1. The importance of the G8 and EU in supporting AU/NEPAD by implementing existing commitments on trade reform, meeting UN targets on official aid, and accelerating debt relief. There is scepticism that the international community has the political will to make this financial investment, which will be sizeable for Africa, if small in global terms.
2. The Commission should emphasise raising living standards rather than alleviating poverty. Encouraging the entrepreneurial spirit and freeing up markets to work for growth and job creation are the only way to meet the Millennium Development Goals.
3. The need to change “mindsets” and foster more national level government and private sector dialogue. Without this, grand economic reforms and new funding from donors will not deliver growth: the private sector is still a marginal player. The G8 should assist capacity development in the private sector, including financing instruments directly with the private sector, not just through government intermediaries.
4. The limitations of the official aid system in delivering sustainable solutions, and the need to find new mechanisms which create incentives to improve investment and trade, and investment in human capacity.
Africa ’s infrastructure deficit is fundamental and damaging to competitiveness. An injection of concessionary, public and long term capital is needed to help kick start private-public partnerships. International donor finance should concentrate on mitigating risk to private sector investors, and support the long cycle required for return on investment. Also, G8 pledges of support to tackle supply side constraints, as discussed at the Singapore trade round - but not acted on – need to be implemented immediately.
5. Government needs to step back from a lot of areas where capacity is almost non-existent. There should be international incentives for reform, and aid should be directed to governments which show evidence of improved economic and corporate governance.
6. The Commission could help Africa to recast its image and forge a global vision about Africa. The G8 has the muscle to foster a new set of partnerships capable of changing the perceptions, and providing more accurate information on trade and investment opportunities in Africa.
7. The private sector should adopt a peer-based and private sector managed accreditation scheme that provides a certificate of good corporate governance. Economic incentives to good corporate governance are the best way to go. |
