the compact for african recovery eca-cea. the compact is an african initiative the compact is...
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The Compact forThe Compact forAfrican RecoveryAfrican Recovery
ECA-CEA
The Compact is an African Initiative
The Compact is founded on a new way of doing business within Africa, linked to a transformed international partnership
The Compact recognizes
solving Africa’s problem is foremost task for Africa’s leaders
At current trends Africa will not meet the International Development Goals by 2015
The Compact recognises diversity of African experiences and prospects.
The Compact is based on realistic assessment where the obstacles lie
The Compact recognises diversity of African experiences and prospects.
The Compact is based on realistic assessment where the obstacles lie
The MAP and Compact
• The MAP is a breakthrough initiative - it provides political vision and leadership
• The MAP holds out the prospects of African ownership of a continent- wide plan for African renewal
The MAP and Compact (cont’d)
They are essential counterparts: share the vision and the same priority
• Compact provides implementation of key measures called for by the MAP
• Compact proposes new modalities for international partnership that will be critical to ensure MAP success
Foundation of the Compact is a commitment by African governments to put their their houses in order
Poverty Reduction
Good Governance
At the heart of the Compact
Improving Economic Performance
Good Governance Peace and Security
To attain poverty reduction and overcome formidable challenges
The road to good governance is well mapped out
Good Governance
Voting and institutional capacity
Participation of stakeholders
Accountability and Transparency
Improved info processing and dissemination
Africa at the dawn of the 21 Century
impressive economic progress in the 1990s but we have not yet broken out of the vicious cycle
Low savings, investment, insufficient growth, debt overhang and severe poverty
Poverty is increasing Poverty is increasing
0
50
100
150
200
250
300
350
400
450
1987 1998 2015
People live on$1/day
Projectionwith lowgrowth
0
50
100
150
200
250
300
350
400
450
1987 1998 2015
People live on$1/day
Projectionwith lowgrowth
Halving poverty by 2015
requires 7% GDP growth 33% Investment (40% for SSA)
0.090
0.082
0.068 0.067
0.0560.053
0.046
0.000
0.010
0.020
0.030
0.040
0.050
0.060
0.070
0.080
0.090
1991 1992 1993 1994 1995 1996 1997
The Proportion (%) of OECD Countries' GNP Received by Africa as Aid
Improving Economic Performance
Sound Macro Policies
Improving Economic Performance
Invest for human development: healthy and well-educated population
Improving Economic Performance
Structurally diversified economy
Improving Economic Performance
Low external dependency
Improving Economic Performance
Lower costs of doing business
Improving Economic Performance
Domestic resource mobilisation for growth
into a Virtuous cycle of:
growth for poverty reduction
Key Areas for joint African-International Action
Promoting Regional Cooperation
Four Major Challenges
Overcoming HIV/AIDS - a question of survival
Improving quality of Human Resources by promoting basic Health and Education
Improving Africa’s Competitiveness - ICT, R&D and Infrastructure
Overcome HIV/AIDS PandemicAfrica’s number one survival issueOvercome HIV/AIDS PandemicAfrica’s number one survival issue
African Govt take leadership and prioritymobilize resourcesinvolve people with
HIV/AIDSinduce participation combat stigmareaching out to young
African Govt take leadership and prioritymobilize resourcesinvolve people with
HIV/AIDSinduce participation combat stigmareaching out to young
International Partners
provide grants
- not loans
facilitate access
reduce cost of medicines
fund for vaccines
provide effective programme
International Partners
provide grants
- not loans
facilitate access
reduce cost of medicines
fund for vaccines
provide effective programme
Provide Basic Health Servicescurrent $10 to minimum $45-60/year Provide Basic Health Servicescurrent $10 to minimum $45-60/year
African Govt
improve efficiency of public services
prioritize basic public health services
adopt specific target for TB and malaria
African Govt
improve efficiency of public services
prioritize basic public health services
adopt specific target for TB and malaria
International Partners
establish the principle to support essential health services
provide financial support to health services and public programme
International Partners
establish the principle to support essential health services
provide financial support to health services and public programme
Invest in Peopleincrease resources for education
Invest in Peopleincrease resources for education
African Govt
sustain efforts to provide universal education
prioritize resources for education in budgets
target to overcome the gender gap
African Govt
sustain efforts to provide universal education
prioritize resources for education in budgets
target to overcome the gender gap
International Partners
increase financial commitment to education
establish principle of supporting basic education in international partnership
mobilize a wide coalition
support tertiary education and research
International Partners
increase financial commitment to education
establish principle of supporting basic education in international partnership
mobilize a wide coalition
support tertiary education and research
Provide ICT and Narrow the Digital Divide
•
Provide ICT and Narrow the Digital Divide
Provide ICT and Narrow the Digital Divide
African Govt
invest in ICT infrastructures
establish effective legal and regulatory systems
utilize ICT in specific sectors: education and health care
African Govt
invest in ICT infrastructures
establish effective legal and regulatory systems
utilize ICT in specific sectors: education and health care
International Partners
promote existing and new ICT initiatives
enhance G8 Dotforce support innovative initiatives forge partnership
mechanism
support infrastructure and capacity
International Partners
promote existing and new ICT initiatives
enhance G8 Dotforce support innovative initiatives forge partnership
mechanism
support infrastructure and capacity
Enhance Research Capacitiesto enhance Africa’s competitiveness
•Promote research for finding solutions to Africa’s problems
•Develop research institutions and networks
•Promote public policy research and partnership
•Encourage joint-African research and education initiatives
Improve Key Infrastructure estimated required investment is $18 billion/year
•Boosting investment•provide basic hard infrastructure•upgrade urban infra and develop rural infra
•Improving policies and management
•More efficient utilisation of shared resources - water and trans-border land
•Improving regional co-operation
Accelerate Regional Integration
Strengthen Regional Cooperation •Key actions demand regional approach
•HIV/AIDS, peace and security, financial market •Research and infrastructure
•Key actions to spur economic growth and poverty reduction are greatly facilitated by cooperation across the continent
•Consolidation into regional trading blocks is a prerequisite for development•Africa needs more investment in regional public goods
Strengthening Regional Cooperation is a prime area for partnership •Need to find the means of achieving greater economic and political unity
•First, need to build the capacity of existing regional and sub-regional organizations
•Need to find their modalities for harmonisation and co-operation
New Forms of International
Partnerships with Africa
Why Reforms in International Partnership ?
•Aid has had success but growing mutual dissatisfaction - a circle of high expectations & grand promises, incomplete achievement of goals, and frustrations
•African government: facing debt overhang•Africa’s new generation:
- growing up with debts run by their ancestor
What needs to be done?
need more transparency and accountability:
how can aid process promote democracy if it
itself is not transparent?
Need longer term, stable assistance provision:assistance with a short planning horizon is unpredictable & subject to unilateral change
Need to simplify and harmonise aid conditionalities
The test for donors will be to hold onto their current aid levels, while distributing their aid more thoughtfully.
ODA is crucial for African recovery
Sizable interregional shifts of ODA to the poorer countries
Therefore,
Increasing Resource Flows
More Aid
Rapid Debt relief
Improved Market access
Debt Relief
Debt relief actions are intended to be speedy, but agreements and disbursements still lag;
The goal should be a lasting exit from the debt problem;
commitments to not again build up unsustainable debts;
A premium on grant aid
Converting IDA into a full grant facility
Implementing the Compact
Here is How the Compact Would Work
Guiding PrinciplesGuiding Principles
Four PrinciplesFour Principles African ownership
– policies and programmes for poverty reduction
Stable long-term resource flows
– predictability of donor support
Transformed partnership
– peer review and performance monitoring
Recognition of Africa’s diversity
– different progress in governance and economic management
African ownership
– policies and programmes for poverty reduction
Stable long-term resource flows
– predictability of donor support
Transformed partnership
– peer review and performance monitoring
Recognition of Africa’s diversity
– different progress in governance and economic management
The Way Ahead
Political Leadership in Africa
Leadership is a fundamental precondition to realize the objectives
MAP is setting up the Heads of State Forum (HSF)
Heads of State Forum (HSF)Heads of State Forum (HSF)
Symbolise and realise African ownership
provides leadership to obtain continent-wide consensus and momentum
Key mechanism for mutual accountability
raise issues with partners, and obtain coherence of leadership
Symbolise and realise African ownership
provides leadership to obtain continent-wide consensus and momentum
Key mechanism for mutual accountability
raise issues with partners, and obtain coherence of leadership
Heads of State Forum (HSF)Heads of State Forum (HSF)
Establish mechanism for peer review
review of performance on governance and economic management
Address the issue of Africa’s diversity
face challenges of diverse performance and prospects
Establish mechanism for peer review
review of performance on governance and economic management
Address the issue of Africa’s diversity
face challenges of diverse performance and prospects
Commitments by International Partners
Operationalising the enhanced partnership requires commitments by partners to respect four guiding principles
The enhanced partnership recognises different role by diversified group of partners
Technical Underpinning
Technical underpinning is essential to implement MAP and the Compact
Technical Underpinning: Role of ECA
ECA undertook significant initiatives
• generates dialogue, data and analysis
• operates with three key African-owned initiatives: ADF, ‘Big Table’, PRSP Learning Group
• provides critical input ECA’s performance indicators
May we seize this moment May we seize this moment to move towards to move towards the Compact for the Compact for
African Recovery!African Recovery!