Minister of Development Co-Operation Ms. Kari Nordheim-Larsen

ECOSOC. High level segment.

Agenda item 2: Development in Africa. Including the implementation of the United Nations new agenda for the developmen of Africa in the 1990s

Geneva, 4. july 1995

Mr. President,
First I would like to congratulate you upon your election as President of ECOSOC. I am convinced that under your able guidance this ECOSOC session will reach constructive results.

Mr. President,

This high-level segment discussion on the Development of Africa underlines the international awareness of the urgent action needed to resolve the fundamental economic and structural problems facing the African continent. The report of the Secretary General on the development of Africa, and the implementation of the United Nations New Agenda for the development of Africa in the 1990s (NADAF), gives a broad description of the enormous challenges facing the African countries. There is no single-faceted answer to the problems of Africa. Only a comprehensive approach by the African countries themselves covering all aspects of their development problems, and a coordinated international assistance effort will have hope of bringing sustained economic development to the continent.

When the UN General Assembly adopted the United Nations New Agenda for the Development of Africa four years ago, it was with the clear recognition that the similar Programme of Action for African Econonomic Recovery and Development 1986-90 had not reached its objectives. The results of the implementation of the agenda have been mixed so far, as compared to the targets. The GDP of Africa grew by 2.4% in 1994, compared to only 0.9% in 1993 and -0.3% in 1992. Despite the general increase in GDP on the African continent, the income per capita in Africa was on the decline also in l994, falling by 1 per cent (the same rate as in the 1980's). The economic development does not keep up with the population growth which stands at roughly twice that of the world average. We have to recognize that economic and social development is a cumbersome process. We have to be impatient, but also realistic in our approach. Africa in the mid-l990's is characterized by growing differentiation. Some countries on thc continent are already on the right track, hopefully others will follow suit. When evaluating our efforts by the end of this century I, thus, hope we can look back on a period of sustained economic development in a number of African countries provided they maintain their efforts with continued long-term assistance from their partners in the north.

A precondition for enhancing economic development is political and social stability. The optimism prevailing at the end of the Cold War has to some extent been replaced by new pessimism as new conflicts based on political socio-economic and ethnic differences have erupted. Peace seems not to be enough to guarantee growth. The threat of violence may in itself often plunge a country into a downward spiral of economic decline. It is my firm belief that a foundation for economic development can only be found in societies where the political stability is based on the democratic participation of the population, respect for human rights and an equitable distribution of income. The international community has a clear responsibility to help foster such a development and channel development assistance to where it is conducive for good governance. A sequential approach including conflict prevention, relief, reconciliation and long term development assistance is crucial. The systems of early warning and conflict prevention activities of the international community has to be strengthened not to allow violent conflicts to undermine the development potential of the African continent. Africa has made some important steps in initiating and promoting peace within the region, inter alia through launching the Peace Fund, of the Organization of African Unity.

The peaceful constitutional transtion from apartheid to a new democratic and non-racial South Africa and the transition from long established one-party rule to democratic governance in a number of other countries has kindled national and international confidence in a positive development.

Mr. President,

The New Agenda for the Development of Africa in the 1990's presents a comprehensive program for development. Allow me to dwell on just a few items on that agenda;

• The momentum of sustainable growth-oriented economic reforms must be maintained. Delays in removing structural deficiencies inherent in the economies will further delay fulfilment of the growth potential on the continent. However, a number of countries are now on the verge of moving from short-term macroeconomic stabilisation and mere crisis management to sustainable economic and social development. Economic growth spurred by accelerated transformation and diversification of the economies, and by renewed investments in both physical infrastructure and human resources, must be pursued. The immediate task now is to transform GDP-growth to real per capita growth.
• African countries must strive to improve their record on what is now commonly referred to as good governance. Besides respect for fundamental human rights and living democratic institutions, improved accountability, predictability and transparency in government affairs are all prerequisites for improving internal resource mobilisation, attaining long-term developmental goals and thus reducing dependency on external assistance. Bad governance is tantamount to a general misappropriation of funds which could otherwise have been used for development purposes. The Norwegian Government will strongly support African governments which are sincere in their efforts in creating an atmosphere of good national administration. Reductions in military expenditure in developing as well as developed countries should be strived at as it could mobilise substantial resources for development purposes.
• People are both the means and the most important end of development as pointed out, inter alia, in the African Charter for Popular Participation in Development and Transformation. Any successful development effort must therefore be based on the concept of mobilisation of human resources. There seems now to be a broad consensus among African countries and the international community that capacity building and development of competence in the public and private sectors will be crucial. Increased integrity and efficiency of national institutions are essential for the credibility of national policies and as a basic condition for sustained growth. Capacity-building is given a prominent place in all new country-strategies for Norwegian assistance to African countries. Because of strained resources many countries have felt obliged to give priority to the training of an elite to become public officials and modern sector executives. Priority should now be given to basic education and the eradication of illiteracv and primary health care. I would like to take this opportunity to urge developed and developing countries alike to pursue the 20/20 objective for basic social programmes as was agreed at the World Summit for Social Development. In my opinion, this session of the ECOSOC is the right forum for discussing the follow up of this objective, which my Government belives is urgently needed. In addition. I would like to emphasize that the mobilisation of women remains essential to thc development of the agenda, not the least in Africa. Improving the status of women through their education is probably also the best of all strategies towards a reduction of birth rates.
• This brings me to the intertwined issues of population growth, environmental degradation and the challenges in agricultural production. Current rates of population growth imply that Africa risks having its population doubled every 20 years. Even under the most favourable scenarios, it is difficult to achieve economic growth rates that outpace such population growth. World Bank projections indicates GDP growth rates for Africa ( 1994 to 2000) at somewhere between 2.4 and 3.9 per cent, which would not be enough to ensure a significant rise in per capita income, considering population growth rates at 3 per cent on average per year. Moreover, it puts unbearable strains on the environment, in the form of deforestation, a gradual depletion of Africa's rich genetic resources, degradation of arable land and subsequently food deficits. In other words, if this cluster of problems is not urgently and effectively addressed by the African countries themselves and their cooperation partners, robust growth and ecologically sound and sustainable development will be unattainable.
• HIV/AIDS is becoming one of the most serious development problems in Africa and are inflicting grave human sufferings on the affected. This epidemic affects in particular the most productive age group in the population. However, HIV and AIDS can not be treated as an isolated health problem. Only a comprehensive and multi-disciplinary approach addressing also the social and economic consequences can be successful. Positive signs in reduction of the incidence of infection in a few geographical areas have been reported by UNDP thanks to such a multi-faceted approach. It is a challenge to coordinate all acitivities targeting the AIDS/HIV epidemic. In this regard I welcome the new UN AIDS programme, which will combine the efforts of the total UN system.
• Regional and sub-regional economic cooperation and integration will enhance inter-regional trade and cross border investments and thus serve as an impetus for growth. The fact that the Abuja Treaty came into effect in 1994 establishing the African Economic Community is a significant event. The first stage of the treaty which covers the first five years of its operation, aims at strengthening thc existing subregional economic communities. The changes underway in several subregional organisations should be finalised to enhance harmonisation at subregional, regional and continental level, as envisaged in the protocols drawn up under the Abuja Treaty. The post-apartheid South Africa could make important contribution in this development, and the donor community should actively support Africa's own efforts at cooperation and integration.

Mr. President,

The prime responsibility for bringing about economic recovery and development on the African continent rests with the African countries themselves. However, the African countries can hardly succeed or bring about such a development without outside assistanse and cooperation. The international community clearly has a special duty to assist Africa.

The responsibility for improved governance and continued adjustment applies to the industrial countries as well as the developing world. This applies particularly regarding the task of securing a stable and growth-conducive world economy. In this connection let me mention some essential elements;

Market access for African countries to the developed world is of utmost importance. I belive that measures to stimulate imports from developing countries were delayed in the anticipation of the completion of the Uruguay Round. It is therefore crucial that such measures now are identified and implemented within the framework of the WTO agreement. Norway has taken various steps to considerably imply that these countries will be granted duty free and quota free market access for all agricultural products, with a few exeptions.

The resource flow to Sub Saharan Africa is of particular concern to my Government. Few of these countries have been able to attract foreign direct investments of any significance, nor have they obtained renewed access to international capital markets. The multilateral financial inflows to thc African countries have to some extent made up for these shortcomings. In spite of the fact that these resources in most cases have financed high quality development efforts, recent studies made by the Bretton Woods institutions show that quite a few countries have developed a multilateral debt problem, or will do so in the foreseeable future. I have noted with some satisfaction that in-depth analysis and innovative discussions are presently taking place in the World Bank and IMF on the multilateral debt issue, and I look forward to spesific proposals emerging from this process. On official bilateral debt I welcome the improved terms decided on within the Paris Club in December last year - the so called Naples terms. My Government should like to see even more favourable terms. In the Paris Club Norway has advocated a debt reduction of up to 80 per cent where appropriate.

Last, and as underlined in the Secretary General's report, official development assistance must increase beyond present levels. While the NADAF called for US$ 30 billion in ODA for Africa in 1992, Africa received only $ 25 billion. Net ODA-flows further declined by 6% in 1993. For the last five years of this century, the donor countries must take decisive steps to finally reach the widely endorsed 0.7 per cent ODA/GDP target, as well as the specific targets for the least developed countries. Norway attained 1.05 % of GDP last year, while several of the more important OECD countries have failed to improve their ODA performance. The further decline in assistance to Africa must be reversed, and they should strive to attain the target 0,7 %. We must take the Copenhagen commitment seriously, and increase donor resources, particularly to Africa.

Mr. President,

Bringing about African economic recovery and development is a complex and multi-faceted task. Extensive analysis and discussion in the UN and other fora has improved our understanding of Africa's interlinked development problems, but also of a growing diffierentiation in the mid 1990's. This knowledge must be reflected in our policies and translated into concrete, concerted and ambitious action by the international community.

Africa remains the priority area for Norwegian development assistance. Norway is fully committed to thc NADAF as demonstrated by our extensive bilateral and multilateral development cooperation with Africa. More than NOK 2.6 billion of Norwegian bilateral development assistance was channelled to Africa in 1994.

In our view, the situation in Africa must remain a priority item on the UN agenda. The UN still has a unique role to play by monitoring, coordinating and by leading the way for the development assistance to Africa.

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Lagt inn 28 juli 1995 av Statens forvaltningstjeneste, ODIN-redaksjonen