Comments to the Bank’s Strategy

1. Comments to the Bank’s Strategy By Vitalice Meja – Director Reality of Aid Africa

2. General comments • Africa is not likely to achieve the MDGs – 2011 African ministers of finance outcome document and UNSD 2010 data shows this • Aid effectiveness issues • Issues of ownership • Within the bank – country offices and the HQ (CAS are at different stages of implementation across the countries) • Issues of ownership at national level • Alignment with country priorities and how they tap into each other • Harmonisation - How it links up with national Join Assistance strategies • Regional angle is very crucial and important but not fully developed – regional initiatives such as NEPAD has been left out in the implementation of the strategy

3. Pillar: Competitiveness and Employment • Welcome the comments on the importance of the role of the state in this strategy – because the previous ‘minimal state’ did not serve us better – a strong developmental state could facilitate private sector development through state intervention – However • Levelling the playing field to both domestic and foreign investors does not reflect the comparative/competitive advantage foreign investment has – there will have to discrimination the challenge is how to target them for better results • Flexibility in the labour market regulation to promote comparativeness would not be a sound advise with regard to creation of sustainable employment and job security • Privatisation of tertiary education as a strategy to build human capital and skills is likely to make it expensive and not reachable to the majority from the poor families. A policy mix would be required here.

4. Vulnerability and Resilience pillar There is no linkage between the pillar with the competitiveness and employment pillar This needs to move beyond handouts and safety nets to empowerments and safety nets There will have to be different mix of instruments for access to health services. Medical insurance through monthly contributions is not attenable in a continent where unemployment ranges between 25% to 45% and half the population are poor

5. Vulnerability and Resilience pillar • The bank needs to assist countries to facilitate • Citizens to participate in decision-making, public monitoring, and implementation of the national development plans and programs • People to have opportunities to acquire assets and have access to sustainable employment • Assist countries develop the right instruments to facilitate the achievement of the foregoing.

6. Foundation: Governance and capacity • Welcome the element in the strategy especially in calling for a strong developmental state that can intervene in the private sector development to promote efficiency and productivity – But - • It lacks strong linkages with the vulnerability and resilience section • There are no reforms geared towards making the state deliver better on safety nets but rather support PPP and create enabling environment • There is no talk of helping the state create the enabling environment for CSOs to have democratic ownership development plans rather than the bank wanting to deal directly with CSOs directly and even so this is limited to accountability issues

7. Foundation: Governance and capacity Banks intervention in this sector should be about • Putting citizens to be the primary focus for all development agenda • Enable people’s organizations, including social movements and civil society, to take part in the development and governance processes • This will include initiating processes and institutions that mobilises and transforms the voices of the hundreds of million of citizens’ across the continent into meaning and relevant development agenda

8. Foundation: Governance and capacity • The strategy therefore needs to focus on developing strong leadership and bureaucratic and organizational capacity at the national level capable of enhancing the human capacity of their citizens to participate and own development programs • Facilitating the institutionalisation of Local and national deliberative mechanisms and processes either through an act of parliament that makes it mandatory for the State to consult with non-State actors, or by ensuring that there is an informal but institutionalized process of consultation • CSOs are facilitated to engage with the process of national development not just in monitoring but also in planning implementation and monitoring and evaluation

9. Financing It would be important to see the budget allocation for each of the pillars It is not clear if the USD 25 billion is the value of the strategy or the resources the bank has towards the strategy The strategy will have to show how it is planning to leverage other sources of finances including domestic revenues towards this strategy

10. Regional integration and co-operation It is not clear what would be the institutional framework for implementing regional infrastructural development, regional and continental bodies including ECOWAS, EAC, SADC, NEPAD, ECCAS in facilitating regional development agenda ….but more so does the bank have this mandate? Thank you