MANAGE AND

ECA/MRAG/95/l 7/MR/REV. 1

ECA Muitidisciplinary Regional Advisory Group

ENHANCING THE CAPACITIES TO MANAGE SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT IN AFRICA

Advisory Report by J. BoJogun Senior Regional Adviser

Public Administration and Fiscal Affairs Edward A. Tfaghaand

Regional Adviser, Industrial and Technological Development and Promotion

ECA

338.9(6)

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E575

Addis Ababa

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ECA/MRAG/95/17/MR/REV.1

UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA MULTIDISCIPLINARY REGIONAL ADVISORY GROUP

ENHANCING THE CAPACITIES TO MANAGE SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT IN AFRICA

ADVISORY REPORT BY:

J. BALOGUN, SENIOR REGIONAL ADVISER Public Administration and Fiscal Affairs

AND

EDWARD A. TIAGHA, REGIONAL ADVISER

industrial and Technological Development and Promotion

ADDIS ABABA 1 MARCH 1995

Acknowledgement

The authors of thi s document s incerely acknowledge the collaboration and useful contribution of the staff of the PanAfrican Institute for Development in Douala, Cameroon, especially the Secretary General Dr. Bernard Kouassi, the Deputy Secretary General Mr. Anthony Hagen and the Director of Programmes Mr. Jean Gbedo.

and Title: ENHANCING THE CAPACITY TO MANAGE SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT IN AFRICA

Duration: 5 Years (1995-1999)

Programme site: PAID, Cameroon, EGA, and ECA member States

Sector and Sub-sector: Development policy (Public Sector Management, Private Enterprise Development)

Government Implementing Agencies: UNECA, OAU,

Executing Agencies: UNECA and PAID

Collaborating Agencies: OAU, AAPAM, and Commonwealth Secretariat (Management Development Programme)

Estimated Starting Date: January 1995

Donor input:

Donor input (in cash) - Local currency equivalent of US$2,889,000

Government input (in kind) - Conference facilities and logistics, expertise, data, etc.

Brief Description: The project aims at providing support to enhancing the capacity to manage self-reliance and sustainable development in Africa by encouraging the African people to internalize the process of development with a view to enabling them to be masters of their own destinies.

Introduction

1

PART I: SCOPE AND MAGNITUDE OF AFRICA'S DEVELOPMENT CRISIS

2 Magnitude of Crisis

2 The Social Dimension

. . 4

Political and Security Implications

5 The Environmental Nightmare

5 The Way Forward

5

PART II: PRIORITIES IN SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT

6 Definition of Terms

6 Self-reliance and Sustainability: a Score Card

7

PART III: PROGRAMME ON SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT: MAIN THRUSTS

12

PART IV. JUSTIFICATION

14

PART V: DEVELOPMENT AND IMMEDIATE OBJECTIVES

14 Development Objective

14 Immediate Objectives

15

PART VI: PROGRAMME ACTIVITIES AND OUTPUTS

16 IMMEDIATE OBJECTIVE 1: TO IDENTIFY THE MAJOR OBSTACLES

TO SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT AT NATIONAL, SUB-REGIONAL AND REGIONAL LEVELS.

16 IMMEDIATE OBJECTIVE 2: TO SUGGEST MEASURES (POLICY,

INSTITUTIONAL AND MANAGERIAL) DESIGNED TO OVERCOME OBSTACLES TO AND ENHANCE THE PROSPECTS FOR SELF- RELIANCE AND SUSTAINABLE DEVELOPMENT.

16 IMMEDIATE OBJECTIVE 3: TO SENSITIZE THE VARIOUS ACTORS

(POLITICAL FUNCTIONARIES, CAREER ADMINISTRATORS, PRIVATE ENTREPRENEURS, AND OFFICIALS OF IGOS AND NCOS ETC.) TO THEIR INDIVIDUAL AND COLLECTIVE

SUSTAINABLE DEVELOPMENT

17 IMMEDIATE OBJECTIVE 4: TO DEVELOP THE NECESSARY FISCAL,

MONETARY, INSTITUTIONAL AND OTHER LINKAGES BETWEEN NATIONAL AND SUPER-NATIONAL POLICIES AND PROGRAMMES

19 IMMEDIATE OBJECTIVE 5: TO PROPOSE MEASURES AIMED AT

HARNESSING AND RATIONALLY INVESTING/MANAGING EXTERNAL AND DOMESTIC RESOURCES AND CONSOLIDATING THE GAINS OF SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT

21 IMMEDIATE OBJECTIVE 6: TO FOCUS THE ATTENTION OF THE

PROJECT TARGET GROUPS ... ON MEASURES DESIGNED TO PROMOTE JUDICIOUS ALLOCATION OF RESOURCES, IMPROVE PRODUCTIVITY, AND GRADUALLY ELIMINATE NEGATIVE MANAGEMENT PRACTICES AS WELL AS ETHICAL VIOLATIONS.

22 IMMEDIATE OBJECTIVE 7: TO INTEGRATE ENVIRONMENTAL

CONCERNS INTO DEVELOPMENT PLANNING PROCESS AND COLLABORATE WITH TARGET GROUPS IN DEVELOPING ENVIRONMENTAL ACCOUNTING METHODS.

23 IMMEDIATE OBJECTIVE 8: TO PROPOSE A NEW DEVELOPMENT

PLANNING FRAMEWORK WHICH ENABLES PARTICIPATING COUNTRIES TO MONITOR THE PERFORMANCE OF THEIR ECONOMIES AGAINST THE INDICATORS OF SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT.

24

ANNEX A 27

PART VII: PRECONDITIONS FOR SUCCESSFUL IMPLEMENTATION OF PROGRAMME

29

ANNEX B

Job Description: REGIONAL PROGRAMME DIRECTOR ... 31

ANNEX C

Job Description: NATIONAL PROGRAMME DIRECTOR ... 33

ANNEX D: OBJECTIVE TREES OF THE PROJECT 3 6 ANNEX E: PERFORMANCE INDICATORS JOINT UNECA/PAID/OUA PROJECT.44

ANNEX F: SUMMARY OF INDICATORS 90

BCA/MRAG/95/17/MR/REV.X Introduction

1. In the 1960s when many African countries attained their independence, it was generally believed that the goals of economic prosperity, improved standards of living, and political stability were within the reach of the new states. Indeed, with the examples already set by the former metropolitan powers in the socio political and technological fields, all the emerging nations of Africa needed to do to become "modern" and developed" was to operate the time-tested development models bequeathed by the departing colonial authorities. This is the origin of the "myth of modernization" - the belief that the problems of under-development could be effectively tackled by transplanting development-oriented values, institutions and practices from societies termed

"developed" to those societies classified as under-developed.

2. By the early 1980s, the myth of modernization came under close scrutiny. The factors accounting for a critical appraisal of an essentially uni1inear view of development include the deepening socio-economic crisis, and the increasing fear of the marginalization of Africa in global economic relations. As one African country after the other grappled with balance of payments difficulties, budget deficits, debt burdens, and the consequences of reduced expenditure on social services and infrastructural facilities, the idea began to gain ground that the strategy which transformed the economies and societies of western Europe and America might not work in, and for, Africa. In other words, the way out of Africa's socio-economic crisis lay not in accelerating the pace of modernization (which in effect meant "westernization"

for some and "sovietization" for others) but in pursuing a policy of national and collective self-reliance. This is the message which came out clearly in the Monrovia Strategy (1979), the Lagos Plan of Action (1980) , the Final Act of Lagos, and the African Alternative Framework to Structural Adjustment Programmes (AAF-SAP) 3. While the concept of self-reliance has been well-articulated in the documents mentioned earlier, its operationalization in policy and programmatic terms seems to have received little attention. In the meantime, many African countries have been groaning under the burdens of structural adjustment. The immediate effect of the IMF/World Bank supported measures are fairly well- known — reduced allocations to social services and economic infrastructure, lowered standards of living, social unrest, and political instability. The long-term impact is much more difficult to assess. While the advocates of structural adjustment see a light at the end of the long, dark tunnel, the record of achievements to-date does not support an optimistic projection.

Indeed, in contrast to the robust growth of economies in other regions of the world (particularly, the developed market economies of Western Europe, Japan, as well as South and East Asia) the African economies appear to be headed down-hill. If the present trend continues, the peoples of the continent will reach the 21st

century poorer, hungrier, more debt-ridden, and less governable than they were a century or two before.

4. It is precisely this worst-case scenario that has informed the decision to launch a major - perhaps, overly ambitious - programme aimed not so much at charting a new, distinctly African path of structural adjustment and transformation, as in suggesting practical measures and guidelines for implementing the agreed strategies of self-reliance and sustainable development.

PART I: SCOPE AND MAGNITUDE OF AFRICA'S DEVELOPMENT CRISIS

5. At no time is a project seeking to enhance the capacity to manage policies and programmes of self-reliance and sustainable development in Africa more relevant than today. While the continent is faced with complex problems on all imaginable fronts - social, economic, political, and environmental - the resources needed to tackle these problems appear to be diminishing at an alarming rate.

6. The dream of an Africa marching from poverty to affluence was dreamt in the final hours of colonial rule and at the dawn of independence. By the late 1970, this dream had turned into a nightmare. Today, the cumulative effects of inappropriate policies and, in some cases, acts of God, are noticeable in practically

every sphere of life - balance of payments difficulties, widening current account and budget deficits, increasing debt-service

obligations, the decline of the welfare state and the consequent

reduction in social services and infrastructural expenditure, growing unemployment, rising cost of living, steady decay of public service institutions and values, increasing rate of social

mobilization and breakdown of law and order. Africa's socio- economic crisis has been confounded by natural disasters such as droughts, desertification and soil erosion, and by human assaults on the eco-systems.

Magnitude of Crisis

7. For a brief period - certainly up to the end of the 1960s and

the beginning of the 1970s - Africa rightly earned the appellations

of a "developing" region. Threats of stagnation became noticeable after the oil shock of 1973. Sub-Saharan Africa recorded an annual GDP growth rate of 6.4 per cent and per capita GDP of US$560 between 1965 and 1973 - a performance which is comparable to that of other developing regions and more impressive than that of South Asia. After 1973, the picture changed dramatically. In contrast to the growth trends in the rest of the world, sub-Saharan Africa's GDP growth rates assumed a down-ward slide from the early 1980s.

With the exception of 1985 when a rate of 2.2. per cent was

recorded, Africa's economic performance during the decade - the

Page 3

"lost decade" - was at best, lack-lustre, at worst, negative. The achievement in the first three years of the 1990s points to a continuation of the discouraging trend of the 1980s. ECA's estimates of developing Africa's growth rates within the period range from 2.3 to 3.3 per cent. The World Bank's figures vary from 1.6 per cent in 1990 to 3.5 per cent in 1993, while the IMF recorded a percentage of 1.1 for 1990 and 2.2 for 1993.

8. No matter the source that is considered most accurate, one picture that emerges from the figures so far released is that of a region that is growing less rapidly than its immediate requirements and long-term development needs. For it to feed its population (estimated to be growing at the rate of 3 per cent), recover the ground lost in the 1980s, meet its external debt obligations, and, above all, return to the path of sustainable and self-sustained development, the African economy has, according to the United Nations New Agenda for the Development of Africa (UN-NADAF) to grow at a rate not lower than 6 per cent.

9. When compared with recent achievements, this growth target of 6 per cent may appear unrealistic. Yet, this is not an impossible feat. Even in the late 1970s and early 1980s when the precipitate decline in economic performance became noticeable, a few African countries managed to register modest gains. Thus, between 1970 and 1979, these countries - the high-growth countries - stood out as exceptions to the general rule of economic stagnation. Among them were Cote d'lvoire (6.7 per cent), Kenya (6.5), Malawi (6.3), Cameroon (5.4), and Nigeria (9.6 per cent). It is true that some of the then high-performing economies (e.g. Cameroon and Nigeria) owed their achievement to the windfall from petroleum, and that as soon as the oil market became saturated, the basic structural weaknesses of these economies manifested themselves.

10. Structural and institutional rigidities are, indeed, the bane of the African economies. As a result of the economies' overwhelming dependence on a narrow range of export commodities and the failure to encourage product and market diversification, they (the economies) are susceptible to the vicissitudes of the international economic environment. A slight tremor in the industrialized economies frequently translates into an earthquake in Africa. As an illustration, the collapse of African commodity prices as from the 1980s stemmed directly from the recession in the industrialized countries (the destination of the bulk of Africa's primary commodities). This recession accounted for the fall in the demand for, and the stock-pilling of the commodities - among them, cocoa, coffee, hides and skins, rubber, tin ore, copper and other metal products. Even the oil-exporting countries (Algeria, Cameroon, Gabon, Libya, and Nigeria) were not shielded from the impact of the sluggish growth of the world economy. The spot price of oil, for instance, fell from $27 a barrel in 1985 to US$10 in mid-1986.

11. The steady deterioration in Africa's terms of trade triggered off a process of negative resource transfers. This process was accelerated by the rising prices of manufactured imports. It has been estimated that the average dollar price of developing countries' imports of manufactured goods in the mid-80s rose by 18 cents. In the case of Africa, the situation assumed an alarming form because the bulk of the imports were not in aid of self- sustained and sustainable development. The rising import bill indicated Africa's growing appetite for consumption items, especially, commercial food imports and food aid, luxury goods, medical supplies, raw materials, energy-consuming and environmentally costly machinery and equipment, as well as spare parts. Where capital goods were imported for development purposes, steps were never taken to develop the indigenous capacity to operate, maintain, and produce local substitutes for the imported technology. As a result, Africa has had to pay huge sums for

"invisible imports", i.e. turn-key projects, new technology, management of the projects, and the replacement of obsolescent technology.

The Social Dimension

12. The decline in Africa's economic performance has triggered off a major social and human development crisis. Subsequent to the reduced inflow of resources, a number of African countries were obliged to introduce stringent austerity measures. Thus, at the insistence of the IMF and with the support of the World Bank, these countries implemented structural adjustment programmes (SAPs) the main elements of which are reduction in the size of the public sector, reduction in public expenditure, imposition of curbs on monetary and credit expansion, withdrawal of subsidies and statutory transfers, elimination of price controls, privatization of state-owned enterprises, and devaluation of currency.

13. The combination of the fiscal, monetary, policy and institutional measures (introduced under structural adjustment programmes) adversely affected the quality of social services and the standard of living of the people. In specific terms, the public sector aspects of the reform programme resulted in mass retrenchments - with no guarantee that the equally besieged private sector would be able to absorb the swelling ranks of the unemployed. The reduction in public expenditure - particularly, social services expenditure - resulted in the progressive decline in the quality of services such as education, law enforcement, environmental sanitation/conservation, health and medical care, transportation, and water supply.

14. Credit restrictions have raised the cost of transactions on the capital market. The frequent currency devaluations have, by leading to instability on the foreign exchange market, eroded investor confidence. When the inflationary effect of devaluation

Page 5 on domestic price levels is considered along with the excruciating impact of the withdrawal of subsidies and price controls, one begins to see the fuels for a major social conflagration.

Political and Security Implications

15. As argued by the advocates of structural adjustment, the short-term draconian measures are necessary to rectify the structural imbalances in each economy. They are like the surgeries carried out to remove malignant tumours. However, judging by the conditions of most of the "patients", the effectiveness of structural adjustment cures is a highly controversial issue. The merits and demerits of SAPs are beyond the scope of this exercise.

All that can be said is that the increasing rates of social mobilization and political instability have been attributed partly to SAPs and partly to the growing discontent with the quality of governance in Africa. Thus in addition to the anti-SAP riots, it is possible to cite cases of tension within the African body- politic that are attributable to the clamour for democracy, accountability and transparency. The resultant political conflicts have been effectively managed in some countries, but allowed to get out of hand in others. Liberia and Somalia clearly illustrate the situations in which political and institutional decay preceded the collapse of civil society.

The Environmental Nightmare

16. Faced with the resource constraints and the growing demands on political systems, policy-makers have been pressurized into taking environmentally regrettable decisions. Some of these decisions are simply errors of omission. For instance, the implications of the population-resource gap were not, until recently, part of the national policy agenda. Agricultural development projects have been undertaken without regard for the consequences of over cropping and land degradation. Industrialization schemes have been promoted but the environmental "fall-outs" (such as toxic waste duping, pollution of water resources and destruction of animal, plant and marine life, ozone depletion, de-forestation and the reduction in bio-diversity) have been conveniently overlooked.

Import restrictions on cheap, but energy-guzzling and environmentally hostile second-hand motor-vehicles have been lifted or eased. Above all, little is done to revive or promote indigenous, environmentally friendly and foreign-exchange conserving initiatives in areas such as food and agriculture, herbal medicine, textiles and garments manufacture, pottery and ceramic, leather and hides refinement, and metal fabrication.

The Way Forward

17. Africa's ability to find answers in the short-term, to its structural problems, and in the long-run, to the challenges of

self-sustained and sustainable development/ hinges on how it

approaches the most deadly crisis - that of supply and demand. The logic is simple yet most frequently mis-understood in the development policy equation. The region's growing indebtedness, as

every-one acknowledges, is attributable to the persistent failure

to produce, at the right price, time and place, what the rest of the world wants. Coupled with this contempt for the global consumer market is Africa's tendency to enter the supply market

blind-folded. In both senses, it is a captive of external

conditions.

18. While it is generally believed that the way out of the crisis lies in self-reliance - especially, national and regional, collective self-reliance - there is as yet no clear guide on how to

embark on this difficult journey. The most authoritative source on the subject to-date is the Lagos Plan of Action (1980) and the

first attempt to translate the LPA's precepts into policy and

programmatic language is the African Alternative Framework to

Structural Adjustment Programmes (AAF-SAP). Neither the LPA nor

AAF-SAP seemed to have succeeded in accelerating the movement

towards self-reliance and, for that matter, sustainable

development.

PART II: PRIORITIES IN SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT

19. The analysis in the preceding paragraphs leads to the

conclusion that the prospects for Africa's economic recovery in the

short-run and structural transformation in the long-term, hang on

the continent's implementing a clearly defined policy_ of self- reliance and sustainable development. Implicit in this is the assumption that Africa's poor economic performance to-date is, to a large extent attributable to the adherence to policies which are

neither oriented towards self-reliance nor sustainable development.

This raises questions of definition - particularly, the definition

of self-reliance and sustainable development.

Definition of Terms

20. While the concept or doctrine of self-reliance has been exhaustively discussed at policy meetings and learned conferences,

'sustainability' has only recently entered the vocabulary of

development, and is, for that reason, subject to conflicting

interpretations. For some, sustainable development is that concept which sums up the contemporary preoccupations with our planet's

long-run viability. For others, the term has a broader meaning.

Particularly from the point of view of the less-developed nations, sustainability provides an opportunity not only to re-define

'development' but also to come to an agreement on how its benefits

and costs could be equitably shared among the rich and the poor.

ECA/MRAG/95/17/MR/REV.1 Page 7 21. How do the terras 'self-reliance' and 'sustainable development' relate to each other? For the purpose of this project document, the former denotes an effort which is made to promote, not necessarily an economic system's self-sufficiency and absolute

independence - a condition of "autarchy - but its sustainability

and growth over a period and in an increasingly complex and interdependent world. Self-reliance has to do with the process of internalizing the forces of change and transformation. It seeks to

promote a country's control over its economic and social destiny by

encouraging the development of indigenous factor and product markets. It thrives on the participation of the mass of the people

in economic and political decision-making.

22. The underlying goal of self-reliance, therefore, is sustainability which is defined to embrace broad, developmental,

and specific, environmental, concerns. Thus, from this project document's view point, the policies, programmes and projects embarked upon within an economic system may be deemed sustainable

if they support and reinforce each other. In specific terms, development becomes sustainable if policies and programmes perform the following welfare, or pareto-optimal functions:

(i) fulfilment of society's basic needs;

(ii) enhancement of opportunities for community

"ownership" and implementation of development schemes;

(iii) wide diffusion of benefits and equitable sharing of costs;

(iv) encouragement of indigenous cultural self-assertion and intellectual growth;

(v) substantive transfer of technological "know-how"

and managerial skills;

(vi) motivation of excellence and value-adding (capital formation) pursuits;

(vii) employment generation;

(viii) poverty alleviation;

(ix) revenue mobilization and maintenance of constancy of resource flow;

(x) incorporation of environmental safety valves in development schemes.

Self-reliance and Sustainability: a Score Card

23. If the preceding definition provides the litmus test of self-

reliance and sustainability, how have the various African countries

performed so far and what measures need to be introduced to achieve

the desired results? As indicated in the subsequent analyses, Africa's record in implementing self-reliant and sustainable development policies leaves much to be desired-

Basic Needs

24. While generalizations tend to be misleading and empirical studies of approaches in different countries are called for, it is safe to conclude that the 'basic needs' focus of development,

dating back to the 1970s, remained largely at the level of rhetoric

rather than action. It is true that resources were invested in infrastructural development projects as well as human-oriented services. However, it is open to question whether the bulk of

these projects and services were undertaken to make a political

statement or in response to the priorities suggested by comprehensive and empirically based cost-benefit analyses.

25. In any case, the result of the neglect of some target groups in the past is currently manifesting itself in different forms - e.g. in the form of contradictions such as rural decay, unplanned growth of urban areas, the collapse of institutions (as a result of obsolescence and/or lack of maintenance), the break-down of infrastructural facilities (including those ones acknowledged as luxury projects), and the rising population of the infirm, the unemployed, the poor and destitute, and the uncared for street children, as well as in the devastating impact of drought and desertification), In contrast to the neglect of human and community-oriented projects is the emphasis accorded to prestigious - the so-called modern - amenities. This bias towards the spectacular is reflected in the disproportionate amount of resources allocated to capital-and technology-intensive projects

such as those in the fields of telecommunications, data processing,

and civil aviation.

Community "Ownership"

26. Elite-criented projects continue to be given priority over community-sponsored activities largely because of the top-down approach to development planning and implementation. Until recently, decentralization was supported only where it reinforced central government control over local communities. By the same token, state ownership of productive enterprises was accepted as the major, if not the only, tool of "modernization".

27. The on-going socio-economic crisis has revealed the weakness of excessive centralization of administrative, political and economic decision-making. Decentralization to lower-level authorities, empowerment of women and community action groups, and popular participation are now familiar jargons in the discourse on development. Yet, the journey towards sustainability (in terms of community "ownership" of programmes and projects) is far, and the pace, slow. By and large, development schemes are still initiated by executive fiat or imposed as a condition for external financial assistance. As a result the local grass-root support that is

Page 9

essential to the schemes' successful implementation is most often lacking.

Benefits and Costs

28. Development essentially entails bearing some costs in expectation of certain benefits. However, in view of the

overwhelming bias for elite-oriented projects and the neglect of basic needs, and considering the price-distorting effect of the excessive centralization of decision-making referred to earlier, it is not unlikely that a few reap the fruits of development leaving the masses to pay the costs.

29. In particular, the costs of structural adjustment programmes fall heavily on the weak and poor sections of society - women, children, those on fixed incomes as well as those who have no

income - simply because they have no jobs. The costs of industrial

pollution and toxic wastes dumping are passed by a few factory owners as externalities to be accounted for by society as a whole.

A formula is yet to be worked out to charge environmental costs to company accounts and plough back the resources into employment- generating, environmental clean-up or conservation programmes.

Culture and Intellectual Growth

30. Development most frequently necessitates aspiring towards new goals and abandoning some of the ways of the ancestors. All the same, the need for innovation should not be taken as a licence to disparage a "developing" people's culture and devalue their

"native" intelligence. One tragic error committed in the previous efforts to "develop" Africa is to take a unilinear view of the exercise - i.e. by assuming that the path followed by the industrialized societies of the west must necessarily be trodden by the new nations seeking modernity.

31. The experience of Japan and the Newly Industrialized Countries (especially Taiwan, Hong Kong, Singapore and South Korea) underscores the fact that a high degree of cultural and

intellectual autonomy is a prerequisite for the sustainability of a development paradigm or strategy. A people lacking in collective self-confidence may "import" development and all the gadgets needed to make it work, but it will be unable to fit the pieces together and make them work for its own benefit.

Technology Transfer

32. A development scheme can still be sustainable even if it originates from external sources. However, it should fulfil

another condition - i.e. it should ensure that the skills for

executing/managing, and for replicating or up-grading it, are not permanently beyond the reach of the recipients. Unfortunately,

this is one condition which many a development project has found difficult, if not impossible, to meet. The result is that the survival of many donor-assisted projects too often depends on the continued retention of foreign experts and the setting aside of scarce foreign exchange for their remuneration.

33. It is difficult to say whether the failure of "technology

transfer" arrangements is by accident or design. Empirical studies have, nonetheless, revealed that in negotiating technical assistance agreements, the essential steps to follow in ensuring substantive technology transfer are seldom spelt out in detail.

Even where the donors appear willing to transfer new technology, the recipients rarely follow up the offer with adequate institutional and managerial support. Either the implementing agency is not established or it is not properly staffed. The so- called counterpart arrangements have also not worked in a satisfactory way as the local counterparts tend to be moved out to other jobs, frustrated by lack of incentives, or discouraged from

trying out new ideas.

Motivation to Excel

34. Development becomes truly sustainable where every citizen is challenged to give of his/her best in any chosen field. In such a situation the burden of, or the responsibility for, the survival and growth of the economy is enthusiastically accepted by all the

actors.

35. For some curious reasons, neither the public nor the private sector in Africa has evolved a strategy aimed at galvanizing and

motivating the continent's reservoir of human resources for

productivity and wealth creation. The public sector is particularly notorious for systematically violating the principles of merit and for picking mediocres in preference to genuine

achievers.

36. It must also be noted that as a result of the deepening socio- economic crisis, pay levels have lagged terribly behind the cost of living. This has encouraged moon-lighting, divided loyalty and

other ethical violations.

Employment Generation

37. A stagnant economy is not a sustainable one - at least, not from the point of view of the teeming population of the unemployed, underemployed or laid off persons. Unemployment has indeed become

a major socio-economic and political issue in Africa. A decade or

so ago, the problem was what to do with the swelling ranks of

unemployed secondary school leavers. The net has widened in recent

years to include university graduates.

Page 11 38. Perhaps with the new emphasis on the enhancement of entrepreneurial capacity in the formal and informal private sector, a credible solution will be found to the problem of unemployment.

Poverty Alleviation

39. While no economy has succeeded in completely eradicating poverty, a genuinely developed one will, at least, attempt to

combine capital accumulation with equity and redistributive

objectives. With particular reference to Africa, poverty is an issue which require urgent attention. This is reflected in the continent's usually poor performance on the HID Index. Only a small percentage of the people in rural areas have access to the

basic social and infrastructural facilities - e.g. education,

health, water, electricity, motorable roads, banking and credit facilities, postal and telecommunications services, and police protection, to mention some essential areas not covered by the HID Index.

40. Life in Africa's urban areas is not as comfortable as the romantic comparisons with rural settings will make one believe.

Water shortage, electricity power shut-downs, and uneven policing of crime-prone neighbourhoods are among the horrors facing urban dwellers. These conspire with high costs of living and steady erosion of income to incite even the most law-abiding citizen to anti-social behaviour.

Constancy of Resource Flows

41. Finding the financial resources to tackle the preceding problems is the penultimate test of sustainability. Whether the reference is to the small, community-based projects or the gigantic national or regional programmes, and regardless of the number that stand to gain or lose as a result of the various development schemes, the decisive factor is the cash flow.

42. As pointed out in Part I, Africa's major headache in recent years is how to maintain a constant flow of development resources.

The situation is exacerbated by the external donors' increasing interest in the former Soviet Union and countries of Eastern Europe - a development which is interpreted as a loss of interest in Africa and has sparked of a feeling of the "marginalization" of Africa. It is not generally recognized in policy circles that this fear - may, this phobia - of being left alone is more deadly than Africa's socio-economic crisis. Apart from leading to paralysis on the policy and managerial fronts, "marginalization" now becomes a barrier to the evolution of self-reliant and sustainable development policies.

43. In any case, aid will not be diverted from Africa simply on

the basis of commitments. It gets diverted only at the stage of

disbursements - i.e. when sound analysis indicates that the recipient will benefit from it and relieve the donors of further

liabilities. It is now up to Africa to demonstrate that it is

deserving of external assistance. Embarking on a path of self- reliance and sustainable development is the only viable option.

44. As an antidote to the currently over-powering feeling of helplessness, the various countries of Africa need to explore and

optimally manage domestic sources of capital. Apart from the

latent energy of the private sector and the NGOs, the public sector's reserve of human resources should be enlisted in the battle for economic survival and structural transformation.

Environmental Harmony

45. The wealth creation pursuits no doubt entail incurring some

costs - perhaps, risks. The viability of the planet (Earth) is one

consideration which we cannot afford to ignore as we seek to

eradicate poverty and promote equitable distribution of income.

4 6. In a way, Agenda 21 encapsulates most of the contemporary

positions on the sustainable development of the earth. It embodies the developing nations' concerns for equity in access to the resources for poverty alleviation as well as the industrial

countries' environmental priorities.

47. However, like all consensus documents, Agenda 21's substantive achievements will be tested only when the purpose and intent of

specific clauses are contested. It should be recalled that the industrial countries of the North expressed reservations about the

poverty alleviation and income redistribution provisions. For their own, the developing countries took note of the fact that the Conventions on Global Warming and Biological Diversity as well as the Montreal Protocol for the protection of the ozone layer and the oceans mostly reflected the North's concerns and priorities.

48. In view of man's common destiny and the joint responsibility for the preservation of earth's ecological harmony, Africa would need to continue to pursue the aspects of Agenda 21 which underscore equity in the sharing of costs and benefits of

development.

PART III: PROGRAMME ON SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT: MAIN THRUSTS

49. Taking into account the issues raised in the preceding

analyses, this programme will endeavour to sensitize policy-makers

and senior managers to the challenges of, as well as approaches to,

self-reliance and sustainable development. In specific terms, the

project teams working in close collaboration with national, sub-

Page 13

regional and regional institutions, will seek to promote a new approach to development planning - one that takes a strategic view

of problems and possibilities in self-reliant and sustainable

development.

50. Institutional rehabilitation and re-dynamization activities will also be vigorously pursued as part of the project's

contribution to the short-term economic recovery efforts and the

long-term sustainability of policies. To this end, the constraints on the efficiency and effectiveness of public and private sector

institutions will be targeted, and appropriate remedial measures proposed.

51. Within the limit of available resources, the programme is

expected to comprise national, sub-regional and regional

components. Regardless of the level at which the programme is

implemented, broadly four types of activities will be undertaken:

(i) Empirical survey of socio-economic conditions and identification of strategic options (this will culminate in the preparation of national/sub-regional/regional

economic recovery and sustainable development Working

Papers):

(ii) National/sub-regional/regional policy dialogues and roundtables (at which the key issues in the Working Papers will be brought to the attention of policy-makers, especially those located at the presidency, ministry of finance and planning, the central bank, chambers of commerce, and secretariats of non-governmental and voluntary development associations);

(iii) Field work (in the form of policy seminars, management workshops, institution and capacity building,

consultancies/advisory missions, and periodic evaluation

of problems and achievements);

(iv) Desk audits and on the job counselling (proceeding from the assumption that, in the final analysis, it is the aggregate micro-level decisions which decide the fate of macro-development plans, the project will go down to the level of the operators and propose measures to strengthen the supervision of their activities).

PART IV. JUSTIFICATION

52. The project's justification lies mainly in its coverage of a new area and the novel approach it applies in handling the various topics.

53. While Africa's socio-economic crisis has received a lot of

attention, and self-reliance has been repeatedly mentioned as the only viable option, no effort has been made to design a project

setting out the actions to take to promote self-reliance.

54. By linking the concept (of self-reliance) to sustainable development ( a recent discovery) the project not only suggests new operational definitions of development but outlines the steps to follow in meeting new challenges. If the project is implemented as

designed, it will certainly have a direct and measurable impact on development planning, national income accounting, institutional revitalization, and the performance of agencies in the public and

private sectors.

55. The intended beneficiaries of the programme are the peoples of

the continent. The target groups are the intermediaries between

the programme and the people - i.e. the policy-makers and managers

in the public and private sectors, IGOs, NGO, and VDOs.

56. The programme's other unique features include the include the involvement of the beneficiaries in problem identification, resource mobilization, project implementation, monitoring and

evaluation.

PART V: DEVELOPMENT AND IMMEDIATE OBJECTIVES Development Objective

57. The programme's strategic objective is to forge a new regional

coalition dedicated to the cause of self-reliance, sustainable

development, and structural transformation. For too long, the

major initiatives for the development of the African continent have

emanated from external sources. The project's over-riding goal is

to internalize the process of development and encourage Africans

form all walks of life to control their own destiny. Since the

majority of Africans live in the rural areas, rural development is

the cross cutting sectoral issue in this project.

Page 15

Immediate Objectives

58. In pursuance of the development objective, the programme

seeks, in the short and medium-term, to:

1. Identify the major obstacles to self-reliance and sustainable development at the national, sub-regional and

regional levels;

2. suggest measures (policy, institutional, managerial, etc.) to overcome the obstacles to, and enhance the prospects for, self-reliance and sustainable development;

3. sensitize the various actors (political functionaries, career administrators, private entrepreneurs, and officials of IGOs and NGOs etc.) to their individual and collective responsibilities for optimizing the benefits of policies and programmes of self-reliance and

sustainable development;

4. Develop the necessary fiscal, monetary, institutional and other linkages between national and supra-national

policies and programmes;

5. Propose measures aimed at harnessing and rationally investing/managing external and domestic resources, and at consolidating the gains of self-reliance and

sustainable development;

6. Focus the attention of the project target groups (government, private sector, R&D agencies, IGOs, NGOs, VDOs) on measures designed to promote judicious allocation of resources, improve productivity, and gradually eliminate negative management practices as well

as ethical violations;

7. Integrate environmental concerns into development planning process, and collaborate with target groups in developing environmental accounting methods;

8. Propose a new development planning framework which enables participating countries to monitor the performance of their economies against the indicators of

self-reliance and sustainable development.

PART VI: PROGRAMME ACTIVITIES AND OUTPUTS

59 Proceeding from the immediate objectives, the programme anticipates a number of activities in the form of research, policy

dialogues and roundtables, seminars and training «rkshops

consultancy and advisory services. An attempt is made in tne subsequent paragraphs to identify the activities to be undertaken and ^outputs to produce under each immediate objective.

IMMEDIATE OBJECTIVE 1: TO IDENTIFY THE MAJOR OBSTACLES TO SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT AT NATIONAL, SUB- REGIONAL AND REGIONAL LEVELS.

1.1. Output 1

National/sub-regional/Regional Economic **cf™** an.d

sustainable Development Working Paper(s). (Reports or

Baseline Studies) Activities

1 1.1. Sectoral Desk Study to assess the ?rog^8fn^t«lf- towards, and the problems encountered in attaining self- reliance and sustainable development at national, sub- regional and regional levels. (Baseline study on progress and problems in self-reliance and sustainable

development.}

1.1.2. Data analysis

1.1.3. Report writing

OBJECTIVE 2: TO SUGGEST MEASURES (POLICY, NE> MANAGERIAL) DESIGNED TO OVERCOME OBSTACLES

Shb prospects for self-reliance and sustainable

development.

2.1 Output 1

National/sub-regional/Regional Memorandum on self-reliance and Sustainable Development (summary of the conclusions of Policy Dialogues and follow-up actions).

2 i iACtlVpolicy Dialogues/Roundtables with National Authorities

and Participating institutions (to discuss highlights of

the findings in Working Paper).

Page 17

2.1.2. Policy Dialogues with Sub-regional/Regional Bodies and

Participating Institutions (highlights of Working Paper's findings).

IMMEDIATE OBJECTIVE 3: TO SENSITIZE THE VARIOUS ACTORS (POLITICAL FUNCTIONARIES, CAREER ADMINISTRATORS, PRIVATE ENTREPRENEURS, AND OFFICIALS OF IGOS AND NGOS ETC.) TO THEIR INDIVIDUAL AND COLLECTIVE RESPONSIBILITIES FOR OPTIMISING THE BENEFITS OF POLICIES AND PROGRAMMES OF SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT

60.

3.1 Output 1 Research Reports 3.1 Activities

3.1.1 Baseline study of the Role and Limitations of the Political Class in Promoting Self-reliance and

Sustainable Development (at each level, i.e. Local,

National, Regional) and Proposals for Change.

3.1.2 Baseline Study of the Strengths and Weaknesses of the Public Sector as an Agent of Self-Reliance and Sustainable Development; Proposals for Improvement in

Performance.

3.1.3 Baseline Study of the Strengths and Weaknesses of the

Formal Private Sector as an Agent of Self-reliance and Sustainable Development: Proposals for Improvement.

3.1.4 Baseline Study of the Strengths and Weakness of the Informal Private Sector as an Agent of Self-Reliance and

Sustainable Development: Proposals for Improvement.

3.1.5 Baseline Study of the Strengths and Weaknesses of the Indigenous NGOs and Voluntary Development Organizations:

Proposals for Enhancement of their Capacity for Self-

reliance and Sustainable Development.

3.1.6 Baseline Study of the Strengths and Weaknesses of

Democratically Elected Local Government as an Agent of Local Self-reliance and Sustainable Development: a Reform

Proposal.

3.1.7 Baseline Study of the Strengths and Weaknesses of Public

Enterprises: Proposals for Improvement.

3.1.8 Baseline Study of the Strengths and Weaknesses of Sub-

regional IGOs: Enhancing their Capacity for Self-reliance

and Sustainable Development.

3.2 Output 1 Seminar workshop reports and regulations Activities 3.2

3.2.1 Orientation Seminars for the Press to underscore its role in mobilizing the people for self-reliance and sustainable development;

3.2.2 Policy Dialogues (based on the findings of Activity 3.1;

3.2.3 Policy Seminars and Workshops for Senior Government officials and Private sector Representatives (based on the findings of Activity 3.2)

3.2.4 Policy seminars and workshops for Business executives and

representatives of the government and the Public Services - based on the findings of Activity 3.3

3.2.5 Policy seminars and workshops for Small and Medium-scale

Entrepreneurs - based on the findings of Activity 3.4 3.2.6 Policy Seminars and Workshops for the Board and

Management of NGOs and VDOs- based on the findings of

Activity 3.5

3.2.7 Pol icy seminars and workshops for community leaders,

councillors and Senior Local Government Officials - based on the findings of Activity 3.6

3.2.8 Performance improvement workshops for the Board and Management of Public Enterprises - based on the findings

of Activity 3.7

3.2.9 Policy seminars and workshops for sub-regional and Regional IGOs - based on the findings of Activity 3.8.

3.1 Output 1. Mission Reports and Recommendations on

Institution/Team-building Advisory Missions Activities

3.3.1. Advisory Missions on the Policy imperatives of Self- reliance and sustainable Development;

3.3.2. Advisory Missions on the Institutional and Managerial

Responses of the Civil Services to the challenges of Self-reliance and sustainable Development;

3.3.3. Advisory Missions on enhancing the capacity of the Private Sector for self-reliance and sustainable Development;

Page 19

3.3.4. Advisory Missions on enhancing the capacity of indigenous

small - and Medium-scale Businesses for self-reliance and sustainable Development;

3.3.5. Advisory Missions on enhancing the capacity of indigenous NGOs and VDOs for self-reliance and sustainable

Development;

3.3.6. Advisory Missions on Enhancing the capacity of Local

Government for Self-reliance and Sustainable Development;

3.3.7. Advisory Missions on Enhancing the capacity of Public

Enterprises for self-reliance and sustainable Development - based on 3.7 and 3.7 (A);

3.3.8. Advisory Missions on strengthening the Trade, Monetary and Payments links within and among sub-regions - based

on 3.8 and 3.8 (A);

IMMEDIATE OBJECTIVE 4: TO DEVELOP THE NECESSARY FISCAL, MONETARY, INSTITUTIONAL AND OTHER LINKAGES BETWEEN NATIONAL AND SUPER-NATIONAL POLICIES AND PROGRAMMES

4.1 Output 1 Mission Reports on the Establishing National Focal regional/Regional

(Ministries/Departments Cooperation)

Feasibility of Points for sub- Programmes

of Regional

Activity 4.1.1 Advisory Missions to Member-States of IGOs on the

Feasibility of Establishing Ministries/Departments of Regional Cooperation at National level (to,

among other things, serve as institutional focal

point for intra-African cooperation, enhance the market accessibility of States, and optimize the benefits of their participation in integration schemes).

4.2 Output 1 Mission Reports on Coordination of National

Policies and Programmes in support of the Abuja Treaty

Activity 4.2.1 Advisory Missions on coordination of National Programmes and Policies in support of the Abuja

Treaty.

4.3 Output 1 Mission Reports on Cross-border Trade in

Agricultural Commodities

Activity 4.3.1 Advisory Missions on Cross-border Trade _ in Agricultural commodities (including infrastructural, customs and payments arrangements) 4.4 Output 1 Mission Report on Harmonization of sectoral

policies and programmes

Activity 4.4.1 Advisory Missions on the Harmonization of Sectoral policies and programmes (Food and Agriculture, Environment, Transport, Energy, External Debt,

Trade, Customs, Money and Payments

4.5 Output 1 Mission reports on a concentric approach to

Market Accessibility

Activity 4.5.1 Advisory Mission on a concentric (National/sub-

regional/Regional/South-South/Global) Approach to Market Accessibility.

4 6 Output 1 Reports and Recommendations of Seminars on

coordination of National Policies & Programmes in support of Abuja Treaty

Activity 4.6.1 Seminars on the coordination of National Policies and Programmes in support of the Abuja Treaty (for

Public and Private Sectors)

a 7 output 1 Seminar Reports & Recommendations on cross- border Trade in Agricultural commodities

Activity 4.7.1 Seminars on cross-border Trade in Agricultural

Commodities

4 8 Output 1 Workshop Reports & Recommendations on a Concentric Approach to Global Market

Accessibility

Activity 4.8.1 Workshops on a concentric approach to Global Market

Accessibility

4.9 Output 1 Workshop Reports & Recommendations on

Enhancement of National/Regional capacity to

Access World Commodity and Manufacturing

Markets

Page 21

Activity 4.9.1 Workshops on Enhancement of National/Regional capacity to Access world commodity and

Manufacturing Markets

IMMEDIATE OBJECTIVE 5s TO PROPOSE MEASURES AIMED AT HARNESSING AND RATIONALLY INVESTING/MANAGING EXTERNAL AND DOMESTIC RESOURCES AND CONSOLIDATING THE GAINS OF SELF-RELIANCE AND SUSTAINABLE DEVELOPMENT

5.1 Output 1: Research Reports

Activities 5.1 Research and Data Gathering

5.1.1 Feasibility study on the Establishment of a Social Security and Poverty Alleviation Fund Operating at Local

Community and National levels.

5.1.2 Feasibility Study on introduction of cost Recovery Plans

and user charges in the Management of Infrastructural

Facilities (Highways, Housing, Water Supply and

Electricity, Sewage Disposal and Environmental clear-up Operations)

5.1.3 A critical Review of Traditional and New Sources of Revenues (Toll gate collections, airport fees and

charges, value added tax, national

recovery/reconstruction levies, community development levies, etc.)

5.1.4 Baseline Study of Public Investment Programmes and

Proposals for Rationalization

5.1.5 Accounting for and Rationally investing Public Revenue:

A Critical Review and Proposal for Improvement

5.1.6 Maximizing the potential contributions of the African Export-Import Bank to Regional Economic Integration and

Cooperation

5.1.7 Feasibility Study on the Replication of the Ugandan Model

of Revenue Mobilization and Management (through the Revenue Authority)

5.2 Output 1 Seminar Reports

Activities 5.2 Seminars and workshop

5.2.1 Seminars on the Establishment and Management of Social Security and Poverty Alleviation Fund (For managers of social and poverty relief services)

5.2.2 Seminars on the Introduction/Management of Cost Recovery Plans and user charges (For managers of infrastructural facilities)

5.2.3 Seminars on the Traditional and New Revenue sources (for policy makers and senior managers in the civil service, public enterprises, local government, and NGOs)

5.2.4 Seminars on Ethics and Accountability (for policy makers, managers, and operational staff in government, private sector and NGOs/VDOs) - based on 5.4.

5.3 Output 1 Mission reports written Activities 5.3 Advisory Missions undertaken

5.3.1 Advisory Missions on the Introduction/Management of Cost Recovery Plans, Traditional and New Revenue Sources and strengthening of Public Accountability Institutions 5.3.2 Advisory Mission on the Establishment of National and

Zonal Revenue Authorities

IMMEDIATE OBJECTIVE 6: TO FOCUS THE ATTENTION OF THE PROJECT TARGET GROUPS ... ON MEASURES DESIGNED TO PROMOTE JUDICIOUS ALLOCATION OF RESOURCES, IMPROVE PRODUCTIVITY, AND GRADUALLY ELIMINATE NEGATIVE MANAGEMENT PRACTICES AS HELL AS ETHICAL VIOLATIONS.

6.1 Output 1 Monographs on performance indicators for self- reliance and sustainable Development

Activities 6.1 Research and Publications

6.1.1 Proposals for the Establishment of New Macro-level Indicators for Self-reliance and sustainable Development.

6.1.2 Proposals for the Establishment of New Sectoral Indicators for Self-reliance and Sustainable Development.

6.1.3 Proposals for the Establishment of Micro-level Indicators for Self-reliance and Sustainable Development.

6.1.4 Assessing Public Sector Contributions to Self-reliance and Sustainable Development: New Indicators of Public sector Performance.

Page 2 3 6.1.5 Assessing Private sector contributions to Self-reliance and sustainable Development: New Performance Indicators.

6.1.6 Assessing the Contributions of Universities and R & D Institutions to Self-reliance and Sustainable Development: New Performance Indicators.

6.1.7 Assessing the contributions of Public Enterprises to Self-reliance and sustainable Development: New Performance Indicators.

6.1.8 Assessing the contributions of local Government, NGOs and other Grass-roots Institutions to Self-reliance and Sustainable Development: New Performance Indicators.

6.2 Output 2 Reports and Evaluations of seminars and workshops

6.2.1 Seminars on the Enhancement of Productivity in Public and Private Sectors.

6.2.2 Seminars on Human Resource Management for Self-reliance and sustainable Development.

6.2.3 Seminars on the Impact of Ethics on Self-reliance and

Sustainable Development (Focus on specific ethical themes, e.g. capital flight, bribery and corruption, conflict of interest, over-incoming and padding of bills.)

IMMEDIATE OBJECTIVE 7: TO INTEGRATE ENVIRONMENTAL CONCERNS INTO DEVELOPMENT PLANNING PROCESS AND COLLABORATE WITH TARGET GROUPS IN DEVELOPING ENVIRONMENTAL ACCOUNTING METHODS.

7.1 Output 1 Report and Evaluation of Workshops.

Activities 7.1 Seminars and Workshops

7.1.1: Seminars on the implications of Agenda 21 for National

and Regional Development Policies.

7.1.2: Seminars on the Management and Resource implications of

Agenda 21. ,

7.1.3 Seminars on Environmental Accounting Methods.

7.2 Output 1 Mission Reports written

Activities 7.2 Advisory services undertaken.

7.2.1 Advisory services on the Integration of Environmental

concerns into the Planning Process.

7.2.2 Advisory services on the Exploration of Resources for Environmental Management (Agenda 21 and domestic sources).

7.2.3 Advisory services on the development or improvement of Environmental Accounting Methods.

IMMEDIATE OBJECTIVE 8: TO PROPOSE A NEW DEVELOPMENT PLANNING FRAMEWORK WHICH ENABLES PARTICIPATING COUNTRIES TO MONITOR THE PERFORMANCE OF THEIR ECONOMIES AGAINST THE INDICATORS OF SELF- RELIANCE AND SUSTAINABLE DEVELOPMENT.

8.1 Output 1 Reports of Advisory and Training

Missions(including evaluation of Training workshops)

Activities 8: (Advisory and Training Missions)

8.1.1 Advisory Missions on the Re-organization of

Ministries/Departments of Planning (to meet the

challenge of self-reliance and sustainable

development).

8.1.2 Advisory Missions on the Application of New (Self-

reliance and Sustainability) indicators to

compilation of National Accounts statistics.

8.1.3 Training workshops (for National and Sectoral

Planning Units) on the implications of self-

reliance and Sustainable Development for Planning.

PART VI: PROGRAMME COST ESTIMATES

Budctet Explanatory Notes

61. In preparing the project cost estimates, it is necessary to

begin with background information on how the entire programme will

be administered.

62. Apart from the preparatory activities to be undertaken (prior

to the inauguration of the programme) it is envisaged that the

substantive task of managing and controlling the project will be

carried out at two levels - regional and national.

Page 25

Regional Components

63 The Regional aspects of the programme will be coordinated by the Regional Programme Director whose terms of reference are spelt out in (Annex A). She/he will be responsible among other things

for

(a) the planning of regional activities;

(b) the execution and monitoring of the regional components

of the project;

(c) collaborating with National Directors in implementing national components of the project;

(d) monitoring and evaluating the implementation of Regional and National activities;

(e) administering, and accounting for funds expended on regional activities and on support to national secretariats of the programme; and

64. It is hoped that the regional aspects of the programme will be

supported by external donor agencies.

National Components

65 The national secretariats of the programme are to be managed and supervised by National Programme Directors (NPD) whose terms of reference are attached as Annex B. They will perform at the national level those functions carried out at the regional level by the Regional Programme Director (RPD). In addition, the NPD is expected to mobilise national resources in support of the

programme.

66 With the possible exception of activities undertaken in collaboration with the Regional Secretariat, the national component will be financed entirely from domestic resources - i.e. from the resources made available by governments, the private sector, and

NGOs.

Cost Estimates

67. The resources required in managing the regional components of the programme will be allocated as follows:

(i) pT-ogramme Planning ,

Organization of Preparatory Meeting for National Project Directors on the Scope, Thrusts, and Methodologies of the

Project;

(ii) Programme Co-ordination. Monitoring and Direction

Liaison with donor agencies, national secretariats of

programme, record-keeping, compilation of reports,

general administration of the Regional Secretariat, and

supervision of project staff;

(iii) Programme Implementation

Recruitment of consultants; payment of remuneration and miscellaneous bills; servicing of project-related meetings, seminars and workshops; procurement of training materials and equipment; and preparation and/or collation

of performance reports.

68. In view of the fact that the regional activities can only be

financed with convertible currencies, external do not institutions

will be approached for assistance in meeting the programme's

regional obligations. A detailed breakdown of the regional cost

estimates is provided here-under.

ECA/MRAG/95/17/MR/REV.1 Page27 ANNEXA CostEstimatesoftheRegionalComponentoftheProjectonEnhancing thecapacitytoManageSelf-relianceandSustainableDevelopment tActivityandInput tPlanning DSAfor52National ProjectDirectorsat $100perdayfor5days OfficialTravelof52 NPDstovenueof ProjectPreparatory Meetingai$2,000per person tCoordination.Monitoring tirecHon R/PrqjectDirector ProjectOfficer StatisticalAnalyst Admin.Assistant BilingualSecretaries(2) AImplementation Consultants: Objective(I)

Total 1994-1998 m/m - - 60 60 60 60 120

us$ 26,000 104,000 425,000 240,000 200,000 150,000 160,000 48,000

1994 m/m - -- 12 12 12 12 24 48

US$ 26,000 104,000 85,000 48,000 40,000 30,000 31000 48,000

1995 m/m - _ 12 12 12 12 24

US$ - - 85,000 48,000 40,000 30,000 32fOOO -

1996 m/m - 12 12 12 12 24 -

US$ - -- 85,000 48,000 40,000 30,000 32,000 -

1997 m/m - - 12 12 12 12 24 -

US$ - -- 85,000 48,000 40,000 30,000 32,000 -

1998 m/m - _ 12 12 12 12 24 -

- - 85,000 48,000 40,000 30?000 32,000

ECA/MRAG/95/17/MR/REV.1 Page28 Objective(2) Objective(3) Objective(4) Objective(5) Objective(6) Objective(7) Objective(8) OfficialTravel MissionCosts GroupTraining EquipmentorSupplies Non-expendable Equipment SundryPrinting& Publications ProjectEvaluation& Review TOTAL

12 24 10 9 11 36 24 - - - - -- - _ 2,889,000

12.000 24.000 10T000 9,000 11,000 36,000 24;000 250,000 200,000 800.000 457OOO 45,000 40,000 30.000 2.889,000

6 12 - - - - -- - - -- - -

6,000 12,500 _ - - - 50,000 40.000 160.000 30.000 30,000 207000 788,000

6 12 5 .. 5 30 - - - - - - -

6,000 12,000 5.000 5,000 30.000 50,000 40.000 160.000 15.000 15,000 10,000 - 556.000

— 5 6 3 3 6 „ „ - --

_ _ 5.000 6,000 3,000 3,000 6.000 50,000 40.000 160.000 __ -- 5,000 15,000 528.000

3 3 6 - - -

_ 3,000 3,000 3,000 6.000 50.000 40.000 160,000 -- 5,000 _ 505.000

6 -- - _

Page 2 9

National Resource Budget

69. In view of the fact that the needs of the participating countries vary, it is not possible at this stage to prepare a budget for each national programme. It is, however, imperative that adequate provisions be made for the following broad categories of activities:

(i) Resource Mobilization (allocation of seed money by the Government, solicitation of private sector and voluntary contributions, and establishment of special funds/endowments for self-reliance and sustainable development);

(ii) Programme Planning (establishment and staffing of National secretariat of the Programme, organization of induction/orientation workshops, and communication with target groups);

(iii) Programme, Implementation, Co-ordination, Monitoring and Evaluation (Organization of policy dialogues/roundtables;

commissioning of base-line studies; conduct of seminars and workshops; and fielding of consultancy missions;

periodic review of progress in implementation of programmes as well as the suggested reform measures: and evaluation of impact and effectiveness of the programme).

70. To ensure that the major activities under the programme are properly carried out, it is further recommended that each participating country, as a matter of priority, establish a National Secretariat and locate it within the ministry or agency responsible for development planning.

71. The Secretariat should be headed by a senior-level official who has a reputation for competence and a track-record of achievements. He/she should, in addition to being acquainted with the way the Government machinery operates, be familiar with private sector activities, and be capable of undertaking projects in collaboration with academic/research institutions. As the National Programme Director, he/she should be an energetic fund-raiser.

PART VII: PRECONDITIONS FOR SUCCESSFUL IMPLEMENTATION OF PROGRAMME

72. The success of this programme depends on a number of factors, prominent among which are its acceptability to the participating countries, their willingness to give it their undivided attention and refrain from measures which run counter to its underlying objectives, as well as the extent to which the conditions