CNRST1 Meetings Document : English Report

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A. ATTENDANCE AND ORGANIZATION

The First Meeting of the Committee on Natural Resources and Science and Technology (CNRST1) was held from 15 to 18 November 1999 at the Headquarters of the United Nations Economic Commission for Africa (UNECA) in the United Nations Conference Centre, Addis Ababa (Ethiopia). The meeting was formally opened by the Deputy Executive Secretary of the Economic Commission for Africa
Delegates and experts attended the meeting from ECA member States and other organizations within and outside the United Nations.
A list of participants is provided in the Annex

B. ACCOUNT OF PROCEEDINGS

Opening of the Meeting (Agenda item 1)

(a) Welcome address by the Deputy Executive of ECA
In her welcome address, the Deputy Executive Secretary, Ms. Lalla Ben Barka, welcomed all the delegates and experts to the First Meeting of the Committee on Natural Resources and Science and Technology (CNRST). She expressed her profound appreciation to the delegates for accepting the invitation to attend and expressed optimism on the outcome of the meeting.
At the more substantive level, the DES raised a number of issues germane to the core concerns of the CNRST. First, the DES asked the Committee to examine the possibility of increasing Africa’s manufactured exports based on natural resources. This should be based on the acquisition of technological knowledge, skills and experiences to drive innovation.
Secondly, innovation should drive not just development but on a sustainable basis. Lack of sustainable development is manifested in widespread deforestation, loss of biodiversity, desertification as well as air and water pollution that emanate from mining. This being the current state of affairs, Africa will need to adopt efficient and environmentally friendly technologies. While population growth rates exceed those of food production, there is an urgent need to employ Science and Technology (S&T) as an interventionist tool in ensuring food security.
Finally, the DES enjoins the Committee to provide advise to the ECA in five key areas:

(i) undertake in-depth study on important trends in the application of S&T to natural resources, and biodiversity;
(ii) Formulate related policy recommendations for national, regional and international actions that are concrete, realistic and action-oriented;
(iii) Review the progress made in the implementation of resolutions or plans of action in the field of water, energy and mineral policies and how these can promote regional cooperation
(iv) Review and give guidance to the efforts of the ECA in formulating policies for natural resources and S&T for the biennial 2000-2001.
(v)Discuss follow-up actions and identify themes for the next meeting.
The Deputy Executive Secretary expressed the hope that at the end of the meeting, the focus of ECA will be better sharpened.
In addition a Panel of high-level experts in S&T will focus on the main issues of competitiveness and sustainable development.

(b) Welcome address by the Representative of the Government of Ethiopia
The Commissioner of the Ethiopian Science and Technology Commission, Mr. Asrat Bulbula, welcomed delegates to Addis Ababa on behalf of the Government of the Federal Democratic Republic of Ethiopia. He expressed concern on the incapacity of African countries to exploit their natural resources in a sustainable manner. As a result of Africa’s inability to adapt imported technology, the region has been unable to exploit its huge resource base while suffering severe environmental degradation. This is manifested in loss of forest reserves, land erosion, declining soil fertility, shrinking bio-diversity and water pollution.
Lack of technological capability has led to the misuse of natural resources in Ethiopia. While a large portion of resources remains unexplored, about six million people do not have access to enough food. Ethiopia’s exports consist mainly of coffee, hides and other primary products. The lack of competitiveness, which is shared by other African countries, is attributed to low technological capacity.
In spite of isolated successes in agricultural research, it is evident that the region has not done enough in the application of technology to industrial development. For instance, it is important to make more intensive use of irrigation technology and remote sensing in agriculture. The Commissioner concluded that for Africa to reap the benefits of innovations, it must examine the cultural, organizational and structural factors that inhibit social, economic and technological change and suggest appropriate strategies in overcoming such inhibitions.

Election of the Bureau (Agenda item 2)
The following countries were elected to the Bureau

Chairperson                        Uganda

First vice Chairperson          Niger

Second Vice Chairperson    Tunisia

Third vice Chairperson         Zambia

Rapporteur                       Gabon

Adoption of the Agenda and the Programme of Work
(Agenda item 3)
Documents ECA/FSSDD/CNRST/99/I/Add.I and ECA/FSSDD/CNRST/99/Inf.1 were considered for this agenda item. After calling the attention of the house to the appropriate time for and the issues to be debated by the Break Out-Groups, the Agenda and Programme of Work were adopted. The following agenda was approved.

1.Opening of the Meeting
Welcome address by the Executive Secretary of ECA
Welcome address by a Representative of the Government of Ethiopia

2. Election of the Bureau

3. Adoption of the Agenda and the Programme of Work

4. Adoption of Operational Guidelines for the CNRFST

5. UNU/INRA series of lectures by a distinguished Guest Speaker
(a)    Africa in the global arena: international commitments and national realities;
(b)   Strategic alliances in science and technology;
(c)    National and regional systems of innovation

6.Panel discussion on Competitiveness, Sustainability and Integration in the development and use of S&T and Natural Resources in Africa

7. Natural Resources in Africa:
(a) Implementation of ECA programme in mineral, energy and water resources and follow-up of the recommendations of the Durban Conference on Minerals and Energy
(b)Work Programme of UNU/INRA in Natural Resources

8. Achievements and Work Programmes of ECA and ARCT in Science and Technology in Africa:
(a) Activities of the ECA
(b) Activities of the African Regional Centre for Technology (ARCT)

9.Consideration of the recommendations by the Plenary

10.Topics and Venue for the next meeting of the CNRST

11.option of the report of the meeting

12.Closure of the meeting.

Adoption of Operational Guidelines for the CNRST (Agenda item 4)
Under this agenda item, several delegates sought clarifications on and proposed amendments to the Guidelines with a view to making them more operational and strengthening cooperation among African countries and with their strategic partners. Concern was also expressed on some aspects of the mandate of the Committee, which was seen as similar to other intergovernmental organizations, and United Nations Agencies dealing with natural resources and science and technology. It was therefore proposed that the ECA Secretariat liases and coordinate efforts with other IGO and UN Agencies before finalising the Guidelines.
The meeting also agreed to postpone consideration of the proposed recommendations until the various topics on the agenda had been exhaustively deliberated on.
Document ECA/FSSDD/CNRST/99/4 was considered for this agenda item. The four headings in this agenda item were thoroughly debated. These headings are: background, operational guidelines, recommendations and membership of the Bureau. It was suggested that discussions on the recommendations be delayed to allow members States to make inputs. Members suggested slight modifications to the operational guidelines. For instance, item (a) should incorporate “cooperation”, and “Long term” or “emerging issues” in addition to current or burning issues. The operational guidelines are contained within the document ECA/FSSDD/CNRST/99/4 titled: “Proposal on the Constitution and Functions of the CNRST” shown below.

Proposal on the constitution and Functions of the CNRST

I.Background
The Conference of African Ministers responsible for Economic and Social Development and Planning adopted Resolution No. 826 (XXXII) in April 1996, through which the Ministers structured new Organs to deal with overall development issues facing the continent. Among these organs and subsidiary bodies (pare “B-6”) the Ministers established the “Committee on Natural Resources and Science and Technology” as follows:
“This Committee will subsume the functions performed by the African Regional Conference on Science and Technology and the Conference of African Ministers Responsible for the Development and Utilization of Mineral Resources and Energy. It will, however, be composed of experts in these fields.”
The Committee will serve as a forum for the promotion of cooperation among African countries in the areas of science and technology and development and natural resources and for providing advice on science and technology issues relevant to the development of member States. This, Committee will meet on a biennial basis. The Terms of Reference of this Committee are as follows:
(a) promote measures to facilitate co-operation among African countries in the areas of natural recourse, science and technology;
(b) provide a forum for exchange of information and sharing experiences n these areas;
(c) Assist the Commission in the formulation of programmes for the development and application of science and technology; and
(d) Advise the Commission on ways to strengthen its support to member States in the area of natural resources management.

II. Operational Guidelines
The committee on Natural Resources and Science and Technology (CNRST) will:
(a) Undertake in-depth analysis of the emerging issues on natural resources development an science and technology issues relevant to the development of member States;
(b) Make related policy recommendations on these issues for use by African policy makers and their counterparts in the development co-operation community;
(c) Provide guidance to the work of ECA by reviewing the Division’s existing programme of work and examining proposed programmes and priorities;
(d) Monitor activities of member States in the above mentioned areas;
(e) Consider special natural resources and science and technology concerns of member States and recommend measures to be undertaken in this regard.

UNU/INRA Series of Lectures by a Distinguished Guest Speaker (Agenda item 5)
Topic: SCIENCE, TECHNOLOGY AND ECONOMIC GROWTH: AFRICA’S BIOPOLICY AGENDA IN THE 21^st CENTURY
Dr. Calestons Juma delivered three lectures on the above topic. Professor Uzo Mokwunye, Director of the United Nations University Institute for National Resources in Africa (UNU/INRA) introduced the UNU/INRA Second annual distinguished lecturer. Prof. Mokwmye indicated that this activity was the culmination of efforts by UNU/INRA and UNECA to work together for the benefit of the UNECA member States. He then introduced the Distinguished Guest Lecturer, Dr. Calestous Juma. Dr. Juma is Director of the Science, Technology and Innovation Programme at the Center for International Development at Harvard University. Dr. Juma is a former Executive Secretary of the United Nations Convention on Biological Diversity.

Lecture 1: Africa in the global arena: International Commitments and National Realities
African countries have played an important role in influencing international fora and shaping the global agenda. These efforts have not led to concrete improvements in opportunities at the national level because while international negotiations provide Africa a framework for collective thinking, they do not offer practical basis for using Africa’s resources to solve agricultural and human health problems. Africa’s place in the world economy has been defined largely by its natural resource endowment and therefore its fate is linked to changing commodity prices and political factors. Natural resources do not provide sufficient basis for economic growth unless their exploitation is linked to the development of process technologies and their diffusion in the economy.
A Series of studies show that African countries lag far behind in economic growth rates and wealth accumulation largely as a result of low technological competencies and almost exclusive dependence on natural resources. The paper makes connections between geography, ecology and innovation; and the region’s experience in the international arena at which African countries persistently pressed for reforms was analyzed. Unfortunately this active and visible presence of Africa at the global negotiating arena has not brought much dividend to the region’s economic development.

Discussions
Africa has been instrumental to bringing major issues to center stage in international negotiations. However political decisions during negotiations have lacked strong technical expertise (as was the case in CBD negotiations) leading to situations where Africa miss the point of issues under negotiation. African countries need to develop analytical capacity to examine and focus on what should be gained from international negotiations. Financial commitments needed to operationalize conventions do not materialize. There is need for financial independence to facilitate acquisition of needed technology.
Due to under-representation, delegates are easily exhausted. This contrasts with large delegations from developed countries that are able to change personnel taking part in negotiations without changing negotiation positions. Acquisition of technology requires some competence in the ability to evaluate different technologies and assess needs.
Focus on protection of sovereignty on natural resources is misplaced and rendered invalid by technological developments (e.g. synthetics) and many existing long-term agreements for the exploitation of natural resources. The several multilateral arrangements have not been very beneficial to Africa and there is the need for bilateral strategic alliances at the same time as Africans participate in multilateral negotiations.
Excessive dependence on natural resources can actively be a hindrance to development.
A lot of the technologies acquired in Africa have been tied to aid programmes. Therefore Africa has been involved in the sort of finance which eliminates/limits choice of technology. Aid programmes are typically designed to facilitate the transfer of technologies from supplier countries. It was noted that failure in technological choice is not unique to Africa. The difference is that whereas there have been deliberate attempts in other countries to learn from the failures identified by commissions of enquiry, in African countries, commissions of enquiry are used to cover up failures.
Participation in negotiations of international agreements requires tremendous prior technical consultations, as demonstrated by the EU. SADC countries also have mechanisms to undertake consultations and formulate common positions. There is the need for such regional consultations to identify common technical positions prior to participation in multilateral negotiations.
African countries need to engage in wide domestic consultations leading to the passing of laws/instruments prior to undertaking multilateral negotiations. The domestic consultations will ensure inputs from all sectors.
There is the need for science and technology advisors or capacity in various negotiating delegations. This capacity will back negotiations while pursuing bilateral negotiations based on strategic interests. Strong multilateral positions can be used to leverage discussions at the bilateral level.

Lecture 2: Strategic Alliances in Science and Technology
Multilateral discussions are good for establishing international norms and rules but when it comes to technological development, most of this take place within enterprises at the national level. This has implication for the direction of Africa’s strategy in technology acquisition.
There can be no significant growth without scientific and technological advancement. Technological search strategies of countries at the cutting-edge are different from those of countries that lag behind in technology and can take advantage of expired (or position themselves to take advantage of expiring) patents for technologies. Japan, Korea and Taiwan provide examples of rapid industrial expansions based on the use of patents in the public domain. This requires capacity to search and identify technologies needed by developing countries.
In international negotiations (e.g. WTO), Africa is spending much time fighting the patenting of technologies. Instead, Africa needs to spend such time mastering publicly available technological information.
The issue of brain drain from Africa should be seen as untapped capacity that can be harnessed rather than loss of opportunities. Nationals of African countries can contribute to development in their own countries without physical presence in Africa. This will foreclose the need for repatriation of Africans to their countries where requisite infrastructure for putting their skill to use may not exist.
The way Africa pursues diplomacy in the international arena needs rethinking. In this connection, there is the need to identify opportunities for partnerships backed by political commitment to pursuing partnership.
Africa should look at bio-diversity as a resource that can be converted into products. In the area of genetic resources, the basic starting point is taxonomy. The linking factor in using biological resources is the availability of taxonomists. There is the need for requisite capacity in taxonomy to enable Africa characterizes its genetic resources. There is the need to get Africa’s botany departments working.
Africa can secure gene sequencing facilities and genetic engineering services from foreign companies. The pure systematic work needs to be followed up with the identification of genes that possess specific characteristics. There is the need for a patent office that monitors the exportation of existing patents of value to technological development in Africa.
Concerning agricultural biological diversity (i.e. diversification of crops especially indigenous crops), some indigenous crops have not been commercialized because of difficulties in processing and the need to modify their structure/characteristics. These indigenous crops provide opportunities for adding to the global food base.
Biomedical research: the use of biological resources for the production of drug against disease. In the search for drugs, companies will increasingly turn to Africa because of its rich resources and diverse ecologies. There is need for an initial taxonomy work on the biological resources followed by genetic work and finally, product development. Due to the huge expense involved in drug development in Africa, no countries can embark on product development on its own.
Very little is spent on development of drugs for tropical diseases as foreign pharmaceutical companies point to the low buying capacity in Africa. This is an area where African countries can enter into partnership to exchange access to their resources for knowledge and skills in development of drugs for tropical diseases.

Discussions and conclusions
After much discussions on pertinent issues, the meeting arrived at the following conclusions regarding strategic alliances in science and technology:
i.       There is great value in pursuing bilateral discussions (where individual institutions and countries in Africa look at their strategic interests and try to maximize benefits from partnerships) while maximizing their advantages in multilateral negotiations.
ii.       Success is premised on the ability to identify opportunities and develop priorities, in choosing partnerships that fulfil strategic interests.
iii.       The environment in which Africans work in their countries stifles inventive capacity. Africans living in other environments actually do invent. Most researchers in Africa on the other hand are not focused on creating patents because: they are not well informed; they do not have the means to pay for the patents, and the availability of patents is not a criterion for promotion or professional advancement because the emphasis is rather on publications.
iv.        Resolutions at OAU and ECA meetings are not followed by concrete actions. We need political will to back up specific actions that provide capacities for technological development.
v.        Patents are a very small part of the body of knowledge required to develop a product. The creation of drug products takes place in industry and not in multilateral public health agency.
vi.        Cooperation should be defined by the problem at hand. We have tended to use South-South cooperation as a blunt instrument or toolbox, which is applied to all issues. The fact that countries are from the South does not mean that technologies can easily be interchanged between them. Once a problem is defined, the search should be for the best partners needed to solve the problem irrespective of geo-physical origin. South-South cooperation works in areas where problems are contiguous.
vii.        Some companies have generated information or knowledge that is not being used but which may be relevant to African countries. Considerable scientific knowledge is already available in the north. The challenge is to mobilize the knowledge that is already available for the benefit of African countries; for example a lot of knowledge on Africa’s medicinal plants is available at Kyoto University in Japan.
viii.        There is a large pool of technological and scientific knowledge in the world with expired or expiring patents which African countries can utilize. To do this, however, countries would need to keep track of the expiry dates of the relevant patent. Knowledge/information can be accessed through the Internet.
ix.        Africans have developed technologies that have benefited the economies of developed countries but they have not been able to use these technologies to help Africans. This is due to the region’s low technological competence to tap these technologies. The problem is how Africans can capture scientific knowledge for economic development.
x.        In order to utilize knowledge as a resource for development of the region, there is need to have a proper data base showing which scientists is working where and on what problems. There is therefore a need for a survey and establishment of a database on Africans in diaspora, whose inventions, Africa can utilize. It is also necessary to strengthen existing collaboration between some African and American universities/institutions, which have helped developed technologies, which have solved some African problems particularly in agriculture.
xi.        For a country to develop a strategic focus, there is the need for constant domestic consultations to assess scientific and technical capacity for developing a product before going to international forum to negotiate access for product development. To negotiate effectively on any issue, it is essential for national positions to be developed on the basis of wide domestic consultations formulated into laws/regulations to promote specific ideas. Such national positions then form the basis for negotiations.
xii.        Market size is absolutely important for mobilizing technological capacity development. This is why regional integration is important for technological acquisition. There is the need to develop a regional system of innovation linking African institutions.
xiii.        African countries often approach negotiations with too much caution, an attitude that derives from a culture of fear. Approaching strategic concerns such as international negotiations with timidity is likely to be counter-productive.
xiv.        Africans should not limit the search for cooperation to Africans in the diaspora. They should be open to cooperation with whoever is willing to cooperate to further the interest of Africa.

Lecture 3:     National and Regional Systems of Innovation
A critical issue for African countries is how to build the requisite capacity to mobilize global science and technology to contribute to development. One of the factors limiting Africa’s capacities for technological change is the lack of explicit policies and institutional arrangements to deal with emerging technologies. What is needed is the establishment of a systematic and long-term institutional basis for building capacity in science and technology policy analysis through institutional capacity building. As an example the United Nations University Institute for Natural Resources in Africa (UNU/INRA) is by its legislative mandate and scope, its pan-African focus and its world-wide linkages to relevant science and technology institutions, in a unique position to provide leadership in building the capacity needed in Africa.
From the 1980s a stream of studies have shown that national systems, and the way in which technological institutions interact is more important to understanding industrial dynamism, than the existence of these isolated institutions. The idea of the national system has over time encouraged the concept of regional systems of innovation. Interaction at the informal level among actors is as important as formal linkages.
Again, the reforms of the 1980s were focused mainly on macroeconomic reforms but there has been little growth because the reforms took little account of technological innovations. Manufactured exports tend to encourage innovative activities because exporting firms need to meet stringent global quality standards. These innovative activities take place within enterprises. The other actions in the national system provide technical support while the state provided the enabling environment.

Discussions and conclusions
The lecture was followed by discussions which led to the following major conclusions:
i.       Members reiterated the importance of interactions between the various sectors within the national system for the promotion of industrialization.
ii.       Inter-country collaboration and regional approach to solving the much bigger problems that otherwise will be difficult for member states to do on their own.
iii.       The profound destabilizing effects of the reforms carried out in the 1980s has not led to the build-up of national technological capabilities and there is therefore the need to re-examine the role of the World Bank and IMF in Africa’s development.
iv.       Lack of funds has been a major reason for the insufficient attention given to S&T development. It is therefore important to involve the private sector in a more systematic manner in the acquisition of technological capabilities.
v.       There are reservations by member states on the role of the private sector, particularly due to their superior financial capacity and as such the implementation of privatization should be done carefully.
vi.       The Guest Lecturer in response reiterates the important role the state has to play in the industrialization process and promotion of technological innovations.
vii.       The role of human capital and as such the possible reform of the educational system was mentioned. It was stressed that wholesale reform of the educational sector is costly and the outcome, uncertain, and should therefore be approached with caution.
viii.       The need to train Africans in the discipline of S&T policy and management was stressed over and again. Given the uncertain terrain of the new millennium, African countries will need to invest explicitly in training core personnel in the management of technology.

Panel Discussion on Competitiveness, Sustainability and
Integration in the Development and Use of Science and
Technology and Natural Resources in Africa (Agenda item 6)
A panel was organized to discuss the central theme of Competitiveness, Sustainability and Integration in the Development and Use of Science and Technology and Natural Resources in Africa. The discussions were based on two background papers and “two speak notes”. Two papers were presented while two Panel Members presented “speak notes”. The summary of the two background papers are presented below. The Panel Chairperson was Dr. Z. Nyiira (Uganda).
The first paper entitled “Natural Resources and Technology: Competitiveness and Sustainable Development in Africa” (ECA/FSSDD/CNRST/99/2) was presented by Prof. Banji Oyeyinka (Nigeria). The summarize of the paper is as follows:
The Relative importance of Natural Resources

The relative importance of natural capital (NC) taken against other forms of capital is negatively correlated with per capita income. where NC constitutes just about 2% of total capital in Western Europe and Pacific Ocean, and only 5% in resource-rich North America. In contrast most Africa and the Middle East have 20 and 39% respectively. While the broad pattern would seem to be supported by empirical evidence, the figure for the less developed countries (LDCs) particularly Africa would seem to be too low.

Other studies provide further evidence of the negative correlation between natural capita and national wealth. Sach and Warner (1995) found a negative relationship between per capita growth rates and the rate of natural resource exports to GDP for eighteen countries over an eighteen year period.

Resource-rich developing countries exhibit relatively poor per capita growth performance while slower per capita growth is more pronounced in mineral exporting countries. Between the period of 1980-1992, average per capita GNP growth rate in some twenty-three mineral exporting countries was a negative (0.5%) with the exception of five countries namely, Indonesia, Colombia, Chile, Oman and Botswana. The evidence is corroborated by Nankani (1979) where he observed that:

“….Mineral economies have been less than successful in economic performance: lower rates of growth, lower levels of social welfare and more highly skewed income distributions than non-mineral LDCs”.

Hirschman (1958) has also made the point about the relatively lower contribution of natural capital. He concluded that resource industries exhibit much lower linkage effects than manufacturing and are for that reason, less effective in propelling growth to the rest of the economy.
Correlation between Human Capital and Natural Capital.

There is Considerable evidence that inter-regional variations in skill/resource endowment have high correlation with economic growth. For instance the skills endowment of sub-Saharan African countries as a group in 1987 is similar to that of the Republic of Korea and Singapore in 1960, an almost three decades gap. The findings of the different authors can be codified in the following stylized facts:

Resource-rich Sub-Saharan Africa (SSA) with the poorest per capita income has the lowest ration of manufactured exports to primary exports as well as the lowest density of schooling per unit area of land.

Resources-poor East Asian countries, with relatively higher per capita income have the highest ratios of manufactured exports as well as the highest ratios of schooling per unit of land.

South Asia, Latin America and South East Asia are in between.

High rates of economic growth was stimulated among exporters of manufactures due largely to the development of a strong manufacturing sector; this sector makes greater demand on skills, a variable that is positively correlated with economic growth.

Manufacturing has stronger externalities, being underpinned by higher levels of technological capacity and technological capabilities acquired through “technological learning” (the ways by which enterprises accumulate competence); natural resources sectors require considerably less technological capabilities but contribute much less to economic growth.

Resource-based industry has higher land-intensity and higher skill-intensity (and lower employment-intensity) than manufacturing; however comparative advantage is possible only if resource-rich countries complement this with higher skills and technical competence.

The structure of production has much to do with demand for education. In the case of East Asia, a combination of intensive agricultural system and the initially less capital-intensive manufacturing sectors demand greater skills and technological competence than does primary exports and import substitution adopted by much of African countries. This early investment in manufacturing led to equally early investments in primary education.

Resource-abundance with poor human resources is not likely to promote export diversification from unprocessed primary products; post-school skill acquisition should therefore be taken seriously in addition to schooling. For this reason countries with poor human but rich natural resources, may adopt a strategy of producing and exporting processed forms of primary products. As shown in table 2, Africa’s human capital is largely engaged in rural-based subsistence agriculture. Not surprisingly, the proportion of manufactures in exports is uniformly low for African countries with the exception of Mauritius.

Crop-driven economies seem to have an inherently slower growth rate than manufacturing-driven resource-deficient economies; the agricultural sector properly managed may expand at 4-6% annually at most, while manufacturing has the potential to grow at twice this rate or more. Consequently, an economy with a small manufacturing sector is likely to record slower economic growth rate and a smaller share of manufacturing in GDP which varies systematically with per capita income.
Is Comparative Advantage in Resource-based Sectors automatic?
The question that is pertinent now is whether comparative advantage is automatic as a result of resource abundance? Of all the sectors examined, we find that the only industrial branch in which Africa recorded a positive value of revealed comparative advantage index was food manufacturing (1976). Leather products and wearing apparel improved considerably in 1986 and 1995 while food manufacturing declined. While the manufacturing sector as a whole improved, a number of the “natural” branches such as textiles and beverages deteriorated.
Given Africa’s resource abundance in afro-related sectors, the regional competitive performance is disappointing. For instance, only a handful of countries have gained competitiveness in sectors such as footwear, clothing and textiles. However, revealed comparative advantage (RCA) has increased considerably in furniture and leather products, which are the most labour-intensive branches. So what does all these mean? We advance a number of propositions as our conclusions.

Conclusions

Resources endowment does not bestow automatic comparative advantage on a country or region.

Export-oriented strategy will not automatically induce faster productivity growth.

Rapid productivity growth and subsequent competitiveness can only be advanced by the accumulation of relevant technological capabilities. The accumulation of technical competence is achieved only through technological learning – a highly heuristic process – that takes time and calls for explicit investment in human capital formation.

While natural capital points the way to the nature of activities that a country or region may carry out, it is not a sufficient condition for development. The key to gaining competitiveness is the building up of capacities within domestic firms and benchmarking them with firms elsewhere in the world.
The second paper entitled “Policy Framework for the Development and Application of Biotechnology in Africa” was presented by Prof. S. Jugessur from the ECA NA-SRDC. In its presentation the speaker stressed on the development of capacity, manpower and institutions so that biotechnology can provide some answers to Africa’s problems of food security, increased productivity and competitiveness of export crops and raw materials. For the development and application of biotechnology, appropriate policies and legislations, supported by the development of relevant capacity in terms of manpower and institutions are necessary.

Manpower required:

Bioprocessing engineers                               - bio-safety

technicians                                                  - bioethics

experts in biopharmaceuticals                       - intellectual property

bioagro foods                                               - patent law

genome mapping                                         - bioinformatics
Courses in biochemistry, applied microbiology and biogenetic engineering have to be given at university level. There is need for reform in curricula at secondary and tertiary levels, with facilities for laboratory experimentation and testing of products.
Once the manpower is available, they have to use their knowledge for the commercialization of biotechnologically engineered products. Universities should therefore set up technology incubators where the researchers can interact with the private sector people and get their ideas and products commercialized.
Since the university itself is not a profit making body, it has to set up an Office of Technology Transfer, and with a Research Trust, provide seed money to a Private Operating Company that is legally mandated to commercialize services and products. A three tier-structure involving the university office of technology transfer, university research trust, and the private operating company will then form the institutional requirement to enable the practical application of biotechnology for the benefit of the community, and for generating wealth that can be pooled back into socio-economic development.
The functions of biotechnology incubators are:

i.        Evaluate the commercial potential of all opportunities in university research by interacting with the research community and the needs of the industry.
ii.        Arrange for patenting and protection of intellectual property.
iii.        Develop licensing contracts with industrial partners that manufacture and exploit the technology. Such contracts involve; (a) licensing fees as initial payments as well as annual fees; and (b) minimum annual royalties.
iv.        Provide initial start-up costs, legal fees, costs of patenting and business expertise.
v.        Act as a broker between the industrial partner and the university research institute.
vi.        Organize seminars and technology demonstrations for industrial partners.
Unless the above actions are taken, biotechnology in Africa will remain an academic venture, and people trained will join the ranks of brain-drain experts. We need to move from the fixation on of publish or perish to commercialize or perish
Following from the above the policies required for biotechnology to be effective in African countries are as follows:
Policy statement 1: All member States shall set up, (if they have not already done so) a National Biotechnology Committee (NBC), with the task of putting up national short, medium and long-term goals and national biotechnology programmes, and monitoring the implementation of such programmes in harmony with subregional, regional, and global needs and priorities.
Policy Statement 2: Since the global market for traditional agricultural exports is facing the competition of biotechnologically engineered products of developed countries, African countries shall diversity their production base and promote the application of biotechnology to produce improved products that can enable them to be food secure, alleviate poverty, and meet the challenge of global competition. Governments shall provide all necessary incentives to promote local biotechnology enterprises.
Policy Statement 3: African countries shall pay special attention to the development of endogenous capacity to develop and utilise biotechnology for their own good. Priority shall be given to reform school and university curricula so as to produce qualified staff who can utilise biotechnology properly. Technology Incubators shall be promoted so as to enable the commercialization of biotechnology research, using the full participation of the private sector.
Policy Statement 4: African countries, in order to cope with the World Trade Organization’s Agreement on Trade Related Intellectual |Property System (TRIPS), shall urgently introduce appropriate Intellectual |Property Regulations (IPR) to protect their plant and animal life forms from international pilferage, and ensure Plant Breeders Rights to protect their farmers from being forced to rely on externally produced seeds.
Policy Statement 5: African countries shall enact national legislations to safeguard the sustainability of local biodiversity against inappropriate exploitation and management. Because of the fear of losing permanently rare animal and plant species, countries shall set up gene banks to ensure their availability for future generations.
Policy Statement 6: The possible release of genetically modified new strains of insects, bacteria, and viruses, as well as biotechnologically produced chemical weapons in the environment can have devastating effect on the lives of plants, animals and humans. African countries shall develop appropriate legislations compatible with international regulations, and set up regulatory bodies to monitor the importation of genetically modified organisms so as to ensure biosafety, in line with the Biosafety Protocol.
Policy Statement 7: African governments shall give due consideration to ethical issues when developing and exploiting biotechnology for their benefit. The welfare of the poorer sections of the society shall be the guiding principle. Steps shall be taken to prevent multinationals from exploiting poor and dependent farmers and making the rich richer and the poor poorer.
Policy Statement 8: African governments shall encourage and promote subregional and regional cooperation in the development and use of biotechnology through seminars, conferences, collaboration in research, the setting up of networks, and the development of model legislations for biosafety, biodiversity conservation, and regulating industrial property.
The speaker suggested that ECA, in collaboration with other interested organizations, could undertake the task of developing model legislations for ensuring bio-safety, bio-diversity conservation, and for regulating industrial property in this area.

First Comments on Document ECA/FSSDD/CNRST/99/2 from Mashupye R. Kgaphola (South Africa Panel Member)
General observation: The empirical position of a negative correlation between endowment in natural resources and competitive economic growth over the last half century or so has been substantively illustrated. In accepting the stated premise, however, we must pause to ask the fundamental question: was it inevitable that this negative correlation would ultimately prevail? In other words, is there perhaps some underlying internal dynamic which may account overall for the prevailing situation as noted? This is a crucial question that needs to be rigorously interrogated if we are not to fall into the unfortunate position of reaching a fatalistic conclusion that natural resource endowment per se is some kind of an “eternal curse” for Africa in general.
In so far as the issue of human capital is concerned, it is worth remarking that ultimately technological know-how would be meaningless unless it resides in an endogenous community. In other words, both the capacity and capability of a system to generate and/or to capture technology ultimately is a function of the human resource base. Put another way, asking questions about the technological basis of any economy is not just asking about physical infrastructure, but more fundamentally asking about the human factor who is the knowledge carrier in the whole enterprise.
In considering the African scenario, one may ask the following questions in so far as science and technology skills are concerned:

Can Africa afford a scientist?
How can African maintain a sustainable skill base in S&T?
How can Africa generate an endogenous technology culture?
To start with the first question, one notes that whereas governments in Africa have often expressed great enthusiasm for S&T, it is a sad reality that this apparent enthusiasm has not been matched by material practical action. In general, the lot and status of a scientist/technologist in Africa leaves much to be desired. Both the capital infrastructure and the professional environment in which the S&T practitioner functions tend to be neglected from the point of view of maintenance, upgrading and quality enhancement. Any wonder, then, that significant numbers of African S&T professionals have sought refuge in the Western world?
As regards the maintenance of a sustainable skill base in S&T, the following steps need to be taken:

Broaden participation in S&T education at the higher levels;
Pay meaningful attention to women’s participation in S&T education, research activities and management of relevant institutions;
Conceptualise new modes of management training/education in general, such that S&T is seen as an integral and not part of peripheral to, understanding the dynamics of social and economic development in a modern society. Such an approach would hopefully in the long-term resolve the dichotomy of “politically ignorant scientist” versus the “scientifically ignorant politician”.
To create a technological culture, a number of key steps need to be taken, including the following;
To Revamp the school curriculum with a view to making technology education the central theme.
Introduce post-school technology education programmes, including more especially workplace training programme. It is noted that South Africa is currently in the process of initiating such a programme.
Use public media as a tool in mass education

Make S&T education enterprising in orientation, instead of maintaining the traditional static posture of the ‘Laboratory’. In this regard, we must foster stronger partnerships between industry and training institutes (incl. Higher education), as well as collaboration between S&T faculties and business schools.

Create national systems of innovation and ensure that these are appropriately coordinated to meet their goals.

Second Panel Comments by Dr. Beyene Kebede (Ethiopian Panel Member)
Ethiopia is well endowed with land, water, forest and plant genetic and wildlife resources. Although some efforts are being made towards the rational utilization of these renewable natural resources, the environment has been in a continuous state of deterioration.
In a country like Ethiopia, agriculture and sustainable use of natural resources interact in a very complex and diverse manner. One of the major issue in the sustainable development of the natural resources is the fact that the country’s economic development is largely dependent on the development of its agriculture which in turn exerts excessive pressure on the natural resource base of the country.
The requirements of meeting the growing food needs of a population that is increasing at the rate of 3% per annum have led to unsustainable land use practices which is reflected in intensification, leading to a narrow genetic base and uniformity, and extensification leading to encroachment into natural habitats. Inappropriate/insecure land tenure system has also contributed to farmer’s concern over long term productivity effects. Absence of effective institutional mechanism, inadequate data base, poor planning and monitoring capability and absence of farmer demand-driven extension systems have also contributed to inappropriate utilization of the natural resources.
The underlining fundamental problem behind all these is the issue of poverty. Government macro-economic policies is trying to reduce poverty through broad-based economic growth. The growth is expected to arise mainly from higher agricultural output than links activities in industrial and service sector. The Government’s development strategy known as an “Agricultural Development Led Industrialization” (ADLI) places emphasis on agriculture as the engine of growth on account of its potentially superior growth linkages, surplus generation, market creation and provision of raw materials and foreign exchange. Over the long term growth of the industry it is hoped the proportion of the labour force engaged in agriculture will be reduced there by reducing population pressure on land.
The natural resource base of the country provides many opportunities for diversification into non-coffee exports. The major constraints to realizing these potential, however, are the problems of accessing foreign market. The resulting higher costs leads to loss of competitiveness as a result of poor quality.
The Government has also tried to provide institutional support through policy directives for the development of natural resource. Some of the important ones are the inclusion of natural resource management in its S & T policy, the establishment of a Conservation Strategy of Ethiopia, the Environmental policy of Ethiopia, a National Policy on Biodiversity Conservation and Research and the establishment of a National Committee for Biotechnology, and so on.

Comments on Panel Discussions
The notion of “publish or perish” in universities should be replaced with “commercialize or perish”. This should be backed by legislation to encourage innovator continue inventive activities.
How do we come out of the resource curse? The panel was asked to elaborate on how to get out of the development trap, brought about by resource-abundance.
We should begin to find ways to influence national economic strategy. It is through the interaction of scientists and politicians in policy-making that we might begin to make a difference. Scientists should know more politics while politicians should endeavour to understand scientists.
Research should reflect real life situations. We need to celebrate research at home and in the Diaspora. We may want to find success stories from which we will learn useful lessons around Africa.
There is a paradox in the Ethiopian situation in which Government allocates up to 1.5% of GDP to S & T while the sector is unable to use the allocation. The concerned panel member acknowledges the serious lack of manpower in Ethiopia and the need to build up capacity rapidly.

Natural Resources in Africa (Agenda item 7)

(a) Implementation of ECA Programme in Minerals,
Energy and Water Resources and Follow-up of the Recommendations
of the Durban Conference on Minerals and Energy
The Chairman opened the Session and the Floor given to the RCID Team led by the Officer-in-Charge, Mr. A. Traore. He stated the major aims as follows:

Summarise the Programs in Minerals, Energy and Water.
Show the extent of incorporation into the programs of the recommendations of the Durban Ministerial Conference on Mines and Energy.
Seek comments and Advice for improvements from the CNRST especially with reference to the planned Work programs for the biennium 2000 –2001.
There were three sub-presentations on Minerals, Energy and Water respectively.

1. Minerals.
The report ECA/RCID/072/99 entitled “Report to the first Meeting of the Committee on Natural Resources and Science and Technology on the Implementation of the Recommended Actions of the Second Conference of African Ministers Responsible for the Development and Utilization of Mineral and Energy Resources in Africa (Mining Sector)” was presented. The focus on the presentation was on the expressed objective of the Ministerial Conference to strengthen cooperation in the development and utilization of the mineral and energy resources in Africa and specifically the Declaration and the two sets of Recommendations adopted.
With the foregoing as the background, the degree of Implementation by ECA in cooperation with others was discussed through a brief presentation of the activities undertaken, including the distribution of the report of the Conference. The substantive activities were classified in the following categories:

Harmonization and promotion of cooperation in the elaboration and implementation of mineral resources development policy and strategy in Africa
Promotion of investments in the African mining sector
Protection of environment, promotion of small-scale mining, improvement of the working conditions and women involvement in mining
Regarding the promotion of cooperation, actions taken included evaluation of institutional frameworks for cooperation, support to existing sub-regional programmes such as the programme of the SADC – MCU, assistance in the development of common programmes of cooperation i.e. with UEMOA, support to specialised institutions such as SEAMIC. These activities resulted in reinforced partnerships i.e. with the SADC-MCU, the SEAMIC and the UEMOA.
For the promotion of investments in the African mining, the Outputs were in different forms including Studies, meetings of Experts, participation in various mining Fora, Advisory and Technical assistance services. In particular, investment promotion activities included the joint MIGA/ECA 1998 conference in Marrakech, EX-IM bank Meeting in Guinea 1998, PROMIN in Burkina Faso in 1998 and the INDABA Meeting in South Africa in 1999.
In the area of the activities related to the small-scale mining, the environment issues, the working conditions and women in mining the activities included a study and the attendance and contribution to the Tripartite meeting of the ILO on social and labour issues in small-scale mining, and the workshop in Entrepreneurship development Among Women in Mining in SADC.
Emphasis in the final section of the presentation was laid on the importance of the recommended actions of the Second Conference of Durban which implementation need to be expedited by all stakeholders. ECA 2000-2001 work programme in the mineral and energy sectors will be based mainly on these recommendations.

II. Energy
The Secretariat introduced Document ECA/RCID/065/99 entitled “Report to the First Committee on Natural Resources and Science and Technology on the Implementation of the Recommendations of the Second Conference of African Ministers Responsible for the Development and Utlization of Mineral and Energy Resources: Energy Subsector”. The paper highlighted the Durban Declaration on subregional and regional cooperation for the development and efficient utilization of mineral and energy resources and the recommendations adopted by the Second Conference of African Ministers responsible for the development and utilization of mineral and energy resources held in Durban, South Africa from 21-22 November 1997.
The report revisited the main recommendations of the Durban Conference regarding the energy sector and activities conducted in their implementation by member States, subregional economic communities (RECs), ECA and other subregional, regional and/or international institutions, and presented them under the following sub-themes:
(i) Mechanisms for harmonizing and promoting effective cooperation for energy development programmes in Africa; and
(ii) Modalities for promoting increased finance and investment flow into the African energy sector.
Most of the recommendations adopted at the Durban Conference were principally targeted at member States who had the duty to implement them. During the biennium 1998-1999, ECA has incorporated in its programme of work the follow up of activities conducted at the national, subregional and regional levels in the implementation of these recommendations.
To this effect, ECA has sponsored an Expert Group Meeting in Lome, Togo in July 1998 to review the study on the “Interconnection of electrical grids in West Africa” as a means of assisting subregional economic communities (RECs) in the
formulation and harmonization of energy programmes.
The ECA Secretariat was also requested to coordinate the activity related to the recommendation on the establishment of database covering energy potential, development and utilization. Data collection and management will be improved through networking with the ECA Subregional Development Centres (SRDCs) which are the operational arms of the Commission at the country and subregional levels.
This activity will be implemented during the the biennium 2000-2001, once the output on the review of projection models for Africa’s energy and power demand and supply is implemented and when the ADB’s energy planning tools are operationalized in the West African Economic and Monetary Union (UEMOA) and the World Energy Council (WEC) Africa Energy Information System (AEIS) is developed.
The ECA has participated in the OAU/AEC Inter-agency meeting on the establishment of the African Energy Commission (AFREC); the meeting came up with concrete proposals on the structure, mandate, initial activities and outputs, as well as its membership, partnership and governing bodies of the Commission.
In its programme of work for the biennium 1998-1999, the ECA is also required to undertake a pre-feasibility study on “Central African subregional integrated energy and power development and connectivity” as a means of assisting member S
tates in the identification of energy projects that can promote regional cooperation and integration.
In strengthening partnership with other regional and international institutions, ECA participated in and contributed to the two meetings organized by the World Energy Council in the implementation of its Africa Regional Programme; the expert group meeting held in Cairo, Egypt in February 1998 on “Transfrontier Energy Cooperation in Africa; and the Africa Regional Programme Workshop held in Gaborone, Botswana in July 1999 on “Information: the Questfor Africa’s Energy Data Optimization with particular reference to Rural Energy and Energy Efficiency”.
The ECA has organized two ad hoc expert group meeting to address the issue of creating the enabling environment for the participation of the private sector in financing mining and energy projects; namely:
(i) Policy, legal and regulatory regimes conducive to sustained investment in mineral and energy resources in Africa; Addis Ababa, Ethiopia in December 1998; and
(ii) Mobilizing capital for the development of Africa’s mineral and energy resources: Dimension of public-private partnership; Addis Ababa; Ethiopia in June 1999.
As a follow-up to the recommendation calling member States to encourage the participation of the private in the of financing energy projects, ECA has incorporated in its programme of work for the biennium 2000-2001 to produce an output on the “Framework for enhanced government-private sector cooperation for the development of energy”

III. Water Resources
A representative of ECA presented the document ECA/CNRST-1/RCID/073/99 entitled "Natural Resources Development in Africa: Issues, Challenges and Activities of ECA: Water Resources".
The document provided some basic information on water situation in Africa noting that although the continent is relatively well endowed with fresh water resources, its distribution both spatially and temporally is very uneven throughout the region. While huge amount of surface water drains away to the oceans during the wet seasons without being utilized especially from the central and southern African subregion, a large number of countries in the region suffer from persistent drought and desertification during the dry months. Africa's huge groundwater resources in the sub-Saharan region are yet to be fully developed. Rainfall rates in most North African countries are below world average resulting in slow replenishment rates of groundwater reserve in the region.
The paper then identified the main issues of concern in the water sector in Africa. These are to: (a) ensure sustainable development and management of water resources, (b) maximize water conservation measures, (c) enhance efficiency in water-use, (d) develop sectoral capacities and capabilities at national and subregional levels, and (e) promote regional and subregional cooperation for integrated development of shared water resources in the continent. The paper also identified the immediate challenges facing African countries in this sector. These are to: (a) provide adequate water for agriculture and irrigation to ensure food security and food self-sufficiency, (b) provide safe drinking water and adequate sanitation to its ever-increasing population especially in the rural areas, (c) provide water for mining and manufacturing industries, (d) develop hydro potential for energy requirements, and (e) ensure equitable share of sharedwater resources to avoid potential inter-country conflicts.
The paper then elaborated on the objectives and strategies of ECA in assisting the member States and their IGOs in addressing these issues and facing these challenges. ECA strategies in this sector include assistance in sectoral policy formulation and implementation, serving as a clearing house for data base establishment, processing and dissemination, preparation of reports and studies on topical issues, provision of advisory services and technical assistance, promotion of subregional and regional cooperation for shared water resources by using ECA's convening mandates to provide fora for intercountry/interagency negotiation/cooperation, assistance in enhancing capacity building through organizing seminars/workshops etc. and forging partnership with other UN agencies and ESAs to enhance impact of their sectoral activities on the African countries.
The paper elaborated on specific sectoral activities that ECA carried out in recent years. These included preparation of reports on large scale water transfer projects, large and small scale irrigation, economic aspects of water and sanitation in Africa, trans-boundary water development in Africa, an annual information bulletin on water activities. Other publications were Strategic Issues of Freshwater Management in Africa (1998) Integrated Water Resources Managent – Issues and Options ( 1998) and Integrated Water Resources Management in Africa – Issues and Options in Selected Countries in Africa(1999) which covered a synthesis of case studies on Egypt, Ethiopia, Ghana, Lesotho and Chad, a