The Compact for

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ECA-CEA
The Compact for African Recovery
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The Compact is an African Initiative

• The Compact is founded on a new way of doing
  business within Africa, linked to a transformed
  international partnership

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The Compact recognizes

• solving Africas problem is foremost task for
  Africas leaders
• At current trends Africa will not meet the
  International Development Goals by 2015

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The Compact recognises diversity of African
experiences and prospects.The Compact is based
on realistic assessment where the obstacles lie
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The MAP and Compact

• The MAP is a breakthrough initiative
• - it provides political vision and leadership

• The MAP holds out the prospects of
• African ownership of a continent-
• wide plan for African renewal

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The MAP and Compact (contd)
They are essential counterparts share the
vision and the same priority

• Compact provides implementation of
• key measures called for by the MAP

• Compact proposes new modalities for
• international partnership that will be critical
  
• to ensure MAP success

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• Foundation of the Compact is a commitment by
  African governments to put their their houses in
  order

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At the heart of the Compact
Improving Economic Performance
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To attain poverty reduction and overcome
formidable challenges
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The road to good governance is well mapped out
Good Governance
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Africa at the dawn of the 21 Century
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impressive economic progress in the 1990s but we
have not yet broken out of the vicious cycle
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Poverty is increasing
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Halving poverty by 2015
requires 7 GDP growth 33
Investment (40 for SSA)
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Improving Economic Performance
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Improving Economic Performance
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Improving Economic Performance
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Improving Economic Performance
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Improving Economic Performance
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Improving Economic Performance
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into a Virtuous cycle of
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Key Areas for joint African-International Action
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Four Major Challenges
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Overcome HIV/AIDS PandemicAfricas number one
survival issue

• African Govt
• take leadership and priority
• mobilize resources
• involve people with
• HIV/AIDS
• induce participation
• combat stigma
• reaching out to young

• International Partners
• provide grants
• - not loans
• facilitate access
• reduce cost of medicines
• fund for vaccines
• provide effective programme

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Provide Basic Health Servicescurrent 10 to
minimum 45-60/year

• African Govt
• improve efficiency of public services
• prioritize basic public health services
• adopt specific target for TB and malaria

• International Partners
• establish the principle to support essential
  health services
• provide financial support to health services and
  public programme

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Invest in Peopleincrease resources for education

• African Govt
• sustain efforts to provide universal education
• prioritize resources for education in budgets
• target to overcome the gender gap

• International Partners
• increase financial commitment to education
• establish principle of supporting basic education
  in international partnership
• mobilize a wide coalition
• support tertiary education and research

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Provide ICT and Narrow the Digital Divide

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Provide ICT and Narrow the Digital Divide

• African Govt
• invest in ICT infrastructures
• establish effective legal and regulatory systems
• utilize ICT in specific sectors education and
  health care

• International Partners
• promote existing and new ICT initiatives
• enhance G8 Dotforce
• support innovative initiatives
• forge partnership mechanism
• support infrastructure and capacity

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Enhance Research Capacities to enhance Africas
competitiveness

• Promote research for finding solutions to
  Africas problems
• Develop research institutions and networks

• Promote public policy research and partnership
• Encourage joint-African research and education
  initiatives

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Improve Key Infrastructure estimated
required investment is 18 billion/year

• Boosting investment
• provide basic hard infrastructure
• upgrade urban infra and develop rural infra
• Improving policies and management

• More efficient utilisation of shared resources -
  water and trans-border land
• Improving regional co-operation

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Accelerate Regional Integration
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Strengthen Regional Cooperation

• Key actions demand regional approach
• HIV/AIDS, peace and security, financial market
• Research and infrastructure
• Key actions to spur economic growth and poverty
  reduction are greatly facilitated by cooperation
  across the continent

• Consolidation into regional trading blocks is a
  prerequisite for development
• Africa needs more investment in regional public
  goods

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Strengthening Regional Cooperation is a prime
area for partnership

• Need to find the means of achieving greater
  economic and political unity
• First, need to build the capacity of existing
  regional and sub-regional organizations

• Need to find their modalities for harmonisation
  and co-operation

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New Forms of International Partnerships with
Africa
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Why Reforms in International Partnership ?

• Aid has had success
• but growing mutual dissatisfaction
• - a circle of high expectations grand
• promises, incomplete achievement of goals,
  
• and frustrations

• African government facing debt overhang
• Africas new generation
• - growing up with debts run by their ancestor

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What needs to be done?
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need more transparency and accountability how
can aid process promote democracy if it itself is
not transparent?
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Need longer term, stable assistance
provision assistance with a short planning
horizon is unpredictable subject to unilateral
change
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Need to simplify and harmonise aid
conditionalities
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• The test for donors will be to hold onto their
  current aid levels, while distributing their aid
  more thoughtfully.

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Therefore,
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More Aid
Rapid Debt relief
Improved Market access
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Debt Relief
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• Debt relief actions are intended to be speedy,
  but agreements and disbursements still lag

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• The goal should be a lasting exit from the debt
  problem
• commitments to not again build up unsustainable
  debts

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• A premium on grant aid
• Converting IDA into a full grant facility

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Implementing the Compact
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Here is How the Compact Would Work
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Guiding Principles
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Four Principles

• African ownership
• policies and programmes for poverty reduction
• Stable long-term resource flows
• predictability of donor support
• Transformed partnership
• peer review and performance monitoring
• Recognition of Africas diversity
• different progress in governance and economic
  management

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The Way Ahead
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Political Leadership in Africa
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Heads of State Forum (HSF)

• Symbolise and realise African ownership
• provides leadership to obtain continent-wide
  consensus and momentum
• Key mechanism for mutual accountability
• raise issues with partners, and obtain coherence
  of leadership

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Heads of State Forum (HSF)

• Establish mechanism for peer review
• review of performance on governance and economic
  management
• Address the issue of Africas diversity
• face challenges of diverse performance and
  prospects

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Commitments by International Partners
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Technical Underpinning
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Technical Underpinning Role of ECA

• ECA undertook significant initiatives
• generates dialogue, data and analysis
• operates with three key African-owned
• initiatives
• ADF, Big Table, PRSP Learning Group
• provides critical input ECAs performance
• indicators

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May we seize this moment to move towards the
Compact for African Recovery!