Business reforms can spur economic dynamism in the East African Community
East Africa is famous for its breathtaking landscapes and its unique concentration of wild animals. Could it also become as famous for its dynamic economic development?
In 2009 I came to Tanzania to work on tax harmonization in the East African Community (EAC). The Common Market Protocol was about to be signed and one of the biggest goals was to tap into the economic potential of the region by facilitating (cross-border) trade and improving the business climate. A year later, the five Partner States of the East African Community ratified the Common Market Protocol in order to realize “accelerated economic growth and development through the attainment of the free movement of goods, persons, labor, the rights of establishment and residence and the free movement of services and capital”. The overarching goal of the East African Community is to achieve sustainable economic growth in order to increase employment and reduce poverty.
Next week, I will be joining World Bank Group President Jim Yong Kim and UN Secretary-General Ban Ki-moon on an historic joint visit to Africa's Great Lakes Region. The aim of the trip is to brainstorm with African leaders solutions to helping the people of the Great Lakes prosper.
This visit is important for two reasons - it highlights a new era of global institutions working together to promote stability, and it signals to the citizens of fragile and conflict affected nations our commitment: we will not leave you behind.
Many countries in today’s world have struggled, or are struggling, through war or political conflict to rebuild themselves and lift their people out of poverty. They are called fragile states, nations with poor health and education, little or no electricity, disorganized or weakened institutions, and in many cases no functioning governments. In Africa, 18 of the 48 countries in the sub Region are considered fragile, six of them so much so that UN, NATO or African Union forces are on the ground helping to keep peace.
For the last twelve years, the World Economic Forum and INSEAD have been publishing The Global Information Technology Report (GITR), which features a Network Readiness Index (NRI) that measures the ability of countries to leverage information communication technologies (ICTs) for growth and well-being. This year’s GITR, which focuses on jobs and growth, covers 144 countries. The assessments are based on a broad range of indicators that include Internet access, adult literacy, and mobile phone subscriptions. As noted in the report, the growing availability of technology has empowered citizens of both developed and developing countries with good access to the digital world. However, this year’s GITR has some sobering news about the state of ICTs in many parts of the developing world. Despite some positive trends, the report shows a sharp digital divide between impoverished nations and richer economies.
- leapfrog technologies
- Network Readiness Index
- Rwanda Metamorphosis to a Knowledge-Based Society
- The Global Information Technology Report
- World Economic Forum
- Information and Communication Technologies
- The World Region
- Digital Divide
- Colombia’s Digital Agenda
- and E-Government in Latin America
Clearly that was no flash in the pan. Last week, I chaired a high-level ministerial dialogue on the margins of the IMF-World Bank Spring Meetings where government ministers and senior representatives of more than 40 countries came together to compare notes on how natural capital accounting is working for them.
Country after country – represented by finance, development, or environment ministers – talked about how natural capital accounting fit their countries’ priorities and how it could be a tool to address some of their key policy challenges. With each statement from the floor, it was clear that natural capital accounting is no longer an academic concept. It is alive and well and being utilized across the world in developing, middle, and high-income countries.
Many important policies are implemented at the national level. Monetary policy, fiscal policy, and many regulations are key examples. Pure time series or before-after analysis of the impacts of changes in these policies on the economy of a country will be contaminated by other changes going on in the economy. Simply trying to difference out global trends will not account for systematic differences in the growth path of the country where the reform took place from the average global growth path. This makes evaluation of the impacts of such policies difficult.
In preparation for the February 28 ICT Solutions Day, the World Bank ICT team is piloting a crowdsourcing initiative to develop innovative ICT-enabled solutions for client countries.
In country after country in Sub-Saharan Africa, new discoveries of oil, natural gas and mineral deposits have been making headlines every other week it seems. When Ghana’s Jubilee oil field hits peak production in 2013, it will produce 120,000 barrels a day. Uganda’s Lake Albert Rift Basin fields could potentially produce even greater quantities. Billions of dollars a year could flow into Mozambique and Tanzania thanks to natural gas findings. And in Sierra Leone, mining iron ore in Tonkolili could boost GDP by a remarkable 25 percent in 2012.
My strong hope is that all the people living in these resource-rich African countries also get to share in this new oil and mineral wealth. So far, with one of few exceptions being Botswana, natural resources haven’t always improved the lives of people and their families. From what I see on my constant travels to the continent, economic growth in most resource-rich countries is not automatically translating into better health, education, and other key services for poor people.
Many resource-rich countries tend to gravitate towards the bottom of the global Human Development Index, which is a composite measure of life expectancy, education and income.
One strikingly effective way to make sure that all people, especially the poorest, share in the new minerals prosperity is through safety nets and social protection programs. These are designed to protect vulnerable families and promote job opportunities among poor people who are able to work. This in turn makes communities stronger and more secure, while reducing painful inequalities between people.
Social protection programs are already central to poverty-fighting, higher growth national strategies across Africa, and have played a significant role reducing chronic poverty and helping families become more resilient in the face of setbacks such as unemployment, sudden illness, or natural disasters such as droughts or floods. These programs have also allowed families to invest in more livestock or grow more food, and increase their earnings.
- Labor and Social Protection
- Social Development
- Agriculture and Rural Development
- Sub-Saharan Africa
- social safety nets
- social protection
- Human Development Index
- cash transfers
On August 23th, in Santa Clara, California, I attended business plan presentations of 19 competitively selected social entrepreneurs, who delivered their pitches to a panel of experienced professionals plus a general audience. These presentations marked the culmination of the 10th annual Global Social Benefit Incubator (GSBI™) program organized by Santa Clara University. The Development Marketplace has been one of its partners since its beginning. The program includes intensive work by each entrepreneur with two to three designated mentors, and a series of on-campus classes. Its main objective is to strengthen material that each entrepreneur already has available, refine their business models and develop professional organizational documentation that can be presented to attract investors.
In a previous blog post, I wrote about the experience of Rwanda, a post-conflict society that is using art as part of its national reconciliation effort. I argued that Rwanda’s active support of cultural industries, including film, music, crafts, architecture and theater, among other art forms, has played a key role in its peace building efforts in the aftermath of the 1994 genocide that killed nearly one million people. Using anecdotal evidence, I specifically examined the use of theater, which helped national audiences express difficult emotions, re-examine established ideas, and improve their emotional well-being. In this blog post, I will examine how the creative sector has helped facilitate national reconstruction efforts in another conflict zone: Afghanistan.
To begin with, it is important to note that every country’s experience in using art in their reconciliation process is different – anywhere from how their history of conflict influences their engagement to the state of cultural policies in countries. In Rwanda’s case, the government began working alongside international partners shortly after their civil war to establish a platform for the growth of creative industries. Through relatively peaceful periods, they were also able to create an enabling environment that sustained this growth. However, in the case of Afghanistan, the cycles of conflict have made the growth of the cultural policies all the more challenging. Despite difficulties, there are several interesting examples in Afghanistan of how a network of actors, including government, civil society, and international partners, has used art in its attempt to facilitate healing and rebuild national identity.
- South Asia
- Social Development
- Social Impact of Art
- Post-conflict Societies
- Post-Conflict Reconciliation
- peace building
- Cultural Policies and Development
- Creative Industries
- Creative Economies and Development
- Art and Post-Conflict Reconciliation
- Art and Peace
- Art and Healing
Don’t just believe me. Listen to the Rwandan farmers whose now-terraced hillsides are getting higher yields, producing better nutrition, and improving their livelihoods.
Japan and the Republic of Korea are among those convinced that GAFSP is a good investment in food security. Inspired by a challenge from the Unites States, Japan and South Korea just pledged an additional $60 million to GAFSP at a meeting in Tokyo held in conjunction with the World Bank and IMF Annual Meetings.
The United States announced that it was prepared to contribute an additional $1 to GAFSP for every $2 contributed by other donors, up to a total of $475 million.
Why is GAFSP so successful?
- food security
- gates foundation
- global agriculture and food security program
- Communities and Human Settlements
- Agriculture and Rural Development
- The World Region
- South Asia
- Middle East and North Africa
- Latin America & Caribbean
- Europe and Central Asia
- East Asia and Pacific
- United States
- United Kingdom
- Sierra Leone
- Korea, Republic of