Not Just Aid: How Making Government Work Can Transform Africa reaffirms the argument made by the Commission that development is “not about aid alone and has to be about partnership and governance”.

In the essay, presented in a keynote speech at the Center for Global Development in Washington on 16 December, Mr Blair says he believes that Africa “has the potential to be to the first half of this century what Asia was to the second half of the last: an engine of prosperity capable of lifting millions out of poverty”. He argues that government’s capacity to deliver a vision for change will be a decisive factor in fulfilling that potential and concludes that donors could be doing much more to support improvements in that capacity by:

• aligning more of their support behind leaders’ own priorities;
• ensuring their support has the right scope – not to specific, not too broad;
• helping leaders develop the capacity of their own offices to develop policy and deliver leadership – and not undermining ministers capacity by demanding too much of their time;
• thinking politically not just technically.

Both the Commission’s 2005 and 2010 reports argued that building African governments’ capacity is essential to growth and development and made a series of recommendations on how donors could support capacity building more effectively. The latest report recommends that African governments draw up “comprehensive capacity-building strategies” and that donors align their support fully behind these and do not pursue competing priorities or procedures.

You can watch the speech and download the essay here.

The event brought companies together with government and NGOs to discuss what made for successful partnerships between the three sectors – and coincided with the launch of Business Action for Africa’s report on the same theme.

Deputy Director of the Shell Foundation Clare Woodcraft’s opening remarks focused on the lessons they had learned from scaling up projects, summarised in a report being launched that day. The clear lesson is that projects need to be designed to accommodate expansion from the outset.

From the government side, Mavis Owusu-Gyamfi, who is Head of Profession for Private Sector Development at the UK’s Department for International Development (DFID), spoke of DFID’s work to improve its communication with and support to the private sector. William Asiko, President of the Coca-Cola Africa Foundation and Chair of Business Action for Africa, gave the private sector perspective on partnerships. Dame Barbara Stocking, Chief Executive of Oxfam GB, described some of the work her organisation had done with private companies – including in helping smallholder farmers in Azerbaijan become suppliers for Unilever. Finally, Natalie Africa, Executive Director of the Business Call to Action partnership, gave an overview of their work to bring private companies together with donors and multilateral agencies to promote development.

A key theme emerging from all the presentations was the need to understand each others’ perspectives and the different skills that each partner brings to the project.

YBI’s report, entitled Youth Entrepreneurship: Beyond Collateral, calls for “a fundamental shift in the way that the value of non-financial support is recognised” to enable young entrepreneurs “to reach their potential in social change, job creation and economic renewal”. Business Fights Poverty hosted the online debate, which saw contributions from other high-profile commentators – including Justina Charles, Minister Of Culture, Youth & Sports for the Commonwealth of Dominica; former World Bank Executive Director, Per Kurowski; Jane Nelson, director of Corporate Social Responsibility at the Harvard Kennedy School and star of Dragons’ Den Peter Jones – as well as members of the Business Fights Poverty network.

Both the 2005 and the 2010 Commission for Africa reports put considerable emphasis on the need to promote the conditions where private enterprises of all sizes could thrive – as well as the importance of supporting small businesses, particularly those run by young people. African governments have done a lot in recent years to make it easier to do business in their countries. The 2010 report calls upon them to continue these efforts and to do more to support small enterprises and promote youth employment.

Myles’ comments focused on the wider societal and economic benefits of promoting youth entrepreneurship and employment:

“There are now more people living in the world than the cumulative total of all the people who have ever lived in the world before us. People are generallly living longer; and whilst there is still a long way to go before we can claim success against the fourth Millennium Development Goal of reducing by two-thirds the under-five mortality rate by 2015, many more children are living beyond their fifth birthday and into adulthood.

There are many implications to these developments, not least in the way that financial and other services are provided. At one end of the spectrum, it seems bizarre that people find it increasingly difficult to get insurance cover as they get older – even those who continue to lead active lives and have never made a claim. At the other, it will be crucial to look at the full spectrum of instruments to ensure that young people are able to lead healthy and productive lives. This includes the provision of post-primary and vocational training, but also finding ways of enabling and releasing the entrepreneurial instincts of the younger generation.

The downside of not doing this is clear – increasing numbers of young people with no jobs and no channel for their aspirations is a recipe for instability and conflict. The upside is equally clear, not least for the older generation who will come to depend increasingly on their children and their children’s children to support them into old age. That means, put bluntly, a younger generation which has jobs. It is important, therefore, to continue to find ways of providing collateral and guarantees for youth lending; but increasingly important as well to look at ways in which non-financial services can help in meeting these important objectives.

I very much welcome this Report from the Prince’s Youth Business International, which signals the start of the debate rather than the end of it. It could not be more timely, and I hope that the discussion which it generates will lead to a clearer recognition of the importance of access to non-financial (as well as financial) services in ensuring that young people can fulfil their potential.”

The eight MDGs, and targets to measure them, were agreed in 2000. They include goals and targets for halving world poverty, tackling hunger, universal enrolment in education, child health, maternal mortality, the environment and tackling HIV/AIDS. The eighth goal covers the global partnership required to achieve the goals. The target date for achieving the MDGs is 2015.

As discussed in the Commission for Africa’s latest report, Still Our Common Interest, there has been rapid progress in some African countries against some of the goals and targets. However, overall, the continent is not on track to meet them by 2015.

Leaders made considerable progress in agreeing a way forward at the Summit. In addition to the agreement of a global action plan, donors pledged $40 billion in support of the Secretary General’s Global Strategy for Women’s and Children’s Health in recognition of the fact that this is the goal on which there has been least progress globally.

The Commission for Africa held the New York launch of its new report at the start of the Summit.

The launch was hosted at the Rockefeller Foundation at the beginning of the week-long Summit which will consider progress against the MDGs, which were set in 2000 as targets for the world’s efforts to tackle global poverty – and are due to be achieved by 2015.

Commissioners President Benjamin Mkapa, Prime Minister Meles Zenawi and Bob Geldof were joined by UN Deputy Secretary General Asha-Rose Migiro and UK International Development Secretary Andrew Mitchell MP in welcoming the report.

Rockefeller Foundation President Judith Rodin opened the event and underlined the Foundation’s own commitment to supporting growth and development in Africa.

President Mkapa, who co-chairs the Investment Climate Facility for Africa (ICF), lauded the progress made by Africa in breaking down the barriers to doing business on the continent and thanked donors, such as the UK and Germany, for the support they had given to the ICF.

Prime Minister Meles welcomed the report’s recognition of the progress made in Africa over the past five years, but called on both Africa and the international community to redouble efforts to push forward growth and promote development.

Prime Minister Meles also welcomed the UK Government’s continued support for international development despite cuts elsewhere in its budget, and Andrew Mitchell reinforced his government’s ongoing commitment to the MDGs and called upon the international community to continue to focus on them.

Deputy Secretary General Asha-Rose Migiro reinforced those sentiments, welcoming the report’s input into the discussions that were to take place over the coming week.

Bob Geldof closed proceedings, saying that the MDGs were a “gift that the world had given to itself” ten years ago and calling on the international community to put all its efforts into ending the “economic illiteracy” that is poverty.

Tony Blair, who set up and chairs the Commission for Africa, today issued the following message to coincide with the New York launch of the Commission for Africa’s follow up report, Still Our Common Interest.

‘I am not big on anniversaries, as I sadly suspect my wife would confirm. By temperament I am always more likely to look forward rather than back. But the five years which have passed since the Commission for Africa published its first authoritative report – and the new report being launched today – does gives us an opportunity to look at what has changed on the continent and, more importantly, where we need to focus efforts over the coming years.

The most striking story out of Africa over the last five years – and one often overlooked – has been its remarkable economic growth. Even the global financial crisis, from which the developed world is still struggling to recover, slowed down rather than reversed the continent’s strong performance.

Between 2003 and 2008, Africa’s economy grew on average by six per cent. These figures, of course, hide wide variations and there are still some shocking examples of countries ravaged by conflict and abuse of power. But, overwhelmingly, the trend in individual countries was upwards. As the shock waves of the financial crisis reached Africa, growth slowed and unemployment rose strongly. But even in 2009, sub-Saharan Africa’s economies grew by 2.1% and the World Bank is predicting a strong recovery this year.

There is no doubt, of course, that a major factor in this sustained growth has been increasing demand for Africa’s rich natural resources. This has been led by China, India and other fast developing nations. Where once investors may have seen only problems, they now see commercial opportunities. Africa can claim, over the last five years, to have become the new economic frontier.

But extractive industry is not the whole answer. Growth has been seen across a wide range of sectors. Increased external investment in infrastructure – again frequently led by Africa’s new partners – has helped. The principal driving force has, however, been from within the continent itself.

It has been African governments’ own commitment to sound economic management, encouraging investment and supporting enterprise which deserves most credit. Across the continent, governments have worked hard to create a stable economic environment which attracts investment from both within and outside its borders and where businesses can flourish. There is more to do. But I feel confident that the change is significant and lasting: witness Rwanda’s achievements, recognised by the World Bank last year as the country which had done most to reform its business environment on the planet.

This is not to dismiss the role that the major increases in international aid have played in Africa’s progress over the last five years. I am proud that the commitments made at the Gleneagles G8 summit in 2005 have resulted in real improvements in the lives of millions of people on the continent through, for example, better health care or educational opportunities. Not everything promised has been delivered but in the hurry to demand commitments are met, we should not forget the impact of promises kept in communities across the continent.

But what the last five years has underlined is that the key message of that first Commission report holds true today: the continent will prosper best when African governments take the lead and the rest of the world supports them in their efforts. Indeed what has become even clearer since 2005 is that it is improved standards of governance rather than simply increased levels of aid which makes the most difference to the most lives.

For without good, accountable and honest government, aid is too often wasted, investment is discouraged and ambitions, however strongly held, are unmet. It is improved government which has driven economic growth. It is sound government, above all, which is needed to turn this increased national wealth into real improvements in the lives of its citizens.

Developed countries, of course, still have a role but it is to help provide the resources so African governments can invest in their citizen’s priorities.  As our new report underlines, aid which undermines national governments will fail in the long-term to promote development. Aid which strengthens their ability to deliver will succeed.

But to ensure improvements come quickly and fairly, we need to bolster the capacity of African governments to shape plans and deliver policies which will make a difference on the ground. Too often it is not the ambitions of the continent’s leaders which are at fault but the lack of capacity and systems to put them in place. Putting this right is the focus of my African Governance Initiative which is now working in Rwanda, Sierra Leone and Liberia.

I am proud of what the Commission for Africa has achieved. The commitments we made in 2005 have contributed to a stronger Africa. But we need to recognise that the real credit for Africa’s progress lies with Africans. Our job now is to support them in the vital next steps that could transform the continent and its place in the world, learning from the past as we build the future.’

Tony Blair is patron of the Tony Blair Africa Governance Initiative, a charity that works with the leaders of Rwanda, Sierra Leone and Liberia (www.africagovernance.org)

VoxAfrica filmed the launch. The report, which measures progress since the first report in 2005, also received coverage from the BBC, Radio France Internationale, the Financial Times and a range of African and other international newspapers.

Commission for Africa today launched its new report – Still Our Common Interest – which calls upon African leaders to step up efforts to convert unprecedented economic opportunities into poverty reduction and development.

The new report, Still Our Common Interest, follows up on the previous report published in March 2005. It looks at what has happened in Africa in the past five years, conducts an audit of progress against each of the recommendations made in the 2005 report and makes recommendations for next steps.

Still Our Common Interest:

• Celebrates the progress Africa has made in the past five years.
• Calls on African governments to continue to promote growth and channel revenues into poverty reduction and key services.
• Calls for donors to increase their support to Africa to take account of new challenges, in particular climate change.
• Calls for the international community to support the capacity-building efforts of African governments by, for example, helping them access the best legal advice in negotiating deals for their natural resources.

Five years after it published its original report, the Commission for Africa is calling on African governments to act now to ensure that the region’s unprecedented economic growth and opportunities result in development and poverty reduction for ordinary Africans.

Africa has seen average growth rates of six per cent for most of the past decade and a quadrupling of trade and foreign investment. Some countries in Africa are on track to meet some of the Millennium Development Goals (MDGs), reflecting the progress made since the last report. However, the majority of Africans have yet to experience the benefits of economic growth. Progress towards the MDGs needs to be broader and faster if the continent as a whole is to make significant progress towards meeting the MDGs.

In a short joint statement, the Commissioners said:

“There is much to celebrate. African governments have done more than ever before to promote business and investment. Donors have supported this by boosting their support to infrastructure and providing the aid and debt relief that has allowed African governments to increase their expenditure in key areas such as health, education and agriculture.

But there remains much to be done. Progress on reforming international trade rules has been dismal; donors are still providing less in aid than their commitments; and African governments are still not investing as much as they promised in key areas. That is why we believe this review is timely, and why we believe it is right to renew a number of the recommendations we made in 2005 – because they have yet to be fully implemented – as well as make new recommendations.

Africa’s development requires a range of measures, with African governments in the lead supported by the international community. For example, harnessing international demand for Africa’s natural resources to benefit ordinary Africans will depend on the commitment of African governments to passing on the benefits to their citizens, but also them having access to the best legal advice and a system of international trade that does not disadvantage Africa’s products.”

Still Our Common Interest, the Commission’s review of what has happened in and to Africa since it first reported in March 2005, makes recommendations for what needs to happen next to speed up progress on the continent.

It recommends that African governments:

• Continue their efforts to make it easier to do business within and between their countries – including investing in much needed infrastructure.
• Ensure that they are collecting the revenues from growth through improved domestic resource mobilisation.
• Meet their commitments on spending on health, education, water and sanitation, and agriculture.
• Develop and deliver clear strategies to create jobs, reduce poverty and strengthen key services such as health and education.

The report also calls upon developed countries to:

• Get behind Africa governments’ own strategies for promoting growth and development.
• Help Africa negotiate the best deals possible for the exploitation of its natural resources by supporting a fund to pay for the legal and technical advice to do this.
• Kick start long-delayed reform of international trade rules.
• Continue to support Africa’s development – including by supporting a Global Fund for Education and providing additional financing to adapt to climate change.
• Agree that the G20 will take on the G8′s previous role in making and monitoring commitments to supporting growth and development in Africa.

Still Our Common Interest looks at what has happened against the Commission’s various recommendations.

Summary of key findings

In a number of areas, there has been “substantial progress”, including:

• Steps taken by African governments to improve the investment climate and increases in aid and debt relief to the continent.
• A substantial increase in investment in infrastructure which has contributed to Africa’s growth.
• Progress towards an international Arms Trade Treaty.
• Strong international support for the Global Alliance for Vaccines and Immunisations (GAVI) that has enabled 300 million children to be immunised globally.
• African governments’ commitment alongside strong donor support that has enabled access to the anti-retroviral treatments for HIV/AIDS to grow from 14% in 2005 to 43% in 2008
• More children go to primary school and more get to sleep under a bed net that can protect them from malaria than ever before.
• Africa is very close to eradicating polio.

But there are also a few areas where progress has been “disappointing”:

• International trade reform is perhaps the area of least progress with no movement towards an agreement in the Doha Development Agenda, the removal of agricultural subsidies or trade agreements between the EU and African countries.
• The Commission called for the amount of arable land under irrigation in Africa to be increased by 50% by 2010 – it has grown by just 0.9%.
• Investment in higher education has not improved – contributing to a continued shortage of trained teachers, doctors and other key professionals.

Progress on most recommendations has been mixed – with some but limited positive movement:

• Advances in expanding enrolment and closing the gap between the numbers of girls and boys in primary school is tempered by a relative lack of progress in improving the quality of basic education and in the number finishing primary school and going on to post-primary education.
• The spread of HIV/AIDS in Africa has been halted in many parts of the continent, but sub-Saharan Africa remains the worst affected region in the world.
• There has been increased donor support to sexual and reproductive health services but overall underinvestment in reproductive health, contributing to the lack of progress in reducing child and maternal mortality.
• There still much to be done to attract investment – including a massive need for better infrastructure.

The 2010 report is being launched at the British Museum on 13th September and will also be launched at the MDG Summit in New York on 20th September.

The chapter argues that political will is key to Africa’s development and that international partners must now deliver on promises made by timetabling a clear programme of action to ensure results in the continent.

Above all, the report argues that Africa’s development must be shaped and led by Africans themselves, whilst being supported by strong and credible partnerships with the rest of the world.

To enable this, the report calls for some fundamental reforms to the way the business of development is done by some of the major international development institutions.

The report calls for the World Bank and IMF give a greater voice to African countries by strengthening African representation on their Executive boards. This would not only allow African nations to exert a stronger voice and influence in such forums but also help improve their accountability.

It also recommends that these global finance institutions, along with the World Trade Organisation, now give greater priority to Africa to accelerate its development.

Regarding the United Nations, the report argues for greater African representation on the UN Security Council. Currently, no African nation holds a permanent seat. Changing this would result in a strengthening of the world’s focus on Africa and help the UN to become more responsive in the continent.

The report concludes by calling for a comprehensive and independent monitoring mechanism to be set up. This would report on action and progress against the report’s recommendations by measuring donor performance against clear, time-bound and quantifiable commitments.

Our forthcoming report is part of the process of promoting action on commitments and will examine what progress has been made on these and other recommendations made by the Commission for Africa.

The chapter is best known for its recommendation that international aid to Africa should be doubled. Without this expansion in aid, the report argued, Africa was unlikely to achieve the rapid growth needed to achieve its human development goals.

International aid and whether it helps or hinders development has been the focus of much recent debate. The Commission’s report made the case for how this money has made a positive and significant difference in Africa from supporting economic growth and public institutions, through to reducing conflict and improving health and education levels.

The report also recognises that, to ensure increased aid is spent well, aid-recipient countries should improve their governance and the way in which they manage their finances. It recommended that African nations improve their public financial management, public administration, and public accountability systems. A well-performing public expenditure system, it argued, would not only help to increase the effectiveness of aid, but also enhance accountability to African citizens.

At the same time, international aid had to become more effective through better coordination between donors and more predictable aid that would enable recipients to plan how they would use it. The chapter also recommended a reduction in conditions on aid to enable African governments to be accountable for how the money is spent.

Whilst the report outlines a number of ways that richer nations can find this new money, it argued debt relief had a major role to play in boosting the resources African countries had to invest in development. The report recommended the urgent cancellation of all multilateral and bilateral debt for sub-Saharan African countries that needed it. This would help free up money for governments to spend on growth and poverty reduction.

To finance increases in aid, the report recommended that rich nations commit to allocating 0.7 per cent of their income to development aid. This would help Africa achieve the Millennium Development Goal of halving world poverty by 2015. It also called upon donors to consider innovative means of financing increases in development assistance – for example, through the launch of an International Finance Facility, which would leverage money from international capital markets by issuing bonds, or through new international levies, such as voluntary charges on airline tickets.

You can read about what progress has been made on these and other recommendations in a new report to be published later this month.