admindone; the road ahead is long.
But we have made headway on infant mortality, on HIV and Aids, on getting millions of kids of both genders into school. Yes, many countries still need much foreign assistance, but many more are also accessing capital markets, increasing significantly their domestic revenues. In short, Africa and her people are increasingly in charge of their development effort. It is important to bear these facts in mind as we grope for the future of international development.
Let me begin by pointing out that many of us have participated in the discussions on the aid architecture culminating in Busan. I think Busan was a watershed in many ways. It helped clarify the way forward, taking account of the new global economic structures, the multiplicity of actors, traditional, so-called new donors, philanthropy and new forms of finance. It spelled out the potential and fall-backs of “competition” among actors, old and new. It redefined the real question around additionality.
And above all, it underscored the critical nature of ownership by low-income countries for their future development. In short, the basics of what could constitute “the best practices” are in place.
To contextualise that future relationship between low income, emerging nations and rich countries for global prosperity, I have three points to make.
First, as we all figure out how to restore global growth and prosperity, attending to issues of development in low-income countries cannot be a footnote, a peripheral issue to be addressed once the more immediate issues arising from the financial crisis have been addressed. To the contrary, I want to suggest it is part and parcel of bringing back global growth and prosperity. Low-income countries are part of the global solution.
And you will not be surprised to hear me say that Africa and her billion people are an opportunity.
Second, bringing about that collective solution must be anchored on growth, trade and investment. ODA can only now be understood as contributing to that outcome, stimulating growth drivers and removing investment bottlenecks. I want to argue that together by addressing a number of remaining bottlenecks we can bring about that outcome. In the case of Africa those are: The infrastructure gap — ending Africa’s balkanisation and fragmentation — a colonial inheritance; promoting greater stability, strong institutions and diminishing risks for investment; promoting the private sector and skills and attending to specific, short-term, temporary problems of fragile states and those coming out of conflicts.
Thirdly, I want to posit that addressing issues of inclusion, inequalities and ecological sustainability seems now an issue which must come to the centre of development, and this is true not just in low-income countries but the world over.
Development must not be a footnote
Let me take the first point. Today in rich countries economics and politics is much focused on the “national,” on first of all “solving our problems” in the context of austerity. I will avoid entering the debate as to whether the policy of synchronised austerity at a time of weak growth pulses such as this is the right path. I only want to point out that in the same way as emerging markets have saved the day in these troubled times, Africa is the low-hanging fruit.
Growth, trade and investments are the answers
To my second point, after half a century of relationships largely based on aid there is no disagreement that getting the recipient countries to the point of graduation must be the ultimate goal. But countries do not get there simply by ODA alone. They get there by a constellation of factors both internal and external, from policies that spur investment, to trade opportunities that are truly open, to collective action on climate change.
Between 1960 and 1990 development co-operation assumed a certain philosophy, spoken and assumed. That is why in 1990, in the wake of the Berlin Wall and the end of communism and the cold war, ODA was a major victim. With the need to fight cold war proxy battles, aid diminished and attention to low-income countries declined.
Dr Donald Kaberuka is the President, African Development Bank Group.
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