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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
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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)
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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
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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
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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
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Strategy for Achieving Sustainable Development
 Peace, security, democracy and political governance
 Economic and corporate governance
 Regional cooperation and integration
 Priority Sectors
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Infrastructure
Information and communications technology
Human development (health and human skills growth)
Agriculture
Diversification of production and exports, and market access
 Mobilizing Resources
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Increased savings and capital flows
Debt relief
Increased ODA
Better management of public revenue and expenditure
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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
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Peace Building Measures
 Building the capacity of African institutions for
early warning and enhancing African
institutions’ capacity to prevent, manage and
resolve conflict
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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
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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
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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
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SOCIAL AND POLITICAL TRENDS
 The changing role of government – more power to
the private sector
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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
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Mostly focused on sustainable development and environment
 Development of new partnerships –
government/private sector
 Creation of new institutions – new business
leaderships
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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
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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
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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
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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
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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
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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
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THANK YOU ALL FOR LISTENING
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