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Africa's De elopment and Destiny
Barber B. Conable
Pr sident, The World Bank
Washington, D.C.
Address to the 27th Session f the Organization of African Unity (OAU) Assembly
of Heads of State and Gove rnent held in Abuja, Nigeria on June 4 1991


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i
Africa's IE)evelopment and Destiny
by
Barber B. Conable
P -esident, The World Bank
The World Bank's Partnership with Africa
Mr. Chairman, Mr. S(icretary-General, Your Excellencies, Distinguished
Guests, Ladies and Gen lemen:
It is a distinct honoi for me to address the 27th Session of the OAU
Assembly of Heads of State and Government. I would like to express my
personal appreciation to the Secretary-General of the OAU, Mr. Salim
Ahmed Salim, for invitng me here. And I would like to congratulate you,
Mr. Chairman - as well as the Secretary-General and his staff - for the
excellent arrangements inade for this meeting. I would also like to thank the
Government and the pboples of the Federal Republic of Nigeria for their
hospitality and for making us all feel at home. My wife and I are delighted
to be back in Africa.
The World Bank reco nizes the fundamental importance of the OAU in
African affairs. The CIA. U represents the collective will and sovereignty of
the African people. It i; the most authentically African institution which
deserves your genuine --ommitment to its principles and objectives. It also
deserves the respect and support of all external agencies. As I see it, the
OAU and the African Development Bank are the two truly pan-African
institutions which pla3 key roles in the development efforts of this great
continent.
I feel it appropriate that I should come before you here because I am, in a
sense, your employee. Your governments are shareholders in the World
Bank. It is your institutibn. We are at your service, running side-by-side in a
marathon development undertaking. I hope that my presence here might
mark the beginning of an even deeper relationship between this august
body and the World Bank, a true partner in your development.
Over the last five years, I have visited many of your countries, met many
of you personally, and I have seen, first-hand, the immense development
challenges that you ai d your peoples face. As one who has exchanged
views with you on hese challenges, I very much appreciate this
opportunity to share w th you some personal reflections which relate to the
development process ir Africa.
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A Historic Moment
We stand, Mr. Chairman and your Excellencies, at a historic moment in
time. The world is undergoing fundamental change. Superpower rivalry is
yielding to a new spirit of dialogue, and the impulse toward political and
economic reform has transformed the geopolitical landscape. The
opportunities for the world to benefit from increased cooperation are
enormous.
Here in Africa too, new winds of change are blowing. Namibia's recent
gaining of independence effectively marked the end of colonial rule in
Africa - and attests to the OAU's unfailing efforts to bring freedom to
every corner of the continent. The release of Mr. Nelson Mandela and the
steps taken toward dismantling the abhorrent system of apartheid in South
Africa - provided they are steadily continued - hold the promise of a new
era in Africa.
The struggle for independence was, clearly, the major challenge that faced
Africa in the second half of the 20th century. With this objective now
virtually achieved, Africa can focus its energies on what is clearly the major
challenge of the 1990s and the next century: the struggle against poverty
and the achievement of economic and social development for all the
peoples of the continent. This is an opportunity that - in my humble
opinion - Africa must not, dare not, lose.
A Continent in Crisis
Mr. Chairman, your Excellencies: From a development perspective, Africa
today is a continent in crisis. You are more familiar with the problems than
I, because you live with them day in and day out.
Low-income Africa is the only region of the world where the number of
people living in poverty would, if current trends continue, increase by the
year 2000; it is the only region where population is doubling every 20 years
or so - in fact, it is the only region where, for some three decades, economic
growth has barely kept ahead of population growth; and it is the only
region whose debt is now greater than its total economic output. These are
daunting statistics, by any measure. We cannot underestimate the severity
of the situation. The 1990s are going to be extremely difficult years for
Africa.
I do not, however, consider the problems to be insurmountable. Indeed, I
believe that there are a number of reasons to be positive about the future of
Africa - and I say this without taking a romantic view of the very real life
and death struggle that so many Africans face every day. Why am I
hopeful?
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Reasons for Hope
First, because I take a long-term view. Most African countries are barely a
generation away froin independence and a colonial heritage that
bequeathed them neitt er strong institutions nor an educated citizenry -
the critical capacities for development. These deficiencies cannot be
overcome overnight. We are, as I said, involved in a marathon undertaking,
and we must beware cf unrealistic expectations. But I am convinced that
Africa is going to make it.
Second, I am hopeft I because of the change in attitude and approach
toward economic poli ymaking that has taken place in Africa in recent
years. Indeed, the diffe ence in the situation now, compared with five years
ago when I came to the World Bank, is quite remarkable. This change began
slowly around the mi -1980s with a handful of countries undertaking
structural adjustment programs aimed at increasing productivity and
stimulating growth. T day, more than 30 African countries have adopted
economic reform progr ims.
This has happened w thout much attention being paid by those who have
waxed lyrical about si ilar kinds of reform programs in Eastern Europe.
But the important thi g is that it has happened. African countries have
taken a grip on their pr >blems as never before.
On this point, howev ar, I would like to make one thing clear: a country's
entry into structural ao justment cannot bring about instant recovery. We
must not forget, Mr. Ch irman and your Excellencies, that in virtually every
case, African countries have gone into adjustment only when they were in
dire straits. You kno,N what the situation was. You also know that
adjustment has helpec stop the decline and allowed for improvement to
take place. The eviden e becomes stronger every day. In 1990, low-income
countries implementi g adjustment programs grew an average of 4 - 5
percentage points faste i than those not undertaking economic reform.
I am the first to ad -nit that progress - in terms of on-the-ground
improvements in peop e's living standards - remains unsatisfactory. The
process of recovery is I ng and painful, as the countries of Eastern Europe
are also discovering. Bi t those who blame the pain on the reform programs
confuse the malady witi the remedy. The real causes of today's problems lie
in the mistaken econo ic policies of the past - and if those policies had
simply been continued the situation would be much worse today.
There is no alternatihe to adjustment - no soft option, no easy way out.
But adjustment strateg es can be - must be - designed with every effort
made to protect the poor and the vulnerable. I think we have made
substantial progress  this regard, through the Social Dimensions of
Adjustment program a nd other measures - and more will be done. I am
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not discouraged. As the President of the African Development Bank, Mr.
Babacar N'Diaye, puts it: "Africa is getting better and better." We must be
patient and look to the long term. Something important is happening in
Africa - and it gives reason for hope.
The donor countries have clearly recognized this. Through efforts such as
the Special Program of Assistance (SPA) for low-income Africa - initiated
by the World Bank and strongly supported by the African Development
Bank and virtually all of the major bilateral and multilateral donors -
unprecedented levels of financial aid and debt relief have been going to
Africa in recent years. It may not be enough to bring about improvement as
quickly as we would like to see it. But it is certainly more than Africa has
ever received in the past. This momentum of support - provided it can be
maintained - is another reason to be hopeful about the future.
The Emergence of Consensus
But the major reason that I am hopeful, and the major difference that I see
between the situation in Africa today compared with five years ago, is the
clear emergence of consensus - in Africa and between Africa and the donor
community - on Africa's development objectives and how they should be
tackled. This consensus has not been easy to achieve. Different people have
different ideas and the debate has been vigorous. It has also been
productive.
I would like to think that the World Bank has played a modest role in
helping the consensus to evolve - through our operations and special
initiatives, and through our Long Term Perspective Study on Africa. Like
the Lagos Plan of Action and Africa's Priority Programme for Economic
Recovery, this long-term report stated that, in the final analysis,
development cannot be measured solely in terms of economic aggregates.
To paraphrase the wise words of Mwalimu Julius Nyerere, the rational
choice on development is investment in people and their well-being.
The Strategic Agenda
We all know that Africa is generously endowed with natural resources
compared to many other regions of the world. What is vitally needed is the
human capacity to make the most effective use of those resources and to
harness them for Africa's development. The first item on Africa's strategic
agenda, therefore, is to increase investment in human resources.
Expenditures on education, health and nutrition should be at least doubled
by the year 2000, to enable the peoples of Africa to play their full part in
what must be a "people-centered" development process. People come first.
* Second, economic reforms aimed at growth with poverty reduction
must continue to be aggressively pursued - in order to make Africa
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efficient, competi ive and capable of taking care of the needs of her
peoples.               c        o
* Third, agricultui al production and productivity must be boosted
substantially - i deed, doubled from current levels if agriculture is to
fulfill its potential as Africa's engine of growth.
* Fourth, Africa's Exponential population growth rate needs to be
slowed. I am enc uraged that over half of the countries represented
here have now a opted national population policies. I urge you to
implement those policies and to give Africa's economic growth the
breathing space it needs to catch up with population growth.
* Fifth, the degrad ition of the continent's environment and natural
resource base m st be halted and reversed - and broad-based
national environn ental action plans must be put in place. The linkages
between agricultL ral stagnation, accelerating population growth and
environmental da nage need to be recognized and appropriate actions
taken to preserve frica's patrimony.
* Sixth, women, the primary actors in so many of Africa's development
activities, must be recognized as contributors to the economic stability
of Africa and m st be given the resources they deserve. Let me be
frank here: we ha e all talked about promoting the role of women. But
as yet, I see little e vidence of a change in their role or status. We simply
must increase ther access to education, to credit and to opportunity. I
firmly believe th s: without an improvement in the conditions for
African women, :here will be no improvement in the condition of
Africa.
* Seventh, local, grassroots development organizations need to be
nurtured and encouraged. Sustainable development can only come
from the bottom- p, not from the top-down, and we need to do more
to empower local goups and communities.
Private Sector Expar sion
I believe that we can all agree on these seven items on Africa's strategic
agenda. I also believe hat there is now a consensus that the private sector
has a key role to play ir Africa's development. Private entrepreneurship has
been downplayed in most African countries over the last 30 years. We know
the reasons why: indig:nous entrepreneurs were assumed to be scarce, and
foreign entrepreneurs were generally distrusted. It was also argued that the
state could best manage production and markets. We now know, of course,
that this supposition Was wrong and, I am pleased to note, a reappraisal of
development strategie; has been taking place in Africa.
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The "anti-business" rhetoric that was so evident only five years ago, has
all but disappeared. Government intervention in the marketplace has been
reduced. And Africa's entrepreneurs are beginning to respond. The fact is
that Africa's labor force is set to double within the next generation. Only the
private sector can create enough jobs to meet this expansion. Investment -
domestic and foreign - must be encouraged, and Africa's businesspeople
must be enabled to meet the challenge.
Increased Regional Cooperation
Increased regional cooperation could do more than anything else to create
this enabling environment. I know that regional integration was the dream
of the Founding Fathers of African independence. I also know that it
remains a policy objective of both the OAU and the African Development
Bank. So far as I can see, however, little has been done in practical terms to
realize it. Mr. Chairman and your Excellencies: The time has come to move
from dreams to deeds.
As an outsider, I must admit that I find it difficult to comprehend why
there are so many roadblocks between Accra and Lagos, or between Dakar
and Abidjan. Why is it so difficult for a businessman to transport his goods
from Mombasa to Kampala and from Dar-es-Salaam to Lusaka? I have been
struck that it is often easier for me - a "Mzungu" - to travel from one
African country to another, than it is for an African. Surely as we stand on
the threshold of the 21st century, we can move beyond this kind of
obstructionism?
I am delighted, Mr. Chairman and your Excellencies, that this assembly
will be signing a draft treaty establishing an African Economic Community.
The World Bank will do everything in its power to support the realization
of its objectives. The signing of the document is an important first step, but
it is even more important that concrete, pragmatic measures be taken - by
African countries - to implement the treaty and make the idea of an
African Economic Community a reality.
Capacity Building
To implement the right kinds of policies, Africa needs its own capacities.
It needs to strengthen its local institutions and human resource base, and it
needs to use those resources effectively. This is a crucial item on Africa's
strategic agenda. To help achieve it, the World Bank has been working with
the African Development Bank, the United Nations Development
Programme and many other donor and African governments to establish
the African Capacity Building Foundation. This Foundation will focus on
public policy analysis and management skills - those skills so critical to the
development process.
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This is a venture ver close to my heart: an African institution, run by an
African, based in Afr ka, and focused on developing African human and
institutional capacitie . This is not just another example of donor-driven
technical assistance. I fact, we hope that this initiative might offer a new
approach to externa support for human resource development and
institution-building in Africa. I urge all African governments and donors to
nurture the African C pacity Building Foundation into an endowed entity
after its pilot phase. L t me also take this opportunity to applaud President
Robert Mugabe and t e Government of Zimbabwe for their speedy action
in hosting the headqu rters of the Foundation - which has now opened its
doors for business in I:arare.
The Question of Go ernance
Mr. Chairman, your Excellencies: We can build capacities; we can increase
regional cooperation; ie can invest in human resources; and we can pursue
with all our might th other goals of Africa's strategic agenda. But it has
become increasingly c ear that all will be to no avail unless the quality of
governance in Africa i proves. I am not qualified to comment on the nature
and form of Africa's political systems. This is the concern of the African
people themselves. A. your "employee," however, I am concerned about
those aspects of gove nance which impede development and impair the
quality of life for your people.
One of the most obv ous problems is continued civil strife within Africa.
How many internal a d trans-border wars has Africa experienced? How
many coups have becn staged to topple African leaders? What price in
human terms has Africa paid for militarization? When will Africa's untold
millions of refugees an d starving children be allowed the peace and dignity
that is the basic right ofevery human being? As I reflect on these questions,
I recall the high hopes of the OAU when it was established. Mr. Chairman,
your Excellencies: I now urge all of you to use the OAU as the principal
African mechanism f r conflict resolution and for ensuring security and
stability - because wi:hout these, there will be no sustained development
for Africa.
The second aspect of governance which directly affects economic
development is the question of the participation of people in their country's
economic life. This is n t an issue unique to Africa; people all over the world
are demanding a say ir the decisions which affect their lives. In my personal
opinion, it is an entire ly legitimate demand. I can recall the voices of the
Founding Fathers of frican independence. Kwame Nkrumah, Nnamdi
Azikiwe, Leopold Se ghor, Modibo Keita, Jomo Kenyatta and Julius
Nyerere (to name bu a few), all demanded "Uhuru" - freedom - of
speech, of thought, cf association; freedom from arbitrary arrest and
oppression; freedom tc participate in the development of their nations. Mr.
Chairman, your Exce lencies: Africa today is once again hearing those
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voices, the voices of freedom. I urge you, as Africa's leaders, not to ignore
them.
I would like to make one final point on this question of governance. The
World Bank is not about to involve itself in the internal political affairs of
any country or to introduce any new political conditionalities in its work.
We are a development institution and we will continue to focus our
attention only on those aspects of governance which directly affect
development - accountability, transparency, predictability, adherence to
the rule of law, and so on. These are not new issues for the Bank. But in a
world where the competition for our scarce resources has never been more
intense, we will be paying increasingly more attention to them in the years
to come.
Role of the World Bank
Mr. Chairman, your Excellencies: If there is one message that I would
wish to leave with you today, it is this: Africa is the master of its own fate. I
do not underestimate the external difficulties - low commodity prices,
high levels of debt, unfair trading practices, inappropriate forms of
technical assistance and so on. But I believe that with the right kinds of
policies and the right kinds of leadership, these problems can be managed
and even overcome. I am not speaking in the abstract here; other
developing regions have shown that it can be done.
The simple fact is that Africa has lost out to those other regions in terms of
competitiveness and efficiency. While it is true that the prices of some
commodities have declined, the more serious problem for Africa has been
the loss of market share - a 50 percent loss since 1970. Indeed, recent
analysis indicates that if low-income Africa had only maintained its 1970
market share of non-oil commodities, it would be receiving today an
additional $9-10 billion per year in export revenues - regardless of price
fluctuations. The major reason for this lack of competitiveness is low levels
of efficiency. The cost of doing business in and with Africa is simply too
high - often 50 to 100 percent higher than comparable costs in other
developing regions. The name of the game is competition - and Africa is
going to have to adjust in order to improve its economic efficiency and hold
its own in the world.
I believe you can do it; I believe you have started to do it. The World Bank
stands ready to support you in your efforts with all the financial, technical
and intellectual support that we can muster - and we will continue to
catalyze as much support as we can from other sources. We recognize the
responsibility that donors have to help Africa achieve its development
objectives. We have stated clearly and publicly that Africa needs increased
levels of financial resources and debt relief. Over the last five years, I
personally have pushed to make Africa a priority for the World Bank and
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the donor community. hope I have at least succeeded in convincing Africa
that it has a friend in th e World Bank. I must emphasize, however, that ours
is essentially a suppo rt role. The principal responsibility for achieving
Africa's development ests with Africans. You must chart the course. You
must energize your pe ples. You must inspire confidence in investors and
donors.
A Personal Reflecticn
Mr. Chairman, your xcellencies: In my travels in Africa and through my
discussions with the le  ders of the countries of Africa, I have learned a great
deal about the probler 9 of and the prospects for the continent. Let me leave
you with what I discer i as my main concern and my main hope.
My main concern i. that Africa may be marginalized as the world's
attention shifts to othei areas. If governance is not seen to improve in Africa,
if development is not qeen to be taking hold, then "Afro-pessimism" may
indeed set in and Afri a's great needs may be set aside. But as I have tried
to make clear, this is a ituation which you have the power to do something
about. The World Bar k will help, as will others. There is a reservoir of
international goodwil toward Africa. For this reason, I urge all of you to
support President Que t Masire of Botswana as he seeks to mobilize and tap
this goodwill throug] the Global Coalition for Africa which has been
recently established.
My main hope, mY main inspiration, is the resourcefulness and
determination of the kfrican people. Through talking to them over the
years, I have gained a sense of their vision of the future: a vision of food
security, basic healf care and education for all Africans; of full
participation of the A! rican people in the development process; and of a
dynamic, competitive kfrica that not only makes its way in the world but
that makes a vital con ibution.
Let me conclude by diting the words of the American President who had
a very special relatio ship with, and special interest in, Africa - John
Fitzgerald Kennedy. H once said that since "Our problems are man-made,
they can be solved by nian." As I leave the World Bank and as I leave Africa,
I am convinced that, with committed leadership, African men and women
can solve Africa's pr blems - and build a brighter future for Africa's
children.
Mr. Chairman, your Ixcellencies: The destiny of Africa is in your hands.
Thank you.
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