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Africa’s hope from World Economic Forum
2006-02-02 08:08:10
By Editor
The World Economic Forum is in session in the Alpine ski resort of Davos, in Switzerland. The forum is a crucial meeting meant to review and chart the path for the global economy in the next one-year.
For the developing and in particular African nations, our concern is whether the forum will be able to factor in their deliberations, the myriad hiccups that at the moment negate development, and delivery of basic services to the people.
Our concern in this case is that the World Economic Forum commits itself to supporting efforts by developing countries to pursue sustainable, open trade, job creation, poverty reduction, and good governance.
Indeed, these actions, it is our contention, need to be reinforced by stronger international action and partnerships, including reforming trade, more and more effective aid and stronger private investment flows in order to make progress on the Millennium Development Goals (MDGs).
We are further concerned that most goals might not be met by most developing countries. It is in no doubt that there is serious concern by many governments and development partners that at the current trend, most MDGs will not be achieved within the timeframe.
But there is optimism that Davos has the capacity to offer the requisite input in trying to ensure the realisation of the MDGs that hold the panacea to economic woes in the developing countries. We strongly believe that the forum has the capacity to do something, considering the scope of representation.
For instance, it is expected that 2,340 delegates from 89 countries-among them a dozen heads of state, 77 cabinet ministers, 23 religious leaders, 13 union bosses, 735 chairmen and Chief Executives of multinational corporations are in attendance.
We therefore are even more hopeful that the atmosphere at Davos is a decent barometer of economic and political stability in the world, and this year, the mood on economics will hover somewhere between hope and foreboding.
However, there are many questions that remain wanting. It is indeed, a fact that while developing countries are doing their part in maintaining macro-economic stability and in pursuing structural reforms, developed countries are lagging behind in fulfilling their commitments made at Monterrey, in Canada in 2000.
In particular, advanced economies continue to fall far short of reaching the agreed UN target of 0.7 percent of gross national income for official development assistance.
Besides, the developed countries and the Bretton Wood institutions need to delve in assisting the developing countries attain the MDGs.
It is even encouraging that among the corporate titans who are trying to make sense of these shifting winds are Bill Gates of Microsoft, Michael S. Dell of Dell Computer, Larry Page of Google, Sir Richard Branson of the Virgin Group, Carlos Ghosn of Renault, and E. Neville Isdell, the Chief Executive, Coca Cola.
It is important to stress that the corporate world has a social responsibility to plough back part of its massive profits to helping the developing world. The developing world constitutes a substantial fraction of the corporate world’s market.
And in this area, it is important to appreciate the sterling effort by Gates through the Bill and Melinda Gates Foundation. The foundation is involved in facilitating the achievement of MDGs particularly in the areas of health and education on the African continent.
It is our belief that a private sector-driven growth resulting in new jobs and higher tax revenue, which can be used to finance poverty-reducing public expenditures, is critical to the success of country-led efforts to reduce global poverty.
Success in Davos can only complement these developments, and we stress the importance of translating the recently agreed WTO organisation frameworks into tangible results.
We urge all parties at Davos – governments, corporate world, IMF and World Bank – to participate fully in the support towards this end, and help developing countries assess the impact and provide additional support to address potential adjustments for the realisation of the MDGs.
With celebrities, entrepreneurs and world leaders, all in attendance, Davos is indeed the perfect place to lobby for a good course for the developing world.
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