Addis Ababa, 05 September 2005: Don't get hung up on aid, warns an ECA analyst. The policies and capacity to deliver on them are what counts.

Countless reports have noted that most African countries will not meet the Millennium Development Goals (MDGs) by the due date of 2015. And many of these reports have pointed to the fact that inadequate external financing is much to blame for the lack of progress.

But lack of financial flows is not the only culprit. The picture is, as always, slightly more complicated.

There is no doubt that the donor community has been dragging its feet in providing the pledged 0.7 percent of gross national incomes to help kick start African economies and extricate countries from gross poverty. Many defend this delay by arguing that aid has been pumped into African economies over the years to no avail or that inefficient African governments are to blame for the continent’s misery.

True, there have been large amounts of aid to Africa over the years and poor African management is partly to blame. But lack of predictability, poor harmonization by donors with national strategies, as well as diverting significant amounts of aid for administrative costs, have also undermined the possible benefits.

So searching for the one determinant factor that impedes progress towards the MDGs seems misplaced. It runs the risk of falling into the usual trap of lumping African countries together as one entity.

The true picture is one of interesting diversity. North Africa is largely on track towards attaining the MDGs, and some Sub-Saharan countries will probably achieve some of the goals.

Uganda, Ghana and Botswana are on course to halve poverty and have achieved sustainable economic growth over the last few years. Other countries, such as Cape Verde, Egypt, Gabon, Mauritius, Namibia, Swaziland and Rwanda will, in all likelihood, achieve universal education, due partly to high political commitment and, in some cases, efficient use of donor support. Mauritius, Swaziland and Rwanda will also achieve gender parity, while Gambia has attained a 40 percent reduction in maternal mortality over a period of 10 years.

The common thread running through the success stories appears to be finding the right combination of sustainable growth, political commitment and the efficient use of domestic and external resources. Prioritising these three factors and placing human development at the core of policy plans, could enable African countries still lagging behind to make significant strides towards achieving the MDGs.

In addition to external financing, accelerated progress towards meeting the MDGs requires action in three main areas: deepening macroeconomic reforms and enhancing domestic competitiveness and efficiency; strengthening democratic institutions and financial management systems; and investing adequate resources in human development.

The MDGs have helped African governments to think in terms of tight and long-term targets, rather than focusing on immediate strategies. And the New Partnership for Africa’s Development (NEPAD), a regional development initiative, has anchored its framework on the MDGs, setting them firmly at the heart of Africa’s development vision for the coming decade.

So it’s not only a question of increasing aid by $50 billion or $75 billion, but also ensuring that sub-Saharan Africa embarks on a path to sustainable growth which at the same time limits the often distorting effects of growth on income distribution.

In short, Africa does not only need cash but better policies and improved capacity to make good use of the available resources. These are the keys to achieving the MDGs.