Speaker: Aminata Ndiaye, Sciences Po.
Moderator: Wilson Tan (SIPA/LKYSPP) – Rapporteur: Kayo Matsushita (Tokyo University)
Problem
How to design channels of effective aid in Africa that promote good governance and economic growth?
Analysis
What AfDB provides is aid as a tool for good governance. This can make the whole process more transparent and efficient. This can improve the use of their resources. AfDB can be quite effective by creating a fund instead of creating a binding bilateral agreement. In this session the main focus is non-project operations; budget support and technical assistance.
A few areas of work within OSGE
- Tax Systems
African tax systems are generally characterised by low tax/GDP ratios. The support reform of tax policies and tax administration depend on aid which is not sustainable. - Transparent and Comprehensive Budgeting Procedures
National budgets ought to reflect a government’s political priorities. The Collaborative Africa Budget Reform Initiative (CABRI) should be supported. - Accountability, Transparency and Enhancing Budgetary Control
Credibility and reliability of governments depend upon regular auditing to ensure both the legality and efficiency of public expenditure. For this African Supreme Audit Institutions (AFROSAI) should be supported. - Revenues from Extractive Industries
- Capacity building for Governance in Fragile States
Restore basic functions of government in order to provide basic services and security for the population.
Governance
- Governance action plan (2008-2012); good financial governance and sound public financial management in RMC
- Anti- corruption measures are implemented selectivity
- So many factors and actors in the aid disbursing process are not effective.
- Ownership and harmonization among donors are critical; Joint association framework?
Governance is about participation, and ownership, what policy you want to do; shouldn’t be other way round. Under same objectives, it can work effectively.
Procumbent
There should be an international procumbent.
Accountability
- African Peer Review Mechanism; clear framework to asses it
Voluntary – yearly assessment of particular country and giving recommendation to avoid the governments become a team.
Solutions
Civil society can promote good governance, not the leaders.
- Promotion of good governance at multiple levels
- Increased donor harmonization
- Increased support to regional networks/NGOs
- Enhanced support to civil society through seminars/workshops
- Improved design of aid programs: effective conditionality to strengthen country systems
- Increased accountability and transparency of donors
“The ultimate objective of Good Financial Governance in Africa should remain the reduction of poverty by creating capable states that implement country-owned and country-led development strategies.”
Questions and Answers
When they deliver loans, do they deliver it to NGOs, civil society, or through the governments?
95 % aid to the government. In the budget (PBL) Support for NGOs specifically for promotion of governance should be through the governments.
