Comments to the Bank’s Strategy

By Vitalice Meja – Director Reality of Aid Africa

General comments Africa is not likely to achieve the MDGs – 2011

African ministers of finance outcome document and UNSD 2010 data shows this

Aid effectiveness issues• Issues of ownership

Within the bank – country offices and the HQ (CAS are at different stages of implementation across the countries)

Issues of ownership at national level • Alignment with country priorities and how they tap into each

other• Harmonisation - How it links up with national Join Assistance

strategies• Regional angle is very crucial and important but not fully

developed – regional initiatives such as NEPAD has been left out in the implementation of the strategy

Pillar: Competitiveness and Employment

Welcome the comments on the importance of the role of the state in this strategy – because the previous ‘minimal state’ did not serve us better – a strong developmental state could facilitate private sector development through state intervention – However• Levelling the playing field to both domestic and foreign investors

does not reflect the comparative/competitive advantage foreign investment has – there will have to discrimination the challenge is how to target them for better results

• Flexibility in the labour market regulation to promote comparativeness would not be a sound advise with regard to creation of sustainable employment and job security

• Privatisation of tertiary education as a strategy to build human capital and skills is likely to make it expensive and not reachable to the majority from the poor families. A policy mix would be required here.

Vulnerability and Resilience pillar

There is no linkage between the pillar with the competitiveness and employment pillar

This needs to move beyond handouts and safety nets to empowerments and safety nets

There will have to be different mix of instruments for access to health services. Medical insurance through monthly contributions is not attenable in a continent where unemployment ranges between 25% to 45% and half the population are poor

Vulnerability and Resilience pillar

The bank needs to assist countries to facilitate• Citizens to participate in decision-making,

public monitoring, and implementation of the national development plans and programs

• People to have opportunities to acquire assets and have access to sustainable employment

• Assist countries develop the right instruments to facilitate the achievement of the foregoing.

Foundation: Governance and capacity

Welcome the element in the strategy especially in calling for a strong developmental state that can intervene in the private sector development to promote efficiency and productivity – But - • It lacks strong linkages with the vulnerability and resilience

section• There are no reforms geared towards making the state

deliver better on safety nets but rather support PPP and create enabling environment

• There is no talk of helping the state create the enabling environment for CSOs to have democratic ownership development plans rather than the bank wanting to deal directly with CSOs directly and even so this is limited to accountability issues

Foundation: Governance and capacity

Banks intervention in this sector should be about• Putting citizens to be the primary focus for all

development agenda• Enable people’s organizations, including social

movements and civil society, to take part in the development and governance processes

• This will include initiating processes and institutions that mobilises and transforms the voices of the hundreds of million of citizens’ across the continent into meaning and relevant development agenda

Foundation: Governance and capacity

The strategy therefore needs to focus on developing strong leadership and bureaucratic and organizational capacity at the national level capable of enhancing the human capacity of their citizens to participate and own development programs

Facilitating the institutionalisation of Local and national deliberative mechanisms and processes either through an act of parliament that makes it mandatory for the State to consult with non-State actors, or by ensuring that there is an informal but institutionalized process of consultation

CSOs are facilitated to engage with the process of national development not just in monitoring but also in planning implementation and monitoring and evaluation

Financing It would be important to see the

budget allocation for each of the pillars It is not clear if the USD 25 billion is the

value of the strategy or the resources the bank has towards the strategy

The strategy will have to show how it is planning to leverage other sources of finances including domestic revenues towards this strategy

Regional integration and co-operation

It is not clear what would be the institutional framework for implementing regional infrastructural development, regional and continental bodies including ECOWAS, EAC, SADC, NEPAD, ECCAS in facilitating regional development agenda ….but more so does the bank have this mandate?

Thank you