Global Coalition for Africa

Statement by Mr. Abdoulie Janneh, UN Under-Secretary-General and Executive Secretary of ECA

Addis Ababa
22 June 2007

Your Excellency, Mr. Meles Zenawi, Prime Minister of the Federal Democratic Republic of Ethiopia and Co-Chairperson of the Global Coalition for Africa

Your Excellency, Mme Frene Ginwala, Co-Chairperson, Global Coalition for Africa

Distinguished Participants

Ladies and Gentlemen

I am delighted to be here with you this morning and wish to start by welcoming you all to the headquarters of the Economic Commission for Africa. It is always pleasing for us to have such a distinguished group gathered at the United Nations Conference Centre to rub minds together on issues of critical importance for Africa. This meeting of the Global Coalition for Africa is no exception although there is a certain poignancy about this occasion because it is a close-out session.

I wish to take this opportunity to thank the two Co-Chairpersons who have been able to join us here today for their presence and steadfast support for the GCA process. Prime Minister Meles has been a sterling example of intellectual leadership and dedication to the cause of African development and his enthusiastic support for the GCA agenda is proof yet again of this commitment. We continue to be inspired by his example. I also thank Madame Frene Ginwala who has devoted considerable time and energy into ensuring that the GCA agenda is taken forward. Her vision for maintaining a strong partnership in addressing Africa's development challenges is one that we also share and espouse.

The Global Coalition for Africa was established at a time when Africa was mired in crisis of such scale that the 1980s was described as a lost decade for the continent. The crisis was of economic, governance, political and social dimensions and was of such a scale that it required concerted action by Africa and its development partners to delve into the causes of the condition of the continent with a view to addressing identified challenges. Lest we forget, Africa was characterized at that time by conflicts, single-party or military governments, weak institutions and poorly performing economies.

Today, Africa is not yet out of the woods but since 1990 the landscape has changed quite considerably and there is cause for optimism . Africa now has less conflicts and greater emphasis now is being placed on peacebuilding in post conflict countries and societies. Democratic transitions and elections have become the norm rather than military coups and unconstitutional changes of government. The trends towards increased accountability and inclusiveness as well as the resumption of economic growth in the continent although still not enough is quite heartening. The available data shows that the growth rate of African economies has risen from an average of 1.8% between 1980 and 1989 to 5.7% in 2006 continuing the upward trend of 5.2% in 2004 and 5.3% in 2005.

GCA of course played its part in helping Africa to identify key issues and articulate required responses. Moreover, because of its diversity and willingness to tackle difficult issues head-on, the GCA influenced the nature and content of discourse on the critical challenges facing Africa. I feel that by bringing Africa's leaders from various sectors together with their international partners, the GCA not only provided a space for engagement to overcome apprehensions and wrong perceptions but also served as an example of the benefits and importance of dialogue.

There is ample evidence that GCA helped to shape the debate on issues of crucial importance to Africa This is evident from the extensive list of issues in the area of peace and security, governance, global integration that seemed esoteric fifteen years ago that have now become quite commonplace once the GCA helped to put them on the agenda. For instance, when we talk about conflict management, involvement of Africa in the international peace infrastructure and post-conflict reconstruction, it is easy to forget that these were issues along with sensitive matters like governance, corruption, and presidential term limits which were put on the front burner by the GCA.

On the economic front, while pushing the reform agenda, the GCA also helped to keep the need for increased and more efficient official development assistance in view while stressing the important role of trade, investment and private sector activity. A key finding of the GCA which should continue to concern all stakeholders is the need for reforms to bring about a significant supply response. Indeed, ECA's 2007 Economic Report on Africa, stressed the need to accelerate Africa's development through diversification, if the recent good growth performance of the continent is to be sustained.

Despite the fact that this is a close-out session of the GCA, it is pleasing that we shall be using this opportunity to address current and other emerging challenges facing Africa. Only this February, a Big Table on “ Managing Africa's Natural Resources for Growth and Poverty Reduction” was jointly organized by the African Development Bank and ECA here in Addis Ababa. That forum discussed the benefits of exploiting natural resources such as improved fiscal flows, skills and technology transfer and employment generation. The potential challenges that could arise in this process including consequences such as the Dutch disease, rent-seeking, conflicts and environmental risks were addressed at the same time along with policy options and strategies available to African countries in managing their natural resources. The outcome of the Big Table will no doubt enrich your deliberations on the management of natural resources at this forum but permit me to highlight just two of the recommendations made on that occasion.

The first one pertains to the need to expand the scope of the African Peer Review Mechanism to include governance of the natural resources sector as a key governance performance indicator. Because the APRM process is an entirely voluntary commitment, its soft power stems from ownership therefore including natural resources sector as a performance indicator will help to promote transparency in the use of revenues derived from the extraction of natural resources. The Big Table also called on ECA to establish a peer-learning group on natural resources management and plans are well underway to do so before the end of this year. The natural resources learning group is expected to focus on promoting knowledge sharing in the area of natural resources management through knowledge networks, seminars and workshops as well as a compendia of best practices.

ECA and its partners have also been taking an active interest in another of the substantive items on the agenda of this meeting which is Africa's “Trade and Investment Relations with China and India”. ECA partnered with the African Economic Research Consortium to organize a workshop on “The Impact of the Asian Drivers on Sub-Saharan Africa”. Similarly, the theme of the Ministerial Roundtable at the recently concluded African Development Bank meetings in Shanghai was “Africa and Asia: Partners in Development”. It is therefore clear that all concerned realize that the rapid growth of the Asian Drivers poses both an opportunity and a challenge for African countries.

As far as trade is concerned, Asia now accounts for almost 30% of Africa's exports although this is mainly concentrated in oil as well as primary commodities. The huge demand for natural resources has brought about historically high prices for Africa's export products which means higher revenues but also reminds us of governance and other problems associated with the extraction of natural resources. It is also important to bear in mind that the already fragile manufacturing sector in many African countries may be negatively affected by competition from the Asian Drivers both in domestic and third country markets. The example of the instant loss of manufacturing capacity and employment in the textiles sector at the end of the Multi-Fibre Agreement is one that readily comes to mind.

To benefit from these opportunities and address the related challenges, African countries would need to expand the pace of regional integration in order to attract market seeking investments as well as to use intra-Africa trade as a basis for entry into global markets. Moreover, they need develop the dynamic capacity to scan the environment and develop appropriate strategies and capacity to deal with both current and emerging challenges. Accordingly, a regional and forward looking perspective is required to address issues of a transboundary nature like environmental sustainability, equitable access to shared water resources and disease control. Responding to the problem of climate change is one such example. Regional initiatives are important to address climate change because poor countries are most likely to be hardest hit and yet the least able to respond to its effects.

Since it was established, the GCA has played a critical and catalytic role in bringing such issues to the front burner of regional and global concerns. However, since the GCA will be closing operations at the end of this month, and ECA and AfDB have been charged with taking elements of its agenda forward, permit me to share a few thoughts on what our two pan-African institutions will bear in mind:

• First is that the changing institutional landscape in Africa has provided a good basis to carry on GCA's work in the continent. The establishment of the African Union, adoption of the New Partnership for Africa's Development (NEPAD) and the restored partnership between the African Union, African Development Bank and ECA provide a good basis to taking the GCA agenda forward. Indeed, the partnership between AU, AfDB and ECA enables greater coherence and brings the combined strengths of these three pan-African institutions to bear in tackling Africa's problems.

• Africa is now firmly on the international agenda as a result of its own initiatives and those of the international community. This is evidenced by the support for NEPAD as well as commitments to help meet Africa's special needs including the achievement of the Millennium Development Goals.

• The increased commitment to African development has led to several programmes of action and initiatives as well as the involvement of diverse actors including governments, civil society organizations, the private sector and private foundations. A paramount consideration therefore is to ensure coherence amongst these various initiatives as well as implementing their various recommendations.

• There are several existing forums whose mandates overlap in varying degrees with the GCA such as the African Development Forum (ADF) and the Big Table. Our plans to take the GCA agenda forward would therefore take account of the existence of other forums and at the same time keep its tradition of diversity, inclusivity, and institutional independence.

• Any institutional arrangements that are put in place will keep the regional character of the GCA while at the same time having the flexibility that is not usually possible within the structures of intergovernmental organizations and can do things that they are not well suited to do.

I cannot end this statement without paying tribute to all those who have over the years sustained the purpose and ideals of the GCA since its inception. Special gratitude is due in this regard to the Co-Chairpersons, Co-Chairpersons Emeritus and all the other participants who enriched the process with their ideas, contributions and enthusiasm for Africa's development. Particular mention should be made of the World Bank and the Canadian International Development Agency for their funding and support over the years. I know that they will, along with other partners, continue to engage actively with Africa to keep the spirit of the GCA alive.

I wish you a very successful meeting. Thank you for your attention.