Great article in today’s International Herald Tribune by Liberian President Ellen Johnson-Sirleaf and the head of deBeers. They look at Africa’s development, aid to the continent, and the debates about the efficacy of aid and determine that a big part of the issue is the missing private sector involvement:
At the heart of development is the relationship between governments, their citizens and their own private sector. Yet the international debate on development is by and large still focused on the interaction of donors, NGOs, and recipient governments.
They focus on competitiveness and the need to build and sustain local support for the tough reforms needed, something that hasn’t happened much in Africa, in part because of insufficient consultation with domestic business communities. Costa Rica looks to be a positive example for them in which government focuses on infrastructure, health and education; foreign aid provides a bridge of temporary support; and obstacles are reduced to well-governed companies, principled leadership, and educated citizens each playing their part in a partnership, not an every-man-for-himself feeding frenzy.
They conclude:
Effective use of aid can support African reforms, but it must not be the organizing principle for African development. The key to success will be the extent to which African governments can provide the private sector with the right incentives to add value to the economy, so both business and government can concentrate on what each does best.
Well worth a read!
Published Date: August 29, 2008