The Bigger Picture

DW-WORLD.DE: Many concerned citizens in the West view the problems in Africa as problems that can only be solved through colonial-style investment initiatives, while others consider the continent to be beyond saving. Is either of these views close to the reality on the ground in Africa?

Africa is changing and changing for the better in more ways than is apparent to the outside observer at times. It’s easy to look at the problematic elections in Nigeria, the violent land clearance and slum destruction in Zimbabwe or the continuing civilian deaths in the Democratic Republic of Congo and see only regression and destruction on the continent. Media pictures, both outside Africa as well as within, place very little emphasis on the positive developments that have taken place. There are clearly a number of major issues within the continent that continue to hinder individual countries' economic and political growth, such as the continued single party despotic rule in a number of governments. However, these situations are becoming the exception rather than the rule in Africa. A growing number of countries have transformed from the picture of the octogenarian clinging onto power, changing constitutions or disregarding them completely to secure continued power to one of peaceful handover of civil rule through, although sometimes flawed, democratic processes.

What has changed to create this embryonic empowerment?

Economic growth in sectors outside of the traditional agricultural environment continues to expand in large swathes of East and Southern Africa, most of which is fuelled by inward investment that was in the past either tied up in highly lucrative government bonds or denied access and opportunities to invest through uncertain political and investment conditions which are being addressed by the new bread of governments that are taking over. There is clearly still significant change that is required both politically and economically within the continent to allow for the full participation of the population within the countries. However, the change that has happened should be recognized and rewarded. It should also be recognized that this change is also largely home grown and driven by an increasingly politically sophisticated electorate demanding change within their own governments.

Some of the changes that have occurred in the recent years in African economic and political growth have been directly influenced by donor pressure and support to the programs of change and development within the region. However, change in the magnitude of reform that is required and is developing, requires long term support and commitment both within the country implementing the changes as well as more importantly within the donor community that is supporting the reforms. However, transformation of governments is not an easy or a short-term process that can be completed within a few years. The types of reform underway in Africa will take years and maybe generations to make significant progress and this has to be understood and supported by organizations such as the G8 as well as individual donor governments.

Is the inability of organizations like the G8 to recognize the need for patience a reason why so many initiatives promoted by the rich nations apparently fail in Africa?

All too often, good initiatives are launched and basically abandoned in their infancy as they did not produce the results that had been envisaged within a short time frame and therefore some other “better or improved” mechanism for transformation is developed. If we followed these rules for the international mechanisms that govern the G8 countries then the EU, NATO, WTO, UN would have been abandoned years ago rather than given the continued support and funding that they are, in the knowledge that progress is being made, albeit slowly.

How are Africans helping themselves?

Another positive force for change and development within Africa is the increasing economic power and influence of the Diaspora within Europe and North America that had come over to carry out mainly low paid manual jobs but over time have progressed to increasingly higher skilled and better paid employment. Unlike most other employees within Europe that spend most, or in the case of the UK, more than their income every month, the African immigrants remit the majority of their salary to their home country to support their families and communities there.

This flow of funds has been growing over the past decade to such an extent that the Central Bank of Ghana estimated that the remittances for 2006 coming from the Diaspora was in the region of $1 billion. Although most of this money could not be classed as development expenditure in the same sense that money spent on behalf of European donor governments could, it still contributes significantly to the economic development of the recipient country. When put in perspective, the total contributions for budget support from ten donor countries to Ghana in 2006 was estimated at $300 million, a sum dwarfed by the remittances from the countries own population.

So what is the future of international aid in Africa?

For European donors and institutions to remain relevant and connected to the development and change within Africa there needs to be change in the terms of engagement between the various actors. As I said before, the support given to governments in Africa from donors has to change from the short-termism of the present to longer term commitment and continuity of engagement to provide the confidence and respect of the recipient government for the work being undertaken.

Although difficult for European farmers to accept, the opening of markets for African grown agricultural produce is one of the fastest and most equitable ways of improving the living conditions of people in Africa. The deregulation of agricultural markets in Europe need not be a zero sum game, where the gain in Africa is a loss in Europe. The improving living conditions and available income in Africa gained from this would result in increased demand for consumer goods from Europe as well. Sure it will not be European farmers that are producing and selling the consumer goods to Africa but this type of structural reform in markets has always been the natural progression of changing markets. What is stopping this structural change at the moment is the protectionism of the EU and North America which is restricting the natural progression of economic activity within the world and drastically distorting markets to the detriment of all.

Alan Duncan is a project coordinator for economic consultants KPMG East Africa in Southern Sudan. He has coordinated several international aid projects in the refugee camps spread throughout the war-torn region, sometimes under fire from both government and rebel forces. He currently works as a consultant for the Kenyan government’s finance ministry.