Growth alone is not enough. The MDGs alone are
not enough. Africa needs sustainable, inclusive development and in this, the
diaspora could be key.
In 2000,
the UN established eight Millennium Development Goals (MDGs) to be achieved by 2015.
These targets helped create a co-ordinated effort to reduce poverty across the
globe, and impressive progress has been made in a number of areas.
But even if
all of the eight goals and targets are met, many countries would still remain
poor and underdeveloped. This is because the MDGs – as valuable as they may be
– do not deal with the underlying reasons why people remain poor. Furthermore,
they fail to take into account the ways in which the diaspora, who remit nearly half a trillion dollars to
developing countries annually, can be harnessed to help facilitate the
structural and economic transformation so crucial to sustainable development.
Nowhere are
these trends more evident than in Africa. The World Bank reports that the
continent is growing at an average of 5-6% annually, yet poverty levels and unemployment remain high. Meanwhile,
diaspora remittances are thought to significantly outweigh Western aid.
Following
China's example
As Yaw
Ansu, Chief Economist at the African Centre for Economic Transformation (ACET),
has pointed out, growth alone
is not enough. That
is why over 50 UK-based African diaspora organisations, under the Africa-UK umbrella, are pushing for a different
focus for the post-2015MDG architecture. These groups take
the view that international development must not focus solely on poverty
reduction in line with the MDGs, but also foster wealth, drive structural reform and create
employment opportunities.
Africa only
has to look to the example set by countries such as China which has made one of
the most impressive contributions in reducing poverty over the past 30 years
but not through the MDGs. China used foreign investment and diaspora
remittances to help accelerate a competitive industrial and agricultural
policy, focussing on the development of infrastructure, education and skills.
With the benefits of low labour costs and healthcare improvements, China was
able to enjoy a dramatic economic take-off.
Whilst
growth induced by commodity price rises, discoveries of natural resources or
increases in foreign assistance can be significant, it is simply not
sustainable without the infrastructure to support it. For Africa, this means
relying less on aid and primary commodities, and more on industry, manufacturing,
and knowledge-based services. It also means modernising
agriculture along
with upgrading skills and technological capabilities to compete in the global
marketplace.
African
diaspora is key
In this
drive towards inclusive economic and structural transformation, the African
diaspora can have an important role to play.
Take, for
example, the diaspora-led social enterprise
Sacoma UK which
works in Kenya and Uganda to provide structural support to small-scale rural
farmers. Through a combination of training, financial and technical services,
this organisation works closely with communities to help prepare produce for
export to a UK market. This not only helps certain rural populations earn
sustainable incomes but contributes to the development of African small-holder
agriculture and helps increase investment in African agribusiness.
As well as
being uniquely placed to foster these kinds of partnerships, members of the
diaspora can also be critical in providing additional foreign direct investment
along with educated and skilled manpower.
Africa’s
mobile technology boom, for example, began in part thanks to the contributions
of better-known members of the diaspora such as Mo Ibrahim, who founded the
telecommunications company Celtel. The growth of this sector has helped connect
businesses to each other as well as rural dwellers to those in the city,
providing unprecedented access to information and financial systems. It has
been singled out as one of the most important tools for facilitating economic
and development activity in Africa since the turn of the century. Studies on the use of mobile money services such
as M-PESA, for example, suggest that rural Kenyan
households using the technology have seen a rise in their incomes of 5-30%.
It is only
through these kinds of transformations that Africa will be able to create
enough productive jobs and impart the right skills for a modern economy,
improving people’s living standards in economically balanced societies. And
that calls for looking beyond short-term growth and taking a long-term
perspective in setting an agenda for a sustainable economic future, something
in which the diaspora can be central.
A Diaspora
Ministerial Conference held in Geneva on 18 June urged the High Level Panel of
Eminent Persons on the Post-2015 Development Agenda to include global diaspora
alongside national governments in ‘Forging a New Global Partnership’. If Africa
is to see genuine and inclusive growth, a post-2015 framework will need to
incorporate these critical enablers of structural transformation as well as
harness the resources of the diaspora, who must now be recognised as a global
partner for development.
This blog by Onyekachi Wambu, Director of Policy and Engagement at the African Foundation for Development (AFFORD) originally appeared on the Think Africa Press website. The original post is accessible here