| United Nations | A/RES/43/27 |
General Assembly
Distr. GENERAL
18 November 1988
ORIGINAL:
ENGLISH
A/RES/43/27
56th plenary meeting
18 November 1988
Mid-term review and appraisal of the implementation of the United Nations
Programme of Action for African Economic Recovery and Development 1986-1990
The General Assembly,
Recalling its resolution S-13/2 of 1 June 1986, the annex to which
contains the United Nations Programme of Action for African Economic Recovery
and Development 1986-1990,
Recalling its resolution 42/163 of 8 December 1987,
Emphasizing that the African economic crisis is one that concerns the
international community as a whole and that the accelerated implementation of
the Programme of Action requires further effective action by all parties
concerned,
Taking note of the report of the Secretary-General on the mid-term review
of the implementation of the Programme of Action,
Taking note of the mid-term assessment of the implementation of the
Programme of Action, prepared by the Permanent Steering Committee of the
Organization of African Unity at its fourteenth ordinary session,
Taking note also of the contribution made by individual Governments,
intergovernmental organizations and non-governmental organizations to the work
of the Ad Hoc Committee of the Whole of the General Assembly on the Review and
Appraisal of the United Nations Programme of Action for African Economic
Recovery and Development 1986-1990,
Taking note further of the report of the Ad Hoc Committee of the Whole,
1. Adopts the conclusions of the mid-term review and appraisal of the
implementation of the United Nations Programme of Action for African Economic
Recovery and Development 1986-1990, consisting of an assessment of the
responses and measures to accelerate the implementation of the Programme of
Action, as set forth in the annex to the present resolution;
2. Decides to conduct a final review and appraisal of the
implementation of the Programme of Action at its forty-sixth session.
ANNEX
Mid-term review and appraisal of the United Nations Programme
of Action for African Economic Recovery and Development
1986-1990 and recommendations for the acceleration of its
implementation
I. INTRODUCTION
1. The United Nations Programme of Action for African Economic Recovery and
Development 1986-1990, which was adopted by the General Assembly in response
to the critical economic situation in Africa, is based on mutual commitment
and co-operation between Africa and the international community.
2. In the Programme of Action, Africa committed itself to launch long-term
programmes for self-sustaining socio-economic development and growth. The
international community committed itself to assisting Africa in achieving this
objective.
3. The African countries committed themselves to giving priority attention
to necessary economic reform as mentioned in Africa's Priority Programme for
Economic Recovery 1986-1990 adopted by the Assembly of Heads of State and
Government of the Organization of African Unity at its twenty-first ordinary
session, held at Addis Ababa from 18 to 20 July 1985, as a basis for
broad-based, sustained economic development; the rehabilitation and
development of agriculture; other sectors supportive of agriculture; measures
to combat drought and desertification; and the efficient development and
utilization of human resources.
4. The international community recognized that the economic recovery and
development efforts of African countries must be supplemented by complementary
action on its part through intensified co-operation and substantially
increased support. It also realized that lasting solutions to the serious
exogenous constraints, over which Africa has no control, will have to be
found, since their persistence will impede the efforts of the African
countries. It therefore committed itself to making every effort to provide
sufficient resources to support and supplement the African development
effort. The international community further appreciated that Africa's efforts
would be greatly facilitated if flows of external resources were predictable
and assured and if the quality and modality of external assistance and
co-operation were improved. It also recognized that, to bring about an
improvement in the external economic environment, the international community
should address and examine the external factors that aggravate the African
situation, especially in terms of trade and the need to deal urgently with
commodity issues and alleviate Africa's debt burden. The Programme of Action
equally emphasizes the importance for the international community to increase
official development assistance to African countries and to improve its
quality and effectiveness.
5. The Programme of Action provides an important framework for co-operation
between Africa and the international community, and all parties wish to
reaffirm their commitment to the Programme of Action. The continuing gravity
of the economic situation in Africa requires that all partners take urgent and
decisive actions to accelerate and ensure the effective implementation of the
Programme of Action during its remaining period.
6. In the Programme of Action, the international community recognized the
importance to African economic development of genuine peace and security, as
well as of the strengthening of international co-operation.
7. The review of measures taken to implement the Programme of Action
demonstrates that most African countries have adopted significant policy
reforms to improve the overall management of their economies. The
determination with which African countries are pursuing and strengthening
these reforms is courageous and commendable, particularly since in many
countries such measures involve severe social costs and political risks. Many
countries have also faced continuing climatic problems and natural
calamities. The political will demonstrated by African countries and the
commendable reform and policy reorientation measures that have been put in
place should be sustained. Appropriate reforms should be embarked upon by
those countries that have not yet initiated the process. The Governments of
African countries should also play a key role in the process of co-ordination
of external assistance.
8. For its part, the international community has taken important initiatives
in support of the African efforts, through the Special Programme of Assistance
of the World Bank, the Enhanced Structural Adjustment Facility of the
International Monetary Fund, and new bilateral aid commitments. Resource
commitments to Africa for the years 1988-1990 will increase and disbursements
will assist countries implementing reforms. Furthermore, the international
community has declared its intention to continue to support the efforts of
African Governments to implement the Programme of Action.
9. The reform and restructuring that are being undertaken by African
countries and the ongoing initiatives taken by the international community
thus constitute an important beginning. However, the overall performance of
the African economies remains unsatisfactory. Despite earnest efforts to
carry out adjustments in their national economic policies, most African
countries have found little reprieve from the harsh impact of climatic
conditions and an unfavourable external economic environment. Internal
constraints, and the adverse impact of exogenous factors to which African
economies are highly susceptible, are impeding the reform process and are
severely hampering African development.
10. Dealing with the African crisis is a priority concern for the
international community and the United Nations. It is therefore a matter of
urgency that the promising actions that have been taken by all parties
concerned to implement the Programme of Action should be strengthened and
accelerated. Sustained and unfaltering efforts made by African countries must
be matched by substantial and urgent efforts by the international community to
provide support to them at the required levels and to create an international
environment favourable to the process of reform and restructuring.
II. ASSESSMENT OF THE IMPLEMENTATION OF THE UNITED NATIONS
PROGRAMME OF ACTION FOR AFRICAN ECONOMIC RECOVERY AND
DEVELOPMENT 1986-1990
A. Response of African countries
11. The Programme of Action was designed and adopted to provide an important
framework for co-operation between Africa and the international community in
fostering economic recovery and development on the African continent. The
continuing gravity of the economic situation in Africa requires that all
partners take urgent and decisive actions to accelerate and ensure the
effective implementation of the Programme of Action during its remaining term.
1. Agricultural development
12. Agriculture, on which more than 75 per cent of Africa's people depend for
their livelihood, has been a major area of sectoral reform. More countries
have given higher priority to channelling resources to agriculture, with the
particular aim of making progress towards food security and achieving
increased agricultural production. As regards export crops, almost all
countries have implemented price incentive measures, and some have adopted
measures to liberalize marketing policies, to increase the share of the export
value retained by farmers and to bring prices into line with world market
levels. A large number of African countries have instituted a wide range of
measures to mitigate food emergencies. Approximately half the countries in
the region now have various types of national emergency preparedness
mechanisms, about eighteen countries have early warning systems and many have
set up national food security arrangements.
13. The efforts of African countries to ensure food self-sufficiency and to
increase their exports have been hindered, among other things, by the
following factors:
(a) The recurrence and persistence of such phenomena as drought, locust
infestation and floods;
(b) The decline of international commodity prices at a time when African
Governments raised prices for producers;
(c) Competition from food exports that benefit from all kinds of direct
or indirect support measures;
(d) The inflow of lower-priced agricultural products concurrently with
the adoption by many African Governments of import liberalization policies.
2. Other sectors in support of agriculture
14. To enhance agricultural development, attention has been given to the
rehabilitation and maintenance of infrastructure that supports agriculture.
In particular, emphasis has been placed on the production of agricultural
tools, small-scale irrigation equipment, fertilizer, pesticides and other
chemicals. Within the general constraint of scarce foreign exchange, efforts
have been made to modernize, rehabilitate and expand food-processing and other
agro-based industries. Inadequate transportation facilities also remain a
critical bottle-neck in many countries. Similarly, the agro-based
manufacturing sector has stagnated or grown only marginally.
3. Drought and desertification
15. African countries are determined to reduce the effects of drought and
desertification. The measures taken to that effect include the development of
water sources, the building of small dams and the development of renewable
sources of energy to replace fuelwood. Despite cyclones, floods and other
calamities, the countries affected are resolutely determined to pursue
activities to combat drought and desertification. Overall, the African
countries are determined to fight against every new threat to their
environment, including the dumping of industrial or toxic waste in the
continent.
4. Human resources
16. African Governments have always considered that human resources
development and planning are key to the economic recovery and development of
the continent and that the efficient utilization of these resources should
become a major objective of their national policies. Since the adoption of
the Programme of Action, the majority of African countries have put particular
emphasis on formulating national literacy and vocational training programmes,
elaborating information systems, setting up project appraisal machinery and,
in certain cases, improving educational systems. Adapting training and
educational systems to the development objectives of the Programme of Action
is difficult, among other reasons, because of budgetary constraints.
17. African countries have also adopted measures to promote the effective
participation of the population in the development process. In so doing, they
have put particular emphasis on the role of African women, not only as
beneficiaries but also as agents of development. However, as underlined
in the Khartoum Declaration, adopted on 8 March 1988 by the International
Conference on the Human Dimension of Africa's Economic Recovery and
Development, internal and external constraints may counter the efforts
undertaken by Africa to fully develop its human resources, especially in the
high-priority fields of health and education.
18. Particular attention has been paid by some African countries to their
population policies on the basis of the Kilimanjaro Programme of Action for
African Population and Self-Reliant Development adopted by the Second
African Population Conference and endorsed by the Economic Commission for
Africa in 1984. A growing number of countries are putting in place national
policies designed to harmonize population growth with economic and
environmental capacities, and formulating specific policies and action plans
to address population issues in a long-run development perspective. Effective
implementation of these policies, however, still faces immense problems, which
include a lack of resources, in particular trained personnel, and a low level
of public support. Future efforts must focus on overcoming these problems.
5. Policy reforms
19. Since the adoption of the Programme of Action, most African countries
have adopted significant policy reforms to improve the overall management of
their economies. About thirty countries are undertaking stabilization or
structural adjustment programmes in conjunction with the World Bank and the
International Monetary Fund. These efforts are intended to improve economic
performance, bring about accelerated recovery within the context of the
Programme of Action and lay the foundation for self-sustaining growth and
development.
20. The determination with which most African countries are pursuing and
strengthening economic policy reforms is courageous and commendable,
particularly since in many countries such measures involve social costs and
political risks. However, reforms have not been adopted by all Governments;
nor are they being pursued with equal vigour in all countries. Policy reform
takes time to have a demonstrable impact on economic performance. Available
data on the achievement of structural adjustment programmes, while incomplete,
suggest that economic reform is beginning to make a positive impact in a
number of countries. Nevertheless, in some other countries the impact remains
to be fully felt, and the overall economic situation in Africa remains
critical. However, there is no doubt that improvement of the economic
situation requires that appropriate reform policies and programmes be
vigorously implemented and sustained, taking into account the need to improve
them continuously.
21. Most African Governments have instituted policy reforms aimed at economic
structural transformation and improvement of the overall management of their
economies, especially in the following areas: (a) public investment
management systems, institutions and practices; (b) public enterprises;
(c) reform of public services to make them more oriented towards achieving
national development goals; (d) lowering of budget deficits and reduction and
redirection of public expenditure; (e) mobilization of domestic saving and
increase in investment; (f) financial and debt management; (g) reduction and
reversal, where possible, of foreign exchange leakage; (h) encouragement of
the role of the productive private sector and market forces in the efficient
allocation of resources; and (i) promotion of foreign trade in general and
intra-African trade in particular.
22. Experience in the implementation of stabilization or structural
adjustment programmes currently instituted has revealed substantial concerns
to African Governments, bilateral donors, multilateral financial institutions
and non-governmental organizations, notably:
(a) African Governments need to play the central role in the design and
formulation of structural adjustment programmes, including the development of
"policy framework papers";
(b) Projections of financial flows, including export earnings, have
often been overly optimistic;
(c) The short-term adjustment or stabilization targets of structural
adjustment programmes should be integrated with long-term development
objectives;
(d) The importance attached to macro-economic indicators should not
obscure the need to pay adequate attention to institutional, social and
sectoral factors that are critical to the structural transformation of African
economies. Supply responses are only partly tied to relative price levels.
Market liberalization involves more than just the removal of controls.
Strategies of sequencing, timing and complex institutional restructuring are
critical to the success of market reform in Africa;
(e) To avoid straining the social, cultural and political framework and
to be credible and sustainable, structural adjustment programmes must be
designed so as to be sensitive to the internal conditions of the countries
concerned. In implementing expenditure reductions as part of adjustment
efforts, care should be taken to ensure that such reductions, especially those
in basic health, nutrition, education and other social services are not made
in areas where they would worsen the situation of the poorest and most
vulnerable groups;
(f) Realignment of exchange rates and rises in producers' prices have
not always generated the full expected benefits because of structural
rigidities that continue to characterize the current stage of development of
most African countries. In part this has occurred because African countries
have not had the human and financial resources fully to address these
rigidities.
23. In spite of all the measures taken, the overall performance of the
economies of African countries remains unsatisfactory. Domestic structural
problems and adverse exogenous developments, to which the African countries
are highly susceptible, have complicated the reform process by restraining
overall economic growth. In certain cases, weaknesses in the management and
co-ordination of external assistance at the level of recipient countries and
that of bilateral and multilateral assistance agencies, had led to delays in
the disbursement and utilization of external resources already available.
24. Domestic impediments include the effects of recurrent drought and other
natural calamities such as cyclones, floods and locust and grasshopper
infestation in some areas, infrastructural and institutional deficiencies,
marketing problems, low capacity for domestic resource mobilization, strong
dependency of export income on a limited number of commodities, excessive
dependence on imports of consumer goods and production inputs, human resources
and population factors, refugee flows, shortage of skilled labour and armed
conflicts. The external constraints include weak demand for African exports,
low commodity prices, inadequate and stagnating foreign real resource flows,
and a high debt and debt-servicing burden. Indeed, these constraints, coupled
with natural calamities, continue to be major obstacles to economic recovery
and development in the region.
25. In southern Africa, the situation continues to be adversely affected by
the policies of political and economic destabilization and acts of aggression
pursued by the South African regime against the front-line and neighbouring
States. The violence inherent in the system of apartheid has resulted in loss
of human lives, the destruction of social and economic infrastructures, the
diversion of substantial resources and efforts away from economic development
to defence spending, the disruption of economic development and an increase in
refugees and displaced persons throughout the region. The United Nations has
estimated that losses for the member countries of the Southern African
Development Co-ordination Conference for the period 1980-1986 amounted to 25
billion to 30 billion United States dollars. These factors have been the main
reasons for the sharp decline of economic growth and have consequently
undermined development efforts in the region, including the implementation of
the Programme of Action.
6. Implementation at the regional and subregional levels
26. At the regional and subregional levels, a number of concrete actions have
been taken to promote recovery and development, in particular, as related to
the formulation and implementation of joint programmes in the key economic
sectors and the strengthening of mechanisms for these efforts. The search for
agreements between neighbouring countries on food supplies aimed at ensuring a
better complementarity between surplus and deficit zones has progressed.
Other important actions have included the establishment of regional networks
for crop protection and of mechanisms for co-operation among national early
warning systems. In 1987 and 1988, a number of key intra-African conferences
were convened to review and promote the implementation of the Programme of
Action. The major constraints on subregional and regional co-operation have
been associated with infrastructural bottle-necks and scarce external
financial support to date.
B. Response of the international community
1. Response of other countries
(a) Resource flows
27. In support of the goals of the Programme of Action, the international
community has made commitments to provide an increased level of financial
assistance to African countries, both bilaterally and multilaterally. Net
resource flows to Africa increased from 17.9 billion dollars in 1985 to
19.9 billion dollars in 1986 and 22.9 billion dollars in 1987 in nominal
terms. However, measured in real terms, resource flows were lower in 1986 and
1987 than in 1985.
28. Official development assistance has been a steady and vital source of
funding for Africa, accounting for over 73 per cent of net resource flows to
the region. Total bilateral disbursements of development assistance to
African countries remained relatively constant in real terms in 1986 and
1987. Many donors made substantial increases in their bilateral assistance to
African countries. Official development assistance reported by the member
countries of the Development Assistance Committee of the Organisation for
Economic Co-operation and Development, the Organization of Petroleum Exporting
Countries and the multilateral institutions increased in current dollars. In
sub-Saharan Africa, it rose from 11.7 billion dollars in 1986 to 13.3 billion
dollars in 1987, but that reflects no increase when measured at 1986 prices
and exchange rates. According to the Organisation for Economic Co-operation
and Development, export credits to sub-Saharan Africa are estimated to have
fallen from 0.8 million dollars in 1985 to 0.4 million dollars in 1986 and to
0 in 1987. The limited data available suggest that other private commercial
flows remained unchanged. Member countries of the Council for Mutual Economic
Assistance continued their economic assistance to Africa.
29. The multilateral institutions, with the support of bilateral donors, are
playing an important role in international efforts to increase financial flows
to Africa. Disbursement from the International Development Association rose
from 0.9 billion dollars in fiscal year 1985 to 1.2 billion dollars in 1986
and 1.6 billion dollars in 1987. The World Bank initiated a Special Programme
of Assistance for the low-income heavily indebted African countries that
combines additional disbursement from the International Development
Association with additional co-financing by bilateral donors. It is estimated
that the programme will increase resource flows to sub-Saharan Africa by about
3 billion dollars over the period 1988-1990. In 1986 and 1987, there was a
substantial net transfer of resources from Africa to the International
Monetary Fund. In response to the economic situation in African countries,
the Fund undertook several initiatives. In particular, its members reached
agreement on an Enhanced Structural Adjustment Facility that will increase the
concessional resources available to low-income countries by 6 billion special
drawing rights over the period 1988-1990. The African Development Bank
reached agreement on a trebling of its authorized capital and on a 50-per-cent
increase in the African Development Fund. That has enabled it to increase
commitments from 2 billion dollars in 1984-1985 to 3.8 billion dollars in
1986-1987. Net disbursements by the International Fund for Agricultural
Development increased from 50 million dollars in 1983 to 85 million dollars in
1986. Those new multilateral flows, supported by bilateral donors, constitute
a major new commitment of resources to Africa in support of the continent's
efforts to achieve sustainable and growth-oriented development. Many parties,
in particular the African countries, have expressed dissatisfaction with the
methods by which conditionality for adjustment are developed. Efforts are
under way to increase the participation of all parties to resolve those
differences and such efforts should be reinforced.
30. The contribution of resources has been largely undermined by the growth
in debt-service obligations and the decrease in export earnings, resulting in
a marked deterioration of the external financial position of many African
countries. Various estimates have been made of Africa's external resource
requirements. The Advisory Group on Financial Flows to Africa, which,
contrary to its mandate, considered the needs of only sub-Saharan Africa
excluding Nigeria, estimated the requirements to be at least 5 billion dollars
per annum above their level in 1986-1987. Other estimates differ from that,
depending on the country coverage, assumptions and methodology used, but in
general suggest that assistance flows should be increased in support of the
Programme of Action. Increased flows should be forthcoming within the period
of the Programme of Action when disbursements from new multilateral
initiatives and bilateral commitments are fully implemented.
(b) Trade and commodities
31. In many parts of the developing world and in Africa in particular, the
recent growth of the global economy has not yet resulted in a gathering of
momentum in the development process. Most African countries have found it
difficult to increase their export earnings, although those earnings are a
critical factor in their economic recovery and development. Protectionism
remains a constraint to efforts by African countries to expand their trade.
Non-tariff measures against exports from African countries, some of which are
applied progressively to processed commodities, are an impediment to the
expansion of the region's exports. There remains scope for dismantling the
non-tariff barriers that impede access by African countries to the markets of
industrialized countries. The Uruguay round of multilateral trade
negotiations, agreed upon since the adoption of the Programme of Action, will
provide an opportunity to address some of the difficulties that Africa faces
in the area of international trade.
32. In spite of the recent improvement in some commodity prices, Africa's
financial problems have been aggravated by the continuing decline of many
commodity prices. Moreover, those prices continue to be at historically very
low levels. This has been induced by a complex array of market forces, often
beyond the control of African countries. A majority of these countries depend
on no more than three export commodities for the bulk of their foreign
exchange earnings, which serve as the principal source of external resources
for development. Africa's total commodity earnings fell by 18 billion dollars
in 1986 and in 1987 remained below their 1985 level. It was agreed in the
Programme of Action to deal urgently with commodity issues in the framework of
an overall approach taking into account the special interests of the African
countries. The matter was discussed at the seventh session of the United
Nations Conference on Trade and Development. Changing global conditions have
contributed to Africa's significant losses in foreign exchange from falling
export earnings; this problem can be addressed only through a long-term and
overall approach, including efforts to increase the capacity of African
countries to process, market, distribute and transport non-traditional
exports. Moreover, there has been an overall deterioration in the terms of
trade of sub-Saharan African countries. Over the short and medium terms, a
major sustained improvement in commodity prices is not expected. However,
aid, debt-relief and direct foreign investment can only supplement trade in
that respect.
33. Existing arrangements to provide compensatory financing for shortfalls in
commodity earnings, such as the Stabex and Sysmin arrangements of the European
Economic Community and the Compensatory Financing Facility of the
International Monetary Fund, have been important but insufficient in
themselves to deal with the magnitude and nature of the difficulties that
Africa faces in commodity export markets. The speedy activation of the Common
Fund for Commodities, in particular, its Second Account, may help to overcome
these difficulties. The new Compensatory and Contingency Financing Facility
of the International Monetary Fund will also be available to help to offset
fluctuations in export earnings for those countries that are able to meet the
conditions for its use.
(c) Debt
34. The external indebtedness of African countries has become one of the
important factors constraining recovery and development in the continent,
since debt servicing draws substantially on scarce financial resources that
otherwise could be used for development purposes in the region. Debt service
obligations were equivalent to 29 per cent of export earnings in 1985,
43 per cent in 1986 and 39 per cent in 1987. Debt service payments in these
years were equivalent to 29 per cent, 29 per cent and 25 per cent of export
earnings respectively.
35. The economic situation of many of the countries of the region and their
low levels of income make the debt burden particularly heavy. Most
outstanding debt is to official bilateral and multilateral agencies. These
agencies have responded with a number of initiatives to lighten the debt
burden, particularly of the low-income African countries. Efforts have also
been initiated to address the debt problems of African middle-income
countries. The economic recovery and development of Africa calls for
continued efforts in this area.
36. A number of bilateral donors have converted official development
assistance loans to some African countries into grants - a process that began
in 1978. Conversions to date affect only one sixth of Africa's official
development assistance debt but cover more than half of that of the least
developed countries of the region. Commitments have been made by a number of
donors to make further conversions, and proposals have been made to further
reduce the stock of debt. Progress has been made in providing lengthened
grace and maturity periods in rescheduling in the Paris Club. Rescheduling
does not reduce the stock of debt. Proposals are under discussion to provide
additional relief. African countries have expressed three concerns regarding
the process of rescheduling: the lack of a medium-term and long-term
perspective; rescheduling terms that are not adapted to debtors' capacity to
pay; and the excessive duration of the rescheduling process itself.
37. Africa's continuing search for solutions to the problems of its external
indebtedness prompted African Governments to hold an extraordinary summit
meeting at Addis Ababa from 30 November to 1 December 1987 devoted to Africa's
external debt. This meeting resulted in the adoption of Africa's common
position on external indebtedness. The economic summit meeting of the
seven largest industrialized countries, held at Toronto from 19 to
21 June 1988, addressed Africa's debt and development problems. The summit
achieved consensus on rescheduling official debt of the poorest developing
countries that are undertaking internationally approved adjustment programmes,
allowing official creditors to choose among several options. The likely
overall impact of these measures is difficult to quantify because it is not
clear yet what the total amount of relief would be. It is the shared
responsibility of all parties concerned to develop lasting and durable
solutions to the problems of Africa's external indebtedness.
(d) Quality and modalities of external assistance
38. Some progress has been made in improving the quality and modalities of
external assistance, notably by improving the quality of bilateral flows;
increasing the pace of disbursement; increasing the concessionality of
assistance; and strengthening the co-ordination of donor programmes, notably
through the expansion and improvement of consultative groups and United
Nations Development Programme round-table meetings and through the
introduction of "policy framework papers". Nevertheless, considerable scope
remains for future improvement, particularly in relation to quick
disbursement, wherever appropriate.
(e) Structural adjustment programmes
39. An important consideration relates to the developmental framework within
which external assistance is provided. The implementation of structural
adjustment programmes has given rise to general concerns, such as human,
social and political consequences, as well as long-term financing needs for
Africa's economic recovery and development efforts. These concerns have
resulted in a dialogue on the nature and content of adjustment programmes.
This has led to greater understanding and increased awareness of the need to
ensure that such programmes form an integral part of a longer-term strategy
for economic growth, incorporate a human dimension and do not have an adverse
impact on vulnerable groups and would take due account of the specific
economic situation and national development priorities of each country. This
is now being reflected in actions by African Governments and donor agencies.
40. The efforts of the African countries to achieve sustained growth and
development through structural reform are seriously constrained by the adverse
external environment as it relates to the situation in Africa, in particular,
with respect to export earnings, the debt service burden and concessional
finance.
2. Response of the United Nations system
41. The organizations of the United Nations system were invited to attach
high priority to Africa in their global operations, taking into account the
priorities of the Programme of Action. These organizations are now devoting
more than 35 per cent of their resources to Africa, with expenditures
amounting to more than 1 billion dollars annually.
42. The Secretary-General has taken important actions to sensitize the
international community to the serious economic situation in Africa, to ensure
a co-ordinated response by the United Nations system to the implementation of
the Programme of Action and to monitor and report on the implementation of the
Programme of Action. Although the contributions of the organizations of the
United Nations system were diversified and useful, they were, however,
insufficient. In view of the deterioration in Africa's financial situation
after the Programme of Action was adopted, the Secretary-General appointed a
high-level Advisory Group on Financial Flows to Africa; its report was issued
in February 1988. The Secretary-General also established a United Nations
Steering Committee with the participation of all relevant bodies of the United
Nations to co-ordinate and monitor their response to the Programme of Action.
In addition, an inter-agency task force, which acts as the operational arm of
the Steering Committee, has been established under the chairmanship of the
Executive Secretary of the Economic Commission for Africa.
3. South-South co-operation
43. Progress in co-operation between African countries and other developing
countries has been registered in a number of areas, such as trade, finance,
technology and technical assistance. Some countries have contributed through
bilateral assistance and programmes of technical co-operation among developing
countries. In the field of trade, the first round of negotiations of the
global system of trade preferences among developing countries was completed at
the ministerial meeting on the Global System of Trade Preferences among
Developing Countries of the Group of Seventy-seven held at Belgrade from 11 to
13 April 1988. The participants in the global system signed a contractual
document that seeks to facilitate their trade relations. The potential for
South-South co-operation is considerable, and every effort should be made by
the international community to support the expansion and intensification of
such co-operation.
4. Non-governmental organizations
44. Most non-governmental organizations, both African and non-African, are
contributing to Africa's economic recovery and development through effective
programmes at the grass-roots level. Significant resources are mobilized by
non-governmental organizations, from both the general public and official aid
institutions, for economic and social projects and programmes as well as for
humanitarian activities. These efforts support the goals of the Programme of
Action and deserve to be commended. One development has been the emergence
and growing presence of the community of indigenous African non-governmental
organizations as important actors in Africa's development effort. They are
engaging in closer dialogue with African Governments, official development
agencies and non-African non-governmental organizations in order further to
clarify and define their own role in Africa's recovery and development. They
are contributing their own experience to the implementation of development
policies, especially those oriented towards the poorest groups.
III. MEASURES FOR ACCELERATING THE IMPLEMENTATION OF THE
UNITED NATIONS PROGRAMME OF ACTION FOR AFRICAN
ECONOMIC RECOVERY AND DEVELOPMENT 1986-1990
A. Role of the African countries
1. Agricultural development
45. In the course of implementing the Programme of Action, African countries
should continue to concentrate their efforts on agriculture and its supporting
sectors, the rehabilitation and development of agro-industries, the fight
against drought, desertification and pests, and on the other sectoral
priorities identified in the Programme.
46. It is important that development programmes give due recognition to the
factors critical to increased agricultural production. These factors include
investment in appropriate technology, research and development and
agricultural inputs. African countries should intensify their efforts to
establish early warning systems and national food security arrangements,
diversify exports, improve export performance and maintain the incomes of
farmers at appropriate levels.
47. The traditional role of women as producers of a significant proportion of
food should be protected and strengthened when new agricultural production
methods are introduced. More attention must be given to ensure that women
have access to agricultural extension services, credit, land titles and, not
least, new technologies.
2. Other sectors in support of agriculture
48. Increased attention and financial resources should be directed to the
rehabilitation and maintenance of productive infrastructures in the sectors
that support agriculture, including transport and communications. Emphasis
should continue to be placed on the production of agricultural tools,
small-scale irrigation equipment, spare parts, fertilizers, pesticides and
other chemicals. Greater attention should be given to rehabilitating,
modernizing and expanding food-processing and other agro-based industries, by
mobilizing the resources needed as well as providing training and credit in
rural areas and promoting entrepreneurial development programmes.
3. Drought and desertification
49. The environment and natural resources should become important
considerations in development co-operation. Environmental activities must go
hand in hand with efforts to enhance economic growth and combat poverty, as
there is a clear link between economic well-being and the quality of the
environment. Better management of the natural resource base is a major factor
in moving towards sustainable development. Action should be intensified to
improve the economic situation and combat more effectively environmental
degradation arising, in particular, from drought, desertification,
deforestation, floods, locust and grasshopper infestation and the dumping of
toxic and industrial wastes.
4. Human resources
50. Since many internal constraints are linked to weaknesses in education,
training and management systems and since human resources play a key role in
the long-term development prospects of the continent, the effective
development and utilization of human resources of the region must be made a
major objective of national policy. In consequence, the African countries
should place greater emphasis on population policies and programmes, including
the Kilimanjaro Programme of Action.
51. The participation of people in the recovery and development process
should continue to be broadened and made more effective, particularly through
promoting increased access to development resources and benefits, creating
favourable conditions for decentralized decision-making, encouraging greater
entrepreneurship at all levels and promoting individual initiative and private
enterprise.
52. African countries and their development partners should give particular
importance to human resources development, especially by integrating the human
dimension in the design and implementation of structural adjustment
programmes. As stated in the Programme of Action, the role and contribution
of women in the development process are of crucial importance. However, women
often remain at the periphery of economic systems and decision-making
processes. There is thus an urgent need to strengthen the participation of
women in all areas of the economy and at all levels of development planning
and implementation. Moreover, African countries should allocate substantial
resources to make it possible for women to participate more fully as active
economic agents in development programmes, especially in rural areas.
5. Policy reforms
53. African countries should continue to pursue the balanced development of
all sectors of their economy. Particular attention should be given to
domestic economic management, the effective mobilization and utilization of
domestic resources, in particular through the encouragement of savings, and
action to contain or reverse capital flight with the support of the
international community and to provide an environment conducive to direct
investment. Special attention should be given to the rationalization of
public investment policies, the development and effective implementation of
appropriate human resources and population policies, industrial development,
the improvement of international competitiveness and the diversification of
production.
54. Structural adjustment programmes should be designed in such a way as to
mitigate their adverse socio-economic effects, ensure that the human dimension
is integrated in them, further improve the well-being of the poor and
disadvantaged in African societies, notably through redirecting social and
developmental expenditures, and make short-term stabilization and adjustment
measures compatible with and built into long-term structural transformation.
55. Bearing in mind that they have the central role to play in the design and
implementation of their adjustment programmes, African Governments, with the
support of their development partners, should give particular attention to the
following so that adjustment programmes are based on a realistic and pragmatic
approach of the problems of each country:
(a) In designing economic structural adjustment programmes, the
following should be taken into account:
(i) The need for adjustment programmes to be realistic and consistent
with projected financial resources and the external and internal
environment;
(ii) Harmonization of the programme with long-term objectives and
strategies, with particular, continued emphasis on self-sustaining
economic development and growth;
(iii) Provision of compensatory programmes to minimize the adverse effects
of redeployment of labour and the social costs of adjustment to the
poor;
(iv) Social infrastructure and human resource development, including
environmental, cultural and political concerns;
(v) A pragmatic approach to the respective roles of the public and
private sectors;
(b) Social indicators need to be developed to monitor the impact of
these programmes on the population;
(c) African countries should increase their efforts in the search for a
viable conceptual and practical framework for economic structural adjustment
programmes in keeping with the long-term development objectives and strategies
at the national, subregional and regional levels;
(d) It is essential that the process of reform be implemented as soon as
possible by those countries that have not yet done so and sustained and
supported by those that have already started it.
6. Trade
56. African countries need to make special efforts in order to make African
products more competitive in international markets, and to adopt appropriate
policies and reinforce mechanisms to expand and diversify their exports.
57. Decisions on diversification are primarily the responsibility of African
countries. These decisions should take into account the agricultural,
industrial and other development objectives. Horizontal and vertical
diversification of their economies, as well as increased participation in the
processing, marketing and distribution of their commodities are long-term
development objectives towards which African countries need to make further
efforts in the context of intensified international co-operation between
producers and consumers.
58. Adequate structures should be established or improved in order to promote
the transfer, adoption, adaptation and the application of appropriate
technologies, the development of communication infrastructure and the
improvement of marketing networks and thus form a solid base for reinforcing
the efficiency of exports.
59. African Governments should enhance their participation in all major
international trade negotiations, notably the Uruguay round of multilateral
trade negotiations, so as to better achieve a reduction in tariff and
non-tariff barriers that have a negative impact on their ability to export.
7. Economic co-operation and integration
60. For the effective implementation of the Programme of Action, African
countries should intensify their efforts towards economic co-operation and
integration in accordance with the objectives of the Lagos Plan of Action for
the Implementation of the Monrovia Strategy for the Economic Development of
Africa, adopted by the Assembly of Heads of State and Government of the
Organization of African Unity at its second extraordinary session, held at
Lagos on 28 and 29 April 1980. 10/ Among the measures that should be taken
are the following:
(a) Strengthening and rationalization of existing subregional groupings,
the creation, as appropriate, of new ones and their effective utilization for
co-ordinated planning and development at the subregional level;
(b) Implementation of measures for the co-ordination of economic and
social policies subregionally, as well as for joint planning and development
of multicountry projects in key economic sectors;
(c) Promotion of intra-African trade in primary and processed
commodities;
(d) Promotion of domestic policies that encourage the movement of goods,
skills and capital among the African countries.
8. Peace and stability
61. Every effort must be made to achieve political settlements of
international and regional conflicts so that scarce resources can be directed
towards economic recovery and development. In this context, African countries
should, with the support of the international community, intensify their
efforts to end the acts of aggression and destabilization of the apartheid
regime in South Africa, which is the single most destructive form of conflict
in the region.
B. Role of the international community
1. Role of other countries
(a) Resource flows
62. Financial flows to Africa, in particular concessional flows, should be
increased substantially, especially to sub-Saharan African countries, and
provided on a continuous, predictable, assured and fast-disbursing basis, as
appropriate. Such an increase in resources for Africa would be facilitated if
all developed countries allocated 0.7 per cent of their gross domestic product
to official development assistance.
63. Most resource flows to Africa will continue to be provided through
official bilateral assistance and by multilateral institutions, but flows of
private capital should also be encouraged. The following actions are
particularly relevant:
(a) Donor countries, particularly those whose assistance to Africa has
decreased in the past two years or is at a low level, should aim to increase
their official development assistance to Africa in real terms. These
resources should be provided on a sustained and fast-disbursing basis and
directed to the priorities of recovery and development;
(b) Bilateral co-financing funds pledged under the World Bank's Special
Programme of Assistance for low-income, debt-distressed countries should be
made available as soon as possible, and donors should expedite the
disbursement of the resources that they have agreed to provide for this
purpose;
(c) The agreed commitments to an increase in the capital of the World
Bank, to the fifth replenishment of the African Development Fund and to the
eighth replenishment of the International Development Association should be
fulfilled without delay. In addition, negotiations on the third replenishment
of the International Fund for Agricultural Development should be concluded
promptly, and those on a ninth replenishment of the International Development
Association should be undertaken as soon as possible;
(d) Efforts should be continued to improve the quality of bilateral
flows, particularly through more rapid disbursement of assistance already
pledged and increased concessionality, meeting the recurrent local costs of
programmes and projects, using local equipment, indigenous competence and
expertise and improving procedures, guidelines and formats for the procurement
of equipment;
(e) The co-ordination of donor programmes, undertaken in close
co-operation with the recipient countries, should be improved further. The
important role of the consultative groups and round-table meetings in this
regard should be enhanced.
(b) Trade and commodities
64. An increase in Africa's export earnings and a reduction in the adverse
impact on African economies of year-to-year fluctuations in those earnings
would both contribute to the attainment of sustained non-inflationary growth
and assist African countries in their efforts to implement the Programme of
Action. These improvements in export earnings would be facilitated by an
international environment more favourable to African exports and by continued
efforts to diversify exports.
65. Particular attention should be given to the following:
(a) The mid-term review of the Uruguay round of multilateral trade
negotiations scheduled for December 1988 should give a new impulse to the
negotiations in the General Agreement on Tariffs and Trade, in which the
concerns of African countries should be given particular attention. All
countries involved in the Uruguay round should endeavour to improve the
international trading environment, particularly as it concerns African
exports. This applies especially to measures affecting processed and
non-traditional exports because these offer the greatest hope for Africa to
increase and diversify its export base in the longer run. There is need for
greater liberalization of trade in agricultural products, and special
attention should be given to the provisions of existing regimes concerning
trade in tropical products of interest to African countries. In this
connection, the Uruguay round should be used to develop improved discipline
and rules, addressing the problems of market access, subsidies that directly
or indirectly affect trade and the harmonization of health and sanitary
standards;
(b) Ongoing initiatives to make the Common Fund for Commodities fully
operational should be completed in the shortest possible time, bearing in mind
that a number of developmental programmes have already been approved or
considered by producers and consumers, for possible financing under its Second
Account;
(c) Programmes for the stabilization of export earnings of African
countries, along the lines of the Stabex and Sysmin, should be considered by
other countries;
(d) The Compensatory and Contingency Financing Facility of the
International Monetary Fund should have an enhanced role in responding to
Africa's short-term external contingency needs;
(e) Within the context of the Programme of Action, the Secretary-General
of the United Nations should consult with the United Nations Conference on
Trade and Development, other relevant organizations and interested Governments
with a view to establishing a group of experts to undertake an in-depth
assessment of the question of African commodities and the scope for export
diversification.
(c) External debt
66. Many countries have taken measures to reduce the burden of Africa's
external debt, and such action should be continued, in order to limit the
burden that debt imposes on recovery, reform and development of the African
countries. Debt rescheduling should be supplemented by other multilateral and
bilateral measures. Every effort should be made by the international
community to find lasting, durable and growth-oriented solutions that cover
various categories of debt, various creditors and various debtor countries and
that respond to Africa's development needs. Recognizing the major
contribution that progress in this area would make to the success of the
Programme of Action, ongoing initiatives, including those agreed upon at the
economic summit meeting held at Toronto from 19 to 21 June 1988, 8/ should be
pursued urgently, with the following being taken into account:
(a) Official bilateral debt
(i) Non-concessional officially guaranteed debt and debt-service
payments of low-income African countries should be rescheduled on
more generous terms;
(ii) Creditor countries' efforts to write off or otherwise remove the
burden of official development assistance loans, inter alia, by
repayment in local currencies, of low-income countries pursuing
structural adjustment programmes, should be continued;
(iii) In addition, donor countries should increase the grant element in
their future assistance to poorer African countries.
(b) Multilateral debt
(i) Every effort should be made to ensure the speedy and full
implementation of the initiatives of international financial
institutions, especially the Enhanced Structural Adjustment Facility
of the International Monetary Fund, in order to ensure that
necessary concessional resource flows are available to low-income
countries in Africa that are undertaking structural adjustment;
(ii) The proposal to establish a mechanism, financed by voluntary
contributions, to alleviate, on a concessional basis, the
outstanding World Bank debt of low-income countries that are
pursuing reform measures should also be considered urgently.
(c) Commercial loans and credits
Various new methods of reducing the commercial debt of developing
countries have been developed. The application of these methods to ease the
commercial debt of African countries should be promoted.
67. The common position of Africa on addressing the problem of the continent
on external debt adopted by the Assembly of Heads of State and Government of
the Organization of African Unity at its third extraordinary session, held at
Addis Ababa on 30 November and 1 December 1987, should be taken account of
and seriously considered by the international community.
(d) Supporting reform within a broad development framework
68. African countries have the responsibility for formulating and
implementing the economic reforms that form part of the process of recovery
and longer-term development. In supporting these reforms, Africa's
international partners should keep in mind this imperative for longer-term
economic and social development. In this context, the human dimension should
be a central concern. Intensified efforts should be made by all parties to
develop and use appropriate indicators to measure and monitor closely the
improvement of conditions of human well-being as reforms proceed. Instruments
should also be developed to provide early warning of deteriorating human
conditions.
2. Economic co-operation and integration
69. Special efforts should be made by the international community to support
ongoing efforts of African countries to strengthen co-operation and the rapid
achievement of economic integration in the region. International assistance
to national projects should be complemented by greater support for regional
and subregional projects, particularly in the priority sectors.
3. Impact of destabilization policies of South Africa
70. Recovery and development efforts in the countries of the southern African
subregion continue to be frustrated by acts of aggression and destabilization
by the South African regime. The international community as a whole should
exert greater pressure on the apartheid regime to abolish its abhorrent
policies and immediately stop its acts of destabilization and aggression in
the region. In the absence of an end to these acts of destabilization,
increased assistance should be given to the member countries of the Southern
African Development Co-ordination Conference in order to compensate for the
costs of destabilization, to allow these countries to implement their recovery
and development programmes effectively and to strengthen co-operation among
them so that they can reduce their dependence on South Africa. Furthermore,
provisions of relief assistance should be expanded to include the
rehabilitation of populations affected by emergency situations in order to
restore, inter alia, their productive capacities. In particular,
contributions to the Action for Resisting Invasion, Colonialism and Apartheid
Fund and United Nations funds and other means to support the victims of
apartheid and the front-line States should be continued and be increased,
where possible.
4. Human resources
71. Responsibility for the development, planning and utilization of their
human resources falls first and foremost on the African countries. The
international community should support their efforts by providing the
necessary financial and technical assistance to promote their human resources
development.
5. South-South co-operation
72. South-South co-operation in supporting the implementation of the
Programme of Action should be enhanced. Action already initiated in the
agricultural sector should be intensified, and additional projects should be
identified to assist African countries, either individually or collectively,
in improving the production of staple food items. Particular emphasis should
be placed on technological co-operation, especially in agro-related and
consumer-goods industries, to enable Africa to benefit from the expertise and
experience of other, more advanced developing countries. The same obtains for
the exchange of experience and skills in the development of human resources.
To achieve these objectives, individual countries and subregional and regional
groupings in Africa and other developing regions should agree on specific
plans of action, with time-bound and sectoral targets.
6. Support by the United Nations system
73. Co-operation and co-ordination among the various organizations of the
United Nations system in the implementation and monitoring of the Programme of
Action should be further strengthened. In order to ensure the capacity of the
Secretary-General to carry out his responsibilities with regard to the
Programme of Action, the secretariats of the United Nations Steering Committee
and of the Inter-Agency Task Force should be given appropriate support for the
duration of the Programme. Adequate funding, both budgetary and
extrabudgetary, should be provided for this purpose.
74. At the national level, further efforts to improve co-ordination within
the United Nations system should be taken in the context of the
country-programming framework of the United Nations and the role of the
resident co-ordinator. In the programmes of the United Nations system,
particular emphasis should be placed on the priority sectors for the recovery
and development of Africa.
75. In view of the important role of non-governmental organizations in
mobilizing and making the public more aware as regards development, the United
Nations system should increase its co-operation with non-governmental
organizations for the implementation of the Programme of Action.