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Theme objectives • To discuss the concept of governance in Africa

GOVERNANCE AND DEVELOPMENT IN AFRICA

• Discuss the following issues  Democratic transitions

Week 3

 Political inclusiveness  Voice and accountability  Economic management

• Discuss some major challenges to good governance in

Africa

Background

Background…..(2)

Over the decade and recently, governance has become a

• This is an effort to steer the African continent on a path of

key concept in the international development debate and policy discourse.  There has a historical record of bad governance in Africa, Improving the governance environment has been given a

major focal point

sustainable development, • Which should embrace good governance and success

with  consolidation of peace,  security, and  Political stability.

New Partnership for Africa’s Development (NEPAD) – Is an initiative that represents the latest attempt by African leaders

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Background…(3)

Key Focal Point for Governance

The capable state deals head on with corruption, which  impedes development and  minimizes the ability of governments to reduce poverty.

• NEPAD suggest the following keys for

 The Capable State builds an enabling environment for

the private sector to generate economic growth,

sustainable development: proper adherence to good political, economic, and corporate governance.

jobs and income.

 At the core of this is political and policy stability and a fair and consistent application of the rule of law

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Introduction

Definition of Governance

 The capable state creates an enabling political and legal environment for

• Definition: • We define Governance as actions that has to do with the manner in which responsibility is discharged.

economic growth and promotes the equitable distribution of the fruits of growth.  But growth must also be coupled with policies that deliberately attack  poverty  promote education,  health, and  social safety nets.

• Such a responsibility may be acquired through • election;

 This requires  sound macro-economic management,  institutional reform, and  investment in human resources development.

• appointment or delegation in the public domain or in the area of

commerce - corporate governance. • Therefore, we say that Good governance would mean a condition

 Sustained poverty reduction results when growth is equitable.

whereby such responsibility is satisfied in  And the best way to achieve that is by building strong forms of democratic

governance at all levels.

• an effective, • transparent, and • accountable manner

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Good Governance

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Good Governance….

 Good governance entails the existence of efficient and accountable

institutions:

• It has been demonstrated that good governance can be

positively correlated with the achievement of better growth rates, and

 Political,  Judicial,

• particularly through the building of institutions in support of

markets.

 Administrative,  Economic,

• Recent empirical analysis suggests a positive correlation

 Corporate

between

Rules that will  promote development,  protects human rights,  respects the rule of law, and  ensures that people are free to participate in, and be heard on, decisions that

affect their lives.

 democratic governance and the levels of income,  investment,  human capital,  economic liberalization, and  distributive income growth in society.

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Quotes on Good governance…  Kofi Anan-Former UN Secretary General said: “good governance is perhaps the single most important factor in eradicating poverty and promoting development”  And a former Kenyan Vice-President also noted that “good

political and economic governance underpins sustainable development”.

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New partnership for African’s Development - NEPAD  Emphasize is placed on • democracy, • respect for human rights, • peace, and • good governance  Principles here is to contribute to the strengthening of the

 African leaders have recognized the prominent importance of

good governance for achieving sustainable development  They have set out principles pertaining to the strengthening

of democracy and political governance as well as economic and corporate governance (NEPAD, 2003).

political and administrative framework of African countries  If this is the case, why do we continue to see negation in

development and circles of poverty in SSA?

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NEPAD framework document

Institution Performance

• The institutional reforms to strengthen political

• In post-independence Africa, African leaders themselves are

pointing to the shortcomings of the institutional structure over which they preside directly and/or have much say.

governance in Africa will need to focus on: 1) 2) 3) 4) 5)

the administrative and civil services; the strengthening of parliamentary oversight; the promotion of participatory decision-making; the adoption of effective measures to combat corruption and embezzlement; and the undertaking of judicial reforms.

• Institutions, and public institutions in particular, have been a

failure in Africa. • Many of these institutions have been captured by the elite to

serve narrow personal interests. • The resultant effect has been the lack of the ability of the state

to provide the requisite institutional framework to support good governance.

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Institution performance…..

Four Positive trends in Africa

• In many African countries, both the public and private

 Democratic transitions,

sectors do not operate according to widely accepted rules that are transparent and enforced by accountable institutions, Why? • We need to explore this further

Political inclusiveness, Voice and accountability, Economic management.

Democratic Transitions in Africa

Democratic Transitions in Africa…(2)

Significant strides have been made in many African

In 2004, Benin, Ghana, Kenya, Madagascar, Senegal,

countries, evolving from authoritarian or military regimes to more democratic dispensations. Where state institutions and processes are gradually

being reconstructed to promote the values of good governance.

and Zambia, incumbent regimes have all been defeated in multi-party elections. Last year, in Kenya, Madagascar, Ivory Coast, year

before that Zimbabwe, there has been disputed elections which led to formation of multi-party government,

Indeed, elections have become the only acceptable basis

for choosing and alternating leadership.

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Democratic Transitions in Africa…(3)

Political inclusiveness

Constitutions are being rewritten all over Africa, involving widespread

Nigeria has adopted the principle, which is enshrined in

consultation with civil society.

the Constitution,

Examples are found in  Kenya,  Nigeria,  Zambia,  Zimbabwe and  Madagascar.

Which will be done to accommodate the country’s

• Uganda has also gone through a similar process.

Now it is more widely accepted in Africa that women’s

• Many African countries are increasingly seeking to ensure that the

diversity in all state appointments.

perspectives are needed at all levels of decision-making

executive and legislative arms of government reflect the  profile of their people in regional,  ethnic,  racial and  religious terms.

if we are to achieve our sustainable development goals

Political inclusiveness…..Gender

Political inclusiveness…

Mozambique, Namibia, South Africa, and Uganda---

Governments are monitoring their commitments and

women occupy over 25% of national parliamentary seats,

improve their policies and programs to better close the ‘gender gap.’

The South African cabinet is composed of 30% women. Countries are making their national accounts and budgets At the highest level of African governance, half of the

more gender sensitive with a

Commissioners of the African Union (AU) are women. view to aligning public expenditures with pro-poor--and pro-women-

Questions for discussion: 1. In your own opinion, is this a good idea? 2. What are the benefits of having women involved in politics?

-objectives.

Political inclusiveness and the Youth

Voice and Accountability

The youth are still marginalized, • both in terms of formal participation in politics and in influencing public policy in vital areas such as on

Avenues are being created to allow citizens to participate

 HIV/AIDS,  education, and  job creation.

On average around 10 million new entrants come into Africa’s

labor market each year Many of these are young people, the majority in rural areas. Solutions: • To make agriculture an attractive employment option for our youth, • To equip them educationally to be entrepreneurs, and • To create an environment for micro-enterprise to flourish.

in the political process and express their demands, without fear of reprisal. This is making the government more responsive to its

constituents. The process of democratization in Africa has induced the explosive growth of civil society groups who have emerged to promote and defend various interests.

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Political inclusiveness

Corruption in Africa

The media is now widely acknowledged across the continent

 Other countries have established independent Auditor-

• to have an important role to play as a public watchdog in exposing

corruption and checking abuses of power.

General offices,  charged with enforcing leadership codes of conduct,

The media has been prominent in defending • human rights and upholding democratic transparency through the effective monitoring of elections. Increasingly in Africa, governments are also putting into

operation mechanisms and processes to check Executive power.  For example significant initiatives, are the creations of

watchdog agencies like  the Ombudsman and Inspector or Minister of Governance in some African countries

 investigating decisions that might involve fraud, and  generally promoting good governance in the country.

But there are efforts on the ground to deal effectively with

these critical challenges to good governance. As an example, several governments have established

Anti-corruption commissions- ACC.

Corruption in Africa….(2)

Better Economic Governance

 Corruption flourishes in Africa because most of the regulatory

This focuses on public financial management and

institutions are • still weak, • lack autonomy, or • are shady themselves.

Many people deem watchdog institutions to be totally controlled by

the Executive branch.  People believe that, ‘‘big money’’ corruption flourishes in Africa due

to deals struck in Paris, DC, or in Houston, London, Brussels or Zurich, How trues is this statement?

accountability Statistics shows that more countries are running smaller

deficits, meeting their targets for:  revenue mobilization,  managing their tax systems more effectively,  improving fiscal transparency, and

It is believed that these deals enrich  a few Africans and their western partners,

 creating institutions and arrangements for better auditing of public

funds.

 but cheat millions of Africans out of the fruits of the continent’s resources, and

particularly its oil.

Better Economic governance…(2)

Policy Performance Stance

 On public expenditures, • governments have declared a war on poverty and put policies in place, • but tangible results have still eluded them.

The Expanded Policy Stance Index, featured in Annual

 Insufficient resource allocation,

Economic Report on Africa measures  policy performance in macroeconomics,  poverty reduction, and  institution building

 poor targeting,  inefficiencies in program implementation, and lack of fiscal transparency are to blame.

The five worst performers according to these indices were

either;  in conflict, or recovering from recent conflict, and  consumed by considerable debt and

• Most African countries are channeling a greater proportion

 political tensions

of their GDP to social services as compared to the military.

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Policy performance Stance….(2)

Top performers…

The top performers, are well-managed with solid reform

These are countries that have healthier institutions of policy analysis and coordination and more competent civil services.

agendas and a record of political stability and good governance. The top five: • Botswana, • South Africa, • Mauritius, • Namibia, and • Tunisia These countries have maintained sound economic

 Pro-poor policies and targeting are more effective.

• And laws and regulations are more predictable and

transparent and applied more uniformly.

fundamentals with • • • •

lower foreign debt, Lower budget deficits, inflation, and interest rates.

Corporate governance in Africa

Corporate governance in Africa….(2)

 African countries recognizes the need to promote the

 Targeting the informal sector so that it can become part of the

development of the private sector.  They accept that the public sector alone is unlikely to mobilize

the resources required for economic development,  They know that foreign direct investments (FDIs) will play a

decisive role in this process

formal sector,  Expanding and improving infrastructure facilities  We should take note that, despite these measures and an

increase in the conviction of governments, The overall environment is still not yet conducive enough to

attract foreign investment, Why? Measures taken by African countries in this area are; • granting tax and other incentives, • creating institutions to facilitate the establishment and operation of

The procedures and costs of starting and operating

businesses are still cumbersome and costly

businesses.

Corporate governance in Africa…(3)

Blueprint for Capital Flows to Africa

 World Bank study in 2006,  Mentioned that it takes an average of about 4 days to satisfy the regulatory requirements to start a business in North America,

 The focal point should be on:  Trade liberalization,  Capacity building,  Debt,  Development assistance,  Privatization, and  Infrastructure development

 While in Africa it takes about nearly 70 days, or 17 times as long.  Is this a good thing?

 Investment flows to Africa, especially foreign direct investment, lag behind

investments in other regions of the developing world, because of the red tape (bureaucracies)!  People going through all the paper works, trying to identify loopholes for siphoning

funds!  The continent attracts less than 1% of global capital flows and accounts for less

than 1% of world trade – tiny value!  For interest sake, the stock of capital flight from Sub-Saharan Africa is estimated

 The US through USAID’s AGOA plan and OECD

continue to push for improvement in Africa’s economic conditions and the climate for private sector investment.

at $148 billion or 90 percent of the combined GDP.

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Way forward

Way forward….(2)

 In order to continue with the reform process,  governments and citizens have to believe that it is worthwhile and yields benefits.

The capacity and autonomy of local governments, therefore, has to be

given due consideration in the governance agenda of African countries,  Without tangible results, the citizenry is likely to be frustrated, resentful and ‘‘fatigued’’ by so-called

democracy.

• because they are nearest to the rural communities where over 73% - 80% of Africa’s  We saw and witnessed the regime change in North Africa

 Whether it is in the process of going to court,  paying a bill,  opening a business,  interacting with a Member of Parliament,  or casting a vote,

population lives.

 Decentralized structure, community interests can be far better fielded. Here we should note that, Capacity building is about identifying

concrete gaps in the institutions and organizations that work together

 People want to see improvements in efficiency, transparency, and accountability.

 There is now a strong popular perception in Africa that upgrades in the delivery of  the basics of education,  health, sanitation,  housing,  electricity, and  water

 to promote better outcomes, and providing the necessary policy and resources for

enhancement.

Identifying deficits at all levels of government will be critical to getting the

results that the African people are hoping for.

 They are seen as the major dividends of democracy and good governance.

Way forward…(3)

Challenges for Africa

 The revitalized Commission of the African Union (AU), and its priority of regional

Collapsed states

integration is vital in that regard.  It provides a viable framework for  addressing the challenges of growing African economies,  protecting the environment,  utilizing our natural resources,  fighting disease, and  resolving conflict.  Furthermore,  the New Partnership for Africa’s Development (NEPAD),  the AU, and  the prospect of a Pan-African Parliament should continue to offer new promise on better governance.

Overburdened States Nurturing Democracy Gender equity Alleviation of Poverty Management of financial and natural resources Ownership of governance reforms HIV/AIDS

 The African Union’s conflict resolution efforts in several places including Burundi,

the Democratic Republic of Congo, and Liberia.  Regional economic communities (RECs) have begun to create formal institutional

frameworks for peacekeeping - SADC in Zimbabwe, DR Congo.

Challenge for Africa

Any observations or Questions

The implementation of the policies needed to meet the

• How is good governance in the U.S?

MDGs. WTO issues on market access • How can a cotton farmer from Burkina Faso compete on the world market in the face of huge US cotton subsidies? Battle against the HIV/AIDS pandemic

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Reflection questions: 126 points In your own words, how would you define good governance?[5 point] What does NEPAD stands for?[5 points] What do you understand by term “Capable States”?[5 points] What are the tow most important aspects to consider when building an enabling environment for private sector to create jobs? [10 points] There is a positive correlation between good governance and investment, human capital. True or false. [5 points] List four focal points for NEPAD. [8 points] List five things that NEPAD Framework document focuses on in Africa. [10 points] Name the four major positive trends in Africa? [8 points] Explain what you understand by the concept of democratic transitions? [5 points] Give example of countries in which constitutions have been rewritten, and give reason why this was done? [10 points] What you do understand by the following terms

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. a. b.

12. 13. 14. 15. 16. 17.

Political inclusiveness? [5 points] Voice and accountability? [5 points]

What would you suggest are the major causes of corruption in Africa? [5 points] What measures are some countries in Africa putting in place to combat corruption? [5 points] What are the major facets for better economic governance in Africa? [10 points] What are measures suggested by African governments to lure FDIs? [5 points] What are blueprint for capital flow in Africa? [10 points] What are the major challenges for good governance in Africa? [10 points]

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