From United Nations Economic
Commission for Africa
Economic Report on Africa 2008
Africa and the Monterrey Consensus:
Tracking Performance and Progress
Front
Matter
Overview
This report is organized into two parts. The first part comprises three chapters
that review the main developments in the world economy (chapter 1),
recent economic performance and growth prospects in Africa (chapter 2),
and major global development challenges for Africa (chapter 3).
The second part contains three chapters
that discuss Africa’s progress in meeting the goals of the Monterrey Consensus
(chapter 4), the results of the ECA survey on African policymakers’ views on the
implementation of the Monterrey Consensus (chapter 5), and the way forward (chapter 6).
Part 1: Recent Economic Trends and Prospects for 2008
Chapter 1 -
Developments in the
World Economy and Implications for Africa
In 2007, world economic growth slowed to 3.7 per cent from 3.9 per cent in 2006.
High prices for oil and other inputs combined with some turbulence in financial markets
have contributed to this slowdown. Globally, growth rates were highest in the Commonwealth of Independent States (CIS)
as well as in East Asia, with rates above 8 per cent. Growth in developing countries declined only
slightly from 7.0 per cent in 2006 to 6.9 per cent in 2007. Africa has maintained the strong
growth momentum of the last few years and achieved a 5.8 per cent growth rate in 2007,
up from 5.7 per cent in 2006 and 5.2 per cent in 2005.
For 2008, world growth is projected to be around 3.4 per cent.
Chapter 2 -
Growth and Social
Development in Africa in 2007 and Prospects for 2008
Africa has maintained the strong growth momentum of the last few years
and achieved a 5.8 per cent growth rate in 2007, up from 5.7 per cent
in 2006 and 5.2 per cent in 2005.1 As in previous years, the growth
performance in 2007 was driven mainly by robust global demand and
high commodity prices. Other factors underpinning the sustained growth
momentum include continued consolidation of macroeconomic stability
and improving macroeconomic management, greater commitment to economic
reforms, rising oil production in a number of countries, increased
private capital flows, debt relief and increasing non-fuel exports.
Africa has also witnessed a decline in political conflicts and wars,
especially in West and Central Africa, though peace remains fragile
in some parts of the continent.
Chapter 3 - Development Challenges
for Africa in 2007
This chapter discusses two important global challenges facing Africa:
issues in international trade and challenges in accelerating progress
towards reaching the MDGs. The new major development in the area of
international trade is the launch of the Aid for Trade (AfT) initiative
and the regional review, which was organized jointly by ECA, AfDB,
and World Trade Organization (WTO).
On the MDG front, progress is still slow but commitment is high
both at the national level and among international development partners.
This has been clearly affirmed in various high-level forums, including the
recent meeting of African Ministers of Finance on
Development Financing, held in Accra, Ghana in May 2007.
Part 2: The Monterrey Consensus: Progress,
Challenges and Way Forward
Chapter 4 -
Assessing Progress in
Meeting the Goals of the Monterrey Consensus
The Monterrey Consensus adopted by Heads of State and Government in March 2002
has emerged as the key framework for discussions on development finance by
both developed and developing countries. In Africa, the adoption of the Consensus
was seen as an important step in scaling up efforts to mobilize domestic and external
resources for growth and poverty reduction.
It is now five years since the Consensus was adopted and the key question on
the minds of African policymakers is the extent to which the laudable objectives
have been achieved in the six core areas, namely:
Mobilizing domestic financial resources for development;
Mobilizing international resources for development;
Promoting international trade as an engine of development;
Increasing international financial and technical cooperation for develop
ment;
External debt relief and sustainability; and
Addressing systemic issues.
Chapter 5 -
African Perspectives
and Views on the Monterrey Consensus
Within the international community, there is the general feeling and concern
that very limited progress has been made in honouring the commitments and hence,
meeting the key goals of the Monterrey Consensus in the six core areas.
G-8 leaders acknowledged these concerns in their 2006 Summit in St Petersburg
as well as in the Heiligendamn Summit held in 2007. It was also the main reason
for their decision to launch the Africa Progress Panel (APP) in April 2007 with
the objective of working with African countries and their development partners
to ensure the delivery of promises made to the continent.
The concern about low delivery on promises has also led African governments
to take the lead in monitoring the implementation of commitments by donors through
an annual African Ministerial Conference on Financing for Development. The first
Conference was held in Abuja, Nigeria, 20-22 May 2006 and the second was held in
Accra, Ghana, 30-31 May 2007. Furthermore, African CSOs such as African Monitor
have also set up their own mechanisms for monitoring financing development
commitments, delivery and impact at the grassroots.
Chapter 6 -
The Way Forward
Africa’s overall economic performance has improved since adoption of the Monterrey
Consensus in 2002. However, this has not translated adequately into progress with
poverty reduction, the ultimate objective. Africa, particularly Africa excluding
NA, is still the region with the highest percentage of people living
in extreme poverty and deprivation.
The 2007 Report on the MDGs published by the United Nations indicates
that countries in the continent have not made sufficient progress in reducing poverty.
The report stresses that if African countries are to meet the MDG target of halving poverty
by 2015, they have to double and scale up their recent successes.
The implementation of the Monterrey Consensus is vital to accelerating progress in meeting
the MDGs in Africa. Available evidence from both published macroeconomic
data and the ECA Survey of African Policymakers indicate that significant progress has been
made in the area of debt relief and sustainability. In other areas of the Consensus, progress
remains very limited.
The Survey of African Policymakers identified key challenges and
constraints inhibiting implementation of the Monterrey
Consensus. At the national level, poor governance, corruption, and the lack of
credible institutions were mentioned by many respondents as challenges to be
addressed in order to achieve the objectives of the Monterrey Consensus. Weak governance
and institutions make it difficult to mobilize domestic resources and also increase
the country risk premium, thereby militating against efforts to mobilize external resources.
In addition, the inability to enforce laws creates insecurity and makes it difficult for firms
to invest and operate in Africa. There is need for an improved investment climate as well as
policies and strategies that are better able to attract FDI and mobilize domestic resources.
Questionnaire
| African
growth fails to dent poverty, UN says |
Financial
Times
|
| Africa
records 5.8 percent growth, faces challenges ahead: report |
TODAYonline
|
| Africa's
economies to grow 6.2 percent in 2008 |
TradingMarkets
|
|
African
Economies May Grow on Average 6.2% in 2008, Report Says
|
Bloomberg.com
|
| UN
panel reports poor progress in financing Africa's development |
Xinhua
|
| Africa's
economies grew 5.8 per cent in 2007: U.N. |
Report on
Business
|
| Africa
economies grow by average 5.8 pct in 2007 |
Yahoo!
Malaysia News
|
| African
profits no benefit to the poor |
Daily
Dispatch Online
|
|
Press
Conference to Launch 2008 Edition of ‘Economic Report on Africa'
|
UN-News
|
| Africa
economic growth still strong |
South Africa
- The Good News
|
|
UN
report sees Africa economic growth at 5.8 pct ( Africa )
|
Reuters
|
| UN
Panel Reports Poor Progress In Financing Africa 's Development |
WORLD BANK
|
|
Strong
African Growth Continues, Says Report
|
The Namibian
|
|
A
Week in the Horn- 04/04/2008
|
Ethiopia
|
|
U.N.
report shows African economic growth is ‘strong' but extreme
poverty remains
|
Impunity
Watch Africa
|
| UN
Economic Report for Africa Cites Major Challenges Ahead |
NNN-ZANIS
|
| Africa
records high growth rate in 2007 still to remain high in 2008:
Report |
The
Ethiopia News Agency
|
| African
economies should continue strong growth in 2008 |
Trends
Capital News Agency
|
| Africa
: Economic Growth Still Strong But Development and Aid Lag - UN
Report |
All Africa
|
| Africa
recorded a high growth rate in 2007 and growth is projected to
remain high in 2008, according to ECA |
WordPress
|
| Good
prospects for Africa’s economic development |
Ultimate
Media
|
| ECA
forecasts high growth rate for Africa in 2008 |
Nigerian
Tribune
|
| Strong
African growth continues, says report |
The Namibian
|
| Africa
achieves marginal economic growth in 2007 |
PANA
|
| ECA:
High Growth in Africa in 2007; growth projected to remain high in
2008 |
End Poverty
by 2015
|
| |
|
| Media
Coverage in French |
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|
6,2%
de croissance moyenne en afrique pour 2008
|
Malango
Actualité
|
|
La
croissance économique de l'Afrique excédera 6% en 2008, selon
l'Onu
|
Destin de
l'Afrique
|
| La
croissance économique de l'Afrique atteindra 6,2% cette année |
Xinhua
|
| Le
Maroc, parmi les 50 destinations les mieux placées en termes
d'entrées et de recettes touristiques dans le monde (Rapport) |
Maghreb
Arabe Presse
|
| L'Afrique
conservera une forte croissance économique en 2008 |
Tunisie
Affaire
|
| La
croissance économique de l'Afrique atteindra 6,2% cette année |
Jeune
Afrique
|
| |
Copyright © Economic
Commission for Africa
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Foreword
We
are now midway between the adoption of the MDGs and the 2015 target
date and available evidence indicates that African countries will not
meet the goals if current financing trends continue. Consequently, the
international community has now focused attention on how to scale up
financing for the continent. It has been acknowledged that the
implementation of the commitments in the Monterrey Consensus is
critical to achieving this objective. Thus the theme of "Africa
and the Monterrey Consensus: Tracking Performance and Progress" was
chosen for Economic Report on Africa 2008, which is the second report
produced in collaboration between the United Nations Economic
Commission for Africa and the African Union Commission.
The evidence
on the implementation of the Monterrey Consensus suggests that
substan-tial progress has been made in a few areas, especially with
regard to debt relief. In con-trast, very limited progress has been
made in the other core areas of the Consensus. Thus, monitoring of the
commitments made by both African countries and their development
partners is essential if the objectives of the Monterrey Consensus are
to be realized. Afri-can leaders have recognised this and put in place
a mechanism to monitor progress in the implementation of their
commitments as well as those of their development partners. The recent
African Ministerial Conference on Financing for Development is a bold
step in this area. Ultimately it is only through the implementation of
these commitments that African countries and the international
community can achieve meaningful results in poverty reduction and lay
the foundation for a brighter future for the African people.
The
in-depth analysis in this report clearly indicates that while African
countries have recently embarked on a path of strong economic
performance, progress is still slow in the areas of social and human
development.
The report advocates for innovative economic strategies
to broaden the growth base and maximize the impact of growth on
poverty reduction. The report highlights key responsibilities for both
African governments and their development partners for the success of
these new strategies. The recommendations in this report provide
valuable input into the current debates on the partnership between
Africa and the interna-tional community aimed at accelerating the pace
of poverty alleviation on the continent.
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