Africa needs bold economic reforms to ensure sustainable development - AEC
BY EDMUND SMITH-ASANTE
Donald Kaberuka |
Participants
at the closing session of the seventh African Economic Conference (AEC), held in
Kigali, Rwanda on November 2, 2012, have urged African leaders to put in place
bold economic reforms, aimed at sustaining growth and boosting human
development.
The
participants agreed that good governance and fair competition will help Africa
meet its sustainable development agenda, while carefully calibrated government
support can help fulfill Africa’s economic potential, reducing political risks
and bolstering financial accountability to open new markets.
The
four-day conference highlighted the need for policy-makers to create
diversified economies capable of generating employment, implementing better
social policies and inclusive growth. Also, one of the running threads of the
conference was how to use natural resources to create economic benefits for
ordinary citizens.
Hosting the AEC for the first
time, Rwandan President Paul Kagame said that in this era of economic
uncertainty, the world has high expectations for the African continent, which has
become the world’s second-fastest growing region.
According to the African Economic
Outlook 2012, economic growth across the African continent is expected to
rebound from 3.4% in 2011 and accelerate to 4.5% in 2012 and 4.8% in 2013.
To Paul Kagame, “Some countries
have even done better than these statistics depict. And because some countries
from other continents show signs of economic stagnation, commentators have been
inclined to think that this is Africa’s time.”
However, current statistics show
the continent’s poverty rates have remained stubbornly high, while progress on
health, education and job creation have been too slow to accommodate its
fast-growing population.
These
challenges, it is believed, are likely to become more difficult to tackle in
the current global economic environment.
Touching on how to surmount the
challenges, Donald Kaberuka, President of the African Development Bank, said, “Rich
countries are very much concentrated on their own immediate problems to fix,”
adding, “As we can see from the trade and climate negotiations, there is
limited appetite for the multilateral solutions, so we need to trade our way
out of poverty and deal with the impact of climate change.”
For
his part, Mthuli
Ncube, Chief Economist and Vice President of the African Development Bank, said
that “Africa can have a brighter future, and has the potential to become the
next emerging market by the end of this decade if political, social protection,
quality education, private sector and regional integration are implemented.”
Ncube urged every one “to see
inclusive growth in action in Africa.” He also affirmed that the continent’s
long-term growth prospects are strong, propelled by both external trends in the
global economy and internal changes in the continent’s societies and economies.
He also said investment in
infrastructure will promote regional integration and trade, creating an
environment that is more conducive to economic growth, the development of
markets and paving the way for an acceleration in human development.
“Deliberate policy measures and
targeted investments are needed to make growth not just fast, but also
inclusive and sustainable,” said UNDP Administrator Helen Clark, who opened the
conference along with Kaberuka on October 30. She added that “the rising tide
is capable of lifting every boat.”
The
discussants said African countries can raise money by negotiating international
contracts from a position of strength, using proceeds from land and mineral
deals to invest in rural infrastructure, diversify the economy and boost human
capital.
“If politically the leadership is
right, there is no doubt that leadership will focus on inclusion in almost
everything it does,” said the former President of Nigeria, Olusegun Obasanjo.
The 2012 AEC meeting was also
marked by an award for the best paper of the conference submitted by an African
under the age of 40. Forty-three papers were shortlisted out of 500
submissions. Dick Nuwamanya Kamuganga’s paper, titled, “Does Intra-Africa
Regional Trade Cooperation Enhance Export Survival?” met the selection criteria
set out by the African Economic Research Consortium, in terms of methodology
and policy relevance.
Organised each year by the
Economic Commission for Africa (ECA), the African Development Bank (AfDB) and
the United Nations Development Programme (UNDP), the conference brought
together some 500 participants under the theme “Inclusive and Sustainable Development
in an Age of Economic Uncertainty”.
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