Business Action for Africa recently released a new report on what businesses can do to sustain the Millennium Development Goals (MDGS) in Africa. The report brings together insights from various business leaders and NGOs, as well as from the likes of Paul Collier, Kofi Annan and Lord Malloch-Brown, among others. Many of the contributions seemingly follow the standard protocol of touting transparency, governance, business environment reforms, effective public-private partnerships, investments in the private sector, and other well-known policy prescriptions. As Richard Laing, Chief Executive of CDC aptly notes:
Much has already been said about the impact of the global downturn on Africa, but a great deal of the talk about solutions has been empty rhetoric full of generalisms that regard Africa as one homogenous place. Any simple prognosis for the continent’s economic future ignores the fact that there are 48 countries in sub-Saharan Africa with differing economies and at varying stages of development. It is action, not talk, that is required.
That said, there is one particularly worthwhile analysis, written by Dr. Peter Eigen, Chairman of the Extractive Industries Transparency Initiative. Eigen writes:
In the land of the blind, the one-eyed man is king. When it comes to knowing how the global financial crisis will affect Africa we are all living in the land of the blind. Usually we can rely on the IMF to be the one-eyed man, but the IMF’s growth predictions for 2009 give such a mixture of signals that it is impossible to form a clear overall picture. We do know, however, that 2009 will see a series of difficult social and political changes in Africa: elections, strikes, civil unrest, rising fuel and food prices, and a more challenging environment for exports. Because of Africa’s unique finance and liquidity circumstances, and due to volatile exchange rates and commodities prices, it is safe to assume that the financial crisis will be felt differently in Africa than elsewhere.
Eigen's acknowledgment of the uncertain is quite refreshing; for as much as we think we may know about Africa's future trajectory and development needs, there is indeed that much more than we don't. Eigen is also particularly prudent in his discussions of EITI - the very organization of which he is Chairman: "The Extractive Industries Transparency Initiative (EITI) has long been held up as a shining example of how multi-stakeholder initiatives can address these kinds of challenges. But much of this praise has been premature. The initiative is still young." Such rhetoric comes in stark contrast to others in the development field who proclaim with overwhelming conclusiveness the merits of their formulaic approaches to poverty alleviation/aid/whatever, embryonic though these approaches may still be. Every now and again it's nice to be reminded that there are people in the field who are guided not by grandiose visions but by practical, thought-out solutions to given problems. Thank you, Mr. Eigen
In any event, do read the report; it will surely be worth your while.