Don't forget Africa

By Benedicte Vibe Christensen During the recent global financial crisis, the focus has understandably been on advanced and emerging market economies. But the impact has been global, including on Africa. Take growth performance: during the five years ending in 2008, real GDP in Africa grew by 6 percent a year-impressive growth by past standards. This year, growth is projected to be only 1 1/2 percent-well below population growth as well as trend growth. There is a real risk that the promising economic progress that Africa experienced in recent years will put progress toward the UN's Millennium Development Goals for 2015 in further jeopardy.

The situation of Africa deserves to be more at the forefront of policy makers' attention, not just for humanitarian reasons but because of the economic and security benefits the rest of the world would reap from greater prosperity in the continent. Having a U.S. President of African heritage provides fresh hope that the issues facing Africa can be mainstreamed and not left out of global economic policy discussions. Africa needs to be considered as a peer, not as a previously colonized continent. The tone and spirit of engagement should be changed to a relationship built on partnership, respect, and trust. A good example is agriculture. It is not solely the fault of Africa that its agriculture sector has been neglected for decades. Agriculture was simply not a donor priority until recently when food prices shot up and shortages occurred. The sector has also been a victim of protection of agriculture in advanced economies.

In practice, what should be done? Africa has to be allowed to play its part in strategic discussions of global issues. With the G20 having been designated as the premier forum for international economic cooperation, Africa should have proper representation in it. South Africa is the only African member of the G20, and its problems--those of an emerging market economy--differ greatly from those of its low-income neighbors. Better representation for Africa is an issue of legitimacy and good governance for the international community. Discussion has correctly focused on the issues of voice and representation in the IMF. But this issue also applies to the G20.

Apart from representation, it is important for the G20 and other international fora to consider global issues from an African angle. This goes beyond the provision of additional financing to deal with the balance of payments impact of the crisis, e.g., through enhancement of the resources of the IMF for the low-income countries. There is a need for additional analysis of the problems of Africa. For example, what are the lessons of the recent crisis for strategies for integrating Africa more effectively into the global economy? Should Africa liberalize its capital movements or hold back? Are there lessons for its financial sector, even if it remains underdeveloped in much of the continent? What is the scope for the official sector in donor countries to work more closely with the increasingly vibrant private sector in Africa? If advanced countries are not considering these more strategic issues and acting upon them, then China, India, and other new donors may well fill the vacuum. To be sure, Africa needs all donors-- both traditional and new ones--but their involvement should be well-coordinated and consistent with the economic objectives and sustainability of the economies.

This requires Africa and its leaders to play their part. It is all too easy for the richer countries to hold back funding because of governance concerns. Countries rich in natural resources have a special responsibility for ensuring that revenues from these resources are handled in a transparent and appropriate manner, first and foremost because of the interests of their own people, but also to alleviate the justifiable concerns of the rest of the world. The Climate Change Summit in Copenhagen in December will bring a welcome opportunity for taking account of the impact of climate change on Africa. A large part of the damage expected from climate change on agriculture and tourism, is due to the actions of other countries, but Africa is ill-prepared to deal with its implications, in terms of financial resources and know-how. Advanced countries have a moral obligation to help Africa deal with the impact of climate change. This is likely to meet resistance because of the current budgetary pressures in many advanced countries. But the orders of magnitude should be kept in mind. For example, the Gleneagles commitment to double aid to sub-Saharan Africa between 2005 and 2010 amounted to $25 billion in additional aid, which represents a small fraction of the government support given to U.S. financial institutions in the recent crisis. In short, it is time to mainstream the issues relating to Africa in the global economic strategy and "not forget Africa".

The Writer is the Former Deputy Director of the African Department, IMFand writes in her own capacity.