the sources and methods of finance? How can Africans be more rapidly integrated into industrial management? What, in your experience, are the main obstaoles to industrial development in Africa? Only in a Conference of this kind, I think; can such matters be thoroughly ex
plored.
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What do I expect to emerge from our deliberations? First of all, I hope to get answers to some of these questions in a free and frank exchange of views. In these discussions I should like you to pay particular attention to the problem of establishing in Africa insti tutions or fires rfhich can give competent teclinioal advice to would-be industrialists in the region. At present, private individuals or governments who have the initiative and the imagination to want to set up industrial enterprises, and who may have the o&pital to finance them, either have no access at all to neutral and reliable consultant advice or else have to procure such advice from overseas at costs which put them at a competitive disadvantage from the beginning of their business.
Much of the advice of visiting consultants lacks the necessary knowledge of the looal baokground. Information and experience gained in dealing with successive industrial projects in the region does not build up cumulatively. And Africans themselves have no opportunity of gaining competence in this most important aspect of the process of economic development, namely, the design, the engineering and the economic assess ment of specific industrial projects* Secondly3 I hope to establish the role which the ECA should play in this development era which we are now entering. In this context I will make certain proposals for the
evolution of institutional machinery which will enable ECA to continue its role as regional catalyst and investment promoter. I most earnestly hope that the institutional arrangements I am going to propose will commend themselves to you and, through you, to your Governments.
Finally, I hope that this Conference will mark the beginning of a dynamic and purposeful partnership between the Governments of Afrioa, ECA, the African Development Bank, and the developed countries, and
that henceforth we will be partners in this challenging task.
Gentlemen, in the name of the Secretary-General of the United Nations, I welcome you and I wish this meeting every success.
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VII
STATSMiOT BY MR. R.K.A. GAEDIHER,
JiXECQTIVE SECRETARY OF THE ECONOMIC COMMISSION FOR AFRICA
PROPOSALS FOR KITURE ACTION
In the past few days you have discussed various ways of encourag ing and finanoing industrial development in Africa. You have stressed the gains flowing from investment initiated "by men with experience of industry and finance. You have discussed the mutually acceptable oon-ditions for such investments, and you have examined briefly some of the many opportunities which are being identified in Africa,
It now falls to me to suggest what, I believe, could be done towards fostering the conditions which, you have agreed are fundamental to the creation of a favourable investment climate. One theme which has pervaded the discussions is that if African States are to take advantage of the resources of capital and expertise available, they must form themselves into larger economic groupings. Market size and a strengthening of the foreign exchange position are cruoial in attract ing investment.
The great problem, then3is to bring such mutually advantageous co operation to reality. This will not be easy. The countries of Africa are still, quite naturally, preoccupied with building up a sense of national identity. Considering.that international co-operation, even among developed and sophisticated countries tends to be bogged down by considerations of national interest and national policy, one can hardly find fault with African countries for lagging behind in efforts towards achieving fruitful economic co-operation in Africa.
Yet, the smaller countries in Africa cannot hope in isolation to achieve the economies of scale which are necessary to ensure real economic growth. Even the larger nations must join together if they are to gather the fruits of modern technology. There is a minimum size for many of the essential tools of modern production; and that minimum is frequently larger than the size of most national markets in Africa.
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Inevitably the Conference poses the questions what next? We are all agreed that the sub-regional approach is the best if not the only realistic approach which offers any hope of rapid economic advancement.
This means combining the market strength of a number of independent nations which make up natural economic units. But what can Afrioans do about it? And what can the participants from the industrialized coun tries outside Africa do? I would like to suggest three steps that could be taken.
I. Industrial Information and Promotion Centres
ECA can approach the countries of Africa and suggest that they join in establishing multinational industrial information and promotion centres*
It is not possible to lay down an exact blueprint for the centres at this stage. The African Governments will wish to discuss this proposal and suggestions from the developed countries are, of course, welcome.
However, the broad outlines of the functions of the centres seem' clear, for they spring directly from the evidence we have been considering this week.
In order to sustain the momentum generated for furthering industrial ization efforts in Africa as a whole, it has been suggested that there is need for machinery: