#MDGs- the cameras are switched off now what?

A week ago all cameras were on UN Summit as the great and good convened in New York  to review the Millennium Development Goals or MDGs .

WOMEN OF KIREKA- PHOTO BY TMS RUGE

If you followed the news and discussions on the various social media platforms you would have noted that  opinions were divided. The key points of note were

  • More Aid is required
  • some countries especially in sub-saharan Africa are unlikely to meet the goals
  • the goals are not realistic and should be treated as mere aspirations
  • goals not far reaching as elements such as governance are missing

Just about the same time two stories broke regarding Bono, his fashion label as well as his ONE campaign. Rotten timing I would say for someone in his position. Nevertheless if this is what  folk like him that are on record as advocating for a fairer deal for Africans get up to when the cameras are switched what hope is there, if any of meeting the MDGs,

I am going to keep this very short as  I would to give you the reader especailly if you are a fellow African a chance to answer this question, because I believe that after so many years of aid getting pumped into Africa we are not getting anywhere near being self sustaining  if we need outsiders to come in and set us goals in spite of the wealth that we have on the continent. Are we perhaps asking ourselves the wrong questions?

What can we as Africans do for ourselves today, without Aid from the West?

Please leave your answer to this question or any other comments below

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#MDGS- Time to stop talking and get some work done

The Millennium Development Goals or MDGs   are set of goals agreed by world leaders way back in 2000 as basis of measuring work around eradicating poverty by 2015.  The 8  goals are listed as follows

  • Goal 1: Eradicate extreme poverty and hunger
  • Goal 2: Achieve universal primary education
  • Goal 3: Promote gender equality and empower women
  • Goal 4: Reduce child mortality
  • Goal 5: Improve maternal health
  • Goal 6: Combat HIV/AIDS, malaria and other diseases
  • Goal 7: Ensure environmental sustainability
  • Goal 8: Develop a Global Partnership for Development

We are 5 years away and as I write world leaders are heading to New York for  a Summit to review the MDGs (20-22 September) and our own Nick Clegg is amongst them. This should an interesting meeting for the UK whilst it has pledged 0.7% of its GDP to AID to the developing nations and ring fenced its International Development budget others are feeling so generous.

These folk will be preoccupied with the fact that we are only 5 years away from the deadline and it is very clear that some countries especially in Sub-Saharan Africa stand no chance of meeting/achieving these goals.

WHY  IS THIS AND WHAT CAN BE DONE TO ENSURE THAT THE GOALS ARE MET?

I think the reasons why are complex and I suspect it is not simply about unwillingness on anyone’s part to make this work. So my take on the matter goes as follows

In the years since the goals were agreed the world has suffered the biggest recession in decades and this has without a doubt hit the BOTTOM BILLION the hardest.

School building construction Ruhanga SW Uganda

By July last year it was reported that France and Italy had failed to honour their pledge of AID to  the developing world. I have no evidence that this was due to the recession but I would not be surprised if it was. As the  Airline safety procedure says “put on your own mask before assisting someone else” Would it be reasonable to expect France and Italy to send money to foreign lands without first meeting the needs of their own citizens?

War on Terror

On September 11 2001 America became a victim of the worst terrorist attack in history and we are still feeling the effects of this today. As well as the human cost they were financial costs until today. Only a few months ago the terrorists raised the stakes by  attacking and killing at least 76 people in Kampala whilst they were watching the World cup finals. These terrorist attacks in my mind derail progress. I had a conversation with someone the other day who told me that they would not invest in Uganda as following those attacks on July 7th Uganda is now considered an unsafe investment destination. But not only that resources that could have been spent on addressing the goals are now diverted to the security of the country or fighting Al-shabab to be exact


Remittances: Each day millions of people migrate in search of better economic prospects and when they do find paid most will send (remit) a percentage of their income to those left behind. According to the World bank this amounted to $305 billion in 2008 but was forecast to reduce to $290 billion in 2009. A lay man’s explanation the diaspora (folk who remit the money) faced unemployment or reduced pay and in fact for some the situation got so bad that they returned to their home countries as they could not afford to sustain themselves and the folk back home under the economic downturn.

The reduction in remittances is catastrophic as this money goes directly into folks pockets and gives them spending power and economies in the developing world rely heavily on this money that is reportedly higher than any amount of AID and Private sector investment (source World bank). This money pays for school fees, health care and in some cases enables folk to start small enterprises. You will note that all these are directly linked to first 6 Goals.

Another reason why the MDGs  will not be met is laid right at the door step of African leaders. Africa is not poor  in as far as resources are concerned but why are resources termed as a curse? The fight for control of resources has led to years of civil wars and unrest in several Sub-Sahara countries such as CHAD. African leaders have a responsibility to ensure that resources are used for the benefit of all citizens and if this were to happen countries like Democratic Republic of Congo would not be a hell on earth for Women and children.

TIME TO STOP TALKING

Unless we stop talking and get down to some hard work such Summits as the one being convened by Ban Ki-Moon risk becoming talking shops. WHAT HAPPENS WHEN THE CAMERAS ARE SWITCHED OFF?

I know the Commission for Africa has called for more Aid to Africa, but I think that is not necessarily the answer. Aid does have a role to play in emergencies and structural development but is limited in scope and we need to recognize that.

If we can send troops to get rid of the Talibans lets make African leaders more accountable!

African countries need to make trade with each other easier, they are more consumers in Africa than they are in Europe for instance, therefore the focus on trade must include trading with each other and not simply access to Western markets. As the new report from the Commission for Africa points out- African leaders should make the investment climate conducive to investment and this is not necesarrily for investors in the west alone.

WE AFRICANS MUST RECOGNIZE TOO THAT IT IS OUR  RESPONSIBILITY  THAT THE GOALS ARE MET AND NOT WAIT FOR SOME EXTERNAL FORCES TO DO IT FOR US.

Finally the West should recognize Africa as potential economic partner and not simply a place from which to fetch resources!

so there you have it folk. If you have a view kindly share it here

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Inclusive Business in Africa Part4- Value Addition at Source

This is the last installment of the Practitioner’s workshop in Uganda and so far we have introduced ourselves, looked at support required from others and measured the Impact of Inclusive business in Africa.

This post will consider the notion of Value Addition at source.

This part of the session kicked off with an invitation for  us to consider  what the United Nations has termed as systemic constraints faced by the poor both as consumers and producers

  1. Lack of market information- what does the market we are trying to enter want?
  2. Ineffective regulatory environments: it can take up to two month or more to acquire a business licence in some parts of Africa. The legal systems don’t always favour the poor, it took our textile producer in Tanzania 2 years to buy a piece of land to expand her business and in the end she handed the whole affair to lawyer to resolve
  3. Inadequate physical infrastructure; inadequate transport and telecommunication systems, power cuts etc all make for a near impossible environment within which to conduct a business. How then can the poor become suppliers of large international businesses?
  4. Missing knowledge and skills: poor education often means that the poor are excluded from formal employment, how can they take up business opportunities as producers/suppliers?
  5. limited access to financial services : poor almost always pay more for everything especially when it comes to borrowing. Most are un bankable (that is development jargon for without a bank account) and a combination of lacking in skills and knowledge means that they cannot present projects at lending institutions to acquire credit.

I recall having that sinking feeling that these are all complex and challenging issues that must be addressed in order to stem poverty and encourage growth in developing countries. However donors, businesses and non government organisations cannot go it alone each party must do what it is good at for better development outcomes. And indeed that businesses must that look beyond the traditional Corporate Social Responsibility (CSR) if we we are to make inroads in as far as resolving poverty is concerned. Non one can deny that VALUE ADDITION at source isn’t a worthwhile undertaking

At the event we learned about an upcoming project by coca cola,  they have taken up a problem faced by fruit growers in East Africa and worked out a way helping them out of poverty without simply handing money out to them. Most fruit grown in East Africa ends up getting spoilt because there is no way of adding value to it or preserving it.

Therefore Coca Cola has teamed up with Techno Serve and the Bill Gates Foundation to provide a solution for the fruit growers. The result is a $15M facility is due to go up in Kampala Uganda and will work with 50,000 fruit farmers who will supply Coca Cola with fruit for their new brand of fruit juices made in Africa. As you can see this model brings together a business (Coca Cola) a Non government organisation (Techno serve) and a Donor ( Bill gates Foundation)  Coca cola is a donor here too as they paid in $5M ) reaching out to farmers to find them a sustainable solution to poverty. This goes beyond the traditional CSR and is the sort of development model that I find desirable

Will we see more models such as that of Coca- cola? This is becoming the desired way of doing things in fact SAB Miller a brewer based in Woking Surrey has adapted a similar model in Uganda and Zambia. The Uganda arm is based on sorghum growers supplying SAB MILLER directly, the Ugandan government gives them tax breaks and the locals end up with a beer they can afford made from ingredients grown in their country and I suspect some how somewhere the government has revenue from this set up!

My colleagues and I believe that value addition at source is a major way by which poverty can be stemmed. This involves the transfer of skills, knowledge and technology to producers/supplies in developing economies to enable them to compete in international markets. There is a urgent need to move away the view that Africa is simply a source of raw materials.

Other issues for consideration

· The image of Africa in particular- the popular press portrays Africa as

o a country, and not as a continent made up different countries with degrees of need

o a place with no good news- wars, famine, disease etc, this means that it becomes a less attractive place for potential investors- I wonder if this is the reason some companies just turn up for raw materials?

o Give Africans the space to tell our stories, involve us in the development agenda

By way of conclusion, it was felt that networking with like minded people and sharing skills and knowledge is a great way forward as it brings together producers, consumers, donors,  practitioners and provides space to discuss ways to address issue of poverty

So over to you folks! Have you got a view?


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