Presenter: Mr. Okey Onyejekwe, Regional Advisor on Governance,

1. Mutual Review of Development Effectiveness in the Context of NEPAD:Good Governance and Capacity Building Presenter: Mr. Okey Onyejekwe, Regional Advisor on Governance, Development Management and Policy Division (DPMD), ECA

2. Outline Introduction State of Governance : Key Findings AGR Towards Good Governance : Key Challenges Capacity Deficits: Overarching Challenge Action Frontiers African States OECD countries Performance Benchmarks African States OECD countries Conclusion/Way Forward

3. Introduction • Consensus between Good Governance Sustainable development • Significant achievements and commitments towards Good Governance • Major challenges remain • Timeliness of Mutual Review of Development Effectiveness

4. Global commitment to Good Governance The following initiatives are illustrative of these Commitments: • AU/NEPAD on governance, Inaugural Summit of AU in Durban: Declaration on Democracy, Political, Economic and Corporate Governance (2001, Article 79 and 2002, Article 8) • G-8 Africa Action Plan (2002, Article 1.1. - 1.7 and 2.1 & 2.2)- Support for Capacity Building and Conflict Resolution Initiatives • Commission for Africa Report

5. Political, Economic Governance and Institutional Effectiveness What is the current state of governance in Africa? Based on ECA’s recent 28 country study on governance in Africa, the following are the key findings: • Adherence to constitutionalism • Democratic and multiparty elections • Macroeconomic stability and public financial management • Medium Term Expenditure Framework (MTEF) and PRS

6. Institutional Effectiveness and Accountability Key Findings • Checks and balances • Greater independence of institutions of governance, • Resilience of traditional institutions of governance • Growth of Private owned media • Independent oversight regulatory bodies • Public-private partnerships

7. Political, Economic Governance and Institutional Effectiveness Key Challenges These gains can be threatened by: among others • Violent conflicts • Corruption • Lack of gender equity • Limited progress in human rights in Africa • Weak economic growth and continued high level of poverty • Weak governance institutions

8. Capacity Deficit and Governance in Africa One of the major findings of the African Governance Report is the prevalence of Capacity Deficits at all levels of African Governance Institutions

9. Action Frontiers – For African Countries Political and Economic Governance • Deepening and extending good governance across Africa. • Improvement of economic management and public financial systems • Strengthen systems for increasing transparency and accountability

10. Action Frontiers – For African Countries Contd. Capacity Building • Create national strategies for country specific capacity development • Establish a monitoring process -Performance Indicators • Retention and reversing the “brain drain” • Reform of the civil service • Strengthen and/or establish Africa-wide mechanisms for mutual learning

11. Action Frontiers – For OECD Countries Political and Economic Governance • OECD support for AU conflict prevention and peace-building capacities • OECD countries making effective contribution to transparency initiatives • Assist African countries in policy and technical areas in Economic and Corporate Governance

12. Action Frontiers – For OECD Countries (Contd.) Capacity Building • Aligning donor approaches to capacity development with PACT principles • Reform existing donor practices on technical assistance in capacity building • Utilize national institutions for capacity development • Supporting new regional processes on capacity enhancement • Participate in monitoring processes established by African countries

13. Performance Benchmarks for African Countries (Selected) Political and Economic Governance • Steady and measurable progress in implementing the APRM • NEPAD post conflict construction framework is established and operative. • Number of countries adopting the MTEFs Capacity Building • Increased investment in the education sector and adequate remuneration for skilled personnel • Strengthened capacity of the civil service and service delivery performance consistent with the MDGs

14. Performance Benchmarks for OECD countries (Selected) Political and Economic Governance • Support for APRM programme of action and implementation of the ECA action plan • OECD countries making effective and measurable contribution to transparency initiatives • UN Convention on Corruption ratified by all OECD countries Capacity Building • Number of multi-donor programmes supporting holistic capacity building efforts in African countries • Effective support for regional capacity within APRM, NEPAD, AU, ECA and the RECS

15. Conclusion: Beyond Resources The attainment of these Action Frontiers will need enormous resource mobilization by African states and the development partners. It will require more than resources, such as sustained political will, a radical change in mind set and the willingness to be innovative and imaginative!

16. THANK YOU! Development Policy and Management Division (DPMD)