ECA/CERAD/87/17
,
\
:THE CHALLENGE OF
ACCELERATED DEVELOPMENT
ECONOMIC RECOVERY AND DEVELOPMENT, 1986-1990 (UN-PAAERD)
S. Economic Commission for Africa
I
' '
UNITED NATIONS
ECON~MIC COMMISSION
I
International Conference on
"Africa: The Challenge of Economic Recovery and Accelerated Developmentw Abuja, PJigeria
15-19 June 1989
ECA% PRELIMNARY SURVEY ON THE IFIPLEfaENTfTIeaN OF AFRICA'S PRIORITY PRBGRr31MkgE FOR BCOMOMC BECOVERY. 1986-1990 (APPEIER)
Economic Commission for Africa
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implement speedily and fully the measures and policy refcrrms which thepi had committed ki~e~selves to in W- RD aria AFPER and also called on the Exes;utxive Secretan of A ts further intensify his ef f orts in assisting re&er States in the successful. implementation, mianitssrkrbg and e-~alastian of the implementation of UN-PMERD srad APPER* The resolution also urged member States to complete urgently the ECA .$le%kiomaire on the
implementation sf APPER and UH-Pb*Pb*PERD. The Executive Secretary of ECA was requested on the basis o f this ~ e s t i a n n a i r e ku prepara an in-depth and comprehensive report for cansideration of the ECA
Conference of Ninistcrs at its ordinary session af April 1987, for consideration by the OAU Steering Committee and the 1987
Assembly of Heads o f State and Goverment as well as the General Assembly of the United Nations at its fa~y-secona s e s s i a i ~ as part of the Secretary General's progress report.
8. The issuing of the cyestionnaire just five manthe after the adoption of UN-P'AAEKg was to enable EC& to ~zrsscrkain ~qhether nember States had establisbecP a coatiwuous process for the follow-up, evaluation and co-ordination of its imple~entakim at the national level. Such infomation t~aubd assist EllA to prepare a composite picture of the implementation status sf VN- RD in, the base year 1986 and would thus provide baseline infsmation against which progress can be measured in later years, Ik nil1 also assist member States to identify key areas where their implementation lags behind that of other countries in the region,
9. The cyestisnnaire was esigned in Live parts:
Part I1
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Immediate Measurespart 11%
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Short/Meedium-tern E?feasustes Part IV-
Financial Resource MobilizationPart V
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Kjiodabities and Mechanisms f o r Pmplementatioap and lonitoring of APPER and the UN-PMEWD.10. It was structured in such a way as to obtain inearmatdon an the main priority areas of the two programes, These are:
(a) Food and agriculture
(b) Other sectors in support of agr,cultu=v;se:
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~ehabilitation and development - of acrro-relaced-
industries
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Development of transport and communications-
Trade and Finance(c) Drought and desertificatian
..
(d) Wuman resources development, planning arndi utilizatio~~
. .
(e) Policy reforms:
0
-
Improving the management of the econ-
Other policy measures-
Population policy-
Participation of the people in development-
Women and development(f) Refugees and displaced persons,
The questionnaire closely followed the structure of both APPER and UN-PAAERD in order to ensure that the mechanisms an& policy reform issues dealt with under the differant areas of concentration of the two programmes are afiequately covered, A
simplified approach in questionnaire design was followed usually requiring respondents to mark one of two boxes. Ira a few cases,Q such as efforts to create or to strengthen financial institutions under Part IV of the questionnaire, respom2inq-g governwents were asked to give examples.
11. The questionnaire was handed over to the Xiaisters who
.
attended the second Extraordinary Session o f the ECA Conference of Ministers convened in Addis Ababa Prom 13 to 16 Bc.toEaer 1986.
In addition copies were sent to member States through the normal
.,
official charnels. The UNDP Resident Representative in each African country was also given a copy to enable him ta follow up with the appropriate government ministry to ensure an early return of the completed questionanaim. In addition, E C h staff members on missions to countries were asked ke, follox~-up, By the middle of May 1984, 36 member States i , e . 7 2 per cent of ECAts total State membership had responded to the guestisnnaire. These were: Algeria, Benin, Botswana, Burkina Paso, Burundi, Camemon, Cape Verde, Central African Republic, Comoros, Congo, Egypt, Equatorial Guinea, Ethiopia, Gambia, Ghana, Guinea Bissau,
Lesotho, Libyan Arab Samahirya, Liberia, Nadegascas, M a l a w i , Nali, Mauritius, Eorocco, Niger, Nigeria, Rwanda, Sao-Tome Q!
Principe, Senegal, Sierra Leone, Somalia, Sudan, Tanzania, Toga, Uganda an& Zambia. One or two countries which returned their questionnaires without completing them but attached government statements which unfortunately could not be used to supply the relevant information have not been included. Twenty-two of %he responding countries were LDCs; thus 81 per cent of a11 LDCs in Africa completed the questionnaire. The distribution of the countries by subregion is as follows:
Sub-reaions Number of Those who returned the f o m
--
Indian Ocean Island Countries Number-
8countries 4 3 75
East Africa
. . Southern African States 9 8 7 4 78 5 0
Central Africa 7 5 7 l
Sahel 9 7 78
Non-Sahel West Africa 8 6 75
North Africa 5 4 8 0
5 0 3 6 7 2 -
12. It is also interesting to look at how many of these countries are sub-Saharan, As defined by the World Bank 39
African countries are sub-Saharan. If that definition is adopted, 82 per cent of sub-Saharan countries responded to tho questionnaire. However, the World Bank classification excludes countries like Cape Verde, Comoros, Djibouti, Equatorial Guinea, Sao Tome & Principe and Seychelles. If these are taken into account then 71. per cent of the sub-Saharan countries responded to the questionnaire.
13. In December, 1986 the UN Interagency Task Force an the follow-up of UH-PAAERD appointed a group of three experts to prepare a report on improving information flows on the follow-up process of African Economic Recovery and Development. This mission visited nine African countries and held discussions with high government officials in eight of them on the need for information far monitoring the UN programme at national, subregional and regional levels. The mission took the optportunity to remind governments which had not respondecP to the questionnaire about the importance of completing the
..
questionnaire as soon as possible.14. The information contained in the questionnaire has been computerized and will be up-dated every year to easure that up- to-date information is available at ECA on actions being taken at the national, subregional and regional levels to implement UN- PAAERD. The analysis contained in Part XI o f this, report should
b@ read in conjunction with the Survey of Economic and Social.
Conditions in Africa fnz 1985-1986 (E/EGA/CEUJ,l3/3) and the kDB/EeW Econcnic Report en Mriea, 1987,
PART X X
&UVAL'YSXG
15. The results o f the survey are shown in Tables 1-6, In the folicwing sections, the higl2licjhts of the country responses are given.
(a) GeneraLZssues Related to the Xmplementation of
&xrica% Priority '~~roqramms 191~6-LWQ I A P P E R J ~ ~ the Unite6 Nat&cans E r r o g ~ m e of Action for African
--
Economic Recoverv and Devela~ment, 1986-1990 LUN- PRAEFB)16. The United Rations resoluti~n in asking the AErican countries to implement the UN Programme of Action impPked that.
national perspectives and initiatives formed the principal basis E m the implernen'kafion of the prograntme. ~t is, thereforet necessary to look at some of the general issues which have arisen or are likely to arise in the implementation of the programme at the national level,
17. It should be noted that many African countries have a variety of our-going national programmes embodied in either long term development plans or short-tern policy perceptions. These pragrames are izarn~ally daSawn up by the Ministry of Planning with the assistance of the seetoral ministries. Pn order to ensure that UN-PMERD is being svccessfully implenaented, it was necessary to ilavestigate whether any actions had been taken with
respect ta (L) the. integration sf the strategies, policies and
priorities of APPER into the individual national development plans and policies and the imadiate realignment of existing national programmes (e.q, development plans, structural adjustment an? mjtabilizatian pragramesf to the strategies and priorities of APPER and U E - P W R D , (Fi) the incozporatio~ of 5425
UN-FWIIERE) priorities in the annual. budgets; and (iii) the reorientatis3 of external. assistance towards the UW-PZbAERD
derived national priarikies,
18. Anong tho principal criticisms ievePled at the functioning of ~tatianal glarani,ng me~hazisms is that programme %omula"eion tends to be limited to the technical organ level and mast development plane and policies do not reflect priority needs of
20, The survey shews &at in a t l e a & one areai a number @f countries have taken specific acticn, 92 per cent of the countriss had in;;lfcated "hat their priorities under UN-I'Ai4EED namely food and agriculturel development of other sectors .. svppexting agriculture jparticularly agro-industries, krarasport and comzu-.icir.tl.on~;, trade and finance), drought am3 desertificaticrn and h m s n resources development h v e h e m incorporatecl into the current national 6evelspment plans where a~plicahLa; 85 per cent o f the countries have already reflected
2 2 Ma3.y countries had a d o p t e d stabilization, structural
&dl j *s~mm.Er T.'" an6 cveraLI economic reh~biI.itatian progra~mes a Paacro- economic rr.;?nagem,-1st pro9rrari11aes bri:%g c:r~rre~t.fy p ~ ~ s ~ e d by c o ~ a n t r i e s a : si&4.a?.za.thon p:-ogram~a (39%)
,
stmcturaladjustrnaaY a (69%; and overa1.l eco~aonnic rehabilitation prograxma (50%: -. The infunnati.cr;i~ suppl.i.& i n t h e ~.es;eiernnaire, h~wever, di*d risk ma:w it e m : ; to d.escra.iss ~. the main content a E the prugrmme foll.awed, pax-ticuiazl.:,. ?:,he main policies, $ha resources
. x , equi.re6 and rile i32pac'"con the couru",ryB s rer,ovl%,ry. General statamsnts were mace snch as : I:otc:h ,"kn9t atabilizatisn programme and t . h e sJ;;u:~ctura% adjr.~irk.rxer!^r~ px~igrii.mmo laid +r4nphai;Ls an aman&
maexage:?.-r;?- policLes;
- .
expr.PL--led indtistriaxizati0p-a; agricultural arversifl,,catioj,~, toaA ~ r i ~ ~ , ~ , .-
* ob j e c t h e s and policies to increase theO ~ t p k CP fi30d and expctrt c r o p through apprcspsri.ate in.centives
f OP p r w & ~ d c i m , mar%et'.irq an: resource avaf 1abiiit:f; rehabilitate h e phvsi.cal i n f r a ~ , , s t r u r : ~ ; . u r in rsuppc-ct of directly productisre actiui+f -at;, .,,
.
increase capaeitqr utilization in industry; restoreiri"le_nal end ~xt;ilr.naB bal;thncz of p~>rsul.ng prudenk fiseall.,
0
mcmek%ry and trade pz>iici.e.e?: sestructu.rir.g of p u b l l ~ boards and enrpratiocs ; f i s c a l , and rnrx~etavy adjust~nerets: d e v a l u a t i o n of eucrc?ic:y ; :str~net;rrei. dj:; ~,?i:mcnt irn a 1 1 sectors QE the, scoplorny.
m
c3ne case an attenp-k was made to i n d i c a t e the resource reqt:~~.xe%eii"cs namely: 'Pan average o f absut US$1,7, b i l l i . o n &mually
I - - . .
w2.L.:. be r e r p i r e d to coir.;'r %he! import bill for three censecutive
y e w s Y t : bat in seneraL the reppest: ~ o n t a i n a d i n the qr?estionnaire
.to ~. . " r i + ? v ~ ,.i j.~. as;sc;.-Pbe I the m n h co~-,ten'rs sf t h e pmgx-aazne followed,
..
':.nd.;.c~?~i:q the nain >o'..icies; rssoiixPec> requirements and impact an
F ) ( M X ~ o t : y > % x y l b :;p~oveq11 yq4
-
i g ~ 1 ~ ~ e d4
- -
. b .described. In iks J o i n t i?rocjrame of Action subnzitted to its DaveLopment Carwittee 3.n 3.984, ,the'World Bank outlined plans to deal wl'.th adjustnenrt p ~ l i c i e s and ccmgrehensive development programmes, The objectives of the structural adjustment programmes were: to stimlate sutp-at and exports especially in the field of food and sgriculture, to correct distortions in exchange rates and producer prices, to inprove marketing policies and imskitutians, to :re&uce the size of %he public sector 'and generally to shift the terms of-trade in favour of agricultural product ion m c l sraxai incames.
24. Structural adjustmen?.% programas have been in existence in some countries for a nziambur sf' years now and their impact is being felt. In the sk:hor%-term, there has bean a sharp rise in the prices of basic foods at the same time as there has been a decline in the purchasing power of public sector employees and other urban dwellers. In fact, in at least two coirntrfes the salary and wage Zeveis for public senants are not enough to live on. On the &her hand, it is claimed by pone economists that the situation in these cuunkries would have been worse without structural adjustment programsnes.
25. The aanedjiun and larq tern impact of these adjustment policies need to be studied by African Go~7emxents and the World Bank. The World Bank is plarsning to conduct sumeys in a selected number of African carrntries to assess the social dimensions o f
its structural adjustment policies i n Sub-saharan Africa, ECA is playing the lead role in the Inter--Agency Task Porcs effort to organize in October 1983 La Libreville, Gabon an international conference on the m m a n D b n a i n n of Recoverv-and DeveZo~ment.
It is imporeant that Y h e m two exercises should be linked.
Fortunately, the WarXd Bank and BNBP are both members of the UN Inter-Agency Task Force,
26. In general, it appeared fro= the responses to Part I of the questionnaire that many countries had taken action in line with the principle sf UN-PMERB except in the area of the involvement of the private sector in t h e recal7ery effort and the mobilization of the people in support of it.
29. Par tha effective i.mplemenP;rstion af U E S - . P M R D , it was proposed that certain i:m&dia%e actions or maaskros regarding certain priority a r e a s shouEd be taken. The purpose of these measures was to enable African countries to cope with future emergencies al?d eatastrophies. 1 . C appears fro% tbe responses to the guestionnalre that with respect to food and agriculture about half of the African countries had already taken action and a further 30 per cent propose to teke action before the end of the
EGA/CEmD/87/17 Page 30
psrsgrame, The percent.aga s f coanerias which had taken action on three main categories are:
-
Creation and/or mat~-,tenaace of nati~~naI. emerqenq preparedness machanism (50%)-
Ins'titutimg effective early-warnirrg s p s " b ~ (47%)28. With respect to o'thes sectors in support of agriculture: the majority o f countries covered (78%) ha& alredy taken actbdn or m.easures on the maintaup.ar;cs am2 6euelapment o f feeder; acaas6 and sewice roads and ssna?&cl. bridges. Xi? per cent propose to taka action by 1990. 86 per cent had adopted price fneastives f o r agriOultural proC;ucts. With respect. ta seb.abiPits%ion and upgrading of existixq infxwtriax phrats 64 per cent of the cauntries had already taken setLon,
29. Ei crucial area of concern under %he Programme oaf Action is the proposal to reverse the brain drain. En this area only 28 per cent of the countries bad taken a c t i o n , A further 33 per cent intend to take action by the year 1990, These fifpres are rather disappointing in view uf the need to retain trainad manpower to help in the process o f errancrwitr mcovery and devslopaent. The precise measure (s) scuntrina have taken include economic incentives only ( 3 % ) p o i i t i ~ a l and soencsraic incentives C3%),
ensuring good wo:ckfr:g condi"l:luns f G % j , 9;nsuri.ng goad working conditions and political i~.cant.i~res ( 3 % ) , ensuring good 'working conditions and ecetnav,ir: incentives (17%) an ensuring good working conditions, pcsLit,ica:L incenti\-es and e@anomie incentives
(17%).
3 0 . The f ~ l l ~ ? ? ~ i n g percentages re$lect t b number i f sauntries
which had taken a c t i o n in the o t h e r areas under ather aacters in support 06' agriculkure:
Emy~rovement of i . n t e r n a i d i . s t r i b u . t i u n channels 67%
Undertaking reafforestation pragra'srmes 86%
Controlling Befarestatisc 75%
CantroilinFfscti.1 ercrsloa and/or mlinatisn 64%
Controlling over-gra&ing aarad,/ar 0-xer-eahpiaitia%Lcsn 56%
Controlling soil erosion only Cantrolling sslination o n l y
controlling soil arosis~ a ~ d saZlnaticn
Since just ktndear half of the erarrmtries resportdin?~ ha.ve not taker:
action, there is nee& far further Fnvest.igat,is;n to ensure that far those c a m t r i e s aver-grazing am3, sy~er-axploitati,~~~ do axrt.
constitute major proble'ns. 0themii"ie ~ m fotrm ~ e of action has t c j be taken.
31. Prior to tkbs tEq-ESi%%El?D a nv.mbtsr cxf hfricran esunkries had alreatty t a k e n act.ion in the area o f rrt%cro-economlo palicy refoms ta r e d r e s s economic imbalances espeei.kt?-ly re*;latad to e x ~ h a n g s rates, subsidies, size of the public s e c t u r , tqslgas and salaries, At the tirue of the survey about 7 2 per a m k o&" tke caaiintrias had taken action in the areas o f rextuction of ~ ~ & f j i d i i i s ~ 67 per c e n t on publie employment freeze, ~ $ 6 2er t2ertt or! e.xc%danqe
adjustment and 50 per cent on wage and s a l a r y freeze OX- raductlcjnl
3 5 . At t h e national Bevel, '75 per cen% o f %ha c~runtacias indicated that they had raisec% aubstars.t%ally t11.e Ie.yV21: c ~ f investment in food anti agriculture. 19 per cent had plans to do this by 1990. 72 per cent had already es"bab'ished or- strt?rrgthened agriculturaL credit i J ? s t i t u t i o n s and 25 per cant more propose t.0
do so by 2 9 9 0 . 56 per cent of the couz%tries bad a5.ra~dy tagen action in providing ilscel?tivea to ei?courage r u r a l s a ~ i n g s and 3 6
per cent Y B C ~ Brapose to do su by .$-.he en8 of the p l a n pejrio8, Ln the area of Lam1 reform and l a n d rec&ama.tinfz, 5 0 per cent ane 4 2 per cent aP the respandimzg clo.cintsi.es respectbxxely have aLready taken action*
3 6 , In the field of mechanization and madearnization a number of actions ha6 alreatiy been taken,. This incluaea the iratro&o.-zicti.m of
mechanization of agri~1813.ture ( ~ 7 % ) ~ d e ~ p ~ L ~ _ ~ ~ ~ e n k # & i s ~ e m F n ~ t : J - o n and encaur~genaent o f use of modern , i n , p u t u an& ~iaeU:ixls [as$], o n and expanding. storage capac:P.ty ( 7 2 % ) and "-,he StrangVhening. or creation of a netwesk o f agramasmiaal research stations ( 9 5 % )
.
W i t h respect ta devel.opment, d%c;aemi.natior: and encouragmeuxt of the use of 111~3dern Inpha'ka; ant5 methods, the 62etai1ed responses can he s u ~ ~ m ~ r i s e d as forlaws:High yielding varieties 8 %
Righ yielding varieties znd p ~ 6 t i c i d 6 3 8 8%
N o d e m law cosk i.rrigation methuds and pesticides 3%
Hcrciern low cost irrigation metEmds, high yi~el.&ing
varieties and pesticides 13.8
Sound crop rotation systems and pesticides 3%
Sound crop rotation systems, h i g h y i e l d i n g
varieties and pesticides 14%
Sound crop rotation systems, mcadem i.tm coak
imigatinm methods, h i q h yielding varieties and
pes,k:isrides 42%
37 I r t a.ppears ffrcrri these results, therefore, "ek?.at African counG.riea have taken seriousXy the provisions in the United Nations Programme ef Actian which are a i m 3 at giving new incentives to agrisrul:kuraP d~'y.elopi'iami; in order to achieve increasing levels of productivity and production. Another area of interest is extension services, Only 53 per cent had proarision of incentives to extenssin workers. Also, 64 er cent had taken action te streragdi~en laboratory fac.ilities. With respect ks small
a - farmers sizpyert, aspecl.ally women food producers and mral youth,
72 per cent bad already eatab1,hlished al;aist;~rac.e programes whikc
22 per cent intan& to do so in the very ear future*
.I. 38 e Other ae,tiors.s to ha taken in .the second main area of cancern namely other sectors i.n support of agriculture include processing o f raw materials and intemediate inputs (47% of countries had l~11:tiated ac"sPan), deva2opment of local capacity for project design and preparation (57%) and national training programmes (9259. The detailed breakdown o f the infomation on training is as follows:
National workshops for training and training abroad 3%
National workshops for training and an the job
training 3%
Matlonal workshops for training, training abroaa
and on the jab training 92%
Thus it is obvious that mast African countries completing the westionnaira. co&ine all three types of training.
39. Other measures taken include the rehabilitation and maintenance arf existing modes af transport and communications (83%) with 17 per cent planning 60 take action by 1990, Piawever, with respect to production of spare parts fur the overhaul, repair and inaintenance crf public vehicles, macl~inery and emipment, only 28 per cent o f the countries had taken action and
3 6 per cent intend to do ss by the end of the plan period. 36 per cent did riot stake their intention and they can be subsuned among the countries where no action is pbaonsd in the fors@eable future. This is an area which therefore deserves urgent attention by AEcicaa countries.
40. Surprisingly, the responses to $..he westion an better xraraagemeat of water resources showed t h a t only 61 per cent have already taken action. This relatively T a w percentage is surprisj.ng becaursa of the recent drought which affected a large number of African c~~ntries. The situation is even worse with respect to the improvemen6 of drainage in irrigated areas. The percentage is 5 3 . The situatior. improves in other areas related to the protection of the enviroment (67%), reorientation of the edusa"&inai system to meet development needs (64%) and lntonsification of efforts to promote mass literacy an6 adult
. .
Zearnirsg (83%). It is m-satisfactory far. arrangenenrts for xe@uctian of dependence on non-African experts (50%) but i s
satisfackary fur Bevelopment and encouragement of indigensous enterpreneurial capabilities (645). The details of tbe ssrangea~exhts for ~eG"h~cti~rn c f depene3amce on ncm-Af rican e q e ~ s are as fellows: Arrangelnazts with African countries with trained manpower s u r p l u s 8 % programmes for ursiversities and
polytechnics (33%) and the crsmbination of the above two -, approaches ( 2 5 % ) . Thus most of the arrangements for reducing
reliance on nan-African experts involve training nationals in
universities and poLytechnics both within and outside tkc country. . .
41.~ One af the areas of concern 'to African caun.%ries is the
@
managemo?nt of the econastg, It is recognised that project and pian monitoring cah:abikities are generally weak in most countries.
There is also kh.e giaestionr o f public accountability and. proper use of rsources. The questionnaire attelQpted to f i n d out what action had been taken in these areas. 89 per cent of the countries responded that action h.a6 already been taken to improve the management of the economies of the countries. 8 per cant plan to do this before 1990. The measures taken include all of the following: ensuring accountability, improving public financial management, control sf wastage and . resource misa2location and irLrtIunalizing the functinnj.ng of the public sect:,or enterprises ('72% of the countries) and improvirtg financial ananagemerit, control aE wastage and resource misallocation and ratIoriaLizing ,the EunGti~ning 06 pnb3.i~ sactor enterprises (19%)- 3 per cent 0% the countries had talcea action on improving financial managemerit, ensuring accotnntability and rationalizing the functioning of public sector enterprises, With respect to
measares to encourage the private sector, 7 8 per ~ e m t had already
0
taken action with the rest expecting to do sa by 1990. The types
of measures t a k e n to encourage 1 s p s f v s t e sector can he classified as fcllaws:
. ..
DenationaLization and privatization 3 8:
DenationaEiz&ion, privatization and investment
Incentives 8 %
Investment incentives and provision of
infrasbructare 8 %
Privatieation, investment incentives and
infrastructure 6 %
DeazatioaaLization, privatization, investment
incentives and infrastructure 8% "
Privatization an* establishnent of industrial . .
estates 3 %
Privatization, industrial estates and irzvestment
incentives 3%
Industrial estates, privatization, denationalization tird in.ve:.:t:nent il?chntivas 8 %
With respect 5,- (r.3.. ~ f f i e - ' m - - e . ;:"Y
4 8 * ..
-
. 4 ~ - ~ . t : a ~f 6:mesCi.~.. ~
r e s o u r ~ e t ; , 9 2 per c;est cyf 'me c(>.pwrfic,ri,-,.i i;ci, "'!--~e&.4,t~ . . ~ a 1 r - q . ec" --"ti-p , ai;d the renai2lin.g $3 per cent h t e n d to do sa Sy 1990. :the
- *
me8sures w have bee:?. ta&n under t h l . ~ genera2 I:eanrr:q a r e :
a> ,.
cc,r?;croPiinq f h i n c i a l . w a r t a p e~n.5 enli;rzci.ng i.>.n;:3.ncia:l ~m.nage.ner&
.*. #
(17%) ~ r j n t r o l i i n g 16aS.t@I$~~, a n h a n c h g r^r.rJr?ncial. :?,a:-,iq?mtent imd
+-..,*-: 'r .; %, ,. ~ ~'
, '
.
. g , a wtmih;*,i-igeyc o n t r o l l i n g o f i m p o r t ? ( % \
enhancing financial ;riarrlqerr~ent, c'orr"i:ro::lkligg'
.
- . . j.rnnc;%er .. Z.Y% r+.,sZ-.n-.i en*~..-ri.ng y *that esr;ent:1,aI covr;mudi.tles are r ~ j v a n 3 p p r ~ : r r * r , t r (5S2) -*.,. <..." b A $bj
firran&& snanagenent"c,_-,ontl.rollf.ni) : . ir:;;k:,z.'.il* ~~~9 i.
c;ssenf--a J c o I I 1 , ~ , o d ~ , ~ i . e a are giveri ~xia:rr:t.,tn
' s e
; iai .. +-". &.., &$CI\Scai&tna"-,~~;~s of "<:tars a:i,re&y List& aj:>t:>ltc! J...~., t- m*--,.:mr??v* -A.-.,=~" -..% ~ . " * K~$ 6 r?W
eenl: @ f ttre c o r r n t r i e s , rJ:h.:~.fs t:.i>s fc:::,:>~,>i~?q 5 . 3 : ~ ,,t?~e ~:.e:..-:::~:~!d<:,:$~~~<~~: sf c w u n t r t . e ~ , "Ibat~ a~,?~x~e .iralse:n ;ict:,io:rr ;y;nGce:..r; ei6& "";~7; : y ~ ~ i . hFlidS:eT;
7 a.
-
$ s t & effi,t:i;nt uti,:l.iz&i;.~\, (:)f d~>~r~i,s;:~,:: ? - p : - q j . i : [ ~ i : ~ ~ , a49. With r e s p e c t t o e x t e r n a l r e s o u r c e m o b f l f s a t i o n , acVAons had been "cake i n the f o l P o ~ ~ i r i r ~ s r m . n : nneasures f o r export" p r o a ~ o t i o n
(72%), d i v e r s i f i c a t i o n of trade d i . r e c t i a n incl.uding r e s e a r c i ~ i n p r o d u c t s a,nd markets and inclusion nf comnercial a t t a c h d s i n dip1wmat.i~ anissiuns [61%), measures t o i n c r e a s e f a r e i g n aid and e n s u r e e f f e c t i v e uti,lizatian of technical a s s i s t a n c e (81%) and measures t o improve investment climate (81%)
.
-
5 0 . A more d e t a i l e d breakd:o%$n of the responses is a v a i i a b ~ e i n r e s p e c t a f measures t o i n c r e a s e foreign a i d and e n s u r e s f f e a t i v e u t i l i z a t i o n of t e c h n i c a l assi,st;znce, and r t e , a ~ u r e s t o improve.I
investment climate. Under Yhc Eomterr 61' p e r c e n t of t h e c3uiatri.e~ bad t a k e n action i n a l l t h e f o l l o w i n g P a w areas.:0
b e t t e r p r o j e c t i d e s r t i f i e a t i o s r and p r e p a r a t i o n , p s e v i s i s n of competent l o c a l c o u n t e r p a r t s , meeting recurring c ~ s t caaponeltt an& i n s t i t u t i n g t e c h n i c a l as.cal.stanca and aid-ca-ss3:dinating a p p a r a t u s , 1 4 p e r c e n t had t a k e n a c t i o n i n p r a j e c t i d e n t i f i c a t i o n i provision of cmupeterat l o c a l e m r a t e r p a r t s and i n s t i t u t i u > g teehnlcaP assia'kasrce am3 a i d e a - o r d i n a t i n y a p p a r a t u s , Lass t h a n 6 p e r c e n t h a d t a k e n a c t i o n i n any of t h e r e n a i n i n g caosnbinations, To sum u p r t h e following a r e t h e p e r c e n t a g e s o f c o u & r i a s t h a t have t a k e n a c t i o n i n r e s p e c t of t h e v a r i o u s measures i i s t e d :B e t t e r project i d e n t i f i c a t i o n and p r e p a r a t i o n 92%
P r o v i s i o n of competeszt l o c a l c o u n t e q a r t s 81.P Meeting r e c u r r e n t cast component 7 2 !&
S n s t i t u t i n g t e c h n i c a l a s s i s t a n c e and a i d co-
o r d i n a t i o n apparakus 75%
T h i s seems 3.0 s u g g e s t t l a a t most corrntries a r e e3eplorirzg aZL o b i l i a i n g externid. a s s i s t a n c e .
5:L
.
secona a r e a of measures t o imprc?ve t h e irrvestrteent c l i m a t e , 3.1 e @ a n t of t h e c o u n t r i e s had t a k e n action t o LiberaElse the mnvestment. codes. T h e same p e r c e n t a g e ha& t a k e n .. . a c t i o n ,to p r o v i d e s p w i a l i n c e n t i v e s for p r i o r i t y a r e a s , 19 per cent have combined the t i m appraaches a l r e a d y L i s t e d . Pnr a d d i t i o n 3.7 per cent had t a k e n a c t i o n t o l i b e r a l i s e the investrrant codes, p r o v i d e s p e c i a l i n c e n t i v e s f o r priority a r e a s and t a x havens w h i l e 2 8 p e r c e n t have combined t h e proceding three approaches i t measures t o benefit from the, expepteltis~, r e s o u r c e s and t e c h n i c b l how-haw of muitinatiana3.s. 14 p e r cent of t h e aount:r.ies had t a k e n a c t i o n t c l i l ? e r a l . i s e t h e i ~ ~ v e s t r n z n t code, p r o v i d e s p e c i a l imceratl.xres f o r p r i o r i t y a r e a s and kmptlement m8asures toexisting industrial pLahsts, maintenance and development of feeder, access and service roads and small bridges, adoption sf price incentives for agricultural products, improvement of internal distribution channels, measures to reverse the b r a i n drain, undertaking reafforestation, controlling deforestation or soil erasicn or salination or over-grazing ar over-exp3.oita$ian, 61. With respect to macro-economic policy refoms to redress economic imbalances, 89 per cent had taken at least one action.
The Pour areas identified were exchange rate adjustment, redtuction of subsidies, public emplo snt freeze, wage and salary freeze or reduction.
62. At the s&-regional level, 5 4 per cent sf the @suntries hat3 taken action in estaklis ing regional net-works of crop protection agencies err mechanisms for co-operatian sxnung national.
early warning systems or bath.
63. En order to realise the objectives of APPER an& W-3--P
number of short/medium term measures were proposed under
Aariculturq. A31 countries had taken action, at least in one of the five areas listed. Under a t m e n t , 94 per cent had taken action in at l@ast one of the following areas
substantially the level of investment, asksblis
strengthening of agricultural credit institutions, provision 0%
incentives to encourage rural savings, land reform and Lana reclamation. Under mechanization and modernization, 83 per cent of all countries had taken st least one measure. The two measures identified were introduction, wbere appropriate, of mechanization of agriculture and develcspment, dissemination and.
encouragen~ent, of the use sf modern inputs and methods. Under storacre, 72 per cent of the countries had taken action in improving an6 expanding storage capacity. With res
research and extension services, 86 per cent of the countries had taken at least one measure out of the three listed. These are strengthening or creation of a network of agronomi
stations, provision of incentives to oxtension strengthening af laboratory facilities. Final.
small farmer supaart, 72 per cent of the CD
action in establishing assistance programmes especially women food producers and rural you
64. A number of recommendations were also made in respect of
short/mediun term measures f o r other sectors in s u ~ ~ o r t d acrriculture. All countries had taken at least m e action out of
the twelve proposed, The proposed measures were processing sf raw materials an6 intemediate inputs, development of 3.ocal capacity for project design and preparation, national training psagran?Ite, rehabilitation and maintenance of existing modes of transport and communications, production df spare parts for the aveP1Plau1, repair and naintenance af public vehicles, machinew and
ECA/'CERAD/87p'P'7
Page 22
equipment, better management af tiatas resources, impravenen% of drainage in irrigated area@, pretestion of environment, reorientation of the educational system to meat Bex~elopnent-,- needs, intensification of efforts to promote sass 3.itorrzcy ancl adult learning, arrangements for reduction a E dependence on. non- African experts, am3 developrnel3t and encouragement o f inaigernous
entrepreneurial capabilities.
!
65. Under palicy reforms, all countries had taken action inI at least one of the followin areas: improving the ~~anagament of the economy, encauraqing the private sector, fornulation of a
national population policy an6 measrures to integrate woman in the ...
development process.
I 66. Another major area o f concern to African gnverments i s . I .
I financial resource mobilization, African countries had uwde&%laXen to mobilize the greater park of the finrancia% resources repired
I
for implementation of APPER and UN-PAilERD, All countries had taken at least one action ta mobilize domestic or external resources. With respect to domestic: resources ~~obilization, 97per cent of the countries hail taken m e financial measure or adopted policies in respect of the fallowing areas: increasing '
~
savings and efficient utilization a f donestic resources. With respect to external resaurce mobilization, 94 per cent of the countries had similarlly taken action in at least one o f the following areas: measures for export promotion, diversification of trade direction including research in prodnets and markets and inclusion of commercial attacb6s in diplom~ti&: ~ n i s s i o n s or measures to increase foreign =id and ensure affective utilization , of technical assistance and measures to improve invacskment climate,67. The fifth majar area which received atte12tion in. the suwey
I was the modalities and mechanisms for im~lementation and monitorinc? of APPER and the pN-P-ERD. A19 countries had I established at least one of the fellawing mechanisms: a national
I economic council, economic review comrkission, kechnical apparatus
0
I
for national and project planning, emergency raliaf and rehabilitation and overall plan monitoring. These are national level organs. For joint monitoring i*n& foLlov-up p l a n s 5 9 perI cent of the countries had taken at least one measure in: Ad-hoc . .,
I consultation on A P W R , UNDP Roumcl Table, WorLd Bank caneultative I group, Paris Club and London Club.
68, The above picture shows that the majority of African countries are serious with their economic recovery prograpaes.
There are, however, some srees o f concern* These areas can be defined as those where o n l y half or less of the countries, that had responded to the questionnaire, had taken action, %ha first category of areas is that relating La creatiorr an&/.fhsr anaintenance of national emergency preparedness mechanism, instituting effective early-warning system, establishment o f mechanism for