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TRADE: Much more
needs to be done to eliminate trade barriers that continue to impede African
exports. These obstacles include agricultural subsidies in developed countries
that tend to flood world markets with surplus food supplies and hinder
the export of African farm produce, along with other tariff and non-tariff
barriers. NEPAD's implementation, Annan says, would benefit from "a renewed
and strengthened commitment by the developed nations to eliminating the
various constraints on the export of Africa's processed, semi-processed
and agricultural goods." In addition, more international support is needed
to help remove Africa's "supply-side constraints," that is, support its
efforts to produce and export a more diversified range of goods.
AID: Recent pledges of more aid by donor countries, especially
at the March 2002 UN-sponsored International Conference on Financing for
Development in Monterrey, Mexico, will help reverse the recent trend toward
declining aid. But set against the magnitude of the tasks facing Africa,
those measures may be insufficient. To meet the challenge, he estimates,
"aid to Africa would need to be at least doubled." (In 2000, aid to Africa
amounted to $15.7 bn, with $12.7 bn going to sub-Saharan Africa.) This
aid would help Africa boost its investments in education, health and infrastructure,
in turn stimulating productivity and economic growth, which are essential
for poverty reduction.
DEBT: "Faster, deeper and broader" debt relief is required under
the Heavily Indebted Poor Countries initiative (HIPC) currently being
implemented by the World Bank and the International Monetary Fund. The
financial resources committed to the initiative should be increased, and
HIPC's debt sustainability analysis should be based on "more realistic
projections" of the country's future export earnings.
CAPACITY-BUILDING: For a long time, Annan notes, "technical assistance"
- the use of foreign consultants paid out of aid allocations - has accounted
for a significant share of bilateral aid to Africa. It would be better
to redirect such resources toward human and institutional capacity-building
in Africa, he suggests.
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