THE NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT (NEPAD)

OCTOBER 2001

CONTENTS

I. INTRODUCTION

II. AFRICA IN TODAY'S WORLD: BETWEEN POVERTY AND PROSPERITY

III. THE NEW POLITICAL WILL OF AFRICAN LEADERS

IV. APPEAL TO THE PEOPLES OF AFRICA

V. PROGRAMME OF ACTION: THE STRATEGY FOR ACHIEVING SUSTAINABLE DEVELOPMENT IN THE 21ST CENTURY

A. CONDITIONS FOR SUSTAINABLE DEVELOPMENT

  1. Peace and Security Initiative
  2. Democracy and Political Governance Initiative
  1. All Infrastructure Sectors
  2. Bridging the Digital Divide: Investing in Information and Communication Technologies
  3. Energy
  4. Transport
  5. Water and Sanitation
  1. Poverty Reduction
  2. Bridging the Education Gap
  3. Reversing the Brain Drain
  4. Health
  1. Increasing Domestic Resource Mobilisation
  2. Debt Relief
  3. ODA Reforms
  4. The Private Capital Flows
  1. Diversification of Production
  2. Mining
  3. Manufacturing
  4. Tourism
  5. Services
  6. Promoting the Private Sector
  7. Promoting African Exports
  8. Removal of Non-tariff Barriers

VI. A NEW GLOBAL PARTNERSHIP

VII. IMPLEMENTATION OF THE NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT

  1. Agriculture
  2. Promotion of the Private Sector
  3. Infrastructure and Regional Integration

VIII. CONCLUSION

 

I. INTRODUCTION

1. This New Partnership for Africa's Development is a pledge by African leaders, based on a common vision and a firm and shared conviction, that they have a pressing duty to eradicate poverty and to place their countries, both individually and collectively, on a path of sustainable growth and development, and at the same time to participate actively in the world economy and body politic. The Programme is anchored on the determination of Africans to extricate themselves and the continent from the malaise of underdevelopment and exclusion in a globalising world.

2. The poverty and backwardness of Africa stand in stark contrast to the prosperity of the developed world. The continued marginalisation of Africa from the globalisation process and the social exclusion of the vast majority of its peoples constitute a serious threat to global stability.

3. Historically accession to the institutions of the international community, the credit and aid binomial has underlined the logic of African development. Credit has led to the debt deadlock, which, from instalments to rescheduling, still exists and hinders the growth of African countries. The limits of this option have been reached. Concerning the other element of the binomial - aid - we can also note the reduction of private aid and the upper limit of public aid, which is below the target set in the 1970s.

4. In Africa, 340 million people, or half the population, live on less than US $1 per day. The mortality rate of children under 5 years of age is 140 per 1000, and life expectancy at birth is only 54 years. Only 58 per cent of the population have access to safe water. The rate of illiteracy for people over 15 is 41 per cent. There are only 18 mainline telephones per 1000 people in Africa, compared with 146 for the world as a whole and 567 for high-income countries.

5. The New Partnership for Africa's Development calls for the reversal of this abnormal situation by changing the relationship that underpins it. Africans are appealing neither for the further entrenchment of dependency through aid, nor for marginal concessions.

6. We are convinced that an historic opportunity presents itself to end the scourge of underdevelopment that afflicts Africa. The resources, including capital, technology and human skills, that are required to launch a global war on poverty and underdevelopment exist in abundance, and are within our reach. What is required to mobilise these resources and to use them properly, is bold and imaginative leadership that is genuinely committed to a sustained human development effort and poverty eradication, as well as a new global partnership based on shared responsibility and mutual interest.

7. Across the continent, Africans declare that we will no longer allow ourselves to be conditioned by circumstance. We will determine our own destiny and call on the rest of the world to complement our efforts. There are already signs of progress and hope. Democratic regimes that are committed to the protection of human rights, people-centred development and market-oriented economies are on the increase. African peoples have begun to demonstrate their refusal to accept poor economic and political leadership. These developments are, however, uneven and inadequate and need to be further expedited.

8. The New Partnership for Africa's Development is about consolidating and accelerating these gains. It is a call for a new relationship of partnership between Africa and the international community, especially the highly industrialised countries, to overcome the development chasm that has widened over centuries of unequal relations.

II. AFRICA IN TODAY'S WORLD: BETWEEN POVERTY AND PROSPERITY

8. Africa's place in the global community is defined by the fact that the continent is an indispensable resource base that has served all humanity for so many centuries.

10. These resources can be broken down into the following components:

11. The first of these, Component I, is the one with which the world is most familiar. The second, Component II, has only come to the fore recently, as humanity came to understand the critical importance of the issue of the environment. The third, Component III, is also now coming into its own, emerging as a matter of concern not only to a narrow field of science or of interest only to museums and their curators. The fourth of these, Component IV, represents the creativity of African people, which in many important ways remains under-exploited and under-developed.

12. Africa has a very important role to play with regard to the critical issue of the protection of the environment. African resources include rain forests, the virtually carbon dioxide-free atmosphere above the continent and the minimal presence of toxic effluents in the rivers and soils that interact with the Atlantic and Indian Oceans and the Mediterranean and Red Seas. The New Partnership for Africa's Development will contain a strategy for nurturing these resources and using them for the development of the African continent, while at the same time preserving them for all humanity.

13. It is obvious that, unless the communities in the vicinity of the tropical forests are given alternative means of earning a living, they will co-operate in the destruction of the forests. As the preservation of these environmental assets is in the interests of humanity, it is imperative that Africa be placed on a development path that does not put them in danger.

14. Modern science recognises Africa as the cradle of humankind. As part of the process of reconstructing the identity and self-confidence of the peoples of Africa, it is necessary that this contribution to human existence be understood and valued by Africans themselves. Africa's status as the birthplace of humanity should be cherished by the whole world as the origin of all its peoples. Accordingly, the New Partnership for Africa's Development must preserve this common heritage and use it to build a universal understanding of the historic need to end the underdevelopment and marginalisation of the continent.

15. Africa also has a major role to play in maintaining the strong link between human beings and the natural world. Technological developments tend to emphasise the role of human beings as a factor of production, competing for their place in the production process with their contemporary or future tools. The open uninhabited spaces, the flora and fauna, and the diverse animal species that are unique to Africa offer an opportunity for humanity to maintain its link with nature.

16. Africa has already made a significant contribution to world culture through literature, music, visual arts and other cultural forms, but her real potential remains untapped because of her limited integration into the global economy. The New Partnership for Africa's Development will enable Africa to increase her contribution to science, culture and technology.

17. In this new millennium, when humanity is searching for a new way to build a better world, it is critical that we bring to bear the combination of these attributes and the forces of human will to place the continent on a pedestal of equal partnership in advancing human civilisation.

18. The impoverishment of the African continent was accentuated primarily by the legacy of colonialism, the Cold War, the workings of the international economic system and the inadequacies of and shortcomings in the policies pursued by many countries in the post-independence era.

19. For centuries, Africa has been integrated into the world economy mainly as a supplier of cheap labour and raw materials. Of necessity, this has meant the draining of Africa's resources rather than their use for the continent's development. The drive in that period to use the minerals and raw materials to develop manufacturing industries and a highly skilled labour force to sustain growth and development was lost. Thus, Africa remains the poorest continent despite being one of the most richly endowed regions of the world.

20. In other countries and on other continents, the reverse was the case. There was an infusion of wealth in the form of investments, which created larger volumes of wealth through the export of value-added products. It is time that African resources are harnessed to create wealth for the well-being of her peoples.

21. Colonialism subverted hitherto traditional structures, institutions and values or made them subservient to the economic and political needs of the imperial powers. It also retarded the development of an entrepreneurial class, as well as a middle class with skills and managerial capacity.

22. At independence, virtually all the new states were characterised by a shortage of skilled professionals and a weak capitalist class, resulting in a weakening of the accumulation process. Post-colonial Africa inherited weak states and dysfunctional economies that were further aggravated by poor leadership, corruption and bad governance in many countries. These two factors, together with the divisions caused by the Cold War, hampered the development of accountable governments across the continent.

23. Many African governments did not empower their peoples to embark on development initiatives to realise their creative potential. Today, the weak state remains a major constraint to sustainable development in a number of countries. Indeed, one of Africa's major challenges is to strengthen the capacity to govern and to develop long-term policies. At the same time, there is also the urgent need to implement far-reaching reforms and programmes in many African states.

24. The structural adjustment programmes of the 1980s provided only a partial solution. They promoted reforms that tended to remove serious price distortions, but gave inadequate attention to the provision of social services. As a consequence, only a few countries managed to achieve sustainable higher growth under these programmes.

25. Indeed, Africa's experience shows that the rate of accumulation in the post-colonial period has not been sufficient to rebuild societies in the wake of colonial underdevelopment, or to sustain improvement in the standard of living. This has had deleterious consequences on the political process and led to sustained patronage and corruption.

26. The net effect of these processes has been the entrenchment of a vicious cycle, in which economic decline, reduced capacity and poor governance reinforce each other, thus confirming Africa's peripheral and diminishing role in the world economy. Thus, over the centuries, Africa has come become the marginalised continent.

27. The New Partnership for Africa's Development seeks to build on and celebrate the achievements of the past, as well as reflect on the lessons learned through painful experience, so as to establish a partnership that is both credible and capable of implementation. In doing so, the challenge is for the peoples and governments of Africa to understand that development is a process of empowerment and self-reliance. Accordingly, Africans must not be wards of benevolent guardians; rather they must be the architects of their own sustained upliftment.

28. The world has entered the new millennium in the midst of an economic revolution. This revolution could provide both the context and the means for Africa's rejuvenation. While globalisation has increased the cost of Africa's ability to compete, we hold that the advantages of an effectively managed integration present the best prospects for future economic prosperity and poverty reduction.

29. The current economic revolution has, in part, been made possible by advances in information and communications technology (ICT), which have reduced the cost of and increased the speed of communications across the globe, abolishing pre-existing barriers of time and space, and affecting all areas of social and economic life. It has made possible the integration of national systems of production and finance, and is reflected in an exponential growth in the scale of cross-border flows of goods, services and capital.

30. The integration of national systems of production has made it possible to "slice up the value chain" in many manufacturing and service-sector production processes. At the same time, the enhanced mobility of capital means that borrowers, whether governments or private entities, must compete with each other for capital in global rather than national markets. Both these processes have increased the costs to those countries that are unable to compete effectively. To a large extent, these costs have been borne disproportionately by Africa.

31. While no corner of the world has escaped the effects of globalisation, the contributions of the various regions and nations have differed markedly. The locomotive for these major advances is the highly industrialised nations. Outside this domain, only a few countries in the developing world play a substantial role in the global economy. Many developing countries, especially in Africa, contribute passively, and mainly on the basis of their environmental and resource endowments.

32. It is in the distribution of benefits that the global imbalance is most glaring. On the one hand, opportunities have increased to create or expand wealth, acquire knowledge and skills, and improve access to goods and services - in brief, to improve the quality of life. In some parts of the world, the pursuit of greater openness of the global economy has created opportunities for lifting millions of people out of poverty.

33. On the other hand, greater integration has also led to the further marginalisation of those countries that are unable to compete effectively. In the absence of fair and just global rules, globalisation has increased the ability of the strong to advance their interests to the detriment of the weak, especially in the areas of trade, finance and technology. It has limited the space for developing countries to control their own development, as the system has no provision for compensating the weak. The conditions of those marginalised in this process have worsened in real terms. A fissure between inclusion and exclusion has emerged within and among nations.

34. In part, Africa's inability to harness the process of globalisation is a result of structural impediments to growth and development in the form of resource outflows and unfavourable terms of trade. At the same time, we recognise that failures of political and economic leadership in many African countries impede the effective mobilisation and utilisation of scarce resources into productive areas of activity in order to attract and facilitate domestic and foreign investment.

35. The low level of economic activity means that the instruments necessary for the real injection of private funds and risk-taking are not available, and the result is a further decline. In this self-perpetuating cycle, Africa's capacity to participate in the globalisation process is severely weakened, leading to further marginalisation. The increasing polarisation of wealth and poverty is one of a number of processes that have accompanied globalisation, and which threaten its sustainability.

36. The closing years of the last century saw a major financial collapse in much of the developing world, which not only threatened the stability of the global financial system, but also the global economy as a whole. One of the immediate effects of the financial crisis was the exacerbation of existing levels of deep, structural poverty in which about half of the world's population lives on less than US $2 per day, and a fifth on less than US $1 per day.

37. There also exist other factors that pose serious longer-term risks. These include the rapid increase in the numbers of the socially excluded in different parts of the world, contributing to political instability, civil war and military conflict on the one hand, and a new pattern of mass migration on the other. The expansion of industrial production and the growth in poverty contribute to environmental degradation of our oceans, atmosphere and natural vegetation. If not addressed, these will set in motion processes that will increasingly slip beyond the control of governments, both in developed and developing countries.

38. The means to reverse this gloomy scenario are not yet beyond our reach. Improvements in the living standards of the marginalised offer massive potential for growth in the entire international economy, through the creation of new markets and by harnessing increased economic capacity. This will bring with it greater stability on a global scale, accompanied by a sense of economic and social well-being.

39. The imperative of development, therefore, not only poses a challenge to moral conscience; it is in fact fundamental to the sustainability of the globalisation process. We readily admit that globalisation is a product of scientific and technological advances, many of which have been market-driven. Yet, governments - particularly those in the developed world - have, in partnership with the private sector, played an important role in shaping its form, content and course.

40. The case for the role of national authorities and private institutions in guiding the globalisation agenda along a sustainable path and, therefore, one in which its benefits are more equally spread, remains strong. Experience shows that, despite the unparalleled opportunities that globalisation has offered to some previously poor countries, there is nothing inherent in the process that automatically reduces poverty and inequality.

41. What is needed is a commitment on the part of governments, the private sector and other institutions of civil society, to the genuine integration of all nations into the global economy and body politic. This requires the recognition of global interdependence in respect of production and demand, the environmental base that sustains the planet, cross-border migration, a global financial architecture that rewards good socio-economic management, and global governance that recognises partnership among all peoples. We hold that it is within the capacity of the international community to create fair and just conditions in which Africa can participate effectively in the global economy and body politic.

III. THE NEW POLITICAL WILL OF AFRICAN LEADERS

42. The New Partnership for Africa's Development recognises that there have been attempts in the past to set out continent-wide development programmes. For a variety of reasons, both internal and external, including questionable leadership and ownership by Africans themselves, these have been less than successful. However, there is today a new set of circumstances, which lend themselves to integrated practical implementation.

43. The new phase of globalisation coincided with the reshaping of international relations in the aftermath of the Cold War. This is associated with the emergence of new concepts of security and self-interest, which encompass the right to development and the eradication of poverty. Democracy and state legitimacy have been redefined to include accountable government, a culture of human rights and popular participation as central elements.

44. Significantly, the numbers of democratically elected leaders are on the increase. Through their actions, they have declared that the hopes of Africa's peoples for a better life can no longer rest on the magnanimity of others.

45. Across the continent, democracy is spreading, backed by the African Union (AU), which has shown a new resolve to deal with conflicts and censure deviation from the norm. These efforts are reinforced by voices in civil society, including associations of women, youth and the independent media. In addition, African governments are much more resolute about regional and continental goals of economic cooperation and integration. This serves both to consolidate the gains of the economic turnaround and to reinforce the advantages of mutual interdependence.

46. The changed conditions in Africa have already been recognised by governments across the world. The United Nations Millennium Declaration, adopted in September 2000, confirms the global community's readiness to support Africa's efforts to address the continent's underdevelopment and marginalisation. The Declaration emphasises support for the prevention of conflict and the establishment of conditions of stability and democracy on the continent, as well as for the key challenges of eradicating poverty and disease. The Declaration further points to the global community's commitment to enhance resource flows to Africa, by improving aid, trade and debt relationships between Africa and the rest of the world, and by increasing private capital flows to the continent. It is now important to translate these commitments into reality.

47. The New Partnership for Africa's Development centres around African ownership and management. Through this programme, African leaders are setting an agenda for the renewal of the continent. The agenda is based on national and regional priorities and development plans that must be prepared through participatory processes involving the people. We believe that while African leaders derive their mandates from their people, it is their role to articulate these plans as well as lead the processes of implementation on behalf of their people.

48. The programme is a new framework of interaction with the rest of the world, including the industrialised countries and multilateral organisations. It is based on the agenda set by African peoples through their own initiatives and of their own volition, to shape their own destiny.

49. To achieve these objectives, African leaders will take joint responsibility for the following:

IV. APPEAL TO THE PEOPLES OF AFRICA

50. The African Renaissance project, which should allow our continent, plundered for centuries to take its rightful place in the world, depends on the building of a strong and competitive economy as the world moves towards greater liberalisation and competition.

51. The New Partnership for Africa's Development will be successful only if it is owned by the African peoples united in their diversity.

52. Africa, impoverished by slavery, corruption and economic mismanagement is taking off in a difficult situation. However, if her enormous natural and human resources are properly harnessed and utilised, it could lead to equitable and sustainable growth of the continent as well as enhance its rapid integration into the world economy.

53. This is why our peoples, in spite of the present difficulties must regain confidence in their genius and their capacity to face obstacles and be involved in the building of the new Africa. The present initiative is an expression of the commitment of Africa's leaders to translate the deep popular will into action.

54. But the struggle they would be waging will be successful only if our peoples are the masters of their own destiny.

55. This is why the political leaders of the continent appeal to all the peoples of Africa, in all their diversity, to become aware of the seriousness of the situation and the need to mobilise themselves in order to put an end to further marginalisation of the continent and ensure its development by bridging the gap with the developed countries.

56. We are, therefore, asking the African peoples to take up the challenge of mobilising in support of the implementation of this initiative by setting up, at all levels, structures for organisation, mobilisation and action.

57. The leaders of the continent are aware of the fact that the true genius of a people is measured by its capacity for bold and imaginative thinking, and determination in support of their development.

58. We must not relent in implementing this ambitious programme of building sound and resilient economies, and democratic societies. In this respect, the African leaders are convinced that Africa, a continent whose development process has been marked by false starts and failures will succeed with this initiative.

V. PROGRAMME OF ACTION: THE STRATEGY FOR ACHIEVING SUSTAINABLE DEVELOPMENT IN THE 21ST CENTURY

59. The New Partnership for Africa's Development differs in its approach and strategy from all previous plans and initiatives in support of Africa's development, although the problems to be addressed remain largely the same.

60. The New Partnership for Africa's Development is envisaged as a long-term vision of an African-owned and African-led development programme .

61. The Action Programme includes the top priorities structured in the same way as the strategy outlined and these priorities may be revised from time to time by the Heads of State Implementation Committee. The Programme covers what needs to be done in the short term, despite the wide scope of the actions to be taken.

62. Although long-term funding, is envisaged under the initiative, the projects can, however, be expedited to help eradicate poverty in Africa and place African countries, both individually and collectively, on a path of sustainable growth and development and thus halt the marginalisation of Africa in the globalisation process.

63. Although, there are other urgent priorities, those selected here would have a catalytic effect for intervention in other priority areas in the future.

64. While growth rates are important, they are not by themselves sufficient to enable African countries achieve the goal of poverty reduction. The challenge for Africa, therefore, is to develop the capacity to sustain growth at levels required to achieve poverty reduction and sustainable development. This, in turn depends on other factors such as infrastructure, capital accumulation, human capital, institutions, structural diversification, competitiveness, health and good stewardship of the environment.

65. The objective of the New Partnership for Africa's Development is, to provide an impetus to Africa's development by bridging existing gaps in priority sectors to enable the continent catch up with developed parts of the world.

66. The new long-term vision will require massive and heavy investment to bridge existing gaps. The challenge ahead for Africa is to be able to raise the required funding under the best conditions possible. We therefore call on our development partners to assist in this endeavour.

67. Long-Term Objective

68. Goals

69. The strategy has the following expected outcomes:

70. Realising that unless something new and radical is done, Africa will not achieve the IDGs and the 7 per cent annual GDP growth rate, the African Heads of State propose the programme described below. The programme is anchored on key themes and is supported by detailed programmes of action.

A. CONDITIONS FOR SUSTAINABLE DEVELOPMENT

71. African leaders have learnt from their own experiences that peace, security, democracy, good governance, human rights and sound economic management are conditions for sustainable development. They are making a pledge to work, both individually and collectively, to promote these principles in their countries, sub-regions and the continent.

(i) Peace and Security Initiative

72. The Peace and Security Initiative consists of three elements as follows:

73. Long-term conditions for ensuring peace and security in Africa require policy measures to address the political and social vulnerabilities on which conflict is premised. These are dealt with by the Political and Economic Governance Initiatives, the Capital Flows and Market Access Initiatives and the Human Development Initiative.

74. Efforts to build Africa's capacity to manage all aspects of conflict must focus on the means necessary to strengthen existing regional and sub-regional institutions, especially in four key areas:

75. The leadership of the New Partnership for Africa's Development will consider, within six months of its establishment, setting out detailed and costed measures required in each of the four areas above. The exercise will also include actions required of partners, and the nature and sources of financing such activities.

76. The envisaged Heads of State Forum will serve as a platform for the New Partnership for Africa's Development leadership to seek to enhance the capacity of African institutions to promote peace and security on the continent, to share experience and to mobilise collective action. The Forum will ensure that the principles and commitments implicit in the initiative are fulfilled.

77. Aware of that requirement, Africans must make all efforts to find a lasting solution to existing conflicts; strengthen their internal security and promote peace among the countries.

78. At the Lusaka Summit, the African Union decided to take drastic measures in reviving the organs responsible for conflict prevention and resolution.

(ii) Democracy and Political Governance Initiative

79. It is now generally acknowledged that development is impossible in the absence of true democracy, respect for human rights, peace and good governance. With the New Partnership for Africa's Development, Africa undertakes to respect the global standards of democracy, which core components include political pluralism, allowing for the existence of several political parties and workers' unions, fair, open, free and democratic elections periodically organised to enable the populace choose their leaders freely.

80. The purpose of the Democracy and Governance Initiative is to contribute to strengthening the political and administrative framework of participating countries, in line with the principles of democracy, transparency, accountability, integrity, respect for human rights and promotion of the rule of law. It is strengthened by and supports the Economic Governance Initiative, with which it shares key features, and taken together will contribute to harnessing the energies of the continent towards development and poverty eradication.

81. The Initiative consists of the following elements:

82. The New Partnership for Africa's Development states will also undertake a series of commitments towards meeting basic standards of good governance and democratic behaviour while, at the same time, giving support to each other. Participating states will be supported in undertaking such desired institutional reforms where required. Within six months of its institutionalisation, the New Partnership for Africa's Development leadership will identify recommendations on appropriate diagnostic and assessment tools, in support of compliance with the shared goals of good governance, as well as to identify institutional weaknesses and to seek resources and expertise for addressing these weaknesses.

83. In order to strengthen political governance and build capacity to meet these commitments, the New Partnership for Africa's Development leadership will undertake a process of targeted capacity-building initiatives. These institutional reforms will focus on:

84. Countries participating in the initiative will take the lead in supporting and building institutions and initiatives that protect these commitments. They will dedicate their efforts towards creating and strengthening national, sub-regional and continental structures that support good governance.

85. The Heads of State Forum on the New Partnership for Africa's Development will serve as a mechanism through which the leadership of the New Partnership for Africa's Development will periodically monitor and assess the progress made by

African countries in meeting their commitment towards achieving good governance and social reforms. The Forum will also provide a platform for countries to share experiences with a view to fostering good governance and democratic practices.

86. State capacity-building is a critical aspect of creating conditions for development. The State has a major role to play in promoting economic growth and development, and in the implementation of poverty reduction programmes. However, the reality is that many governments lack the capacity to fulfil this role. As a consequence, many countries lack the necessary policy and regulatory frameworks for private sector-led growth. They also lack the capacity to implement programmes even when funding is available.

87. It is for this reason that targeted capacity building should be given a high priority. Programmes in every area must be preceded by an assessment of capacity, followed by the provision of appropriate support.

Objective

88. To promote throughout the participating countries a set of concrete and time-bound programmes aimed at enhancing the quality of economic and public financial management as well as corporate governance.

Actions

89. A Task Force from Ministries of Finance and Central Banks will be commissioned to review economic and corporate governance practices in the various countries and regions, and make recommendations on appropriate standards and codes of good practice for consideration by the Heads of State Implementation Committee within six months.

90. The Implementation Committee will refer its recommendations to African states for implementation.

91. The Implementation Committee will give high priority to public financial management. Countries will develop a programme for improving public financial management and targets, and assessment mechanisms will also be set.

92. The Heads of State Implementation Committee will mobilise resources for capacity-building to enable all countries to comply with the mutually agreed minimum standards and codes of conduct.

93. Most African countries are small, both in terms of population and per capita incomes. As a consequence of limited markets, they do not offer attractive returns to potential investors, while progress in diversifying production and exports is retarded. This limits investment in essential infrastructure that depends on economies of scale for viability.

94. These economic conditions point to the need for African countries to pool their resources and enhance regional development and economic integration on the continent, in order to improve international competitiveness. The five sub-regional economic groupings of the continent must, therefore, be strengthened.

95. The New Partnership for Africa's Development focuses on the provision of essential regional public goods (such as transport, energy, water, ICT, disease eradication, environmental preservation, and provision of regional research capacity), as well as the promotion of intra-African trade and investments. The focus will be on rationalising the institutional framework for economic integration, by identifying common projects compatible with integrated country and regional development programmes, and on the harmonisation of economic and investment policies and practices. There needs to be co-ordination of national sector policies and effective monitoring of regional decisions.

96. The New Partnership for Africa's Development will give priority to the capacity building in order to enhance the effectiveness of existing regional structures and the rationalisation of existing regional organisations. The African Development Bank must play a leading role in financing regional studies, programmes and projects.

97. The sectors covered by the current Programme include the following priority areas:

  1. Infrastructure, especially information and communications technology (ICT) and energy
  2. Human resources, including education, skills development, and reversing the brain drain
  3. Health
  4. Agriculture
  5. Access to the markets of developed countries for African exports

98. For each sector, however, the objective is to bridge existing gaps between Africa and the developed countries so as to improve the continent's international competitiveness and to enable her to participate in the globalisation process. The special circumstances of African island and land-locked states will also be addressed in this context.

B. SECTORAL PRIORITIES

(i) All Infrastructure Sectors

99. The infrastructures considered include roads, highways, airports, seaports, railways, waterways, and telecommunication facilities. However, only sub-regional or continental infrastructures will be the focus of the Plan.

100. Infrastructure is one of the major parameters of economic growth, and solutions should be found to permit Africa to rise to the level of developed countries in terms of the accumulation of material and human capital.

101. If Africa had the same basic infrastructure as developed countries, it would be in a more favourable position to focus on production and improving productivity for international competition. The structural gap in infrastructure constitutes a very serious handicap to economic growth and poverty reduction. Improved infrastructure, including the cost and reliability of services, would benefit both Africa and the international community, which would be able to obtain African goods and services more cheaply.

102. In many African countries, the colonial powers built the infrastructure to foster exportation of African raw materials and importation of industrial goods into Africa.

103. We recognise also that if infrastructure is to improve in Africa, private foreign finance is essential to complement the two major funding methods, namely credit and aid.

104. The Infrastructure Initiative comprises elements that are common to all the infrastructure sectors. It also includes elements that are sector-specific.

105. Objectives

106. Actions

(ii) Bridging the Digital Divide: Investing in Information and Communication Technologies

107. Information and Communication Technologies (ICTs), driven by the convergence of computers, telecommunications and traditional media, are crucial for the knowledge-based economy of the future. Rapid advances in technology and the diminishing cost of acquiring the new ICT tools have opened new windows of opportunity for African countries to accelerate economic growth and development. The goals of achieving a Common Market and an African Union can benefit immensely from the revolution in information technology. In addition to fostering intra-regional trade, the use of ICTs could also accelerate Africa's integration into the global economy.

108. Intensive use of ICTs can bring, unprecedented comparative advantages to the continent. It can:

109. In Africa, poor ICT infrastructure, combined with weak policy and regulatory frameworks and limited human resources, has resulted in inadequate access to affordable telephones, broadcasting, computers and the Internet. African teledensity remains below one line per 100 people. Service costs are also high: the connection cost in Africa averages 20 per cent of GDP per capita, compared with the world average of 9 per cent, and 1 per cent for high-income countries. Africa has been unable to capitalise on ICT as a tool in enhancing livelihoods and creating new business opportunities, and cross-border linkages within the continent and with global markets have been constrained. Though many countries in Africa have started ICT policy reforms, service penetration, quality or tariffs have not yet improved.

110. Objectives

111. Actions

(iii) Energy

112. Objectives

113. Actions

(iv) Transport

114. Objectives

115. Actions

(v) Water and Sanitation

116. Objectives

117. Actions

 

(i) Poverty Reduction

118. Objectives

119. Actions

(ii) Bridging the Education Gap

120. Objectives

121. Actions

122. The key problems in education in Africa are the poor facilities and inadequate systems under which the vast majority of Africans receive their training. Africans who have had the opportunity of obtaining training elsewhere in the world have demonstrated their ability to compete successfully.

123. The plan supports the immediate strengthening of the university system across Africa, including the creation of specialised universities where needed, building on available African teaching staff. The need to establish and strengthen institutes of technology is especially emphasised.

(iii) Reversing the Brain Drain

124. Objectives

125. Actions

(iv) Health

126. Objectives

127. Actions

128. Africa is home to major endemic diseases. Bacteria and parasites carried by insects, the movement of people and other carriers thrive, favoured as they are by weak environmental policies and poor living conditions. One of the major impediments facing African development efforts is the widespread incidence of communicable diseases, in particular HIV/AIDS, tuberculosis and malaria. Unless these epidemics are brought under control, real gains in human development will remain a pipe dream.

129. In the health sector, Africa compares very poorly with the rest of the world. In 1997, child and juvenile death rates were 105 and 169 per 1000, as against 6 and 7 per 1000 respectively in developed countries. Life expectancy is 48.9 years, as against 77.7 years in developed countries. Only 16 doctors are available per 100 000 inhabitants against 253 in industrialised countries. Poverty, reflected in very low per capita incomes, is one of the major factors limiting the populations' capacity to address their health problems.

130. Nutrition is an important ingredient of good health. The average daily intake of calories varies from 2384 in low-income countries to 2846 in middle-income countries to 3390 in the Organisation for Economic Co-operation and Development (OECD) countries.

131. Health, defined by the World Health Organisation (WHO) as a state of complete physical and mental well-being, contributes to increase in productivity and consequently to economic growth. The most obvious effects of health improvement on the working population are the reduction in lost working days due to sick leave, the increase in productivity, and the chance to get better paid jobs. Eventually, improvement in health and nutrition directly contributes to improved well-being as the spread of diseases is controlled, infant mortality rates are reduced, and life expectancy is higher. The link with poverty reduction is clearly established.

132. The majority of Africa's people live in rural areas. However, the agrarian systems are generally weak and unproductive. Coupled with external setbacks such as climatic uncertainty, biases in economic policy and instability in world commodity prices, these systems have held back agricultural supply and incomes in the rural areas, leading to poverty.

133. The urgent need to achieve food security in African countries requires that the problem of inadequate agricultural systems be addressed, so that food production can be increased and nutritional standards raised.

134. Improvement in agricultural performance is a prerequisite of economic development on the continent. The resulting increase in rural peoples' purchasing power will also lead to higher effective demand for African industrial goods. The induced dynamics would constitute a significant source of economic growth.

135. Productivity improvement in agriculture rests on the removal of a number of structural constraints affecting the sector. A key constraint is climatic uncertainty, which raises the risk factor facing intensive agriculture based on the significant inflow of private investment. Consequently, governments must support the provision of irrigation equipments and develop arable lands when private agents are unwilling to do so. The improvement of other rural infrastructure (roads, rural electrification, etc.) is also essential.

136. The institutional environment for agriculture also significantly affects the sector's productivity and performance. Institutional support in the form of research centres and institutes, the provision of extension and support services, and agricultural trade fairs will further boost the production of marketable surpluses. The regulatory framework for agriculture must also be taken into account, including the encouragement of local community leadership in rural areas, and the involvement of these communities in policy and the provision of services.

137. Too little attention has been paid by bilateral donors and multilateral institutions to the agriculture sector and rural development, where more than 70 per cent of the poor people in Africa reside. For example, in the World Bank lending portfolio, credits to agriculture amounted to 39 per cent in 1978, but dropped to 12 per cent in 1996 and even further to 7 per cent in 2000. The entire donor community must reverse such negative trends.

138. It has been recognised that a healthy and productive environment is a prerequisite for the New Partnership for Africa's Development. It is further recognised that the range of issues necessary to nurture this environmental base is vast and complex, and that a systematic combination of initiatives is necessary in order to develop a coherent environmental programme. This will necessitate that choices be made, and particular issues be prioritised for initial interventions.

139. It is also recognised that a core objective of the Environment Initiative must be to held in combating poverty and contributing to socio-economic development in Africa. It has been demonstrated in other parts of the world that measures taken to achieve a healthy environmental base can contribute greatly to employment, social and economic empowerment, and reduction of poverty.

140. It should be mentioned, here, that Africa will host the World Summit on Sustainable Development in September 2002, and that environmental management form the basis of the Summit. In this regard, we propose that the event put particular emphasis on the deliberations on this theme in the New Partnership for Africa's Development.

141. The Environment Initiative has targeted eight sub-themes for priority interventions:

142. The Environment Initiative has a distinct advantage in that many of the projects can start within relatively short time frames, and they also offer exceptionally good returns on investment in terms of creating the social and ecological base upon which the New Partnership for Africa's Development can thrive.

143. Culture is an integral part of development efforts on the continent. Consequently, it is essential to protect and effectively utilise indigenous knowledge that represents a major dimension of the continent's culture, and to share this knowledge for the benefit of humankind. The New Partnership for Africa's Development will give special attention to the protection and nurturing of indigenous knowledge, which includes tradition-based literacy, artistic and scientific works, inventions, scientific discoveries, designs, marks, names and symbols, undisclosed information and all other tradition-based innovations and creations resulting from intellectual activity in the industrial, scientific, literary or artistic fields. The term also includes genetic resources and associated knowledge.

144. The New Partnership for Africa's Development leaders will take urgent steps to ensure that indigenous knowledge in Africa is protected through appropriate legislation. They will also promote its protection at the international level, by working closely with the World Intellectual Property Organisation (WIPO).

145. Objectives

146. Actions

C. MOBILISING RESOURCES

147. To achieve the estimated 7 per cent annual growth rate needed to meet the IDGs - particularly, the goal of reducing by half the proportion of Africans living in poverty by the year 2015 - Africa needs to fill an annual resource gap of 12 per cent of its GDP, or US $64 billion. This will require increased domestic savings, as well as improvements in the public revenue collection systems. However, the bulk of the needed resources will have to be obtained from outside the continent. The New Partnership for Africa's Development focuses on debt reduction and ODA as complementary external resources required in the short to medium term, and addresses private capital flows as a longer-term concern. A basic principle of the Capital Flows Initiative is that improved governance is a necessary requirement for increased capital flows, so that participation in the Economic and Political Governance Initiatives is a prerequisite for participation in the Capital Flows Initiative.

(i) Increasing domestic resource mobilisation

148. To achieve higher levels of growth and more effective poverty reduction, Africa needs to mobilise additional resources, both domestic and foreign. Domestic resources include national savings by firms and households, which need to be substantially increased. In addition, more effective tax collection is needed to increase public resources, as well as the rationalising of government expenditures. A significant proportion of their domestic savings is lost to African countries as a result of capital flight. This can only be reversed if African economies become attractive locations for residents to hold their wealth. Therefore, there is also an urgent need to create conditions that promote private sector investments by both domestic and foreign investors. Furthermore, there are other resources which can be mobilised within Africa, while, at the same time, requesting the developed countries to pledge their Treasury Bills to finance the Plan. By so doing they would not directly commit their liquid assets. Finally, we suggest the establishment of Special Drawing Rights for Africa.

(ii) Debt Relief

149. The New Partnership for Africa's Development seeks the extension of debt relief beyond its current levels (based on debt "sustainability"), which still require debt service payments amounting to a significant portion of the resource gap. The long-term objective of the New Partnership for Africa's Development is to link debt relief with costed poverty reduction outcomes. In the interim, debt service ceilings should be fixed as a proportion of fiscal revenue, with different ceilings for IDA and non-IDA countries. To secure the full commitment of concessional resources - debt relief plus ODA - that Africa requires, the leadership of the New Partnership for Africa's Development will negotiate these arrangements with creditor governments. Countries would engage with existing debt relief mechanisms - the HIPC and the Paris Club - before seeking recourse through the New Partnership for Africa's Development. The Debt Initiative will require agreed poverty reduction strategies, debt strategies and participation in the Economic Governance Initiative to ensure that countries are able to absorb the extra resources. In addition to seeking further debt relief through the interim debt strategy set out above, the New Partnership for Africa's Development leadership will establish a forum in which African countries will share experience and mobilise for the improvement of debt relief strategies.

150. Actions

(iii) ODA Reforms

151. The New Partnership for Africa's Development seeks increased ODA flows in the medium term, as well as reform of the ODA delivery system, to ensure that flows are more effectively utilised by recipient African countries. The New Partnership for Africa's Development will establish an ODA forum of African countries so as to develop a common African position on ODA reform, and to engage with the Development Assistance Committee of the OECD (OECD/DAC) and other donors in developing a charter underpinning the development partnership. This charter will identify the Economic Governance Initiative as a prerequisite for enhancing African countries' capacity to utilise increased ODA flows, and will propose a complementary, independent assessment mechanism for monitoring donor performance. The New Partnership for Africa's Development will support a Poverty Reduction Strategy Paper (PRSP) Learning Group to engage in the PRSP process together with the IMF and the World Bank.

152. Actions

(iv) The Private Capital Flows

153. The New Partnership for Africa's Development seeks to increase private capital flows to Africa, as an essential component of a sustainable long-term approach to filling the resource gap.

154. The first priority is to address investors' perception of Africa as a "high risk" continent, especially with regard to security of property rights, regulatory framework and markets. Several key elements of the New Partnership for Africa's Development will help to lower these risks gradually, and include initiatives relating to peace and security, political and economic governance, infrastructure and poverty reduction. Interim risk mitigation measures will be put in place, including credit guarantee schemes and the strong regulatory and legislative frameworks. The next priority is the implementation of a Public-Private sector partnership (PPP) capacity-building programme through the African Development Bank and other regional development institutions, to assist national and sub-national governments in structuring and regulating transactions in the provision of infrastructural and social services. The third priority is to promote the deepening of financial markets within countries, as well as cross-border harmonisation and integration, via a Financial Market Integration Task Force. Initially, this will focus on the legislative and regulatory environment for the financial system.

155. Actions

 

(i) Diversification of Production

156. African economies are vulnerable because of their dependence on primary production and resource-based sectors, and their narrow export bases. There is an urgent need to diversify production and the logical starting point is to harness Africa's natural resource base. Value added in agro-processing and mineral beneficiation must be increased and a broader capital goods sector developed, through a strategy of economic diversification based on inter-sectoral linkages. Private enterprise must be supported, both micro-enterprises in the informal sector and small and medium enterprises in the manufacturing sector, which are principal engines of growth and development. Governments should remove constraints to business activity and encourage the creative talents of African entrepreneurs.

157. Objectives

158. Actions

(ii) Mining

159. Objectives

160. Actions

(iii) Manufacturing

161. Objectives

162. Actions

(iv) Tourism

163. Objectives

164. Actions

(v) Services

165. Services can constitute very important activities for African countries in particular those that are well equipped in the field of ICTs (téleservices)

(vi) Promoting the private sector

166. Objectives

167. Actions

(vii) Promoting African Exports

168. Objectives

169. Actions

170. Participation in the world trading system must enhance: