Africa's growth to rely on policy development

The last ten years saw significant economic progress in Sub-Saharan Africa. But sustaining it, according to the World Bank’s World Development Report 2007, demands improvement of policies. By reshaping and improving their policies – particularly those that deal with the environment – African states can well find their way towards macroeconomic stability and greater market efficiency. “Doing so will require greater openness to trade as well as the formation of strong market institutions. Removing behind-the-boarder constraints and establishing a pro-competitive domestic business environment would enhance international competitiveness and strengthen domestic capacity to respond to the changing demands of the global economy,” said the report.

The document paints a more optimistic future for Africa, especially since foreign aid is now streamlined in accordance with the March 2005 Paris Declaration, which has sought to ensure the efficiency of aid by creating better coordination among donors, harmonizing their aid requirements to lop off extraneous transaction costs, and matching donors’ aid with a country’s actual development needs. “Africa has shown that it can sustain shared economic growth. In supporting African governments and people, World Bank continues to play pivotal role in advocating the need to increase aid flows to Africa and for African goods to have better accesses to world markets,” the report stated.

Source: Africa: Economic Growth Hits Snag (The Monitor)

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