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EDRC African Demands to the Johannesburg Summit (WSSD) OGUNLADE R DAVIDSON Director, EDRC University of Cape Town, Cape Town, South Africa Lecture at Protestant Academy , Mulheim International Network of Engineers and Scientists for Global Responsibility (INES) March 2, 2002 Energy & Development Research Centre University of Cape Town EDRC Introduction African countries have decided that the 21st century should be the millennium to transform Africa The New Partnership for Development in Africa is seen as the cornerstone for sustainable development in the continent A common African front at WSSD and call for action and commitment (NEPAD) EDRC Background of NEPAD African Renaissance – Africans in charge Started in 1998 Regional co-operation and integration as the cornerstone for economic development The Millennium African Plan (MAP) suggested by Presidents of Algeria, Nigeria and South Africa The Omega Plan suggested by President of Senegal The merger of both plans approved by OAU summit on July 11, 2001 – NEPAD Creating ways for physical and economic linkages between African countries EDRC Basics of NEPAD New African Initiative – Reducing poverty, assist African countries collectively and individually to move on sustainable development path Integrating African economies in the global economy Minimization of inconsistencies in regional agreements that overlap in scope, approach and process (SADC, ECOWAS, COMESA) National plans requesting funds from similar donors Result of these efforts: inefficiencies and very costly EDRC Goals of NEPAD Goals – to achieve and sustain average GDP growth of 7% p.a for the next 15 years Agreed International Development goals Reduction of people in extreme poverty by half in 2015 Enrollment of all primary school age children by 2015 Promotion of gender equality, women empowerment, and eliminate disparities in schools by 2005 Reduction of infant and child mortality ratios by twothirds between 1990 and 2015, and maternal mortality ratios by 75% Access for all to reproductive health services by 2015 Implement national sustainable development strategies by 2005 to improve environmental management EDRC Strategy for Achieving Sustainable Development Peace, security, democracy and political governance Economic and corporate governance Regional cooperation and integration Priority Sectors Infrastructure Information and communications technology Human development (health and human skills growth) Agriculture Diversification of production and exports, and market access Mobilizing Resources Increased savings and capital flows Debt relief Increased ODA Better management of public revenue and expenditure EDRC Plan of Action – Peace and Security Initiative Peace and Security initiative based political and social vulnerabilities Promoting long-term conditions for development and security Building the capacity of African institutions for early warning and enhancing African institutions’ capacity to prevent, manage and resolve conflict Institutionalizing commitment to the core values of the African initiative through leadership EDRC Peace Building Measures Building the capacity of African institutions for early warning and enhancing African institutions’ capacity to prevent, manage and resolve conflict Prevention, management and resolution of conflict Peacemaking, peacekeeping and peace enforcement Post-conflict reconciliation, rehabilitation and reconstruction Combating illicit proliferation of small gems, light weapons and landmines EDRC Democracy and Governance Initiative Strengthening of political and administrative framework based on principles of democracy, transparency, accountability, integrity, respect for human rights and the promotion of the rule of law Series of commitments by countries to create or consolidate basic processes and practices An undertaking by countries to take lead in supporting initiatives that foster good governance The institutionalization of commitments through the African initiative leadership to ensure that the core values of the initiative adhered to EDRC MACRO ECONOMIC TRENDS SINCE RIO Increase in private capital flows – privatization and opening of markets – social investments Decrease in ODA – target of 0.7 not achieved Rising inequality –nationally and globally – increase poverty Concentration of private investment – 80% go to 10 or more middle income countries and 1% to 48 LDCs Debt burden worsen Impacts of Structural adjustment programs EDRC SOCIAL AND POLITICAL TRENDS The changing role of government – more power to the private sector Inability of government to meet basic needs and traditional roles Deterioration of social infrastructure Growth of local associations Rise in power of civil society and NGOs Mostly focused on sustainable development and environment Development of new partnerships – government/private sector Creation of new institutions – new business leaderships EDRC OFFICIAL DEVELOPMENT ASSISTANCE FAR FROM TARGET AND GETTING WORSE Japan UN target : 0.7% of GNP Portugal Australia 1996 Ireland 1997 Canada Sweden Denmark 0 0.2 0.4 0.6 as % of GNP Source: OECD database 0.8 1 1.2 EDRC INCOME DISPARITIES AMONG GLOBAL POPULATION 100 90 82.7% 80 70 60 50 40 30 20 11.7% 10 0 2.3% 20% 20% 20% 1.9% 20% 1.4% 20% Segments of global population EDRC Threats – Increasing Poverty Globally, inequality and poverty and increased in the last 20 years In 1950, the gap between the average income in the richest and poorest country was about 35 to one, but 1992 it has increased to 72 to one People in absolute poverty is the same in 1998 is as it was in 1990, 1.2 billion Some improvements but too slow and patchy EDRC Lessons learnt from Rio It is now fully realized that the flows of private capital is far more important than the flow of foreign aid, private capital flows as a percentage of GDP fell from 4,3% in the 1970s to 1.5% in the 1990s Countries on preferential trade with EU or USA have done badly Economic growth do not necessarily mean improvement in social services Countries that have been integrated in the world economy (East Asia) have increased per capita income, wealth and reduced poverty EDRC Threats - Debt Burden or Relief IMF and World Bank have rejected calls by Canada and some countries for moratorium on debt HIPC programme is slow and largely ineffective, loads of conditions that end up derailing the local capacities Linking peace with debt relief has not been helpful EDRC Threat -Globalization Globalization, a concept that go back centuries, trade empires within and across continents, but in the 1930 depression made nations become protective and it came back after World War 11 Result of globisation has led to a drop of the world’s poorest from 2.3% to 1.4% within the 1990s TNCs and MNCs are now more powerful and influential than democratically elected governments – shareholders interests are more important than customers Merging of small mand medium businesses Mega-profits and market place supremacy more important than environmental and social interests EDRC THANK YOU ALL FOR LISTENING EDRC