Africa Needs $93 Billion to Improve Infrastructure
A new report from the World Bank and African partners, Africa's Infrastructure: A Time for Transformation, highlights the findings of a 24-country study and urges increased investment in four critical areas: energy, transport, water, and information and communications technology.
For more on the report, visit http://go.worldbank.org/NGTDDHDDB0
Monday, November 16, 2009
Wednesday, October 14, 2009
Why Aid to Africa Must Increase
Given its massive development deficits and the effects of the global economic crisis, many observers, included me, are calling for increased aid to Africa. Most of these appeals are based on Africa’s need for more resources. But there is a different argument.
Aid to Africa is today as productive as it has ever been.
Craig Burnside and David Dollar identified a group of policies (including fiscal stability and low trade barriers) that strengthened the link between foreign aid and per capita income growth. These are the very policies that African governments have been improving over the past decade.
Even after the onset of the global economic crisis, and despite the fears that these
policies may be reversed, African governments have by and large been continuing to pursue prudent economic policies and, in some cases, even accelerating reforms.
In short, the policy environment to make aid productive in Africa has never been better.
To be sure, the Burnside-Dollar paper, like most seminal papers, has come under some criticism, mainly for its neglect of factors other than policy that make aid productive. One of those factors, championed by Hansen and Tarp, and elaborated on by Guillaumont and Chauvet, points out that, independently of the policy environment, aid is productive when countries have suffered a negative shock.
But this is what African countries have suffered in the recent past. So whether it’s because the policy environment has continued to improve, or because of adverse external shocks, there is a strong case that aid to Africa should increase because it is productive.
Submitted by Shanta on Thu, 2009-10-01 11:41
Aid to Africa is today as productive as it has ever been.
Craig Burnside and David Dollar identified a group of policies (including fiscal stability and low trade barriers) that strengthened the link between foreign aid and per capita income growth. These are the very policies that African governments have been improving over the past decade.
Even after the onset of the global economic crisis, and despite the fears that these
policies may be reversed, African governments have by and large been continuing to pursue prudent economic policies and, in some cases, even accelerating reforms.
In short, the policy environment to make aid productive in Africa has never been better.
To be sure, the Burnside-Dollar paper, like most seminal papers, has come under some criticism, mainly for its neglect of factors other than policy that make aid productive. One of those factors, championed by Hansen and Tarp, and elaborated on by Guillaumont and Chauvet, points out that, independently of the policy environment, aid is productive when countries have suffered a negative shock.
But this is what African countries have suffered in the recent past. So whether it’s because the policy environment has continued to improve, or because of adverse external shocks, there is a strong case that aid to Africa should increase because it is productive.
Submitted by Shanta on Thu, 2009-10-01 11:41
Monday, April 27, 2009
Swine flu outbreak dampens economy hopes, markets
LONDON (Reuters) - An outbreak of swine flu dampened tentative hopes for the global economy, sending markets lower on Monday and analysts fear a possible pandemic could force countries further into recession.
The virus, a new strain of swine flu, has killed 103 people in Mexico and spread to the United States. The World Health Organization said the outbreak was a "public health emergency of international concern" that could become a pandemic, or global outbreak of serious disease.
The World Bank estimated in 2008 that a flu pandemic could cost $3 trillion and result in a nearly 5 percent drop in world gross domestic product, damaging prospects of recovery in a world economy deep in financial crisis.
The SARS outbreak, which disrupted travel, trade and the workplace in 2003, cost the Asia Pacific region an estimated $40 billion. It lasted six months and killed 775 of the 8,000 people it infected in 25 countries.
"A nasty chill will run through the market with swine flu as people think back to the SARS virus," said Justin Urquhart Stewart, investment director at Seven Investment Management.
"The threat of the pandemic will add further weakness to global trade -- we saw with SARS tangible percentage points knocked off the index and that was in a buoyant time. Put that in a weaker time and it is likely to be more unpleasant."
European shares opened lower, with the FTSEurofirst 300 index down 1.11 percent at 0830 GMT. Airline stocks were hit by fears the outbreak would hurt travel but drugmakers were higher on vaccine hopes against the virus.
Japan's Nikkei average closed up just 0.2 percent on Monday, giving up earlier gains as the yen rose sharply and other Asian stocks fell on concerns over the flu outbreak.
Shares in Swiss drugmaker Roche Holding AG (ROG.VX) rose. The company said it was working on increasing production of Tamiflu, a drug shown to work against the new flu strain. But a company spokeswoman said the production lead time for the drug from synthesis of the product to packaging was eight months.
"We've always made it clear that this cannot happen overnight which is why it is so important that countries are prepared before the pandemic breaks out," she said.
'TRANSITORY'
Mexican Finance Minister Agustin Carstens tried to calm investors scared by the outbreak of flu, saying its impact on the economy will be "transitory.
The swine flu outbreak in Mexico came just when more world policymakers were proclaiming signs of a possible stabilization to the global economy.
"Six or eight weeks ago, there were no positive statistics to be found anywhere. The economy felt like it was falling vertically. Today, the picture is much more mixed. I think that sense of unremitting freefall that we had a month or two ago is not present today," Lawrence Summers , economic adviser to U.S. President Barack Obama, said on Sunday.
The delicate state of the global economy was underlined by the Japanese government which cut its economic forecasts on Monday, saying gross domestic product would shrink 3.3 percent over the next year, and a senior ruling party official said further stimulus would be needed.
The Bank of Japan is expected keep interest rates near zero when it meets on Thursday but cut its economic forecasts and maintain a cautious view on the global outlook. BOJ Governor Masaaki Sharakawa has signaled the BOJ's monthly policy review will predict a gradual recovery toward the end of this year or early in 2010.
In Europe, two European Central Bank Governing Council members suggested further reductions in the main refinancing rate.
Council member and Bundesbank President Axel Weber said cutting the rate to 1 percent from 1.25 percent was necessary as economic growth would continue to lag its potential for some time.
"I think 1 percent is a sensible lower limit, because you can't look just at the main refinancing rate. The deposit rate also plays a role," Weber told the Frankfurter Allgemeine Zeitung in an interview.
ECB Governing Council member Nout Wellink said the ECB should discuss lowering rates below 1 percent. Asked by Markets News International if the main refinancing rate should go below 1 percent, Wellink said: "This is part of a discussion we should have in the Governing Council. Of course that should be discussed.
Source(Reporting by Reuters correspondents worldwide; Writing by Guy Dresser; Editing by Sue Thomas)
The virus, a new strain of swine flu, has killed 103 people in Mexico and spread to the United States. The World Health Organization said the outbreak was a "public health emergency of international concern" that could become a pandemic, or global outbreak of serious disease.
The World Bank estimated in 2008 that a flu pandemic could cost $3 trillion and result in a nearly 5 percent drop in world gross domestic product, damaging prospects of recovery in a world economy deep in financial crisis.
The SARS outbreak, which disrupted travel, trade and the workplace in 2003, cost the Asia Pacific region an estimated $40 billion. It lasted six months and killed 775 of the 8,000 people it infected in 25 countries.
"A nasty chill will run through the market with swine flu as people think back to the SARS virus," said Justin Urquhart Stewart, investment director at Seven Investment Management.
"The threat of the pandemic will add further weakness to global trade -- we saw with SARS tangible percentage points knocked off the index and that was in a buoyant time. Put that in a weaker time and it is likely to be more unpleasant."
European shares opened lower, with the FTSEurofirst 300 index down 1.11 percent at 0830 GMT. Airline stocks were hit by fears the outbreak would hurt travel but drugmakers were higher on vaccine hopes against the virus.
Japan's Nikkei average closed up just 0.2 percent on Monday, giving up earlier gains as the yen rose sharply and other Asian stocks fell on concerns over the flu outbreak.
Shares in Swiss drugmaker Roche Holding AG (ROG.VX) rose. The company said it was working on increasing production of Tamiflu, a drug shown to work against the new flu strain. But a company spokeswoman said the production lead time for the drug from synthesis of the product to packaging was eight months.
"We've always made it clear that this cannot happen overnight which is why it is so important that countries are prepared before the pandemic breaks out," she said.
'TRANSITORY'
Mexican Finance Minister Agustin Carstens tried to calm investors scared by the outbreak of flu, saying its impact on the economy will be "transitory.
The swine flu outbreak in Mexico came just when more world policymakers were proclaiming signs of a possible stabilization to the global economy.
"Six or eight weeks ago, there were no positive statistics to be found anywhere. The economy felt like it was falling vertically. Today, the picture is much more mixed. I think that sense of unremitting freefall that we had a month or two ago is not present today," Lawrence Summers , economic adviser to U.S. President Barack Obama, said on Sunday.
The delicate state of the global economy was underlined by the Japanese government which cut its economic forecasts on Monday, saying gross domestic product would shrink 3.3 percent over the next year, and a senior ruling party official said further stimulus would be needed.
The Bank of Japan is expected keep interest rates near zero when it meets on Thursday but cut its economic forecasts and maintain a cautious view on the global outlook. BOJ Governor Masaaki Sharakawa has signaled the BOJ's monthly policy review will predict a gradual recovery toward the end of this year or early in 2010.
In Europe, two European Central Bank Governing Council members suggested further reductions in the main refinancing rate.
Council member and Bundesbank President Axel Weber said cutting the rate to 1 percent from 1.25 percent was necessary as economic growth would continue to lag its potential for some time.
"I think 1 percent is a sensible lower limit, because you can't look just at the main refinancing rate. The deposit rate also plays a role," Weber told the Frankfurter Allgemeine Zeitung in an interview.
ECB Governing Council member Nout Wellink said the ECB should discuss lowering rates below 1 percent. Asked by Markets News International if the main refinancing rate should go below 1 percent, Wellink said: "This is part of a discussion we should have in the Governing Council. Of course that should be discussed.
Source(Reporting by Reuters correspondents worldwide; Writing by Guy Dresser; Editing by Sue Thomas)
Wednesday, April 22, 2009
Infolinks: Personal experience & Recommendation
Blogging might be for personal interest, just to publish ideas and having funny. But the trend in blogging, change from a mere publishing with making money that make it more funny and interesting, with that view in mind , I do here by today come up with something new. I want to share with my dearest readers the experience on Infolinks, one of the global known in text Ads.
I joined Infolinks on 3rd December 20008, it was not by chance it was my effort looking at internet on how to make money from blog. I was introduced to Infolinks via search engine: Are you also blogging? or own a website? be it personal or for business purposes, making money is now more easy than before. Just visit Infolinks web page, you don’t need to be an IT expert, it take me less than five (5) minutes to integrate Infolinks.
One might ask, how did you integrate infolinks? It is simple, after you sign up you will be assigned publishers ID and the HTML code. It is this code that you paste in the HTML of your site. This code is permanently saved on your account; you may retrieve it any time you want. Just sign on Infolinks you will find a menu for REPORT, MY ACCOUNT and INTEGRATION GUIDE. In the integration guide you will always find your HTML code plus advanced setting where you may change some option, includes colour, number of Ad to appear, a maximum is 12. Heartily speaking it was easy, I started in INTERNATIONAL DEVELOPMENT, later on in URBAN & REGIONAL DEVELOPMENT PLANNING.
The best of it you don’t need to change your website to use Infolinks, you just paste the HTML code to your site.
I haven’t yet receive any cheque so far from infolinks, but am happy with my earning. I do even remember my first earning it was 2008, December 14 (Sunday), it is possible for me to remember it, I just check a report on my Infolinks account. Even though we do post at least two (2) monthly, we have been able to get total net impressions of 642. In past months the schedule was tight, and still we have so many to learn on blog design and administration. We do have goals and strategies as from May we’ll be publishing daily. So I welcome you to be one of the blog follower, I do hope that I will come with new story on Infolinks next time.
I tried in-text before, it was hard to integrate and that is why I decided to go to search engine for alternative, it is I come for Infolinks.
If other provider, I tried before could have been support responsive I could have not been to Infolinks. The way I write someone might think am joking or am boasting the Infolinks. Strictly No! Do you have your website? Or a blog just try it today. Confidently you will be the next to send your testimonial.
I do remember soon after I joined, I post some question to info@infolinks.com, it was 3rd of December 2008, it was promptly answered on 4th December 2008 by customer care: from Sarah Medevesky.
Am satisfied with Infolinks, and am ready to assist you anytime. Don’t just do blogging make money, try Infolinks
I joined Infolinks on 3rd December 20008, it was not by chance it was my effort looking at internet on how to make money from blog. I was introduced to Infolinks via search engine: Are you also blogging? or own a website? be it personal or for business purposes, making money is now more easy than before. Just visit Infolinks web page, you don’t need to be an IT expert, it take me less than five (5) minutes to integrate Infolinks.
One might ask, how did you integrate infolinks? It is simple, after you sign up you will be assigned publishers ID and the HTML code. It is this code that you paste in the HTML of your site. This code is permanently saved on your account; you may retrieve it any time you want. Just sign on Infolinks you will find a menu for REPORT, MY ACCOUNT and INTEGRATION GUIDE. In the integration guide you will always find your HTML code plus advanced setting where you may change some option, includes colour, number of Ad to appear, a maximum is 12. Heartily speaking it was easy, I started in INTERNATIONAL DEVELOPMENT, later on in URBAN & REGIONAL DEVELOPMENT PLANNING.
The best of it you don’t need to change your website to use Infolinks, you just paste the HTML code to your site.
I haven’t yet receive any cheque so far from infolinks, but am happy with my earning. I do even remember my first earning it was 2008, December 14 (Sunday), it is possible for me to remember it, I just check a report on my Infolinks account. Even though we do post at least two (2) monthly, we have been able to get total net impressions of 642. In past months the schedule was tight, and still we have so many to learn on blog design and administration. We do have goals and strategies as from May we’ll be publishing daily. So I welcome you to be one of the blog follower, I do hope that I will come with new story on Infolinks next time.
I tried in-text before, it was hard to integrate and that is why I decided to go to search engine for alternative, it is I come for Infolinks.
If other provider, I tried before could have been support responsive I could have not been to Infolinks. The way I write someone might think am joking or am boasting the Infolinks. Strictly No! Do you have your website? Or a blog just try it today. Confidently you will be the next to send your testimonial.
I do remember soon after I joined, I post some question to info@infolinks.com, it was 3rd of December 2008, it was promptly answered on 4th December 2008 by customer care: from Sarah Medevesky.
Am satisfied with Infolinks, and am ready to assist you anytime. Don’t just do blogging make money, try Infolinks
Wednesday, April 8, 2009
Transform economies to mitigate pain of global economic crisis - World Bank Vice President for Africa urges
Lusaka, April 4, 2009 — World Bank Vice President for Africa Obiageli Ezekwesili has challenged countries in Africa to use the global economic downturn as an opportunity to rapidly transform their economies through diversifying sources of growth, reforming policies, and strengthening governance.
Speaking at a national Indaba on the impact of the global economic crisis on Zambia, Ms. Ezekwesili said transforming economies requires political will at the highest levels, accountability for results by both leaders and citizens, and plans that are supported by the right policies.
“All too often I hear leaders tell me that their countries would develop faster if they had more resources. I believe that resources without the right policies will not work. If the policies are right, resources normally follow,” Ms. Ezekwesili said.
She said countries ought to reform to create an enabling environment for both local and foreign investors. “After this crisis ebbs, foreign investors will return but they will be cautious and invest first in those countries that have kept to the reforms they had initiated,” she said. Ms. Ezekwesili added that investors would also be interested in countries that have demonstrated a willingness to strengthen governance and embraced the rule of law.
Diversify sources of growth – agriculture and infrastructure key.
Ms. Ezekwesili noted that much as the global crisis did not originate from Africa, it has not left the continent unscathed. She said Africa has suffered the impact of the global crisis through different ways that include reduced investment and a rapid decline in commodity prices. It has been even tougher for countries that depend on one commodity. So, she said, African countries need to cushion themselves from future economic shocks by diversifying their economies. Basing her proposal on Zambia’s dependence on copper, and the country’s boom and bust experiences with the metal, Oby said diversifying sources of growth is a more certain way to sustainable development.
“Imagine a Zambia without copper?” she challenged.
She cited agriculture as an important source of growth that Zambia, just like many other countries, ought to refocus on to diversify economies. Growth originating from agriculture is four times more effective in raising incomes of the poor than growth from outside agriculture, according to the World Bank’s 2008 World Development Report. For example, even though copper has been a backbone of Zambia’s economy, it does not appear to have improved lives of the rural poor.
During the past five years, the rate of growth of agriculture in Zambia was less than one percent per year, despite large expenditure increases in a fertilizer support program. The World Bank Vice President noted that for agriculture to grow, much more is needed than fertilizer.
“Agriculture development is not just about agriculture – it must also be about roads, especially feeder roads that allow the rural farmer to access markets in Lusaka; about the farmer using mobile telephony to access market information that will ensure that she gets the best value for her products,” she said.
“It is also about access to energy if Zambia is to see an emergence of agribusiness; and it has also got to be about policies in the petroleum sector to help reduce the very high prices of fuel that have such a strong effect on transport costs,” she added.
To succeed in its diversification, Ms. Ezekwesili added that Zambia must also invest in its human capital.
Learning from Mauritius
Ms. Ezekwesili’s call on right policies and diversification were echoed by a representative of Mauritius at the Indaba who said timely policy changes and transparency in reforms were key to his country’s economic success. Mr. Dev Chamroo, Director of Policy and Planning at the Board of Investment of Mauritius said policies to consolidate and diversify from sugar business saw sugarcane’s contribution to GDP decline from 98 percent of GDP in 1998 to 3% in 2008. Mauritius has expanded growth drivers from sugar to ICT, tourism, and textiles, and amended legislation and policies to make doing business easier. The World Bank’s 2009 Doing Business 2009 Report ranks Mauritius as the top reformer in Africa.
Zambia determined
Dubbed the G500 after the number of delegates at the Indaba, the Zambian conference is the first of its kind in Africa to discuss the impact of the global economic downturn at national level. The Indaba was attended by Zambian President Rupiah Banda and the country’s two former presidents Kenneth Kaunda and Frederick Chiluba, and a cross section of Zambian stakeholders and foreign delegates.
President Banda outlined how the crisis has affected growth prospects in his country. The major impact point has been the mining sector where he said jobs have been lost resulting in income loss in households and rapid decline of the quality of life. He said Government’s ability to mobilize revenue has been affected, and the reduced foreign exchange was affecting procurement of fertiliser for agriculture. He however said Zambia was determined to use its collective wisdom and experiences from other countries to face the challenge and diversify the economy as a safety measure for the future.
###
Contact:
In Lusaka: Jumbe Jeremiah Ngoma
+260 21 125 2811
jngoma@worldbank.org
Speaking at a national Indaba on the impact of the global economic crisis on Zambia, Ms. Ezekwesili said transforming economies requires political will at the highest levels, accountability for results by both leaders and citizens, and plans that are supported by the right policies.
“All too often I hear leaders tell me that their countries would develop faster if they had more resources. I believe that resources without the right policies will not work. If the policies are right, resources normally follow,” Ms. Ezekwesili said.
She said countries ought to reform to create an enabling environment for both local and foreign investors. “After this crisis ebbs, foreign investors will return but they will be cautious and invest first in those countries that have kept to the reforms they had initiated,” she said. Ms. Ezekwesili added that investors would also be interested in countries that have demonstrated a willingness to strengthen governance and embraced the rule of law.
Diversify sources of growth – agriculture and infrastructure key.
Ms. Ezekwesili noted that much as the global crisis did not originate from Africa, it has not left the continent unscathed. She said Africa has suffered the impact of the global crisis through different ways that include reduced investment and a rapid decline in commodity prices. It has been even tougher for countries that depend on one commodity. So, she said, African countries need to cushion themselves from future economic shocks by diversifying their economies. Basing her proposal on Zambia’s dependence on copper, and the country’s boom and bust experiences with the metal, Oby said diversifying sources of growth is a more certain way to sustainable development.
“Imagine a Zambia without copper?” she challenged.
She cited agriculture as an important source of growth that Zambia, just like many other countries, ought to refocus on to diversify economies. Growth originating from agriculture is four times more effective in raising incomes of the poor than growth from outside agriculture, according to the World Bank’s 2008 World Development Report. For example, even though copper has been a backbone of Zambia’s economy, it does not appear to have improved lives of the rural poor.
During the past five years, the rate of growth of agriculture in Zambia was less than one percent per year, despite large expenditure increases in a fertilizer support program. The World Bank Vice President noted that for agriculture to grow, much more is needed than fertilizer.
“Agriculture development is not just about agriculture – it must also be about roads, especially feeder roads that allow the rural farmer to access markets in Lusaka; about the farmer using mobile telephony to access market information that will ensure that she gets the best value for her products,” she said.
“It is also about access to energy if Zambia is to see an emergence of agribusiness; and it has also got to be about policies in the petroleum sector to help reduce the very high prices of fuel that have such a strong effect on transport costs,” she added.
To succeed in its diversification, Ms. Ezekwesili added that Zambia must also invest in its human capital.
Learning from Mauritius
Ms. Ezekwesili’s call on right policies and diversification were echoed by a representative of Mauritius at the Indaba who said timely policy changes and transparency in reforms were key to his country’s economic success. Mr. Dev Chamroo, Director of Policy and Planning at the Board of Investment of Mauritius said policies to consolidate and diversify from sugar business saw sugarcane’s contribution to GDP decline from 98 percent of GDP in 1998 to 3% in 2008. Mauritius has expanded growth drivers from sugar to ICT, tourism, and textiles, and amended legislation and policies to make doing business easier. The World Bank’s 2009 Doing Business 2009 Report ranks Mauritius as the top reformer in Africa.
Zambia determined
Dubbed the G500 after the number of delegates at the Indaba, the Zambian conference is the first of its kind in Africa to discuss the impact of the global economic downturn at national level. The Indaba was attended by Zambian President Rupiah Banda and the country’s two former presidents Kenneth Kaunda and Frederick Chiluba, and a cross section of Zambian stakeholders and foreign delegates.
President Banda outlined how the crisis has affected growth prospects in his country. The major impact point has been the mining sector where he said jobs have been lost resulting in income loss in households and rapid decline of the quality of life. He said Government’s ability to mobilize revenue has been affected, and the reduced foreign exchange was affecting procurement of fertiliser for agriculture. He however said Zambia was determined to use its collective wisdom and experiences from other countries to face the challenge and diversify the economy as a safety measure for the future.
###
Contact:
In Lusaka: Jumbe Jeremiah Ngoma
+260 21 125 2811
jngoma@worldbank.org
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