Africa/OECD Ministerial Consultation "The Big Table" SUMMARY REPORT OF THE RAPPORTEUR On Monday, 19 November 2000, the Economic Commission for Africa (ECA) hosted an Africa/OECD Ministerial Consultation - The Big Table - on the occasion of the Eighth Session of the ECA Conference of Ministers of Finance. I. INTRODUCTION The Consultation, which brought together eleven African ministers and their development partners from ten OECD countries, joined by five high level representatives from international organizations and institutions, welcomed and endorsed the unique and unprecedented opportunity for a frank and honest exchange on the International Development Goals (IDGs) and the related Poverty Reduction Strategies. The ECA was commended for its increasingly active role in policy dialogue, including the Big Table Consultation which the ECA is encouraged to institutionalize. The Consultation sought two broad objectives:
II. PRO-POOR GROWTH POLICIES AND THE IDGs The consultation noted that:
Several issues were considered pertinent in this regard. Trade, and the access to markets which this implies, represent the new frontier of African development. More is required from African development partners in the area of access to markets. At the same time, Africa needs to get its house in order by developing an informed common negotiating position, employing the distinctiveness of Africa; in response to the increasing trade barriers brought about by WTO requirements. Insufficient attention and support have been given to regional integration which can play an effective role in the promotion of peace and stability as well as in trade promotion and the attraction of private investment and capital. In this regard, more effort is required to promote the development of physical infrastructure, information technology, energy and specific financial instruments. Regional integration has thus to move beyond the rhetorical, the tendency toward institution creation and the high political profiling in regional meetings. The commitment to regional integration must move to action by engaging private entities in partnership with Governments in interventions that foster the free movement of people, goods and services. Additionally, effective regional integration will minimize the chances of conflict, both internal and across borders, while providing opportunities for the management and resolution of ongoing conflicts. The small loss of sovereignty which regional integration implies would seem a small price to pay for a conflict free environment which fosters development. On the issue of achievability of IDGs, it was agreed that IDGs should be seen as a framework which each country uses in setting its own targets, consistent with country conditions and circumstances. In this regard, it is healthy to note the change in relationship that has reduced the level of institutional imperialism in the dictates of priorities and performance criteria. The success of IDGs and PRSPs will to a large extent be determined by the quality of country leadership, the space of ownership and the changes in relationship -- in other words "Transforming the System". Harmonization of donor policies, timeliness in the conclusion of bilateral arrangements, untying of aid are all important elements in this regard. The effectiveness of aid, including efforts to minimize corruption, would address a source of constraint on aid additionality and enhance the chances of moving aid from project and program support to budgetary support which gives countries more flexibility and ownership It is important to promote an overall conducive environment if this new development effort is to succeed. This will require good governance, seen in its broader context of leadership building, accountability and transparency, participation, communication, capacity development etc. It is equally important that Africa makes all effort to achieve the IDGs by identifying the obstacles and impediments and by being more aggressive in its aspirations. In this regard, it is useful to note that setting international goals and failing to meet them deepens the cynicism and undermines the commitment to these goals. The PRPS Process - What we have learned to date It was agreed that: The PRSP encompasses the principles reflected in the Common Development Framework (CDF) - a national development plan implemented through sector wide action plans. It is a particularly acceptable framework because of the bottoms up approach. PRSPs should be set within, should be in conformity with and should be common to the larger framework of national plans or national long-term perspectives. PRSPs should aim at strong partnerships with stakeholders, achieved through a participatory process which enhances ownership and, resultingly, the chances of successful implementation. Accountability and transparency of the PRSP processes are important to build confidence and commitment to development goals. Interim PRSPs have focussed on public resource use of the poverty reduction effort. Full PRSPs are expected to go beyond this by measures aimed at addressing structural impediments to growth and enhancing implementation mechanisms. This will assist in forging the link between the short-term horizon of PRSPs and the longer term horizon of national plans including the macro policy framework. An ongoing objective in this regard is to raise the ambition of short-term goals by building upon existing macro goals. It was also noted that the content of full PRSP might need revisiting to take into account agriculture and the private sector. On the role of the various stakeholders, the consultation agreed that a division of labour in resource allocation is required to achieve the multiplicity of development goals. The need for infrastructure development by the multilateral institutions is a case in point. The private sector through private capital and private investment needs to be incorporated in the PRSP process, recognizing that Africa will need more than official assistance and domestic resources. In summary, it was agreed that the PRSP represents NO CHANGE and a SEA CHANGE in development effort - no change in the basic fundamentals of that which is required to achieve growth; a sea change in the level of commitment and in the processes which ensure equity in the distribution of the benefits of growth. The Issues/Challenges of PRSPs PRSPs and National Plans - Are they the same? Are they in uniformity or complementarity? It was noted that national plans tend to be of longer duration than PRSPs which cover a period of between 3-5 years. Ultimately, however, PRSPs should become national plans with a poverty focus. Vulnerability to External Shocks - measures are required to address and develop robust responses to shocks such as sharp deterioration in the terms of trade which might undermine export and growth assumptions under the HIPC. Capacity Inadequacy - This is a problem exacerbated within the PRSP context by the need to respond to multiplicity/multichannel requirements of development partners. This is also a long tenured problem, requiring less in complaint and more in effort to address issues relating to the enabling environment, thereby ensuring not only capacity building but more effective capacity utilization including reversal of the brain drain. Ownership vs Endorsement (of PRSPs) by External Partners - It was noted that while endorsement is necessary in a give and take arrangement, the current focus in the PRSP process is a shifting from conditionalities regarding content and priorities to an assessment of broad objectives - i.e. output and results. HIV/AIDS - The consultation took note of the likelihood that all development effort may be undermined by this epidemic. There is a need to find the means whereby PRSPs can respond to this serious development challenge. Continuing Exchange of Experiences - There is need to improve learning of experiences and best practices under PRSPs. The ECA should identify opportunities to achieve this objective. The Tension between the need for Timely Resource Flow under the HIPC debt relief and the need for time to formulate appropriate policies; to strengthen ownership through participation, and to develop the right priorities. It was agreed that emphasis should be placed on the quality of the content and the processes in the PRSPs. The introduction of IMF Interim Progress Reports and the World Bank's Poverty Reduction Support Credit should help to reduce this tension. Non Paris Club Bilateral Creditors - there is a need to ensure that their actions do not undermine the resources flow anticipated under HIPC. The Timeliness of Resource Flow - how quickly is relief flowing from individual credit institutions. Reports suggest the process could take up to six months. This should be reported on the PRSP website, as a means of enhancing sensitivity in this regard. Emerging Capacity-Building Needs The Consultation noted: The need to respond to the multiplicity of partnership requirements under the PRSP process imposes additional strain on country limited capacity. Innovative approaches under the new paradigm would emphasize not only capacity building but capacity savings by reducing this strain. In developing PRSPs, the experience to date shows that government does not have a monopoly in skills and answers, suggesting the need to mobilize capacity from the society as a whole for the design implementation and monitoring of PRSPs. Technical capacity gaps do exist and can be filled through programs of assistance from multilateral and bilateral institutions. The depth of these skills is vital in determining resource flows, debt sustainability, resource use, and resource accountability. Partnership with relevant institutions such as the ACBF can provide additional support to Africa in programs designed to meet its capacity needs. Ways need to be found for the repatriation of African talent and skills now in the diaspora. The partnerships under PRSPs which are intended to lead to an integration of development efforts, make an even more compelling case of the need to enhance the capacity within government structures. There is a need to develop social capital by building institutions and promoting civic confidence building measures to ensure successful PRSP implementation and sustainability. In the PRSP effort, and the progress derived therefrom, there is a need to focus on women capacity needs. While it is important to build or secure capacity for purposes of PRSP, there is a greater need for wider human capital development. This will require support to all the levels of educational institutions that contribute to this. There is also a need for incentive to enhance capacity retention. The overarching view derived from the consultation is as follows. The PRSP is a revolutionary endeavour in its focus on ownership. Ownership in turn requires a strong African voice -- the ability to take charge, the courage to be loud in insistence on internally derived options and alternatives. Ownership also requires a strong partnership response - the commitment to sustained support, the determination to give space to African partners in their pursuit of realistic growth and poverty reduction goals. |
