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Contributions from
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Tribune
How not to bridge the digital divide
African profile for German development policy defines its course
Why user fees can make sense
Global governance and biodiversity
06/2006
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[ Africa ]
Shared responsibility
German development policy for sub-Saharan Africa is changing. Well-focussed cooperation will serve to enhance local “ownership” and implement crucial steps towards donor harmonisation (Paris Agenda).
[ By Andreas Foerster and Ralf Schröder ]
Governments responsible for implementing the Millennium Development Goals in sub-Saharan Africa by 2015 face great challenges – and so do donors. After all, in the past years, development in sub-Saharan Africa has been characterised by
– increasing indicators of poverty,
– a dependence on donor transfers (which make up more than 50 % of national budgets in some cases) and
– poor governance.
In the past few years, African countries have been stepping up reforms. At the regional level, for instance, the New Partnership for African Development (NEPAD) has been strongly involved and the African Union (AU) was recently re-founded with a more stringent mandate. At the national level, countries are designing their own strategies to combat poverty. Such trends provide opportunities for “eye-level partnerships” in development cooperation.
Last year, the Paris Declaration on Aid Effectiveness was passed. But even before, it had been clear that donors needed to reconsider their activities and reform their cooperation with sub-Saharan Africa. Their focus must be on an international division of labour, taking into account each donor’s comparative advantages and specific experiences, in order to offer target countries clearly structured, inter-related programmes and boost their development. In Africa, donors must support national and regional political processes that promise to enhance responsible ownership, structural improvements and sustainability.
The members of the European Union and the G8 agree on these principles. In 2007, Germany will take the presidency of both bodies. That will present an opportunity for the Federal Government to leave its mark on the respective Africa policies. For that to happen, however, Germany needs a clearly focussed policy of its own.
As early as 2004, Germany’s Ministry for Economic Cooperation and Development (BMZ) resolved to redefine its stand on Africa. The position paper of that year stressed the importance of long-term poverty reduction through reforms of governance and internationally coordinated efforts. BMZ chose the following strategic components, in order to act as efficiently and visibly as possible:
– good governance, sustainable economic development and water were considered focal points of German engagement,
– regional cooperation was to be intensified and focussed on crucial areas, and
– Germany would contribute more to budget support and other programme-based approaches in cooperation with other donors.
This outline emphasises the fortes of German development agencies. The idea was neither to shift the focus, nor to downplay the relevance of other sectors (such as health or education). Rather, the BMZ has identified those fields of activity where German agencies are particularly competent. Basically, the BMZ is applying its global sector concepts to a specific continent. After all, development challenges differ substantially form one region to another.
The new profile helps to spell out German competencies and goals to our partners and other donors. Since 2000, the BMZ accordingly has focussed its cooperation on well-defined topical areas. This was done in close consultation with our African partners. Today, roughly half of German engagement in sub-Saharan Africa is in the fields of governance, sustainable economic growth and the water sector. These matters are of high interest in the region, and German agencies have much to offer. NEPAD and AU have acknowledged the relevance of such cooperation. As each topic is, in itself, highly complex, BMZ has spelled out some spefications.
Good governance: “African ownership” has produced numerous national processes towards democracy, including NEPAD and the AU. Appropriate bodies and rules must be established to further enhance these beginnings. Germany’s development budget will contribute annual funds of ¤ 150 million in support of
– national reform processes, especially concerning public finances and key state institutions, and
– programmes for the devolution of political, administrative and financial powers to sub-national authorities.
Sustainable economic growth: At present, Africa’s economy is growing by around five percent per annum because of the rise in commodity prices. For such growth to result in poverty reduction, however, the economy will need a broader base. Germany is supporting such pro-poor growth with some ¤ 200 million per year for
– improving the overall investment climate,
– enhancing financial sectors on the continent, and
– promoting rural development, because agriculture is by far the most important sector of African economies.
Water: Currently, more than 300 million Africans – more than 40 % of the population – do not have access to clean water. More than 60% do not have adequate sanitary facilities. Germany will promote targeted efforts with annual funds of ¤ 40 million for
– providing water and basic sanitary facilities in cities, and
– better management of scarce resources.
Supra-national policy-making
In Africa as elsewhere, cross-border policy-making is becoming ever more important. Increasingly, core governance issues are being tackled at the supra-national level (AU, NEPAD, regional organisations). German development policy supports such reform processes, with a commitment to peace and security. After all, progress in these fields also helps to improve business environments.
So far, German expenditure on international policy-making in sub-Saharan Africa has grown to an annual ¤ 70 million. Such regional engagement meaningfully complements efforts at the national level. Germany’s most important partners in this field are key African institutions such as the AU and NEPAD as well as regional organisations (SADC, IGAD, EAC and ECOWAS).
Internationally, programme-based funding (PGF) is deemed promising. It is about several donors concertedly supporting national budgets, the budgets of line ministries or specific sector programmes. Doing so has several advantages. The volume of funds to fight poverty rises considerably, whereas transaction costs decrease for the recipient countries. Moreover, coordinated donors’ policy increases incentives to improve governance. Budget support and other programme-based approaches create transparent areas of shared responsibility. In that sense, they also serve local ownership and eye-level partnerships.
Among other things, PGF also improves the chances of bilateral efforts succeeding at the sector level. German experts are in touch with all partners, their advice can ensure competent implementation. This is no specifically German exercise. Rather, all donors are focussing on supporting the strategies devised by target country governments and implemented by their administrations. In that sense, developing capacities gains centre stage in international cooperation. Of course, political dialogue with partner governments also takes on a new quality, as discussion now goes beyond the immediate context of projects to include principal issues of governance.
German PGF pledges have risen from six percent of bilateral pledges for sub-Saharan Africa in 2002 to the current level of 30 %. Having a clear profile in our bilateral commitments ensures our competence in participation in PGF by allowing us to better explain our strengths and concepts to partners, be they in the target countries or in the donor community. Increasingly, Germany is able to assume a leading role in specific sectors. The prospects are good now of influencing pan-African and international fora.
Enhancing a clear BMZ profile also helps to improve coordination with other donors in adaptation of strategies and priorities defined by the partner countries. This profile is therefore an important step towards implementing the Paris Declaration and preparing for Germany’s presidency of EU and G8 next year. Specific proposals are being prepared and will be presented in a later article.
Dr. Andreas Foerster
works at Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) in the Department of Regional Development Policy/Southern Africa.
andreas.foerster@bmz.bund.de
Dr. Ralf Schröder
heads the BMZ Department of Regional
Development Policy/Southern Africa.
ralf.schroeder@bmz.bund.de
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