Millennium Development Goals (MDGs)– a set of targets to slash a host
of social ills, including extreme poverty, by 2015 – African countries
must pursue more "pro-active" policies to develop a wider range of
goods, according to a United Nations report released on Tuesday.
More than half of all African countries recorded improvements in
overall real GDP growth last year, a statement released by the UN
Information Office in Accra on Wednesday said.
It said, on average, the continent's economies had maintained a
"growth momentum" over the past several years, growing at 5.2 per cent
in 2004, 5.3 per cent in 2005, 5.7 per cent in 2006 and a projected
5.8 per cent this year.In spite of this growth, the report, entitled
"Economic Report on Africa 2007," said that African countries were
heavily dependent on primary commodities, which were a common feature
of production and exports throughout the continent, making the
countries extremely vulnerable to external shocks.
"The time has come for Africa to embark on the more systematic
effort at diversifying its economy," Eloho Otobo, a UN economist, told
reporters at the report's launch. "This can only come about by
promoting pro-active growth policies."
The annual report, jointly produced by the UN Economic Commission
for Africa and the Commission of the African Union (AU), said while
other developing regions had increased their share in global trade,
Africa's share had declined, even as global trade liberalization had
progressed.
"One-size-fits-all" macroeconomic models rooted in stabilization
and reform policies, the study noted, are partially to blame for the
continent's sluggish pace in achieving high and sustainable growth.
"Besides sustaining macroeconomic stability, African countries
needs to tailor their fiscal and monetary policies to promoting
domestic investment, employment generation, and growth," said the
report.The report calls for increased efforts to stimulate private
investment through increasing access to cheaper credit to hasten
diversification.It also stresses the importance of industrialization
to deepen horizontal diversification in a range of goods.
Another key recommendation is for African countries to strengthen
their institutions. Given that conflict undercuts industrialization,
"it is important that countries invest in peace-building and
peace-promoting institutions that can proactively deal with threats of
conflict flare-up or resurgence," the report stated.
4 April 07
