusion,IwillliketounderscoretheimportanceofmaintainingandsupportingAfrica’seffortstobringcoherencetopolicymakingandpartnershipswithin the continent. This is important to avoidduplicationofeffortanddissipationofscarceresourcesaswestrivetoachievetheMDGsandsuccessfullyimplementtheNEPADagenda.policycoherenceandcoordinationofouractionsinsupportofNE-PADandtheMDGs.Evenaswebegintoreflectonthedevelopmentagendapost-2015,theUNmustremaincloselyengagedwiththeAUandNPCAtoensurethatthestrategicvisionandobjectivesofNEPADarefactoredintodeliberationsandeventualoutcomes.

LetmeendbycommendingDr.IbrahimMayakiforhisableandvi-sionary leadership of the NEPAD Agency and by assuring you all of ECA’scontinuedstrongcommitmenttosupportingAfrica’sregional,sub-regional andnational efforts to achieve theMDGsand imple-menttheNEPADagendafortheultimatepurposeofbuildingavi-brant,progressiveandintegratedAfrica.

ONPARTNERSHIPS

Part Three


IfthereisonesubjectthatMr.Jannehhasbeenpassionateaboutduring his tenure as Executive Secretary, it is partnerships. The

sourceofthisenthusiasmisnotdifficulttolocate:priortobeingap-pointedtoheadtheEconomicCommissionforAfrica(ECA),hehadspentmanyyearsat theUnitedNationsDevelopmentProgramme(UNDP). Inthatrole,heworkedcloselywithAfricancountriesandtheAfricanUnionCommissioninsupportofthecontinent’sdevelop-mentagenda,andsawfirst-hand,theunqualifiedvalueofcollabora-tion.

“Thatexperience,”hetoldthe8thOrdinarySessionoftheExecutiveCounciloftheAfricanUnioninJanuary2006,shortlyaftertakinguphisnewposition,“confirmed inmetheconvictionthatstrongandclearleadershipinAfricaiscriticaltobuildingeffectivepartnershipsforaddressingAfrica’sdevelopmentpriorities.”

Mr.Jannehexpressedhisintentionatthattimetobuildonthatback-groundduringhis tenureatECA inordertobringtheCommissionandtheAfricanUnionintocloserpartnership.Asthestatementsinthissegmentdemonstrate,thatvisionhas influencedhisapproachtohisassignmentsincethen.HeholdstheviewthatECAcanonlybeatitsmosteffectiveinitstaskofdeliveringtechnicalsupporttoAfri-cannationsifitsprogrammesareinfullharmonywithAfricanpriori-tiesaswellastheworkfabricoftheAUCommission.Headvanced

Introduction

138 Part Three

hishopeforaseamlesspartnershipbuildingonthecomparativead-vantagesofeachpartnerwhileavoidingduplicationandoverlap.

Acriticaldimensioninhispartnershipvision includestrilateralcol-laborationwith theAfricanDevelopmentBank (AfDB)as the thirdcontinentalorganisationinaschemainwhichAUisresponsibleforthepoliticalleadership,whileECAprovidesthetechnicalneeds.

HisbroadervisionofproductiveandnecessarypartnershipsforAf-ricaincludesactiveECApartnershipswithUNagencies.Whilethosepartnershipshaveexistedfora longtime,hebelievesthatthereisopportunityfordeepeningtheirscopeandimpact,andtheyarecru-cial to facilitating an exchangeof views and strategic engagementwithallpartners.Furthermore,heisconvincedthattheyarehelpfulinidentifyingpotentialareasofcooperation,aswellasprioritiesandmodalitiesforjointdeliveryofservices.

OneofthekeyconcernsofECA isassistancetofragilestates. Mr.Janneh’s conviction is thatwhile partnerships are highly desirableinthequestforgoodgovernanceandpeaceandsecurityinAfrica,hecautionsthat in theprovisionofsuchassistance,onesizedoesnotfitall.“Althoughmanyofthecharacteristicsoffragilestatesaresimilar,”hesaidinanaddressin2007,“thecausesmaybecontextspecificandthusapproachestoaddressingthechallengesandop-portunitiesmustbecontextspecificaswell.”

TheCommission’scommitmenttopartnershipsisevidentinthere-positioningplan.Init,ECAdescribesbuildingpartnershipsasanim-portantpartofitsworkascontinentalinstitutionsanddevelopmentpartnersworkingforAfricaorinpursuitofitsinterestshavetocol-laboratetoharnessrequiredresources,ensurecoherenceandavoidduplicationintheiractivities.

Inthe interventions included inthissegment,theExecutiveSecre-tarycontinuestospreadthisimportantmessage.


I also ampleased that this opportunity has arisen so soonafter IhaveassumedofficeasExecutiveSecretaryoftheEconomicCom-

missionforAfrica(ECA).Iwishtotakethisopportunitytothankeachoneofyouandyourrespectivegovernments,fortheencouragementandsupportyouhaveexpressedtomesincemyappointment.Ihavecome toECA fromtheUnitedNationsDevelopmentProgrammme(UNDP)–asisterUnitedNationsinstitutionthatisakeyandcommit-tedpartnertoAfrica.WhileatUNDPIwasprivilegedtoworkcloselywithAfricancountriesinsupportoftheirdevelopmentagendaasIdidwiththeAfricanUnionCommission,particularlywiththeChair-personandCommissioners,insupportingcapacitybuildingforinsti-tutionaltransformationaswellastheAUPeaceandSecurityAgenda.ThroughthiscollaborationandwiththeleadershipoftheCommis-sion,wewereabletobuildastrongpartnershipinsupportofAfrica’sdevelopmentinitiatives.Thatexperienceconfirmedinmethecon-victionthatstrongandclearleadershipinAfricaiscriticaltobuildingeffectivepartnershipsforaddressingAfrica’sdevelopmentpriorities.ItismyintentiontobuildonthisbroadandpositiveexperienceandtobringECAandAUintocloserpartnershipandupscalecollabora-tionbetweenthetwoorganisations.Thisrenewedpartnershipwilltake full advantage of the favourable factors of our shared vision and mandate,aswellasourco-locationinAddisAbaba,toeffectivelyac-companyAfricaasitstrivestoachievedevelopment.

Forging a seamless

partnership with the

African Union

Statement at the Eighth Ordinary Session of the Executive Council

of the African Union

Khartoum, Sudan 20 January 2006

140 Part Three

Whatdoesthismeaninpracticalterms?Allowmetobrieflysharewithyoumyreflectionson this collaborationbeforemovingon topresentsomeperspectivesontheagendaforthisSummit.

IessentiallyseetheprimaryroleofECAasbeingoneofprovidingtechnicalsupporttoMemberStatesintheirdevelopmenteffortsei-therdirectlyorthroughtheAfricanUnion.ForECAtodosoeffec-tively,IstronglybelievethatitsprogrammesmustbeinfullharmonywiththeAfricanprioritiesandseamlesslywovenintotheworkfabricoftheAUCommission.AUCommissionandECAmustthereforebeprepared to think,planandworkclosely in supportofAfrica. It isthroughthisseamlesspartnershipthatIseeopportunitiesformax-imisingsynergiesinherentinourcomparativeadvantagesandavoid-ingduplicationandoverlapinawaythatwillpermitthetwoinstitu-tionstodelivereffectivesupportandservicetoAfrica.

Furthermore,giventheimmensechallengesfacedbythecontinentandtheboldregionalresponsetomeetingthemexpressedthroughtheAUStrategicPlanandNewPartnershipforAfrica’sDevelopment(NEPAD),IbelieveitisofutmostimportanceforAU,ECA,andADBtosignificantlyupscaletheirtrilateralpartnership.

InNovember last year, I had the privilege of addressing your col-leagues,theAfricanFinanceMinisters,atameetingorganisedbythe[Presidentof]theAfricanDevelopmentBank.Apartfromthekeyis-suesoftrade,debt,andoilthatwerediscussed,wealsotooktheop-portunitytolookaheadatourcollaborationandhowwecanprovideeffectivetechnicalsupporttoAUwithinthecontextofthetrilateralframeworkofcooperation.

Extensive discussionswere also heldwith the AU Chairperson onhowbestwecanoptimiseourpersonalandinstitutionalpartnershipinordertoserveAfricabetterandaseffectivelyaspossible.Iamgladtonotethatthethreeofushaveastrongconvergenceofviewsonhowthiscanbedone.Akeyaspectofthiswillbethroughtherevi-talisationofthejointAU-ADB-ECAsecretariatundertheleadershipof theAUCommission, aswell as through theharmonisation andrationalisationoftheADBandECAmeetings.

Another important issue at the forefront of our agenda is the forging ofeffectivecoordinationandpartnershipswithintheUNsystemto


servethiscontinent.ECAhasawell-establishedhistoryofcollabora-tionwithUNagenciesandotherAfricanregionalandsub-regionalorganisations.However,Ibelievethatthereismuchroomtodeepenthescopeandimpactofthiscollaboration.Itismyintentiontotakeacloserlookattheeffectivenessandefficiencyoftheexistingmecha-nisms,suchashowweworktogether,coordinateandharmoniseourefforts to avoidwasteful duplication and strengthen our develop-mentimpactinAfrica,workinginclosecollaborationwiththeAfri-canUnionandAfricanDevelopmentBank.

2005wasayear inwhich significantattentionwas focusedonAf-rica’sdevelopmentneedsandinwhichcommitmentstoupscaleef-fortsweremadebothbyregional leadersandbyour internationalpartners.TheDebtInitiative,theCommissiononAfricaReportandUNWorld Summit, among others, were part of the sustained ef-fort to place Africa’s development challenge foremost on the global agenda.While thesehave yielded some initial results, particularlywith regard to thedebtquestion,muchmoreremains tobedonetotackleAfrica’sdevelopmentchallengesinafundamentalway.Wenowmust strive toensure that themomentumgeneratedby thatattentionisnotallowedtodissipateandthatconcreteresultsaccruefromit.

Itisimportantfortheinternationalcommunitytoliveuptoitscom-mitments in aid delivery and ensure the predictability of resources forAfricancountries.Inthiscontext,Iwouldliketonotetheimpor-tantjointworkcarriedoutbyECAandtheOrganizationforEconomicCooperation and Development (OECD) on Mutual AccountabilityandDevelopmentEffectiveness inAfrica,aimedatmonitoringandcatalysingimplementationofvariouscommitmentsmadebydevel-opmentpartners toAfrica, and the commitments thatweasAfri-canshavemadetoourcontinentandtoourpeople.Thereisastronginterest in operationalising this concept of mutual accountability,especially in theaftermathof theG8Gleneagles Summit. It ismyhopethatsomerecommendationswouldemergeonhowwecarrythisagendaforward.Withoutadoubt,theseamlessrelationshipbe-tweenAU-ADB-ECAiscriticalinthisareaaswell.

Atthesametime,aswedemandthecommitmentofourpartners,wemustacknowledgethatwealsoneedtoworkharderonthekeyissuesofgovernanceandpeaceandsecuritythatcontinuetocon-

142 Part Three

straindevelopmenteffectiveness.Africahasmadeappreciablepro-gress inthisareaandtheAfricanPeerReviewMechanism(APRM)isaneloquenttestimonytoAfrica’scommitmenttostrengthenandimprovegovernance.ECA ishonoured tobea strategicpartner intheimplementationofthemechanismandwillcontinuetorenderitscontributioninthisregard.

Letmeturnnowtotrade,anotherareainwhichtherewasparticularfocusandwhereAfrica’sconcernsresonatedintheglobalarena.Al-thoughtheDohaRoundnegotiationsdidnotgoaswellasexpected,somemodestgainsweremade.ThechallengewillbetosecurethosegainsandbuildonthemasAfricaseeksitsrightfulshareoftradeandlevelingoftheplayingfield.Letme inthisregardacknowledgethesolidworkthattheAUCommissionhasdoneinfacilitatingthebuild-ingofcommonpositionsbyAfricancountriesinglobal,regionalandbilateralnegotiations.Ibelievethatwithcontinuedcapacitysupportfrom ECA, ADB andUNDP, AU’s role as the coordinator of Africa’spositions on trade issues inmultilateral trade negotiations will bestrengthened.

The main features of interest to Africa of the consensus that emerged fromHongKongrelatetothefollowing:

Onagriculture,anagreementwasreachedtoendfarmsubsidiesbytheendof2013,insteadofby2010,asproposedbyAfricancountries.Oncotton, itwasagreedthattherewillbeanendtoexportsubsi-diesby2006andthat therewillbedutyandquota freeaccess forcottonexportsfromleastdevelopedcountries(LDCs)intodevelopedcountrymarketsasfromthebeginningoftheimplementationperiodfor theDohaagreements.However,ondomestic support,which isthemostimportantissueinthecottondebate,therewasnospecificcommitment.Clearly,themodalitiesphaseofthenegotiationswillbecriticalindeterminingwhogainsorlosesfromtheDohaagreements.It is therefore important for African countries to be prepared to make theirconcernsknownandtoprotecttheirnationalinterests.

Trade ispivotal toeconomicgrowthanddevelopment. It thereforemust be given the utmost priority and should be mainstreamed acrossgovernmentactivity.


Atthe2005WorldSummitontheInformationSocietyinTunis,therewasstrongconsensusontheneedtoacceleratethepaceofbuild-ingtheglobalinformationsociety,basedonlocal,national,regionalandinternationalactivities.Inthatregard,ECAwillbeworkingcloselywithAUontheAfricanRegionalActionPlanontheKnowledgeEcon-omy,whichwasjointlylaunchedinTunis.

I am also pleased to note that the Tunis Summit demonstrated Mem-berStates’appreciationforECA’ssupportinbuildinganinformationsociety in Africa based on its strong partnerships both inside and out-sideAfrica.Itisclearthatyourministerialcolleaguesinchargeofthisportfolionowconstitute a strongadvocacy group to champion ICTissuesintheirrespectivecountriesaswellascollectivelyontheconti-nent.Thisismostsignificantas2006isgoingtobeanimportantyearforimplementingournationalandregionalinformationandcommu-nicationtechnology(ICT)actionplans.

TheTunismeetingservesasaninstructivebackgroundtothethemeofthissummitgiventhecentralroleofinformationandICTinedu-cationandculture.Theroleofeducationandtraininginthepromo-tionofeconomic,socialandpoliticaldevelopmentcannotbeover-emphasised. They play a crucial role in achieving higher economicgrowthbyproviding theeconomywith the required skilledhumanresources.Educationandtrainingalsocontributetothehealthofna-tions,culturaldevelopment,democraticvalues,politicalstabilityandnationbuilding.

Thisiswhythereisastrongcorrelationbetweenthestandardofedu-cationandtrainingandthelevelofeconomicandsocialdevelopment.Indeed,evidencefromaroundtheglobeshowsthatinvestmentinhu-mancapitalthroughhighlevelsofeducation,especiallyforwomen,stimulatesgrowthandhastremendousspillovereffects.

Therearehugechallengesatall levelsofeducationandtraining inAfricaintermsofaccess,quality,relevanceandequity.Althoughen-rolmentatalllevelsofeducationinsub-SaharanAfricahasimprovedsince independence, it is still very low.Pupil/teacher ratioand thenumberofuntrainedteachershaverisen,whilethenumberoftext-booksperpupilandlaboratoryequipmenthasdeclined.Thequalityofeducationinhigherinstitutesoflearninghasalsodeclinedduetoanumberoffactors,suchasinadequatetextbooksandjournals,poor

144 Part Three

libraries,poorlyequippedlaboratories,braindrain,andlowmoraleofteachingstaff.Thereisalsoagrowingobsolescenceoftheoutdatedcurriculumcontent inrelationtotheadvancingstateofknowledgeandtherealisticneedsofstudents.Inequitiesineducationintermsofaccess,quality,genderdisparities,rural,urban,andinsomecasesethnicdistributionarealsohighinmanyAfricancountries.

ManyfactorsunderliethechallengesofeducationinAfrica.Thesein-cludedecliningresourcesallocatedtoeducationagainstrisingdemand.Althoughgovernmentsrecognisetheneedtoinvestineducation,andtrainingandahostofpoliciesgearedtowardspromotingfreeprimaryeducationandsupportingtertiaryandhigher-leveleducationexist,inviewofhighlycompetingdemandsonlimitedanddeclininglevelsofgovernments’budgetaryresources,investmentsintheeducationandothersocialsectorshavenotbeenasencouragingasexpected.

Educationalsogoeshandinhandwithculture.Humansocietiesaregovernedbysetsofrules,valuesandprinciplesthatdefinetheircul-tureand civilisation. Such rules, valuesandprinciples arebasedontradition,language,waysoflifeandthought.Theyareindeedbasedonasetofculturalvaluesthatreflectthedistinctivecharacterandper-sonalityofthesociety.Cultureisthereforeoneofthemostintegratingfactorsinasociety.Indeed,accordingtotheOAUCulturalCharterforAfricaadoptedin1976,theunityofAfricaisfoundedfirstandfore-mostonitshistory.TheCharterencapsulatesthevalueofcultureinAfricansocietyandaims,amongotherthings,torehabilitate,restore,preserveandpromoteAfricanculturalheritage.Thesevaluesareasvalidtodayastheywerein1976.

It is encouraging to observe effortsmade in the context of Africa’sregional integration topromotecultural cooperationamongAfricancountries,not leastthroughtheformulationofprotocolsoncultureandsports.ManyofourregionaleconomiccommunitiesforinstanceemphasisethepromotionofcultureasstipulatedintheAfricanChar-terandtheTreaty,establishingtheAfricanEconomicCommunity.

But the real challenge is to make culture one of the centerpieces of Africa’sdevelopmentagendaatthenationallevel.

Inthatregard,Africangovernments,throughoptimaleducationpoli-cies, can raise the levels of education and increase human capital,


creatingaviciouscyclethatenablestheeconomytoincreaseitsca-pacitytoproduceandcreatewealth,takingintoaccountlocalhumanresourcesandknowledgeandculturalendowment.

ThelinkageofeducationandcultureisalsocrucialwhenwediscusstheHIV/AIDSpandemic-themostseriousconstrainttoAfrica’sdevel-opmentefforts -andthequesttoachievetheMillenniumDevelop-mentGoals.ThechallengeofHIV/AIDSloomslargeoverAfrica’slim-itedperformanceinattainingtheMDGs,illustratingthatallGoalsarelinkedandmustbeachievedasapackage.

Undoubtedlyweall,asleaders,needtodomoretoturnbackthetide.Inthatregard,Iampleasedtonotethatthetablingofthe“ProgressReportonAidsWatchAfrica(AWA)atthisweek’sSummitofHeadsofStates and Government provides another good opportunity for Africa’s leaders,atthehighestpoliticallevel,toreviewthestateofourbattleagainstthepandemicandproposeoptionsforsteppingupthefight.

ThisiswhyECAisgladtobeassociatedwiththeGaboroneDeclarationonscalingupuniversalaccess–totreatment,preventionandimpactmitigation.WearehappytocollaboratewithAU,UNDP,UNAIDS,theDepartmentforInternationalDevelopment(DFID)andotherpartnersaswebegintobuildregionalconsensusaroundthisimportantissue.

Weknowthatoursub-regionalmechanismsand longstandingworkwiththeregionaleconomiccommunitieswillbeusefulasweembarkonthefoursub-regionalconsultationswhichwemustholdbyMarch2006tohelpusidentifythebottleneckstouniversalaccess.

Toconclude, Iwould liketobrieflyhighlightsomeofthechallengeswecontinuetofaceinadvancingtheregionalintegrationagenda.Re-gionalintegrationandthecreationoftheAfricancommonmarkethasbeen the vision of African leaders since the early years of independ-ence.Therationaleforthisisclear:acommonmarketcombiningAf-rica’s53mostlysmallandfragmentedeconomieswillleadtoecono-miesofscalethatmakecountriescompetitive.

Goodprogressinmanyareasofregionalcooperationhasbeenmade,butmuchremainstobedone.MovingforwardonAfrica’sintegrationagendawillthereforerequiresustainedeffort.Oneimportantareaistheharmonisationandempowermentof theRECs.Multiple,poorlycoordinatedandpoorlysupportedRECswillnotbesolidenoughbuild-

146 Part Three

ingblocstocreatetheAfricanUnionthatweenvisage.TheneedforharmonisingtheRECsisthereforetimelysothatAUcanbeendowedwithstronginstitutionalblocsforthecontinentalintegrationprocess.To thisend, the combined technical effortsofECAandAU towardsimplementingthisharmonisationagendaarenoteworthy.


TheformationofactivepartnershipswiththeAfricanUnion,Afri-canDevelopmentBank,UNDPandotherUNagenciesaswellas

bilateralpartnersiscentraltoourvisionatECAforsharpeningthefocusofouractivitiesandimprovingservicedeliverytoourMemberStates.Inmyview,suchrelationshipsshouldfacilitateanexchangeof viewsanda strategicengagementwithourpartnersacross theboard.Itshouldalsoassistusinidentifyingpotentialareasofcoop-erationaswellasprioritiesandmodalitiesforthejointdeliveryofservicestoourclients.

It is against this background that this Partnership Roundtable of the AfricanTradePolicyCentrehasbeenarranged.TheCentrewassetupwithintheTradeandRegionalIntegrationDivisionofECAin2003withthefinancialsupportoftheCanadianGovernmentthroughtheCanadaFundforAfrica.ThemainobjectiveofATPCistoassistAf-ricancountries in formulatingand implementingsound tradepoli-ciesandenablethemtoparticipatemoreeffectivelyininternationaltradenegotiations.

Trade is an important issue for African countries because it is gener-allyacknowledgedtobeanengineofgrowth.Itcanhelpgenerateinvestment andprovide access to intermediate and capital goods,foreigntechnologyandessentialmedicines.Ithasalsobecomemoreimportant for African countries because it is an important means by

Partnership around the

African Trade Policy Centre

13 April 2006 Addis Ababa

148 Part Three

whichtheycanrespondtotheopportunitiesofglobalisationorareexposedtotherisks. Ofcourse,tradeisnotanendin itselfbutameans of reducing poverty, promoting growth and enablingmoreparticipationbywomenineconomicactivity.Theimperativethere-fore is to ensure that trade contributes to human development in ameaningfulway,which iswhyworld leaders re-affirmed the im-portanceoffullyintegratingAfricancountriesintotheinternationaltrading system, including through targeted trade capacity buildingprogrammesinthe2005WorldSummitOutcome.

Sinceitsestablishment,ATPChasmadesubstantialandvaluablecon-tributionstosupportAfricancountriesintheareaoftradebutthereisstillalottobedone.Africancountriescontinuetofacenumerouschallengesinthisarea.Apartfromtheongoingneedforgreaterinte-grationoftradeintonationaldevelopmentstrategies,itremainsim-portanttocontinuouslyupgradethecapacityofAfricancountriestonegotiatetradeagreements.Theseagreementsarebecomingmoredifficulttomanagebecausetheyareincreasinginnumberandcoverawiderrangeofissues.Forinstance,inadditiontothenumerousissuesinthenegotiationsattheWorldTradeOrganization,mostAf-rican countries have to service an increasing number of regional and bilateral tradeagreements, includingEconomicPartnershipAgree-mentswiththeEuropeanUnion.Atthesametime,inadditiontoin-creasinglycomplexnegotiationsinmerchandisetrade,negotiationsnowoftenencompass issues suchas trade in services, intellectualpropertyissues,tradefacilitation,andtradeandtheenvironment.

This Roundtable therefore provides an opportunity to exchange viewson thesemultifarious challenges, including the technical as-sistanceneedsofAfricancountriesintheareaoftrade.ItisalsoagoodoccasiontoshareinformationabouttheactivitiesoftheATPCanddeliberateonwaysandmeansofstrengtheningittomeetfuturechallenges.GiventheincreasingdemandsfortradepolicysupportandcapacitybuildinginourMemberStates,wehopetousethisoc-casion tobroaden the supportbaseof theCentre so thatwe candeepenandexpanditsactivitiesandenableittocontinuetodeliveritsservicesinarapidandflexiblemanner.


ECAhopesthatthisPartnershipRoundtablewillcontributeideasonhowATPCcanbuildon itsexistingactivities, includingsuggestionsonhowtoshapeitsfuturework.AconcreteoutcomewouldincludeindicationsofsupporttotheCentreintermsofendowingitwiththeresourcesitneedstocontinuetoprovidevitalsupporttoECAMem-berStatesinthecrucialareaoftrade.

150 Part Three

ThisisthesecondintheseriesofjointannualmeetingsorganisedbytheAfricanUnionCommissionandEconomicCommissionfor

Africa. It further demonstrates the growing partnership betweenthetwoinstitutionsandunderscoresoursharedvisionofgreaterco-herenceandcoordinationofactivitiesinsupportofAfricandevelop-ment.OurfirstJointMeetinghadspecialsignificanceasittookplaceagainstthebackgroundofECA’s50thanniversary.

ThecelebrationofourGoldenJubileewasinsomewayaffectedbythedeterioratingeconomicoutlookforAfricaafterseveralyearsofpositiveandencouraginggrowth.Theglobaleconomicandfinancialcrisisbegan justas itseemedthattheworstwasoverwithregardtothefoodandfuelcrisis.Aftergrowingatanaverageofnearly6%overtheprecedinghalfdecade,thegrowthrateofthecontinentisexpectedtodeclinebyuptofourpercentagepointsthisyear.

Exportearningsaresimilarlyexpectedtodeclinebyupto$251bil-lionin2009and$277billionin2010forthecontinentasawhole,whileforecastsshowthatremittancesandprivatecapitalflowsintosub-SaharanAfricawillfallbybetweenonetotwobilliondollarsin2009. Trade finance, foreign direct investment and other capitalflowsarealsoexpectedtocontinuetodeclinethisyear.

Getting ready for emerging challenges

Statement to the Joint AU/ECA Conference of Ministers of

Finance, Planning and Economic Development

Twenty-eighth Meeting of the Committee of Experts

Cairo, Egypt 2 June 2009


Thedryingupof these important sourcesofdevelopmentfinancehas implications forachieving theMDGs inAfricaas itwill impactnegativelyonfundingofhealth,education,infrastructureandnutri-tionprogrammeswithseriousconsequencesforpovertyreductionefforts.Thecrisiswillalsocompoundunemploymentwiththenum-berofjoblesslikelytoincreasebythreemillionin2009.Thesocialimpactofthecrisiswillbeparticularlyhardfeltinthiscontinentbe-causewehavefewmechanismsinplacetocushionitseffectsonor-dinarypeople,suchasunemploymentbenefitsorsocialsafetynets.

Our response to the crisis should not however beoneof despair.Rather,wemusttakethesituationasanopportunityformeaning-fulchangeindomesticpolicyformulation,ineconomicandgovern-anceinstitutions,inthepaceofregionalintegrationaswellasintheframeworkofinternationaleconomic,financialandtradingarrange-mentsthatcanfacilitateandspurAfrica’seconomicgrowthandde-velopment.

Thisisthereasoningbehindthechoiceofthemeforthismeeting–“EnhancingtheEffectivenessofFiscalPolicyforDomesticResourceMobilization”. AsAfrica grappleswith the fall-outof thefinancialcrisis,itisimperativethatweexplorepolicyoptionstomakeupforexpected short-fall in development finance. While itmust be ac-knowledgedthatotherformsoffinanceremaincriticallyimportant,Africamustlooktothepolicyoptionsavailabletoittoincreasetheresourcesthatmustperforceunderpinitsdevelopment.Ithereforeexpect that thismeetingofExpertswill take full advantageof theopportunitythatthismeetingprovidestoexaminethematterinrig-orousdetail.

Thequalityofgovernanceissimilarlyimportantbecauseitisadeter-minantofeconomicperformance,particularlyincrisisconditions.Itisessentialtoremainalerttothedangersofsocialunrestasexperi-ence teaches that economic hardship and the scramble for increas-inglyscarceresourcesmayunderminerecentandhardwonpeaceandsecuritygains.Moreover,Africanstatesrequirecapacitytoman-agetheireconomiesbothwhentheyaregrowingandalsowhentheyarefacingcrisis.Anintegralpartofourresponsetothecrisisshouldtherefore be to strengthen human and institutional capacities, in-cludingbydrawingontherecordofexperiencesandbestpracticesbeinggarneredthroughtheAfricanPeerReviewMechanism.

152 Part Three

Africamustexplorewaysandmeansofacceleratingthepaceofregionalintegrationsothatitcanhaveastrongandcrediblevoiceinvariousinter-nationalprocessesrelatingtoreformoftheinternationalfinancialarchi-tecture,tacklingclimatechangeandimprovingtradeopportunities.Sim-ilarly,transboundarycooperationmustbefurtherprioritisedinregionalintegrationefforts.Keyinthisregardisourtransportinfrastructure,suchasroads,rail,air,andportservicesthatneedtobebuilt,rehabilitatedorexpanded.Moreover,Africaneedscommonenergyprojects, includingelectricitygridsandoilandgaspipelinesthatwillfacilitatecross-bordersuppliesandtherebyenhancethesecurityandreliabilityofenergy.

AsthecommuniquéissuedbytheG20SummitinLondoninAprilstates,‘aglobalcrisisrequiresaglobalsolution’.SuchasolutionneedstobeunderpinnedbyeffectiveandfairglobalarrangementsthattakecareoftheinterestsofAfricancountries.ItisworthpointingoutthatseveraloftheissuesraisedbyAfricainthepreparatoryprocesswereaddressedbytheG20leaders,includingallocationofnewSpecialDrawingRights,goldsales,financingofcounter-cyclicalspending,reviewofthedebtsus-tainabilityframeworkandtheprovisionofmorecapitalforMultilateralDevelopmentBanks.Ourchallengenowistoensuretherealisationoftheseandpriorcommitments, includingofofficialdevelopmentassis-tance(ODA).Thismeetingprovidesuswiththerightplatformtobegintoassessprogressthathasbeenmadethusfar.

Theglobaleconomicandfinancial crisis isnot theonlypressingchal-lengethatthiscontinenthastocontendwith.Climatechangealsoposesserious problems for sustainable economic and social development in Africaandequallydemandsurgentaction.Incompliancewiththede-cisionreachedbytheAUSummitinJanuary2009,andbecauseoftheimportanceoftheissuesatstake,itisimperativethatAfricaspeakswithacollectivevoiceonthekeyissuesofmitigation,adaptation,technology,capacitybuilding,andfinancingatConferenceofPartiestakingplaceinCopenhagenattheendofthisyear.

ECA has been working closely with partners on this issue, especiallywithintheambitoftheAU/AfDB/ECAClimateforDevelopmentinAfrica(Clim-DevAfrica)programme.TheAfricanClimatePolicyCentre–whichisthepolicyarmofClim-DevAfrica–issettosupportMemberStatesinthiskeyarea.WehavealsoworkedcloselywithMemberStatesintworecentmeetingsthatwillinputintoacommonAfricanpositionforCo-penhagen.TheseweretheThirdAfricanMinisterialMeetingonFinanc-


ingforDevelopment,whichfocusedonclimatechangeandtookplaceinKigali,andtheSpecialSessionoftheAfricanMinisterialConferenceontheEnvironment,whichtookplaceinNairobi.

ECAhascontinuedtomakesteadyprogressintheimplementationof its work programme for the biennium 2008-2009. Across theboard from economic policy analysis to gender and social develop-ment,statistics,informationandcommunicationtechnologies,gov-ernance,agricultureandfoodsecurity,ECAhasrecordedsignificantachievements,includingthroughthepublicationofknowledgeprod-ucts,consensusbuildingandtechnicaladvisoryservices.Notableinthiscontextisthe2009EconomicReportonAfrica,jointlypublishedbyAUCandECA,andtheMutualReviewofDevelopmentEffective-ness,producedbyECAandOECD.

TheSixthAfricanDevelopmentForum(ADFVI)tookplaceinAddisAbabainNovember2008underthetheme“ActiononGenderEqual-ity,Women’sEmpowermentandEndingViolenceagainstWomen.”TheConsensusStatementadoptedattheendoftheforumidenti-fiedseveralkeyareasrequiringimmediateaction,includingfinanceforgenderequalityandwomen’sempowerment.AnotherkeyeventthatunderscoresthecommitmentoftheUnitedNationssystemtosupport Africa’s development efforts is the Regional CoordinationMechanism(RCM)ofUNagenciesworkinginAfrica.TheRCMheldits9thsessioninNovember2009andfocusedonthefoodcrisisandclimate change issues. It adopted several recommendations thatwouldenhanceitsworkoftheMechanismanditsClustersandbet-teraligntheiractivitieswiththeprogrammeprioritiesoftheAfricanUnionanditsNEPADprogramme.

Satisfactoryprogresshasbeenrealisedincapacitybuildingandem-poweringtheSub-RegionalOffices(SROs),inlinewiththeCommis-sion’srepositioningstrategyforacceleratedregionalintegrationandsocioeconomicdevelopment.TheSROsarenowwell-equippedtore-spondquicklytothedemandsoftheirvarioussub-regionsandhaverecordedachievementsinthecontextoftheimplementationoftheMulti-YearProgrammesagreedwiththeirrespectiveRECs.

ThebuildingofpartnershipsisacoreelementofECA’sworkandacollaborative approach was further strengthened during the pastyear throughour jointactivities,particularlywith theAUCommis-

154 Part Three

sion,AfDBandtheRECs.WehavealsocontinuedtoreceivesupportandencouragementfromawiderangeofdevelopmentpartnersinvariousareasofECA’swork.ThesepartnershipsalsoreflectthespiritbehindtheCoalitionforDialogueonAfrica(CoDA),ajointinitiativeofAUC,AfDBandECAthatwasinauguratedinMarch2009.Itspurposeistosituatebroad-baseddialogueonAfrica’sdevelopmentagendawithinthecontinent.CoDA’sworkisguidedbyanindependenthigh-levelAdvisoryBoard,headedbyformerPresidentofBotswana,Fes-tusMogae.ItalsohasanumberofothereminentanddistinguishedAfricansandnon-Africansasmembers.TheChairpersonoftheAUCommission, the Executive Secretary of ECA and the President ofAfDBareex-officiomembersoftheCoalition.

ECA’sBusinessPlanfor2007-2009willcompleteitscourseattheendofthisyear.Theorientationofthethree-yearplanfor2010-2012willbetodeepenthestrategicfocusofthecurrentplan,especiallywithregard tosupporting theprioritiesof theAfricanUnionandbuild-ing strong, credibleandcoherentpartnerships topromoteAfricandevelopment.ECA’sProposedProgrammeofWorkandPrioritiesfortheBiennium2010-2012reflectsthesamestrategicunderpinnings.

Inconclusion,letmeunderscorethatthesearechallengingtimesforAfricabutIamoptimisticthatthegoodfoundationthathasbeenlaidofbettermacroeconomicmanagement, improvedgovernanceandcommitment to sustained peace and securitywill see us through.This meeting provides us with a unique opportunity to articulateideasandpolicyoptionsthatwillenableAfricatomeetcurrentandemergingchallenges.


ThepartnershipwiththeAfricanDevelopmentBankandtheAfri-canUnionCommission isonewhichweatECAstronglycherish

andwearehappythatourcollaborationonthenewCoalitionforDia-logueonAfrica (CoDA) initiativeprovidesanotherwelcomevehiclefordeepeningthistripartiterelationship.

Iamalsomostpleasedthatsomanyofyou,expertsandrespectedindividualsinyourrespectivefields,haveacceptedCoDA’sinvitationtoparticipate in thisevent. CoDA isan institutionally independentforumforfreediscussionofnicheissuesbetweendiverseandinflu-entialstakeholdersfromacrossallsectors,onAfrica’semergingandpressingchallenges.ItisasuccessortotheGlobalCoalitionforAfricaandtheBigTable,bothofwhichpromoteddialoguebetweenAfricaanditspartnersinsupportofAfrica’sdevelopment.

WithCoDA,suchdialoguewillbeAfricanownedandledwhilecon-tinuingtobeenrichedbythewiderparticipationofAfrica’spartnersandfriends.Moreover,inkeepingwiththetraditionofthepreviousforums,CoDAwillbroachdifficultandsensitivetopicsbeforetheyaretakenupbyotherorganisations.WealsoseeCoDAplayingastrongadvocacyroletotranslatepoliciesandinitiativesintoconcreteactionandresultstounderpinAfrica’ssocio-economicprogress.

Deepening stakeholder

dialogue on the financial crisis

Coalition for Dialogue on Africa: Multi-Stakeholder Dialogue on

the Financial Crisis

29 November 2009Tunis, Tunisia

156 Part Three

Today’smulti-stakeholderdialoguewasconvenedinthisspirit. Werecognisethatitisnotthefirstsucheventtotakeplaceontheconti-nentinresponsetothefinancialcrisisanditwillcertainlynotbethelast.However,itispossiblyoneofthefirsttobringtogethersuchacrosssectionofviewsandexpertiseinsuchagatheringtodiscussanissuethataffectsallofustodayandthatwillimpactonAfrica’sfutureprospects.

WhenIaddressedtheopeningoftheAfricanEconomicConferenceinAddisAbaba,whichfocusedon“FosteringEconomicDevelopmentinaneraofFinancialCrisis”,IhighlightedtheneedforAfricatolookpast the impact of the current global crisis and focus on implement-ingstepsthatwillre-directAfrica’sdevelopmenttrajectorytomakegrowthmoreenduringandsustainable.

Todoso,weneedtolookbeyondacademicdiscussionsofeconomicparadigmsandfocusonthewaysthatallstakeholderscanbeinvolvedinharnessingthemanifoldresourcesandtalentsofthiscontinentinordertogenerateemploymentandwealthcreationthatiscriticaltosustainable development and the achievement of the Millennium De-velopmentGoals.

Atthesametimeweneedtodeepentheprocessofregionalintegra-tion,especiallygiventheimpactofrecentcrises(food,fuel,andfi-nancial)whichhaveshownthatnosingleAfricaneconomyisimmuneoreverabletoweatherthestormsalone.Astheproverbsays,“Whenitrains,itisnotonlyyourneighbours’housesthatgetwet”.

ThisgatheringofsuchadiversegroupofAfrican“neighbours”,stake-holdersandpartnerstodiscussAfrica’sresponsetotheglobalfinan-cialcrisis,Iamcertainourdialoguewillindeedmakeausefulcontri-butiontoforgingofanew“Africanconsensus”onwhatAfricaneedstodotoputitseconomiesontracktoensuringlongtermgrowththatwillbenefitthepeopleofAfrica.

WhentheCoDABoardagreedontheimportanceofconveningthisdialogueatitsfirstmeetinginAddisAbabainMarch2009,therewasconsensusthattheForumshouldinnowaybeseentocompetewith,orduplicate,thegoodworkoftheotherprocessesthatarecurrentlyongoing,butratherseektosupportandencouragethem.


IntheparticularcaseofAfrica,IshouldacknowledgethegoodworkoftheCommitteeofTenMinistersofFinanceandGovernorsofCen-tralBankswhohavesteeredourcollectiveengagementwiththein-ternationalcommunityinseekingsolutionstothefinancialcrisisanditsimmediateandremotecauses.ItismyhopethereforethatthismeetingservesasausefulcomplementtotheireffortsbybringinguppracticalandinnovativerecommendationsthatcanbetranslatedintoconcretepoliciestospurAfrica’ssocio-economicprogress.

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WearequitehonouredtobeplayinghosttosuchadistinguishedgatheringincludingtheMinisterswhohavemadetimetopar-

ticipateatthismeeting.Thisshowstheimportancethatweallattachtothethemeofthisconference–EngagingwithFragileStates:Chal-lengesandOpportunities.

ThecollaborationbetweentheWorldBank,theNorwegianAgencyforDevelopmentCooperationandECAinorganisingthisconferenceandindeed,thepresenceofallofusheretodayisacleartestimonyoftheimportanceweallattachtopartnershipsinforginggoodgovernanceandpeaceandsecurityinAfrica.Thisoccasionalsoaffordsusanop-portunitytoaddressthehuman,economicandsocialimplicationsoffragilestates,especiallyinachievingregionalprioritiessuchasNEPADandonnational,regionalandglobalsecurity.

Statefragility,whichisindicatedwhengovernmentsareincapableofdeliveringbasic social services,protectingpeople from internal andexternalthreats,andprovidinginstitutionsthatrespondtothelegiti-matedemandsandneedsofthepopulationcanhavedireimplicationsforaffectedsocieties.Itseffectmayreachbeyondnationalbounda-riesandcan leadtodevastatinghumanitariancrisesanduntoldhu-manmiseries.Inmostcases,itisbroughtaboutbyproblemsrelatingtogovernanceaswellaseconomic,politicalandsocialcrises,andthiswascertainlythecaseinafewAfricancountriesinthelastdecade.

Engaging with fragile States:

challenges and opportunities

Addis Ababa, Ethiopia24 July 2007


Today, it is widely acknowledged that despite some understand-ablebumpsalongtheway,mostAfricancountriescontinuetomakesteadyprogresswithregardtoimprovinggovernancestructuresandpromotingpeaceandsecurity. The improvedtrend ingovernanceisevidentfromincreasedpoliticalaccountability,decentralizationofdecision-makingprocessesandgreaterinvolvementofcitizensinthedevelopmentprocess.Itisalsovisiblefromimprovedmacroeconom-icperformance in the continent,which in turnhasbrought aboutmorestableeconomicconditionsandis,inmanycases,translatingtohighergrowthrates.Itshouldbeacknowledgedneverthelessthatdespitethevisibleprogressthathasbeenmade,thereremainsalotto be done, especially as someAfrican countries continue to facechallengesoffragility,dueinsomecasestoongoingconflictsandinotherstotheirpost-conflictsituations.

It therefore remains important to pay particular attention to thechallenges facing fragile states. At the same time, there are alsoseveralemerginginitiativestosupportfragilestatesanditisthere-foregratifyingthatthisconferencealsofocusesonthisaspect.Itisessentialthatweassistfragilestatestotakeadvantageofavailableopportunities,astheyneedallthesupporttheycangettobecomecapablestates.

International engagement in support of fragile stateswill need tofocusonissuessuchasdemocraticgovernance,humanrights,civilsocietyengagementandpeace-building,andstrengtheningtheca-pabilityofstatestofulfilltheircorefunctions.Someofthepriorityfunctionsincludeensuringsecurityandjustice;mobilizingrevenue;establishing an enabling environment for basic service delivery,strongeconomicperformanceandemploymentgeneration.Supportto these areas in a concerted and sustainedmannerwill tremen-douslyassistintransformingfragilestatesintocapablestates.

Anumberofthingsshouldguideourcollectiveapproachtosupport-ingfragilestates.Forinstance,thepromotionofgoodgovernancelies at the heart of ensuring peace and stability in Africa because it givesvoicetopreviouslymarginalizedcommunitiesandhelpstoen-surefairandequitableaccesstoresourcesandopportunitiesforde-velopment.Thisinturnhelpstobuildlegitimacyandconfidenceintheworkingsofthestate,whichminimizesthepotentialforconflict.Post-conflictreconstructionanddevelopmentareequallyimportant

160 Part Three

inbuildingcapablestatesandareessentialforpreventingaffectedcountriesfromslidingbackintoconflict.Inaddition,theyprovideafirmbasisformeetinginternationalcommitmentstoeradicatepov-ertyandachievetheMDGsinAfrica.

Similarly,affectedstatesmusttakeownershipofthepolicyprocessand commit themselves to addressing the fundamental issues that broughtaboutcrisisandconflictinthefirstplace.Itisalsoneces-sary to rebuild capacity in fragile states and to provide resources for resumingdevelopmentactivity. Effectivepartnershipsareneededin order to provide the required resources for giving meaningfulsupporttopost-conflictcountries.Indoingso,however,weshouldavoid theapproachofpreparingastandardmenuof internationalassistanceforfragilestates.Althoughmanyofthecharacteristicsoffragilestatesaresimilar,thecausesmaybecontextspecificandthusapproachestoaddressingthechallengesandopportunitiesmustbecontextspecificaswell.

Theregionalperspectiveisanotherareathatdeservesourattentionasweaddressthechallengesandopportunitiesfacingfragilestates.While conflict in individual countrieshasparticular characteristics,thereisalsothecross-borderandsub-regionaldimensionthatbringsabout importantcommonalitiesthatneedtobeaddressed.ECA isthereforeworkingcloselywiththeManoRiverUniontosupporttherecoveryandreconstructioneffortsofitsmembercountries,namelyGuinea,LiberiaandSierraLeone.

I take this opportunity to salute the World Bank and its partners for itspioneeringinitiativetoassistLowIncomeCountriesunderStress(LICUS). IfeelthattheLICUSapproachisintherightdirectionbe-causeofitsoverallintentionofimprovingdevelopmentaideffective-ness in fragile statesand identifyingnewwaysof conceptualising,deliveringandevaluatingtheimpactoftheassistancetheyreceive.The African Development Bank has also taken special measures to addressthisissueandIwishtotakethisopportunitytoacknowledgetheirefforts.

Onitspart,theUnitedNationshasaddedanimportantnewdimen-sion to its workwith the establishment of the UN PeacebuildingCommission,whichpromotesandacceleratesinternationaleffortstosupportpost-conflictstates.ECA’sworkwillcontinuetosupport


and promote the governance agenda in Africa, including throughstrengtheningcapacityforpublicadministrationandprovidingtan-gible assistance to the African Peer Review Mechanism process,which isan integralpartofongoingefforts to strengthengovern-anceinAfrica. Itcomplementsthenewpeaceandsecurityarchi-tectureoftheAfricanUnion,whichisaimedatreducingconflictsonthecontinent.Inthelongrun,boththeseprocesseswillalsohelptoreducethecausesofconflictandcontributetobuildingcapablestates.

Whilealltheseeffortsmustbewelcomedasapositivesignoftheincreased priority being given to meet the challenges facing fragile states, it is important to harmonise interventions and ensure co-herenceforeffectivedeliveryofassistance. Thisgathering,whichembodiesourcollectiveaspirationforpartnershiptosupportfragilestates,shouldpayparticularattentiontothisandotherrelatedas-pectsofeffectivecooperationindelivery.Iamconfidentthatyouwillcomeupwithconcreteandmeaningfulrecommendationsthatwillhelpthestatesconcernedtomeetthechallengesandutilisetheopportunitiesthatarenowavailabletothem.

162 Part Three

Harnessing Africa’s full potential through strategic

partnerships

2nd Strategic Partners Dialogue

Addis Ababa, Ethiopia11 April 2011

Thefirst strategicpartnersdialoguewhichwas convened inDe-cember2009hadseveralobjectives.Firstofall,itwastodem-

onstratethestrongandincreasinglycoherentpartnershipbetweentheAUCandECA,whichhasnowbeen further strengthenedwiththeestablishmentoftheAU/AfDB/ECAJointSecretariatSupportOf-fice.Secondly,itwastohighlightandsharekeyissuesintheAfricandevelopmentagendainthespiritofpartnership.Thirdly,wewantedtopromotecoherenceandreducethetransactionscostsofourinsti-tutionsinrelatingtopartners.Finally,wewantedtoachievethesethreeobjectivesbyenabling greater access,providing informationto,and increasing interactionwithpartnerswhowerestrategicallyengagedwithbothourinstitutions.

Byallaccounts,theseobjectiveswereachievedandthisledtocallstoinvolvetheothertwokeyplayersinAfrica’sregionalarchitecture,namely the African Development Bank and the Regional Economic Communitiesintheprocess.Thefirstmeetingalsoprovidedanop-portunityforECAtoshareits2010-2012BusinessPlanwithourpart-nersandwereceivedalotofsupportinitsimplementationfromourkeystrategicpartners. Wewillbeproviding furtherdetails in thisregardatthenextsession.

Thecontextinwhichwearemeetinghasalsochangedsignificantly.Ourfirstdialoguetookplaceduringtheglobaleconomicandfinan-


cialcrisisandtherewereconcernsatthetimethatitseffectswouldderailvisibleimprovementsingovernanceandeconomicgrowthinAfrica.Thisfearhasrecededbutwearenowinaperiodoftremen-douschangeforAfrica. Ontheonehand,thereisconcernduetoon-goingeventsinNorthAfricabutontheotherhandthereishope.Concernbecausewedonotknowwherealltheseeventswill leadus including inotherpartsofthecontinent,andhopebecauseweknowthatthereasonsfortherevolts inNorthAfricaare linkedtodemandsfor increaseddemocraticspace,humanrightsandbettergovernance.

There is also great optimism and increased confidence in Africa’sprospectsbytheAfricanpeople.Oureconomiesaregrowinginclud-ing in theaftermathof theglobal economic andfinancial crisis attheirfastestandmostconsistentratessincethelate1970s.Theseencouragingsignsarebeingmatchedbywelcomeifunevenprogressin achieving the Millennium Development Goals and informed en-gagement of Africa in international processes such as the climatechangenegotiationsand,indeed,intheG20althoughthecontinentstillremainsunder-representedinthisveryimportantglobalforum.These are all pointers to the fact that our partners also share in the optimismandpositiveoutlookforAfrica. Isincerelyhopethatthisstrategicpartnersdialoguewillleadtoaconcretedeclarationofin-tenttoaccompanyandencouragethisupbeatscenario.

Agoodstartingpointinthisregardwouldbeforourpartnerstoas-sistandsupporttheeffortsofthepan-AfricaninstitutionsandRECsintacklingkeycontinentalchallenges.Thereareseveralofthemin-cludingthepressingandcriticalissueofclimatechangeaswellasthechallengesofgenderequalityandempowerment,maternalhealth,andtrade.Permitme,however,tofocusontwootherissuesofequalimportance.ThecaseandrationaleforintegrationinAfricahasbeenmadeandcontinuestobereinforcedthroughvariousstepsandac-tionsbeingtakenthroughtheAUandRECs.However,thisprocessneedstobeaccompaniedespeciallywiththeprovisionoffirstrateinfrastructureintheformofpowerplants,roads,railwaysandtheliketoimprovewelfare,underpinproductionandfacilitatetrade.

TheexperienceoftheTransAfricaHighwayillustratesthispoint.ItwasstartedoveraquarterofacenturyagoalongsidesimilarprojectsinAsia,EuropeandLatinAmericaandwhileallthesehavebeencom-

164 Part Three

pleted,thisisnotthecaseforthissignificantcontinentalroadinitia-tive.ThisiswhyIparticularlywelcomethedecisionoftheG20topayattentiontotheprovisionofinfrastructureindevelopingeconomieswhichwasdemonstratedbytherecentestablishmentofaveryrep-resentativeHigh LevelPanelon Infrastructure Investment, chairedbyTidjaneThiam,an IvorienandChief ExecutiveofPrudential In-surance. We inAUC/AfDB/ECAwill support theworkof thePanelforwhoseeventualrecommendationsAfricacountsonyoutoforgeconsensuswithin theG20 soas to leverage resources forbuildinginfrastructuretodriveitsprocessofregionalintegration.

TheotherchallengewhichIwanttohighlightrelatestogovernance.The discourse on governance in Africa is less heated than it used to bereflectingwidespreadcommitmenttodemocracy,observanceofhumanrightsand the ruleof law. Thiswas furtherdemonstratedwhen the January 2011 AU Summit deliberated on the theme of‘shared values’. Nevertheless, there remainsmuch to be done aseventsinNorthAfricaandelsewherehaveshown.Ourpartnersareaccordingly invited to support Africa’s commitment to taking govern-ingseriously.

ItisamatterofregretthatcountriesthatareengagedintheAPRMprocesshavenotreceivedthesupportrequiredtoimplementresult-ingactionplans.Governance,moreover,extendstoimprovingthethinkingbehindandtheimplementationofdevelopmentplansandpolicies,which iswhy the lastAU/ECAConferenceofMinisters ofFinance,PlanningandEconomicDevelopmentwasonthethemeof“GoverningDevelopmentinAfrica”.

The4thJointAU/ECAConferenceofMinisters,whichhasbeenrec-ognizedbyourHeadsofStateandGovernmentas‘amajorannualministerialplatformforthedeliberationandexchangeofviewsonissuesrelatingtoAfrica’sgrowthanddevelopment’,tookplaceherefrom28to29March2011.Itbroughtover50AfricanMinistersofFinance, Planning and Economic Development and some of theircounterparts from Environment and Health together to deliberate onissuesofmajorinterest.WeshouldgivesomethoughttomakingthisStrategicPartnersForumasideeventoftheConferenceofMin-istersasthereisscopetoreapmutualbenefitsandalsoasameansoffurtherincreasingcoherenceinpartnershipactivities.


Wewillhavetheopportunity todeliberateandexchangeviewsofvarious issues especially those contained in the agenda of this meet-ing.Ultimately,however,wemustremainfocusedontheveryrea-sonsforwhichthisdialoguewasstarted.Thiswouldrequirethatwedevotesometimetodeliberatingontheoptimalformatofcarryingthisstrategicpartnersdialogueforward.

166 Part Three

Japan’s role in the transformation of Asian countries:

A useful experience to

share with AfricaStatement at a seminar on

“Upscaling the Japan-Africa Partnership”

Tokyo, Japan15 December 2011

It is indeed an honour and privilege to be here in Tokyo under the auspicesofAFRECO.Thisvisithasaffordedustheopportunityto

exchange views onways andmeans of upscaling cooperation be-tween JapanandAfricancountries inamutuallybeneficialway. Iwouldthereforeliketotakethisopportunitytoexpresssincereap-preciationtoAFRECOandall theother Japaneseagenciesandau-thoritiesthathavefacilitatedmyvisithere.

Prior togoing intothesubstanceofmyremarks, IwishtoexpressmysolidarityandthatofmycolleaguesintheEconomicCommissionforAfricawiththeGovernmentandpeopleof Japanfollowingthetripletragedyofearthquake,tsunamiandnuclearmeltdownwhichoccurredearlythisyear.Ipaytributetothememoriesofthosewholost their lives and salute the courage and spirit of those recovering frominjury,thelossofdearlylovedonesandvaluablepossessions.The bravery, resilience and determination shownby the Japanesepeople in the faceof suchdifficultieswas remarkable and furtherdeepenedouradmirationandrespect forthedignityandcalmforwhichthisancientcivilizationhascometobeknown.

The fundamental basis for increased cooperation between Japanand Africa rests in the fact that both Japan and Africamatter foroneanotherandthatthereispotentialacrossvariouskeyareasforscaling-uptheirties.Giventhatmyremitonthecontinentistolead


theEconomicCommissionforAfrica,Iwillbedemonstratingthepo-tentialforsuchcooperationmainlyfromexamplesintheeconomicandsocialfieldsalthoughasimilarcasecanalsobereadilymadeininternationalpoliticalcooperation.

Japanisundoubtedlyoneoftheleadingeconomiesintheworldasexemplified by the size of its economy, the extensive global reachof itscompanies, itsmembershipofglobaleconomicpolicymakingbodiessuchastheG8andG20andappreciableforeignexchangere-servesof1.3trillion.ThismeansthatitexertsinfluenceonshapinginternationaleconomicprocesseswhichdeterminetheenvironmentinwhichAfricancountriesseektodevelop.AlthoughJapandoesnotthrowitsweightaround,ithaspromotedconsiderationofitsviewsondevelopmentinagentlebutfirmmanner.IreferinparticulartoitsinsistencethattheWorldBankundertakewhateventuallycametobeknownasthe‘EastAsianMiracleStudy’theverytitleofwhichcon-veysthesuccessesrecordedinthisregionfollowingtheleadofJapan.In his forward to that publication the thenPresident of theWorldBanknoted that thediversityof theEastAsianexperienceshowedthateconomicpolicymustbecountryspecificifitistobeeffective.

Indeed,theonlysuccessfulpathof latedevelopmentsincethelate1940shasbeenthemodelofthedevelopmentalstatepioneeredbyJapan. Thuswehave seen inEastAsiaandSouthEastAsiaa suc-cessionofcountrieswhoseeconomicprowesshasbecomequiteleg-endary.Whatisinterestingisthatdespitethedifferentgeographical,economic,politicalandsocialcircumstancesofcountries,inEastandSouthEastAsia,allofthemhaveusedaconceptthatwassuccessfullyimplemented here in Japan to drive their economic development.(coreelementsofdevelopmentalstate)

Suchistheaccomplishmentinthispartoftheworldthatonecanle-gitimatelyassertthatemergingeconomiesarechangingthebalanceofglobaleconomicpower.ItisalsowhyweattheEconomicCommis-sionforAfricadedicatedour2011EconomicReportonAfricatoex-ploringhoweconomictransformationinAfricacouldbeenhancedbystudyingkeyelementsofthedevelopmentalstate.Thus,westressedtheimportanceofissueslikeplanningandcoordinationandbureau-craticcapacityintheAfricandevelopmentprocess.

Whatisparticularlyinterestingaboutthismatteristhatwhencoun-

168 Part Three

tries in this region sought to emulate the Japanese development model,theireffortswereaccompaniedbythiscountry. Asconten-tiousasitmaysound,alotofthedevelopmentcooperationmodelwhichChinaisusingtogreatsuccessinAfrica,wasfirstusedbyJapaninEastandSouth-EastAsia. Iamreferringofcoursetoclosetraderelationships, to the provision of assistance in the form of invest-mentandinfrastructure,therelocationofsunsetindustries.Inoth-erwords,JapanledthewayinestablishingrelationshipswithAsiancountrieswhichgaverisetotheeconomicnotionofflyinggeese,withtheJapanesegooseundoubtedlyinfront.

ItisthereforequiteevidentthatJapanledthewayintermsofsuc-cessfulthinkingandpracticeofdevelopmentandit isto itseternalcreditthatitwasthefirstcountrythatattemptedtobuildabilateralrelationship thatwasnot coloniallyderivedwith theAfrican conti-nent.IamreferringofcoursetotheTokyoInternationalConferenceonAfricanDevelopment(TICAD)throughwhichJapansoughttoan-choritstrade,aidandinvestmentrelationshipwithAfrica.TICAD1tookplacein1993longbeforeitbecamefashionabletohavethekindofbilateralrelationshipswithAfricawhichhavenowblossomedandbecometheorderoftheday.Itissalutarythatwearenowimple-mentingTICADIVtowhichIwillreturnlater.

The point that I am making then is that Japan is an important partner forAfrica through its example, experienceandpath-breaking insti-tutionalizationof cooperation. I amawareof course thatperhapsduetohistoricalandgeographicalreasons,cooperationbetweenJa-panandAfricahasnotyetbeenfullyoptimalizedbutthenthere isscopeandopportunity toupscale suchtiesespeciallyasweareatthecuspofanAfricanmoment.Membersofthisaudiencemayhaveseenarecenteditionof‘TheEconomist’magazinewhosefrontcover(at least in theAfricanandEuropeaneditions)wasentitled “AfricaRises”.ThosewhorecallthattheverysamemagazinelabeledAfrica“TheHopelessContinent”barelytenyearsagowouldappreciatethefundamentalchangesthathavetakenplaceinAfricaandwhichofferabasisforfurtherdeepeningrelationsbetweenAfricaandJapan.

LetmestartwithAfrica’scompellingeconomicperformancewhichhasaveragedover5%perannumsincetheturnoftheMillennium.Thisencouragingperformancewasbuttressedby the relative resil-ience of African economies during the recent global economic and


financialcrisis.GrowthinAfricaisestimatedtobeabout4.7%onav-eragein2011risingtoover5%in2012andthisisdespitethedragoftheArabSpringandeurozonecrisis.Thispositiveperformanceismainlyaresultofimprovedpoliticalandeconomicgovernanceinthecontinent.

SincetheestablishmentoftheAfricanUnion,Africancountrieshaveacted firmly against unconstitutional changes of government withanundoubtedcommitmenttochoosingleadersbyelectoralmeans.Therewere up to 17 Presidential andNational Assembly electionsinAfrica in2010and20of suchelectionswillhave takenplacebytheendofthisyear. Similarly,31AfricancountrieshavesigneduptotheAfricanPeerReviewMechanism,bywhichHeadsofStateandGovernmentsubjecttheirnationalgovernancepoliciestoscrutinybytheirpeers.Theinterestingaspectofthisuniquemechanismisthatitisentirelyvoluntary.

TheevidenceofbettereconomicmanagementcanbeseenfromthefactthatinflationinAfricaisonaverageathalfofitslevelinthemid-1990s and that in 2008 nearly two-thirds of African countries hadpositiveprimaryfiscalbalancesascomparedtojustoverone-quarteroftheminthe1990s,thusgivingthemmorefiscalspaceduringthefinancialcrisis.Anothersetofequallycompellingfiguresshowthatprivatecapitalflowsof$50billionnowexceedofficialdevelopmentassistancewhileexportvaluesin2008hadtripledcomparedtothebeginning of the decade. Such improvements in economic perfor-mance are closely linked to policy regimes that give priority to the privatesectorandtoattractingforeigndirectinvestment.

Another reason for optimism is that the private sector in Africa isnowplayinganincreasinglyimportantroleineconomicactivityinthecontinent.ThereisnowanoticeablenumberofAfricancompaniesinvestingoutsidetheirhomecountriesinotherAfricancountriesandtheirbusinessesspanconstruction,bankingandfinance,manufactur-ing,retailandconsumerservices,mining,oilandgas,airservices,andcommoditytradingtomentionbutafewareas.Ithasbeenestimatedthatthesecompaniesenjoyedacompoundgrowthrateof21%be-tween2003and2010.Onamoregenerallevel,averagereturnsintopAfricanfirmsbetween2003and2008were said tobe20%ascomparedto15%forS&P500,and10%forDAX30andNikkei225.

170 Part Three

Giventheseimprovements,itisnotsurprisingthatAfrica’sprospectsareattractingattention. TheEconomistwasnotthefirsttonoticethis. At its 2010 Summit in Seoul, the G20 underscored Africa’sgreatpotentialtobecomeadestinationforinvestmentandsourceofglobalgrowthwhileglobalresearchfirmsledbyMcKinseyhavealsoreleasedequallycompellingreportsonAfrica’sprospects.Be-foreturningtospecificareasinwhichJapanandAfricacancooperatetomutualadvantage, letmefirstaddressthequestionofwhetherindeedthecurrentgrowthcycleinAfricaissustainable.

Foranumberofreasons,Iwouldanswerthisquestionintheaffirma-tive.FirstisthatitisAfricansthemselvesthataremostlydrivingtheprocessofgrowthandinvestmentinthecontinent.Thisishappen-ingthroughdemonstrablecommitmenttopromotingregionalinte-grationbecausewhile the sizeof the entireAfrican economywasabout$1.6trillionin2008,itspotentialisreducedbythefactthatthecontinent ismadeof54small, fragmentedcountries.Realizingthese limitations,African countries have taken steps to acceleratethepaceofregionalintegrationnotablythroughtheestablishmentoftheAfricanUnionandRegionalEconomicCommunities.

FollowingthepublicationofECA’sfourthAssessingIntegrationinAf-rica report on intra-Africa trade produced in partnershipwith theAfricanUnionCommissionandtheAfricanDevelopmentBank,theAfricanUnionwillbediscussingthisthemeatitsnextJanuarySum-mitwhereitwillalsoexplorethepossibilityofcreatingacontinentalfreetradeareaby2015.TheseeffortsarealsobeingcomplementedbytheprivatesectorandindividualAfrica.Toexemplify,investmentfundsraisedbyprivateequityfundswithinthecontinentincreasedby37%from$2.3billion in2007to$3.2billion in2008. Similarly,remittancesfromtheAfricanDiasporawereestimatedtobeabout$40billionlastyearaloneandaccountedforupto9.3%ofGDPinacountrylikeUganda.

ItisundeniablethathighdemandforAfrica’scommoditiesespecial-lyfromtheemergingeconomieshascontributedtorecentgrowthperformance.However,highcommoditypricesareonlypartofthestoryandprobablyaccountsfor justonethirdofrecentgrowthasnearly all sectors have contributed to Africa’s improved economic performanceincludingsectorsbenefitingfromrisingdisposablein-comesuchastelecommunications,construction,agriculture,finance


andtransportation.Ofcourse,giventhatAfricaishometoaremark-ableshareofglobalresources,therapidgrowthandneedsofemerg-ingeconomieswillgivealong-termboosttocommoditypricesfromwhichthecontinentwillcontinuetobenefit.Goingforward,Africaneconomicperformancewillbesustainedbychangingdemographics.ThedemandforbettergoodsandsocialservicesbyanemergingAfri-canmiddleclasswillalsohelptosustaingrowth.Itisestimatedthatthisgroupwillamountto300millionpeopleby2030andthattheirspendingpowerwillamountto2.2trilliondollars.

SinceJapanisamajorplayerintheglobaleconomyandAfricaisapotentialpoleofglobalgrowth,itisquiteevidentthatthereismuchscopetoincreasedcooperationbetweenbothsides.Iwillshowhowthiscanbethecaseinsixmainareas.

ThefirstoftheareasinwhichJapancansupporttheprocessofAfri-candevelopmenttomutualadvantageisingovernance.AsIstatedabove, African countries have takenmajor steps to improve theirpoliticalandeconomicgovernancewhichinturnhaslaidthefoun-dation forbettereconomicperformance. If Japan supports initia-tivesliketheAfricanPeerReviewMechanismaswellasthosetakentoreducecorruptioninthecontinentthenitwouldhavehelpedtocreate an enabling environment for its companies to do even more businessinAfrica.AnissueofparticularconcerninAfricarelatestoillicit financial flows conservativelyestimatedby theGlobal Finan-cialIntegrityReporttohavebeenabout$854billionsince1970and2008. ItwouldbeimportantforJapantosupporteffortstostemsuchoutflowswhichwillnotonlyimprovegovernanceinAfricabutalso complement resources available to boost investment and pro-motedevelopmentwithinthecontinent.

Thenextarea inwhich there is scope to increasecooperationbe-tweenAfricaandthisgreatcountryisthroughinvestmentinproduc-tivesectorssuchasagricultureandmanufacturing.IfJapanesecom-paniesinvest inAfricaastheydidinAsiathiswillhelptopromoteeconomictransformationandcreatemuchneededjobs.Suchinvest-mentscouldtakeplacethroughasecondrelocationofsunsetindus-triesfromAsiatoAfricaaswellasbyincludingAfricanenterprisesinglobalvaluechains.InvestmentinAfricancountriesnowwillenableJapanesecompaniestotakeadvantageofgrowingregionalintegra-tionbyusingsuchlocationsasabaseofexportstothirdcountries.

172 Part Three

AkeyconstrainttoscalingupproductiveactivitiesinAfricaderivesfrom infrastructural constraints and there is great scope for Japan tocontributeto improvingthesituationas itscompanieshavethecapacitytobuildworldclassinfrastructurewhileitsfinancialinstitu-tionscansupporttheprocessthroughstructuredfinancing.

Improvementsin infrastructurewillnotonlysupportregional inte-gration and intra-Africa trade but also boost trading relations be-tween Japan and Africa. Totalmerchandise trade between thesetwopartnersamountedtoabout$24billionin2010whichitselfisasignificantamount.However,ifwecomparethiswithaneconomyofcomparablesizesuchasChinawhosetradewithAfricain2010wasestimatedtobeabout$120billion,thenitcanbeseenthatthereisfarmorescopeforincreasedtradebetweenJapanandtheAfricancontinent.ThisisalsoreflectedinthefactthatJapan’sshareofex-portstoanexpandingAfricaneconomyfellfrom4%in2000to2.7%lastyear.ItisneverthelessworthrecordingthatJapanisinvolvedinsupportingintra-AfricantradefacilitationthroughjointprojectssuchasOneStopBorderPostsforwhichIwouldliketoexpressgreatap-preciation.

Japan can also support African development by helping countries in thecontinenttotakeadvantageofnewtechnologiesandopportuni-ties.Wearecurrentlyinthedigitalageandthereisgrowingglobalconsensusabouttheneedtoshifttoagreeneconomytopromoteenvironmental sustainabilityand toadapt to thedamagingeffectsofclimatechange. Asaglobal leaderinICTrelatedindustriesandactivities,Japancancontributetoeffortstoscale-uptheuseof in-novation, scienceand technology inAfrica through investments inthecontinentaswellasinsupportingcapacitybuildingactivities.Toillustrate,therapidlyrisinguseofmobilephonesandrelatedapplica-tionsincludingtheworldfamousM-PesapaymentsysteminKenyashowshowICTscancontributetoon-goinggrowthinAfrica.Asimi-lareffort isrequiredinadvancingthegreeneconomyinAfrica,forwhilethecontinenthasanaturalresourcebaseforundertakingsuchactivities, it still requires substantialfinancial supportand transferoftechnologytobeabletochangeitscurrentgrowthtrajectorytoamoregreenbasis.

The examples of climate change and environmental negotiationssuchastheforthcomingRio+20conferenceshowthatAfricahashigh


stakesinglobaleconomicprocesses.JapancanthereforeupscaleitscooperationwithAfricabyappreciatingandsupporting itspositionsandpriorities inglobalprocessessuchasG8andG20meetings,ne-gotiationsattheWorldTradeOrganization,initsrelationswithinter-nationalfinancialinstitutionsandofcourseattheclimatechangeandenvironmentalnegotiationsmentionedearlier.TheissueofensuringthatAfrica’svoiceisheardisofcontinuingconcerntothecontinentandrelationswithJapanwillundoubtedlybeenhancedifitshowsem-pathyandappreciationforAfrica’sneedsandconcernsinglobalpro-cesses.LetmeaddthatweinECAexpectthatasthesecondlargestcontributortotheUN,JapanshoulduseitsinfluenceinthatbodytosupportoureffortstopromotethesocialandeconomicdevelopmentofAfricainaccordancewithourmandate.

Asindicatedearlier,IamawarethatJapanhasaframeworkformanag-ingandpromotingcooperationwithAfricathroughtheTICADmecha-nismandindeedmostofthepointsIhavejustmadewillbeeasilyac-commodatedunderthefourpillarsoftheTICADIVActionPlanwhichare boosting economic growth, achieving theMillennium Develop-mentGoals,peaceconsolidationandgoodgovernance;andaddress-ingenvironmental issuesandclimatechange. AboutadecadeaftertheTICADprocesswaslaunched,AfricaadoptedtheNewPartnershipforAfrica’sDevelopmentasaframeworktoguidecontinentaldevelop-mentinthenewMillennium.WhileexpressingappreciationtoJapanbothforpioneeringthistypeofcooperativearrangementswithAfri-caandforthefinancialandtechnicalassistanceitrendersundertheTICADprogramme,IwouldliketoseecloseralignmentbetweenthesetwoprogrammessuchthatNEPADprioritiesdrivetheTICADworkpro-gramme.

ThisthenleadstothelastareathatIwanttohighlightforupscalingcooperationbetweenJapanandAfricawhichisincreasingtheamountandscopeofofficialdevelopmentassistancetoAfrica.AstartingpointwouldbetomeetthecommitmentsmadeinMonterreyandtheGle-neaglesSummitoftheG8.Suchassistancecanbeusedtomutualad-vantagebyusing it to leveragefinancefor infrastructureand invest-mentinproductivesectorsinAfrica.ThisisamodelwhichJapanusedsuccessfully inthisregionandwhich isbeingreplicatedbyothers inAfrica.Equallyimportantinthisregardistheneedforurgentdeploy-mentandutilizationofthe$10billionpromisedinTICADIVtofastenthepaceofclimatechangeadaptationinAfrica.

174 Part Three

Toconcludetherefore,Japanwasthepioneerofsomeofthemostsuc-cessfuldevelopmentandcooperationmodelsanduseditsknowledgeandexperiencetomutualadvantageinitsrelationswithAsia.ThereisnoreasonwhyitshouldnotdosoinupscalingitsrelationswithanemergentAfrica.


Enhancing capacities for development

results

Launch of theAfrica Platform for Development

Effectiveness (APDev)

27 March 2011, Addis Ababa, Ethiopia

The Africa Platform for Development Effectiveness (APDev) is acommendableandbold initiativethatwilladdvaluetoAfrica’s

developmentlandscapeandcomplementvariouseffortsbeingmadetoactualizetheContinent’sdevelopmentobjectives.

TheUnitedNationsremainscommittedtothepartnershipwiththeimplementationoftheAfricanUniongoalsthroughsupportfortherealizationoftheAfricanagenda.Inparticular,theregionalintegra-tionagendaoftheAfricanUnionprovidesafirmbasisforthispart-nershipwithregionalmechanismssuchastheAfricaPlatformareatthecoreofthesystemsandprocessesrequiredtodrivetheconti-nent’sreformagenda.

AsastrategicpartneroftheAfricanUnion,ECA isproudtobeas-sociatedwith theconceptualization,designand theprogrammaticworkofthePlatform,alongwithotherUNagenciesandkeyAfricaninstitutionsincludingtheAfricanDevelopmentBank.

Africatodayisacontinentonthemove.Politicalandeconomicre-formsarebeingconsolidatedatnationalandregionallevels,towardsachievingsustainablegrowthanddevelopment.

Thetheme“GoverningDevelopmentinAfrica”attheongoingAU/ECA Joint Conference ofMinisters of Finance, Economic Develop-

176 Part Three

mentandPlanningisrelevanttotheworkandthrustofthePlatform,otherwiseknownasAPDev. ThiswelcomeinitiativeoftheAfricanUnion Commission (AUC), the NEPAD Planning and CoordinatingAgency,andpartnerinstitutionswillmobilizeAfricanpolicymakersandpractitionerstowardachievingsustainabledevelopmentresults;

Indeedbyprovidingaphysicalandvirtualmulti-stakeholderforumfocusingonAidEffectiveness,South-SouthCooperationandCapac-ityDevelopment,APDevwillenablepolicyanddecisionmakers toconnectthroughalinkageofexistingcommunitiesofpractice.ItwillalsoserveasanAfricanwindowtotheoutsideworldontheevolvingglobal economic governance architecture;

Itisquiteevidentthatgreaterinvestmentinknowledgeandlearn-ingisrequiredforAfricatobegloballycompetitive.However,withsomanyactors,sourcesofknowledgeandcommunicationsmedia,thereneedforbettercoordinationandcoherence.APDevpromisestoplaythisroleifitevolvesinaninclusiveandall-engagingmanner.

In addition to better coordination of consultation, dialogue andknowledge sharing among African stakeholders, APDev should beconfiguredtoprovidemuchneededsupporttoAfricancountriesandRECs inthe implementationoftheParisDeclarationandtheAccraAgendaforAction.ThiswillenabletheconsolidationofAfricancom-monpositionsonkeyissuesofdevelopmenteffectivenessparticular-lywithregardtopreparationsfortheFourthHighLevelForumonAidEffectivenesstakingplaceinBusan,SouthKoreainNovember2011;

APDev’sambitiousprogrammeofactivities,includingthepublishingofthe“StateofCapacityDevelopmentinAfricaReport”in2012,acapacitybuildingsupportprogrammeforRECsandthearticulationofaconsensuspaperonDevelopmentEffectivenessforBusan,arecrucialinaccompanyingAfrica’sdevelopmenteffortsandshouldbesupportedbyallstakeholdersincludingpan-Africaninstitutions,Re-gionalEconomicCommunities,nationalgovernments,nationalandregionalparliaments,privatesector,civilsocietyorganizations,socialandeconomicinterestgroupsandAfrica’sdevelopmentpartners.


Activating the UN ten-year capacity

building programme for the African Union

12th Session of Regional Coordination Mechanism of United Nations Agencies and Organizations Working in Africa in

Support of the African Union and its NEPAD Programme

21-22 November 2011Addis Ababa, Ethiopia

Itwillberecalledthatatour11thSessionlastyear,wewerecon-frontedwith an inconvenient truth: that the framework for ourTen year capacity building programme in support of the African Un-ionwasnotaccompaniedbyconcreteprogrammes fully reflectingtheprioritiesoftheAU.Thatwaswhythe11thsessiondirectedtheRCM-AfricaSecretariattoconsultourAUcolleagues inordertofillthisgapand it isalso thereasonwhythis12thsession isdevotedfullytothequestionofcapacitybuildingoftheAU.

Aspartofthisprocess,weheldaretreatearlySeptember2011todeliberateonthismatterandelaborateaconcreteandimplementa-bleworkprogrammetoenergisetheTenYearCapacityBuildingPro-gramme.TheretreathelpedusbetterunderstandtherealcapacityneedsoftheAUandrevealedsomegaps intheworkingsofRCM-Africa.Indeed,ourexistingstructuredoesnotaddressorganization-alandinstitutionalaspectssuchashumanresourceneeds,finance,strategic planning and conference management nor does it cover issuesofeconomicdevelopmentinthemacrosense,regionalinte-grationandstatistics.Thismeetingisagoodopportunitytofurtherdiscusstheseissues.

TheKuriftu retreatalsoyieldedadraftworkprogrammewith log-framesofplannedactivitiesandexpectedoutcomesaccompaniedbyallocationofresponsibilities,resourceneedsandtimeframes. I

178 Part Three

hopethis12thsessionwillsupporttheimplementationoftheworkprogramme including on meeting related resource requirements.OurannualmeetingalsoprovidesanopportunitytorenewRCMac-tivitiesoverthepastoneyearbyaskingourselvessomefrankques-tions.Forinstance:arewesupportingjointactionsratherthanin-dividualactivities?Arewerespondingtotheneedsofourpartnersbasedontheirmandatesandpriorities?Theanswerstotheseques-tionsshouldhelpusdeterminehowbesttostrengthenRCM-Africa.

OneareainwhichprogressisundeniableisthattheAfricanUnionCommission,NEPADPlanningandCoordinationAgencyandtheRe-gionalEconomicCommunities(RECs)havetakenincreasingowner-shipofRCM-Africa and its variousClusters. Thiswould in turn re-quirethattheUNsidetakesstepstoreciprocatebyactingasonetostrengthentheRCM-Africasecretariat.

VariousUNprocesses and previous RCMmeetings recognized theneed to establish Sub-regional CoordinationMechanisms (SRCMs)developa framework for coordinatingUNprogrammesandactivi-tiesatthesub-regionallevel.Inthisregard,IampleasedtoreportthattheSRCMforEasternandSouthernAfricahasbeenestablished,whiletheprocessofestablishingthatofCentralandWesternAfricahasalsobeeninitiated.

PermitmetorecallinconclusionthatitwasatthisforumlastyearthatwebegantothinkaboutsupportingAfrica’sparticipationatnextyear’s Rio+20 conference by focussing ourmeeting on the ‘GreenEconomy’. Following that start,weorganizedadiscussionaroundthe topicat theAU/ECAConferenceofMinistersofFinance,Plan-ningandEconomicDevelopmentandAfricanPreparatoryMeetingforRio+20whichhasthe‘GreenEconomy’asoneofitstwothemestookplacehere just lastmonth. Ihope that thismeetingwill alsolookatsometheoutcomesemanatingfromtheseprocessessoastoprovideadditionalinsightstoourmemberStatesintherun-uptotheConferenceproper.

ONTHEFINANCIALCRISIS

Part Four


Thestatements in this clusterdiffer significantly fromothersbe-causetheyfocusspecificallyontheglobaleconomicandfinancial

crisis,whichemergedtowardstheendofthefirstdecadeoftheMil-lennium.

For several years, the economic performance of African countrieswasimpressive,withgrowthaveragingover5%perannum.Asco-operationwiththecontinent’sdevelopmentpartnersaswellastherenewedpushofnationsfordevelopmentandthegainsofglobalisa-tionbegantomakeanimpact,itseemedthatthehighhopesatthebeginningoftheMillenniumwouldyieldfruit.

Onthebasisofthatconfidence,Africannationswerelookingatwaysof scalingup theirefforts inorder tomeet theset targets, suchastheMillenniumDevelopmentGoals(MDGs),becauseitwasclearthatdespitetheprogressthatwasbeingmade,muchmoreneededtobedone.

In2008,however,thosecalculationschangedwhenthefoodandfuelcrisissetin,threateningnotonlytheabilityofAfricannationstomeetMDGtargets,buteventhemacroeconomicgainstheyhadmade.Asthoughthatwasnotenoughofanewchallenge,thefoodandfuelcri-siswasfollowedinshortorderbyadevastatingglobaleconomicandfinancialcrisis,theworld’sworstsincetheGreatDepression.

Introduction

182 Part Four

ThestatementsinthisclusterreflecttheconcernofECAaboutthenew turnofevents,and theCommission’sefforts, in concertwithother bodies, to understand it and help its clients to respond ap-propriately.

Invariousinterventions,theExecutiveSecretarypointedoutthesig-nificanceofthecrisis,howitwouldaffectgrowth,trade,investmentflows,tradecredits,remittances,andtourism,aswellasmakeitdif-ficultfornationalgovernmentstofinancetheirrecurrentandinvest-mentprogrammes.

ButhewasalsoquicktocautionAfricanottoseethesituationasoneforpanicordespair,butasanopportunitytoimplementbetterandstrongerpolicies.Hecalledforachangeinoutlookinsuchareasasdomesticpolicyformulation;ineconomicandgovernanceinstitu-tions;inthepaceofregionalintegration;aswellasintheframeworkofinternationaleconomic,financialandtradingarrangements.

He cited the need to further diversify African economies and increase agriculturalproduction,therebyenhancingtheresilienceofAfricaneconomiestoenablethemdealwithfutureeconomicshocks.

Mr. Janneh stresses in these interventions that the economic andfinancialcrisisisareminderoftheneedforcooperationandcollabo-rationamongstatesatvariouslevelsofdevelopment,particularlyinAfrica,andthatthecontinent’sregional integrationagendashouldbespedupasabasisforcompetitivemarketsanddiversificationofitsproductionstructures.


Theworld economy is facing theworst financial crisis since theGreat Depression. Although the crisis was triggered by events

intheadvancedcountries, its impact isbeingfelt inalldevelopingcountries.InAfrica,thecrisisistakingplaceatatimeinwhichoureconomiesareslowlyemergingfromtheeffectsofthefoodanden-ergycrisesandsopresentsaseriouschallengeformeetingtheMil-lenniumDevelopmentGoalsintheregion.

At the beginning of the crisis, thewidely held viewwas that theimpact onAfrican economieswould be insignificant because theyhavevery small inter-bankmarkets,are less integrated intoglobalfinancialmarkets,andhaveavarietyofrestrictionsonmarketentryaswellastheoperationoffinancialmarkets.Thisassessmentwasoverlyoptimistic.

TheglobaleconomiccrisisisnegativelyimpactingonAfricanecono-miesinseveralways.Itseffectsarebeingmanifestedinslowdownofgrowth,weakeningcurrencies,decliningstockmarketindicesandsharplyreducedcommodityexports.Ithasalsoreducedinvestmentflows,remittancesandtourismreceipts.

Ourassessmentindicatesthatin2009thecrisiswillreducegrowthinAfricafromanaverageof6percentoverthepastdecade,bybetween2and4percentagepointsdependingonassumptionsmadeaboutre-

Africa’s response to the global

financial crisisHigh-level Panel on the Financial Crisis Impacts and Responses: An

African PerspectiveSixty-fifth Session of the

Economic and Social Commission for Asia and the Pacific (ESCAP)

28 April 2008Bangkok, Thailand

184 Part Four

sourceflowstotheregionaswellastheeffectivenessofpolicyrespons-estothecrisisbyadvancedcountries.TheheterogeneityoftheAfricanregionimpliesthatthedegreeofimpactwilldifferacrosscountries.Forexample, in2009,Angola,Botswana,SouthAfrica,EquatorialGuineaandSudanareexpectedtoexperienceadeclineingrowthofmorethan4percentagepoints,whileinothercountriesthedeclineisexpectedtobemuchless.ThecrisishasalsohadsignificantwealtheffectsonstockmarketindicesincountriessuchasNigeriaandEgypt,decliningbyupto60percentbetweenMarch2008andMarch2009.SimilarwealthlossesfromthissourcehavealsobeenobservedinSouthAfrica.

Most countries in the region depend on advanced economies for trade andinvestmentandthedeclineingrowthintheseeconomieshashadanegativeeffectontraditionalsourcesofdevelopmentfinancetoAf-rica.Theexpectedshortfallinexportearningsamountsto$251billionin2009and$277billionin2010forthecontinentasawhole.Forex-ample, commodity prices,whichmanyAfrican countries dependonfor foreignexchange,havetakenabighit.Thepriceofcrudeoil fellbymorethan50percentbetweenFebruary2008andFebruary2009,whilethoseofcopper,coffee,cottonandsugarfellbymorethan20percentoverthesameperiod.Therehasalsobeenadeclineinthevol-umeofexports.ThegrowthofAfricanexportsinrealtermsfellfrom4.5percentin2007to3percentin2008andfurtherdeclineisexpectedin2009.ThedeclinesincommoditypricesandexportvolumehaveledtoadecreaseinexportearningsinAfricancountries.InBurundi,coffeeearningsfellby36percentbetweenOctoberandNovember2008.InAngola,earningsareexpectedtodeclinefrom$67billion in2008to$23billionin2009.

Foreigndirectinvestmentandothersourcesofprivatecapitalflowsareexpectedtodeclinein2009.Priortothecrisis,countriessuchasGhanaandGabonsuccessfully issuedbonds in internationalcapitalmarket.Asaresultofthecrisis,thissourceofexternalfinancehasdriedupandseveralAfricancountriesarefacingdifficultiesissuingbondsininterna-tionalcapitalmarkets.Therehasalsobeenanincreaseinriskpremi-umsfacingAfricancountriesininternationalcapitalmarkets.AnotherchannelthroughwhichthecrisisandtheassociatedglobaleconomicslowdownareaffectingAfricancountriesisthroughdeclinesinwork-ers’ remittances and private capital flows. Recent forecasts indicatethatremittanceinflowsintosub-SaharanAfricawillfallbybetween1-2billiondollarsin2009.


Thedryingupof these important sourcesofdevelopmentfinancehasimplicationsforachievingtheMDGsinAfrica.Forexample,theexpecteddeclinesindevelopmentfinancewillreducetheabilityofAfricangovernments to fundhealth,education, infrastructureandnutritionprogrammeswithdireconsequencesforpovertyreduction.Thecrisiswillalsoaffectpovertyintheregionthroughtheimpactonunemployment.Recentstudiesindicatethatin2009,thenumberofunemployedpeopleinsub-SaharanAfricawillincreaseby3millionrelativetothe2007figure.Thesocialeffectsofthecrisiswillbepar-ticularlyhardfeltinAfricabecausetherearefewornomechanismsto cushion the effect on ordinary people, such as unemploymentbenefitsorsocialsecurityarrangements.

African countries have taken several steps in the form of policy re-sponsestomitigatetheimpactofthefinancialcrisisontheirecon-omies. These include interest rate reductions, recapitalisation offinancial institutions, measures to increase liquidity to banks andfirms,fiscalstimulus,tradepolicychanges,andregulatoryreforms.The measures adopted differ from country to country dependingonavailablefiscalspaceaswellasthedegreeofvulnerabilitytothecrisis.Forexample,oil-exportingcountriesintheregionhavemorefiscalspacetoconductcounter-cyclicalpoliciesbecausetheyaccu-mulatedhugeforeignreservesduringtherecentoilpricehikes. Inthenon-oileconomies,however,theabilitytoadoptfiscalstimulusmeasuresisseverelylimited.

Severalcountriesintheregionhavesetuptaskforcesorcommitteestomonitor thefinancial crisis andadvise thegovernmentonhowtorespond.Rwanda,Kenya,NigeriaandtheDemocraticRepublicofCongoaresomeexamplesofcountries thathaveadoptedthisap-proach.

SomeactionshavealsobeentakenattheregionalleveltoenableAf-ricancountriesdealwiththefinancialcrisis.Forexample,theAfricanDevelopmentBank(AfDB)setupaUS$1.5billionEmergencyLiquid-ityFacilitytohelpAfricancountriesweathertheglobalslowdown.Italsoestablisheda$1billionTradeFinanceFacilitytosupporttradeandinvestmentinAfrica.

Regionalorganisationshavetakenstepstofacilitateregionalconsen-susonhowtodealwiththecrisis.ECA,incollaborationwiththeAf-

186 Part Four

ricanUnionCommissionandAfricanDevelopmentBankorganisedaHigh-LevelForumontheFinancialCrisisforMinistersofFinanceandPlanningandGovernorsofCentralBanksinTunison12November2008.Inthecommuniquéissuedattheendofthemeeting,AfricanMinistersestablishedaCommitteeofTenMinistersofFinanceandCentralBankGovernorstomonitorthecrisisandrecommendpallia-tivemeasures,includinganAfricansubmissiontotheG20Summit.Aboveall,Africangovernmentsremaincommittedtopursuingsoundmacroeconomic,goodgovernanceandpolicyreformsthathadbeenthe key drivers to sustained growth and socioeconomic develop-ment.

ThepolicymeasuresadvocatedbyAfricawerepresentedtotheG20Summitbyitsrepresentatives,notablythePrimeMinisterofEthio-pia,whorepresentedthecontinentinhiscapacityasChairpersonoftheHeadsofStateandGovernmentImplementationCommitteeofNEPAD.HewasaccompaniedinthisrolebytheheadsofAUC,AfDBandECA.

SomeofthespecificareasforinternationalactionidentifiedbyAf-ricangovernmentsandaddressedby theG20Summit include theneedforresources;greaterpolicyflexibility;resistingprotectionism;andreformingtheinternationalfinancialarchitecture.

DevelopedcountriesshouldmeettheirexistingcommitmentstoAf-ricaandinparticularfrontloadfinancingfromthesecommitmentstoenableAfricancountries respondeffectively to theglobal slow-down.There is theneed foradditional resources fromthe follow-ingsources:saleofIMFgold;issuanceofnewspecialdrawingrights(SDRs);andsettingupofavulnerabilityfundtobefinancedthroughrichcountriesproviding0.7percentoftheirdomesticfiscalstimuluspackage.

Thereisneedforgreaterflexibilityinthepolicyframeworksthroughwhichassistanceisdeliveredtodevelopingcountries.TheG20Sum-mitrecognisedthisbyagreeingtoreviewtheflexibilityoftheDebtSustainabilityFramework.Similarly,theCountryPolicyandInstitu-tionalAssessment(CPIA)oftheWorldBank,whichisnowusedbymanydonors,shouldcompriseamixofperformanceandoutcomeindicatorsinadditiontospecificpolicyindicatorsandex-antecondi-tionalities.


Domestic stimuluspackages shouldnotbeused to introducenewforms of protectionism in trade, finance or investment. Every ef-fort should be made to bring the Doha Round of talks to a speedy conclusionwhileensuringthatthefinaloutcomekeepstotheinitialpromisethatitwouldbeadevelopmentroundthatwouldbringsig-nificantbenefitsfordevelopingcountries.

The international communityneeds to takeproactivemeasures toensurethatAfricancountrieshavevoiceandareadequatelyrepre-sented in internationalorganisationswheredecisionsaffectingtheworldeconomyaremade.

WearefacingachallengeofepicproportionsandtheG20wasrighttoemphasise that “aglobal crisis requiresaglobal solution”. Thesolutionsindeedrequiresolidaritybyall,developed,emerginganddevelopingcountriesalike.ThereisalsomuchforourcountriestolearnfromeachotherintermsofimpactandworkablesolutionsandIhopethatourdeliberationsherewillcontributetoongoingeffortsinthisregard.

188 Part Four

Today’smeeting is a follow-up to the High-Level Forum on thesamethemeorganisedbyAUC,AfDBandECAinTunisinNovem-

ber2008.WearemeetingtoreviewprogressontheimplementationoftheMonterreyConsensusatatimewhentheglobaleconomyisengulfedintheworstfinancialcrisissincetheGreatDepression.Thiscrisis is takingplaceatatimewhenAfrica is confrontedbymulti-ple crises of food and energy that have threatened the achievement oftheMillenniumDevelopmentGoalsintheregion.Thecrisisalsocomesatatimewhenthecontinentseemstohaveturnedthepageonthedarkyearsofthel980sand1990s,whenmostAfricancoun-triesexperiencedstagnant,andsome,evennegativerealgrowthinpercapita income. In recentyears,Africancountrieshavehad im-proved economic performance with growth averaging over 5 percentperannuminthelastfiveyears.Thereisconcernintheregionthatifappropriatestepsarenottakentodealwiththecrisis,thesegainsmightbeeroded.

Although the full impact of the crisis on African economies is not yet known,itisclearthatitwillaffecttheregionthroughdirectandin-directchannels.Sofar,thedirecteffectshavebeenlimitedtoweak-ening exchange rates and declining stock markets for some of the majorAfricanstockexchanges.Therehasalsobeenatighteningofcredit in domesticfinancialmarkets. The indirect effectswill arisemostlyfromtheimpactofadeclineinoutputinthemajoradvanced

Implementing Monterrey

Consensus at a time of global

crisisFollow up to High Level Forum of

implementation on Monterrey Consensus

Doha, Qatar1 December 2008


countriesondemandforAfricanexportsaswellasinvestmentflows,remittancesandtourismreceipts.

Inaddition,pressuretorecapitalisethebankingsectorandprovidesupport for ailing industries may force developed countries to cut downonofficialdevelopmentassistance(ODA)flowstoAfrica.GiventheimportanceofODAinfinancingsocialinfrastructure,thiswillbeamajorsetback for theregion.SinceAfricancountriesareheavilydependentonaid-fundedsocialprotectionprogrammes,reductioninaidcouldaffectthepoorconsiderablyandthusincreasetheirvul-nerability.AccordingtotheWorldBankandIMF,upto100millionpeople,themajorityinAfrica,areatriskoffallingintopoverty.

The crisis facing us today is unprecedented in terms of its magnitude andpotentialimpact.ItthereforerequiresboldandswiftresponsestocontainandreduceitsnegativeeffectsonAfricaneconomies.Al-thoughthecrisiswascausedbyeventsbeyondourshoresandcon-trol,concertedactionsareneededatthenationalandinternationallevelstofindaneffectivesolution.

LetmebeginwithnationalactionsthatareneededtominimisethenegativeeffectsofthecrisisontheAfricanregion.First,thereistheneedtostrengtheneconomicpolicymanagementaswellasdeepenreforms.Thisisnotonlycrucialforminimisingtheeffectsofthefi-nancialcrisisonAfricaneconomies,butalsoforcreatingasoundba-sisforsustainablegrowth.Africanministersandgovernorsofcentralbankscontinuedeepeningeconomicreformstoprovideastrongandsustainedbasisforgrowth.

Second,thefinancialcrisisunderscorestheimportanceofdevelop-ingasoundregulatoryandsupervisoryframeworkforthefinancialsector.Inthisregard,Africancountriesneedtoundertakeacompre-hensivereviewoftheirregulatoryandsupervisoryregimeswiththeviewof identifyingareas that require furtherstrengthening.Thereisalsoaneedtoensurethatallsectorsofthefinancialindustryaresubjectedtoproperregulationandoversight. Improvingstructuresofgovernanceandaccountabilityisalsocruciallyimportant.

Third,sincethepoorarelikelytobeardisproportionatelythebruntofthefinancialcrisis,appropriateformsofsocialprotectionarere-quiredtocushiontheeffectofthecrisisonvulnerablesegmentsof

190 Part Four

our society. Thiswill require increased expenditure on education,healthandinfrastructure.

Althoughdomesticactionsare critical tominimising theeffectsofthecrisisonAfrica, complimentaryactionsarealsoneededat theinternational level given the interconnected nature of the globaleconomy.Oneareathatrequiresurgentactionattheinternationallevelisthereformoftheinternationalfinancialarchitecture.Africancountriesdonothaveadequaterepresentationindecisionmakingorgansofinternationalinstitutionssetuptoregulatethefunctioningoftheinternationalfinancialsystem.ThereistheneedforAfricatohavemorevoiceintheseinstitutions.ThisisparticularlyimportantgiventhatrecentcriseshaveshownthatAfricancountriesareheav-ilyaffectedbyactionsandeventsemanatingfromactivitiesofdevel-opedcountries.

Another issue that needs to be addressed as part of the reform of theinternationalfinancialarchitectureishowtoimprovecrisispre-vention. In thepast internationalfinancial institutions suchas theIMF put more emphasis on policy reforms at the expense of crisis prevention.Itisimportantthatmoretoolsbedevelopedtoincreasemultilateral surveillanceofpolicies in areas suchasexchange ratepolicies,bankingsystemsandcapitalaccountmovements.Thereisalsoaneedtoimproveourunderstandingofthelinkbetweenfinan-cialsystemsandtherealeconomy.

OfficialdevelopmentassistancewillalsobeneededtoenableAfri-cancountriestocushiontheeffectsofthecrisisontheireconomies.Thisis importantgiventhelimitedfiscalspacethatmostcountriesintheregioncurrentlyhaveasaresultofthecrisis.Inthisregard,itisimportantthatourdevelopedpartnersfulfilltheircommitmenttodoubleaidflowstoAfricaby2010.

Letmeendbystatingthat thecurrentfinancialcrisismustnotbeusedasanexcusetorenegeonexistinginternationalcommitmentsmadetoAfrica.TogetherwemustensurethatthesecommitmentsareturnedintoactionsthatdeliverthesortofeconomicandsocialdevelopmentthatAfricancountriesrightlyneedanddeserve.OnlythenwillwebeabletotrulysaythatwehavemadethenewglobalpartnershipworkforAfrica.


ThismeetingistakingplaceatatimeofincreasinglygraveoutlookfortheglobaleconomyandbyextensiontheAfricaneconomy.

Thefinancialmeltdowninkeyeconomieshasspreadtootherpartsoftheworldandisalsoimpactingnegativelyontherealsector.Ac-cordinglywearefacedwiththeprospectofglobaleconomicreces-sionandslowdown,whichcontrarytotheviewinsomequarters,willcertainlyhaveseriousimplicationsforeconomicandsocialde-velopmentinAfrica,bothintheshort-runandintermediateterm.

Although we are unable to immediately measure the full impactof the crisis on African economies because of the rapidly changing situationandtime-lagsinreporting,thereareclearsignsofaslow-down.AnAfDBforecastfor2008cutthegrowthrateforAfricafrom6.5%to5%,whiletheIMFprojectedasimilardeclineof1.3%incon-tinentalgrowth for2009,which is the largest inany regionof theworld.ThereisclearevidenceoffinancialcontagionasallthefourmajorAfrican stockmarkets have fallen as dramatically as theUSstockmarket.Fallingcommodityprices,whichportendlowerexportrevenues,areofequalconcern,especiallyasmanyAfricancountriesarestillstrugglingtocopewiththelingeringeffectsofrecenthistori-callyhighfoodandoilprices.

There is also a strong likelihood of increased cost and reduced avail-abilityofcapitalduetoreducedprivateinvestment,officialdevelop-

Focusing on domestic resources

mobilization

African Economic ConferenceTunis, Tunisia, 12-14 November 2008

192 Part Four

mentassistanceandremittances.Tourism,which iskeyforseveralAfrican countries, is also likely to be seriously affected. I took theopportunityinseveralstatementsmadethisyeartocautionagainstthedangeroflettingAfricafallintothesevereeconomicconditionsreminiscentofthe1980sand1990swhenitseconomieswererav-agedbyseverebalanceofpaymentscrisis,hugeexternaldebtbur-densandlargefiscaldeficitsarisingpartlyfromdifficultglobaleco-nomicconditions.

It is true, of course, that Africa ismanaging itself better and thatimproved macroeconomic performance has contributed to recent averagecontinentalgrowthratesofabout6%.ThisissuehowevergoestoheartofakeypointthatIwishtomakeatthisstage,whichisthatthecurrentcrisisshouldnotbeallowedtodetractfromAf-rica’srecentgoodeconomicperformancenorfromeffortstoaddressotherchallengeswith long-termimplicationsforAfrica.DevelopedcountriesshouldcontinuetoshowstrongsupportforAfricandevel-opment and should not let the current crisis become an excuse for reducingofficialdevelopmentassistanceandinvestmentinflowsintoAfrica.Africa’spartnersmustkeeptotheircommitments,includingthosemadeintheMonterreyConsensus,whichrequireddevelopingcountriestoimproveeconomicgovernancewhiledevelopedcoun-triessupportedsucheffortswithincreasedflowsofofficialdevelop-mentassistance.Africahasdoneitspartanditsdevelopmentpart-nersshouldkeeptheircommitments.

Wemustofcoursecontinuetobearinmindthatdespitestrongsimi-larities,Africaneconomiesarenotallthesame.Sincethecrisiswillaffect countries indifferentways the response ineachcasemightneedtobedifferentiated.Forexample,theneedsofcountrieswithrelativelyopenfinancialmarketswilldifferfromthosewhicharelessintegrated into global financial markets. Similarly, countries withsubstantial foreignexchangereservesmayhavedifferentconcernsfromthosethathavebeen leftvulnerabletobalanceofpaymentsproblemsdue to recenthigh foodandenergyprices. To take theexampleofoilprices, recentdeclineswillproviderelief tonet im-portingcountrieswhileexporterswillhavetoadjusttodecreasingrevenues.

There is,moreover, a social dimension to the current crisis in thesensethatitisboundtoslowdownprogresstowardsachievingthe


MillenniumDevelopmentGoals. Our concern about recent stronggrowthinAfricawasthatitwasnotenoughtomeettheMDGsbythetargetdateof2015andthatitwasnotreducingincomeinequalitiesnorcreatingjobs. ReducedgrowthinAfricaasaresultofdeterio-ratingglobalconditionswillnodoubtfurtherlimitprogresstowardsachieving the MDGs and may reverse modest gains that have been madeinthisregard.

Attheinternationallevel,ithasbecomeimperativetofashionanewandimprovedinternationalfinancialarchitecturetobetterregulateglobalised financial flows, ensure better surveillance and take ac-count of the emergence of developing countries as key economic ac-tors.Itbecameveryclearintherecentpastthatunilateralactionbythebiggesteconomiesdoesnotworkbecauseweliveinaworldofeconomicinterdependence.Itisthereforehearteningthatthereareseveralkeyinitiativesbeingtakentocoordinatereformoftheinter-nationalfinancialarchitecture.

This gatheringhas auniqueopportunity toput across its pointofviewonsomeoftheissuesIhavejustraised.Inparticular,IwouldurgeyoutoadoptanAfricancommonpositionthatincludesastrongcallforAfrica’svoicetobeheardaroundthetableindecision-makingatthegloballevel.Weshouldmoreovercallforobserverstatusatglobaltalksonthefinancialcrisisandonanewinternationalfinan-cial architecture for our owndevelopmentfinance institution, theAfricanDevelopmentBank.

Worryingasthepotentialimpactofthecurrentcrisisseemstobe,italso points to an opportunity in the sense that our economies must bothindividuallyandcollectivelybegintofocusonthekeyissueofdomesticresourcemobilisation. Evidenceabounds fromother re-gionsthateconomicprogressreceivesasignificantboostfromhav-ingastrongerdomesticresourcebaseratherthanrelyingmainlyonexternalsupport.

Notwithstanding, thismeeting should issue a strong call to devel-opedcountries tomaintainandevenupscaleofficialdevelopmentassistancetoAfricacountries,inthespiritofcurrentcounter-cyclicalspending in theirdomesticeconomies. These issueswill of coursecomeupattheDohaReviewConferenceonFinancingforDevelop-ment taking place at the end of this month and Africa should go to

194 Part Four

Dohawithaclearpositionontheseandrelatedissues,suchasmo-bilisingforeigndirectinvestment,internationaltrade,externaldebt,andsystemicissuesinmonetary,financialandtradingsystems.

We are also gathered here for the African Economic Conferencewhosethemeis“Globalization,InstitutionsandEconomicDevelop-mentofAfrica”.Althoughthistopicwaschosenbeforethecurrentfinancialcrisisbrokeoutonafull-scale,itisveryaptbecauseitpro-videsagoodframework foraddressingthe impactof thecrisisonAfrica.Thisisbecausesolutionstothecrisis,whethertheyareshort,intermediateor long-termhavetobegrounded insoundeconom-ic research and empirical evidence. The challenge before Africanscholars and researchers and their counterparts from other regions whoalsoworkonAfricaneconomicissues,therefore,istobringtheircollectiveeffortstobearingainingabetterunderstandingofAfricaneconomies and searching for solutions to its socio-economic chal-lenges.

Iamconfidentthatworkingtogetherwiththiscommonpurposeinmind, theAfricanEconomicConferencewill grow into the leadingplatformwherepolicymakersandacademicscanmeetandinteractinamutuallybeneficialmanneronmattersofcriticalimportanceforAfrica’sdevelopment.


InpreviousstatementstothisCouncil,Ipointedtothestrongeco-nomicperformanceofAfricawithaveragegrowthratesofabove

5%,which though commendable, was not enough to achieve theMillenniumDevelopmentGoals.Againstthisbackground,ourcon-tinentnowfacespressingchallengesrelatingtotheglobalfinancialcrisis,climatechangeandthemaintenanceofpeaceandsecurity.

Thecurrentfinancialcrisisisunprecedentedinscaleandscopeandwillimpactongrowthandtradeaswellasoninvestment,tradecred-its, remittances, and tourism.Moreover, several African countrieshaveexperiencedvolatilityintheirstockmarketandexchangeratessincetheonsetofthecrisis.Aboveall,wemustbeconcernedabouttheimpactofthiscrisisonthefightagainstpoverty,whichhadal-readybeennegativelyaffectedbyrecenthistoricalpeaksinfoodandenergyprices.Inthisregard,itisessentialtokeepcommitmentstoscale-upofficialdevelopmentassistancetoAfricancountriessoastosustaingrowthinthecontinentandprotectvulnerablegroups.

However,weshouldnotpanicbutusethecurrentcrisisasanop-portunity to consolidate recent macroeconomic achievements and putmeasuresinplacetofurtherdiversifyoureconomies.Weneedto increase agricultural production and diversify intomanufactur-ingandservicesinordertoprovidejobsforourteemingnumberofunemployedyouth.Diversificationwillalsogiveoureconomiesthe

Consolidating macroeconomic gains at a time

of financial crisis

The 14th Ordinary Session of the Executive Council

of the African Union


196 Part Four

resilience todealwith future economic shocks, towhich they arenowvulnerable.

Diversification and domestic resource mobilisation were key ele-ments intheroad-mapforacoordinatedandcoherentAfricanre-sponsetotheglobalfinancialcrisisdrawnupbytheTunisMeetingofAfricanFinanceMinistersinNovember2008.TheyalsoestablishedaCommitteeofTenMinistersofFinanceandCentralBankGovernorstocontinuetoreflectontheissuesinvolvedandareportontheCom-mittee’sworksofarwillberenderedtotheforthcomingSummit.

Theeconomicandfinancialcrisisalsounderscorestheneedforco-operationandcollaborationamongstatesatvariouslevelsofdevel-opment.ThisappliesinparticulartoAfricaneconomies,whicharerelativelysmallandfragmented.Africa’sregionalintegrationagendashould therefore be sped up to give impetus to the NEPAD agenda onintra-Africatradeandalsotoinfrastructure–thethematicissuetowhichthenextSummitisdedicated.

Efficientandreliabletransportandenergyinfrastructurehasacriti-calroletoplayinsocioeconomicandphysicalintegration.Yet,un-der40%ofAfrica’spopulationhasaccess toelectricity,while sev-eral countries are experiencing severe power shortages that arecontributingtoaslowdownineconomicactivity.Africa’stransportnetworks remain similarly underdevelopedwhile the implementa-tionoftheYamoussoukroDeclarationonliberalisingairtransportinAfricacanbeimprovedupon.ThesedeficienciesimpactnegativelyonthecompetitivenessoftheAfricaneconomyandneedtobetack-ledthroughincreasedinvestment,betterregulatoryframeworksandinvestmentprioritysetting.

Climate changemust continue toengageour collectiveconscious-ness. Africa will bearmost of the impact of climate change andtherefore needs to factor inmitigation, adaptation, financing andtechnologyissuesintoitspolicyagenda.Actionisneededatseverallevelsbutanimmediateconcernrelatestoglobalnegotiationsthatwilldeterminethefuturemanagementofclimatechange.Wehavetoengageactively inthenegotiationprocesses inordertoprotectourinterests.Tosupportthisprocess,theAUCommission,AfDBandfinalised the Clim-Dev Africa programme, a crucial component ofwhichistheAfricanClimatePolicyCentre.


Africa’sabilitytomeetitschallengeshead-ondependsonthecon-solidationofpeaceandsecurityandthecessationofviolentconflictandcivilwars.ItisconsequentlyofgreatimportancethattheAfri-canUnionhasfocusedattentiononthisverycriticalsectorandthatithasplacedemphasisontheactualisationofitsPeaceandSecurityArchitecture,PostConflictReconstructionandDevelopmentaswellashumanrights,justiceandreconciliation.

TheUnitedNationssystemstandsreadyasalwaystoaccompanyAfri-ca’seffortsinalltheseareas.The9thAnnualMeetingoftheRegionalCoordinationMechanism(RCM)ofUnitedNationsagenciesworkinginsupportofAUanditsNEPADprogrammefocusedonarticulatingacoordinatedmultisectoralresponsetothechallengeposedtoAfricaby the foodcrisisandonUNsupport toclimate-relatedactionsattheregionallevel.ThefunctioningoftheRCMhasimprovedgreatlyintherecentpastandtheAUCommission,NEPADSecretariatandregionaleconomiccommissionsareallactivelyengagedinthispro-cess.

InNovember2008,theAUCommission,AfricanDevelopmentBankandECAco-organisedwithotherpartnersthe6thAfricanDevelop-mentForum,whosethemewas“ActiononGenderEquality,Wom-en’s Empowerment and Ending of Violence AgainstWomen”. TheConsensusStatementandActionPlanadoptedattheendoftheFo-rum provide a good basis for us to move from commitment to deliv-ery.Ourcooperationinorganisingthiseventreflectstheexemplarylevelof collaborationbetweenyour threepan-African institutions,whichisthrivingandremainsdeservingofyourcontinuedsupport.

TheUnitedNationsremainsfirmlycommittedtosupportingtheAf-ricanUnioninitsnobleeffortstobuildastableandrenascentAfrica.Africahasbeenmakingsteadyprogressbutisnowconfrontedwithseveralchallengesthatarenotofitsownmaking.Weshouldhow-everdrawontheconfidenceandself-beliefembodied inthecam-paignsloganofPresidentBarackObamasothatAfricacanactualiseitsdreamsandaffirmthat“Yes,wecan”.

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Weareallwitnesses,andindeedcontributedinvariouswaystotherecentstrongeconomicperformanceofAfrica,whichav-

eragednearly6%overthepastsixyears.However,recentforecastsindicatethattheeconomicoutlookforthecontinent in2009doesnotlookasbright,withthecurrentdownturnintheworldeconomyalreadyhavinganegativeimpactonAfrica.

Thecurrentcrisis isunprecedented inscaleandscopeandwillaf-fectgrowth,trade,investmentflows,tradecredits,remittances,andtourism. Itwillalsotranslate intoshortfalls inpublic revenuesandmakeitdifficultfornationalgovernmentstofinancetheirrecurrentandinvestmentprogrammes.Thesharpfallinstockmarketindicesin countries such as SouthAfrica,Nigeria, Egypt andKenyawhichhasresultedinsignificantwealthlossesisparticularlyrelevanttothisgathering.

Wemust,aboveall,beconcernedabouttheimpactofthiscrisisonthefightagainstpovertyandtheongoingefforttoachievetheMil-lenniumDevelopmentGoals. Recent progress in this area,whichhad already beennegatively affectedby recent historical peaks infoodandenergyprices,maybefurtherstalled.Wearealreadysee-ingmassivejoblossesandsharpreductionsinindustrialactivityinthedevelopedandemergingeconomieswhichwillnodoubttrans-lateintosimilarsituationsinAfrica.

Involving private sector in domestic

resource mobilization

The 5th African World Business Congress and

1st IGAD Investment Forum



Africangovernmentshavetakenconcertedactiontorespondtothecrisis.TheAfricanUnionSummitofHeadsofStatesthisyeardeliber-atedontheimpactofthefinancialcrisisonAfricaandagreedontheimportanceofAfricaspeakingwithonevoiceonthisissue.TheSum-mitwasprecededbyameetingofAfricanMinistersofFinanceandCentralBankGovernorswhichwasheldinTunisinNovember2008.On thatoccasion,aCommitteeofTenFinanceMinistersandCen-tralBankGovernorswassetuptomonitordevelopments,provideregularfollowup,andadvisethewidergrouponproposalsincludingthosetomitigatetheeconomicimpactofthefinancialcrisis.

TheTunismeetingalsotaskedtheAfricanDevelopmentBank,AfricanUnionCommissionandEconomicCommissionforAfricato“continuetoemphasizethegrowthagenda,strengthentheirrespectiveworkoninfrastructure,regionalintegration,aidfortradeandtheprivatesector”,aswellasresolvedtoembarkonmoreeffectivemobilisationofdomesticrevenuesanddeepeningofAfricancapitalmarketsforamorerobustmobilisationoflocalsavingsandfinancialintegration.

TheAfricanbusinesssectorwillbedirectlyaffectedbythesetrou-bling developments and should therefore be fully engaged in help-ingtodrawupmitigatingmeasures.Beforetheonsetofthecrisis,privateenterpriseinAfricasuffereddisadvantagesfromitsrelativelysmallscale,thesmallmarketsizeofindividualAfricancountriesandinadequate infrastructure. Thechallengebeforeusnowishowtoovercomethesehandicapswhileatthesametimeusingtheoppor-tunityofthecrisistoensurelong-termgrowthanddevelopment.

Africa’sprivatesectorhasacrucialroletoplayinthecontinent’sre-sponse to the crisis.Despite thehandicaps that they face,Africanbusinesses have demonstrated their capacity to mobilise capital,makerationalandprofitableinvestments,createemployment,andengageintrade.Theymustthereforebeactivelyinvolvedineffortsto raise domestic resource mobilisation, build infrastructure, en-hanceproductivecapacityandaugmentAfrica’shumancapitalbase.ThisgatheringshowsthatAfrica isnotshortofdynamicentrepre-neurswhocancontributetoitseconomicandsocialtransformation.

However,thetransformationofAfricaisbeyondtheresourcesandcapacitiesofindividualcountriesandcompanies.Itrequirescoher-entactionandcloserintegrationofcountries,whichinturncallsfor

200 Part Four

greater collaboration by all countries within specific sub-regions.Africamust accelerate the paceof regional integration to providebasis for competitivemarkets anddiversificationof its productionstructures.Inaddition,forthebusinesssectorinAfricatogrowandcontributetopovertyreductionandeconomicdevelopment,domes-ticinvestmentasaproportionofgrossdomesticproduct(GDP)mustimprovefromanaverage18%insub-SaharanAfricatobetween25%and30%,whichistheaveragerateinEastAsia.

By bringing together authorities and representatives from acrosscontinentsandalleconomicsectorstodiscussandshareknowledgeon the challengesof andopportunities for increasing growth, thisCongressclearlyappreciatesthatthetaskofeconomicdevelopmentisnotforpublicagentsalone.OurgovernmentsneedthesupportofallsectorsifAfricaistoattainitsvisionofgreaterprosperityandin-tegration.Ourobjectiveshouldthereforebetocontinuetopromotecollaborationbetweengovernments,thebusinesssector,thethreepan-AfricaninstitutionsofAU,ECAandAfDB,theregionaleconomiccommunitiessothattheirjointeffortyieldsvisibleprogressforAf-rica.

ItisagainstthisbackgroundthatIwishonceagaintosalutetheini-tiative of the African Business Roundtable (ABR) and Intergovern-mental Authority onDevelopment (IGAD) in jointly organising the5thAfricanWorldBusinessCongressand1st IGAD InvestmentFo-rum. This collaborationwill surely promote and boost investmentopportunitiesinthissub-regionandisthereforemostwelcomeandcommendable.

ECA, in collaborationwith all its partners,will giveABR and IGADallpossiblesupport,especiallyintheareasofcapacitybuildingandinstitutionalstrengtheningsothattheycanachievethenobleobjec-tivesforwhichtheyweresetup.


Although the financial crisiswas triggered by events in the ad-vancedcountries,itsimpactisbeingfeltinalldevelopingcoun-

tries.ThecrisishasimperilledrecentimprovementsinAfricanecon-omiesandcompounded thedeleteriouseffectsof last year’s foodandenergycrisis.

ItisnowevidentthatinitialsanguineviewsthatthecrisiswouldhavelimitedimpactonAfricabecauseourfinancialsystemswerelessin-tegratedintoglobalfinancialmarketswerewrong.Thespreadofthecrisis fromthefinancialsectortotherealsector indevelopedandemerging economies soonmade it clear thatAfricawould feel itsnegativeimpact.This isnowclearlyevidentfromtheslowdownofgrowth,weakeningcurrencies,reducedinvestmentflows,decliningstock market indices, sharply reduced commodity exports, remit-tancesandtourismreceipts.

Wearenowfullyconsciousof thesenegativedevelopmentsbut itremainsessentialtocapturethespecificimpactofthecrisisonindi-vidualcountriesandsub-regions.Itisonlybygainingafullempiricalappreciationoftheextentofthecrisisthatwecanmaketherightpolicychoices.ThisiswhythethemeofthisRoundtable–AfricaandtheFinancialCrisis:anAgendaforAction-isespeciallyrelevant.ItcertainlypointstoaneedforustobegintopaycloseattentiontowhatthecrisisportendsforAfricagoingforwardintothefuture.

Africa and the financial crisis:

An agenda for action

Statement to the 2009 Ministerial Roundtable of the African

Development Bank

Tunis, Tunisia, 12 May 2009

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Permitmetoaddressouroverarchingthemefromtheviewpointofacross-cuttingsetofissuesthatoughttoinformourdeliberations,includingwhatthecrisisimpliesforthestate-marketbalance;finan-cialmarkets;socialdevelopment,peaceandsecurity;officialdevel-opmentassistance;statecapacity;andtheinstitutionallandscapeofdevelopmentfinanceinAfrica.

Theresponseof thedevelopedandemergingmarkets tothefinan-cialcrisishasre-awakenedthedebateabouttheappropriatebalancebetweenstatesandmarkets.Themassivestateinterventionsbyde-velopedcountries in thefinancialand real sectors topreventbank-ruptcies,stimulatedemandandprotectjobsarenowforcingare-thinkinAfricaofwhethercurrentpolicyregimeshavenottiltedtoofarinfavourofthemarket.Theissue,however,shouldnotbeoneofchoos-ingbetweenthesetwoinstitutionalformsbutthatoffindingtherightbalancebetweenthem,whiletakingaccountoffactorssuchasstatecapacity,effectivenessofmarketsandglobalnormsandrules.Moreo-ver,Africashouldnotdiscardthevisiblebenefitsofreform,suchasimprovedmacroeconomicmanagementandbettergovernance,whileseekinggreaterpolicyspacetointroducefiscalstimuluspackagesintheireconomies.

Theglobaleconomicandfinancialcrisisisfurtherevidenceofthein-herentvolatilityoffinancialmarketssincetheywereliberalised.Theempiricalevidence is thatthe incidenceofthefinancialcrisis intheperiodafter1973(collapseoftheBrettonWoodsfixedexchangerateregime)hasbeenfargreaterthantheperiodbetweenthenandtheSecondWorldWar.Onestudyfoundforinstancethattherewere139financialcrisesindevelopedandemergingeconomiesbetween1973andtheendofthetwentiethcenturyascomparedto38between1945and1971.1Thisvolatilityhasbeenduetoacombinationof regula-toryfailuresorunmanageableforeigncurrencyliabilities,butitisalsocostlyintermsofthecontagionandrecessionsithascausedaswellasinthepolicyresponsesithasprovoked.Keyinthisregardarethehugeglobalimbalancesasreflectedinthehighreservesthatseveralemerging economies have maintained to prevent the problems that theyfacedinpreviousfinancialcrises. This isaglobalproblemthatrequiresaglobalsolutionandweshouldspendsometimeponderingwhereAfricafitsintotheequationandhowbestitcanconveyitsown

1 Eichengreen, B. and M. Bordo, (2002) “Crises Now and Then: What Lessons from the Last Era of Financial Globalization”. National Bureau of Economic Research Working Paper 8716


viewsonthismattertotherestoftheinternationalcommunity.

Thecrisiswillhaveserious implicationsonAfrica’sabilitytoachievetheMDGsandmightevenreversepreviousgainsmadeinthisarea.Itisestimatedthatthefoodandfuelcrisisoflastyeartippedover100millionmorepeopleintoextremepovertyandthesegroups, includ-ingthosewhowerealreadypoor,willbearthefullbruntofthecrisis.Thepoorwillhave to reduce thebasic services theyconsumebothintermsofqualityandquantityandmaynotgethelpfromtheusualsources. Expecteddeclines indevelopmentfinancewill reduce theabilityofAfricangovernmentsto fundhealth,education, infrastruc-ture,sanitationandnutritionprogrammeswithdireconsequencesforjobs and poverty reduction. Increased unemployment and reducedremittancesmeansthatthepoorwillnotgetmuchsupportfromtheextendedfamilysystem.Indeed,thesocialimpactofthecrisiswillbeparticularlyhardfeltinAfricabecausetherearefewornomechanismstocushionitseffectonordinarypeople,suchasunemploymentben-efitsorsocialsecurityarrangements.

OneofthegreatestachievementsinAfricaoverthepastdecadeandthe half has been a marked improvement in peace and security in the continent.AccordingtoresearchemanatingfromtheSwedishInter-nationalPeaceResearchInstitute(SIPRI)thenumberofmajorarmedconflictsfellbyoverhalfbetween1990and2003.Ofcourse,itisnotthenumberofconflictsthatmattersbutthehumanmiserythattheyproduce and their negative effect on productive activity, especiallyfarming,aswellasoninvestment,infrastructureandsocialdevelop-mentsthatshouldconcernus.Experienceteachesusthateconomichardship and the scramble for increasingly scarce resources may un-derminehardwonpeaceandsecuritygainsinAfrica.Thepotentialfor such outcomes is vividly illustrated by the riots that broke out in severalofourcountrieslastyearasaresultofhighfoodprices.Wemustaccordinglyseekpolicysolutionsthatwillhelptoimproveratherthanexacerbatesocialandpoliticaltensions.

Fearshavebeenexpressedaboutreducedofficialdevelopmentassis-tance to Africa as developed and emerging economies focus on their owndomesticwoes.However,thereisthewiderdebateonaid,trig-geredinpartbytheworkofWilliamEasterlyandDambisaMoyoaboutthedesirabilityofcontinuedaidflowstoAfrica.Ifeelthattheissueneeds to be fully debated upon and should be fully taken into account

204 Part Four

inarticulatingresponsestothefinancialcrisis.Sufficeittosay,atthisstageneither sideof theargumentquestions theneed forhumani-tarianassistanceunderwhich rubric I includesocial sectorssuchaseducation,health,nutritionandsanitation.Buttherearewiderissuesthatshouldengageourattention,includingtheuseofaidtostimulateproductiveactivity.

IwishtostressthatbuildingstatecapacityinAfricaiscentraltoena-blingthiscontinenttorespondtoitschallenges.Africanstatesneedthe capacity to envision development programmes and plans and to beable to influenceeconomicand socialoutcomesusing thema-chineryofgovernment.Irrespectiveofvaryingviewsontheproperroleofthegovernmentinaneconomy,astateshouldhavetheca-pacitytosuccessfullyundertaketasksthathavebeenidentifiedbysocialandpoliticalprocessesasproperlybelongingintherealmofpublicpolicy.SomefactorsthataffecttheabilityofAfricanstatestoplaythisroleproperlyarethebraindrainofqualifiedAfricans;theflightofqualityfromthepublictotheprivatesector;andthedeter-minationoftherespectiverolesofgovernment;theprivatesector,andcivilsocietyorganisations.

Justas the restof theworld is reviewingexistingglobalmonetaryandfinancialinstitutionssuchastheIMF,WorldBankandFinancialStability Board it is perhaps also appropriate for Africa to consider whetheritscurrentarrangementsinthisareaareoptimal.Wehavean African Development Bank which has responded admirably tothe crisis, including through the establishment of aUS$1.5 billionEmergency Liquidity Facility tohelpAfrican countriesweather theglobalslowdown. Ithasalsoestablisheda$1billionTradeFinanceFacilitytosupporttradeandinvestmentinAfrica.ShouldwenotbeconcentratingonsupportingtheAfDB’seffortsinsteadofembarkingonawholesalerestructuringofAfrica’sfinancialandmonetaryland-scape? Similarly, shouldwenot be exploring options for regionalorsub-regionalstimuluspackagesgiventhatsomeAfricancountrieshavesufficientfiscalspaceasaresultofrecentcommoditybooms?

Thechallengewearefacingisahugeoneandthereismuchthatwecanlearnfromeachothertoarriveatdurablesolutions.


Giving hope to Africa’s youth

17th Ordinary Council of the African Union Executive Council

Malabo, Equatorial Guinea26 June 2011

It is now common knowledge that Africa displayed relative resil-ience to the fall-out of the global economic and financial crisis.

There is also much to cheer in the fact that Africa is increasing recog-nizedasadestinationforforeigninvestmentandasaglobalgrowthpole. Ofcourse,Africa’sgoodperformanceisrelativeinthesensethatwhilegrowthratesfellquitesharplyto2.4%in2009itwasnotasbadasotherregions.Itsrecoveryrateof4.7%in2010wasalsoswifter.ThereishowevernoreasontobetoosanguinebecausethisrateisfarbelowtheminimumgrowthrateestimatedtoachievetheMDGs.

Moreover, as I mentioned to you in January, there were severaldownsiderisks.Thesehavebeenpartiallyactualizedasprojectionsfor Africa’s economic performance in 2011 have been lowered to3.7%.Thisispartlyduetoglobaleventslikehighfoodandfuelpric-es,thedevastatingearthquakeandtsunamiinJapan(agreatcoun-trytowhichIextendsincerecommiserationsonthelossoflifeandproperty)andtroublingfiscalconditionsinEurope.Politicaldevelop-mentsinNorthAfricaalsocontributedtothedownwardrevisionofgrowthestimates.

Africa’scommitmenttoimprovedgovernancesincetheadoptionofNEPADandAPRMwasnotmisplacedandmightevenhaveprovidedasafetyvalveinsomecountriesbyhelpingtomaintainpoliticalsta-

206 Part Four

bilityinthefaceofsevereeconomicshocks.Indeed,Iseetherevolu-tionsinEgyptandTunisiaandchangeselsewhereinNorthAfricaasev-idenceofthedesiretoupscaleandimprovegovernance.Whileyouthunemploymentwasafactor,thedesireforgreaterfreedom,demandsforgreateraccountabilityanddistastewiththescaleofcorruptionalsoplayedasignificantroleinthedemandforchange.WenowneedtomovetoimplementationoftherecommendationsofAPRMNationalProgrammesofActionwhilepayingcloserattentiontopolicyonland,ourgreatestasset,andthehugeillicitfinancialoutflowsfromAfrica.

At thisstage, Iwishtoposit thatcurrenteconomicandgovernanceconditionsaremerelyasnapshot.Wenowneedtobegintoconnectthedotsofseveralemergingtrendswhichindicatethatweareonthecuspofanewerawhosefinalshapeisyettoemerge.Globalizationhaschanged thenatureof theworldandwenowhave tocontendwithrecurrenteconomiccrisis,worseningenvironmentaldegradationandinadequateandjoblessgrowth.Whenwefactorintheriseoftheemergingeconomies,fasterICTenabledflowsandchangingglobalde-mographicsthenitisobviousthatwehavetofindnewwaysofcopingwiththeworldthatwenowlivein.

Whilecopingwithcurrentchallenges,wehavetoalsothinkintermsofthefuturewhichiswhytheissueof“YouthEmpowermentforSus-tainableDevelopment”isanaptthemefortheSummit.TheworryingtruthisthatyoungpeopleinourcontinentliveintherapidlychangingworldthatIhavejustoutlinedbutforwhichtheylackadequateprepa-rationandguidance.Thelifeexperienceforamajorityofthemisofjoblessness, poverty and instability aggravatedby conflict, displace-mentandhealthpandemicssuchasHIV/AIDS.Ouryouthliveinsuchdespair that they are vulnerable and likely targets for recruitment into militantactivities.

Theobvious solution then is to channel their energies intopositiveandproductiveactivitiesbyempoweringtheminamannerthatpro-motessustainabledevelopment.AgoodstartingpointwouldbeforourgovernmentstoprovideacompellingvisionandrealizableplansforthefuturethatwillgivehopetoAfrica’syouth.Inthisregard,attheirmeetinglastMarch,theMinistersofFinance,PlanningandEco-nomic Development pledged to develop inclusive policies to address widespread poverty and youth unemployment while continuing tomainstreamrelatedgenderconcerns.


WemustatthesametimeinvestintheeducationofAfrica’syouthandequipthemwithskillsforcopingintoday’sworld.Withonly5%ofourpopulationsenrolledinuniversities,everyeffortmustbemadetoen-ableAfrica’syouthtobecomegoodentrepreneurs,managersorwork-ers.Thismuststartfromtheadolescentstagewhenformaleducationisstillon-goingbecause,veryoften,thisiswhenmanyyoungonesarecontendingwithadultrolesaschildlabourersandchildsoldiers,andpartakinginadultvicessuchassexworkanddruguse.

The empowerment of Africa’s youth alsomeans reducing the highratesofunemploymentintheirranks.RecentstudiesshowthatyouthunemploymentinAfricaisover20%inmanycountriesbuteventhisfigure underestimates the gravity of the problem. A strategy thatcombinespublicworksprogrammesandenhancedinvestmentinin-frastructureandproductionisneededtotapintothenexusbetweenjobcreation,sustainabledevelopmentandsocialstability.According-ly,wemustnowpaygreaterattentiontogreengrowth,whichcouldleap-frogoldandenvironmentallyunsustainabletechnologiesanden-ableAfricancountriestotakeadvantageoftheircurrentpotentialinagriculture,tourism,forestry,andeco-industries.

Another key issue is that of voice and inclusion. The participationof young people in societal processes can be enhanced by harness-ingsocialmediainapositivewaysothattheycanplayamoreactiveroleandtransitfrombeingmereobserverstoparticipantsinshapingtheirowndestiny.Astheyhavethegreateststakeinthefuturesus-tainabilityofourplanet,Africa’syouthshouldbemobilizedtogetoutthemessageofsustainabledevelopment.Indeed,theyalsohavetocontributebybringingtheirdynamismtobearthroughideas,takingbusinessrisksandcontributingtoeducatingandmobilizingtherestofsocietybehindagreedgoals.

Theselaudableobjectiveswillbedifficulttoachievewithoutmeaning-ful integrationwhich iswhywemustallwelcometherecentagree-mentreachedbyCOMESA,EACandSADCtolaunchnegotiationsfortheestablishmentofa freetradearea. Regional integrationwillbeboostedsimilarlybythedevotionofnextJanuary’ssummittointra-AfricatradeandthedecisionoftheG20toidentifysourcesoffinanceforbuildinginfrastructureindevelopingcountries,includinginAfrica.TheG8/AfricaJointDeclarationcallingforAfricatoreceivepriorityininfrastructurefinancingisalsoencouraging.

208 Part Four

All hands must similarly be on deck to ensure that the outcomes of theon-goingclimatechangenegotiationswhichcontinueinDurbanlateronthisyearandtheRio+20SummittakingplaceinBrazilnextyeartakeaccountofAfrica’sinterestsandconcerns.InthecaseofRio+20,ECAisworkingcloselywiththeAUC,AfDBandUNEPtopre-parethebackgrounddocumentsthatwillguideAfrica’snegotiatingposition. Wearealsoorganizing theAfricanRegionalPreparatoryConferenceforRio+20inOctober2011,whereacommonAfricanpositiononthenegotiationswillbeadopted.IcallonourmemberStatestocontinuetopayverycloseattentiontothisprocesswhoseoutcomeswillaffectthefuturegrowthtrajectoryofourcontinent.

The United Nations system in Africa continues to strengthen itspartnerships in support of continental development andwith theconclusionofthereviewoftheTenYearCapacityBuildingPlan,theUNRegionalCoordinationMechanism forAfrica ispoised tobuildon previous achievements by developing concrete capacity building programmes for theAfricanUnion, itsNEPADprogrammeandtheRegional Economic Communities. RCM-Africa resolved at its 11thsessionwhichwasco-chairedbytheAUCommissionthatanannualreport on its activities should henceforth be submitted to the AUSummitthroughappropriateorgans.

There ismuchtobedonebut Iamencouragedbyyouractiveen-gagementonbehalfofAfricaandwishtoreiteratethattheUnitedNations, under the leadership of Secretary-General Ban Ki-Moonwhohasjustbeenre-electedwithyoursupport,standsreadyasal-waystoaccompanyyoureffortstobuildtheunitedandprosperousAfricathatweallaspiretolivein.

ONAFRICA’SSPECIALNEEDS

Part Five


Africa has a large variety of significant special needs. Indeed,worldleadersbeganthenewMillenniumbyofferingduerecog-

nitiontotheseneedsinthehistoricMillenniumDeclarationin2000.

Followingthe leadanddeterminationshownbytheAfricanUnionandtheNewPartnership forAfrica’sDevelopment (NEPAD),worldleaders situated these special needs at the very heart of United Na-tionsreformsintheOutcomeDocumentofthe2005WorldSummit.

Attentiontothesespecialneeds—intermsoftheirsignificancebutequally,theirurgency—isalsoattheheartoftheworkofECA,asisreflectedinthefactthattheyformthesecondpillarintheReposi-tioningPlan.ItisinthisregardthattheCommissionhasbeenfocus-ingonhelpingAfricannationstodeveloptheircapacitiesanddeployknowledgeinthepursuitoftheirdevelopmentobjectives.

Whilesomeofthestatementsinthisclustercouldeasilyhavefitintosomeotherclusters,therealityisthatsometimes,anindividualfo-rumprovides the Executive Secretarywith the opportunity to ad-dressaparticularsubjectsomewhatdifferently.

Similarly,thereareaudiencesthathefacesthataffordhimtheop-portunitytotouchuponvariousthemesinoneaddress.Inanumberofforums,hetakestheopportunitytoexploretheinterrelationship

Introduction

212 Part Five

betweensubjectsthathaveabearingontheworkofECA.Wehavetherefore brought together under this cluster several such state-ments.

Inoneofthestatementsrepresentedhere,theExecutiveSecretaryquotesNelsonMandela,fromtheOAUSummitin1994,inwhichthereveredstatesmancalledforanAfricanRenaissance.

“We know thatwehave it in ourselves, asAfricans, to change allthis,”Mr.Mandelasaid,“Wemustassertourwilltodoso.Wemustsay that there is no obstacle big enough to stop us from bringing aboutanAfricanrenaissance”.

Paraphrasinghim,Mr.JannehsaidofAfrica,“Wemustre-assertourwilltoachievetheMDGsbythetargetdate.”

It is Africa’s special needs that must be addressed on the road to achievingthoseMDGsandsustainabledevelopment. Inthestate-mentsincludedhere,theExecutiveSecretarycoversavarietyofis-sues that include climate change, gender, ICT,NEPAD, knowledge,youthsandHIV&AIDSandreflectsthegravityofthechallenges,ashe calls on his audiences to understand their role and the urgency of pushingfortheachievementofsettargets.

ThesestatementscoverthespectrumoftheworkoftheECAintack-lingvariousgeneralandspecificdevelopmentchallenges,reversingthemarginalization of Africa in the globalization process, buildingstronginstitutionsandensuringgoodgovernance,aswellassharingknowledgeandbestpractices.

Some of the addresses are powerfully cross-cutting, and somethemesrecurfrequently,suchasgenderequality.Onthesubjectofland,forinstance,theExecutivesaysinoneaddress:“Ifwomen,whocomprisemorethan50%ofAfrica’spopulation,loseoutondevelop-ment,Africanfamilieslose,andindeed,thecontinentloses.InorderforAfricatorealizethefullpotentialofallmembersofsociety,moremust be done to ensure that land policy reforms are accompanied by theappropriatemechanisms thatallow for the implementationoflawsandprogrammestoguaranteewomen’srightstoland.”


Inyetanother,hesaystotheparticipants,“IfAfricaistoattaintheMillenniumDevelopmentGoalsandsustainedgrowthanddevelop-ment,itcannotaffordtoexcludeand/ormarginalisehalfofitspopu-lation,itshumanresourceasset-thevaliantandindustriouswomenofAfrica-fromitsdevelopmentagendaandprogrammes.”

214 Part Four

TheadoptionoftheMillenniumDeclarationinSeptember2000,showed a commitment byMember States to collectivelymak-

ingtherighttodevelopmentarealityforeveryone,andtofreethehumanracefromwant.Theyacknowledgedthatprogressbasedonsustainableeconomicgrowthmustfocusonthepoor.Atthesametime, the Declaration set eight Millennium Development Goals(MDGs), and called for the promotion of “a coordinated strategy,tacklingmanyproblemssimultaneouslyacrossabroadfront”inor-dertomeetthemby2015.

In that context, the environmental issues are, without doubt, anessential element of a comprehensive approach to achieving theMDGs,especiallyinAfrica.

Following the commitmentmade in the 2005World Summit out-come document to address the serious challenge posed by climate changethroughthecreationofaworldwideearlywarningsystemforallnaturalhazards,thisworkshopprovidesatimelyopportunitytoconsiderhowclimateinformationcanbeeffectivelyusedinsupportofeffortstoachievetheMDGsinthisregionaswellastheactionsthatmustnowbetakenontheground.

Theimperativeforactionisclear.Inrecentyears,humanityhashadtocontendwithanincreasingspateofweather-relateddisasterrisks,

Improving climate data for development

Workshop on Climate Information for Development

in Africa



such as floods, droughts, hurricanes, heatwaves, cold spells, andlandslides, all attributed to climate variability and change.Africa’ssituation is so critical, due todroughtandflood, thata recent re-portoftheUSNationalIntelligenceCouncilsayssomeAfricancoun-triesare“soburdenedbytheirextremeclimate-relatedproblemsofhealthanddisease,andpoorgeographicpositionthatitisnotclearthatanyeconomicmodeloffersthemapathtowardsdevelopment”.

Droughts impact human livelihoods directly through crop loss that canleadtofamineifalternativefoodsourcesarenotavailable.Thisisapredicamentofparticularconcerntomanycountries.Inthatregard,theonusisnowonallofustoworkhardertofindsolutionstotacklethe immediate causes and consequences of drought in this regionandelsewhereinAfrica.

Wealsoknowthatthereareoftenfurtherchallengesdownthelineasaresultofdroughts.Indirectly,watershortagecontributestotheproliferationofdiseases,aspeoplelackwaterforbasichygiene.Fur-thermore,ifthedroughtpersists,peopleareoftenforcedtomigrate,resulting inarefugeepopulationandthemultiplehealthproblemsfacedinrefugeecamps.TheFoodandAgricultureOrganization(FAO)estimatesthatabout800millionpeopleinthedevelopingworlddonot haveenough to eat, and that although foodproduction is stillontherise,suchincreasesaremainlyinthedevelopedworld,whereproductionsubsidiesplayanimportantrole.

ForAfrica,wherefarmersbearthebruntofthesubsidiesgiventotheircounterpartsinthedevelopedworld,theotherextremetodroughtshasbeenfloods.Floodsreducetheassetbaseofhouseholds,com-munitiesand countriesbydestroying standing crops,dwellings, in-frastructure,machinery and buildings. In some cases, the effect isdramatic,asinthecaseofMozambiquein2000wherefloodingcost700lives,lefthalfamillionpeoplehomeless,andcausedthecoun-try’spromisingeconomicgrowthratetofallfromeightpercenttotwopercentthatyear.

The irony isthatfloodplainsalsocomewithenormousadvantages.The fertile alluvial soil of floodplains is ideal for higher crop yieldsandhelpsreducevulnerabilityofthefloodplainoccupanttoawiderangeofotherrisks,suchasdrought.Furthermore,floodplainstypi-callysupportveryhighdensitiesofhumansettlement,andthegross

216 Part Five

domestic product (GDP) per square kilometre is high in countrieswhoseterritoriesarecomprisedmainlyoffloodplains.AnexampleistheNetherlands,whichhasthehighestGDPpersquarekilometreinEurope.

ThesetwoextremesalsohaveadirectimpactonAfrica’sfreshwater,anessentialdriverofterrestrialandaquaticecosystems.Freshwaterecosystemssuchasponds,lakes,wetlandsandriverchannelsprovidesupportforaquaticandterrestrialwildlife,andsupplyenvironmentalgoodsandservices.Thus, formillionsofpeople,particularly in theruralareas,whodependdirectlyonnaturalresourcesorbenefitfromecosystems,providingwater for theenvironmentand forpeople isoneandthesamething.Forthem,aswiththerestofus,watermakesthedifferencebetweenhungerandbuoyancy.

Yet, according to some climate scenario analysis,morepeoplewillfacetheriskofhungerby2080,duetotheeffectoffutureclimatechange.Indeed,theGDPoftheagriculturalsectorinthedevelopingregions,especiallyinAfrica,wouldbenegativelyimpactedbyclimatechange, and since high-tech solutions do not always reach poorerfarmerswhorelyonrainforcropsustenance,theywillpaythehigh-estprice.

FAOsayswhileclimatechangeisnotexpectedtodepressglobalfoodavailabilityinthenextthreedecades,itmayincreasethedependenceof developing countries on food imports and accentuate food inse-curityforvulnerablegroupsandcountries.Otherstudiesshowthat13Africancountries,whichalreadyhave87millionundernourishedpeople,maylosecerealproductionpotentialinthe2080sforthreeclimatemodelsandacrossalltheemissionscenarios.

Whilediversificationisanaturalstrategyforspreadingriskacrosssev-eralenterprises,suchstrategiesareonlyeffectiveiftheriskdoesnotco-varyacrosstheenterprisesinvolved,whichoftenhappensinruralAfrica.ManysectorsoftheAfricaneconomydependindirectlyonag-ricultureandwhenshocksarise,theyaffectallfarms.

Itisacauseandeffectscenariowhichindicatesthatvulnerabilityismaintainedbyeconomicandotherconditions.Itisreproducedbytheactivitiesthateithersustainunsafelivingconditionsforsomeordis-empowerthem;changingonlyifthoseconditionsaretransformed.


Italsoshowsthatvulnerabilityistheproductofmanyprocesses,in-cluding poverty,marginalisation, social instability, conflict, environ-mentaldegradationandfloodplainsettlement.

An emerging body of evidence indicates that natural resources mis-management contributes to the vulnerability of human systems to disaster,andthatenhancedmanagementcanprovideatool for itsreduction.

ECA is aware thatmanaging climate-relateddisaster risks is key toachievingtheMDGs.Forexample,thelackofinformationabouttheonset, intensityandcessationof rainfallmaycause farmers to losetheirassets,includingcropsandevenseed,affectingthelivelihoodsofmanyAfricanhomes.Sustainablelivelihoods,foodsecurity,pover-tyreductionandsustainableenvironmentalmanagementarethere-forelinkedtoclimatevariabilityandextremes.

Availableevidenceshowsthatclimateinformationcanbedevelopedwithriskmanagersforaddressingspecificproblems.Specifically,cli-mateinformationcanbeusedtomanagerisksrelatedtofarm-levelagriculture,foodinsecurity,livestocktrade,andreservoiroperation.

Inthecaseoffarm-levelagriculturefor instance,experienceshowsthat the most serious problems confronting farmers include inad-equateorunreliablerainfall,aswellaslackofknowledge,andthatseasonal rainfall forecasts could enhance viable management re-sponsesrelatedtothetimingandmethodoflandpreparation,cropand cultivar selection, planting strategy, weeding and soil fertilitymanagementaswellaspestmanagement,andothercriticalagricul-turalfactors.Inthesameway,climateforecastsonpossibledroughtsand food shortages can help governments and humanitarian agencies planaheadfortimelyassistance.

However,thevalueofclimateriskmanagementisfundamentallyde-pendentonthequantityandqualityofthebasicclimateobservationsthatareavailable.InAfrica,wehaveseenthatsomeofourimportantnetworksaredeterioratingandthatothershaveneverbeenexten-siveenoughtoallowfortheriskmanagementthatisrequiredtoop-timisesustainabledevelopment.

A critical requirement of sustainable development is the capacitytodesignpolicymeasuresthatexploitsynergiesbetweeneconomic

218 Part Five

growthobjectivesandthosefocusedontheenvironmentinaccord-ancewithnationalstrategies.

Inthatregard,climatechangemitigationstrategiesofferaclearex-ampleof co-coordinatedandharmonisedpolicies that takeadvan-tageofsuchsynergies.Thisiswhythisworkshopisverycrucial.Itisaworthwhileinvestment,fundamentaltoalldevelopmentprojectsinhigh-riskareasinAfrica.

Wemustcomeupwithrecommendationsonways tomainstreamclimate riskmanagement into national policy-making processes inAfrica.Aswellproperconsiderationmustbegivento thecreationofappropriatecommunicationandinformationchannelssothattheelementsthatmakeuppoliciesatdifferent levelscanoperate inamutuallyreinforcingmanner.Ialsowishtoexhortyoutoexplorethepossibilityofconvening“trainingoftrainers”workshopsonthecli-matedimensionsofriskmanagementatthevarioussub-regionalof-ficesofECAandtheAfricanInstituteforEconomicDevelopmentandPlanning (IDEP), so that in thenear future, thecapacityofAfricancountriesinclimateriskmanagementcanbefurtherdeveloped.

ECA is proud to be in this partnership because of the significantcontributionthatclimateriskmanagementcanmaketoourmutualquest to attain theMDGs andhelpAfrican countries develop andimplementhomegrownsolutionstosomeofthechallengesfacingthecontinent.


Ourdeliberationsat thisSideEventcomeatapivotalmomentintheglobaldialogueonclimatechangeandwhatshouldbe

doneaboutit.Thereisnowastrongconsensusonthefollowingis-sues:climatechangeisanincreasinglythreateningglobalchallenge;there is need to increase the pace of response through more ef-fectivestrategiesattheglobal,regional,sub-regional,nationalandlocallevels;andthereisneedtochartanewpathtodevelopment.

Aftermanyyearsofinactiononthisissue,wearenowwitnessingaflurryofnewactivitiesinresponsetomajorscientificwarningsthatwe cannot continuewith “business asusual” ifwewant toavoidunprecedentedglobaleconomic,socialandenvironmentaldisrup-tions.

Addressingglobalchallengesisacomplicatedandmultifacetedun-dertaking. To highlight ourmodest efforts at theAfrican regionallevel,IwillthereforediscussonlytwoissueswhichweatECAseeasprioritiesincreatinganeffectiveresponsetotheclimateanddevel-opment challenge in Africa before moving on to outline our current regionalresponsetoclimatechange.

Although Africa contributes only about 3.8% of total greenhousegasemissions, itscountriesareamongthemostvulnerabletocli-matechange intheworld.Thisvulnerabilityof theregionderives

Addressing the impact of

climate change in Africa

Conference on Climate Change: Regional Commissions’ Side

Event - Regional Perspectives on Addressing Climate Change

Bali, Indonesia12 December 2007

220 Part Five

fromthegeographicallocationofmanycountries,characterisedbyalreadywarmerclimates,marginalareasthataremoreexposedtorainfallvariability,poorsoilandfloodplains;theheavyrelianceofmostAfricannationaleconomiesonclimate-sensitivesectorssuchasrain-fedagriculture,fisheries,naturalresourcesandtourism;andthe continent’s inability to respond adequately to the direct andindirecteffectsofclimatechangebecauseofwidespreadpoverty,pooreconomicandsocial infrastructure,conflicts,andlimitedhu-man,institutionalandfinancialcapacities.

The Fourth Assessment Report of the Intergovernmental Panel on ClimateChange(IPCC)andtheSternReviewoftheEconomicsofCli-mateChangeshedlightonthreemaincurrentandprojectedimpactsofclimatechangeonAfrica’sdevelopment.Theseare:

1. Increasing water stress and water-related conflicts: Water lev-elshave seriouslydecreased inmajor lakes suchas LakeVic-toria,RiftValley lakesandLakeChad,which lostover90%ofitswaterbetween1973and2002,andrivers.Coupledwithin-creaseddemandonwater,thiswilladverselyaffectlivelihoodsandexacerbatewater-relatedproblems.

2. Constrained agricultural production and increasing food insecu-rity:Climatechangeisprojectedtoseverelycompromiseagri-culturalproductionandfoodsecurityinmanyAfricancountriesand sub-regions. For instance, the climate changemodellingresultsofIPCCindicatethatawarmingbyanother0.4°Concur-renttemperatureswouldresult,by2020,inashorteningofthecropgrowingperiodbymorethan20%intheSahelandare-ductionofyieldsfromrain-fedagriculturebyupto50%inmanyAfricancountries.Morefrequentandseveredroughts,floodsandweatherextremeswouldalsocompoundtheconstraintsoncropandlivestockproductionsystems.

3. Increasing energy constraints: Acombinationofreducedwaterflowstomajorhydropowerdamsandworseningdepletionofbiomassenergyresourcesresultingfromclimatechangecouldseriously compound the already dire state of energy availability andaccessibilityand,therefore,further impedeindustrialde-velopmentthroughoutAfrica.


Inadditiontothesemainthreats,othersignificantcurrentandpro-jectedimpactsofclimatechangeincluderisingsealevelsdegradinglivelihoods andenvironments in coastal areas; lossofbiodiversity,forests and other habitats; expanding range and prevalence of vec-tor-bornediseases;andincreasedrisksofconflictsrelatedtopopula-tionmigrations.

FurtherwarmingisexpectedevenifthecurrentlevelsoftotalGreenHouseGasconcentrationswerekeptconstant,addingtothelikeli-hoodof thealarmingeconomic,socialandenvironmental impactshighlightedearlier.Hence,Africanowhastomainstreamclimateriskmanagement intodevelopmentbydevisingand implementingad-aptationmeasuresaswellasactionstocopewithmajorimpactsofclimatechange,inordertosafeguarditschancesofachievinglong-termsustainablegrowthanddevelopment.

However,toachievesuccessinthismission,theregionneedstour-gentlyaddressanintricatesetofchallenges(suchasthefollowing):

Institutionalcapacitychallenges,including:

• Inadequatehuman,technicaland institutionalcapacitytode-signandimplementappropriatepolicies,strategies,plansandprogrammes;

• Inadequate legal and regulatory frameworks for natural re-sources governance;

Knowledgechallenges,including:

• Lackofreliableclimateobservations,data,forecastsandinfor-mation;

• Poorcommunicationonclimateriskmanagementbestpractic-esforprivatesectorstakeholders,includingfarmers.

Technologicalchallenges,including:

• Pooraccesstocleanandefficientenergytechnologies;and

• Inadequateinvestmentsinefficientagricultural,wateranden-ergytechnologyinnovation,transferanddeployment.

222 Part Five

Financingchallenges,including:

• Insufficientavailabilityandallocationofdomestic(nationalandregional)resourcesaswellasOfficialDevelopmentAid(ODA)toprovidefundsneededforclimateriskmanagement.

Africa’spoliticalleadershaveexpressedexplicitcommitmentstoad-dressingthesechallengesforeffectiveintegrationandimplementa-tionofadaptationstrategiestoclimatechangeatregionalandna-tionallevels.TheeighthOrdinarySessionoftheAfricanUnionheldinJanuary2007,urgedAfricanStatesandregionaleconomiccommuni-ties(RECs),incollaborationwiththeprivatesector,civilsocietyanddevelopment partners, to integrate climate change considerationsinto development strategies and programmes at national and re-gionallevels.InApril2007,theECAConferenceofAfricanMinistersofFinance,PlanningandEconomicDevelopmentadoptedaResolu-tionengagingAfricanMemberStatesanddevelopmentpartnerstosupporttheimplementationofthesameplan.

Inconsonancewiththeseresolutions,ECAhaspartneredwithAUCandAfDBtodevelopandimplement,incollaborationwithrelevantregionalandinternationalinstitutions,amajorClimateInformationforDevelopmentinAfrica(ClimDevAfrica)programme,withaviewtopromotingandsupportingtheintegrationofClimateRiskManage-ment(CRM)intopertinentpolicyanddecisionprocessesthroughoutthecontinent.

Inaddition,ClimDev-AfricaaimstoenhanceeconomicgrowthandprogresstowardstheMDGsandsustainabledevelopmentthroughmitigatingthevagariesofclimatevariabilityandclimatechangeandensuring that development achievements already gained are climate resilientinthelongerterm.Itisathree-phaseprogrammethatwillbespreadoveraperiodof11years.

ClimDev-Africa is an integrated approach and collective action toaddress issues of climate-related data and observations, informa-tionservices,policiesandriskmanagementpractices.Theexpectedoutcomefromtheprogrammewouldincludetangibleresultsintheareasofpolicies,practicesand services,aswell asdataand infra-structure.ClimDev-Africaisspecificallydesignedformulti-donoren-gagement,and ispredicatedonandcalls formajordonorsupport


for transfer and scaling up phases to achieve maximum impact on povertythroughoutAfrica.

TheClimDev-Africaprogrammewillbeimplementedattheregional,sub-regional,nationalandlocallevelswiththeactiveinvolvementofthe regional economic communities, regional and sub-regional cli-mate institutions, river/lake basin organizations, nationalweather,climateandwaterservicesandotherpublicauthorities(i.e.,health,agricultureandotherministries),universitiesandotherresearchin-stitutions, societalgroups (e.g.,NGOsandconsumergroups), con-sumermarkets,distributionnetworks,media(TV,newspapers,mag-azines),andsoon.

224 Part Five

Climatechangeisnodoubtoneofthemostdauntingchallengesconfrontingtheworldtoday.Thereisanunquestionablebodyof

knowledgethatdemonstratesthaturgentandmajoreffortsmustbeinvestedtotackleclimatechangeifwearetoguaranteesustainabledevelopment,includingsecurityatalllevels.

However,climatechangewillhavedifferentiatedtypesandseverityofimpacts.Assuch,duetotheirlowlevelsofassetsandadaptivecapacity,developingcountriesandthepooramongthesecountrieswillfacedisproportionatelyhighnegativeimpactsofclimatechange.TheAfricancontinent,whichiscurrentlygrapplingwiththemenaceof poverty, famine and a high disease burden, features yet againamongtheregionsthatwillbeworsthitbyclimatechangeimpacts.Already,Africahastodealwithdevastatingimpactsofclimatevari-ability and change, including increasingwater stress and conflicts;constrainedagriculturalproductionand increasing food insecurity;rising energy constraints; and expanding range and prevalence of vector-bornediseases,amongothers.Thus,climatechangeshouldalsobemeasuredbyitssocial,economicandhumanitarianimplica-tions.

Whatcomesoutclearlyisthattheburdenonadaptationactivitiesinparticular,isbeingshiftedtothepeoplesandacontinentthathaveleastcontributedtocreatingtheproblem.Italsobringstothefore

Climate change and its

humanitarian dimensions

Delhi Sustainable Development Summit 2009: Towards

Copenhagen: an equitable and ethical approach

New Delhi, India6 February 2009


thechallengesofensuringjustice,rightsandequitythatmustandcanbetakenintoaccountincombatingclimatechange.

Anystrategyforpovertyreductionandforclimatechangeadapta-tionandmitigationrequirescomprehensiveactionthatencompass-es development issues. We cannot fight climate change withoutconsidering the risingenergyneedsofpoorpeopleandcountries,norcanweeffectivelyaddressglobalpovertywithoutaccountingfortheimpactsofclimatechangeonagriculture,diseasepatterns,andviolentweatherevents,allofwhichparticularlyimpactthepoorestcountries.

Climatechangeisathreattooureconomicwell-beingasevidencedbytheprolongeddroughtintheSahelduringthelate1960sandear-ly1970saswellasthefloodsinsouthernAfricancountries.Chang-ingrainfallpatternsandextendeddroughtcausemorecropstofailandlivestocktoperish.Morefrequentstormsdestroyhousingandinfrastructure,andthreateneconomicgrowthandproductiveinvest-ment. This, in turn, results inconflictsover scarce resources,andwhenthosearegone,wewitnessmassmigration fromvulnerablezones.Inthisprocess,inordertosurviveandfindshelter,displacedpersons cutdown trees for shelter and cooking fuel, exasperatingthe impact on the environment and contributingmore to climatechange.

Climatechange isa threat tosocial,politicalandsecuritystability.Thehighcostoflivingconditionsevidencedbytherecentfoodcrisis,thecostsofhousingandbuildingconstruction,aswelltherhythmsofmigrationaresomeoftheconsequencesofclimatechange.Theneedforurgentactiontoaddressglobalwarminggrows.Itwilldrivenumerous other economic, political and social impacts that willdeepenthehumanitariandimensionofclimatechange.Forexam-ple,coastalcitiesinAfricaarevulnerabletorisingsealevels,tropicalcyclonesandfloods,allfrequent,severeandunpredictablewiththeadventofclimatechange.Duetotheirdensepopulationandweakinfrastructure,thehumanandeconomicrisksassociatedwithcoast-al cities in Africa are huge. Earlywarning, disaster preparedness,educationandtrainingwithinlocalcommunitiescouldhelpminimiselossoflifeinseveredisastersituations.

226 Part Five

Thepeopleandcommunitiesthatarevulnerabletoclimatechangeshouldbewellinformed.Thereisaneedtoimprovetheflowofin-formationaboutthoselifeandlivelihoodsavingmeasuresthatcanbetaken. Fullyharnessingsocialnetworkswillbecriticalforstep-pinguptheflowofinformation.Astrongervoiceshouldbegiventocommunitiestospeakoutonhowtheyareaffectedsoastobettermatchsolutionswithneeds.Improvingcommunityparticipationindecision-makingregardingadaptationneedsandmeasuresisakeycomponentandshouldreceivepriorityattention.

Africa, therefore, has veryhigh stakes in effectively engagingwiththeglobalcommunitytoensurethatthepost-2012climatechangeregimerecognisesandaddressesthesefeaturesthatdistinguishthecontinent’splightinthefaceofclimatechange.

ECA fully recognises the challenges that Africa is confrontedwithinrespondingtoclimatechangeand itsburgeoning impacts.ChiefamongthosearethecontinuedenhancementofAfricannegotiatingcapacitytoenabletheregiontoeffectivelyengageinglobalclimatechangenegotiations;musteringpoliticalcommitment;andspurringpolicyandinstitutionalactionstoenableAfricancountriestomain-streamclimate-relatedconcernsintheformulationandimplementa-tionoftheirdevelopmentpolicies,strategiesandplans.

TohelpAfricancountriesaddress thesechallenges,ECAembarkedonastrongpartnershipwiththeAfricanUnionCommissionandtheAfrican Development Bank to develop and implement a comprehen-sive Climate Information for Development Africa (ClimDev-Africa)Programme.

InadditionandinsupporttotheClimDev-Africainitiative,ECAestab-lishedanAfricanClimatePolicyCentre(ACPC). Inthisconnection,ECAandTheEnergyandResourcesInstitute(TERI)inIndiaconclud-ed aMemorandum of Understanding for collaboration on severalkeyareasofwork, including climate change.ACPCwill strengthenAfrican countries’ capacity to participatemore effectively in inter-nationalclimatenegotiations,andwillalsoenhancethecapacityofAfricancountriestodevelopcoherentpolicyframeworksforcoordi-natingadaptationandmitigationinvestment.


BothClimDev-AfricaandACPChavereceivedstrongpoliticalsupportand endorsement from Africa’s policymakers at summit and ministe-riallevels.Theyalsoenjoystrongsupportcommitmentsfromdevel-opmentpartners,includingtheUKDepartmentforInternationalDe-velopment(DFID),Sweden,NorwayandDenmark.Ihavenodoubtthatmorepartnerswilljoinusintakingforwardtheseinitiativesandthus contributingeffectively in enhancing the resilienceofAfricancountriesandpeopleinfacinguptothedauntingchallengesofcli-matechange.

228 Part Five

Climate change is now recognised as an inescapable challengethatrepresentsagreatthreattoeconomicgrowth,socialcohe-

sionandecosystemintegrityandproductivity.

ThreebroadfeaturesdistinguishAfrica’splightinthefaceofclimatechange and its adverse impacts. These features underpinAfrica’surgently needed responses to climate change and should shape Af-rica’sengagementwiththeglobalcommunityinthepursuitofeffec-tiveremedialmeasures.

ThefirstfeatureisthelowcontributionofAfricatoclimatechange.African countries have contributed the least to the global pool of greenhousegases,whicharethemajorcauseoftheclimatechangephenomenon. Estimates indicate thatAfricahas contributedonlyabout3.8percentofthetotalgreenhousegases.

ThesecondfeatureisthedisproportionateAfricandistressfromtheimpacts of climate change. DespiteAfrica’smarginal contributionto the cumulative global greenhouse gases concentration, all pro-jections suggest that the continentwill be themost distressedbyclimate change impacts. These include, among others, increasingwater stress and water-related conflicts; constrained agriculturalproduction and increasing food insecurity; increasing energy con-

Helping Africa respond to

climate change impact

Delhi Sustainable Development Summit 2009: Towards Copenhagen: an equitable and ethical approach -

Multilateral Institutions Session

New Delhi, India6 February 2009


straints;expandingrangeandprevalenceofvector-bornediseases;andlossofbiodiversity,forestsandotherhabitats.

Africawill alsobear the greatest bruntof climate change impactsduetoitshighvulnerabilityarisingfromhighlevelsofpoverty,reli-anceonclimate-sensitivesectorssuchasrain-fedagriculture,fisher-ies,forestryandtourism,lackofadequateinfrastructure,andlimitedcopingcapacity.

The third feature is the immediacy of the onslaught of climate change impactonAfrica. Africancountriesarealreadyexperienc-ingthedevastatingimpactofextremeweatherandclimatevariabil-ity. Droughtshavebecomemorefrequentandsevere,exertinganenormoustollonagriculturalproduction,freshwaterresourcesandwatersupply.ThishasescalatedthefoodcrisisinAfricancountries.Hydroelectricity supply in a number of African countries has been constrained, thereby undermining Africa’s industrialisation poten-tial.Malariaoutbreakshaveexpandedinspatialdistribution,threat-eningtoerodemostofthegainsmadeinthehealthsector.

OneclearmessagethatcomesoutofthesedefiningfeaturesisthatAfrican countries cannot afford to fall behind in addressing theseclimatechallengesingeneral,andinparticular,ininstitutingtimelyadaptationmeasures.Suchafailurewouldbearcatastrophicconse-quencesonthehardwondevelopmentgains,andwillcompromisechancesofachievingsustainabledevelopmentintheregion.There-fore,itistimetoact.

Thisleadstothequestionofthechoiceofadaptationmeasuresthatthecountriesintheregionchoosetodeploy.

Asafront linestrategytoeffectiveadaptation, it is importantthatregional, national and local policymakers, leaders and investmentagencies pursue a climate resilient developmental path by ensuring that climate change concerns are fully considered and mainstreamed intoalldevelopmentstrategies,programmesand investments. Ofnecessity, such a path should be defined andmaintained throughthedevelopmentanddeploymentofeffectivepoliciesand institu-tionalframeworks.Itshouldalsobepavedbytheprovisionofaccu-rate,adequateandtimelydataandinformationtokeepstrategiesontrackandtosustainablylendmomentumtoadaptationefforts.But,

230 Part Five

perhaps,mostimportantlyintermsofrealisingtangiblebenefitsforthemostvulnerableandaffectedcommunities,theapproachshouldbetoswiftlydeepenthereachofadaptationeffortsandengagewithfarmers,ecosystemmanagersandbusinessesinallthehotspotsofclimatechangeimpact.

The adoption andpursuit of such a climate resilient developmentpathwillenableAfricancountriesto leadtheway inworkingwithdevelopment partners to tackle climate change and address prior-ityadaptationsneededintheregion. Fortunately,Africanleadersat the level ofHeadsof State andGovernment are acutely awareoftheneedandimportanceofsucharoutetodevelopment. TheeighthOrdinarySessionoftheAfricanUnionheldinJanuary2007,urgedAfricanStatesandregionaleconomiccommunities(RECs),incollaborationwiththeprivatesector,civilsocietyanddevelopmentpartners, to integrate climate change considerations intodevelop-mentstrategiesandprogrammesatnationalandregionallevels.

AfricancountrieshaveplacedhighexpectationsontheUnitedNa-tionsFrameworkConventiononClimateChange (UNFCCC)and itsKyoto Protocol. However, international responses on adaptationhavesofarfallenshortofwhatisrequired.Althoughseveralmul-tilateralfinancialmechanismshavebeencreated,deliveryhasbeenlimited.MostNationalActionProgrammesforAdaptation(NAPAs)formulated by African countries remain largely unimplemented.Therefore, African countries continue to hope that effective inter-nationalsupportfortheiradaptationneedswillbeforthcoming.Fortheirpart,theywillcontinueworkingtogethertoformulateandne-gotiateacommonpositionforthepost-2012climateregime.

FromtheAfricanpointofview,therearetwomajorconsiderations,namelyfairnessandcosts. FairnessneedstotakeintoaccountAf-rica’srighttodevelopment.Aspartandparceloffairness,thereisneedtoaddressthequestionofbarrierstoaccelerateddeploymentoftechnologies.Inthisrespectitisveryimportantthatadaptationpotentialbuildingon indigenous coping strategies shouldbe suffi-ciently explored to underpin technology innovation and adoption.Also, given the high costs that effective adaptation in developingcountrieswould require --US$28-67billionby2030according toUNFCCCestimates--theprincipleofcommonbutdifferentiatedre-sponsibilitiesenshrinedintheUNFCCCshouldbebroughttobearto


enableAfricancountriesthataretheleastgreenhousegasemitterstomeettheiradaptationandsustainabledevelopmentrequirementsinafairandcost-effectiveway.

But,evenifthebasicprinciplesareclear,Africaneedstoenhanceitsnegotiatingcapacitysothattheregioncaneffectivelyengageinglob-alclimatechangenegotiations.Again,timeisoftheessencesinceimportantprocesses in thesenegotiationsareunderway. Further,there is theneed tomusterpolitical commitment and spurpolicyandinstitutionalactionstoenableAfricancountriestomainstreamclimate-relatedconcernsintotheirdevelopmentpolicies,strategiesandplans.

ECAtogetherwithitspartnersiscommittedtoassistingAfricancoun-triestodealwiththevariouschallengesofclimatechange.Allowmetooutlinesomeoftheinitiatives.

Firstly,theCommission,inpartnershipwiththeAfricanUnionCom-missionandtheAfricanDevelopmentBank,hasdevelopedacom-prehensiveClimateInformationforDevelopmentAfrica(ClimDev-Af-rica)Programme.Theprogrammesetsouttoscaleupthecapacitiesofkeyinstitutionsandstakeholderswithaviewtoimprovingclimate-relateddataandobservation,informationservices,policiesandrisk-managementpractices in climate-sensitive sectors suchasagricul-ture,water,energy,health,infrastructureandhumansettlements.

ClimDev-AfricaisdesignedtoaddresstheneedforgreatlyimprovedclimateinformationforAfricaandtostrengthentheuseofsuchinfor-mationfordecision-making,byimprovinganalyticalcapacity,knowl-edgemanagementanddisseminationactivities.PoliticalleadershipfortheProgrammewillbeprovidedbytheAUC.TheAfricanClimatePolicyCentre(ACPC)thatECAisestablishingwillberesponsibleforcoordinating and strengtheningpolicy response to climate changeandfacilitatetheimplementationoftheClimDev-AfricaProgramme.InadditiontoUNinter-agencypartnerships,ECAandTERIhavealsoconcluded aMemorandum of Understanding for collaboration onkeyareasofworkoftheCentre.Furthermore,ademand-ledSpecialFundtobeadministeredbyAfDBwillfinancefield-levelactivitiesoftheClimDev-AfricaProgramme.

232 Part Five

Secondly,IamhappytoinformyouthattheACPCisalreadyprovid-ingsupporttoAfrica’spost2012negotiationprocess,withaviewtoreachingacommonregionalpositiontobepresentedforadoptionbytheAUSummitinJune/July2009.CurrentsupportfromtheCen-treinthisregardisfundedbytheUKDepartmentforInternationalDevelopment (DFID),and implemented in closecollaborationwithUNEPinitscapacityofSecretariatoftheAfricanMinisterialConfer-enceontheEnvironment(AMCEN),theCommissionoftheAfricanUnion(AUC)andSecretariatoftheNewPartnershipforAfrica’sDe-velopment(NEPAD).

Thirdly,theAfricanMinisterialConferenceontheEnvironment(AM-CEN)at its12thSessionheld inJohannesburgSouthAfrica inJune2007 adopted a decision to prepare a comprehensive frameworkofAfricanclimatechangeprogrammes. The indicativeconceptualoutlineofthisframeworkincludesinterventionareasinadaptation,mitigation,andsupportingandenablingmeasures.ECAiscollabo-ratingwiththeUnitedNationsEnvironmentProgramme(UNEP)tosupporttheelaborationoftheFramework.

Iwishtounderscoretheimportanceofconcertedeffortsandcoher-entapproachesandactionsataddressingclimatechangechallengesinAfrica.ECAiscommittedtoworkinginfullsynergywithallofyoutothiseffect.


Theimportanceoftheentireworldtobediscussinganddebatingtheissueof climate change inall its ramifications cannotbe stressed

enough,asthevariouscontributionswillassistintacklingthispressingchallengeinpracticalandmeaningfulways.ThisConferencealsopro-vides a good opportunity to emphasise the importance of partnerships ineffectivelyaddressingthechallengeofclimatechange,whichposesanexistentialthreattoallofusandifnotseriouslycombatedcanunder-minehard-worndevelopmentgains.

Africa’s vulnerability to the impacts of climate change in spite of its neg-ligiblecontributiontogreenhousegasemissionshasbeenwelldocu-mented. Suchvulnerabilityderives inpart fromAfrica’salreadywarmclimateandfragileecosystems,itsrelianceonclimatedependentsectorsandlowadaptationcapacity.However,Africaisalsotheregionthatismostatrisktoclimate-inducedconflictbecauseofthefragilityofstatestructuresandinstitutions,anunfortunatehistoryofpronenesstocon-flictandinthecurrentcontext,thepotentialofclimatechangetoactasathreatmultiplier.

The impactof climate changewill be felt globally aswell as inAfricathroughtemperaturechanges,wateravailability,andextremeweatheroccurrences.Ifsufficientcareisnottaken,temperatureswillriseinAf-ricabybetween2%to6%beforetheendofthecentury.Thepicturewithregardtowateravailabilityismorevariedinthesensethatsome

Facing the climate change

and security challenge in

Africa

Swedish Presidency Conference on Environment, Climate Change and

Security – Facing the challenges

15 October 2009Stockholm, Sweden

234 Part Five

regionswillfaceincreasedwaterstressanddesertificationwhileotherswillexperienceunpredictablerainfallandshorterrainyseasons.Extremeclimateeventssuchasfloods,droughts,desertificationandsea-levelrisearealsooccurringmorefrequently.Theseclimaticchangesmayimpactnegativelyonhumansecuritybyactingasacatalystortriggerofconflictthroughtheirimpactonproduction,watersuppliesandmigrationandbycomplicatingeffortstoimprovegovernanceonthecontinent.

Thewell-beingofAfricanpeoplesiscloselytiedtotheissueofclimatechangebecausemuchoftheproductiveactivityinthecontinentiscloselytiedtoclimaticfactors.MostofAfrica’sgrossdomesticprod-uct(GDP)derivesfromsectorssuchasagriculture,fisheriesandfor-estry,whichareinturnverydependentonrainfall,wateravailabilityandsuitabletemperatures. For instance, reductions incropyieldsandlackofpastureforanimalgrazingcanexacerbatefoodinsecurityandbringabouttensionarisingfromcompetitiontoownorcontrolviableagriculturallands.RecentestimatesfromtheWorldBankin-dicate that the cost to Africa of climate change could be in the region of4%ofGDP.

Water stress caused in part by unpredictable rainfall and extreme weather such as drought and desertificationmay lead to intensecompetitionatcommunity level forscarcewaterresources. Someprojectionsshowthatby2020,between75and250millionpeopleinAfricawouldbeexposed to increasedwater stressand thiswillhaveanadverseeffectonlivelihoodsandworseningofwater-relatedconflictsatcommunitylevel.Moreover,thereisalsoahighdegreeofwater inter-dependencebetweenAfricanStates thatcould leadtotensionsintheuseofsuchresources.AfamiliarexampleisthatoftheNileBasin,wherethere isapotential for inter-stateconflictbecauseexistingagreementsovertheallocationofitswaterscouldbecomeuntenableifclimatechangeleadstolowerflowswhilepop-ulationscontinuetoincrease.

AnotherpotentialareaofclimateinducedconflictinAfricaisthedis-placementofpopulationsduetodrought,desertification,floodsordecliningwatersupplies. SomeanalystshaveascribedtheconflictinDarfurtoethnictensionsarisingfromclimateinducedmigration.Similarly,thereisevidencefromtheSahelthatincreasingdesertifi-cationispushingpastoralistssouthwardsandbringingthemintoin-creasedconflictwitharablefarmerswhosefarmlandsaredestroyed


bygrazinganimals.InTurkana,northernKenya,thelackofwaterhasled to tensionsbetweendisparategroupsofherderssearching forfoodandwaterandasubstantialnumberofpeoplehavebeenkilledinrelatedclashes.

Africa’son-goingeffortstoimprovegovernanceexemplifiedbytheAfricanPeerReviewMechanism(APRM)undertheNewPartnershipforAfrica’sDevelopment(NEPAD)programmemaybeunderminedby climate change. Where production and economic growth aresloweddownasaresultofclimatechange,governmentsmayfinditverydifficulttoprovideequitableaccesstosocialandsecurityser-vicesortomaintainon-goingeffortstotacklepovertyinacrediblemanner.Suchcircumstancesmaytriggersocietaltensionsbecausethere is abundant evidence of a strong link between poverty andconflict.Accordingly,climatechangemayendupworseninggovern-anceconditionsinAfrica.

ItisevidentthatclimatechangeposesamajorthreattoAfrica’sal-readyfragileeconomic,socialandsecurityfabric.AfricanStatesarethereforekeentohavepositiveinternationalactiontomitigatethepace of climate change and to adapt to changes that have already oc-curred.ForAfrica,therefore,failureinCopenhagenisnotanoptionwhichiswhytheyhavetakensignificantsteps,atthehighestpoliticalleveltowardsthecollectiveendeavourofachievingajustandequita-bleclimatechangedealinCopenhagen.

Africa’s key interests inCopenhagen relate toaction inmitigation,adaptation,technology,andfinance.

• Africawantsambitiousglobal emissions targets tobeagreeduponinCopenhagen.Actionisneededonmitigationtoavoidgoingoverthetippingpointbyrestrictingglobalwarmingtoaminimumunavoidablelevelofnomorethan2oCelsiusandtak-ingaccountofcommonbutdifferentiatedresponsibilitiesandrespectivecapabilities.

• Adaptation is inevitable since a certain amount of climatechangehasalreadytakenplace.However,adaptingtoclimatechangewill imposemassiveadditionalcostsonAfricancoun-triesforwhichtheywillneedsupportinadditiontointegratingadaptationstrategiesintonationaldevelopmentplans.

236 Part Five

• Technology. Thedevelopment,diffusionandtransferoftech-nologyareessentialtosupportAfrica’smitigationandadapta-tionefforts.Thismustbeaccompaniedbythecapacitytousenewtechnologiesaswellastheeliminationorreductionofex-istingtradebarriersinenvironmentalgoodsandservices.

• Finance is key formitigation, adaptation and technology de-velopment. African countries are therefore seekingnew, ad-ditional,morepredictableandsustainableresourcestosupporttheir efforts. Moreover, existing carbonmarketmechanismsneed to be reformed to make them more accessible to African countries.

On itspart,ECAhasbeenactivelyengaged in supporting theAfri-caregionalprocesstowardsCopenhagen, inthecontextofseveralmandates received from African Ministers of Finance and Environ-ment,aswellasAfricanUnionSummits.ThisengagementiswithintheframeworkofClimDev-Africa.

Given its vulnerability to climate change and unfortunate history of conflicts,theAfricancontinenthasastronginterestinmaintainingcurrenttrendstowardspeaceresultingfromthestrenuouseffortsoftheAfricanUnionanditspartners.Itmustthereforebeequallyat-tentivetothethreatstosecurityposedbyclimatechange.

Fightingclimatechangeandensuringsecurityarecommonchalleng-esforwhichwehavecommonresponsibilities.Wemustthereforeworktogetherbyleveragingourcomparativeadvantagestoachievedesiredoutcomes.


FifteenyearsafterBeijing,tenyearsafterECAorganisedaconfer-enceonAfricanwomenandeconomicdevelopmentandinthis

year that we are celebrating the 50th anniversary of ECA, Africacontinuestograpplewithgender-relatedchallenges.Happily,someprogresshasbeenmadesincethenaswenowhavethefirstfemalePresident in the continent inMrs. Ellen JohnsonSirleafof Liberia.WealsohaveanAfricanwomanastheDeputySecretary-GeneraloftheUnitedNations,Dr.Asha-RoseMigiro.Rwandaisnowtheleadingnationwithregardtofemalerepresentationinparliament,with52%ofmembersofthatbodybeingwomenandasawhole,Africahasmadesubstantialprogressingirlchildeducation.

Westillhavemuchmoretodo,whichiswhyIsalutethepresenceofsomanyofyouheretodeliberateonthisveryimportanttopic.

ThethemeofthisSixthAfricanDevelopmentForum-“ActiononGen-derEquality,EmpowermentandEndingViolenceagainstWomeninAfrica”-isrelevantandtimely,especiallyinthecontextofupscalingeffortstoachievetheMillenniumDevelopmentGoalsbythetargetdate.Itwillalsoenableustolendsupporttotherecentlylaunchedmulti-yearcampaignoftheUNSecretary-Generaltointensifyactiontoendviolenceagainstwomenandgirls,whichwillrunfrom2008-2015 to coincidewith the targetdateof theMillenniumDevelop-mentGoals.

Taking action on gender equality,

women’s empowerment and

ending violence against women in

AfricaThe Sixth African Development Forum

(ADF VI)19 November 2008


238 Part Five

Genderequalityandwomen’sempowermentareessentialforachiev-ingsustainableandinclusivedevelopment.Promotingwomen’sedu-cationandtrainingandtheiraccesstoproductiveassetssuchasland,credit,time-savingtechnologyandinformationandcommunicationtechnologies (ICTs)couldhelpAfricancountriestoscale-upannualgrowthrates inorder toachieve theMDGs.ADFVI thereforepro-videsuswithanopportunitytoreflectonAfrica’sprogressinachiev-inggenderequalityasdefinedingender-relatedMDGsaswellastheAfricanUnion’sgenderinstruments.Indoingso,however,wemustremainmindfulthatAfrica,liketherestoftheworld,isconfrontingchallengesrelatedtorecentlyhistoricalhighsinfoodandfuelprices,theeffectsofwhichhavebeenfurthercompoundedbytheglobalfinancial crisis.Allof these, combinedwith thenegativeeffectsofclimatechange,affectwomenindifferentwaysfrommen,andhavethepotentialtodeepenandwidenexistinggenderinequalities.

The reviewof the statusof implementationof theDakarandBei-jing Platforms of Action undertaken at the SeventhAfrica Region-alConferenceonWomenbuttressesearlier remarks thatwehavemade considerable progress in reducing the gender gap in several sectors, includingeducation,accesstohealthservices,representa-tioninparliamentanddecision-makingpositions,andratificationoftheConventionfortheEliminationofDiscriminationAgainstWom-en(CEDAW).However,thereremainsmuchtobedone,especiallyas recent strong growth of over 5%per annumhas not impactedenoughonpovertyreduction,theachievementoftheMDGs,genderequalityoronoverallsocialdevelopment.

There is also clear evidence that policies, legislation and effectivestrategies aimed at promoting gender equality and women’s em-powermenthavebeenadopted inmanyAfricancountries. Never-theless,thesevariousmeasuresneedtobemoreeffectivelyimple-mentedandenforced tomakeameaningfuldifference. Importantobstaclesremaintowomen’sempowermentwhileviolenceagainstwomenand theviolationof thehuman rightsofwomenandgirlscontinuetobeofmajorconcern. Thisvulnerablegroupcontinuesto be marginalised in the labour markets and has limited access to assetsandothermeansofproduction.Consideringthathumanbe-ingsarethemostpreciousresourceindevelopment,marginalisationofwomenmeansthatwearelockingoutmorethanhalfofAfrica’sresourcesfromthedevelopmentalprocess.


AsthisForumdemonstrates,ECAcontinuestoworkinclosepartner-shipwiththeAfricanUnionCommission,theAfricanDevelopmentBank,otherUNagenciesandbilateralpartnerstoenhancetheca-pacity of policymakers and other stakeholders in Member States to usetheappropriatetoolsandmethodologiestoestablishgender-re-sponsivepoliciesandprogrammes.Oneofourmajorachievementsin this regard is the development of the African Gender and Develop-mentIndex(AGDI),whichmeasurestheextentofgenderinequalityin Africa and helps African governments assess their performance in narrowingthegendergapandadvancingthecauseofwomen.Oth-er achievements relate to the establishment of an African Women’s RightsObservatorytomonitor thestatusofwomen’s rightsat theregional level and the development of a guidebook to mainstream unpaidworkandhouseholdproductionintonationalstatistics.

These developments notwithstanding, there is need for Africa tospeedupimplementationofallgenderrelatedinstrumentsandpoli-cies,whichiswhythisforumhasaveryimportanttaskbeforeit.Theoutcomeofourdeliberationsmusthelpmoveourcountriesclosertothedesiredgoalofgenderequality,empowermentofwomenandalifefreefromviolencefortheAfricanwomanandgirl.Inadditiontoreviewingprogressthathasbeenmade,thisForumiscalledupontoarticulateconcreteactionsthatcouldbetakentoacceleratethepro-cess.WemustplaceemphasisonadoptinganinnovativeandwellthoughtoutActionPlanthatwillensureatransformationalinterven-tioninallourthreemainsub-themes.

240 Part Five

This dialogue aims to raise awareness on why Resolution 1325shouldbeimplementedinAfrica,especiallyincountriesemerg-

ingfromconflict.Italsoaimstobuildnationalcapacities,includingofnationalmechanismsongenderequality and theadvancementofwomen,toaccelerateimplementationofResolution1325.Theseare commendable objectives, especially in Africa, which registersthe largest number of armed conflicts in theworld. Noneof ourcountriesisspared:theyareeitherinconflict,resolvingconflict,orinvolved,onewayoranother,withdisplacedpersons,mediationorpeacebuilding.

Unfortunately the impactofwarsandconflicts ishighlygendered.Womenarenotonlyvictimsofconflicts;inmanywarsinAfrica,theyhavealsobeenfighters.Theyhavebeenactiveparticipants,especial-lyinwarsofliberation.Togetherwithmen,theyhavecarriedarmsandtakenuptheroleofnursesandcare-giversinmanyconflictsitu-ations.

TheSecurityCouncil(SC)Resolution1325onWomen,PeaceandSe-curity,whichwasunanimouslyadoptedinOctober2000,servesasamilestonewithrespecttoitsrecognitionof,andcommitmentto,addressingwomen’s experiences in armed conflict. The presenceofministersandseniorofficialsfromseveralAfricancountriesthatareinconflict,emergedfromconflict,orinvolvedinpeacemakingis

Implementing Security Council

resolution on women, peace

and security

High Level Policy Dialogue on national implementation of Security Council

resolution 1325 (2000) in Africa

Addis Ababa, Ethiopia6 February 2008


heartening.Thisisevidenceoftheseriouscommitmentsinaddress-ingtheissuesofconflictresolutionandpeacebuilding.

The linkage between human rights, peace, security and develop-mentisnowacknowledgedandestablished.AsrightlypointedoutbySecretary-GeneralBanKi-moon,peaceiseveryone’staskanditsrealisationisaprerequisitefordevelopment.Yet,moreremainstobedonetoachievethisprerequisite.TheimplementationofResolu-tion1325at thenational level is important toAfrica,especially insituationsofconflictwherewomenandgirlspayaheavycost.Theyaresubjectedtovariousformsofviolence,includingsexualviolence,murder,systematicrape,sexualslaveryandforcedpregnancy.

Resolution 1325 calls upon Member States, the United Nationssystemandall relevantactors toensurethat thespecificneedsofwomenandgirlsarebettertakenintoaccountinconflictprevention,managementandresolution.ForAfrica,Resolution1325representsablueprintforfurtheractioninthesethreecrucialareasifwearetoachievesustainablepeace,securityanddevelopment. Theresolu-tion recognises thecentralneed forgenderequalityandwomen’sempowerment inallareasof life,especiallywith regards topeacebuildingandconflictresolution.Inreality,itprovidesacomprehen-siveagendaforgendermainstreaminginpeaceandsecuritywithaviewtoenhancingwomen’sparticipationinpeaceprocesses,includ-ingdecision-making.

Asweallknow,theResolutionputsemphasisonthepreventionofconflicts,theprotectionofallcivilians,especiallywomenandgirls,andontheirparticipationinpeacebuilding.

Withregardtoprevention,itcallsuponallactorsinvolved,includingMemberStatesandtheUnitedNationssystem,toincreasewomen’srepresentationatalldecisionmakinglevelsinnational,regionalandinternational institutions as well as all mechanisms and arrange-ments for the avoidance of eruption and escalation of conflicts.TheResolution,therefore,agreeswithArticle33oftheUNCharter,whichcallsforregionalarrangementsinhandlingquestionsofpeaceandsecurity.

Speaking on gender-based violence, the Secretary-General said in2007thatrapeandother formsofsexualabuseremained“perva-

242 Part Five

sive, and in some situations has become systematic.” Resolution1325,therefore,callsonallpartiestoarmedconflictstotakespecialmeasurestoprotectwomenandgirls.Itisourdutyandourresponsi-bilitytoworktowardstheendofallformsofgender-basedviolence.Inthisregard,theSecretaryGeneralhaslaunchedamulti-yearandsystem-wide campaign on violence againstwomen. This initiative,whichseekstoaddressgender-basedviolenceunderallcircumstanc-es,alsoaddressestheneedforbetterprotectionofwomenandgirlsinsituationsofarmedviolence.

Ihopethatthismeetingwillidentifyconcretewaysofensuringthatwomen and girls are adequately protected, and how to respondtothechallengeof impunity inconflictsituations.MemberStates,non-stateactorsandallpartiesinvolvedinconflictsmustbeheldac-countableforactsofviolenceagainstwomenandgirls.

Fortunately, the international community has takenactions to ad-dresstheseseriousinstancesoftheviolationofthehumanrightsofwomen. Inthemid-1990s,theSecurityCouncilestablishedtwoadhoc tribunals to try the perpetrators of the grave human rights viola-tionsthattookplaceintheformerYugoslaviaandinRwanda.Theirstatutesandjurisprudence,togetherwiththeRomeStatuteontheInternationalCriminalCourt,haveplayedacrucial role inaddress-inggender-basedviolenceinsituationsofarmedconflicts.In2002,theSecretary-GeneralStudyonWomen,PeaceandSecuritydocu-mentedthecollectiveexperienceoftheUnitedNationssystemandanalyzedtheimpactofarmedconflictsonwomenandgirls.

Whilemuchprogresshasbeenmadeattheinternationallevel,alotstillneedstobedoneatthenationallevel.Unfortunately,eightyearsaftertheunanimousadoptionof1325inOctober2000,manygov-ernments,institutionsandpeopleworkingonissuesofpeace,secu-rity,genderequalityandwomen’sempowermenthavenotfactoreditsimplementationintheiractivities,despitetheneedforit.

Our exchanges during thenext threedayswhenwe share experi-ence,identifygoodpracticesandreflectonhowbestwecanachieveeffective implementation of the Resolution and the commitmentsunanimouslymadebytheSecurityCouncil,arecrucial.Thismeetingwill benefit from theexperiences fromall sub-regionsofAfrica incomingupwithsolidrecommendations.


The countries represented here have a number of historical circum-stancesincommon:theyhavealldealtwithconflict;eitherbyactu-allygoing through it,working towards therealisationofpeace,bybeinginvolvedinpeacenegotiationsorhostingrefugees.Therefore,Iamconfidentthatourrecommendationswillbeinformedbyactualfirst-handexperiencesandlessons,whichwillhelptostrengthenanddeepenpoliciesandactionstowardsimplementation.

ECA is committed to taking forward theResolution from thisHighLevelPolicyDialogue.ThroughtheACGSandotherdivisions,ECAiscreatingspacetoaddressissuesofpeaceandsecurity,withoutdu-plicatingeffortscarriedoutelsewhereinAfricabyotherinstitutions.WehavealsostrengthenedourrelationshipwiththeAfricanUnioninthisarea,andputparticularemphasisongender.

244 Part Five

ItisindeedwithgreatpleasurethatIwelcomeyoutoAddisAbabaandtothisfirstSessionoftheCommitteeonDevelopmentInfor-

mation,ScienceandTechnology(CODIST),whichisoneofthesevensubsidiarybodiesoftheECA.CODISTisentrustedwiththetaskofreviewing issues pertaining to Information and CommunicationsTechnology (ICT),Geoinformation, ScienceandTechnology in rela-tionAfrica’sdevelopmentchallenges.ItalsoprovidestoassistECAindeterminingprioritiestobereflectedintheworkprogrammeoftheICT,ScienceandTechnologyDivisionofECA.

Thethemeofthismeeting,“ScientificDevelopment,Innovationandthe Knowledge Economy”was chosen to underscore the key roleofscience,technologyandinnovation(STI)inhelpingourMemberStatestocopewiththeglobalfinancialandeconomiccrises,aswellasthefood,energyandclimatechangechallengesthattheyface.

Theinitialfinancialmeltdowninsomedevelopedcountrieshasnowturnedintoaglobaleconomiccrisiswhosemultipleeffectswillim-pactonAfrica.Asacopingmechanismandashieldagainsttheon-slaughtoftheglobalfinancialcrisis,manycountriesarerespondingbyinvestinginscienceandtechnology.SomeexamplescanbedrawnfromChina,IndiaandtheUnitedStates.

Investing in science and

technology

First Session of the Committee on Development Information,

Science and Technology (CODIST)



• TheChinesePremier,WenJiabaostated inJanuary2009thatChinashouldmoveforwardsome600billionyuan($88billion)in planned spending on science and technology investments to help thecountryachievea faster rebound fromtheglobalfi-nancialcrisis.

• Inaddition,theIndianPremieralsoannouncedthisyearadoublingofIndia’sinvestmentinsciencefromonetotwopercentofthena-tionalincome.

• TheAmericanRecoveryandReinvestmentActsignedintolawbyPresidentObamaearlierthisyearincludesa$US17billioninvest-mentinscientificresearch, includinginvestmentsattheNationalInstitutesofHealthandtheNationalScienceFoundation,amongothers. Regarding new technologies, the package also includesnearly$US40billionininvestmentsinAmerica’sinformationtech-nology(IT)networkinfrastructure(includingbroadband,health,ITandasmarterenergygrid)whichwillcreateclosetoamillionUSjobs,morethanhalfofwhichwillbeinsmallbusinesses.

TheseexamplesshouldnotbelostonAfricaandIhopethedeliberationsconductedoverthenextthreedayswilladdresshowAfricancountriescan use science and technology not only to shield themselves from the currentcrisis,butalsotopropeltheireconomiestobecomemorecom-petitiveforgrowth.

ItmustbenotedthatsimilartrendsarecomingoutofAfrica:

• InGhana,theCouncilforScientificandIndustrialResearch(CSIR)developed20newcropvarieties.These includemaize, rice, sor-ghum,groundnuts,soyabeans,cowpea,cassava,yamandplantainandtheCouncilalsodevelopedpozzolanacementfromlocalclayasasubstituteforclinker,whichisusedfortheproductionofPortlandcement.

• South Africa’s Department of Science and Technology plans to in-vest$US7.7millioninananotechnologyresearchcentrethatwillhouseahigh-resolutiontransmissionelectronmicroscope.Thecen-tre is to be located at the Nelson Mandela Metropolitan University inPortElizabeth.

246 Part Five

• ThePresidentofTanzania,H.E.JakayaKikweteannouncedrecentlythattheTanzanianGovernmentwillraisepublicinvestmentinre-searchanddevelopment(R&D)fromthecurrent0.3%to1%ofGDPinthe2009-2010financialyear.TanzaniaisthefirstAfricancoun-trywithahighdiseaseburdentosignificantly increase itshealthresearchbudgets,forwhichwecongratulateit,whileencouragingothercountriestofollowsuit.

Ifweoptimise theuseandmanagementofAfrica’swide rangeofassets, they provide enormous opportunities for science, technol-ogyandinnovation-drivensustainablegrowthanddevelopment.In-deed,scientificknowledgeanditsproperusehavealwaysbeencriti-calingredientsforeconomicgrowthandtodayunderpintheconceptof the Knowledge Economy, which is a multidimensional processinvolvingcontext,culture,content,mechanisms,infrastructureandpolicy.Itraisesmanypossibilitiesforenhancinggrowthandcompeti-tivenessbyincreasingproductivityinallsectorsoftheeconomyandbyaddingvaluetolocalrawmaterialsandnaturalresources,butalsocarries the risksofmarginalisation for countriesandorganisationsthatdonotkeepupwithitsmomentum.

Therefore,weinAfricamuststartrelyingonscience,technologyandmanagementtoachievescientificdevelopment,payingmoreatten-tiontoresourcesavingandenvironmentalprotectionandgraduallynarrowingthedevelopmentgaponthiscontinent.Fromalong-termperspective,weshouldendeavour tobuild innovationsocietiesbygraduallyshiftingfromtheexportofrawmaterialsandproductsintothatofcapitalandknowledge.

Itisafactthattheeconomycanonlysustainustoday,however,sci-enceandtechnologymayensureourtomorrow,butonlyeducationcanguaranteeusthefuture.

It is against this background that ECA boosted its activities in sci-enceandtechnologyincludingbyestablishingtheICT,ScienceandTechnologyDivision.SomeofECA’sactivitiesincludea“SciencewithAfrica”ConferenceorganisedbyECA,AfricanUnionandourdevel-opmentpartnersinMarch2008.Theeventbroughttogetherscien-tists,researchers,governmentofficials,privatesectorandtheinter-nationalcommunitytoexplorehowSTIcanbeofservicetoAfricaasanengineforacceleratedeconomicgrowthandpovertyreduction.


StrengtheningR&DisoneofsuchoutcomesoftheSciencewithAf-ricaConference, andR&Dhappens tobe at thehelmof scientificand technological progress and is key to increasing productivity,exploiting growth opportunities in emergingmarkets and creatingknowledge-drivencompetitiveadvantage.Tothisend,Africaneedsto investmore in researchanddevelopment in thecreationof in-novation.

Nevertheless,developmentsinmanyadvancedcountriesaremainlybasedonknowledgeinsteadofrawmaterialsandnaturalresources.Duetostronginnovativesystems,rapidadvancesinnewandemerg-ing technologies, such as ICT, biotechnology, nanotechnology andgenomicsaredramaticallyaffectingalleconomic,social,administra-tive and cultural activities. The impactful technological revolutionresultingfromtheseadvancesisnowdisruptingallkindsofrelation-ships,transactionsandproductionsystemsofgoodsandservices.

Furthermore, as a consequence of the ICT explosion that has ledtoworldwide interdependency and connectivity, globalisation andcompetitionhavedrasticallyincreasedandareleadingtoextensiveshiftsinworldtradepatternsandeconomicrelations.Now,evencor-porateresearchanddevelopmentare internationalised.Countries’or companies’ competitivenessdepends,more thanever,on theirabilitytoaccess,adapt,utiliseandmasterscientificandtechnologi-calknowledgeforacontinuousinnovationprocess.

However,R&Disnottheonly ingredient intheproductionofeco-nomicallyuseful knowledgeor innovativecapabilities. Ithas tobeemphasisedthatinnovationalsocomesfromlearning,experimenta-tionandre-useofknowledgeandnotalwaysfromthediscoveryofentirelynewtechnicalorscientificprinciples.

TheSTIenvironmentwill therefore requireastrong ICT infrastruc-ture.Despiteefforts,significantgapsstillremaininAfrica’sbackbonenetworkconnectivity.Internetpenetrationisstillverylow,withonly5.6percentpenetrationratecomparedtoAsia(17.2percent),Mid-dle East (23.3percent), andEurope (48.9percent). Broadband In-ternetpenetrationismuchlower,withonly1.0percentpenetrationrate. The high-speed Internet services that are vital for business,governmentandconsumerapplicationscontinuetobeeitherveryexpensiveorunavailableinmuchofAfricabeyondmainpopulation

248 Part Five

centres. Furthermore, many landlocked countries in Sub-SaharanAfricarelyonexpensiveandslowsatelliteservicesfor Internetac-cess,whilecapacityonunderseacables,whereavailable, ispricedwellabovetheglobalaverage.The lackofaccess to infrastructureinhibitstheregionfromexploitingthepotentialof ICTstokeysec-torsthatcontributetotheeconomy,suchase-commerce,e-health,e-governmentande-learningapplications.

ThisiswhytheGovernmentofRwandaistobecommendedforin-vestmentsabove$100millionintheICTindustrybyendofthisyear.Thebiginvestmentprioritiesincludethelayingofafibreopticloopacrossthecountry,andtheconnectionofthelocalfibretointerna-tionalbandwidthaspartoftheGovernment’scommitmenttocreateaknowledgebasedeconomyby2020inRwanda.

Africa’scellphoneconnectionsroseby15millionsubscribersor6.6percentinthethirdquarterof2007,withsomecountriesrecordingagrowthraterangingfrom40to50percentduringthelastthreeyears.Thissubstantialgrowthhasshownthatthereistremendouspotentialfor ICT-drivensocialandeconomicdevelopmentthroughoutAfrica.Buildingonthisprogress,asneverbefore,Africancountrieshavetheopportunity to empower marginalised populations and communi-tieswithICTstoreducepoverty,therebyimprovingaccesstohealth,education and employment opportunities, particularly in rural andremoteareas.

Furthermore,Africanoperatorsarenotjustadoptingbusinessmod-els developed elsewhere, but are forging their own new models,suitedtotheAfricanmarket.Suchmodelsincludeinnovativemobilebanking,micro-rechargingmethodsandflat-ratepricingmodels,e.g.theM-PesainKenya,allowingconsumerswithoutbankaccountstodeposit,transfer,payforandwithdrawmoneyusingtheirSIMcards.

Technologicalchange,innovationandgrowingprivateinvestmentwillcontinuetoopennewpossibilitiesforextendingaccesstoinfrastruc-tureandservices.Therightmixofpolicies,regulations,investments,incentivesandpartnershipsisneededtoexpandaccessandalsotoempowerarangeoflocalactorstocontributeinnovativelytosustain-ablesolutions.


ECAcontinuestosupportcountriesintheformulationofpoliciesthatprovidea frameworkwithinwhich ICTsaremainstreamed into thenational planning process in order to facilitate the achievementofnationalandsectoraldevelopmentprioritiesandobjectives.PriortothelaunchoftheAfricanInformationSocietyInitiative(AISI)in1996,onlysixcountrieshaddevelopednationalICTpoliciesandby1999,13countrieshadcommencedthedevelopmentoftheirNationalInfor-mationandCommunicationInfrastructure(NICI)policieswithECA’sassistance.Therearenowover35countrieswithnationalICTpolicies.

The creation of an enabling environment is one of the key build-ing blocks in the establishment of an information society — theWorld Summit on the Information Society (WSIS) recognised that“tomaximise the social, economic and environmental benefits oftheinformationsociety,governmentsneedtocreateatrustworthy,transparentandnon-discriminatorylegal,regulatoryandpolicyenvi-ronment”.Recently,ECAundertookasurveytoanalysetheprogressachievedbyMemberStatesintheimplementationoftheWSISout-comes.Theresultsofthesurveyindicatedthatsomecountrieswereontrackinsomeoftheareasandotherswerestillwaybehind.Forexample,lessthan50%oftherespondentcountriesconfirmedthattheyhadenactedlegislationinrelationtokeyenablingmechanismsfore-commercesuchase-payment,e-currencyanddigitalsignature,which are key legal and regulatory mechanisms required for thegrowthoftheknowledgeeconomy.

IhopethatMemberStateswillcontinueineffortstoimplementtheirICTpoliciesastheyholisticallyaddresssomeofthechallengesIhavecited.WerecentlycelebratedourachievementsoverthelastdecadesincetheadoptionofAISIandwenowneedtolookaheadandre-newourcommitmenttocreatingaknowledgeandinnovation-basedeconomyinthecomingdecade.

Thereisanincreasingneedforgeospatialtechnologiestobeadopt-edbyAfricancountriestobettermanagetheirnaturalresourcesandenvironment.Geoinformationcanbeusedtocreatenewvalueandknowledgebyleveragingthepoweroflocationandanalysisinsup-portofstrategicdecision-making,governanceandadvancedopera-tions.

250 Part Five

ECAcontinuestosupportMemberStatestodeveloptheirnationalspatial data infrastructures (NSDI),which also enable countries tomonitorandaddresssomeofAfrica’scurrentpressingissues–theimpactofclimatechange,waterscarcity,energyandfoodshortages,environmentalchallenges,disastermanagementanddiseasemap-pingandintervention.ECAwillcontinuetosupportthedevelopmentof regional spatial geo-databases for thepriority areasdefinedbyregionalinitiativesoftheAfricanUnion,NEPADandothercontinen-talbodies.

Thefoundationofaccurategeospatialinformationstartswithauni-formcoordinate reference system.ECAwill pursue, inpartnershipwiththeAfricanUnionCommission,effortstodevelopthroughtheAfricanReferenceFrame (AFREF)Project, aunifiedgeodetic refer-enceframeforAfrica.

ThisisalsoexemplifiedbytheestablishmentofanewGeodeticRef-erenceNetwork forGhana to address the risingdemand for cost-effective landdeliveryandmanagementprocesses incountry.ThefirstphaseoftherenewaloftheGeodeticReferenceNetwork(GRN)wascompletedwiththeprovisionofthebasicinfrastructureinandaroundtheGoldenTriangleofGhanaforusingtheGlobalNavigationsbySatelliteSystems(GNSS)technology.ThispreparedthecountrytojointheproposedcontinentalAFREFledbyECA. Inaddition,moreAfricancountries,throughsupportfromTrimble,theworldleaderinthemanufacturingofprofessionalGlobalPositioningSystemshavereceivedequipment forfiveGPS reference stations. The referencestationswillformpartoftheGPSnetworkthatwilldefineauniformAfrican(Geodetic)ReferenceFrame(AFREF)andtheagreedinstal-lationsitesareBotswana,Niger,Tanzania,DRCongoandEthiopia.

ECAcontinuestocollaborateandcoordinateitsactivitiesinsupportofAfrica’sdevelopments in thefieldofgeoinformationwithotheragencies in theUNsystem, internationalandregionalassociationsand programmes and other development partners as an important vehicle formobilisingfinancial resources and technical know-how.Wewillstrengthenoureffortstodeveloppartnershipswithregionalandinternationalorganisationsthroughcontributionandparticipa-tion to several initiatives on geospatial science and technology atvarious levels.Aspartofourcommitment todevelopinggeoinfor-


mationinAfrica,wewillprovidesupporttotheorganisationoftheRegionalConferenceoftheAfricanAssociationofRemoteSensingoftheEnvironment(AARSE),inOctober2010.

AsIalludedtoearlieron,educationensuresourfutureandthere-fore,humanresourcedevelopmentisthemainfactorforeconomicprosperityanditisimportantthatpriorityisaccordedtoinvestinginhumancapacitydevelopment.Theevolvingknowledge-basedecon-omyhascreatedcontinuousdemandforahighlyskilledworkforceinthedevelopment,useanddeploymentofSTIforsocio-economicdevelopment,characterisedbyaneverincreasingdemandforhighlyskilledhumanresourcesfordevelopingandmaintainingacompeti-tiveedgeintheglobalmarket.High-qualityS&Teducationandtrain-ing isessentialtotheefficientacquisition,utilisation,creationanddissemination of the relevant knowledge and skills and therefore,education and training providerswill have to “come to the table”andplayapivotalroleinsupportingallmembersofsocietyastheyadjusttothenewenvironmentofdevelopingavibrantknowledge-basedeconomy.

Finally, distinguishedparticipants, I do hope that theCODIST sub-committeeswillamongothers,addresssomeof these issues fromtheirvariousperspectives,includinghowto:

• Drawonthelessonslearnedfromtheglobalfinancialcrisisandhowscienceandtechnologycanbescaledupinourcountries;

• Identifythekeyconstraints facingAfricandecision-makere.g.innovativefinancialmechanismsastraditionalfinancialmecha-nismshaveshowntheirlimitations;

• Definetheenablingenvironmentneededforthedevelopmentof Africa’s STI system that can enhance private partnerships and accelerateeconomicgrowth;

• Develop capacity-building strategies that address theever-in-creasing demand for highly skilled human resources;

• RevitaliseAISIthrougharegionalroadmaptowardsbuildingaknowledge-driveneconomy;and

252 Part Five

• Ensure that National Geospatial Data Infrastructure are inte-grated inthesuccessfulnational ICTpoliciesandplansdevel-opedsofarinmemberStatessoastoharnessgeospatialdatainfrastructure and technologies for socio-economic develop-ment.


ECAisaproudmemberoftheGlobalKnowledgePartnership(GKP),whichweseeasacluboflike-minds,agroupofhighlycommitted

individuals,institutionsandpartnersworkingtowardsthenoblegoalofpromotingknowledgeandinformationthroughtheuseofinfor-mationandcommunicationtechnologies(ICTs).Together,wehaveachievedalotandweremainconvincedthatAfricawouldcontinuetobenefitfromtheworkofGKP.

ItispleasingtonotethatGKPismaintainingitstraditionofinnovativethinkingtopromotetheuseofICTsacrossdifferentsectors.Thereismuchtobesaidforfocusingonexploringtheroleandpotentialap-plicationofICTstotheexcitingareaofsocialentrepreneurshipandtheequallypressingchallengeofclimatechange.ThesearethemesthatareimportantforAfrica’seconomicandsocialdevelopment.

Socialentrepreneurshipispowerfulbecauseitrecognisesthatsocialproblemsshouldnotbelefttogovernmentalonetosolveandnei-thershouldsocietalneedsbesubjectedtohardnosedprofitconsid-erationsofbusinessenterprises.CombiningtheuseofICTsandtheidealsofsocialentrepreneurshipwiththepassionanddriveofyouthisagreatideaandinthisregard,IwelcometheGKPYouthSocialEn-terpriseInitiative.ICTshavealreadytransformedthebusinessworldandarepoisedtorevolutionisethedevelopmentsector.

Powering Africa with ICT and

entrepreneurship

GKP AFRICA 20083 March 2008


254 Part Five

TheemergenceofICT-enabledyouthsocialenterprisesallowsyoungsocial entrepreneurs to be uniquely positioned to address socialproblemsandbridgetheinequalitiesthatwefaceintheworld.Foryoungpeopletotakeupsocialentrepreneurshipsuccessfully,theywill need access to informationon theworld’s problems to ignitetheir passion; insight into social issues in order to develop their social enterpriseideas.

Ihavenodoubtthatyouwill lookat the fullpotentialof ICTsandtheir practical use towards the promotion of sustainable AfricanYouthSocialenterprisesbysharingknowledgeandbuildingpartner-shipamongAfricanandAsianmembersof theYouthSocialEnter-prise Initiative (YSEI), supportedbyour long standingpartner, theSwissDevelopmentCooperation.

ClimatechangehasbecomeoneofthedefiningissuesofourtimeanditposesachallengefortheachievementoftheMDGs,especiallyinAfrica.Ourresponsetoitwillinmanywaysdeterminethefutureofhumanlifeonthisplanetasitisaffectingdelicatelybalancedeco-systems,agriculturalproduction,watersupplies,humanhealthandhabitation.

AuthoritativereportssuchasthatoftheInter-GovernmentalPanelonClimateChange(IPCC) indicatethatalthoughAfricacontributesleasttothecausesofclimatechangeitistheregionthatwillsuffermostfromitseffects.ManyAfricancountriesruntheriskofexperi-encingaggravatedwaterstress,reducedfoodsecurity,increasedef-fectofextremeweatherevents,displacementofmillionsofpeople,andincreasedtransmissionofvector-bornediseases

Strong and broad partnerships are needed to meet this challenge andIamthereforepleasedthatyouwillbedeliberatingonthisissuefromtheperspectiveofhowICTscanhelpinadaptationtoclimatechange. Adaptation is importantbecausewiththebesteffortsatmitigation,climatechangeisalreadywithus. Giventheimpactofclimate change on the poorest sections of society, it is particular-ly importanttoexplorehowICTscanhelpinadaptationtoclimatechange,especiallythroughtechnicalanalysis,promotingflowofin-formationandenablingexchangeofviewsonbestpractices.


Indeed, Iseeapotential linkbetweensocialentrepreneurshipandclimate change adaptation because governments sometimes havelittle incentive to incorporate adaptation intodecision-making, re-sponsibilitiesforactionareoftenunclearandthepotentialforprofitisnotyetevident.Itrustthereforethatyouwillexploretheselink-ages during your deliberations. ECAwill contribute to ensuring apositiveoutcomeontheseissuesatthismeetinggivenitsgoodtrackrecordofworkintheareaofICTs,youthandclimatechange.

ThisGKPmeetingisanimportantpre-eventtotheSciencewithAf-rica Conference not only because they share common objectivesbutalsobecausewecannottalkaboutstrengtheningresearchanddevelopmentwithoutsharingknowledgeandbuildingpartnerships:thetwomainpillarsofGKP.

TheupcomingSciencewithAfricaConferenceisalsoaboutpromot-ing the use of science and technology in the African development process. Its aims and objectives are however different from thenorm.ThisConferenceisaboutexploringhowAfricanscientistscanincreasetheircollaborationandparticipationininternationalscienceinitiativesandresearchanddevelopmentprojects.SciencewithAf-ricaismorethanaConferenceinthesensethatithasafollow-upmechanismtoensurethatAfricanscientistsarekeptinthepicturewithregardtosuchinitiativesandprojects. Itwillalsobeusedtostartoffandsustainaconstructivedialoguebetweenthescientificcommunity and other stakeholders

In this regard,we expect Sciencewith Africa to lead to increasedsynergiesbetweenAfricanandscience-basedorganisationsinotherregions.Itshouldalsoleadtoimprovedlinkagesbetweeninterna-tional scientific research programmes and business enterprises toexpediteeconomicgrowthinAfrica.Anotherexpectedoutcomeisa framework for using science and technology options to supporteconomic progress in Africa;

IamconfidentthattheoutcomesofthismeetingwillbetranslatedintoconcreteGKPAfricaactionplansandprojectsandthatyouwillcollectivelyprovidethesupportfortheirsuccessfulimplementation.

256 Part Five

Thisworkshopisintendedtospearheadaprocessthatwillleadtothedevelopmentofaframeworkforguidelinesandprocedures

forlandpolicyinAfrica.ItistheresultofextensiveworkcarriedoutbyECA,AUCandAfDBintherealisationofthecentralrolethatthegovernanceoflandandAfrica’snaturalresourcesplaysinthesocio-economicdevelopmentofthecontinent.Indeed,inordertoachievedevelopmenttargetssuchasthosesetoutintheMDGs,Africamusturgently address the constraints to the management of land and other resources, including farmlands, rangelands, forests, wildlife,water,oilandminerals.

Forthemajorityofourpeople,landisvitalforsurvival.Therefore,ameaningful structuraleconomic transformationthat results inem-ploymentandimprovedlivingstandardsforthemajorityofAfricanswillpartlydependonsecuringlandrightstomillionsofourpeople.We must also take steps to reduce the cost of doing business for thecorporatesectorinthefarming,agribusinessandagro-industrialspheresbyreducingthetransactioncostsassociatedwithattainingtheserights.But,whilesecuredrightsto landcantransformthesesectors,weshouldrememberthatothercomplementaryelementssuch as technologies, credit,markets and transport infrastructurearealsovitalforastructuraltransformation.

Formulating a framework for

action to secure land rights, enhance

productivity and secure livelihoods

AUC-ADB-ECA Consultative Workshop on Land Policy in Africa



Manyfactors,suchasthetransformationofruralareas(intotowns);rapidpopulationgrowth;globalisationandmarketdevelopmentarealreadyresulting in increasingpopulations inourtownsandcities.Indeed,asaresultofthesefactors,itisestimatedthatAfrica’surbanpopulationwillincreasefrom38%in2000to55%in2030.Considerthis,Africa’smostpopulouscountry,Nigeria,isexpectedtohave134millionpeopleresidinginurbanareasby2030.Thisfigurewasonlyabout50millionin2000.

Thisisboundtoputmorepressureonurbanandperi-urbanareas,raising land values and increasing the vulnerability of livelihoods of informalsettlers.We,therefore,urgentlyneedtotakestepstorec-ognisethe landrightsofslumdwellersandsquatters,andprovidelowcostmethodsforacquiring,documentingandmanagingtheserights. Ifwedothis,wewillhavegonea longway inreducingthevulnerability of those living in urban andperi-urban areas aswellasdecreasingtheoccurrenceofdisputesandconflicts,whichsome-timesleadtoevictionsandhomelessness.

ThemajorityofconflictsinAfrica,andindeedaroundtheworld,in-cludingtherecentwarsinRwanda,Burundi,theDemocraticRepublicofCongo,andCoted’Ivoire,arerelatedtofailuresinsystemsrelatedtothegovernance,controlanduseoflandandnaturalresources.

InsomepartsofsouthernAfrica,theinabilitytoaddressahistoryofunequallanddistributionhasledtoracialandpoliticaltensions,andhamperedeconomicdevelopment.

InSouthAfrica,NamibiaandZimbabwe,theminoritypopulationstillownsadisproportionatelyhighpercentageoftheland,usuallyrel-egatingtheindigenousblackpopulationtomarginallands.

Conflictsareundoubtedlyoneofthemajorimpedimentstoeconom-ic development, sound environmental management, and humansurvival.Theydonotonlyimpededevelopment,buttheyalsocon-tributetohumanrightsviolations,adverselyaffectingthemostvul-nerablemembersofsociety. Indeed, themostgruesomebreachestohumanrightsoccurduringtimesofconflicts.Therefore,wemusttakestepstoreducetheseconflictsbyaddressingtheirunderlyingcauses-insecurityoflandrights,badgovernance,andbadmanage-mentoflandandnaturalresources.Sincepoorgovernanceofland

258 Part Five

and natural resources are amajor source of conflict, these issuesshouldbepartandparcelofanypost-warrecoveryandpeacebuild-ingeffortsinAfrica.

Weneedtoexaminetheprocessesaimedatlandredistribution,andcatalyseequalaccesstoland.Wemustaddresstheresettlementofdisplacedfamilies,claimstoland,propertyrights,dysfunctionalandinaccessible landadministration,and redress for crimes related tolandgrabbingandlandinvasions.

It is ironic that the most marginalised members of our society are thesamepeopletaskedwithharnessinglandforfoodsecurityanddevelopment.Theyarealsoexpectedtobethe‘keepersoftheen-vironment’.

InAfrica,womenconstitute70%oftheagriculturallabourforceand90%ofthelabourforcollectingfirewoodandwater.Theyarelargelyruraldwellers.Forinstance,93%ofMalawi’sfemalepopulationand80%ofMozambique’swomenliveinruralareas.Ofthe65%ofZim-babweanswholiveincommunalareas,85%arewomen.Themajor-ityofthesewomen,likeotherAfricanwomeningeneral,donotownorcontrol landandothernaturalresources. Indeedmanyofthemonly gain access to land through amale relative. Thismeans thatwomeninAfricacannotparticipateandcontributeadequatelytode-velopment.Andtheydonotfullybenefitfromthewealthcreatedbytheuseoflandanditsresources.

Yet,ifwomen,whocomprisemorethan50%ofAfrica’spopulation,lose out on development, African families lose, and indeed, thecontinentloses.InorderforAfricatorealisethefullpotentialofallmembersofsociety,moremustbedonetoensurethatlandpolicyreforms are accompanied by the appropriate mechanisms that al-lowforthe implementationof lawsandprogrammestoguaranteewomen’srightstoland.

Thesechallengeswillrequirethatourlawsandlegislationadequate-lydealwiththepluralisticsystemsoflandtenure,whicharemainlyaresultofourcoloniallegacy.

ItiswellacknowledgedthatcustomarysystemsgovernthemajorityoflandinAfrica,asisthecaseinGhanawherecustomaryauthori-tiesstillholdconsiderableresponsibilitiesandinfluenceinmanaging


land. These systemsarehoweverunderpressure frompopulationgrowth and competing landuses, including urbanization.Unfortu-nately,thelaw,inmostcases,doesnotprovideadequateprotectionforcustomaryrightsholdersduetomultiple,andattimes,conflictinglegislationrelatingtolandacquisitionandmanagement.Asaresult,thereisinsecurityoftenureanddisputeswhichcontinuetohamperinvestmentanddevelopment.

Inthenextfewdays,Iurgeyoutothinkseriouslyabouttheseissuesandhelptoprovideguidancetoourgovernmentsonlegalandinsti-tutionalmechanismsofensuringeffectiveco-existenceofformalandcustomarysystemsoflandtenure.

Thegoodnews,ladiesandgentlemen,isthatAfricangovernments,with the help of the institutions represented in this room, are al-readyinstitutingtheneededreforms.SomeAfricancountrieshavemaderemarkableprogressinpolicyformulation,law,legislative,andeveninstitutionalreforms,whileothersareintheprocessofdoingso.

TheworkthatwehavedonehereatECA,howeverpointstotheneedtocatalysethesereformsthrough increasedpoliticalwill, resourcemobilisation,peerlearningandreviewofprogressmade,inordertoavoidlosingthegainsthathavebeenrealised.

This is why the AU Commission, ECA and ADB, spearheaded thisworkshop.Itisthebeginningofaveryimportantprocess.Ihopethatattheendofthisfirststep,youwouldhavedevelopedaskeletonoftheguidelinesandprinciples,whichwillthenbestrengthenedatvar-ioussubregionalforumswhereregionalspecificitieswillbereflectedandtakenaboard.Oncethis isdone,wehopethattheframeworkwillbeadoptedatthehighestlevelofgovernmentinAfrica,startingaprocessthatwillleadtotheincorporationoftheseguidelinesandprinciplesintonationalsystemsacrossAfrica.

LetmeendbyassuringyouofECA’scommitmenttoworkinclosepartnershipwiththeAU,ADB,theregionaleconomiccommunitiesinAfricaandotherpartners,toensurethattheoutcomesofthiswork-shopguideourworkasweassistAfricangovernmentsto improvethe governance of land and its natural resources for poverty reduc-tion,wealthcreationandemploymentforallAfricans.

260 Part Five

Wearemeetingatatimeofseriousconcernabouttheglobaleco-nomicoutlook. Ourapprehensionsabout the impactofhigh

foodandoilpricesonAfricancountrieshavenowbeencompoundedbyworries onhow the global financial crisiswill impact onAfricaneconomies,whichhavegrownsteadilyintherecentpastandseemedonthecuspofsustainedeconomictake-off.ItisdifficulttojudgethefullextentoftheimpactofthefinancialcrisisonAfricaneconomiesifonlybecauseoftherapidlychangingnatureofeventsinglobalfi-nancialmarketsanddifferingdegreesofexposuretothembyAfricancountries.

Whatisclearhoweveristhatbecauseofitsvulnerability,negativede-velopmentsintheglobalarenaposeaparticularchallengeforAfrica.Thiscontinentisparticularlyvulnerablebecauseitsgrowthisnotyetself-sustainingandithasthesteepestroadtotraveltoachievetheMil-lenniumDevelopmentGoalsintheshorttimeremainingtothetargetdate. Theeffectofrecentdeclines incommodityprices, isdouble-edgedinthesensethatitmaymeanlowercostsofenergybutalsomeansfallingrevenues,evenfornon-oilproducers.Indeed,thereisneedforvigilancetoensurethatthecombinedeffectofthefood,fuelandfinancialcrisisdoesnotderailtherecentgoodeconomicperfor-mance in Africa but also that it does not undermine recent notable improvementsingovernance.

Responding to Africa’s food

crisis Ninth Meeting of the Regional Consultation Mechanism of UN

Agencies and Organizations Working in Africa in Support of

the African Union and its NEPAD Programme

UNCC, Addis Ababa21 October 2008


We must also bear in mind that the food crisis in Africa has been main-lystructuralandlong-terminnatureandthereforeonlyexacerbatedbytherecentspikeinprices.ThethemeofthisRCM–ACoordinatedMultisectoralResponsetotheFoodCrisisChallengeinAfrica–whichplacesappropriateemphasisonanaction-orientedapproachtothevarious international initiativesthathavebeenadopted is thereforequiteapt. Wemustalsogobeyondprovidingemergency foodaid,orcelebratingtheshort-termsupplyresponsetohigherpricestoad-dresstheunderlyingcauseofthestructuralfoodcrisisinAfrica.ItisessentialtoguardagainsttheinadequateattentionandprovisiontoagriculturethatliesbehindthestructuralfoodcrisisinthecontinentwhileworkingvigorouslytoimplementtheComprehensiveAfricaAg-ricultureDevelopmentProgrammeofNEPAD.

Whatisemergingfromtherecentcrises,beithighfoodandfuelpricesorfinancialmeltdownistheimportantroleofcoordinatedinternation-alactiontofashionaresponseandreducetheirnegativeimpact.Inotherwords,eitherduetoconvictionorbecauseunilateralactionhasprovedineffective,internationalcooperationhastakencentre-stageinseekingsolutionstodampentheeffectofthesechallengestoglobalgrowthandprosperity.Thisbeliefintheeffectivenessorinevitabilityof international cooperation to tackle theseandother seriouschal-lengessuchasclimatechangeunderscoresthekeyroleofmultilateralinstitutionsliketheUnitedNationsatthegloballevelandtheAfricanUnionattheregionallevelinthesearchforanswers.

ThethreepillarsofUnitedNationswork,peaceandsecurity,develop-mentandhumanrightshaveparticularrelevanceforAfricabecausethey are at the heart of continental aspirations for socio-economicprogress.TheidealsoftheUnitedNationsanditsuniversalaspirationshavebroughtaboutwide-rangingprogrammesandprojects to sup-portAfricanregionalintegrationandcooperation,particularlythroughthe AfricanUnion and regional economic communities. Moreover,thePoliticalDeclarationadoptedattherecenthighlevelmeetingonAfrica’s development needs stressed the need to strengthen the ca-pacitiesandcapabilitiesoftheUNsystemtosupportAfrica’sdevelop-ment. Indoing so,however, there is increasing recognition for theneedforgreatercoherenceandcoordinationofUNsupporttoavoidduplicationofefforts,maximisesynergiesandavoidwastageofscarceresources.

262 Part Five

ThismeetingoftheRegionalConsultationMechanism,the9thintheseries,reflectsthecommoncommitmentoftheUNsystemtosup-porting Africa’s regional aspirations in a coherent andmeaningfulmanner.Ourtaskthereforeistobuildonthismomentumbymak-ingtheRCManeffectiveandviablemechanismforsupportingtheworkoftheAfricanUnionCommission,theNEPADSecretariatandtheRECs.

Inadditiontothethematicfocusofthismeeting,permitmetohigh-light threeother issues thatmust engageour attention. Thefirstrelates to ensuring that our institutional make-up, especially theclustersystem,ismeaningfullyalignedtotheprioritiesoftheAfricanUnionCommissionandcaneffectivelypromotetheimplementationoftheTen-YearCapacityBuildingProgrammefortheAfricanUnion.Thiswouldrequirethatourdeliberationsontheoutcomeofthere-cent reviewmeetingon “Measures to enhance the functioningoftheRCMinsupportoftheAfricanUnionanditsNEPADProgramme”shouldleadtoclearandimplementablerecommendations.

Thesecondhastodowithhowweoperateto improvecoherenceand deliver on the Ten-Year Capacity Building Programme. Weshouldclearlyspecifyourintentionsandtheresourcesthatwearewillingtocommitoveraspecifiedtimeframetoachievethisobjec-tive.Thiswouldrequirethateachclusterarticulatesandimplementsmulti-yearbusinessplanstoguideitsactivitiesandserveasabasisforcoordinatedaction.

ThethirdissuethatIwouldflagforyourattentionrelatestothesec-retariatoftheRCM,whichECAproudlyhosts.TheRCMSecretariatbelongstoallofusanditsmake-upshouldreflectthiscommonown-ership. I thereforeexpect that thismeetingwillbuildon themo-mentumofthelastRCMtobroadenparticipationintheworkoftheSecretariat.


This10thsessionoftheRegionalCoordinationMechanism(RCM)signifiesadecadeofcollectiveengagementofUNagenciesandor-

ganisationswithkeyAfrican institutions in strengtheningcoherenceandcoordinationofUNsupporttoAfrica’sdevelopmentagendaandprogrammes.This10thanniversaryprovidesusanidealopportunitytotakestockofperformanceandachievementsanddiscusshowtoconsolidateourvisionandcommitmentof“deliveringasone”.Itisalsoatimetoreflectonthechallengesencounteredandlessonslearned,andchartawayforwardwithrenewedvigourandenergytobettersupportAfrica’sdevelopment.

Wehave,indeed,comealongway,sinceAfricahelditsfirstRCMmeet-ingin1999.WehaveestablishedanRCMSecretariatchargedwithco-ordinatingourworkinsupportoftheAUanditsNEPADprogramme.TheRCMhasbeenstrengthenedandhasindeedbecomeaveritabletoolforcoordinatingourwork,ratherthanamereconsultativeforum.Wehavecreatedclusters thatarebetteralignedtotheprioritiesoftheAfricanUnionandNEPAD.TheRCMisgivingstrategicsupporttoclustersandofferingsoundadviceoninter-clusterrelations.

Theclustersare fulfillingtasks inGeneralAssemblyResolution57/7whichmandatestheUNsystemtosupportNEPAD;theyareplanningtogetherandimplementingasone.Whilewecelebratetheimprovedfunctioningof theclusters,westillhavesomewaytogo inutilising

Achieving better UN coherence in

support of the AU and NEPAD10th Session of Regional

Coordination Mechanism of United Nations Agencies and Organizations Working in

Africa in Support of the African Union and its NEPAD Programme

5 November 2009Addis Ababa, Ethiopia

264 Part Five

theirstrengthstotheoptimum.InparticulartheseclustersneedtobebackedupbyanRCMsecretariatthatissupportednotonlybyECAbutbyotheragencies.Thisshouldbethroughfinancialsupportandprovi-sionofadditionalcapacitythroughthedeploymentofstaffasrecom-mendedbytheJointInspectionUnit.

ThisRCMsessionaffordsustheopportunitytoreviewoursupporttoAfricainkeythematicareas,especiallythatofclimatechangeandMDGs.TheConferenceofPartiestonegotiateapost-Kyotoagree-ment takesplacebarelyonemonth fromnow. Itwill certainlybeimportant for us to use this session to gain a proper understanding ofwhereAfricastandswithregardtothenegotiationsandhowtheUN system can provide support to our member States in implement-ingitsoutcomes.NextyearwillleaveusfiveyearstothetargetdateforachievingtheMDGs. Ahigh-levelreviewmeetingisscheduledtotakeplaceinNewYorkinSeptember2010.ItisincumbentforustousethisopportunitytoexplorethepotentialcontributionoftheRCMtothisprocess.

AlsocriticalistheneedtofurtherstrengthentheRCMandachievegreaterinteragencycoherenceinourwork.Inthisregard,weshouldstrivetoenhancethesynergiesbetweentheRCMandtheRegionalDirectorsTeam(RDT).Someregionshavetheexperienceofholdingback-to-backmeetingsofRCMandRDTandweshouldreviewthispracticetoseeifthereisanythingwecanlearnfrom.Wehavetotakeboldstepsinestablishinglinkagesbetweenthetwomechanismsinordertoavoidduplicationofeffortsandwastageofresources.

Asweponderthesequestions,letusbemindfulthatourpreferredsolutionsshouldachievemaximumbenefits,basedoneachother’scomparative advantage, and not to add unnecessary layers andstructures.Weshouldgivesomethoughtstoenhancingthestrongcollaboration that exists betweenECAandUNDPRegional BureauforAfrica(RBA),sincethesearecriticalplayersintheRCMandRDTsrespectively.

Another idea for exploration is that of strengthening the linkagebetween sub-regional coordinationmechanisms (SRCM) ---whoseestablishmentwehavediscussedinpastRCMs---andtheregionaleconomiccommunities.


Theseare just fewpractical suggestions that thismeeting cande-liberateon.Whateverwedecide,letusbeclearonthedivisionoflabour---intermsofgeography,functionsandthematicfocus.

The 10th RCM session is taking place at a time when significantchangesaretakingplaceintheAfricanUnionCommission—initsfocus, orientation, institutional arrangement and relationships. Asyou are aware, the AU Summit of July 2009, in Sirte, decided totransformtheAUCintoanauthorityandreaffirmeditsdecisiontointegrate the NEPAD Secretariat into the structures and processes oftheAUC.Thesesignificantdevelopmentsandinstitutionaltrans-formationswill impactthewaywework insupportofAUandNE-PAD. This is particularly important in the context of theUN Ten-YearCapacityBuildingProgrammewhich thismeetingwill review. Thismeetingshouldcomeupwithclearguidanceonhowwecanjointlyimplementtheprogrammeinthesevenyearsremaining.Ibe-lievethattheRCMwillbeanextremelyusefulmechanismforthispurpose.

Inconclusion,this10thsessionoftheRCMwouldhavebeenanothersuccessifweareabletoaccomplishfoursimpleobjectives:agreeonthemodalitiesforjointsupporttotheRCMsecretariat;bringingtheRDTscloser toRCM;developstrategies forenhanced implementa-tion of the Ten-Year Capacity Building Programme for theAU andNEPAD; and further elaborate our thinking on the establishment of sub-regionalcoordinationmechanismswheretheydonotexist.

266 Part Five

TheAfricanPeerReviewMechanism(APRM)isrecognisedinAfri-caandgloballyasakeyelementoftheNEPADinitiative.Indeed,

it isalaudableattemptbyAfricansthemselvestoimprovegovern-ancebyidentifyingweaknesses,settingbenchmarks,andmonitoringprogressinmeetingthem.Itisauniqueinitiativebecausenootherregionintheworldhasattemptedtoimplementsuchacomprehen-sive,widerangingpeerreviewmechanismcoveringalldimensionsof governance -- democratic and political governance; economicgovernanceandmanagement;corporategovernanceandsocio-eco-nomicdevelopment.

Itispleasingtonotethatuptodate,twenty-sevenAfricancountrieshavesignedupforthereviewandthatfiveofthemhavesuccessfullycompletedtheprocessofreview(Ghana,Rwanda,Kenya,SouthAfri-caandAlgeria).Moreover,severalothercountriesarewelladvancedintheprocess. Forexample,Beninhas justreceivedacountryre-viewvisitandNigeria,UgandaandmostlikelyMozambiquearealsoscheduledforaCountryReviewMission.

Fromallindications,therefore,APRMisverymuchontrackanditismakingprogressdespitesignificantchallengesatboththenationalandcontinental levels. Tobe sure,APRM isa functioningand re-silient governance monitoring and strengthening system that is fast gainingtraction,despiteasteeplearningcurvegivenitsnoveltyand

Giving substantive

support to the APRM process

Expert Group Meeting on Promoting Partnerships in

Support of the African Peer Re-view Mechanism (APRM)

Addis Ababa, Ethiopia15 November 2007


thelackofamodel inotherpartsoftheworldtobedrawnupon.TherearemanypositivelessonsalreadyemergingfromtherolloutexperienceoftheAPRM,althoughmanysignificantchallengesstillremaintobeovercome.

Weat ECAhavebeen a strategic partner to theprocess from theverybeginningandwillcontinuetosupporttheAPRMprocess.Forinstance, inacknowledgementof thehugeanddemandingtaskofpeer review, theAPRMStrategic Partners -- ECA,AfDB andUNDP--arescaling-upsupportandredefiningtheirtoolsandstrategiestofurthersupporttheimplementationoftheNationalPlansofAction(NPoA).Accordingly,weareprovidingtechnicalassistanceonhowtomainstreamtheNPoAintotheplanningandbudgetingprocessesand toalign thePlanofAction intoexistingnationaldevelopmentstrategiessuchaspovertyreductionstrategypapers(PRSPs).

ECA has also facilitated an APRM Peer Learning Group wherebyworkshops, seminars, and e-mail networking are used to enablecountriestoexchangeinformation,experiences,andlessonslearnedwithaviewtoacceleratingthereviewprocessandtheimplementa-tionoftheNationalPlansofAction.Moreover,wehaveestablishedan informationdatabaseonparticipating countries to support thecountryreviewprocess.ThedatabasedrawsonECA’sworkingov-ernance,economicperformance,povertyassessments, tradecom-petitiveness,gender,andotherMDG-relatedindicators.

Inaddition,ECAhasalsoconstructedanAfricanGovernanceExpertsdatabasethatwillassisttheAPRMSecretariatinidentifyingcompe-tent independent African experts in all areas of governance for the CountryReviewMissions.

Anequally importantdimensionof ECA’swork relates toour sub-stantialcontributionstoboththeCountrySupportMissionsandtheCountryReviewMissions.WeremaincommittedtocontinuingthisimportantareaofcollaborationbyprovidingexpertsinalltheAPRMassessmentareasforthesemissions.

An APRM Workshop held in Algiers reached a consensus among APRMparticipatingcountriesthatwouldleadtotherevisionofsomeofthebasictoolsandinstrumentsoftheAPRM.Theseinclude:

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1.RevisionsoftheAPRMQuestionnaire;

2.Revision of the Methodologies and Processes of the APRM;

3.Developmentofaneffectivemonitoringandevaluationframe-work;and

4.ElaborationandimplementationofaneffectivecommunicationstrategyoftheAPRM.

Itismyhopethatthisworkshopwouldcontributetowardsstream-liningandfast-trackingtheAPRMprocessbyfeedingintothedelib-erationsofAlgierslastweek.

OneofthecriticalissuesfacingthesuccessfulimplementationoftheAPRMishowtomobiliseinternalandexternalresourcesinsupportoftheimplementationoftheAPRMProgrammeofAction.However,inthisregard,andinaccordancewithAPRMkeyprinciplesofAfri-canownershipand leadership,countriesareexpectedtohavetheprimary responsibilities for funding identified priority governanceactivities intheNationalProgramofAction. Donorscouldsupple-menttofillinthefinancinggap.ThechallengehereishowtheAPRMshould receiveassistanceoutsideAfricaandstillkeeptheconceptlocal.Inotherwords,howcanAPRMwinthefinancialsupportoftheinternationalcommunityandstillmaintainitsintegrity?

Thisisthequestionthatthisworkshopshoulddebatevigorouslyandhonestlyandcomeupwithsomegoodproposals for implementa-tion.

ThisExpertsGroupMeeting isagoodopportunity foran in-depthlookatthepracticalchallengesfacingtheAPRM,especiallyasmoreandmorecountriesmoveforwardinimplementingtheAPRMpro-cessandtheresultingProgrammeofAction.


ECAinitiatedtheAfricanDevelopmentForumin1999asamulti-stakeholder platform for building consensus on identified key

challenges of African development and the strategies for overcom-ingthem.ThethemeofeachADFhasaddressedapressingdevelop-mentchallenge.Forexample,thefirstADFwasonInformationandCommunicationTechnologywhilethesecondwasontheLeadershipChallengeofHIVandAIDSinAfrica.

ThethemeofthisADF,“YouthandLeadershipinthe21stCentury”waschosenafteraverylonganddeliberativeprocess. ThethemepaystributetotheactualitythatAfricaisa“young”continent-obvi-ouslynot geologically, butdemographically. Close to two-thirdsofourpopulationisbelowtheageof25.Currently,youthaccountfor45%ofthetotallabourforceinourregion,asituationthatisunlikelytochangeintheforeseeablefutureaccordingtolatestprojections.

Youtharea force in society,not justbecause theyare the leadersof tomorrowbutalsobecausetheyarecrucialdriversofprogress.Youngpeopleareamongthemostcreativeandinnovativemembersofanysociety.Criticalactorsinseveralareasofdevelopment,theyaretheinitiatorsofmanyofthe“radical”ideasthatveryoftentrans-formsocieties.NobelLiteraturelaureateWoleSoyinka,anotherillus-trioussonofourcontinentandakeynotespeakeratADFIII,remindsusinhisautobiography,“YouMustSetForthatDawn”,ofthecentral

Involving the youth in Africa’s

development

Opening Statement at the Fifth African Development Forum -

Youth and Leadership in the 21st Century (ADF V)


270 Part Five

importanceofthisformativeperiodofourlives.Tomakeademon-strablecontributiontooursociety,Woleadvises,wemustsetforthatdawn,startearlyinlife.

ThisADF isnot solelyabout the“debts” thatAfricanadult societyowestheiryouth.Thatisonesideofthecoin.Itisalsoabouttheimportantlifecycledecisionsthatyouthmustmake,decisionsabouttheirownvisionof thekindofAfrican society that theyand theirchildrenandgrand-childrenwill live in. Inthiseraofglobalisationandheightenedindividualism,Imustadmit,makingthosedecisionsisoftennoteasy.

ButAfricaistodaymiredinpoverty.ItisthecontinentmakingtheleastprogresstowardsthetargetsoftheMillenniumDevelopmentGoalsandit isthecontinentspokenaboutwithgreaterpessimismthanoptimism.WillouryouthchoosetoliveinanAfricathatisfor-ever described as the laggard in terms of human and social develop-mentamongallregions?AnAfricamiredinpovertyanddisease?AnAfricathatisnottheleaderinaidreceipts?AnAfricathatmakesonlybutmarginalcontributionstothemarchofscienceandtechnology?

Asinheritorsofourcontinent’sfuture,thedecisionsthateachofouryoungpeoplemakehaveenormousconsequencesforourregioninparticularandforhumanityingeneral.Inparticular,whetherAfricareachesthetargetsoftheMillenniumDevelopmentGoalsby2015dependscriticallyonthedecisionsthatyouthmake.

While each of us individual actors can set forth at dawn, there isan important role for our governments, adult society and Africa’sdevelopmentpartnersinmakingtheconditionsunderwhichyoungpeople set forth aspropitious as theypossibly canbe in termsofemployment,goodhealth,highqualityeducationandsoforth.This,Imustadmit,isnotoftenthecase.Youngpeopleandyouthissuesareoftenmarginalised innationaleconomic, socialandpolitical struc-turesandaredisproportionatelyadverselyaffectedbydevelopmentchallengesthatthecontinentfaces.

Inasense,thechallengeofAfricandevelopmentcanbesaidtobethechallengeofcreatinganAfricawherethelife-chancesofyoungpeoplearenot circumscribedbypoverty,unemployment,disease,andpoorqualityeducation.Takeforexamplethecaseofmigration


ofAfrica’syoungtoothercornersoftheglobe.Whilethereisevi-dencethattheevolutionofpersonalaspirationsplaysapart,itisalsoclearthatthelackofemploymentopportunitiesisaprimarycausa-tivefactor.Oureconomiesarenotcreatingenoughmeaningfuljobsforouryoungpeople.

Increasingly,thislackofopportunitiesdrivesthemtotrytomigratetoplaceswherebetteropportunitiesexist.Manylivestragicallyendinthisquestwhilemanyamongthosewhosucceedendupstrugglingatthebottomrungsofthesocietiestowhichtheyhavemigrated.

These problems and challenges can be successfully overcome throughpartnership,apactbetweenyoungandold,andapactthatyouth can onlymakewith itself. Letme in this regard paraphrasetheSecretary-General’scalltoWorldYouthattherecentUNYouthSummit:youth,asleadersofthefutureareessentialtooureffortstomeetthesimplebutpowerfulpeople-centredtargetsoftheMDGs.Butyouthmustmakethemselvesessential,andtherestofus,es-peciallyourleaders,mustmakeitpossibleforyouthtomakethem-selvesessential.

LetusrisefromthisADF,whoseworkprogrammeIamsureweareallnowwellacquaintedwith,resolvedanddeterminedtocreateanewpartnershipwiththeyouth,apartnershipbasedonafirmcom-mitmentbybothnottoabdicateresponsibilitiestoselfandtosoci-etyatlarge.ItismyhopeandexpectationthatwewillrisefromthismeetingwithaconsensusonanactionableagendatoenhancethecontributionofyouthtoAfricandevelopment.

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We have come to the end of a long, demanding, tasking andaboveallveryproductivethreedays. ThisADFatwhichwe

havecentre-stagedyouthandyouthissuesistestimonytoourrec-ognition thatyouth issuesareamong themostpressingproblemsof our region in early 21st century. We have dispassionately dis-cussed,ferventlyargued,andsoberlyreflectedontheseissuesandhavecometoagreementonwhatwe,youthandold,needtodotofaithfullyconfrontandovercometheseproblemsandtobuildanall-inclusiveAfricaneconomicandpoliticalspace.

ThisADFhasremindedusthatAfricanyoutharealive,active,andengagedwith thechallengesofourcontinent. This is largelydue,Ibelieve, to recent improvements ingovernanceacrossour conti-nent.Thereturntodemocracyofmanyofourcountriesafteryearsofmilitarydictatorshipsandbrutalconflictsthatfrightenedcitizensintococoonsofself-preservationiscreatingspaceforall–youngandold-tounleashtheircreativity.Youtheyouthweretheprimarydriv-ersofthischangeanditsmainbeneficiaries.Manyofyouarenowactivelyparticipatinginthepoliticalaffairsofyourcountriesthroughtheyouthwingsof thenewpoliticalparties. Throughthispartici-pation,youarebeingreadiedtoassumeleadership. Iurgeyoutosecure these improvements to ensure that there is no return to the badolddays.

A charge to the African youth

Closing Statement at the Fifth African Development Forum -

“Youth and Leadership in the 21st Century’’



IwasveryencouragedbytheinterventionsofyoungpeopleatthisADF and the expressed willingness of the representatives of ourgovernments and regional bodies suchas theAfricanUnionCom-mission,whoseYouthCharterwas launchedatthisADF,todevotemore resources to youth development and to expand the space for youthengagementwithandparticipation inall spheresofsociety.TheAUCCharter,whichwasdevelopedwiththeactivecontributionandparticipationofyouthfromacrossAfrica,providesaframeworkforallofourcountries,workingtogethertoconfrontandovercomethechallengestoyouthinvolvementingovernance.IurgeallofustoadvocateforthespeedyratificationoftheCharterinallAUMemberStates.

Wehadonemajorobjectiveat thisADF–topropose,basedonareasoneddiscussionanddebateoftheissues,anactionableagendatoadvancethecauseandlife-chancesofyouthinAfrica.Ithinkwehavelargelysucceededinthisgoal-theConsensusdocument–thecapstonedocumentofthisADF-thatyouhaveadopted.Iapplaudallofyouforthisdocument–whichisinaway–anenablingdocu-menttotheAfricanYouthCharter.

TherearesomeboldandinnovativeproposalsintheConsensusDoc-ument,suchas the launchingofanAfricanYouthVolunteerCorpsto addressmanpower and skills gaps in African countries – espe-ciallyincountriesemergingfromconflict;anAfricanYouthExchangeProgrammetopromoteacommonAfricanidentityandcitizenship;programmestomainstreamyouthinnationaldevelopment,peace-building and conflict resolution, and employment. I am furtherencouraged that the Document also called for programmes to pro-moteandsupportyoutheconomicempowerment,especiallyentre-preneurship,notably intheICTsector. Ibelievethatweallyouth,adults,governments,theprivatesectorandourdevelopmentpart-ners,workingtogether,canmakethegoalsbecomeactualitiesear-lierthan2010,thetargetdatethatyouhaveset.

AfricanYouth!Youarethebequestofourcontinenttothefuture.Youare,asSecretaryGeneralKofiAnnansaid,essentialtoourcon-tinent in achieving the MDGs. You have through your eloquentspeeches,verymatureandthoughtfulcontributionstothedebatesinthebreakoutsessions,andthroughyourbehaviourandconduct

274 Part Five

here,shownthatyouarethebestbequest thatourcontinentcanmaketothefutureofhumanity.

Yourgovernments, regional institutionsanddevelopmentpartnersare,Ibelieve,readyandwillingtosupportyoureffortsandtoforgeanewpartnershipwithyouthatwouldadvancethegoalsandob-jectivesclearlyandsoeloquentlyexpressedintheConsensusState-ment.TheMinisterswhospokeheresaidso.Butthatpartnershipmustbebasedonyouracceptanceofresponsibilitytolead,notonclaimsofvictimhoodand/oragitationsforspecialentitlements.

TheUnitedNationssystemwillcontinuetobeyouractivecompan-ioninyoureffortstoplayamoreactiveandpositiveroleinyoursoci-eties.TheireffortsinensuringthesuccessofthisADFtestifytotheircommitmenttoyou.AndIpledgethistoyou:ECAwillremainyoureverpresentally,asIamsurewouldourotherleadingPanAfricaninstitutions,theAfricanUnionCommissionandtheAfricanDevelop-mentBank.TheADF-Vpartnershaveassuredmethatthisisnottheirlastengagementwithyou.Youwillseetheminmanyotherarenas,supportingyou,andthroughadvocacy,amplifyingyourvoice.


This jointAERC/ECAConferenceon“Poverty, Inequality, andLa-bourMarkets”was organised to disseminate the results of an

AERCresearchprogramonthattheme.ECA’spartnershipwithAERCisconsistentwithourgoalofadvancingthefrontiersofknowledgeon issues thatareofcritical importancetoour regionandmakingthatknowledgereadilyavailabletopolicymakersforimproveddeci-sion-making.ECAiscommittedtopartneringwithAfricanresearchinstitutionstoaccompanyourcountriesintheirsearchfordurableanswerstothechallengesofdevelopmentthattheyface.

This Conference is important for reasons thatwe all know – pov-ertyremainsamajordevelopmentchallengeinourregion,aprob-lem thatbarsour access to the clubof developed countries. ButtheConferenceisimportantforanotherreason:becauseitisadis-seminationconference,itunderscoresourfaith,ourconfidencethatknowledgeaboutthedeterminantsofpovertycanhelpusabolishit.GarethStedmanJones,inhis2004book,“AnEndtoPoverty?”,whichtracesthehistoryofideasonpovertyeradicationnotonlyremindsusthatthereoncewasatimewhenitwasbelievedthattheintel-lectualprogressofhumankindwouldbeaccompaniedbyamaterialtransformationof thehumanconditionbut also shows that thoseideasdidindeedcontributetothenearabolitionofpovertyinwest-ernEurope.

Using knowledge and peer learning

to improve policies to reduce poverty in Africa

Joint ECA/AERC Conference on Poverty, Inequality and Labour

Markets

Addis Ababa, Ethiopia11 October 2006

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Moreoftenthatnot, intostoriesonAfricaandAfricancountriesiswoventheword“impoverished”. Evidencetosupportthischarac-terisation abound: Worsening social indicators; conflicts; bottomrankinginallleaguesofhumandevelopment.Butthingsarechang-ing. Strong growthhas resumedandmanyof our countrieshavegrownatmorethan5%perannumconsistentlyoversixyearsnow.This impressiveperformance, as reported in ECA’s 2006EconomicReportonAfricaisnotonlyduetostrongcommodityprices,butalsoduetomuchmoreprudentandknowledge-drivenmacroeconomicpolicies..

Notwithstandingthesedevelopmentsandinitiatives,itisclearthatdespiteimpressivecountry-levelperformancesandoverallimprove-ments inmacro-economic performance, poverty remains high. Itisdifficultformeasadevelopmentpractitionertounderstandwhythis issosinceDemeryandhisco-authorssometimeagoshowedthatgrowthwasassociatedwithpovertyreductioninSub-SaharanAfrica. What the current evidencedoes suggest is thatpresently,ratesofgrowthinAfricaareperformingratherpoorlywithrespecttomeetingtheMDGtargets.Inequalitiesinaccesstosocialservicesandjobsaswellasthepooremploymentgrowthremainaproblem.Thegrowthprocessremainstoonarrowandisgenerallysaidtobewithoutjobs.

Withoutdoubtthestudieswhosemainfindingsyouhavecomeheretodisseminatewillconfirmthecurrentevidenceandalsoproposesomepolicyoptions.

ButIalsohopethatyourconferencewillalsoaddressthemuchmorecriticalquestion:WhatshouldAfricadotosecurethepositivegainsoftherecentpast?Averycommonplaceanswertothisis:

“More emphasis needs to be placed on improving the productivebaseofAfricancountriesandinparallelexpandingmarketaccess.Inthisrespect,bothAfricanleadersanddevelopmentpartnershaveasharedresponsibility.Africanleadersmustcontinuetobesupport-ive of the private sector through the pursuit of prudent policies that nurturedomesticpricestability,minimizethecostofdoingbusiness,promoteexportcompetitivenessandfacilitatemarketaccess.”


Thereisperhapsanotheranswer,notopposedtotheonesabove,butperhaps theunseensuper-structureonwhich theabovearebuilt.Itisknowledge.Knowledgeproduction(whichyoudo);knowledgesharing (what thisconference isabout);andknowledgeuse (whatyouhopetogetoutofthisconference).

Theimportanceofknowledge–inthethreedimensionsmentionedabove– foreconomicgrowth isprettywellknown. FrancisBaconlongagosaid“knowledgeitselfispower”.The1998WorldBankDe-velopmentReport “Knowledge and Information forDevelopment”madethepointthatsuccessfuldevelopmententailsnotjusttheclo-sure of the physical or indeed human capital gaps but also closing the knowledgegap–apointalsomadeinECA’spublication“HarnessingTechnologiesforDevelopment”.TheeconomicjournalistDavidWar-sh,inhisbook“KnowledgeandtheWealthofNations”,putsitverystarkly:“newideas,morethansavingsorinvestmentoreveneduca-tion,arethekeystoprosperity,bothtoprivatefortunes,largeandsmall,andtothewealthofnations–toeconomicgrowth.”Yourpro-fessionwasfixatedonknowledgeinthe1990sasyouengagedwiththe“NewGrowthTheory”followingthepublicationofPaulRomer’sveryinfluentialpaper–“EndogenousTechnologicalChange”–apa-peryouallrefertoas“Romer90”,whichforthefirsttimeincorpo-ratedknowledgeinyourveryfancifulandabstractgrowthmodels.

Onekey lessonthatweatECAhave learnedfromourwork inthenearly50yearsofourexistenceisthatknowledgeaboutpathwaysto improveeconomicmanagementholds thekey todevelopment.Weneedtogeneratenewknowledgeaswellasknowhowtouseit.Knowledgeuseiscriticalforourregion’sprogresstowardsthetar-getsoftheMDGs.Itisforthatreasonthatknowledgeisacutelyem-phasisedinourcurrenteffortstorepositionthisinstitution.Ourcur-renteffortsarethereforestronglygearedtowardsconveyingtoourMemberStatestheviewthatimprovementsintheuseofeconomicknowledgeiscriticalforsecuringtheprogressrecordedrecentlyinAfricaandformovingforward.

WeareredoublingouranalyticalworkonpovertyanalysisandtheMillenniumDevelopmentGoals.Forthisreason,wehavecreatedanewSection,MDGs/PovertyAnalysisandMonitoringSection,toun-derscoretheseriousnessthatweattachtoAfricamakesprogressintheseareas.Akeyandveryimportantcomponentofourworkinthis

278 Part Five

area ispeer learning(onpovertyreductionstrategiesandtheMil-lenniumDevelopmentGoalsandknowledgemanagement. Permitmetoillustratewhatwehavedoneandaredoinginthisareawithourflagshippeerlearninginitiative,theAfricanLearningGrouponPovertyReductionStrategyPapers(PRSP-LG).Iamsuresomeofyouhaveheardofthisinitiative.

ShortlyaftertheintroductionofthePRSPsin1999bytheWBandtheIMFasaprerequisiteforaccesstodebtreliefECAhostedaworkshopfor African countries for dialogue on the PRSP content and process andonitsimplicationsfortheregion.InJuly2000ECAalsolaunchedahigh-levelmissiontoseveralAfricancountriesatdifferentstagesofthePRSPprocessto learnfirst-handhowthesecountriesweread-justingtothePRSPprocessandhowtheywereaddressingthepracti-calchallengestheprocesswasraising.

Onekeymessagethatcameoutoftheworkshopandtheconsulta-tionswithmemberStateswastheviewthattheStructuralAdjust-mentPoliciesofthe1980swouldhavebeenbettermanagediftherehadbeenamechanismforthesystematicsharingofexperienceandpeer learning among countries which could also have provided aplatformforthearticulationofastrongAfricanvoiceintheinterna-tionalcommunityonthecontinent’sexperiencewiththechallengesofadjustmentandpovertyreduction.

Giventhecontextand inrecognitionoftheoperationalchallengesassociatedwiththePRSPapproach,thememberStatesurgedECAtoestablishanAfrican-ownedforumthatwouldfacilitateAfricanpeerlearning and serve as amechanism throughwhich Africans couldensure the relevance of the PRSP approach to Africa’s development challenges.

ECArespondedtothisbysettingtheAfricanLearningGrouponPov-ertyReductionStrategyPapers(PRSP-LG)in2001.TheLGfacilitatedsystematic information sharing among diverse stakeholder groupsinAfricancountries(includingcivilsociety)ontheirexperiencewiththePRSPs,andhelpedidentifybestpracticesandoutstandingimple-mentationchallenges,whileinadditionpromotingpeerlearningandAfricanownershipofpovertyreductionstrategies.


ECA, basedon informationdistilled frommeetings of the LG,wasabletoprovideadvisoryandpolicysupporttoourmemberstates,broker support fromotherdevelopment institutionsandpartners,andnetworkexpertisetoassistAfricancountries.Inordertoinflu-encedonorpoliciesinsupportofnationalpovertyreductionstrate-giesinAfrica,theoutcomeofthejointECA/SPAExpertsgroupmeet-ingwasalsoformallycommunicatedtotheplenarymeetingoftheStrategicPartnershipwithAfricadonorgroups.

ThecrucialroleoftheLGwasrecognizedbytheAfrican(Ministerial)PlenaryonthePRSandMDGsinCairoinMarch,whichcalledonECAtorevivetheLearningGroupandtobroadenitsmandatetoincludelearningontheMillenniumDevelopmentGoals.Mycolleagueswilltell youmoreabout the LGandwhatwearedoing sinceCairo topromotepeer learningonpoverty reduction strategies andMDGssinceCairo.

So,LadiesandGentlemen,broadly,theLGdoeswhatyourConfer-enceseekstodo–disseminateknowledgeonbestpracticesonpov-ertyreductionstrategiesandtheMDGs. Inmanycases,there isadeep aversion for imagining the new, a reluctance to believe thatnewthingscanhappen.Anewidea–andtherearemanyintheareaofeconomicsandeconomicpolicy-triumphsnotbecausethoseop-posed to it arebroughtaround (orundergoaDamascene conver-sion)butbecauseitisembracedbyanewgeneration.ThroughourPeerLearningandKnowledgeSharinginitiatives,wehopetoencour-agenewgenerationsofAfricanpolicymakerstoembracenewideasandthussteerourmemberstatestothenew,toinnovate.Throughthis processwe aim to help ourmember states build appropriateknowledgeassetstosecureandcarryforwardtheirimpressiveper-formancesoftherestpast.

In their book, “Plowing the Sea:Nurturing theHidden Sources ofGrowth in the Developing World”, Fairbanks and Lindsay advisedthat “leaders need to think about developing more sophisticatedknowledgeassets.”Itismyviewthatourleadersarealreadydoingthatasevidencedbythesetofpoliciesandmanagementtechniquesthat theyhave introducedover the recentpast,policiesandman-agementtechniquesthatinpartexplaintherecentimprovementsineconomicperformance.YourConferencewillbearesoundingsuc-

280 Part Five

cessifitcontributesinimportantwaystoassistingcountriesinourregiontodevelopthesophisticatedknowledgeassetsneededcom-batpoverty,reduceinequalityandimprovelabourmarketoutcomesforourpeople.


The themeof thismeeting – “DemocratizingGovernance at re-gional and global level to achieve the Millennium Development

Goals(MDGs)”-resonateswithanywell-informedobserverofAfri-cansocietiesbecauseitunderscorestheimportantroleofpopularparticipation inachievingtheMDGs. Italso indicatesat thesametimethatAfricancountriescannotgoitaloneintheirquestforde-velopmentbutneed towork togetherat the regional leveland inpartnershipwiththerestoftheinternationalcommunity.

MostoftheMDGsarepeoplespecificandsuccessinachievingthemisdependentongenuineownershipandparticipation,whichinturncan only be guaranteed by inclusiveness and equity, the corner-stonesofdemocraticgovernance.AstheonlycontinentthatisnotontracktoachievealltheMDGsbythetargetdateof2015,Africathereforehasaparticular interest inensuring thedemocratisationofgovernancetoachievetheMDGs.Thisishowevernotajobforgovernmentsalonenorisitlimitedtothenationallevel.

It isevident thatAfricancountrieshavemademajorstrides inde-mocratisinggovernance,notablysincethe1990ArushaConference,whichproducedtheAfricanCharterforPopularParticipationinDe-velopmentandTransformation.TheArushadocumentwasamile-stone as it identified the lack of popular participation in develop-ment as central to the dismal state of African economies and also as

Good governance for achieving the

MDGs

The African Civil Society Forum 2007


282 Part Five

acauseofpoliticalinstabilityandsocialcalamity.Itcanindeedbear-guedthatsincethenthecasefordemocracy,freedomofassociation,theruleoflawandeconomicjusticehasnolongerbeeninquestion.

Today, it is widely acknowledged that despite some understand-ablebumpsalongtheway,mostAfricancountriescontinuetomakesteadyprogresswithincreasingpoliticalaccountabilityofthelead-ership, decentralisation of decision-making processes and greaterinvolvementofcitizensinthedevelopmentprocess.Despitethevis-ibleprogressthathasbeenmade,thereremainsa lottobedone.For instance,we should acknowledge that someAfrican countriesareyettoembarkonthispath,dueinmanyinstancestocontinuedconflict and political instability. At the same time, countries thathavecommittedthemselves toenthroningdemocracyandrespectforhumanrightscontinuetoneedsupportinordertobroadenanddeepentheirgovernanceagenda.

Itisnowgenerallyacceptedthatdevelopinganactive,informedandviable civil society has a vital role to play in building enduring democ-racies,underpinnedbygoodgovernancepractices.Awell-developedcivilsocietywidensthedemocraticspaceandfacilitatesopportuni-tiesforcitizens’participationinpoliticalandsociallifebygivingvoicetotheiraspirationsandconcerns.Beyondthishowever,civilsocietyorganizations(CSOs)haveacrucialroletoplayinserviceprovisionaswellasthemonitoringofimpactofpublicaction,especiallywherecapacityisweakandresourcesarescarce.

Africancivilsocietyorganizationshaveplayedacriticalrole inpro-moting democracy and popular participation at country level andhave also contributed to the regional consensus that good govern-ance and sound economic management are key to improving Africa’s long-termdevelopment.Ishouldstresshoweverthattheirrolegoesway beyond advocacy and includes partnership inmaking, imple-mentingandmonitoringpolicyoutcomeseitherworkingtogetherasCSOsor in tandemwithgovernmentsand intergovernmentalbod-ies.CSOsalsohaveanincreasinglyimportantroleinservicedelivery,especiallyinthesocialsector,wheregovernmentresourcesandca-pacitiesarestretchedtotheutmost.


This, in thecontextofour theme,meansthatCSOshaveacriticalparttoplayinsupportinggovernmentstoarticulateandfashionap-propriatestrategiesforscaling-upeffortstoachievetheMDGs.

TheformalandinformalarrangementsthattheUnitedNationshaswithcivilsocietyorganizationsisaptlydemonstratedbytheacronymofoneof the co-organisersof theForum–CONGO–TheConfer-enceofNGOsinConsultativeRelationshipwiththeUnitedNations.ItisthereforequiteclearthatCSOsshouldaccompanytheeffortsoftheUNasitundertakesreformsrelatedtoitsworkindevelopment,peaceandsecurity,humanrightsandtheruleoflaw.NewelementsofthenewinstitutionalarchitectureoftheUNthatshouldthereforeengagetheattentionofthisforumincludethePeacebuildingCom-mission,theHumanRightsCouncilandtheUnitedNationsDemoc-racyFund.

ItisimportanttostressintheparticularcontextofAfricathatpeaceand security is necessary to provide an enabling environment for achievingtheMDGs.GoodgovernancepromotespeaceandstabilityinAfricabygivingvoicetopreviouslymarginalisedcommunitiesandensuringatransparent,fairandequitableaccesstoresources.ThefocusofthisForumonpeaceandhumansecurity,governanceandhumanrights,anddevelopment inall its ramifications is thereforewell-placedasittallieswiththeareasofUNreform.Cooperationinthese areas should also therefore lie at the heart of the increasingly closecollaborationbetweenCSOsandtheUnitedNations.

IshouldstresshoweverthatthecommonengagementoftheUNandCSOsinAfricashouldbedrivenbyAfricanprioritiesandtheAfricanUnionagenda.This,afterall,wasthespiritbehindtheNewPartner-ship for Africa’s Development (NEPAD),which emphasisedAfricanownershipandresponsibilityforthedevelopmentofthecontinent.NEPAD emphasised political, economic and corporate governanceandalsoledtothecreationoftheAfricanPeerReviewMechanism,whichisaconcreteexampleofthepositivestepsthatAfricancoun-triesaretakingoftheirownaccordtoimprovegovernanceinAfrica.AkeyobjectiveofthisforumshouldthereforebetofindwaysandmeansofstrengtheningthepartnershipsbetweenCSOsandtheAf-ricanUnionandtheregionaleconomiccommunitiestosupporttheAfricandevelopmentagenda.

284 Part Five

ECAiswellplacedtoplayacatalyticroleindeepeningtheengage-mentofCSOswithotherkeyactorsattheregionalandgloballevel.ThisisduetoitsdualroleastheregionalarmoftheUnitedNationsaswellasitsclosepartnershipandcollaborationwiththeAfricanUn-ionCommissionandtheNEPADandAPRMsecretariats.AspartofitsrecentrepositioningexerciseandinadditiontotheexistingAfricanCentreforCivilSociety,ECAhascreatedaCivilSocietySectionwithinitsGovernanceandPublicAdministrationDivision.Thissectionwillhelp tomanageknowledge,build consensus andprovideadvisoryservicesinthiscriticalareaofourwork.Itaccordinglyplayedanac-tiveroleinmakingarrangementsforthisForum.

Permit me in this context to also highlight some of the things that CSOskeepinmindastheyseektobuildstrongerpartnershipsinor-dertostrengthenandsupporttheprocessofdemocratisinggovern-anceinAfricaandatthegloballevel.

• Firstofall,IwouldurgeCSOstocontinuetobringforthandgivevoice to issues concerning large segments of the population,includingthosethataffectwomen,childrenandothermargin-alisedgroups. Evenwiththebestof intentions,policymakersoftenhavecompetingdemandsfortheirattentionandneedtobecontinuouslyencouragedtomainstreamtheseconcernsintonationalandregionaldevelopmentstrategies.

• Secondly, CSOs should always seek to make the best use ofexisting representative structures in democratic societies. Inother words, CSOs should strive to work closely with parlia-mentariansandotherrepresentativegroupingstoinfluencethegovernanceagenda.

• Thirdly,CSOsshouldnotspreadthemselves toothinlyonthegroundiftheyaretomakemeaningfulimpact.CONGOisagoodexampleofcomingtogethertopositively influencethedevel-opmentagenda.However,sincecapacitybuildingisoneareainwhichAfricancountriesandinstitutionsneedalotofsupport,capacitydeficitsarisingfromthemultiplicityofCSOsanddupli-cationofeffortsneedtobeovercome.


• Fourthly, andmost importantly CSOs should becomeactivelyengaged in the APRM processwhich anticipates the involve-ment of civil society. CSOs should lend support to countriesthat have acceded to the APRM process and also encourage thosethathavenotyetsubscribedtojointhemechanism.

286 Part Five

TheneedtoscaleupourcollectiveeffortstopreventthespreadofHIV/AIDSiscleartousall.Todate,HIVhasinfectedmorethan50

millionpeopleinAfricaand22millionofthem,manyintheirprimeandmostproductiveyearshavedied.Thisisacriticalemergencyforourcontinent;ourcollectiveroofsareonfire,andwedarenotgotosleep.

Inthatregard,youmayrecallthatECAconvenedtheAfricanDevel-opment Forum 2000 (ADF), which identified AIDS as the greatestleadership challenge and launched an important step in the scaling upofthefightagainstthepandemic.Atthatmeeting,overathou-sandrepresentativesofgovernments(includingseveralservingandformerheadsofgovernment),civilsociety,privatesector,UNagen-cies and other stakeholder groups called for an immediate increase intheresponsetoHIVatalllevels–national,regionalandinterna-tional.Theyalsoplacedaspecialemphasisontheneedfordemon-strableleadershipinthefightagainstHIVatthepersonal,commu-nity,national,regionalandinternationallevels.

OurHeads of State in theAbujaDeclaration onHIV/AIDS, TB andOtherInfectiousDiseasessubsequentlyendorsedtheADF2000Con-sensusStatementinApril2001,whichhaspresentedtheframeworkformanyofouractionsinrecentyears.

Working together to prevent HIV

in Africa

Launch of 2006 as “Year of Acceleration of HIV Prevention

in Africa”

11 April 2006AU, Addis Ababa


Wehavemadesomeworthwhileprogresssincetheninseveralare-as,butthechallengebeforeusisstillimmense.TheSGreport,Secur-ingAfrica’sFuture,theoutcomeoftheCommissiononHIV/AIDSandGovernanceinAfrica(CHGA),whoseSecretariatwashostedbyECA,showedthatsustainedadvocacyeffortsandgrowingawarenessofthedevastatingimpactofHIVhavetranslatedintoheightenedpoliti-calcommitmentandincreasedfundingforpreventiveprogrammes.Campaigns on abstinence, faithfulness and condomuse have alsometwithsomesuccessinsomeAfricancountries,butmoreneedstobedone.

Whiletheeconomicrealitiesinourcountriesvary,weneedtotakestepstoacceleratetheprocessofdedicating15%ofnationalbudgetstohealth,whichourHeadsofStatepromisedintheAbujaDeclara-tion.

InAbuja,ourleadersalsoinstructedECAtocollaboratewiththeAf-ricanUnion(AU),UNAIDSandtheWorldHealthOrganization(WHO)inassessingtheextenttowhichAfricancountrieshaveimplementedtheletterandspiritoftheAbujaDeclaration.

Inthefirstreportonthisissue,ScoringLeadershipforBetterHealth,releasedin2004andcollectivelypreparedbythefourorganisations,wefoundthattheHIVpandemiccanbestoppedinitstracksthroughvisionaryandcommittedleadership,astheexamplesofBotswana,Senegal andUganda showus. The studyalso found thatonly twocountrieshadatthattimecommitted15%oftheirbudgettohealth.Today,more andmoreAfrican countries have done so, and somehaveevengonebeyondit.

Toachievetheobjectivewehavesetourselvesforthisyear intheareaofprevention,thereareseveralpriorityactionsweneedtofo-cuson.Letmehighlightafew.

WemustimprovethequalityofinformationonHIVpreventionandmake itavailabletoall,especiallyourvulnerablegroups.Wemusttakesteps tocounterstigmaanddiscrimination,which thwartoureffortstoachievesuccessinvoluntarytestingandcounselling.

Aswedothis,wemustalsodomoreinthecriticalareaofbehaviourchangeregardingcasualandunprotectedsex,sexualactivityatanearlyageandfidelity. Asdifficultasbehaviourchangemayseem,

288 Part Five

ECA is encouraged by recent results from a number of countrieswheretargetedcommunicationcampaignsandpeereducationhavebroughtaboutsignificantdropsinprevalencerates.

AswescaleupourefforttopreventHIVthisyear,letusalso,inthespiritoftheBrazzavilleCommitments,makethecourageousmovetoalignourbudgetstonationalAIDSplansandbalanceallocationbe-tweenprevention,treatment,careandsupport.

TheCHGAreportunderscorestheneedforanintegratedplanthattakesaccountofthespecificitiesofeachAfricancountry.“Onesizedoesn’tfitall,”saysthereport.Thereis,thereforetheneedto“bal-ancebetweenprevention,treatmentandimpactmitigation.”

This,Ibelieve, is inthetruespiritoftheUniversalAccessinitiative,whichwehaveallcommittedto.AttheAfricanUnionSummitinKhar-touminJanuarythisyear,IthereforepledgedthefullsupportofECAtothis,sothatwecanmakesurethatasmanyofourpeopleaspos-siblehaveaccesstotreatment,preventioncareandsupportby2010.

LetmeconcludebytellingyouwhatECAisdoingintheareaoftreat-ment. Incollaborationwith theWorldHealthOrganizationandtheWorldBank,wehavebeguntothinkseriouslyabouthowtoacceler-ateHIV/AIDS treatment inAfrica,not for threeyears,asmostpro-grammesseemtoprovidefor,butforlife,andhowtoestablishmean-ingfullinkageswithpreventionefforts.

Wearestartingwiththreepilotcountries–Mozambique,GhanaandBurkinaFaso–butlessonslearnedfromthesepilotstudieswillhavewiderimpactacrossAfrica.Atthecentreofourworkisakeyques-tion:WhatdoesittaketoofferlifetimetreatmentsupportforthosewhoneeditinAfrica?

Wewillthereforebehopingtounderstandtheimplicationsofmov-ingfromshorttermtreatmentfinancingwithanexitstrategytolongtermfinancingwithacontinuationstrategy.

Wearealsoasking thesequestions:What is the trajectoryofHIV/AIDS in the near future – resistance to drugs, new antiretrovirals?Howdoweensurethattreatmentreinforcesprevention,andsoon?Indeed,whatchallengesareassociatedwithpredictingafuturewith-outprecedence?


Thereareotherquestions, of course, suchas themacroeconomicimpactsofsuchlifetimesupportonourfragileeconomies.Whowillfootthebillandwhatsectorwillbeimpacted?Weneedtounder-standtheseandotherrelevantquestions.

ECAiscommittedtoworkinghardwiththeAU,UNAIDS,WHOandotherkeypartnerstohelpAfricanStatesfindanswerstotheseques-tions and fight back effectively against all the dimensions of HIV/AIDS.

Thisinitiativetoaccelerateeffortstopreventthespreadofthepan-demic,whichisbeinglaunchedacrosstheregiontoday,isanimpor-tantfrontinthiswarandwe,atECA,arecommittedtostayinginthefrontline.

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Increasingly, the Conference of AfricanMinistersmeeting is beingseenasacredibleplatformfordeliberationanddebateontheAfri-

candevelopmentagenda.ThethemeofthisConference,is“Accelerat-ingAfrica’sGrowthandDevelopmenttomeettheMillenniumDevel-opmentGoals: EmergingChallengesandWayForward”. WhenwemetinAbujain2005toreviewAfrica’sprogresstowardsachievingtheMDGs,yousaidinyourMinisterialStatementthat:

“Strongpoliticalwill,boldanddecisiveaction,isneededtoestablishtheconditionsforachievingsustainedeconomicgrowthandtoreducepoverty,aswellaspromotingsustainabledevelopmentinAfrica.”

In2007,barelytwoyearssinceAbuja,theMDGsareagainthethemeofourConference. A legitimatequestionwouldbewhy theMDGsagainandwhathaschangedsincethen?Theansweristhattheboldanddecisiveactioncalledforinthe2005MinisterialStatementisyettobecomeacontinent-widetrend.Itshouldbenotedhoweverthatseveralcountriesarebeginningtotakestepsintherequireddirection.Thisiscauseforcheer.

Nevertheless,thereisneedforurgencyonourpart.September2007willmarkthemid-waypointontheroadto2015,thetargetdateforachievingtheMDGs.Recentassessments,includingtheonethatwehave prepared for this Conference, indicate that although Africa is

Promoting pro-poor growth to

achieve MDGs

Conference of African Ministers of Finance, Planning and Economic

Development - Fortieth Session of the Commission



makingprogresstowardsthetargets,therateofprogressissoslowthattheregionasawholeisatriskofnotmeetingthegoals.Asweapproachthishalfwaymark,weareremindedthatwewillsoonrunoutoftimetomakethecriticalinvestmentsthatareneededfortheon-targetachievementofthesegoals.Theissuethenishowtobringabouttherequiredtransformation.

TheattainmentoftheMDGsformostAfricancountrieswilldependonourabilitytoresolutelytacklekeychallenges.Whiletheimpor-tanceofthesechallengeswillinevitablyvaryfromcountrytocountry,fiveinterrelatedbroadcategoriesofchallengesfacingmostAfricancountriesshouldbehighlighted.Theseincludesustainingeconomicgrowth;scalingupdevelopmentfinancingandpublicsectorinvest-ments;gettingthepolicyenvironmentright;managingtherisksofglobalisation;andensuringpeaceandsecurity.

Fromtheperspectiveofmeeting theMDGs, thechallengeofeco-nomicgrowthrelatesmainlytothemagnitudeandsourcesofgrowthontheonehandanditsredistributiveeffectsontheother.Intermsofmagnitude,Africancountrieshavetoreducevolatilityingrowthandratchet-upthe5%growthratesrecordedintherecentpasttothe7%adjudgedastheminimumrateforhalvingpovertyby2015.Admittedly,thisisjustanaverageandthequantumofgrowthneed-edwillvaryfromcountrytocountry.

Intermsofsourcesofgrowth,threekeyissuesarise:

• First,countrieshavetomaintainandscaleupthepoliciesthatled to recent improvements in growth. This should include amorevigoroustappingoftheproductivepotentialoftheprivatesector,with particular focus on support to small-scale enter-prises, formalisingand increasingproductivityofthe informalsector,andencouragingnovelnationalfinancialandinnovativesystems that are friendly to small domestic operators. MostAfricancountriesareleastdevelopedcountries(LDCs)andtheimportance of scaling up productive capacities for sustaininggrowthwasrecognisedintheBrusselsPlanofActionadoptedattheThirdUNConferenceontheLeastDevelopedCountries.

• Second,theroleoftheagriculturalsectorasthemajorsourceofgrowthinmostAfricancountriesmustbeemphasisedinall

292 Part Five

governmentpolicies.Inthisrespect,raisingagriculturalproduc-tivityandachievingruraltransformationisparamount.Indeed,theobjectiveshouldbea‘revolutioninAfricanagriculture’bytakingimmediatemeasurestoincreasefarm-levelinvestmentsandaddressingdecliningsoil fertility, landreform,water,andclimaterelatedissues.

• Third,Africancountriesmuststrivetoachieveabreakthroughin the struggle to reform the international trading system sothattheycanbenefitfromthedynamicgainsfromtrade.AfairinternationaltradingsystemisindispensableifAfrica’seconom-icgrowthistobenefitfromtheengineofinternationaltrade.Ithereforeurgeyou,ourMinisters,todoyourutmosttorecon-venetheDohaRoundandtoensurethatitsessentialcharacterasadevelopmentroundisnotweakened.Ishouldstressinthisregardthatexploitingthefullpotentialofintra-Africatradeisanecessarycomplementoftheseefforts.

Employmentcreationforthelargerpartofthepopulationisaveryimportant aspect of the content of growth. Indeed, the centralityofemploymentcreationforpovertyreductionandformeetingtheotherMDGswasaffirmedby theExtraordinary SummitofAfricanUnion Heads of State and Government in Ouagadougou in 2004.Threeitemsinemploymentcreationneedtobeurgentlyplacedontheagenda.Thesearetheformulationandimplementationofpoli-cies toovercome joblessgrowth;ensuring increasedpaidemploy-ment for women, which not only increases their empowerment,butalsohelpsprovideadditionalincometopayforfood,education,andhealthcare;andpayingpriorityattentiontocreatingopportuni-ties foryouthemployment.Widespreadyouthunemploymentcanleadtorestivenessandthreatensocialstability. Ithasalreadyen-genderedaworrisometrendoflife-riskinginternationalmigrationinseveralcountries.

The redistributive effects of economic growth are important andneed tobeaddressed. Thispertainsboth to income inequality intermsoftheunequaldistributionofopportunitiesaswellastheun-equaldistributionofincome.Theseaspectsofinequalitiesoperateintandemtodampenthepoverty-reducingeffectsofgrowthinmanycountries.Theythereforeneedtobetackled.


The second category of challenges relates to the urgent need to scale updomesticandexternalfinancing. The consensusonexternalfi-nancing fromMonterrey andother international processes iswellknownandwidelypublicised,andtheParisDeclarationonAidEffec-tivenessisausefulcomplementtosuchoutcomes.Theissuethere-foreisimplementation.Inthisregard,sincemanyAfricancountriesareLDCs,somejustemergingfromconflict,Africa’spartnersshouldacttoreplenishtheAfricanDevelopmentFund(ADF),whichisacredibleandappropriatefinancingmechanismforsupportingthedevelopmenteffortsofAfricanLDCs.Externalfinancingshouldquitenaturallysupportinternalfinancingwhichentailsascalingupofdomesticresourcemobili-sation.Thismeansincreasingtheratesofdomesticsavings,reducingthehightransactioncostsofdomesticsavingsmobilisationandcreatingabetterinvestmentclimateformobilisingforeignprivatesavings.

Scalingupoffinancingis importantfor increasingpublicsector invest-ments in infrastructure and improving social service delivery. Theemerging consensus is that improved infrastructure and human capaci-tiescanplayacatalyticroleinpromotingthekindofgrowththatwillhelptoachievetheMDGs.Accordingly,weneedtoscaleupinterventionsininfrastructure,inhealthandeducation,inprotectingourenvironment,andinjobcreation,andweneedtodothatnow.Forexample,govern-mentsneedtofulfillthecommitmentthattheymadeintheAbujaDecla-rationonHIV/AIDS,TuberculosisandMalariatoallocatenolessthan15%oftheirannualbudgettohealth.

Athirdsetofchallengesrelatestothepolicyframeworkinwhichthereareanumberofissuestobeaddressed.Forinstance:

• Poverty reduction strategieshave tobeharmonisedandalignedwiththeMillenniumDevelopmentGoals,especiallyinthecontextofscalingup. ThiswaswhytheCairoMeetingoftheECAPeerLearningGrouponPovertyReductionStrategiescalledfortheinclu-sionofMDGsintheremitofitswork.

• Theissueofpolicyspacealsoneedstobeaddressed,especiallyifnationaldevelopmentplansaretobeboldandambitious.Anoverlyrestrictivemacroeconomicpolicyframeworkandonerousinterna-tionalfinancialandtradeobligationsforAfricancountriescouldbeaconstrainttoanyscalingupefforts.ECA’sresearchandknowledgebasedactivitiesarethereforegearedtoaddressingthismatter.

294 Part Five

• Credibleandreliabledatasetsareneededformonitoringandtrack-ingprogressinmeetingtheMDGs.ThiscreatesamajorchallengeofbuildingastatisticalbaseandstatisticalcapacityinAfrica.ECAisworkingcloselywiththeAfricanUnionandAfricanDevelopmentBanktomeetthischallengehead-on.

The fourth category of the challenges is that of managing the risks of globalisation.Ifnotproperlymanaged,globalisationmaybringaboutadverseeffectsoftradeandfinancialopenness.Itcouldalsocontrib-ute to thebraindrainof skilledworkers fromAfrica and certainlyrequires greater partnership in the management of internationaleconomicandfinancialprocesses.TheseriskshavetobemanagedsuchthatAfricareapsthebenefitsofglobalisationwhileminimisingthefall-out.

Ofcourse,itmustbeborneinmindthatsustainedpeace,humanse-curityandgoodgovernancearepreconditionsforachievingAfrica’sdevelopmentaspirationsandarethereforedeservingofequalatten-tion. This is thefifthchallengethat Iwish tohighlight. Formanyyears,peaceandsecurityeludedmanyofourcountries.Countriesspentenormousamountsof limited resourcesonwar. Infrastruc-tureandliveswerelost.Diseasesspreadfasterthantheyotherwisewouldhave. Theeconomiccostof thesewars in termsofgrowthforegone is high. According to a study by two leading observersofAfricaneconomies,oneyearofconflictreducesgrowthratesby2.2%. Thesamestudyestimatedthat itwouldtakeapost-conflictcountry roughly 21 years to achieve the GDP level that it wouldhaveachievedhadtherebeennowar.PeaceandsecurityisthusasinequanonforacceleratinggrowthanddevelopmenttoreachtheMDGsontime.TheAfricanPeerReviewMechanism(APRM),putinplacebyAfricancountriesthemselveswillhelpimprovethecondi-tionsofgovernancethatarenecessaryformaintainingpeace.Itisthereforedeservingofourcontinuedsupport.

We should recognise and applaud the impressive role of the African Union inquellingconflicts inAfricaandwishthemfurthersuccessparticularlyintroubledspotssuchasDarfurandSomalia.Today,thenumberofconflictsinourregionhassubstantiallydecreased.How-ever,weneedtocontinuetosupportandputinplacespecialmecha-nismsforpost-conflictcountriessuchasLiberiaandtheDemocraticRepublicofCongotopreventthemfromslidingback intowarand


civil unrest. ThenewUNPeacebuildingCommissionhas a criticalrole to play in post-conflict reconstruction and development andneedstheassistanceofallconcernedtosucceedinmeetingitsman-date.

In the outcome document of the 2005 UNWorld Summit, coun-trieswith extremepovertywere called upon to adopt and imple-ment“comprehensivenationaldevelopmentstrategiestomeettheinternationallyagreeddevelopmentgoals,includingtheMillenniumDevelopmentGoals”.Indoingthis,itisessentialthatallofus,richandpoor,educatedandnon-educatedalike,regardtheMDGsasourends.Thusfar,mostoftheactivityanddeliberationsontheMDGshasbeencarriedoutatthelevelofgovernmentsanddonors.Thereisverylittlecitizenparticipation.Yetsuccesswilldependcriticallyontheinvolvementofallcitizens.

Before Iconclude,permitmetorefertoClaudeAke,the latepan-AfricanacademicwhoinhisessayonDemocracyandDevelopmentinAfrica,wrotethat:“theproblemisnotsomuchthatdevelopmenthasfailed,asthatitwasneverreallyontheagendainthefirstplace.”Letus collectively resolve thatourefforts toachieve theMDGs inAfricawillnotbedescribedas:‘theproblemwasnotsomuchthatAfricafailedtoreachthetargetsoftheMDGsby2015,butthattheMDGswerenotontheagendainthefirstplace’.LetuscontinuetoputtheMDGssquarelyonouragenda.

Addressing theOAUSummit in June1994,NelsonMandela calledforanAfricanRenaissance,statingthat: “Thetimehasnowcomefora‘newbirth’.Weknowthatwehaveitinourselves,asAfricans,tochangeallthis.Wemustassertourwilltodoso.Wemustsaythat there is no obstacle big enough to stop us from bringing about anAfricanrenaissance.”AllowmetoparaphrasethisgreatAfricanstatesman to say that: ‘Wemust re-assert ourwill to achieve theMDGsbythetargetdate.’

Letuscontinueourcommonendeavourtoactualisethevisionofapeaceful,stable,secureanddevelopedcontinent.

296 Part Five

Tackling climate change:

the abiding challenge of

this era

1st Conference on Climate Change and Development in

Africa (CCDA-I)

Addis Ababa, Ethiopia17 October 2011

Tacklingclimatechangeistheabidingchallengeofthisera.Wehavetofindwaysandmeansofmitigatingandadaptingtothismenace

inordertopreserveourdearplanetasaheritageforgenerationsyetunborn.Accordingly,theClimateInformationforDevelopment(Clim-Dev)Programmesetsouttoscaleupthecapacitiesofkeyinstitutionsandstakeholdersinthecontinenttoimproveclimate-relateddataandobservation,informationservices,policiesandrisk-managementprac-ticesinpriorityclimate-sensitivesectorssuchasagriculture,water,en-ergy,healthandhumansettlements.

Exactlyoneyearago,over700delegatesgatheredinthisveryUNCon-ferenceCentretodeliberateonthetheme:AddressingClimateChangeinAfricawithintheframeworkofthe7thAfricaDevelopmentForum(ADF).ThisConferenceisbeingheldasoneoftherecommendationsof the ADF VII to help us keep the momentum in addressing the exis-tentialthreatthatclimatechangecontinuestoposetoourcontinent.

Theevidenceaboundsallaroundus.ThisyearwehaveseendroughtshittheHornofAfricawithunparalleldevastationthusputtingnearlyamillionpeopleatriskofstarvation.Thisisbutoneincidentastheef-fectsofclimatechangecontinuetohampertheabilityofAfricancoun-triestoaddressthemostbasicneedsoftheirpopulations,includingaccesstofood,cleanwaterandenergy,andpublichealthservices.


There is abundant evidence that most the impact of climate change impactswillbefeltinthewatersectorandthisindeedseemstobethecasewithwidespreadwaterstress,increasedfrequencyandse-verityofdroughtsandfloods,changesinrainfall,retreatofglacierswithimpactsonmajorrivers,andtherisingsealevels.

African farmers’ traditional dependence on rain-fed agriculturemeansthatthecontinent’sentireagriculturalsectorisespeciallyatrisk,givenprolongedperiodsofdroughtsinmanyregions.Inaddi-tion,thereisahugethreattodisplacemillionsfromthecoastanddestroyinfrastructure,tourism,fisheries,thusfurtherleadingtojobloses,andplacingamajorconstraintontheattainmentoftheMDGs,sustainablegrowthanddevelopment.

Indeed,a strongconsensushasemergedamongstakeholders thatAfrica faces the dual challenge of managing climate change and over-comingpoverty.Failingononewillguaranteefailureontheother.Under suchcircumstances,adaptation is clearly themostpressingandurgent,ifnottheonlyviablelineofactionforlargesegmentsofthepopulationinAfrica.Itoffersthechancetomanage,spreadriskandenhancechoices,therebycontributingtosustainabledevelop-mentwhilstdealingwithsocial,economicandsecuritythreatsposedbyclimatechange.ThatiswhyAfrica’sleadershavesaidrepeatedlythatadaptationisanexistentialistissueforthecontinent.

Of course, adaptationwithout rapid andmeaningful cuts in emis-sionstomaintainglobalwarmingatitslowestpossiblelevel,wouldbefutile.ThisexplainsthecriticalimportanceofacoherentAfricanpositiononclimatechangenegotiationsingeneral.

By bringing together policy makers, academicians and practicingstakeholderswe hope to establish a forum for dialogue, enhanceawareness raising andmobilize effective commitment and actionsonthegroundatcountrylevel.

CCDA-IalsoaimstostrengthenAfrica’spositionandparticipationininternational climate change negotiationswith a view to ensuringadequate reflectionof the continent’s concernsandpriorities inapost-2012internationalclimatechangeregime.

Accordingly,thisforumcannotbejustanotheroccasiontohighlightthedifferentdimensionsofclimatechangeimpacts.Rather,wemust

298 Part Five

comeoutwithconcreteand implementableproposalsonhowwecan create enabling environments for our peoples to improve on this adaptivecapacityandturnclimatechangeintoadevelopmentop-portunityforourlocalcommunities,countriesandregions.

SuchanoutcomewillenableAfrica tomakean intellectualcontri-butiontoglobalclimatechangediscourse,andmoresotoclimatechange negotiations which continue in Durban, South Africa nextmonth.

EvenaswedecrytheimpactofclimatechangeonAfrica,weneedtobearinmindthatitpresentsparadoxically,atremendousoppor-tunityforAfricatorevisititsdevelopmentobjectivesandstrategies.Exploitingthisopportunityrequiresintegratinglocalandglobalcon-cerns,addressingimmediateneedswhileinvestinginlongtermcli-matechangescenarios,throughindispensableandsystematicbridgebuildingbetweendevelopmentandenvironment,andbywideningthebasefordecisionmakingatvariouslevels.

It isby linkingpolicyandpracticeinthecontextofclimatechangethatAfricacanbegintoaddressitsdevelopmentprioritiesinamorecoherentandcomprehensivemanner.Thereexistsavastarrayoflo-calactorsandactions,nationalpoliciesthathavedeliveredpositivedevelopmentandclimateoutcomes.Thereisaneedtoexplorethosepolicyoptionsatvariouslevelsandscalethemupwherenecessary,intandemwithinternationalinitiativestoboosttheirimpacts.

Thisiswhyallhandsmustbeondecktoensurethattheoutcomesoftheon-goingclimatechangenegotiationswhichcontinueinDurbanlateronthisyearandtheRio+20SummittakingplaceinBrazilnextyeartakeaccountofAfrica’sinterestsandconcerns.InthecaseofRio+20,ECAisworkingcloselywiththeAUC,AfDBandUNEPtopre-parethebackgrounddocumentsthatwillguideAfrica’snegotiatingposition. Wearealsoorganizing theAfricanRegionalPreparatoryConferenceforRio+20inOctober2011,whereacommonAfricanpositiononthenegotiationswillbeadopted.AsIhavesaidbefore,ourmemberStatesneedtocontinuetopayverycloseattentiontothisprocesswhoseoutcomeswillaffectthefuturegrowthtrajectoryofourcontinent.


Forourpart,letmeassureyouofthefullcommitmentofClimDev-Africapartners toworkwithall stakeholders inaddressingclimatechange for sustainabledevelopment inAfrica. It is in this regard,that ECAwith the generous support of ourmultilateral and bilat-eralpartnerssuchasNorway,UK,Sweden,DenmarkandEuropeanUnion,establishedtheAfricanClimatePolicyCentre(ACPC)tohelpgenerateandharnessknowledge,developcapacity,andproviderel-evanttechnicaladvisoryandcooperationservicestoAfricanmem-berStatesandtheirsub-regionalandregionalorganizations. Itwillcontinue towork as ademand-drivenhubon climate changeanddevelopmentknowledge,advocacyandcapacitymobilisation/build-inginAfrica.

300 Part Five

Adopting a green

economy for Africa’s

structural transformation

African Economic Conference

25 October 2011Addis Ababa

Ourthemeforthisyear’sAfricanEconomicConference-GreenEconomy and Structural Transformation - is particularly rele-

vant,aptandcompelling.Justyesterday,theMinisterialsegmentoftheAfricanPreparatoryMeeting for theRio+20Conferencewhichhas the ‘green economy’ as one of its themes opened in this very hallanditisusefulforustoheartheviewsofawiderconstituencybeforeheadingtoBrazilfortheglobalConferencenextyear.Itisalsoimportanttodeliberateonthe‘greeneconomy’atahigh-levelintel-lectualgatheringsuchasthisbecausethereisstillconcerninsomequartersaboutwhatitmeansforsustainabledevelopmentagendaagreeduponinAgenda21.

Wecanofcourseaddressthisconcernbyclearlydefiningwhatwemeanbythegreeneconomyandtoshowthatitdoesnotsubtractor detract from sustainable development but rather further deepens ourabilitytopromotethebalancedintegrationofitseconomic,so-cialandenvironmentalpillars.Insofarasthegreeneconomymeansimprovingeconomicandsocialwell-beingwhileensuringthatpro-ductionprocessesandconsumptionpatternsdonotfurtherdamagetheenvironmentthentherewouldbenoneedtoquibbleaboutitsimport.

Indeed, it is nowevident to all concerned thatmankind needs tomovefromoldresourceintensivemethodsofgrowthinwhichpro-


gresshasbeenattheexpenseoftheenvironmenttooneinwhichproductivity is boosted by using and managing natural resourcesmoreefficientlyandeffectively. Moreover,economicactivitymusttakeaccountof long-termconsequences for theenvironmentandtheneedtopreserveourcommonheritage for futuregenerationswhilepromotingimprovedsocialconditions.Buildingagreenecon-omyisthereforeanimportantelementofthesolution.

Letmestatehoweverthatcommitmenttobuildingagreeneconomybringsitsownchallenges.Althoughswitchingtoagreengrowthpathmayenableleap-froggingofdirtyandinefficienttechnologies,therearemorefundamentaldilemmastograpplewithincludingcostlyad-aptationandpathdependence.Radicalchangeswouldberequiredinbehaviourfromgovernment,firmsandconsumersandmatchedbysufficientfinancialresourcesifthisapproachistosucceed.WealsofaceapredicamentinthesensethatwhilethepressingpriorityformostAfrican countries is topromote growth that creates jobsthe immediateeffectofon-goinggrowth isashort-run increase indemand for food, energy, andwater thatmay further burden theenvironment.

It is against this background thatwemust examine howbest thegreeneconomycanbringaboutstructuraltransformationinAfrica.Indoing so,however,wemustnote thatAfricahasbeengrowingquite steadily since the turn of the newMillenniumwith growthratesaveragingabout5%.Wethereforeneedtotakethissituationintoaccountaswetrytoshifttoagreengrowthtrajectory,andes-peciallyasourmajordevelopmentpartnersarealsograpplingwithdebt,unemploymentandslowgrowth. Moreover,wemust strivetoensurethatourgrowthprocessesprovide jobopportunities foryoungpeopleandgivethemhopeforthefuture.

In otherwords, to ensure that the green economy contributes tostructural transformation inAfrica,wehave toovercome someofthechallengesIhavejustoutlined.Itwouldalsomeanprovidingapersuasivevisionforthegreeneconomy,promotinggreengrowth,determiningkeysectoralprioritiesandestablishingframeworksforcoordinationatnationalandinternationallevels.

If the green economy is to drive a process of structural transforma-tionitwouldbeimportanttoconveyaclearvisiontoallstakeholders

302 Part Five

ofwhat itentailsandwhat is requiredtobring itabout. Creatingawareness about the concept is an important and necessary firststepinmeetingthisveryimportantrequirement,justasitwouldbenecessarytohighlightitspotentialcontributiontogrowthandstruc-turaltransformation.

Quitefortunately,Africahasanabundanceofnaturalresourcessuchasminerals,fisheries,forests,wind,hydroandsolarwhichprovideitwith options for their long-term use in an eco-friendlymanner.Similarly,itispossibletodriveagreengrowthagendathroughwell-targeted investments inrenewableenergyandmanufacturingpro-cesses thatminimizepollutionand releaseofhazardousand toxicwaste.Thisalsopointstotheopportunitiesthataboundinrecyclingandproperwastemanagement.

The green economy would also need to be properly coordinatedwithon-goingprocessesandmustthereforebeintegratedinnation-aldevelopmentplansandstrategies.AfricancountrieslikeEthiopia,Kenya,Morocco,RwandaandSouthAfricatomentionbutafewaregoodexamplesofhowthegreeneconomycouldbeusedtocreatejobs,generateenergyandaimtowardscarbon-freetargets.Inaddi-tion,governmentsalsohavearoleinestablishingpolicyframeworksthatwillprioritizeinvestmentsinthegreeneconomyandcreatein-centives toovercomenegativeexternalitiesandencourageprivateactorstoembracetheidea.

Itisalsoimportantthatinternationalgovernanceoftheenvironmentpromotesratherthanhindersgreengrowth.Thereislegitimatefearthat a green economymay allow for trade protectionism and theimpositionofadditionalpolicyconditionalitiesbutthisneednotbethecaseifwepromoteandadoptglobalnormsthatmakeiteasiertoproduceandtradeingreengoods.Additionally,sincedevelopedeconomieshavetheresourcesandtechnologicalcapabilitiesneededtoundertakerequiredchanges,seriousconsiderationshouldbegiv-entohowbesttoassistAfricancountriestoimplementagreedout-comesincludingthroughtheprovisionofaccessiblefinance,buildingoflocalcapacities,andaccesstogreentechnologies.


The role of legislation and policy

development in ensuring youth

development at a national level

Strategic future leaders’ public lecture and conference:

23 June 2011Accra, Ghana

Asyoumayallbeaware,aweekfromtoday,theAfricanHeadsofStatewillbemeetinginMalabo,EquatorialGuineatodelib-

erateonyouthdevelopmentunderthetheme“Acceleratingyouthempowermentforsustainabledevelopment.”

Thethemeofthispubliclecture“Lawmaking&policydevelopment:Implicationsonyouthandnationaldevelopment”isthereforeverytimelyandacentralissueinimprovingtheoverallsituationofyoungpeopleinAfrica.

Thereareanumberofreasonswhyyouthdevelopmentshouldbegivenpriority.Fromanequityandhumanrightsperspective,youngpeople constitute a significant proportion of national populationstherefore,theirissueswarrantbeingpriorityonpublicpolicyagen-das.

Secondly,thehighproportionofyoungpeopleisrecognizedasawin-dowofopportunityforrapidhumancapitaldevelopmentandeco-nomicgrowth.Thealternativeimplicationsofpassivelyfocusingonyouth development issues are being experienced in North Africa and MiddleEastwithrevolutionsanduprisingsledbyyoungpeople.

Africashouldbederivingdividendsfromitsveryyoungpopulation.African youth are full of optimism, energy and aspirations that if

304 Part Five

nurturedandfulfilled,wouldnotonlycontributetotheirempower-ment,butalsoleadtoachievingsustainableandinclusiveeconomicandsocialdevelopmentthatwouldenablethecontinenttoachievetheMDGsby2015.

Onthecontrary,youngAfricanstodaycontinuetofacestrikingpara-doxes. They experience extremedisparities in terms of economic,technological, social, political and cultural resources, which varyenormously across regions, countries, localities and populationgroups.Allowmetoreiteratesomefactsaboutthecurrentsituationofyoungpeopleinourcontinent.

The African youth population (15-24 years) will generally remainhighuntil2050withsub-regionalvariations:18.3percent inEast-ernAfrica,18.5percentinCentralAfrica,17.8percentforWesternAfrica,16.4percentforSouthernAfricaand13.9percentforNorthAfrica.forthesameperiod.

SpecificallyinGhana,theyouthpopulationisestimatedtobeat16.9percentin2050.

AnumberofcountriesincludingUgandaandNigeriawherethepop-ulationofyoungpeople(below30years)constitutes70percentand60percentofthetotalpopulationrespectively,andwherefertilityratesremainhigh,arealreadyfeelingthepopulationpressures.

Youngpeopleespeciallyyoungfemales,continuetoexperiencehighunemploymentrateswhichinAfricaisaround20percent,althoughunderemploymentamongyouthisevenagreaterchallenge.

Despiteapplausesofimprovedliteracyratesinthelasttwodecades,thereadingandmath’sproficienciesamongyoungpeoplehavebeenfoundtobeverylow.

Anestimated3.2million youngpeople are livingwithHIV in sub-SaharanAfricaandyoungwomencontinuetodiefrompreventablecauseslikematernalmortality.

Moreso,youngpeoplearevictimsofconflictandinadditiontoma-ternalmortality,opportunitiesforyoungfemales’developmentarehamperedby limited schooling, earlymarriages, labour traffickingandothersocio-culturalfactors.


Noindividual istoblamebutcollectively,wealltakeresponsibilityfor the status of young people in our countries. Recognizing thatyouthindevelopmentisabigchallengetomanyAfricancountries,governmentshaveembarkedonpolicydevelopmentandlegislationtoimproveonthewell-beingandstatusofyoungpeople.

Severalcommitments,policies,andprogrammesonyoutheducationandemploymenthavebeenprioritizedandmadeatnational,sub-regionalandgloballevels;however,thesecommitmentsshouldbetranslated intoaccelerated implementation toensure thatdesiredoutcomesarerealized.

Politicalwillandastrongcommitmentacrosssectorsofasocietyisrequiredtodevelopnationalyouthpoliciessincethereareseveralelements thatneedtobearticulated.Youthparticipation inpolicydevelopment, implementationandmonitoringarecritically impor-tant. Theymustbeempowered tomakedecisionson issues thatimpactontheirlives.

Inorderforyouthpoliciestobeofnationalsignificance,theyshouldrepresentanagreed-uponformulaforbothmeetingtheneedsandaspirations of young people and recognizing their potential as aframeworkforyouthdevelopment.

Butactionsassociatedwiththeformulationofayouthpolicymustfirstofallserveasasymbolofsociety’scommitmentto it’syoungcitizens;communicatingacommonvision for itsyounggenerationandidentifyingtheirneedsandpriorities.

Thepotentialbenefitsthatacountrygainsfromacomprehensivena-tionalyouthpolicyaremanifold.Asaframeworkforcommongoalsandcollectiveaction,itprovidesabasisforequitableandconcerteddistributionofgovernmentresources tomeet theneedsofyouth.Furthermore,anationalyouthpolicygivesvaluable importance toyouthparticipationindecision-makingprocessesinacountryandinthedevelopmentandimplementationofyouthpolicies.

Recently(inMarch2011),duringourannualfourthjointAUC-UNECAconferenceofMinistersofFinance,alotofourdiscussionsfocusedontheformingblocksandparadigmsofadevelopmentalstate.WeallknowthatmanyoftheAfricancountriesincludingGhanahaveat

306 Part Five

onepointintimeprioritizedeconomicdevelopmentandgoneaheadtodesigneffectiveinstrumentstopromotethisgoal.

Suchastateisalsoabletoconstructanddeploytheinstitutionalar-chitecturewithinthestateandmobilizesociety.

BuildingadevelopmentalstatealthoughnotalientoAfrica,maynothaveproduced thedesired results, since formanypost-independ-enceAfricanleaders,developmentwasamajorpreoccupationandthey espoused various developmental ideologies, strategies andpolicies.

FromGhanacameKwameNkrumah’sphilosophyofPan-Africanism,which focused on the need for political and economic liberationthrough the strategyof regional integration, designed to promoteeconomicdevelopmentontheAfricancontinent.

Inreflecting,addressing,beingsensitiveto,andbeingresponsivetoyouth issues,weneedto involveyoungpeopleatallstagesofthepolicycyclewhetherinnationalparliaments,oratthelocaladmin-istrativelevels.

Inaddition,weneedtoadequatelymainstreamyouth issues inallgovernmentpoliciesandnationaldevelopmentplans.Assuch,“pro-poor” strategiesmust be “pro-youth”, and that any developmentinterventionseekingsustainableimpactmustaddresstheyouthco-hort.

Inclusive policies and programmes should take into considerationyoungwomen,youngpeoplelivingwithdisabilities,youthfromverypoorbackgrounds,orphansandyoungpeople livingwithHIV/AIDSandthoseinconflictenvironments.

UNECA,astheregionalarmoftheUNsecretariat,hasformanyyearsembarked on youth related advocacy and assisted countries in our regiontodesignandimplementyouthpoliciesandprogrammes.

Workingverycloselywithourpartners,liketheAfricanUnionCom-mission,civilsocietyandInternationalorganizations,weofferaplat-formforadvocacy,dialogueandassistmemberstatestofulfilltheirinternationallyandregionallyagreedcommitmentsliketheInterna-


tionalYearof theYouth2010-2011andtheAUyouthplan for thedecade.

Inaddition,theAfricanCenterforGenderandSocialDevelopmentDivisionatUNECAoffersaplatformforknowledgesharing, south-south cooperation and sharing of best practice in youth develop-ment.

One such best youth practice on Industrial Skills Development inGhanahasbeencitedinourrecentlypublishedAfricaYouthReport2011.

Iamthereforeconfident that thedeliberationson thecritical roleofyouthdevelopmentatanationallevel,duringthispubliclecturemeetingwillplayakeyroleindevelopinginclusivepoliciesandensur-ingyouthparticipationintheimplementationofyouthprogrammes.

As I conclude, Iwould like to quote KofiAnnan, former SecretaryGeneraloftheUnitedNations,addresstotheWorldConferenceofMinistersResponsibleforYouthinLisbon,1998.

Noone isbornagoodcitizenandnonation isbornademocracy.Rather,bothareprocessesthatcontinuetoevolveovera lifetime.Youngpeoplethereforemustbeincludedfrombirth.Asocietythatcuts itself off from its youth severs its lifeline; it is condemned tobleedtodeath’.

WelookforwardtoworkingwithGhanaandothercountriesonim-plementingtheoutcomesoftheupcomingHeadsofStateSummitthisJuneamongotheryouthinitiatives.

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Enhancing AU’s capacity to achieve its

Strategic Plan

Retreat on the Implementation of UN-AU Ten Year Capacity Building

Programme

Kiriftu Resort and Spa, Debre Zeit, Ethiopia

7-9 September 2011

TheUNSecretaryGeneralandAUCChairpersonsignedtheDec-larationon“EnhancingUN-AUCooperation:Frameworkforthe

TenYearCapacityBuildingProgrammefor theAU” in2006. In theDeclaration, itwas agreed that stockwouldbe takenof efforts toimplementtheTen-YearCapacityBuildingProgrammeatthree-yearintervals.Inlightofthis,the10thRCMsessionrequestedECAtoun-dertake the first triennial review in collaborationwithUNLO/DPA,AfDBandAUC.Thereviewwasindeedundertakenanditsfindingspresentedatthe11thSessionofRCMheldinNovemberlastyear.

Manyofyouwerepresentatthatmeetingduringwhichitwasac-knowledgedthatimplementationoftheTen-YearCapacityBuildingProgrammehadbeenhamperedbytheabsenceofaclearlydefinedwork programme.On that basis, amajor recommendation of the11thSessionofRCMwasthattheSecretariatshouldsteerthepro-cessofelaboratingacomprehensiveworkprogrammewiththeviewtoensuringbettercoordinationandcoherenceaswellassharperfo-cusofcapacitybuildinginterventionsinsupportofAU.

ThisRetreatisanintegralpartoftheprocessofpreparingtheworkprogramme.Youthereforehaveaveryimportanttaskinfrontofyouover thenext threedays.As yougoaboutunpackingAUcapacitybuildingrequirementsandtranslatingthemintoconcreteactivities


thatwill lead to tangible results,dueattentionshouldbegiven tointerventionsthatwillcontributein:

• BuildingacriticalmassofskillswithinAUtoenableittoachieveitsprioritiesandtheobjectivessetoutinitsStrategicPlan;

• Strengthening the tools and processes that support the delivery of services provided by AU; and

• Up-scalingfinancialresourcesavailabletoimplementplannedactivities.

Duringthisexercise,itisparamountthatweacknowledgeandtakeon board relevant aspects aswell as lessons learnt from ongoingeffortsbytheUNsystemandotherpartnersaimedatstrengthen-ingthecapacityofAUtodeliveritsmandatesandprogrammes.Forinstance,within theRCM,manyClustershavedevelopedBusinessPlans–withsomeof theseplanshavingcapacitybuildingcompo-nents. UN agencies are also supporting capacity building of AU,mostlyonbilateral basis, in abroad rangeof areas suchasPeaceandSecurity,Governance,andEmergencyResponse,tonamejustafew.Inaddition,theAUhasengagedotherdevelopmentpartnersoncapacitybuildingissues.

SomeconcreteexamplesofareaswhereUNhassupportedAU in-clude:

• ThecreationandmanagementofadatabasesystemofAfricanelectoral observers and experts;

• Conductingtrainingforpeacesupportoperations;

• CreationofarosterofAfricanmediatorsandexperts;

• FundingtherecruitmentandtrainingofstaffinsomeAUCDi-rectorates;

• Supporting the NEPAD Planning and Coordinating Agency(NPCA)andtheAfricanPeerReviewMechanism(APRM)Sec-retariat; and

310 Part Five

• BuildingAUandRECscapacityfordisasterresponsebytrainingemergencyresponseteams.

The RCM Secretariat and its Clusters have also recorded severalachievementsovertheyears.Keyamongtheseinclude:theestab-lishmentofthejointAUC-ECASecretariatwithdedicatedstafffromthe two institutions; strengtheningof inter and intra-Cluster coor-dination; alignment of UN programmes to NEPAD priorities, andincreasedownershipand leadershipofRCMbyAU-supportedbycreationofNEPADcoordinationunitatAUC.

TheachievementsIhavejusthighlightedhavenotalwaysbeenwith-inthecontextoftheTen-YearCapacityBuildingProgramme.Moreo-ver,whilethemultiplicityofcapacitybuildingactorsassistingAUiscommendable, itcomeswith itsownchallenges includingpossibleduplicationofeffortsandwasteof resources,especially in theab-senceofpropercoordination.Ourefforttodevelopajointandcom-prehensiveworkprogrammeprovidesauniqueopportunitytocoor-dinatecapacitybuildinginterventionsandmitigatethesechallenges.Thiswillnotonlyhelp inbuildingsynergiesbutalso inmaximizingthecollectiveimpactofourinterventions.

Inthisrespect,theimportanceofscalingupanddemonstratingtheresultsofourinterventionsinacrediblemannercannotbeoverem-phasized.ThisisparticularlytruefortheTenYearCapacityBuildingProgrammefortheAUthathasbeeninexistenceforoverfouryears.YouwouldallagreethatithasbeendifficulttoconvincinglyreportonresultsoftheProgrammemostlybecausewehavenotarticulatedalogicalframeworklinkingcapacitybuildinginterventionswithex-pectedoutcomesandimpacts.ThisRetreatthereforelaysthefoun-dationforaddressingthischallengeasitsoutcome–intheformofadraftworkprogramme-willprovidethebasisforobjectivelyassess-ingourperformance.

Anyworkprogramme,asamanagementtool, isonlyusefultotheextentthatconcretemodalitiesareputinplaceforitsimplementa-tionandkeyactorsarecommittedtotheprocess. IthereforeurgeyoutospendsometimeduringthisRetreattoreflectonthemodali-ties for implementing the capacity building interventions that youwillidentifyandretainfortheworkprogramme.Inthisregard,roles,responsibilities, implementationtimeframes,andresourcerequire-


ments–totheextentpossible-shouldbeclearlydefined.ItisalsoworthwhiletoidentifypotentialpartnersthatcouldaccompanytheAUandUNsysteminthislaudableendeavour.

For instance, ECA’s Institute for Economic Development and Plan-ning(IDEP)whoseDirectorispresentherewithushasalongandim-pressive track record on capacity development of African countries and institutions.Theexperienceof IDEPcouldbebrought tobearinacceleratingthe implementationof theTenYearCapacityBuild-ingProgrammeandweshouldexploreoptionstomakethishappen.Similarly,weshouldseekwaysoftappingtheexpertiseofotherinsti-tutionsonthecontinentsuchastheAfricanCapacityBuildingFoun-dation.

ThisRetreatwillonlybeconsideredasuccessifweleaveKuriftuwithadraftcapacitybuildingworkprogrammeforAUwhichshouldbefinalizedandpresentedatthe12thSessionofRCM.LetmeassureyouthatECAiscommittedtosupportingeffortstoacceleratingtheimplementationof theTenYearCapacityBuildingProgrammeandRCMingeneral.

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Harnessing forests for economic livelihoods

High-Level Segment of the Summit of Heads of State and Government of the Amazon, Congo and Borneo-Mekong

Forest Basins

Statement delivered On behalf of Mr. Ban Ki-moon

United Nations Secretary-GeneralBrazzaville, Congo

3 June 2011

It ismysingularhonor to represent theSecretary-Generalof theUnitedNations,Mr.BanKi-moonatthisSummitofHeadsofState

andGovernmentoftheAmazon,CongoandBorneo-MekongForestBasins.IbringyouhiswarmregardsandbestwishesforasuccessfulSummit.

Isaluteyour initiativetoholdthisSummitasoneoftheeventstomark2011astheInternationalYearofForestsproclaimedbytheUNGeneralAssemblyin2006.This is indeeda laudableandlandmarkeventinthehistoryofforestmanagementtheworldover,asitwillsetinmotiondecisiveactiontoachievetangibleanddurableresultsinthenearandlong-term.

Forestgoodsandservicessupportasignificantpartoftheeconomiclivelihoodsofover1billionpeopleintheworld.Theyboostagricul-turalproductivity,providefood,waterandfloodprotectionamongother services. Moreover, forests are important carbon sinks. Yetthesevitalfunctionsofforestsarebeingseverelyunderminedbyde-forestationandforestdegradationresultinginabout20%ofannualglobalcarbondioxideemissions.Therefore,wemuststrengthenourresolvetotakeurgentactiontoarrestforestloss,whichglobally,re-mainssignificant.


Similarly,acrosstheglobe,wecontinuetobattlewiththeeconomic,foodandenergycrises,andtoaddresstheurgentandpressingchal-lengeofclimatechange.Sustainableforestmanagementis inextri-cablylinkedtotheseissuesandoffersustheopportunitytoaddressthem.

TheUnitedNationsForumonForests,throughitscontinuingeffortsto advocate for and guide policies for sustainable forest manage-mentatall levels,hasbeenabletogenerateconsensus,whichhasresultedintheadoptionofthefourGlobalObjectivesonForests.

Theseobjectiveswhichwemustalldeliveroncomprise: reversingthelossofforestcoverworldwidethroughsustainableforestman-agement,consistentwiththeobjectiveofReducingCarbonEmissionfromDeforestationandForestDegradation (REDD),onwhichpro-gress is beingmade, including through theUN-REDDProgramme;enhancing forest-basedeconomic, social andenvironmentalbene-fits;increasingsignificantlytheareaofprotectedforestsworldwide;andreversingthedeclineinofficialdevelopmentassistanceforsus-tainableforestmanagement.

Whatnowremainsistomakethesegoalsareality.Iwishthereforetotakethisopportunitytocall for implementationandactionatascaleandspeedessential toaddressandcounteractdeforestationandforestdegradation,soastoachieveconcreteresultsonsustain-able forestmanagementand improvementof the livelihoods,par-ticularlyofforestdependentcommunities.

ThepresenceatthisSummitofpolitical leadersandpolicymakersatthehighestlevel,andfromcountrieswhoseterritoriescommand80%oftropicalforestsandharbour60%ofglobalbiodiversity,dem-onstratesstrongpoliticalcommitmenttowardslayingafirmbasisforconcreteactionsandtherealizationoftheseGlobalGoals.

ThisSummitisalsosignificantasitbringstobearontheforestagen-da, the required vision for embracing and translating into action,programmesandpoliciesonforestmanagement.Therefore,thees-tablishmentofSouth-SouthandNorth-Southcooperationforforestandclimatechange,asanoutcomeofthisSummitisverywelcome,asitwillprovidethenecessaryframeworkforcollectiveaction.

314 Part Five

Suchtriangularcooperationwillfacilitateresourcemobilisationandhelp to up-scale the diverse and rich experiences, including bestpracticesonsustainableforestmanagementgatheredovertheyears.What immediately comes into mind in this regard is the commend-ableeffortofBrazilthathasresultedintoreductionofdeforestationto 67% below the average annual rate from the decade between1996and2005.

I am heartened that this Summit also aims at strengthening policy coherence for forestmanagement, climate changemitigation andthetransitiontogreeneconomies.TheSummitoutcomeswillcon-tributetoandguidethedeliberationsattheupcoming17thConfer-enceofPartiestotheUnitedNationsFrameworkConventiononCli-mateChangetobeheldinDurban,SouthAfricatowardstheendoftheyear,andtheUnitedNationsConferenceonSustainableDevel-opmentorRio+20tobeheldinRiodeJaneiro,Brazilinaboutayear.

Giventhehigh-levelrepresentation,aswellasthewide-rangingex-pertise and experience that this Summit has gathered together, Iamconfidentthatitsoutcomeswillbeinstrumentalandwouldalsolend great momentum to sustainable forest management and the achievementofsustainabledevelopmentatalllevels.

Aswe deliberate on sound strategies and action plan on thewayforwardtowardsasustainablemanagementofforestecosystemsinthethreebasins,IwishtoassureallofthecontinuedsupportoftheUnitedNationssystemtowardsachievingthisnobleobjective.


Exploring hydropower for

sustainable development in

Africa

Meeting on Hydro-power for Sustainable Development 2011


I ampleasedtohavetheopportunitytosayafewwordsatthismeet-ingon‘HydropowerforSustainableDevelopment’.Ibelievethatthe

choiceofthethemeistimelybecauseitfocusesattentiononamatterofgreatimportanceforusinAfricaandIthereforethanktheorganizersaccordingly.

ItisparticularlyappropriatethatthisconferenceisholdinginEthiopiabe-cause of clear and demonstrable commitment on the part of its govern-menttolaunchaspartofitsgrowthandtransformationplan,hydropow-erandotherrenewableenergyresourcesprojectsaimedatgeneratingabout10,000megawattsoverthenextfiveyears.IsalutePrimeMinisterMelesZenawionthisinspiringvision.

ItiscommonknowledgethatAfricaisverywellendowedwitharichva-rietyofenergyresources,includingoil,coal,andotherfossilfuels,hydro-electricity,solarandothersourcesofrenewableenergy.Paradoxically,however,Africahasyettofullyexploitthismassiveenergypotentialtobuttressandsustainitsdevelopment.Whethermeasuredingenerationcapacity,electricityconsumption,orsecurityofsupply,Africa’spowerin-frastructuredeliversonlyafractionoftheservicefoundelsewhereinthedevelopingworld.

Africawith14%oftheglobalpopulationproducesonlyabout3%oftheworld’selectricity.Fromabusinessviewpoint,powershortagesandregu-

316 Part Five

larinterruptionstoservicesarethenormandthiscausesAfrica’sfirmstoloseabout5%oftheirsales,whiletheeconomiccostsofpoweroutagesinAfricahavebeenestimatedataroundonetotwopercentofGDP.

Atthesametime,wearecompelledtoadapttoclimatechangeandpro-moteenvironmentalsustainabilitywhichmeansthatweshouldbeinno-vativeinseekingenergysolutions.Already,fossilfuelsaccountforalargeshareofindustrialandhouseholdenergyneeds,whichtakentogetherwith increasing greenhouses gases, dwindling reserves and escalatingglobalenergydemandhavemadeitimperativetolookforoptionsformeetingpresentandfutureenergyrequirementsinasustainableman-ner.

These two challenges of inadequate power generation and the needfortransitiontolowcarbonmeansofpowergenerationwillimpactontheotherwisepositivestoryofrecenteconomicgrowthinAfrica. WeknowthatimprovementsininfrastructurehavecontributedagreatdealtoAfrica’sgrowthresurgence.However,thishasbeenmainlyduetotel-ecommunicationsandwehavenotseenanysignificantimprovementinthequantityandqualityofpowerinfrastructure.Itisthereforeimpera-tivetoexploitandmaximiseAfrica’spowerpotentialinordertoincreasetheeconomicandsocialgainsthatthecontinenthasworkedsohardtoachieveintherecentpast.

Thisiswherehydropowerhasaparticularlyimportantroletoplayaswewillincreasinglyneedtolooktolesscarbonintensivepowerplantswhicharealsolargeenoughtoenabletheeconomiesofscalethatwilllowertheunitcostsofpower. Africaiscurrentlyusingonly7%ofitshydro-powerpotentialenergysourcesdespiteitssignificantpotentialtobridgethiscontinent’senergydeficit.Thiswillalsomeantakingaregionalper-spectivebecausesomeindividualAfricancountriesmightnotbelargeenough to undertake the investment required. Indeed,many of oursmallereconomiesconsumelessthan500megawattsofelectricityperyear,afigurethatprecludesthedevelopmentoflargehydropowerdams.

Thefactofsharedwaterresourcesalsomeanscloseregionalcoopera-tioniftheyaretobeusedinanoptimalmanner.Regionalcooperationisalso important because there is an intriguing imbalance in the availabil-ityofenergyresourcesacrossAfrica’ssub-regions.WhilecoalresourcesaremostlylocatedinSouthernAfrica,crudeoilandnaturalgasaremoreprevalentinthewesternandnorthernpartsofthecontinentwhile51%


ofhydropowerresourcesareinthecentralandeasternsub-regions.In-deed,theDemocraticRepublicofCongoandEthiopiatogetheraccountformuchofthehydropowerpotentialofthecontinent.

This suggests to me that energy development in Africa has to be a re-gionalintegrationissue,focusingonthoseprojectsthatwilldeliverthegreatestregionalbenefit.Iamnotsayingthatnationalprojectsarenotimportant,butmerelyemphasizingthatourenergydevelopmentneedsare intertwinedandcannotbedeliveredwithoutregionalenergypro-jects.Nationalprojectsareofcoursecriticalasenergycannotbetrans-mittedacrosscountriesifnationalgridsdonotexist.

Theinevitableneedtoresorttohydropower,includingthrougharegion-alapproachleadsnaturallytotheissueoffinancing.Recentestimatesfrom theWorldBankplacedAfrica’s infrastructurefinancingneedsataboutUS$93billionannuallyoverthenextdecade,and40%ofthisfig-urewillberequiredinthepowersector.TheissueisnotjustoneofthelargemagnitudeoffundsrequiredbutalsoarealisationthattraditionalsourcesofpowerprojectfinancingandinvestmenthavenotdeliveredmanypowerprojectsinAfrica.Ofcourseweunderstandthatduetohighup-front investment requirements,powerprojects arenecessarilynoteasytofinance.Thereisaplethoraofreasonsforthis,thatourprojectsarenotproperlystructured;thatwedonothavesuitablevehiclesforstartingregionalprojects,orthatthesovereignrisk is ratherhighandourcountriesdonotcarrysufficientcreditrating.Further,wearetoldthatwedonothavethetechnicalcapacitytoruntheseprojectsasviablebusinessesandthatourtariffsarenotsufficientlycostreflectivetojustifythelargepowerinvestments.

IamthereforehopingthatyourmeetingwillmakeconcretesuggestionsonhowtoattracttherequiredinvestmentsinpowerprojectsincludinghydropowerplantsinAfrica.WeknowofcoursethattheG20followingitsSeoulSummithasput inplaceaHighLevelPanelonInfrastructureInvestmentwhichwillamongotherthingsexplorethepossibilityofusingglobalsavingsforinvestmentininfrastructure.ThePanelwillnodoubtappreciateanyworkablesuggestionsandproposalsthatemanatefromthisconferencewhenyoudiscussfinanceandinvestments.

BeforeIconclude,letmethanktheotherorganizersandsponsorsofthisconference, InternationalHydropowerAssociation,Sinohydro,andourpartner,theAfricanUnionCommission,fortheresources,effortsand

318 Part Five

hardworkputintoensurethesuccessofthismeeting.IassureyouofECA’scontinuedsupportandcommitmenttoimprovingregionalintegra-tionandpromotingenergydevelopment tounderpin thegrowthandeconomictransformationofthiscontinent.


Green growth and sustainable development governance: Rio+20 and

beyond

Global Green Growth Summit 2011

Seoul, Korea20 June 2011

Thetopicofgreengrowthandthegovernanceofsustainablede-velopment is a compelling one because the green economy forms

oneofthetwosubstantiveitemsontheagendafortheforthcomingUnitedNationsConferenceonSustainableDevelopmentalsoknownasRio+20whichwillbetakingplaceinRiodeJaneiro,Brazilinjustunderoneyear.Moreover,recurringcrisesinfood,fuel,financeandclimatechangeeventshavehighlightedtheneedtoadoptnewap-proachestogrowth.Inaddition,thedebatesthatwehavehadonthethemesofarshowsthatseveralconstituenciesarestillstrugglingtoreachacommonunderstandingofwhatthegreeneconomymeansforthesustainabledevelopmentagenda.Somepeoplewonderwhytheswitchtotalkingaboutagreeneconomyif itmeansthesamethingasthetriedandtestednotionofsustainabledevelopment?

Fortunately,wedonothavetograpplewithsuchdifferencesofopin-ionasourfocusisongreengrowth,whichfitsinwellundertheru-bricofsustainabledevelopment.Thereisnownodebateabouttheneedtorethinktheexistinggrowthparadigmgiventhechallengesofenvironmentalsustainabilitysuchasclimatechange,degradationofnaturalresourcesandlossofbiodiversity.Itisnowevidenttoallthat humanity needs to move from old resource intensive methods ofgrowthinwhichprogresshasbeenattheexpenseoftheenviron-menttooneinwhichproductivityisboostedbyusingandmanagingnaturalresourcesmoreefficientlyandeffectively.Atthesametime,

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economicactivitymusttakeaccountoflong-termconsequencesfortheenvironmentwhilewealsoreconsiderwaysofmeasuringpro-gress to take account of other factors including the environmental qualityof life. Greengrowthisthereforeanimportantelementofthesolution.

Despite the attractive argument that switching to a green growthpathmayenableleap-froggingofdirtyandinefficienttechnologies,Iwouldpositthatitposesmorefundamentaldilemmaswhichiswhywemustpayattentiontothegovernanceoftheprocessofsustain-abledevelopment.Tostartwith,transitiontoagreengrowthpara-digmposesproblemsofpathdependence. Italsohas implicationsforeffortstoreducepovertyandcreatejobsandmaygivecauseforconcernabouttradeprotectionismandpolicyconditionality.

Existingeconomicstructuresarepathdependentinthesensethatitiseasiertouseexistingstructuresinwhichaccompanyingtechnolo-gies,skills,practicesandprocessesarelocked-inratherthanchangetoagreengrowthtrajectory.Radicalchangeswouldberequiredinbehaviourfromgovernment,firmsandconsumersbuttheprocessofpromotinggreengrowthwithrequiresreplacementorupscalingoftechnologieswillbecostly.Thisalsomeansthatthemoredevelopedeconomieswouldhavetheinitialadvantageoverdevelopingcoun-triesbecausetheyhavetheresourcesandtechnologicalcapabilitiesneededtoundertakerequiredchanges.Governanceframeworksforgreengrowthwouldneedtotaketheseconsiderationsintoaccount.

ThepressingpriorityforAfricancountriesistopromotegrowththatcancreatejobsandhelptomeettheMDGs.Sucheffortstoimprovewelfarewillentailanincreaseinconsumptionoffood,energy,andwaterbutgiventhewaythathumanactivityhasmettheseneedsupuntilnowitisinevitableintheshortrunthatgrowthindevelop-ingeconomieswilladdtotheburdenontheenvironment.Itwouldaccordingly be important to fashion policies for transiting in theshort-term to sustainable development using already existing op-portunitieswhilealsoundertakinglong-terminvestmentpoliciesforgreengrowth.Theimportantthingherewouldbestrikingtherightbalance. Eventhenowincreasinglywelcomeapproachofbuildinghydroelectric damswhich are of low carbon intensitymay attractconcernsaboutenvironmentaldegradation.


Therearealsolegitimateconcernsaboutthepotentialharmoftheregulatoryframeworkthatwouldneedtobedrawnuptopromotegreengrowth.Certainpolicieswouldneedtobeadoptedinorderto give furthermomentum to the process of green growth eitherbypromotingcertaintechnologiesorstandardsorprohibitingsomeexistingpractices.Thereisalegitimatefearthatsuchpoliciesmaynotonlyleadtoalossofcompetitivenessbutalsoallowfortradepro-tectionismandtheimpositionofadditionalpolicyconditionalitiesforofficialdevelopmentassistanceofdebtrelief.Thisagainpointstotheimportanceofgovernancemechanisms.

Against this background, African countries have espoused and ad-heredtothepathofgreengrowth.Thiswasreaffirmedatthisyear’sAU-ECA’sconferenceofAfricanMinisters’responsibleforFinanceandEconomicPlanning.TheMinistersatthismeetingunderscoredtheircommitment toexploitnewmodelsofgrowth that ismuch less in-tensiveinnaturalresourcesandthatcanleadtosocialwell-beingandpovertyreductioninAfricaatthesametimefindingtherightbalancebetween economic growth and preserving environmental integrity.Wemustnotethatitis“earlydays”toreportAfricansuccessstories.However,thecommitmentoftheMinisters isanchoredonfourkeyprinciplesforsustainabledevelopmentgovernance.

First,greengrowthwouldbebestpromotedbybuildingitintonation-aldevelopmentplansandstrategies.Inadditiontoprovidingavision,suchastepwillgivetherightsignalstoothereconomicactorsintermsofcoordinationandforwardplanningoftheirownactivities.Similarly,itwillhelptodeterminewhatbalanceofmarketandpricebasedin-strumentsversusgovernmentregulationshouldguidegreengrowthactivities.Wealreadyhavethegoodexampleofourhostcountry,Ko-reawhichhasanationalstrategyforgreengrowth.InAfrica,severalcountries, including SouthAfrica,Kenya,Rwanda,MozambiqueandMoroccohavetakensimilarsteps.

Thesecondpointrelatesontheonehandtofindingappropriatepoli-ciestoovercomeexistingconstraintstogreengrowthespeciallypathdependencewhilefosteringinvestmentandinnovationontheother.To changebehaviour in favourof greengrowth, itwouldbeneces-sarytohaveapolicyframeworkthatencouragesre-trainingandre-toolingpossiblythroughtheuseofsubsidiesaswellaspreventingorprohibitingcertainoutcomessuchasthelimitationofcarbondioxide

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emissions.Onthemorepositiveside,innovationwouldberequiredinthinkingabouthowtouseexistingprocessesandtechnologiesinamoreenvironmentallyfriendlywayaswellasinpromotingpublicandprivateinvestmentandthedevelopmentofnewtechnologies.

Third,itwouldbeimportantthatthegovernanceofgreengrowthisinclusiveofallsectorsandstakeholders.Allsectorsoftheeconomyshouldbepartofthegreengrowthagendajustasthepeopletobemost affected by proposed changes should be consulted to obtaintheirbuy-in.Thereisasocialdimensiontosustainabledevelopmentwhichmustensuretheaccessofpoorpeopletofood,water,energy,educationandhealthcare.

Fourthistheinternationaldimensionofgoverningsustainabledevel-opment.Itisimportantthatweacttostrengtheninternationalgov-ernanceoftheenvironmentbypromotingagreementsthataccompa-nyratherthanhindergreengrowth.Inthisregard,weshouldnotletenvironmentalregulationsbecomeanotherformoftradeprotection-ism.Rather,wemustandshouldseektopromoteandadoptglobalnormsthatmakeiteasiertoproduceandtradeingreengoods.

The provision of finance through international frameworks is alsoimportantsincesubstantialfundswillberequiredtofundthegreengrowthprocess.Variousscenariosshowthathugeamountsareneed-ed for halving carbon dioxide emissions or for undertaking clean energy investment.TheestablishmentofaGreenClimateFundinCancunisagoodfirststepinhelpingtofundthetransitiontolowcarbonecono-mies but this must be complemented by public and private investment fromthosewiththeresourcestosupportgreengrowthindevelopingeconomies.Inthisregard,AfricasupportstheestablishmentofAfricaGreenFundwithintheAfricanDevelopmentBank.

Itisobviousthatsuccessinpromotinggreengrowthdependsgreatlyonhowwellwegovernsustainabledevelopment.ToquotetheGlobalFootprintNetwork:

“Sustainabilitywillremainelusiveifwedonotdesignwaystolivewithinthemeansofoneplanetandsustainabilitywillre-mainequallyelusiveifthereisnohopeforallforabetterlifeonthatoneplanet”.


Letme end by reiterating ECA’s commitment to collaborate closelywith the African Union to solidifying the continental green-growthagenda.WeshallalsouseouradvisoryservicestoprovidetechnicalsupportfortheimplementationoftheagendabyourmemberStates.

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