A successful dev’t strategy has need for sustenance

Various economists and commentators on Africa’s development paradigm have held various opinions/views ranging from extreme pessimism to a series of confusing statements of optimism void of empirical research, and based on uninformed sentiments rather than reality on ground in Africa.

Monday, February 20, 2012
Prof. Nshuti Manasseh

Various economists and commentators on Africa’s development paradigm have held various opinions/views ranging from extreme pessimism to a series of confusing statements of optimism void of empirical research, and based on uninformed sentiments rather than reality on ground in Africa. And, although some of observations made by these parties hold water, the analysis of the underlying causes of Africa’s woes is wanting. The causes of Africa’s problems has been shifting and so has been the prescriptive solutions. The causes of Africa’s problems, unfortunately, has been owned up by multilateral and bilateral development partners and financial institutions, NGOs, and a few research agencies financed by western organizations, and little if any, has been owned by African elite nor academia for that matter. There is hope though that, this scenario will change as African elite take full ownership of their development agenda. In retrospect, Economist magazine, has published various articles from as early as 1996, where it was argued that, had African Countries followed better public policies as those followed by fast growing Asian economies, the region would have grown 4.6 per cent faster than its historical rates. In yet another article in 1997, the same Economist concluded that, even if Africa had followed better policies, bad climate, poor soils, and physical isolation were likely to limit the growth of Africa to around 2.3 percent par annum. Another 2002article in The Economist, labeled Africa a hopeless case, literally with no hope of ever growing. Recently however, The Economist run an article titled Africa, "rising continent”. Now, most of these economists and commentators have missed out on one fundamental issue: Africa is not a country, but a continent with many countries, like South America and others. Imagining that, Africa will develop as a continent is as simplistic, as imagining that Asia, or South America would take the same route.  The same commentators have deposited various prescriptive remedies to Africa’s woes, ranging from capital deficiency, (both financial, and human), corruption, human rights, democracy and voice and accountability. Although these are pertinent issues that must be addressed by African leadership elite, they nevertheless evolve with the development of real sector and not in isolation/stand alone. Development must be seen from a holistic view point depending on the circumstances, environment and economic drivers in each specific country. The Role Public Policy and the case of Rwanda.Many researchers are now conclusive on the role of public policy with regard to development. Thus, markedly different policies and markedly different policy mix, are appropriate to different countries at different times. Development is contingent and that there can never be one universal model. Thus, such policies as investment, macro and microeconomic, fiscal as well as monetary policies and the consistency with which these are followed, has tremendous impact on the trend of the country’s growth and thus development.Recently, The Government of Rwanda released a report that captured the results of EDPRS I. The results show fundamental achievements over a 10 - year period. Results that have been hailed by many local and international commentators who have used different terms to highlight the same, ranging from impressive development record, a development miracle, to, Aid works. And, although this was expected of such commentators, little or no analysis was made as to how such fundamental development was achieved. This then leaves readers to attribute it all and sundry which amounts to disinformation. Rate of Economic growth.Over the period covered by the same report, Rwanda’s GDP averaged 8 percent per annum and GDP per capital increased by more than 155 percent - rising from USD 212 in 2001 to USD 540 in 2010. What is more, this GDP per capital has been evenly distributed across board, which is significant in poverty reduction endeavors of the country. This saw the country reduce poverty by 12 percent, essentially uplifting up to 1 million Rwandans out of poverty positioning Rwanda among the top five countries that have achieved this feat in a record 10-year period. Furthermore, this impressive growth in GDP saw overall national poverty levels fall from 58.9 per cent in 2000/01 to 44.9 per cent in 2010/11. These are not mere statistics for GDP growth trends, as such growth has a human face which will be argued in next series. However, the performance of a country like that of a micro organization, is a function of and is influenced by good management/ leadership, and is specifically attributed to the CEO for an organization, and a President for a country in our case. No grey areas here. Rwanda’s leadership has been committed to exemplary economic and political governance which has led to high rates of growth and low levels of inflation, uncharacteristic phenomenon in the region we live in. Such growth rates feed into social sectors which as will be pointed out later in these series, recorded impressive rates of growth as well. As pointed out earlier, this growth episode was a result of many factors including consensus among development agents and partners as to which policies were to be pursued, ownership of these very policies by all and especially so, high level ownership and commitment to implementation of agreed policies, even when challenges to the attainment seemed insurmountable, and above all an efficient and effective bureaucratic system that surpasses even private sector mentality. To be continued next week.