Capacity Building, Governance, and Economic Reform in Africa

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Capacity Building, Governance, and Economic Reform in Africa Joint Africa Institute Inaugural Seminar on CAPACITY BUILDING, GOVERNANCE, AND ECONOMIC REFORM IN AFRICA Abidjan, Cote d'lvoire, 2-3 November 1999 Edited by Michel A Dessart Roland E. Ubogu JAI Director JAI Chief Economist International Monetary Fund African Development Bank World Bank 2001 ©International Monetary Fund. Not for Redistribution ©2001 International Monetary Fund Production: IMF Graphics Section Cover design: Lai Oy Louie Typesetting: Choon Lee Cataloging-in-Publication Data Capacity building, governance, and economic reform in Africa : Abidjan, C6te d'lvoire, 2-3 November 1999 I edited byMichel A. Dessart and Roland E. Ubogu-Washington, D.C. : International Monetary Fund, 2001. p. em. At head of title: Inaugural seminar on. "Joint AfricaInstitute." Title on added t.-p.: Renforcement des capacites, gouvernance et reformes economiques en Afrique. English and French back-to-back. ISBN 158906-072-5 1. Africa- Politics and government. 2. Financial institutions, International­ Africa. 3. Training- Africa. 4. International Monetary Fund -Africa. 5. Africa- Economic policy. 1. Pessart, Michel A. II. Ubogu, Roland E. Ill. International Monetary Fund. IV. Title: Renforcement des capacites, gouvernance et refo.rmes economiques en Afrique. JQ1875.C36 2001 Price: $19.00 Address orders to: International Monetary Fund, Publication Services 700 19th Street, N.W., Washington, D.C. 20431, U.S.A. Telephone: (202) 623-7430 Telefax.: (202) 623-7201 E-mail: [email protected] Internet: http://www.imf.org ©International Monetary Fund. Not for Redistribution TA BLE OF CONTENTS Pages INTRODUGION Michel A Dessart I. CAPACITY BUILDING, GOVERNANCE, AND ECONOMIC REFORM IN AFRICA OpeningAddresses Omar Kabbaj 4 Michel Camdessus 10 Vinod Thomas 15 Daniel Kablan Duncan 21 II. THE CHANGING ROLE OF THE STATE, GOVERNANCE AND NEW CAPACITY REQUIREMENTS Tidjane Thiam 29 Henock Kifle 33 George Abed 38 Vinod Thomas 48 Comments from the floor 52 Ill. THE CHALLENGE OF ACHIEVING MACROECONOMIC STABILITY IN AFRICA Goodall Gondwe 53 Kwesi Botchwey 54 Mamoudou Toure 58 Comments from the floor 65 IV. REQUIREMENTS FOR CAPACITY BUILDING IN AFRICA Charles Kanan Bonny 67 Ruth Nankabirwa Ssentamu 68 iii ©International Monetary Fund. Not for Redistribution CONTENTS Juliette Bonkoungou 75 Jose Sulemane 80 Comments from the floor 82 V. ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS IN CAPACITY BUILDING IN AFRICA Ole Blicher Olsen 84 Cyril Enweze 86 Saleh Nsouli 90 Brian Levy 98 Comments from the floor 103 CLOSING REMARKS Chanel Boucher 104 LIST OF PARTICIPANTS 107 iv ©International Monetary Fund. Not for Redistribution INTRODUCTION Michel A. Dessort n behalf of the African Development Bank (ADB), the international OMonetary Fund (IMF), and the World Bank, I am pleased, as the first Director of the Joint Africa Institute (JAI), to present below the proceedings of the Inaugural Seminar. The establishment of the JAI reflects the strong commitment of the three institutions to a close collaboration that responds to the critical learn­ ing needs of countries throughout Africa. The three institutions are com­ mitted to capacity building in Africa. I am confident that the activities of the JAI will enhance the institutional capacity of national governments to better manage their economies and will contribute to economic develop­ ment in Africa. As a reflection of this, the Institute selected the theme "Capacity Building, Governance, and Economic Reform in Africa"for its Inaugural Seminar. The seminar had two main objectives. First, it was to introduce the JAI to a large audience and to obtain immediate feedback on its mission and program. Second, it was to provide participants from multilateral insti­ tutions, the African public sector, and African academics with a forum, in which to discuss approaches to improving systems of governance and fmd­ ing workable capacity-building solutions to Africa's economic development process. The seminar gathered about 130 participants, including the Prime Minister of Cote d'Ivoire, central bank governors, ministers, senior govern­ ment officials, professionals from the academics and regional training insti­ tutions; the African Development Bank, the International Monetary Fund and the World Bank were represented by the president, vice-presidents, executive directors, heads of departments, directors and deputy directors of their respective training institutes and other professionals (see the list of participants in the Attachment). This volume comprises the addresses and presentations made during the five sessions of the seminar. Summarized comments from participants ©International Monetary Fund. Not for Redistribution INTRODUCTION at the end of each session are also included. In addition to the Opening Session which broadly addressed the theme of the Seminar, four separate panels were organised on the following sub-topics: the Changing Role of the State, Governance, and New Capacity Requirements; the Challenge of Achieving Macroeconomic Stabilityin Africa; Requirement for Capacity Building in Africa; and the Role of the International Financial Institutions (IF!s) in Capacity Building in Africa. The Opening Session consisted of four addresses. They were delivered by Mr. Omar Kabbaj, President of the ADB, Mr. Michel Camdessus, Managing Director of the IMF (by videotape), Mr. Vinod Thomas, Director of the World Bank Institute (WBI), on behalf of Mr. Wolfensohn, President of the World Bank, and Mr. Kablan Duncan, Prime Minister of Cote d'Jvoire. The speakers welcomed the continued collaboration between the three ]AI sponsoring institutions. They highlighted the considerable bene­ fits Africa will realize as these institutions bring together the best of their training capacities directly to the region. They regarded the establishment of the JAI as "a new milestone in the enhancement of economic and finan­ cial training opportunities in Africa". The second session, chaired by Mr. T. Thiam, Minister of Planning and Development of Cote d'Ivoire, reviewed the Changing Role of the State, Governance, and New CapacityRequirements. The speakers, namely Messrs. T. Thiam (Cote d'Ivoire), H. Kille (ADB), G. Abed (IMF), and V. Thomas (World Bank), discussed the emerging new role of the state. This role includes ensuring peace and macroeconomic stability, promoting good governance and sound economic management, enhancing political democ­ racy, and creating a conducive environment for the promotion of the pri­ vate sector. The third session, under the chairmanship of Mr. G. Gondwe (IMF), was devoted to the Challenge of Achieving Macroeconomic Stabilityin Africa. Two papers were presented by Mr. K. Botchwey, former Ghanaian Minister of Finance, and Mr. M. Tou re, former Senegalese Minister of Finance, after an introductory statement by the Chairman. The speakers stated that, although achieving macroeconomic stabilization was still an important objective for many countries, the main issues at stake now were promoting good governance, reducing corruption, and especially alleviating poverty. The fourth session, which dealt with the Requirement for Capacity Building in Africa,was chaired by BCEAO Governor K. Banny. There were three papers presented, and introductory remarks by the Chairman. The three speakers, namely, Mrs. R. Nankabirwa, Uganda's Minister of State, 2 ©International Monetary Fund. Not for Redistribution Michel A. Dessor1 Mrs. J. Bonkoungou (Burkina Faso), and Mr. J. Sulemane (Mozambique), agreed that high-level skills and well-functioning institutions were neces­ sary for the sustainability of economic development. African countries and their training institutions must however be deeply involved in the process of capacity building. The fifth session, chaired by Mr. O.B. Olsen, Ambassador of Denmark to Ghana, dealt with the Role of International Financial Institutions (IFis) in Capacity Building in Africa. After a brief address, the Chairman called on members of the panel to make their presentation. The various roles played by the ADB, the IMF, and the World Bank in capacity building, par­ ticularly in Africa, were highlighted by Mr. C. Enweze (ADB), Mr. S. Nsouli (IMF), and Mr. B. Levy (World Bank) respectively. Participants agreed that weak capacity critically hindered development. In his closing remarks, Mr. Chane! Boucher, Vice-President of the African Development Bank, underscored the Seminar's recommendations to the JAI: that the JAI provide more Africans with high quality training; that its program have a truly African focus; and that it offer specific train­ ing that complements, not duplicates, the training provided by other institutions. 3 ©International Monetary Fund. Not for Redistribution I CAPACITY BUILDING, GOVERNANCE, AND ECONOMIC REFORM IN AFRICA Opening Addresses Omar Kabbaj President of the African Development Bank Group t is a great pleasure for me to welcome you all to this Inaugural Seminar I of the Joint Africa Institute (JAI). I would, in particular, like to express my appreciation, as well as that of the African Development Bank, to His Excellency Prime Minister Kablan Duncan, who has graciously accepted to preside over this morning's opening session. It is a testimony to the impor­ tance that he, and the Government of Cote d'Ivoire, attach to this new ini­ tiative. I would also like to express my appreciation to the other Ministers and ADB Governors, who have taken time from their busy schedules to participate in this Seminar. The establishment of the Joint Africa Institute by the African Development Bank, the International
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