2010 MUTUAL REVIEW OF DEVELOPMENT EFFECTIVENESS IN AFRICA ABDALLA HAMDOK 2 nd Meeting of The Committee on Governance and Popular Participation 9-10 March 2011

1.Introduction 2.Background and Mandate 3.Production of reports 4.Management and Production Process 5.Topics Covered in 2010 Report 6.Key questions 7.Main commitments 8.Results 9.Key priorities 10.Sustainability Contents 3

1. Introduction Joint review by UN Economic Commission for Africa and OECD. 3 main purposes : o Mutual accountability – assessing the delivery of commitments. o Development effectiveness – assessing the results achieved. o Forward look at policy priorities. Key features: o Comprehensive policy coverage. o Genuinely collaborative process. Target audience: o Political leaders and policy makers –Africa and internationally. o Wider development community MRDE Report 4

November 2002: o NEPAD Heads of State and Government Implementation Committee (HSGIC). o ECA and OECD to develop institutional framework for a MRDE process in the context of NEPAD. 23 rd Summit of NEPAD Heads of State and Government Orientation Committee (NEPAD HSGOC), July 2010, Kampala, Uganda: o ECA and OECD to continue with the Mutual Review process. o MRDE process should serve as the main mutual accountability mechanism for monitoring and assessing the delivery on commitments made by both African countries and their development partners relative to the African economic development agenda. 2. Background and Mandate MRDE Report

3. Production of Reports October 2005 : First MRDE Report. January 2009 : Second MRDE Report. September 2010: Third MRDE Report. o 23 rd Summit of NEPAD HSGOC, July 2010, Kampala: ES-ECA presented main lines of the Executive Summary of the 2010 MRDE report. o Side Event, UN MDG Review Summit, September 2010, New York: ES-ECA and the SG-OECD Report launched report. o Africa Partnership Forum, October 2010, Malawi: Report discussed MRDE Report

4. Management and Production Process 2010 Report Technical content Joint task teams Framework Joint ECA/OECD management team Consultation African & int’l organizations civil society MRDE Report

5. Topics Covered in 2010 Report I. S USTAINABLE ECONOMIC GROWTH  Trade and diversification; Agriculture; Infrastructure; Private sector; Environment Sustainability; and Climate change. II. I NVESTING IN PEOPLE  Education; Health; and Promoting gender equality and women’s empowerment. III. G OOD GOVERNANCE  Political governance; Economic governance; Peace and security; and Global governance and institutions. IV. F INANCING FOR DEVELOPMENT  Domestic public resources; FDI and other private financial flows; Development assistance; External debt; and Climate finance. V. C ROSS - CUTTING ISSUES  Capacity development; Regional integration; and Policy coherence MRDE Report

6. Key Questions What are the main commitments which have been made by Africa and its development partners? Have these been delivered? What have the results been? What are now the key future policy priorities? 2010 MRDE Report 9

7. What are the main commitments? Focus on commitments made by political leaders collectively as distinct from national governments individually. For example: o Commitments by African governments on governance. o Commitments by development partners on resources. Approach has been to look at overall performance, recognising that there is large degree of variation between individual countries. Africa-wide review, though where relevant, differentiating between North and Sub-Saharan Africa (e.g. sources of development finance, and progress towards MDGs). Some of the results achieved… 2010 MRDE Report 10

8. Results: Sustainable Economic Growth 2010 MRDE Report 11  Strong economic growth in Africa since 2000 tempered by financial and economic crises staring in 2007

8. Results: Sustainable Economic Growth 2010 MRDE Report 12  Poverty rates have fallen since 2000 Percentage of population living on less than US$1.25/day Sub-Saharan Africa North Africa

8. Results: Sustainable Economic Growth 2010 MRDE Report 13  Costs of infrastructure services in Africa are high relative to other developing regions

8. Results: Investing in People 2010 MRDE Report 14  Primary school enrolment is approaching gender parity  … but still lags other developing regions

8. Results: Investing in People 2010 MRDE Report15  Little progress has been made in saving mothers’ lives

8. Results: Investing in People 2010 MRDE Report 16  Expenditure on health in Africa is low relative to other regions

8. Results: Good Governance 2010 MRDE Report 17  There has been marginal progress in governance since 2005

8. Results: Good Governance 2010 MRDE Report 18  The number of state-based conflicts has fallen dramatically since the 1999

8. Results: Financing for Development 2010 MRDE Report 19  Development finance in Africa fell in 2009 as a result of the financial and economic crises

8. Results: Financing for Development 2010 MRDE Report 20  Africa’s share of net ODA fell from over 40% in 1990 to below 35% in 2008

9. What are the key future policy priorities? For African governments: To continue with the agenda for political and economic reform set out in NEPAD’s founding statement, in particular in political governance and in improving the environment in which the private sector operates; To intensify efforts to promote regional economic integration, and collective regional action on key political issues; and To increase domestic revenue mobilization, and to ensure that this is directed effectively towards meeting the MDGs MRDE Report 21

9. What are the key future policy priorities? For development partners: To continue efforts to tackle issues such as tax havens, transfer pricing, and illicit capital flows which continue to result in a major loss of the resources available to Africa for development; To take action to open markets further, and in particular to inject political will and momentum in order to reach an early, ambitious and balanced outcome to the WTO Doha Development Round; and To deliver their existing commitments to increase the volume and improve the effectiveness of development assistance. In particular, Africa’s partners should commit to increasing Africa’s share of global ODA to 40% by 2015, corresponding to Africa’s projected share of the world’s poor MRDE Report 22

9. What are the key future policy priorities? For the international community: To agree on ambitious and binding targets for the reduction of emissions, in accordance with the principles of common but differentiated responsibilities in Cancun in December 2010; To agree on ways to increase the volume and improve the effectiveness of climate change finance to Africa at the next UNFCCC in December 2010; and To respond positively to Africa’s claim for stronger representation in discussions on wider systemic issues, and in international institutions MRDE Report 23

10. Sustainability NEPAD HSGOC mandate – July 2010 (Slide 5). Also: Success of 2009 & 2010 reports Extensive consultations Request by stakeholders to produce reports annually from MRDE Report

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