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Africa: G8 Goals and Promises
AfricaFocus Bulletin
Jun 24, 2010 (100624)
(Reposted from sources cited below)
Editor's Note
The ritual is familiar, as leaders of the G8 countries gather for
their annual meeting, this year in Canada, and followed immediately
by the parallel meeting of the expanded G20 countries. Although
they take backseat to major power debate on their own responses to
global economic crisis, previous commitments to the development of
Africa are to be reviewed and, in part, renewed. But even the
upbeat spin from the G8's own evaluation cannot conceal the fact
that fulfillment of commitments has at best been "a very mixed
picture."
This AfricaFocus Bulletin contains several short documents with
different views of the status of international commitment to
Africa's development: (1) a report from IRIN on the G8's
accountability report; (2) a press release from Stephen Lewis, with
a critique of the G8's report and references to other more critical
reports; (3) a press release from the Africa Progress Panel citing
a "a truly mixed picture" combining "remarkable progress" as well
as "chronic problems," and (4) a press release from McKinsey Global
Institute on their new report "Lions on the Move: The progress and
potential of African economies."
The G8's own Mushoka Accountability Report is available on the G8
summit site (http://g8.gc.ca).
For additional reports on G8 promises and Millennium Development
Goals, see
DATA Report 2010
http://one.org/c/international/hottopic/3331/
MDG Report 2010
http://www.un.org/millenniumgoals/
Another AfricaFocus Bulletin sent out today, available at
http://www.africafocus.org/docs10/unct1006.php) has excerpts from
the new UNDP report on South-South collaboration, stressing the
need for action to ensure that African relations with new emerging
powers do not duplicate the patterns of primary commodity export
established by existing ties with rich countries of Europe and
North America.
For previous AfricaFocus Bulletins on economic issues, visit
http://www.africafocus.org/econexp.php
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G8 falls short on development aid
http://www.irinnews.org
Dakar, 22 June 2010 (IRIN) - Leaders of G8 countries will meet in
Canada on 25 June, with international development aid high on the
agenda. Ahead of the summit, the G8 has issued the Muskoka
Accountability Report outlining commitments met and not met, with
mixed results.
At Gleneagles in 2005, donor members of the Organization for
Economic Cooperation and Development (OECD) pledged to commit US$50
billion to overseas development aid by 2009. Thus far, they are $11
billion short.
Some donors are setting the pace: Canada and Germany pledged to
double overseas development aid (ODA) between 2004 and 2010 and by
2009 had upped assistance by 54 and 59 percent respectively. But
increases from the US, UK and France lag behind at 45 percent,
Italy at 34 percent, and Japan just 6 percent.
Most donors fell short of targets to direct 0.51 percent of gross
national income to overseas aid by 2010. The UK, which has steadily
increased the proportion of its budget spent on aid over recent
years, did achieve it, channelling 0.56 percent, but it is
estimated that in 2010 the US will reach only O.2 percent; Italy
0.16 percent; Canada 0.3 percent; Germany 0.35 percent and France
0.47 percent.
While G8 donors promised to target their aid towards the most
vulnerable, just 41 and 43 percent of Germany and France's aid
respectively goes to low-income countries versus 69 percent of
Canada's.
OECD donors promised to reach a $25 billion aid target for Africa
by 2010, but have achieved less than half that, according to NGO
Oxfam.
"Despite their best efforts to put a positive gloss on their
progress, the G8 report shows clearly that the promise made in
Gleneagles in 2005 to increase aid will be broken," said Oxfam
spokesman Mark Fried. "The draft G8 communiqu‚ conveniently ignores
the commitment to increase aid by $50 billion, when it should have
an emergency plan to fill the $20 billion shortfall over the next
two years. These are not just numbers. They represent vital
medicines, kids in school, help for women living in poverty and
food for the hungry."
Canadian and African Activists Call on G8/G20 Leaders to Take
Action on Aids Crisis at Home and Abroad
Statement by Stephen Lewis, Co-Director, AIDS-Free World
released at a press conference in Toronto, June 22, 2010,
http://www.aids-freeworld.org/content/view/387/132/
At the Gleneagles G8 Summit in 2005, the G8 countries committed
themselves to providing Africa with $25 billion additional dollars
by 2010.
Three reports have emerged in the last short time assessing the
actual achievements.
According to the Muskoka Accountability report, released this week
by the G8 itself, the commitment has fallen short by at least $7
billion. The report is so self-serving and opaque that
it's frankly impossible to divine the exact figure, but even taking
it at its best, it means that the G8 will fall short by almost 30%.
According to the DATA report 2010, put out by the ONE campaign,
co-founded by Bono, the G8 has fallen short by at least $8.9
billion (using a slightly different form of calculation). That
represents a shortfall of almost 40%. Bono and company do their
best to flatter the contributions of the G8, but even they are
forced to say that the increases from 2005 to 2010 "have fallen far
short of what was promised."
Finally, according to the "Africa Progress Report 2010", published
by a unique panel of internationalists, chaired by Kofi Annan, when
the $25 billion commitment comes due at the end
of this year, the G8 will have fallen short by at least $9.8
billion. This report, by far the most thoroughly prepared of the
three, calls it a "staggering shortfall."
This background is merely to underscore the betrayal of Africa to
which the G8 is congenitally addicted.
It should come as no surprise then to learn that now, the G8 is
explicitly cutting back on funding for HIV/AIDS.
I see no point in beating around the bush. In the United States,
the President's Emergency Plan For AIDS Relief (PEPFAR) is being
flat-lined, for at least the next two years. That this should
happen under President Obama seems inconceivable. It not only
negates the pledge that the President (and Hillary Clinton) made
during the campaign; it even fails to take advantage of the
willingness of Congress to support extra funding.
Worse, the rationale hides behind intellectual sophistry. The
argument is that AIDS has had too much money, and additional funds
should go to other health imperatives like maternal and child
health. No one in his or her right mind would argue with broader
financial support for all aspects of global health. But to diminish
the dollars that might be available for AIDS, rather than enlarging
the financial pie overall is so wrong-headed as to defy rational
analysis.
And let no one doubt the consequences. Right at the moment when we
know how to treat large numbers; right at the moment when we have
five million people in treatment; right at the moment when another
nine million require treatment now; right at the moment when hope
is finally alive, PEPFAR is flat-lining the budget. M‚decins Sans
FrontiŠres (MSF) recently released a report documenting cut-backs,
portending grievous consequences, in Uganda, Malawi, Zambia and
Mozambique. There are AIDS projects, run by other NGOs, where new
patients cannot be enrolled unless someone dies: indeed, the
cut-backs have become so disastrous in
places that HIV-positive pregnant women are being turned away, as
are people so sick they're coming to the hospital in wheelbarrows.
Surely we've had enough of the ravenous carnage of AIDS. Let's be
clear: we're threatened with another outbreak of death akin to the
ghastly pattern of the early years of this decade. It cannot
be allowed to happen. Someone has to get to the President and tell
him that his advisors, decent and honourable though they may be,
are taking Africa down a deadly path.
But that's just the half of it. The Global Fund to Fight AIDS,
Tuberculosis and Malaria has a replenishment conference this fall,
seeking $20 billion over three years. The Global Fund has
performed magnificently in a number of areas, and yet there's every
prospect that they'll fall up to $7 billion short.
Again the spectre of death will stalk the land.
If the G8 and G20 are to do more than dissemble, they have to match
their actions to their commitments. This time, they must put up the
money that's required for Africa along with a timetable for
delivery, and then they must keep their promises by sticking to
that timetable. They have to understand that maternal and child
health are inextricably tied up with HIV/AIDS. If you don't address
the pandemic, you'll never decisively reduce maternal and child
mortality in Africa. For the proof, simply note that maternal
deaths in sub-Saharan Africa increased by
61,000 last year, almost all of it due to AIDS. HIV/AIDS is the
ultimate nemesis.
And for those weeping willows who use the financial crisis as the
mother of all excuses, just pause a moment to think of corporate
bailouts and corporate bonuses. Something is completely out of
whack.
Africa Progress Report calls on African leaders to turn "scramble
for Africa" into real results for the continent; progress being
made despite not because of governance
Panel wants action from policymakers to translate continent's
"immense resources" into concrete benefits for its people
http://www.africaprogresspanel.org/report/
Johannesburg - 25 May 2010: The Africa Progress Report launched
today by the Africa Progress Panel (APP) states that African
leaders need to boost "political determination and capacity to use
what revenues they have to achieve results for people".
Kofi Annan, Chair of the Panel and fellow Panel members Linah
Mohohlo, Peter Eigen and Olusegun Obasanjo presented the Africa
Progress Report on Africa Day - five years since the establishment
of the Panel and 10 years since world leaders signed up to the
Millennium Development Goals (MDGs). The report takes stock of
Africa's progress since 2005 and assesses future opportunities for
the continent.
"This landmark report argues that Africa's future is in its own
hands, but that success in managing its own affairs depends on
supportive global policies and agreements," Annan said. "There is
no lack of resources, no deficiency of knowledge and no shortage of
plans. Africa's progress rests above all else on the mobilisation
of political will, both on the continent and internationally."
The Report, focusing on Africa's emergence as a "new economic
frontier", notes that economic engagement with the Global South -
China, the Far and Middle East, South Asia and Latin America - "is
already having a substantial development impact on Africa".
However, the report asserts that "Africans beyond elite circles are
not benefiting sufficiently" while at the same time "there is great
scope to improve Africa's partnerships with the Global South". The
report also notes that "African leaders... need to realize that the
benefits of increasing economic ties are not automatic, but only
accrue to those that take adequate and pro-active steps to exploit
them through targeted policies."
In particular, the report calls for:
- Transparency throughout the entire resource system, from how
contracts are awarded and monitored, to how taxes and royalties are
collected, to how investment choices are made and executed.
- Policies that ensure that the revenues from the continent's
natural wealth reach everyone. This requires major policy shifts
and significant investments of resources in institutions, human
capacities, women, health, education and infrastructure.
Stating that "Africa's development and the welfare of its people
depend above all upon the political commitment and capacity of its
leaders", the Panel also urges African policymakers to:
1)Empower women by enforcing existing conventions, laws and
policies and link their efforts with effective implementation
strategies including reliable reporting mechanisms
2)Climate proof development, not least through integrating
adaptation to climate change into growth and development
strategies, accelerating regional integration, harnessing the
potential of information technology and anticipating demographic
shifts
The Panel also identifies three priority areas for action for
Africa's partners, recording that Africa's leaders "need an
international environment that is fair and supportive of their
efforts." The report calls for international policymakers to:
1)Provide a level playing field, addressing the fact that "the
continent is starkly underrepresented in virtually all
international fora" and that "bloated subsidy regimes and unfair
trade rules" leave African countries "heavily disadvantaged."
2)Increase policy coherence for development, "recognising the
overall impact that countries' domestic and international policy
mix has on the continent and seek to minimize their negative
effects."
3)Fulfil promises on resources and assistance, and "Africa's
partners to recommit to the consensus on the continent's
development and fulfil the many promises on financial support and
assistance they have made over the last decade".
Focusing on the approximately $100 billion of financial assistance
in annual expenditure from Africa's partners required to achieve
the Millennium Development Goals in the presence of anticipated
climate change, the report records that "much of this could
actually be met if partners were to fulfil the pledges they made
over the last couple of years and realize the financing ambitions
outlined in the Copenhagen Accord." It notes that "the mechanisms
to collect, administer, and disburse these funds are already in
place."
Looking back on Africa's progress over the last five years, the
report describes it as "a truly mixed picture." It states that
"remarkable progress has been achieved in many fields, but... a
number of set-backs, chronic problems and the effects of the global
economic crisis and climate change combine to threaten the gains
made since 2005."
The Africa Progress Report highlights that the central challenge
for Africa's leaders is to inspire processes and build practical
capacities, both nationally and regionally, to ensure that assets
are translated into social benefits and that their people are able
to access opportunities that can transform their lives, countries,
and continent.
About the Africa Progress Panel:
The Africa Progress Panel brings together a unique group of leaders
under the chairmanship of Kofi Annan. The Panel monitors and
promotes mutual accountability and shared responsibility for
progress in Africa. Its three focus areas are economic and
political governance; finance for sustainable development,
including ODA; and MDG achievement - notably in light of climate
change. The work of the Panel aims to track progress and draw
attention to critical issues and opportunities for progress in
Africa.
The Africa Progress Panel is comprised of:
*Kofi Annan (chair of the Africa Progress Panel, former
Secretary-General of the United Nations and Nobel Laureate)
*Tony Blair (founder, Africa Governance Initiative and former Prime
Minister of the United Kingdom of Great Britain and Northern
Ireland)
*Michel Camdessus (former Managing Director of the International
Monetary Fund)
* Peter Eigen (founder and Chair of the Advisory Council,
Transparency International and Chairman of the Extractive
Industries Transparency Initiative)
* Bob Geldof (musician, businessman, founder and Chair of Band Aid,
Live Aid and Live8, Co-founder of DATA and ONE)
* Graça Machel (President of the Foundation for Community
Development and founder of New Faces New Voices)
*Linah Kelebogile Mohohlo (Governor, Bank of Botswana)
* Olusegun Obasanjo (Envoy of the Secretary-General on the Great
Lakes region and former President of Nigeria)
* Robert Rubin (Co-Chairman of the Board, Council on Foreign
Relations and former Secretary of the United States Treasury)
*Tidjane Thiam (Chief Executive Officer, Prudential Plc.)
* Muhammad Yunus (economist, founder of Grameen Bank and Nobel
Laureate)
Contact
For international media inquiries please contact:
Hannah McCullagh
Hannah.McCullagh@portland-communications.com
Tel: + 44 (0) 20 7842 0147
Mob: + 44 (0) 794 468 9158
For media based in South Africa, please contact:
Gennaro Pisapia
gennaro.pisapia@cape.magna-carta.co.za
Tel: + 27 (0) 21 417 5724
Mob: + 27 (0) 72 434 8515
Lions on the move: The progress and potential of African economies
[Report is available for viewing at http://www.mckinsey.com /
direct URL: http://tinyurl.com/37hfsew]
- Africa's collective GDP, at $1.6 trillion in 2008, is now roughly
equal to Brazil's or Russia's. While Africa's increased economic
momentum is widely recognized, less known are its sources and
likely staying power. Among the key findings:
- Africa's growth acceleration was widespread, with 27 of its 30
largest economies expanding more rapidly after 2000. All sectors
contributed, including resources, finance, retail, agriculture,
transportation and telecommunications. Natural resources directly
accounted for just 24 percent of the continent's GDP growth from
2000 through 2008. Key to Africa's growth surge were improved
political and macroeconomic stability and microeconomic reforms.
- Future economic growth will be supported by Africa's increasing
ties to the global economy. Rising demand for commodities is
driving buyers around the world to pay dearly for Africa's natural
riches and to forge new types of partnerships with producers. And
Africa is gaining greater access to international capital; total
foreign capital flows into Africa rose from $15 billion in 2000 to
a peak of $87 billion in 2007.
- Africa's economic growth is creating substantial new business
opportunities that are often overlooked by global companies RMGI
projects that at least four groups of industries-consumer-facing
industries, agriculture, resources, and infrastructure-together
could generate as much as $2.6 trillion in revenue annually by
2020, or $1 trillion more than today.
- Today the rate of return on foreign investment in Africa is
higher than in any other developing region. Early entry into
African economies provides opportunities to create markets,
establish brands, shape industry structure, influence customer
preferences, and establish long-term re*ationships. Business can
help build the Africa of the future.
- The rise of the African urban consumer also will fuel long-term
growth. Today, 40 percent of Africans live in urban areas, a
portion close to China's and continuing to expand. The number of
households with discretionary income is projected to rise by 50
percent over the next 10 years, reaching 128 million. By 2030, the
continent's top 18 cities could have a combined spending power of
$1.3 trillion.
To understand the growth opportunities and challenges of individual
economies, MGI developed a framework that groups them in four broad
clusters: diversified economies, oil exporters, transition
economies, and pre-transition economies. Though imperfect, this
framework can guide business leaders and investors developing
strategies for the continent and policy makers working to sustain
growth.
AfricaFocus Bulletin is an independent electronic publication
providing reposted commentary and analysis on African issues, with
a particular focus on U.S. and international policies. AfricaFocus
Bulletin is edited by William Minter.
AfricaFocus Bulletin can be reached at africafocus@igc.org. Please
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or to suggest material for inclusion. For more information about
reposted material, please contact directly the original source
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