COMMENT - Can the World Bank point to a single success, where their neoliberal policies have developed (rather than destroyed) a single economy? Apparently, over the past 20 years we just didn't open markets up enough - that's the problem. Neoliberalism - free markets, deregulation, privatisation/briberization - has failed time and again. It is time to let go of the dogma, and return to demand side economics.
Remove policy induced barriers - World Bank
By Mutale Kapekele
Wed 16 Feb. 2011, 03:59 CAT
REMOVING tariffs between regional groups in Africa will have limited impact on trade unless
policy induced barriers to trade are eliminated, says World Bank Group chief economist for Africa Shantayanan Devarajan.
Responding to a press query on the new United Kingdom Africa Free Trade Initiative, Devarajan advised countries in the region to work at removing non-tariff barriers to trade for them to enjoy benefits of free trade. The UK launched the free trade initiative at the beginning of this month in an effort to increase trade with Africa.
"As we understand it, the Africa Free Trade Initiative works to free up all trade barriers that exist across Africa. The initiative is targeted at domestic barriers to expanded trade, rather than UK tariffs on African exports because the latter is subject to the UK's membership in the EU customs union,” Devarajan stated.
“While tariffs to regional trade have largely been removed in the EAC and Southern Africa there has been much less progress in West Africa. Removing tariffs between countries and regional groups in Africa and efforts to improve infrastructure will have limited impact on trade unless a range of policy induced barriers to trade, non-tariff barriers, are removed.”
He stated that efforts to integrate markets should extend to services as well as goods since access to competitively priced services was crucial to competitiveness.
“A complement to this program of domestic reform is increased access to G20 markets as envisaged under the duty free quota free commitment at the Hong Kong summit,” stated Devarajan.
Labels: SHANTA DEVARAJAN, World Bank
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World Bank to launch Africa development strategy
By Kabanda Chulu in Kitwe
Sun 23 Jan. 2011, 03:59 CAT
THE World Bank will this year launch a new strategy that has recognised that African ownership of the design and implementation of development programmes is necessary to foster economic growth and poverty reduction in their countries.The strategy, dubbed
‘Africa’s future and the World Bank support to it’, has been formulated with input and feedback from more than 2,000 Africans and others who participated in the eight-month series of face-to-face and consultations.
It is projected that the new strategy would outline how the World Bank plans to revise its approach and deepen its partnership with Africa in the next five years to 2016.
Commenting on the development, World Bank chief economist for Africa Shanta Devarajan stated that the response from stakeholders who participated in the process was overwhelming.
“The comments we received proved what we have known for some time … that Africans are best placed to determine their development needs and the interventions necessary to foster economic growth and poverty reduction in their countries. Based on the feedback from the consultations, the World Bank's engagement in support of Africa's development will henceforth be organised along the two pillars identified in the draft strategy, that is competitiveness and employment and secondly, vulnerability and resilience,” Devarajan stated.
“The foundation of work done along these two cross-cutting themes is governance and public sector capacity. The pillars and foundation recognise the current challenges, priorities and opportunities, including the onset of rapid economic growth and the potential for Africa to become a global growth pole.”
And World Bank vice-president for Africa Obiageli Ezekwesili stated that partnerships would be the main instrument for implementing the strategy.
“We need to leverage the private sector, development actors and most importantly, African society in designing development solutions going forward, and to ensure that our knowledge and financial resources are much more productive and effective,” she stated.
The World Bank Group has operations in 47 Sub-Saharan African countries where its funding is mainly provided through the International Development Association (IDA) the Bank's fund for the world's 79 poorest countries and the International Finance Corporation (IFC), the Bank's private sector arm.
In 2010, the World Bank Group committed a record US$11.5 billion in loans, near-zero-interest credits, grants, equity investments and guarantees to Africa.
Labels: SHANTA DEVARAJAN, World Bank
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Global financial crisis to hit Africa the hardest - World Bank
Written by Chiwoyu Sinyangwe
Thursday, April 23, 2009 8:45:05 PM
AFRICA will be the hardest hit by the effects of the current global financial crisis with 700 thousand newly born babies expected not to reach their first birthday, a World Bank senior official said Wednesday.
And World Bank vice-president for Africa Obiageli Ezekwesili has insisted that developing countries like Zambia should maintain open-market policies despite the current global financial crisis, saying recent robust growth on the market has been driven by liberalism.
During a briefing ahead of this yearÕs World Bank/IMF Spring Meetings, World Bank chief economist for Africa region Shanta Devarajan also warned the social impact of the global financial meltdown on the continent might be exacerbated as developed countries were likely to become more averse to give more aid.
And Ezekwesili warned that Africa should not move away from market driven policies which had been behind the recent strong economic results for the continent.
Ezekwesili also said foreign aid to Africa was this year going to decrease as most donor countries continued to battle to become insular.
ÒThere is a likelyhood of serious development disaster if the countries undo market reforms due to populist pressure to move in reverse gear,Ó Ezekwesili said. ÒCountries need to continue with the market reforms because it is those reforms that have been driving growth on the continent in recent years.Ó
She also said the collapse in the economic growth on the continent might lead to political and social instability especially among volatile countries on the continent.
Ezekwesili also warned that with the collapse of the Balance of Payment (BoP) support, most African countries might face challenges financing their budgets.
ÒWe will continue to work with the Fund (International Monetary Fund) to find ways of mitigating that effect,Ó she said. Ò. . .The assistance of the Bank to Africa through the International Development Association (IDA) is by the end of this year going to increase from the targeted US $6.8 billion to over US $7 billion.Ó
The Zambian team to this yearÕs Spring meeting has been led by the finance minister Dr Situmbeko Musokotwane.
Labels: GREAT DEPRESSION II, OBIAGELI EZEKWELISI, SHANTA DEVARAJAN, World Bank
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