AfDB on Economics and Development
Yesterday evening Dr. Donald Kaberuka, President of the African Development Bank, gave a talk on developmental and economic priorities for Africa, and discussed what might be in store for the future.
Speaking at London’s Portcullis House; part of the Houses of Parliament, Dr. Kaberuka addressed business leaders, academics and members of the press. The event, called Africa: The Next Frontier for a Global Age, was chaired by Paul Collier, professor of economics at Oxford University and director of the Centre for the Study of African Economies.
It was produced by the Foreign Policy Centre, an independent UK think tank with strong political ties, and sponsored by Citibank, which was represented by CEO of the Africa Division, Naveed Riaz.
Dr. Kaberuka answered questions from the chair and the audience. He paid particular attention to the positive aspects of African economics: Its generally low fiscal deficit in comparison with Western states; it’s track record for sapient economic policy and it’s huge potential for rapid development.
He advocated the need for stronger governance, suggesting that in order for Africa to become an economic powerhouse it should adopt a federal system along the lines of China, India and Brazil, and claimed that whilst these markets are by now fully priced out, Africa isn’t: It is therefore ripe for innovative businesses to invest beyond the typically attractive sectors such as infrastructure and mining.
He also warned that a lack of higher education facilities was having a seriously detrimental effect on the labour market, and said that the biggest impediment to economic growth in the continent was the lack of reliable electricity.
He called for greater African input into international aid policies, and stressed the need for African states to make their own mistakes when deciding how it should be spent. ‘A good aid programme should be designed to fade itself out over time’ he said, and the fact that the role of aid has been diminishing throughout the continent reflects a move away from a patronage based system of aid.
He also underlined the importance of the G-20 gathering of world leaders, and expressed his continuing frustration that there are not enough African voices at the summits. However, he also said that some progress has been made with the creation of an African-chaired working group to discuss development.
Dr. Kaberuka is a Rwandan national, and served in that country as minister of finance and economic planning for eight years. He is widely credited as being instrumental in restoring stability to the country’s finances following the 1994 genocide. He was first elected as President for the African Development Bank in 2005, and has just won his second tenure.
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