A Timely Reminder on Africa

With the rich world distracted by its financial morass, two reports published on Tuesday aim to make sure it does not forget Africa. They serve as an important reminder that a self-inflicted crisis is no excuse for rich countries to turn their back on a region that was an innocent victim – and whose difficulties remain far greater.

The first report, from the Africa Progress Panel, chaired by former UN secretary-general Kofi Annan, points out how the past decade was one of good news for Africa. After decades of slipping, the continent’s economic growth robustly outpaced its population. Desperately needed improvements in living standards coincided with a strengthening of democracy. This screeched to a halt at the decade’s end. The crisis set back countries once on the verge of graduating from aid to global capital markets. Growth stalled. The hopeful trend in governance was interrupted by a series of coups d’état.

The second report, from One, the campaign organisation, is a scorecard on the largest economies’ fulfilment of their pledges at Gleneagles five years ago to double official aid to Africa. The record is mixed: the UK stands out with an ambitious target it has nearly fulfilled; Italy, in contrast, gives less in aid now than in 2005.

But both documents give reason for hope. Overall aid has increased dramatically, as it should. Rich countries spend so little of their output on aid that cutting on the back of the poorest would be a cruel and inefficient way of saving.

Moreover, donors and recipients have belatedly realised that how aid is used counts for as much as its amount. Even such a worthy goal as reducing hunger has at times created more, not less, dependence on external aid. A little smart money can do more good than a lot of dumb aid.
Dollar amounts must not overshadow less easily measurable policies. Putting in place conditions for growth is Africa’s own responsibility; the APP report is replete with good proposals. And a lot that rich countries can do to stop holding Africa back requires more political will than cash.
A fourfold export increase drove Africa’s decade of growth; trade must be revived and expanded further. The west must end its complicity with illicit financial flows that ease corruption. The neglect that left African agriculture depressingly unproductive must end; the new US commitment to agricultural research is welcome.

For both poor and rich countries, smarter spending would be no bad lesson to learn in hard times.

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