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Africa: ECA Policy Lecture, 2
Africa: ECA Policy Lecture, 2
Date distributed (ymd); 001014
Document reposted by APIC
+++++++++++++++++++++Document Profile+++++++++++++++++++++
Region: Continent-Wide
Issue Areas: +political/rights+ +economy/development+
+gender/women+
Summary Contents:
This posting and the previous one contain excerpts from the
concluding section of a recent lecture by K. Y. Amoako, Executive
Secretary of the Economic Commission for Africa (ECA). The lecture,
gives an overview of ECA perspectives on current economic
challenges, with special reference to Ghana. For the full text of
the speech, please contact ecainfo@uneca.org.
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Economic Development and Reform Issues in Africa: Lessons for Ghana
By K. Y. Amoako
Executive Secretary
Economic Commission for Africa
University of Ghana, Legon
September 21, 2000
(continued from part 1)
The informal sector
Another critical area for Ghana and Africa is how we plan to
harness the energies of the so-called informal sector. Here in
Accra, you can buy anything from Wrigleys chewing gum to dog
collars to fly swats at the traffic lights. But is this really the
most productive use of these young people's time? Sixty per cent of
our people are engaged in fringe activities from which, because of
a lack of support and training, they eke out a living. How can we
improve their productivity? How can we boost their enterprises? How
can we introduce them to new knowledge and technology, which in
revolutionizing their lives, would lift the rest of Africa?
Science and technology
This links to the critical need not just to develop science and
technology curriculums in our schools, but to develop S and T
cultures in our societies. A tiny 0.4 percent of government
resources are devoted to research and development in Africa - most
of this to agriculture. This is far lower than the investments made
by the Newly Industrialized Countries. Comparative experience tells
us that, in a world increasingly driven by knowledge rather than
physical resources, there is no way we can hope to become globally
competitive with such low investments in technological advancement.
Harking back to Nkrumah, we will all recall how much emphasis he
placed on S and T, including the establishment of institutions like
GSTS in Takoradi and UST in Kumasi. In future, when upstarts like
the young Amoako insist on going to Legon to study economics rather
than to Kumasi to study science and technology, maybe their parents
need to be tougher on them!
Information technology, in particular, offers a means for African
countries to leapfrog into the 21st century. At ECA, which houses
the African Information Society Initiative, we have identified
several reasons why this is so. Apart from the intrinsic importance
of information and knowledge to any development effort, IT reduces
the costs of doing business, cuts across the huge geographical
barriers that have been such impediments to development in Africa,
offers numerous economic opportunities in and of themselves for
small-scale entrepreneurs, and opens huge possibilities in the
social sectors such as distance education and telemedicine.
In this area of information technology, ECA is carrying out
activities in partnership with several organizations including
UNESCO, the World Bank and the Carnegie Corporation to develop
training centres of excellence at national and subregional levels,
using existing infrastructure, largely at universities and schools
of technology and communication.
Having learned more from the Vice Chancellor today about the
considerable progress in leveraging information technology for
education here at Legon, I would like to offer all the support of
the Economic Commission for Africa in ensuring that within the next
three years, Legon becomes a model for African universities.
Let me also mention that driving around Accra, I have been
delighted to see the many cybercaf‚s and the vibrant IT culture
that is developing, including talk of E-Mail addresses at post
offices - an area where I believe Ghana is taking a lead in the
rest of Africa. I am also informed that "see you at dot com" has
become another way of saying good-bye among the youth and that the
Internet is becoming a popular venue for courtship. Don't you wish
that you and I could turn back the hands of time!
Gender equality
Back to my lecture, I would be remiss if, in this discussion on
human capital, I did not make specific mention of the imperative of
gender equality if Africa, and Ghana, are to achieve their
development objectives. In simple terms, we cannot hope to progress
when more than half of Africa's people are barred from realizing
their full human potential. ...
Ghanaian women have traditionally occupied key positions alongside
men in the production of goods and services - yet their
contributions to the economy are largely absent from national
accounts. There is something deeply wrong when 43 years after
independence, less than 10 percent of our parliamentarians are
women. A recent study on Violence Against Women and Children in
Ghana, carried out by the National Council on Women and Development
reveals the extent to which the basic human rights of women are
daily violated.
Again, we need to ask ourselves tough questions. Why is it that,
despite the rhetoric, African countries are not doing anywhere near
enough to advance the status of women? How can the energies of
civil society - that have arguably been far more visible than those
of government in this area - be better harnessed? How can we move
beyond conferencing and advocacy to implementation and monitoring?
Why are women still only talking to women at gender conferences?
What can be done concretely to bring African men on board?
Health
Turning to health, despite gains made in life expectancy and infant
mortality in Ghana, the weak state of the health sector is
underscored by the fact that 60-70 percent of the country's health
problems are communicable and preventable diseases that also
include epidemics. The most frightening of these is the HIV/AIDS
epidemic.
It is estimated that in no fewer than 13 African countries, between
one-tenth and one-quarter of the entire adult population is living
with HIV or AIDS. Infection rates this high are not seen anywhere
else in the world.
As Callisto Madavo, the World Bank Vice President for Africa told
a recent conference on HIV/ AIDS in Lusaka, "HIV is now the single
greatest threat to future economic development in Africa." AIDS is
taking away Africa's present and taking away its future.
Consider that, as a result of HIV/AIDS:
- Economic output in Kenya will fall by 14.5 per cent in the
1995-2005 period.
- 11 per cent of all children in Uganda and 9 per cent in Zambia
have been orphaned as of today.
- AIDS treatment costs may account for more than one-third of total
government health spending in Ethiopia, more than half in Kenya and
almost two-thirds in Zimbabwe by the year 2005.
- Almost 15,000 teachers by the year 2010, and 27,000 teachers by
the year 2020 will die in Tanzania.
With an infection rate of just over 4 percent (compared with
Botswana, which, with a rate of 36 percent is the highest in Africa
and in the world) Ghana has been spared the worst of this scourge.
But I hesitate to even make this comparison because there is no
room for complacency!
Indeed, it has been said that 4 percent is the "turning point"
figure for HIV AIDS - where either a country is going to roll back
the tide or watch it cascade. In December this year, ECA will
devote its annual African Development Forum to the theme: "AIDS:
Africa's Greatest Leadership Challenge". If there is one plea that
I will unapologetically take advantage of this forum to make it is
that Ghana rise to this challenge. Any more time wasted could be
the difference between victory and defeat. Defeat in this case
could wipe out the flicker of hope that we have for achieving
Vision 2020.
Governance
This leads me to my final point - the common thread that runs
through all the themes I have mentioned so far; the absolute
pre-requisite for Ghana and Africa claiming the 21st century: the
need for strong and capable states. The list I have given you is
daunting. It calls for stronger and better, not weaker and
ineffective states. The hallmarks of a capable state are strong
institutions of governance; a sharp focus on the needs of the poor;
powerful watchdogs; the rule of law; intolerance of corruption;
transparency and accountability in the management of public
affairs; respect for human rights; participation by all citizens in
the decisions that affect their lives; as well as the creation of
an enabling environment for the private sector and civil society.
Capable states nurture all of these. Confident governments welcome
the views of academics, civil society, the media, even of
opposition parties.
Ghana is making important progress in these areas. The cornerstone
for these is the 1992 constitution that provides for a multiparty,
liberal, democratic order that is underpinned by the separation of
executive, legislative and administrative powers, and is buttressed
by the Commission on Human Rights and Administrative Justice. The
form of political authority changed - let us hope decisively and
irrevocably - from military to multiparty in 1992. Two elections
have taken place and a third is about to be held. In the short
term, there may be contradictions between the imperatives of
political and economic reform. But one thing we know for certain is
that, in the long-term, plurality is the answer to political
stability without which there cannot be economic development.
The bodies in our society charged with watchdog functions are
increasing in number and maturity. There has been a significant
proliferation of mass media organizations in both print and
electronic media and a variety of civil society organizations have
sprung up.
Corruption is being discussed more openly - but a great deal
remains to be done on this matter both in Ghana and the rest of
Africa. Here, I would draw your attention to an in depth study that
has just been conducted in Kenya entitled "The link between
Corruption and Poverty: lessons from Kenya Case Studies." The study
points out that corruption taxes the poor, increases transaction
costs and reduces the level of economic activity. Similarly, a
study in Tanzania shows that corruption increases the cost of
living by 25 percent.
Corruption is one of the cancers that have preyed on Africa's
misfortunes, driving us even further into economic mismanagement
and despair. The 2000 Corruption Perception Index, just released by
Transparency International, shows five African countries to be
among the top ten most corrupt countries in the world with Nigeria
reclaiming the number one position from Cameroon. Ridding ourselves
of this cancer must be a key priority in the 21st Century. As we
would say here at Legon, integri procedamus - let integrity
proceed!
Public perceptions are a key barometer of governance. The Ghana
Institute of Economic Affairs has conducted two revealing studies
- in 1995 and in 1999. There are several positive signals: growing
awareness of the constitution; recognition of the system of
government; of limitations to the president's power; of the
military ceasing to be a source of fear; of freedom of expression
taking root.
But there are also worrying signs - such as the declining
perception of political representation, the high perception that
political parties do not have an equal playing field and perhaps
most worrying of all, the fact that two thirds of Ghanaians feel
that their quality of life has not improved. If we revert to our
earlier figures, this is hardly surprising. For although the trend
is upwards, per capita income is lower than at independence and at
$450 per annum it is pitifully low.
This brings us back to the crossroads - to the choices for the
future.
VI. CAN WE MAKE IT?
In his book, "Which World? Scenarios for the 21st Century", Allen
Hammond paints three scenarios for Africa based on the 2050
workshop held in Harare in 1994. These are:
- SCENARIO ONE: High growth, led by Southern Africa with South
Africa as the main engine of growth and a strong Southern African
common market, but with Nigeria awakening and pulling its weight in
West Africa, and a strong African common market emerging.
- SCENARIO TWO: An escalation in ethnic conflict and sporadic
government collapse discouraging private investment, beginning in
west Africa, spreading to central and east Africa.
- SCENARIO THREE: Episodic crises continue, debts are cancelled but
new loans and private investment are scarce and export markets
continue to shrink. However, a new generation of pragmatic leaders
emerges. There is far greater self-scrutiny and consensus for
change among the peoples of Africa. Economic reforms are pursued
and deepened with governments making education and other basic
social services a high priority.
Call me na‹ve, but looking at these three scenarios, I cannot help
but feel that although the third scenario is a safer bet, the first
of these scenarios is plausible, especially as we now know for a
fact that Nigeria is awakening. This must be a source of hope for
West Africa, as South Africa's emergence proved to be for Southern
Africa.
This material is being reposted for wider distribution by the
Africa Policy Information Center (APIC). APIC provides
accessible information and analysis in order to promote U.S.
and international policies toward Africa that advance economic,
political and social justice and the full spectrum of human rights.
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