Economy
World Bank and IMF making promises on Africa tour 

The promises were made in a joint communiqué from the just-ended Development Summit between the leaders of the two international financial institutions, and African heads of state from Eastern and Southern Africa held at the Dar es Salaam Sheraton Hotel. Present were President Mkapa of Tanzania, President Moi of Kenya, President Muluzi of Malawi, President Chissano of Mozambique, President Mugabe of Zimbabwe, President Mogae of Botswana, President Mbeki of South Africa, President Kagame of Rwanda, President Isayas Afewerki of Eritrea, President Chiluba of Zambia and President Museveni of Uganda and Meles Zenawi, Prime Minister of Ethiopia. 

Currently, there are only five African countries, which have benefited from the HIPC initiative, namely, Burkina Faso, Mali, Mozambique, Uganda and Tanzania. At the Dar es Salaam summit, the World Bank and IMF agreed to co-operate with African leaders to ensure timely delivery of debt relief under the enhanced HIPC initiative.

The meeting also focused on some of the critical issues confronting Africa today: improving governance and resolving conflicts; the need to invest in people, with an emphasis on education and health and for a concerted effort to fight HIV/AIDS; ways in which to make African economies more competitive; and meeting requirements for financing African development.

As regards to good governance, peace and stability the region's leaders called for increased understanding by the international partners of the difficult, time-consuming and resource-intensive process of strengthening governance and managing conflict. Speaking at the news conference, the World Bank President James Wolfensohn, said poverty reduction cannot be achieved by the leadership alone but must also involve civil society and the private sector.

He said solving poverty was not a short- term task. It required a lot of things to be in place, such as good governance, legal and traditional systems that work to protect the people. He also said that steady progress in eradicating poverty would require determined efforts to raise the rate of economic growth, improvement in access to education and health services and containment of the HIV/AIDS pandemic. 

The World Bank boss further said that African countries would need to strive for more effective integration into the global economy by creating the conditions for substantial private capital inflows and expansion of exports. "I am very encouraged that there is an emerging collective leadership in fighting poverty and integrating Africa into the international economy," Wolfensohn said.

The two leaders of the international financial institutions also undertook to assist in encouraging the developed countries to eliminate barriers to their markets and to raising the level of financial support for developing countries to the agreed target of 0.7 percent of GNP. However, the IMF Managing Director, Mr Horst Koehler said Africa should not use IMF and World Bank as scapegoats for the problems facing the continent.

Tanzanian President Mkapa told a news conference that the discussion between the African leaders and the two international financial institutions focused on a number of issues including good governance, peace and stability, private investment, development of human resources and finance.

However, he said the summit recognized that the primary responsibility for ensuring progress in the region rested with the African countries themselves. Mkapa said the summit, however, resolved that the development partners like the World Bank and IMF, have an important role to play, not only in support of specific initiatives within the countries, but also in opening up markets for African exports and strengthening Africa's voice in key international organisations.

Malawian President Bakili Muluzi said he would campaign for total debt relief for the impoverished African continent at the Dar es Salaam meeting. "The meeting will be my golden chance to campaign for total debt relief which is the only sure way to reduce poverty levels on the African continent," Muluzi was quoted as saying. Africa has a debt burden of US$ 170 billion, according to the World Bank. 

The presidents of the World Bank and the IMF have been touring Africa this week to "listen to the African leaders". According to World Bank country director for Tanzania and Uganda, James Adams, "the Bank and the Fund also wish to dialogue with Africa on a more regular basis, they want to seek a consensus on how to reduce poverty and improve the quality of life of the people."

The World Bank claims the trip is a demonstration of its support for the region and its commitment to fight poverty and the HIV/AIDS epidemic in Africa. But most Africans are sceptical about the value of the institutions and their claim to fight poverty when they are not willing to listen to the poor. The trip has been criticised because the leaders would "hardly encounter the 'real people'" touring Africa, according to Kwesi Owusu of the Africa programme of the anti-debt group Jubilee Plus. 

Although Wolfensohn and Koehler have met few "real people", their trip has proved quite a success. The leaders have been seen listening and discussing, not overriding local decisions, as they are more known for. They have also made concrete promises. In Nigeria the two leaders promised an "enhanced support" to Africa's most populous nation as President Olusegun Obasanjo struggles amid widespread social and ethnic tension to consolidate democratic reforms initiated since the end of military rule in 1999. 

- We had a very fruitful visit today in Abuja, Wolfensohn said. "We are delighted by the progress Nigeria is making since its return to democratic governance less than two years ago. We note with satisfaction that President Obasanjo and other Nigerian political and economic leaders are agreed to work together to face Nigeria's many challenges," he said, commenting on the bank's promises. 

Yesterday in Dar es Salaam, the leaders promised to enhance the HIPC programme. The leaders have been listening in Africa and they have demonstrated an interest in improving their African records. There remains much work, however. 

Partly based on an article by Matilda Kasanga, Sunday Observer (Tanzania), delivered through Misanet. 
Other sources: World Bank, afrol archives and press clippings

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