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AFRICA’S NEEDS AND THE EVOLVING ROLE OF DEVELOPMENT AID Creating an Enabling Environment for SSA to Realize its Potentials: Perspectives and Role of African Governments Presented by Toga Gayewea McIntosh,PhD at The Bretton Woods Committee Discussion Panel October 29, 2010 I.

 

Introduction

We are grateful for your invitation and for the opportunity to express our views on and make a modest contribution to the on-going debate surrounding development aid effectiveness. Any opportunity to make the case for Africa is always a welcome opportunity. We have been asked to place on the table issues associated with defining and executing the African agenda for creating an enabling environment within the region that would yield greater development results given its vast potentials. To create the relevant environment that would enable or lend appropriate support to achieving desired results with assistance from a second party such as aid providers; it is important that the key players have a convergence on (i) the nature and complexities of the short, medium and longer term challenges that are to be addressed; and (ii) a set of answers to a set of questions that have lingered on for a long time in the use of development aid to meet Africa’s development needs. I shall briefly touch on these two prerequisites as seen by an African development practitioner eyes and experience gained over the years. I shall conclude my brief remarks offering for discussion what I consider to be a suitable role of governments, aid donors and the private sector  players in the transformation of African economies.

 

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II.

 

Nature, Intensity and Complexities of the Challenge

Much has been written and said in recent years about the challenges faced by SSA in the wake of the on-going global recession and anticipated global slow recovery. Yes, aid packages would compress in volume; private sector investment; flows to Africa could gradually dry out; and national budgets would be filled with deficits. Let us for a moment put this aspect of the challenge aside. There are other major challenges faced by African Governments in dealing with the “Aid Architecture” well before the crisis that have constrained Africa’s ability to realize its potentials. Most of these challenges are still roaming in the air; and if not adequately addressed by both the governments and their development partners, the number of people graduating into poverty would continue to swell; and the amount of donor assistance remaining ineffective. Let me briefly highlight two from the growing list of challenges:

(i)

 

Identifying, Harmonizing and Sequencing Development Priorities

A major challenge is to minimize or eliminate conflicting economic, social and at times political  priorities between donors and national governments. What has been very difficult during negotiations is reaching an agreement on a set of variables in determining the context and areas of priorities, and what is not a priority in a country’s development agenda. Priorities set by Aid s donors in their respective countries may not necessarily be in harmony with those set in national framework documents or the ad hoc priorities that have emerged as a result of the need for a rapid response to a social or economic crisis. Such a case does not only result in long disbursement of funds; but could escalate the crisis. An associated challenge, particularly in post-conflict countries and countries that are at the lowest end of the development ladder, is prioritizing priorities. Every required intervention is a  priority that must be met in the short to medium run to keep the whole together. Working with aid donors in undertaking this tedious and at times frustrating task, and getting their respective

 

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capitals and institutions to understand this abnormal situation, have proven difficult in many instances.

(ii)

 

Balancing multi-lateral and bilateral aid flow to Africa

The good intention of many donor countries to deal directly with governments in the delivery of aid assistance is gaining momentum; and showing good signs for rapid respond and appropriate targeting. Equally, essential, is the growing appetite for multilateral assistance both on the part of governments and donor institutions. The challenge is bringing the two sources of funding together and striking the right balance. When one thinks of it, the sectors to be funded are first limited to not more than four in any given country; or you may find several donors within the same sector in an uncoordinated manner. International NGOs are notorious in this regard; and if the concerned government is not vigilant enough, substantial wastage could occur.

III.

 

Finding Appropriate Answers to Lingering Questions

Obviously, policy and decision makers are, from time to time, searching for answers to a host of questions when they are involved with designing and negotiating aid packages. The extent to which suitable and converging answers are found and internalized by both aid recipients and aid donors, would to al large extent determine the level of effectiveness of the package. Some of these questions relate to finding out and appreciating the type, scope and the location of abundance potentials in Africa that could and must be realized? There are untapped natural resources sitting to be explored and utilized to create and distribute wealth to the various corners of Africa. I am talking about those resource bases that are above the ground, beneath the ground, and those flowing down the slopes. The key of these is the human resource base, which if developed properly, has the ability to develop and manipulate the other resource bases to create growth, wealth and development.