ECA prospectus 2005-2008

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Economic Commission for Africa ,,, <

E(~A Prospectus 2005 - 2008

October 2005 Addis Ababa, Ethiopia

For this and other publications, please visit the ECA web site at the following address:

http://www.uneca.org Or contact

Communication Team

Economic Commission for Africa P.O.Box 3001

Addis Ababa, Ethiopia

Tel.: 251-11-544-3098 Fax: 251-11-551-0365 E-mail: ecainfo@uneca.org

Cover photos: UNECNA. Fiorente, USAID

Table of Contents

Abbreviations and Acronyms ... v

Foreword ... vii

Part Om:: Selected Recent Accomplishments ... 1

Part Two: Priority Activities, 2005-2008 ... 5

Part Thrc~e: Strengthening Institutional Capacity Processes ... 17

Part Four: Budget, Funding and Resource Gap ... 23

List of Tables

Table 4.1: United Nations Economic Commission for Africa Summary of 2005-2008 Budget by Thematic Area (Millions of US$) ... 24

Table 4.2: Proportion of Regular Budget and Extra budgetary Funding ... 25

Table 43: Extra-budgetary Funding Commitments 2005 - 2008 (Millions of US$) ... 26

Table 4A: Summary ofXB Resource Gap (US$million) ... 27

Annex 1: United Nations Economic Commission for Africa Budget for the period 2005-2008 (Millions of US$) ... 29

List of Figures

Figure 4.1: Thematic Distribution of 2005-2008 XB Budget ... 26

ABSA ACGD ACP ADB ADF III ADF-IV AGDI AGR AISI APR APRM ARIA ATPC AU AVLIN AWDR AWICH AWR CfA CHGA CODI CSOs CT ECA ECOSOC:

EPA ePol-NET

ERA

EU FASDEV GS

HIV/AIDS HSGIC ICTs ISP IT ITCA JPOI MDGs MTEF NEPAD

Advisory Board on Statistics in Africa

African Centre for Gender and Development Asian, Caribbean and Pacific

African Development Bank

Third African Development Forum Forth African Development Forum African Gender and Development Index African Governance Report

African Information Society Initiative African Peer Review

African Peer Review Mechanism Assessing Regional Integration in Africa African Trade Policy and Research Centre African Union

African Virrual Library and Information Network African Water Development Report

African Water Information Clearing House African Women's Report

Commission for Africa

Commission on HIV/AIDS and Governance in Africa Committee on Development Information

Civil Society Organizations Communications Team

Economic Commission for Africa Economic and Social Council Economic Partnership Agreement Global e-Policy Resource Network Economic Report on Africa European Union

Forum on African Statistical Development Group of eight most industrial countries

Human Immunodeficiency Virus/ Acquired Immunodeficiecy Syndrome Heads of State and Government Implementation Committee

Information and Communication Technologies Institutional Strengthening Programme

Information Technology

Information Technology Centre for Africa Johannesburg Plan oflmplementation

Millennium Development Goals Medium Term Expendirure Framework New Partnership for Africa's Development

NICI NSAHP OECD OPEC PRS PRSP RB REC SDRA SGPRS SNA SPA SRO TF UMA UN UNAIDS UNCTAD UNDP vLAC WSIS WSSD

WTO

XB XBRMC

ECA Prospectus 2005 - 2008

National Information and Communication Infrastructure National Satellite Accounts of Household Production Organization for Economic Cooperation and Development Organization of Petroleum Exporting Countries

Poverty Reduction Strategy Poverty Reduction Strategy Papers Regular Budget

Regional Economic Community

Sustainable Development Report on Africa

Second Generation of Poverty Reduction Strategies System of National Accounts

Strategic Partnership with Africa Sub Regional Office

Trust Funds

Arab Maghreb Union United Nations

The Joint United Nations Programme on HIV/AIDS United Nations Conference on Trade and Development United Nations Development Programme

Virtual Learning Academy

World Summit on the Information Society World Summit on Sustainable Development World Trade Organization

Extrabudgetary Resources

Extra Budgetary Resource Management Committee

Foreword

Colleagues,

Since the beginning of the new millennium, the Economic Commission for Africa (ECA) has striven hard to adapt its work programme to a transformed political and institutional landscape on rhe African continent. The adoption of the Millennium Development Goals (MDGs), followed by the creation of the African Union and the New Partnership for African Development (NEPAD) have resulted in a new agenda, with specific priorities and challenges, to which the ECA has had to respond flexibly andofren at very short notice. To do so successfolly, the Commission has been forced to make bold moves to strengthen its institutional capacity and imprnve the flexibility of its operations in order to effectively anticipate developments and quickly meet the demands placed on it by the new African development agenda. 1hanks

ro your support we have been able to react very dynamically to emerging needs.

The ECA Partners forum has since its inception become an important occasion for dialogue on our pa,mership with you and a useful opportunity for discussion of our priority initiatives.

I was thcrc,fore most pleased to see that some of you agreed at the September 2005 Parmers Forum nweting to continue with the ¹'Prospectus Process1~. and through it, provide ECA wirh unearmarked funding support in the years 2006 and 2007.

In the context of the UN mandated zero-growth budget policy over recent years and the fact that over 80% of ECXs regular budget is consumed by staff costs, it is clear that the Commission's ability to assist Africa implement key elements of the regional development framework has been greatly enhanced by its success in mobilizing extra budgetary resources from partners. Looking to the foture, the importance of our partners' support can only increase in significance as ECA is now poised to help African states and rhe international community step up the momentum for the continent's "Big Push" for development that the Commission for Africa calls for, as well as for the attainment of the MDG "quielr wins" that cbe UN Millennium Project report highlights.

The 200" Prospectus therefore outlines how the Commission plans to deepen its work in prioriu areas over the nexr rl1tee years. Part One provides a brief summary of selected

ECA Propcctu; 2005 2008

accomplishments since the 2004 edition of the Prospectus. Part Two will highlight our key ongoing and planned activities during rhe period 2005-8 in response to the emerging priorities and current needs

of

African states.

In

essence, this section derails all the activities on which unearmarked funding from partners will he dishursed in the coming period. Part Three and Four focus, respectively, on the steps that have been taken towards strengthening the institution and enabling it to function more efficiently and effectively, and on the financial requirements needed to undertake our planned priority activities.

I want to take this occasion to thank each and every one of our partners who participated in the ECA Partners Forum, which took place from 22 to 23 September 2005 in Addis Ababa, for the constructive partnership dialogue we had at that meeting around the draft version of the 2005 Prospectus and for their many valuable comments and suggestions that have helped shape this final version of rhe 2005 ECA Prospectus.

As I end my tenure as Executive Secretary, I am confident that the ECA is well positioned to continue to make a significant contribution to the development of Africa. I am especially pleased at the steps taken over the past ten years to foster a strong and dynamic relationship between the Commission and its core group of partners. This partnership has been essential for all we have achieved and so l sincerely hope it will be further deepened in the years to come as the ECA strives to serve Africa better.

KY.Amoako Executive Secrerary

Part One

Selected Recent Accomplishments

Much of Africa has so far been moving at a slow pace towards the Millennium Development Goals, compared to other regions of the developing world, and the reasons for this are multiple, complex and often country-specific. However, as African Ministers of Finance, Planning and Economic Development affirmed at the 2005 ECA Conference in Abuja, "it is clear that Africa's progress rowards significantly reducing poverry and achieving the MDGs has been hampered 'Jy insufficient economic growth, and because the benefits of the growth achieved have not, for the most part, been shared broadly across society."

In

its attempt to accelerate sustainable economic growrh on the continent, and in line 'with Africa's drive to take the lead in confronting its own economic and social challenges through the African Union and NEPAD, ECA has been focusing its research, policy advocacy and capacity building initiatives on the growth-employment-poverty nexus as well as on helping member States harness the tremendous potential of trade and regional integrntion. ECA has also been addressing the enduring gender gap, a major crosscutting poverty reduction challenge, through the development of powerful new tools for measuring gender inequalitywhilst simultaneously building the capacity of African governments to effectively address the gender-specific dimensions of poverry and inequaliry.

There is widespread agreement that resource requirements for achieving the MDGs largely exceed what most African countries can generate domestically, and that foreign assistance will play ;; pivotal role in the implementation of African strntegies for promoting growth and reducing poverty, at least in the short and medium term. A key related development has been rhe paradigm shift from conditionality towards mutual accountability in the relationship between donors and recipients of aid. At the request of NEPAD's leaders, and in an effort to operationalize the commitments made ir1 the context of this new relationship,

ECA

developed a joint framework with the OECD/DAC for monitoring commitments to enhance the development effectiveness of aid. This

will

prove vital in ensuring that the major increases in aid that are needed and which development partners have agreed to invest in the region over the next ten years are effecrively utilized to deliver on the promise of the MDGs and the investments for growth in Africa.

'The following section provides a summary of selected accomplishments in the above- mentioned areas since the 2004 edition of the Prospectus. A more detailed report of ECA's activities and use of resources received from partners for the period 2003-2004 is presented in the ECA (rust Funds Report 2004.

The European Union has cited the AGO/

as

one of EGA's major contributions towards achieving the MDGs in Africa

ECA Prospectus 2005 2008

Tackling the growth-employment-poverty nexus

Extensive research conducted at ECA has led to the conclusion that pro-poor employmenr- generating growth policies will have rhe greatest impact on poverty reduction in Africa, and hence on achieving the MDG twin targets of halving the proportion of people who live on less than $1 per day and who are suffering from hunger. With millions out of work or existing in the precariousness of the informal economy, including many of the continent ·s youth, it is imperative that these pro-poor policies be mainstreamed into national Poverty Reduction Strategies. Analytical backing for this policy position is provided in the forthcoming 2005 Economic Report on Africa (ERA) which analyses trends in employment in the region and investigates various employment-enhancing strategies ro increase demand for labor, develop the quality, skills and productivity of rhe workforce, whilst improving workplace policies and conditions.

ECA also supported preparations for the African Union's Extraordinary Snmmit of Heads of State and Government on Employment and Poverty Alleviation in Africa in September 2004, where we emphasized tbe need to develop long-term, country-specific employment agendas encompassing social and structural policies whilst simultaneously addressing macroeconomic inadequacies to escape the 'stabilization trap'. Perhaps most importantly, growth and distribution should not be perceived as mutually exclusive issues, as they are really t\\10 faces of the same coin in Africa's fight against poverty and the quest to achieve the MDGs.

The deliberations of the Summit also fed directly into the proceedings of the 2005 Conference of African Ministers of Finance, Planning and Economic Development on ''.Achieving the Millennium Developmem Goals in Africa". As ECA's executive organ, its Ministerial Statement endorsed our research, stating that 'the way forward lies in accelerating broadly-snared and sustained employment-generating economic growth in the context of improved governance and strong investment in people, panicularly Africa's women who have long been excluded from full participation in our societies'.

Promoting gender equality and development

Gender is a key area in which the Commission has sought to substantially deepen its research and policy advocacy in order ro support African states in their quest to achieve the MDGs.

Cutting-edge work has been undertaken in developing the African Gender and Development Index (AGDI) and a compilation of gender profiles for African countries in order ro enhance the capacity of member States ^to effectively implement the Beijing Platform of Action, address the gender dimension of poverty, promote women's human and legal rights, and increase women's participation in decision-making.

The Commission was pleased ro note that rhe European Union specifically described the AGDI as one of ECA's major contributions towards achieving the MDGs in Africa ar rhe 2005 ECOSOC Dialogue with the Executive Secretaries of the UN Regional Commissions.

Tested in 13 countries so far, the AGDI is a composite index made up of quantitative and qualitative assessments of gender equality, empowerment and advancement. 'Ihe results of the

Part I: Selected Recent An:omplifhments

first round of tests

will

be reported in the furthcoming edition of the African Womens &port (A\X7R) and plans are underway for follow-up tests involving 15 more countries across the continent.

Unleashing Africa's trade potential and supporting its integration agenda

Trade has been a

key

driver for global growth over the last half century, yet Africa has seen its share of world trade reduce in recent years. As the Report of the Commission for Africa, Our Common Interest, highlights, Africa now needs more and fuirer trade if it is to achieve growth, poverty reduction and the MDGs. More trade means that Africa's capacity to trade has to be increased and facilitated, whilst fairer trade implies the removal of trade barriers, particularly among developed countries, through the successful completion of the Doha Round of multilateral trade negotiations.

In

the area of capacity building, and with the financial support of the Canadian Government, ECA's African Trade Policy Centre (ATPC) is offering comprehensive trade-related technical assistance and capacity building strategies to member States. Above all, it aims to equip African policy-makers with relevant knowledge and effective cools through in-depth research, training and advisory services on trade policy. In April 2004, for instance, the ATPC in collaboration with the Tunisian Government organized a Trade Training Workshop in Agriculture attended by African ministerial representatives responsible for trade negotiations and African embassies accredited to rhe WfO in Geneva. In addition ro undertaking studies on all major themes under negotiation ar the WTO, the Centre has also completed a major study on the impact of Economic Partnership Agreements (EPAs) with the European Union (El:) on the African region.

At the same time, ECA has been closely following the uneven progress of the Doha Round whilst providing continued technical support ro the African Group in Geneva through its Interregional Advisory Services Office. In March 2004 and in partnership vvith the Arab Maghreh Union (UMA) and the Government of Morocco, ECA held a meeting of Nonh African officials responsible for trade negotiations as well as representatives of civil society, the private sector and experrs from UNCTAD, UNDP and WfO. The meeting assessed the consequences of the failure of the Cancun Ministerial talks for Maghreb countries, and participants shared key experiences on multilateral trade talks. The key outcome was an agreement on working towards an improved coordination of multilateral negotiations.

Following the adoption by the WfO General Council of the so-called 'July Package', and in collaboration with the African Union, ECA also organized a High-Level Brainstorming Meeting of African Trade Negotiators and Officials in November 2004 to discuss how current negotiations can be reoriented so that the Doha Development Agenda can truly become a development round.

The Constitutive Act establishing rhe African Union defines regional integration as one of the foundations of African Unity and ECA:s research found that, indeed, progress has been made in this regard in some areas, including peace and security; mobility and in communication. In

The African Group in Geneva has made several proposals in the WTO negotiations with the help of EGA's research and analytical support

ECA Prosptaw 2005 ~ 2008

rhe area of trade fucilitation, however, progress towards the creation of harmonized integrated markets has been slow in most parts of the continent, and shortcomings in the areas of transport and infrastructure have further inhibited intra-community trade,

Jo

overcome these hurdles, and with AU/NEPAD adopting accelerated regional integration as a key objective, it is crucial that the comparative advantages of each Regional Economic Organization (REC) are optimized.

In that

conrexr, the second edition ofECA's study on Assessing Regional Integration in Africa (ARIA) is devoted to presenting a detailed analysis of the long-standing issue of multiple RECs and their overlapping mandates and memberships, proposing policy recommendations on stre.m1lining as we!! as coordinating activities to minimize duplication and save scarce resources. A joint ECN Ali committee has been established to further advance this agenda.

Enhancing Development Effectiveness through mutual accountability

The principle of mutual accountability among developed and developingworld partners for their respective commitments, responsibilities and performance in pursuit of shared development goals is a con: principle of rhe Monterrey Consensus. At the Big Table meeting in January 2003, ECA presented a proposal for a regional mechanism to monitor the commitments of Africa and its international partners in the context ofNEPAD. On the basis on this framework, and at the request of the NEPAD Heads of State and Government Implementation Committee (HSGIC) later in 2003, ECA and OECD/DAC initiated and developed joint analnical work that gave concrete expression to the notion of mutual accountability.

'Throughout 2004, we elaborated the content of rhis framework which is focused on "Action Frontiers' and on "2007 Performance Benchmarks" in a range of areas. On the African side, within the context

of

NEPAD, the review focuses on Africa's performance on the MDGs, growth in the agriculmre sector, capacity building and on accountability in improving political and economic governance. On the partner side, the review focuses on uends in the quantity and quality of official development assistance to Africa, as well as the coherence of partner policies on aid, trade, and external debt and the consistency

of

these policies with the MDGs.

The final outcome of our joint work with OECD/DAC, encapsulated in the inaugural report entirled Mutual Review of Development Effectiveness in the Context ofNEPAD, has undergone a thorough review process, including a review by rhe OECD/DAC High Level Meeting, the NEPAD Heads of State and Government Implementation Committee (HSGIC), the OECD Council, the NEPAD/OECD African Partnership Forum and our Conference of African Ministers of Finance, Planning and Economic Development, The first l\1urual Review report will be formally submitted to the ?\EPAD Heads of State and Government Implementation Committee (HSGIC) later this year. Work is now underway on approaches, data sources, and institutional partnerships required to monitor the 2007 benchmarks outlined in this inaugural report. The Report will thus provide a ready basis for rhe monitoring processes under a strengthened African Partnership Forum, as envisaged at the G8 Summit at Gleneagles in July 2005.

Part II: Priority Actitivities, 2005-2008

Part Two

Priority Activities, 2005-2008

Pursuing the logic of previous years, ECA will continue to align its pnormes with the implementation of the African Union/NEPAD agenda, as well as ensure that all its activities have a direct, immediate and tangible impact on Africa's efforts to achieve the MDGs. To this effecL and drawing on the recommendations of the Millennium Project Report to the UN Secretary General, the Commission for Africa Report, the Gleneagles G-8 Summit as well as the reaffirmation of the MDGs at the UN World Summit, ECA will strive to exploit and further stimulate the momentum for a 'Big Push' - a major scaling up - of efforts and resources to help Africa achieve the Goals. In line with the recommendations proposed in the UN Secretary General's report, In Larger Freedom, the Commission will thus seek to improve synergies with other members of the UN family and regional organisations in order ro help upscale act ion to achieve the MDGs in Africa. This is of critical importance as the activities of the UN in Africa have witnessed a significant expansion in recent years. The depth and diversity of that involvement is reflected in the fact that over 40 percent of the current portfolio of the UN's work is estimated to be in Africa. In that regard, to maximise the overall effectiveness of its work ECA must now put special emphasis on working to ensure system-wide coherence and establishing stronger links with the African Union, particularly in the areas of socio-economic development, ICTs, trade, gender, regional integration and governance capacity building.

Against that background, the following section highlights the priority activities the ECA plans

to undertake for the period 2005-2008.

Monitoring and Tracking Africa's Development Performance

Tracking development progress and performance in Africa remains a core mandate for ECA'.s research. Relying on solid analytical foundations, ECA will therefore continue to identify best practices, facilitate peer learning among African countries and develop indicators. In that context, it will publish crosscutting flagship reports in the following areas:

Econorn ~ Report on Africa (ERA)

As in previous years, ECA will continue to devote significant resources to producing the annual Economic Report on Africa (ERA), each with a thematic focus and supplemented by in-depth country case studies. Given Africa's low savings and investment rates, ERA 2006 will address

EGA plans to undertake regular comprehensive assessments of progress towards

meeting the MDGs and poverty reduction targets

ECA Prospectus 2005 - 2008

issues related to resource mobilization and outline policy recommendations for increasing resource flows within, and into the continent. Areas to be covered include promoting domestic savings mobilization; effective utilization of workers' remittances; and investment promotion.

The 2007 edition of ERA, on the other hand, will focus on the issue of enhancing public service delivery for poverty reduction with emphasis on improving healthcare and education.

In addition, ECA plans to undertake comprehensive assessments of progress towards meeting the MDGs and poverty reduction targets as part of activities to end the UN poverty decade (1996-2006); and an assessment of progress in implementing the Brussels Programme of Action in Africa, which will feed into the global mid-term review to be undertaken in 2006.

African Women's Report (AWR)

Building on the first edition of AWR, the 2001 AWR will provide further assessment of progress in achieving gender equality in the region, using an enhanced sample of25 countries.

The report will, inter alia, be based on the African Gender and Development Index (AGDI), but also evaluate the impact of the AGO! and similar tools on the ability of national experts to collect, analyze and integrate gender-disaggregated micro and macroeconomic statistics into national planning instruments. The 2007 edition of AWR will allow for more in-depth analysis of both individual indicators and of particular trends in monitoring gender policies.

In addition, ECA plans to produce two issues of the GenderNet newsletter showcasing best practices in gender mainstreaming.

African Governance Report (AG R)

The first edition of the African Governance Report (AGR I) presents the initial results of ECA's comprehensive study of the state of governance in 28 African countries and identifies 10 priority areas where action is needed in order to build effective, capable states across the continent. To supplement and deepen the analysis contained in AGR I, ECA plans to assess progress towards good governance in 12 additional African countries, the results of which will be published in the second edition of AGR in 2007. Selected new areas of inquiry include training and skill-building needs, particularly in the areas of policy analysis and budget control.

ECA will also investigate policy options for strengthening the capacity of political parties as well as harnessing traditional governance institutions to contribute more effective] y towards policy-making processes and thus promote the welfare and development of their societies.

Sustainable Development Report on Africa (SORA)

ECA will continue to contribute to the regional implementation of the action plan adopted at the World Summit on Sustainable Development (WSSD) in September 2002. Priority activities to be undertaken in this regard will include the annual publication of the Sustainable Development Report on Aftica (SDRA). The report will use key indicators of sustainable development and livelihoods featuring critical elements of the economic, social, population, environmental and institutional dimensions of sustainable development to monitor performance and share best practices.

Supporting the African Peer Review Mechanism (APRM)

Some 26 African countries have now acceded to the African Peer Review Mechanism (APRM) to which ECA, as one of the substantive strategic partner institutions designated by the

Part II: Priority Actitivities, 2005-2008

NEPAD Heads of State and Government, will continue to provide technical support at each of the core stages in the countries undergoing the peer review process.

In this connection, and on demand from the APRM Secretariat, ECA staff and experts will continue to serve as members of the APRM country missions However, to enable it to respond more systematically to the growing demand for the provision of technical support to the APRM, ECA is establishing a unit dedicated to supporting the APRM Secretariat. As required, the unit, within ECA's Economic and Social Policy Division, will draw on expertise from across ECA divisions, as well as consultants to provide support to all the key activities of the APRM process, including the management of a database of country benchmarks against which critical and credible assessments can be conducted, providing periodic, accurate and impartial information on each country's progress in fulfilling its plan of action. This repository will consist of country profiles drawing on ECA's governance study as well as key performance and development indicators relating to the economy, poverty, trade competitiveness, gender, and other MDC-related indicators.

ECA will also align its governance capacity building support to member countries with the priority ne,eds and actions identified through the peer review process and work with the APR Secretariat and other Strategic Partners in assisting more African countries to participate in the peer review process.

Promoting Good Governance and Building the Capable State in Africa

Any progress made in Africa towards accelerating growth and achieving the MDGs will ultimately rest on the foundations of good political, economic and corporate governance practices.

ECAs recent research highlights the fact that, despite the significant progress made in the region towards good governance over the past few years, numerous structural deficits in governance systems and processes remain prevalent in many countries. The challenge now, therefore, is to ensure that Africa's strides towards good governance are sustained through a focus on building capable states endowed with transparent and accountable political and economic systems, efficient public institutions, and adequate checks and balances among the different arms of government.

Against th1s background, ECA's current and future work will be geared towards supporting and streng,:hening the capable state by undertaking activities focused on three broad priority areas, namely political governance, economic and corporate governance, and strengthening institutional effectiveness. In addition, the work programme in the next three years will place particular emphasis on addressing the challenges identified in the Consensus Statement adopted by the fourth African Development Forum (ADF-IV) which took place in Addis Ababa in October 2004 on the theme Good Governance for a Progressing Africa.

In this connection, ECA will provide technical assistance and policy advisory services to member States on political, economic and corporate governance and institutional effectiveness issues

EGA actively participates in all five stages of

the peer review process from country support

and review missions, through to the drafting of final country

reports

ECA Prospectus 2005 - 2008

with a particular focus on addressing the capacity deficits in Africa's governance institutions identified in the ECA governance country surveys (AGR) and in country assessments under the APRM. This will include training activities for senior policy makers and other stakeholders focused on issues relating to the principles and objectives of good governance. Specifically, the training will include the following topics: fair and transparent electoral systems; judicial independence and accountability; peace and security; the application of standards and codes of corporate governance; Medium Term Expenditure Framework (MTEF) process in the context of economic governance; and strategies for promoting accessibility and accountability in public service delivery.

Policy studies will address key governance themes. These include: institutional mechanisms for participation in promoting effectiveness and accountability in policy implementation;

strategies for enhancing the role of parliaments in the Medium-Term Expenditure Framework (MTEF) process; policy options for strengthening the capacity of political parties to lead and contribute to public policies; harnessing traditional governance institutions for improved governance; and, best practices in improving the effectiveness of the judiciary in combating corruption in Africa.

Strengthening African media

As the A GR and the ADF IV Consensus Statement both emphasise, the media are one of the most fundamental sectors that must be strengthened as part of the quest to improve governance and advance the overall development agenda in Africa. ECA has long been concerned to help build capacity in the African print and broadcast media and to facilitate development of networks among journalists and editors. ECA is also aware of the recommendation in the Commission for Africa's (CfA) report that "Independent media institutions, public service broadcasters, civil society and the private sector, with support from governments, should form a consortium of partners, in Africa and outside, to provide funds and expertise to create an African media development facility." ECA is in the unique position in Africa of being engaged in supporting media without having a direct interest in the media industry or in influencing agendas. The Commission will seek to use its convening power as an honest broker to operationalize the CEA recommendation, assembling and chairing a mixed group of African media practitioners and partners and carrying forward needs assessments at sub-regional and national level. The project will aim eventually to create a partnership forum or mechanism through which media initiatives can be assessed, refined and funded in a transparent context, avoiding duplication in partner funding and ensuring synergies.

Achieving the Millennium Development Goals through Second Generation Poverty Reduction Strategies

Over the past five years, the Poverty Reduction Strategy (PRS) approach has established itself as both, a process that has opened up new spaces for domestic policy dialogue, and an operational tool focused on growth and reducing poverty. Against the background of reviewing their progress towards achieving the MDGs, many African countries are currently taking stock of the achievements and outstanding challenges associated with the PRS process so as to inform

the design and implementation of second generation PRSs. ECA is planning to assist in this review and design process, drawing on the experiences and lessons learned from the African Learning Group on PRSPs, which has gained widespread recognition as the regional forum for peer learning and information-sharing on the design and implementation of national PRSs.

Since 2001, ECA's African Learning Group on the PRS has held three annual meetings. The consensus from the Learning Group discussions is that a second generation of poverty reduction strategies (SGPRSs) must offer stronger potential for sustained growth, help address the economic transformation needs of low and middle-income African countries, and deepen parrnerships around country-led approaches. We therefore feel that the time is now right to convene a high- level regional dialogue with the participation of African Ministers from Finance and Planning as well as from line Ministries in order to discuss the Learning Gtoup recommendations and chart the way forward with the SGPRSs. In that regard, the ECA in collaboration with AU will sponsor an African Plenary on PRSs, in early 2006. The Plenary will be an opportune forum for discussiOn and consensus building between a wide range of senior stakeholders on the policy options for accelerating pro-poor growth in the continent and meeting the MDGs. Drawing on the outcome of the 2006 African Plenary on PRS, the annual meetings of the African Learning Group on the !'RS will continue during 2006 and beyond.

Through ongoing advocacy work, the convening of stakeholders and technical assistance to African po icy-makers, ECA also plans to ensure that the SGPRS will be more HIV/ AIDS as well as gender sensitive, the links with national Medium Term Expenditure Frameworks and Annual Budgets ar, further improved, issues related trade and investment are mainstreamed in national plans, and that appropriate focus is placed on investments in the productive sectors. Beyond the African Plenary, ECA will be taking up these issues in the course of its regular work programme.

Finally, EC:A is now implementing the first phase of an internet-based PRSP-Enhanced Knowledge Sharing prnject consisting of a PRS Country Team Knowledge Networks and Annual Electronic Roundtables to foster a dialogue between PRS practitioners on key PRS issues and challenges.

Mainst1·eaming the Gender perspective

As an element of its work on the PRSs a major thrust of ECA's work in recent years has been focused on building and strengthening the capacity of member States to address the gender dimensions of poverty by equipping them with relevant data. However, the lack of gender- disaggrega,ed data, especially at the household level, continues to be a major bottleneck in conducting gender-sensitive policy analysis. Starting in 2006, and building on our pioneering work in developing a gender-aware macro-economic model, ECA is therefore planning to collect gender disaggregated data from household surveys in six African countries to construct gender-aw.ire macroeconomic models. Through policy simulations these models will help demonstrate to policy makers how gender inequalities in public policies and strategies will have different impacts on women and men in key areas such as employment, poverty and welfare.

Using the ECA Guidebook on Mainstreaming Gender and Household Production in National Accounts, Budgets and Policies in Aji-ica, we will also assist member States in improving the skills of n1tional experts to collect, analyze and integrate gender-disaggregated micro and

s!E<'.'M will convene a high-level plenary meeting on national PRSs to examine policy options for achieving theMDGsand reducing poverty through structural transformation

ECAplaces special focus on developing the capacity of member States to address the gender dimensions of poverty through equipping them with relevant data

£('..A Prospectus 2005 - 2008

macroeconomic stansucs into national planning instruments. These act1v1t1es will help member States in preparing regular National Satellite Accounts of Household Production (NSAHP) as part of the System of National Accounts (SNA). The NSAHP is a powerful approach to determine the respective contribution to the economy of household and market- driven production activities.

The ECA will also place a renewed emphasis on information dissemination and communication outreach to complement its gender related activities. Since 200 l, ECA has developed a systematic communication strategy on gender issues, which provides visibility to ECA's strategic orientation in the economic and social advancement of women in Africa.

In implementing this strategy, ECA will increase its Network of Gender Liaison Officers in the next rhree years to cover 52 African countries. So far, the network comprises approximately 100 Gender Focal points from civil society, the academia, the media and the institutional mechanisms. The network will help raise awareness of gender issues that are of priority in addressing gender inequalities and women's empowerment in Africa. The African Centre for Gender and Development will also enrich its bilingual website, establishing strategic links with other gender-related sites at the sub-regional, regional and international levels. In addition, a knowledge-sharing network addressing gender issues will be developed with the objective of influencing national debate on gender-related issues.

Confronting the HIV/AIDS development challenge

The biggest cross-cutting leadership challenge in Africa today is, without a doubt, the HIV/

AIDS scourge and the profound structural impact it has on the continent's capacity to meet its development challenges. To halt the pandemic and reverse its spread by the year 2015, as specified by the MDGs, and in an effort to scale up the fight against the virus with adequate analytical tools and policies the UN Secretary General established the Commission on HIV!

AIDS and Governance in Africa (CHGA), chaired by the ECA Executive Secretary, in 2003.

During the past two years, the Commission has commissioned research on the impacts of the pandemic on government, the economy and provision of services, drawing on a wide range of published sources and has held a number interactive sessions around Africa with medical professionals, activist groups and policy makers. The Commission's report will be launched in the run-up to World Aids Day, December l, 2005, providing an opportunity for ECA to deliver a major campaign of policy advocacy and dialogue ro spread key messages and have them widely discussed. This document will encapsulate policy advice and action points for African policy makers on how to reinforce prevention efforts; strengthen health systems to deliver treatment more effectively; protect vulnerable groups including women, young girls and orphans; and achieve more sustainable and coordinated funding, among orher goals.

HIV/AIDS as a constraint on development is at the heart ofECA's concerns and the proposed advocacy campaign is therefore of the highest priority.

The Communication Team of ECAhas crafted a detailed plan targeting partners, constituencies and stakeholders as well as high-level events at which to propagate and disseminate critical

Part II: Priority Actitivities, 2005-2008

messages. The first step will be to deliver the report and summaries of its findings into the hands of policy makers and other stakeholders. Thereafter, ECA will use various channels and activities such as international fora, campaigns around specific themes, web outreach through listserv and discussion groups, and collaborations with African media houses to facilitate coverage of the report. We will rely heavily on relationships and partnerships developed during research and workshops in the past two years to extend our advocacy. CHGA Commissioners will serve as ambassadors for the report, traveling throughout the coming year to workshops, conferences and events that provide opportunities for advocacy.

Looking beyond the launch of the CHGA report and discussion of its findings, it will be critical for member States to begin implementing the Commission's recommendations on several fronts simultaneously. ECA's overall work programme will therefore continue to address the development implications of the pandemic, including its impact on human capacity and institutional structures, in order to provide policy assistance and advice in this regard. To date, the work m this area has been conducted under a small unit providing secretariat support the Commission for HIV/AIDS and Governance in Africa. As the tenure of this Commission ends this year, future policy work on this important area will be mainstreamed into the regular poverty and social policy analysis work programme of ECA under the leadership of the Economic and Social Policy Division.

Africa's trade and integration challenge

Whilst n:ainstreaming trade into national development policies has been a key focus of ECA's work in previous years, we are now planning to further intensify activities towards strengthening the capacity of member States to effectively participate in the global economy, by promoting intra-regional as well as international trade, supporting Africa to bring the Doha Development Round to a successful conclusion, and strengthening the process of regional cooperation/integration.

In the ar,,a of trade and cooperation, policy studies will be conducted on the promotion of intra-African trade, and issues related to the 'WTO and trade negotiations between the EU and ACP countries. The African Trade Policy Centre (ATPC) is preparing to implement a comprehensive trade-related capacity-building, research and training programme; and ECA will also continue to provide advisory services as well as technical support to African Governments, enabling them to effectively participate in the process of the continued WTO trade negotiations.

Ongoing training activities in collaboration with the ATPC, UNCTAD and WTO will therefore target African trade negotiators and officials based in Geneva and national capitals, parliamentarians, and civil society organizations that are expected to make major inputs into trade issues. Additionally, as the Economic Partnership Agreements (EPAs) negotiations move into a new phase, ECA plans to undertake a number of technical assistance missions to the Regional Economic Commissions (RECs) to support the RECs with the development of a cohesive negotiation strategy.

EcJ.m

^continue

to provide advisory services and technical support to African Governments to enable them to participate effectively in the WTO negotiation pro~ss

J

EGA will develop performance indicators for tracking progress towards integration at the regional and subregional levels

EC.A Prospectus 2005 - 2008

Regarding rhe policy and institutional aspects of regional cooperation and integration, particular attention will be paid to assisting member States, the AU and the RE Cs in identifying new opportunities and challenges at the regional and global level. This will include enhanced support for the strengthening of sectoral integration at the regional level in the trade, industry, agriculture, money and finance, transport and communications sectors, as well as assisting the efforts of the RECs to integrate their programmes with the objective of establishing an African Economic Community. ECA also plans to develop performance indicators for tracking progress towards integration at the regional and sub regional levels .

. The third edition of ARIA, to be published in late 2007 in close collaboration with the AU, will focus on the challenge of monetary integration and macroeconomic policy convergence for African economies. The report will examine the supranational monetary institutions envisaged under the AU, such as central banks and other institutions, for a successful monetary union and analyze the set of convergence criteria needed by member countries as they move through the transition phase to the adoption of a common currency for the continent. A key component of the report will be a study on the cost and benefits of integrated financial markets in Africa.

Focusing on the transport and communications sectors, ECA will strongly support the infrastructure component of NEPAD, and assist member States with the integration of their new air transport policy into national transport programmes, whilst monitoring progress in the implementation of the liberalization of the African air transport market under the Yamoussoukro Decision. Other activities envisaged in this area include developing new mechanisms for financing transport infrastructure and equipment, addressing issues related to liberalization of services; as well as improved safety and security; reduction of transportation costs; and the use ofICT in improving infrastructure services development.

Supporting sub-regional Activities for Development

The RECs are ECA's main clients at the sub-regional level. As such, the Commission and its sub regional offices (SROs) have been working closely with the main RECs to harmonize membership, strengthen policy coordination and build technical capacity to pursue regional integration. ECA has therefore strengthened its sub-regional presence by making the operations of the SROs more relevant, efficient and focused on member States' requirements.

Acting as operational arms ofECA, the SROs are now considered key partners of major RECs and other sub-regional organizations.

With the acknowledgement by member States of the critical role of RECs in the implementation ofNEPAD, ECA's work will focus on building the RECs' capacity in priority areas including tracking the economic and social performance in each sub-region; supporting the implementation of the medium-term plan of major RECs under NEPAD; assessing the impact of regional integration schemes in the various sub-regions with special consideration to policy convergence criteria; and providing training support to senior policy makers and major stakeholders in the areas of macroeconomic policy design and analysis, trade, transport infrastructure and services development, sustainable development and the integration of regional cooperation strategies.

Part II: Prioriry ActitivitieJ, 2005-2008

Harnessing Information Technology for Africa's development

Efforts towards regional integration in Africa must also be accompanied by measures to mainstream and harmonize !CT policies and frameworks across the continent. The challenge here will be to implement national strategies and strengthen linkages to the NEPAD Action Plan, which identifies information technology as a key priority sector. Responding to the demands of the NEPAD and in close collaboration with a range of partners from the UN system and beyond, ECA therefore plans to address key emerging information society issues, such as firancing national !CT infrastructures and harmonizing regulatory frameworks.

With the African Information Society Initiative (AISI) as its core framework, ECA's activities over the next three years will be informed by the recommendations and decisions of the Committee on Development Information (CODI) and the WSIS Plan of Action. In that context, we will focus on specific priority areas such as strengthening the capacity of member States in the use of information and knowledge for development, including the development of library services and geographical information resources; and supporting policy dialogue for sharing experiences on policies and strategies for the application of!CT in key social and economic sectors.

These activities will be supported by analytical work in the form of publications, outreach materials and online discussion lists, which will strengthen networks among various stakeholders. The activities will be carried out in collaboration with a range of partners from within and outside the UN system, including civil society, private sector, media, academia, women and youth organizations. Such collaboration will ensure dialogue and broad consultation for achieving an inclusive information society in Africa. Existing partnership and coordination mechanisms, such as with the RECs in the respective sub-regions will also be further enhanced.

Efforts will also be geared towards addressing key and emerging information society issues, such as financing national information and communication infrastructure, building the implementation capacity of relevant institutions or stakeholders and harmonizing regulatory as well as legal frameworks. This will involve the RECs and integrate NEPAD's requirements.

In further promoting the use of information for decision-making, ECA will continue to provide training on the use of combined statistical and spatial data with specific application to poverty mapping and country poverty profiles. In order to empower and build local capacity to speed up the process of the implementation of NICI plans, ECA will inter alia provide technical assistance in support of governance issues, especially in the context of the e-Policy Resource Network (ePol-NET) for which ECA acts as regional node.

In order to raise awareness on innovative applications that could have a revolutionary impact on content creation and utilization, the Information Technology Centre for Africa (ITCA) will seek to pilot wireless and other new applications. Additional capacity building workshops for parliamentarians, civil society members and journalists will be conducted using available expertise and the training facilities at ITCA, including the Centre's Virtual Learning Academy (vU\C).

Through the AVLIN project, EGA will facilitate the building of a network of virtual libraries to provide better access to knowledge on African development issues

£CA Prospectus 2005 - 2008

In addition, through the African Virtual Library and Information Network (AVLIN) project, ECA will facilitate the building of a network of virtual libraries and specialized information centres as a means to provide better access to knowledge on African development issues.

AVLIN will provide access to e-books, policy documents, bibliographic databases, and standardize virtual library systems.

Responding to existing gaps in educational curricula, their relevance to the employment market, and the resulting brain drain, !CT in support of education and research and development (R&D) is another critical area ofECA's agenda. Activities are in place to support primary schools and job creation for out-of-school youth. Mechanisms will be developed for establishing linkages between governments, academia and the private sector and securing the commitment of the latter as an important constituent in developing and diffusing ICTs.

In the area of geo-information, ECA will establish a facility offering member States easy access to up-to-date geo-information tools, techniques and data resources. Focus will be placed on national spatial data infrastructure-combining the technology, policies and standards necessary to promote data sharing and enhancing collaboration with African regional institutions. Partnerships are currently being strengthened with Natural Resource Canada and the Canadian Space Agency.

Beyond the WSIS Tunis Summit to be held in November 2005, ECA will assist member States in implementing the Plan of Action of WSIS II and addressing the challenges of building a sustainable information society. Some key challenges will be highlighted at the fifth meeting of the COD I in 2006, which also provides a forum for the 10-year review of AISl's implementation.

Boosting Africa's statistical capacity

Africa also needs to be able to generate credible, reliable and comprehensive data in order to

design and implement effective policies and track performance towards achieving the MDGs.

ECA will therefore continue its collaboration with its partners of the Advisory Board on Statistics in Africa (ABSA) to identify emerging issues as well as ways of promoting and disseminating best practices in statistical development to member States and sub regional organizations. In particular, the Board will continue to advocate and provide support to the implementation of the 1993 System of National Accounts (SNA 93) in Africa and strengthen the coordination as well as harmonization of statistical development activities at the regional level.

Following the last session on the Reference Regional Strategic Framework for Statistical Capacity Building in Africa (RRSF), where experts from ECA, AfDB, the World Bank, Paris 21, partner and regional statistical agencies examined progress on the RRSF since the launch of the Forum on African Statistical Development (FASDEV) in 2004, consultations in 12 countries are about to start with a view to compiling the reference framework over a ten-year period starting in 2005.

In collaboration with its partners, ECA has also designed a two-year training programme starting in 2006, providing member States, regional and sub regional organizations with

Part 11: Priority Actitivities, 2005-2008

expertise on price stat1st1cs, SNA compilation, trade statistics, database development and household survey management.

Fostering Sustainable Development

The Johannesburg Plan of Implementation (JPOI) adopted at the World Summit on Sustainable Development (WSSD) in September 2002 has renewed the commitment of the international community to address the special challenges to sustainable development. ECA'.s work in this area over the next three years will continue to be aimed at contributing to the regional implementation of the WSSD outcomes within the framework of NEPAD. ECA'.s activities in support of the WSSD outcomes will thus focus on strengthening the capacities of member States in designing institutional arrangements, policies and programmes to reinforce the interrelationships among the key variables for sustainable development, including support for regional programmes and partnerships for addressing challenges arising from rapid population growth and HIV/AIDS; natural resources and environmental degradation; low agricultural productivity; and food insecurity.

ECA will also continue ro support integrated natural resources development and management, including land, mineral, energy and water resources, for the achievement of sustainable development, gender mainstreaming and poverty reduction, and contribute to the development of human and institutional capacities of member States for harnessing science, technology and innovation for development. Finally, progress in the implementation of the outcomes of the WSSD as well as commitments on sustainable development under NEPAD will be monitored and assessed in order to improve the quality and impact of information for policy-making.

In addition, as decided by the Committee on Sustainable Development, ECA will align its activities with the multi-year (2004-2017) programme of work of the Committee at the global level. In this connection, the work programme for 2006-7 will focus on mining and the ten- year framework of programmes on sustainable consumption and production patterns, among other issues.

Developing effective water resource management strategies for Africa

Africa is richly endowed with natural resources but has so far failed to manage those resources strategically to the sustainable benefit of all. Nowhere is this truer than in water resource management where progress in sub-Saharan Africa towards the MDG of halving the proportion of people without sustainable access to safe drinking water by 2015 has been stagnating.

To help Africa achieve the MDG targets on environmental sustainability, and in support of the UN General Assembly Declaration of the International Decade for Action, "Water for Life" (2005-2015), ECA, as the Secretariat of UN Water/Africa, along with its key partners is about to publish the first biennial African Wttter Development Report (AWDR) to monitor progress made in the implementation of the 11 development challenges identified in the African Wttter Vision 2025. Within the UN Water/Africa partnership, a concerted effort will also be made to support member States in implementing all the objectives of the "Water

EGA will play a lead role in

monitoring progress made in the implementation of the African Water Vision 2025

In recent years, EGA has progressively strengthened its relations with partners both within and outside the continent

ECA Prospectus 2005 - 2008

for Life" Decade, drawing on lessons learnt from the International Decade for Water and Sanitation (1980-1990).

We will also continue the activities of the African Water Information Clearing House (AWICH) to improve access to accurate and timely information for decision makers at the national and regional levels as well as manage the publication of the biannual African Water Journal.

Enhancing Partnerships for Greater Impact

While ECA is uniquely qualified to serve Africa in certain areas, it is fully aware that it lacks the capacity to address the full range of development challenges on its own. As such, partnerships based on comparative advantage and pooling of resources have always been recognized as being critical to maximizing impact on Africa's development. The Commission has progressively strengthened its partnership agenda with a wide spectrum of partners both within and outside the continent. Within the continent, partnership arrangements in support of the AU and NEPAD agenda will be strengthened. In specific, ongoing collaborations with the AU, particularly in the area of trade, gender, and ITC will be streamlined and strengthened.

This year the AU and ECA will jointly co-host the African Development Forum on rhe theme

"Youth for Leadership in the 21 Century". Collaboration with the African Development Bank will continue through the Joint annual Symposium ECAl AfDB that is convened in advance of the annual meetings of the ECA and AD B, and around the African Learning Group on the PRSPs.

The Commission will continue to build on its existing partnerships with other United Nations agencies. To ensure system-wide coherence, ECA will undertake its work in close cooperation and coordination with other UN entities, including the Bretton Woods institutions and the World Trade Organization. It will use its mandate as convener of the annual regional consultations of UN agencies working in Africa to sharpen the focus on collaborative inter-agency activities in order to strengthen the impact of UN support to NEPAD. In this regard, ECA will continue

to promote joint activities by UN agencies within the context of the various thematic dusters established as part of the regional consultations, and working closely with the African Union, the RECs and the NEPAD Secretariat in support of the implementation ofNEPAD.

Collaboration with the OECD community will continue in the context of the joint ECAl OECD DAC work on the Mutual Review of Development Effectiveness in the context oJNEPAD.

The work over the coming two years includes the monitoring of the 2007 action frontiers and benchmarks agreed upon in the first Mutual Review report. The outcome of this work will be published as the second Mutual Review Report in May 2007.

Finally, through its membership in the Strategic Partnership with Africa Group (SPA), ECA will continue to provide input to the SPA deliberations on budget and sector support and on the quality of donor support to Africa. ECA will also continue to co-host workshops for an African reflection of SPA related issues.

Part III: Strengthening Tnstitutional Capacity

Part Three

Strengthening Institutional Capacity Processes

The Institutional Strengthening Programme (ISP)

Launched in January 2003 with the overarching objective of deepening the ECA reform process that was initiated in 1996, the Institutional Strengthening Programme ISP was consistent with the goals of the Secretary General's new reform initiative to strengthen the United Nations. Its core aim was to catalyse an improvement in the Commission's planning and budgeting system, human resource management and processes as well as strengthen its knowledge management. As it draws to the end of its two-year lifetime at the end of 2005, a number of achievements can be cited, particularly within the area of financial management, where the ISP has overseen the establishment of a new trust fund management and reporting system. lhe main feature of chis system has been the creation of a donor portal co enable partners to remotely access general information on donor-supported programmes as well as specific projects (see next section). Meanwhile in the area of human resources management, a

"performance compact" between the Executive Secretary and Programme Managers has been developed in a bid to strengthen managerial functions and competencies. This is to be signed between the two parties in a bid to hold managers accountable to measurable goals.

From 2006, key activities of the ISP will be continued as part of the work plan of relevant ECA departments. The following section provides a summary of the ISP inspired changes in the operation of our planning and budgeting system and describes how they will improve our work.

The ECA Donor Portal & Trust Funds Management System

ECA Donor Portal

The Donor Portal is a web-based application developed to provide personalized information to donors and partners on the management of ECA Trust Fund activities. The Portal will be operational in 2006, thereby enabling ECA donors and partners to remotely log on and access relevant information in relation to their funds and other ECA TF activities. Information to be provided on this network will include: the certified TF financial statements, Trust Fund annual reports, the ECA annual report, a short profile of on going projects, progress and terminal

EGA' s new Donor Portal provides comprehensive information on the management of EGA Trust Fund activities