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Africa Progress Report 2010: From agenda to action
2010
Africa Progress Panel

Africa is now being described as a new economic frontier. Barely a week goes by without news of the discovery of more oil, gas, precious minerals or other resources. Deals are being signed by African countries with an ever-broader array of partners, including from China, the Far and Middle East, South Asia and Latin America.

Trade is growing, both within the continent and internationally, including with the global South. Turnover of African corporations and banks is increasing. Domestic revenues, foreign direct investment, remittances and official development assistance (ODA) have all climbed steadily over the last decade, although the upward trajectory dipped in the wake of the global financial and economic crisis. After a gloomy year, economic growth rates are predicted to climb again, and restore the continent’s place as one of the fastest-growing regions of the world.

All of this begs some obvious questions. Despite some extraordinary successes, why does progress on achievement of the Millennium Development Goals (MDGs) remain so slow, so uneven? Why do the absolute and relative numbers of people living in poverty remain so high? Why do so many people face food and nutrition insecurity, joblessness, with minimal access to basic services such as energy, clean water, healthcare and education? Why are so many women marginalised and disenfranchised? And why is inequality increasing?

At issue is not just the ability of African countries to attract and mobilize revenues, but their political determination and capacity to use what revenues they have to achieve results for people. Economic growth rates and increased trade are necessary but insufficient for genuine progress, which means sustained improvement in the quality of life of every African woman, child and man. However, growth can be exclusive, reinforcing or resulting in inequality and social tension; growth can fail to create opportunities or address the insecurity faced by families in rural areas and of people in search of work in the continent’s burgeoning cities. This kind of growth does not necessarily represent progress.

It cannot be said often enough that Africa is not homogenous; it is raucously diverse, a celebration of different cultures, traditions and landscapes. Some African countries are blessed with resource wealth; others less so or not at all. Landlocked or densely populated countries face circumstances very different from others. But they all share a common challenge: investment in their citizens’ productive capacity, and in public goods and services that will broaden the opportunities and benefits of growth for all.

The ingredients of success are not a mystery. Climate change is adding a new dimension, and urgency, to the challenge; sustainable development and job creation must be anchored in low-carbon growth, buttressed by attention to disaster-risk and vulnerability reduction. But it is not altering the fundamentals: the critical importance of political leadership to set and drive plans for equitable growth and poverty reduction; the importance of building the technical, management and institutional capacity to mobilize revenues and to implement plans; and the centrality of good governance, the rule of law and of systems of accountability to ensure that resources are subject to public scrutiny and to keep political and business leaders on their toes.

Over the last decade, our understanding of what makes development effective has increased. Good, even visionary agendas have been formulated in every field, including infrastructure, food and nutrition security, women’s empowerment, health systems, education and governance. We have a better appreciation of the centrality of domestic revenues, the importance of unleashing entrepreneurship and an enabling environment, of responsible investment, the need for concerted international action to address illicit financial flows and corruption, the value of public-private partnerships, and of the most strategic use of ODA to support national and regional development plans.

Lack of knowledge and shortage of plans are not the problem. Lack of funds per se may not be the problem either, given the continent’s vast natural and human resources and the ongoing, often illicit, outflow of wealth. Political will is the issue, both in Africa and internationally.

Ten years ago, the Organization of African Unity (OAU) got behind the vision of a group of influential African leaders to promote a poverty-busting development agenda; the African Peer Review Mechanism was equally innovative. Today, a number of leaders stand out as champions of development, but they are still a minority, their achievements overshadowed by stories of other leaders’ personal enrichment and authoritarian behaviour.

Internationally, there are understandable concerns that the consensus around development has been eroded by the global economic crisis. Everything must be done to keep hard-won commitments of the Millennium Declaration, the Monterrey Consensus, and the Gleneagles Declaration front and centre in international policy-making. One way of measuring this commitment is by whether ODA levels are being met. Many OECD and G8 countries are doing so; others are falling badly behind, raising doubts about their credibility at top decision making tables.

These shortfalls do not result from a decrease in human solidarity and sympathy between ordinary people around the world, which, I believe, is as solid as ever. Nor can it be ascribed to budgetary constraints alone, given the relatively modest sums involved. It comes from politicians’ failure to communicate the imperative of putting the needs of least developed and African countries at the heart of global institutions and policies. The arguments for doing so, whether relating to climate change, food and nutrition security, trade, intellectual property, fighting crime, or investment in health and education, are not just ethical or altruistic, but practical and in the self-interest of richer countries.

More can be done by African leaders, in government, business or civil society, to advocate for development policies and resources, including with politicians and tax-payers in richer countries, whether the big emerging economies or traditional donors. Their voice is vital to the case for maintaining promises relating to ODA, which, despite what its detractors say, remains pivotal as a source of investment in public goods and services, particularly for people in resource-poor and fragile states.

Africa’s growth needs to be measured not just in GDP figures but also by the degree to which it brings social benefits for all its people. Responsibility for driving equitable growth and for investing in achievement of the MDG targets rests firmly with Africa’s political leaders. Civil society can be an ally if given the space to ensure that revenues and growth are not abused or limited to elites but shared more broadly and invested in jobs and public goods. The approach and actions of the private sector and of Africa’s international partners, traditional and more recent, can also make a decisive difference to leaders’ success.

If this goes wrong, Africa may face the prospect of greater inequality, more conflict and a perpetuation of chronic poverty and marginalization. If this goes right, the future is bright. The key is shared responsibility, and mutual accountability, between African leaders and their partners. Not just Africa’s people, but those of the whole world stand to benefit.

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