Economic Development in Africa 2006: Doubling Aid - Making by United Nations

By United Nations

The 2006 document on financial improvement in Africa examines how the dedication by means of the overseas neighborhood to double reduction to Africa may well position the continent on a sustainable improvement direction. The document identifies the failings within the latest overseas reduction approach, and its vital message is that, if this dedication is to translate into huge savings in poverty and lasting profits in financial welfare, new considering is needed.

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Extra resources for Economic Development in Africa 2006: Doubling Aid - Making the ''Big Push'' Work

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24 One qualification to these specifications is that some bilateral aid may be developmental in nature but has been omitted from the proxy for development aid in the regressions. The results of separately identifying aid from the two donor groups are notable: average growth between 1980 and 2000 was raised by over one percentage point in those countries receiving an additional one percent of GDP in aid from the Nordic countries in the 1970s and 1980s, a result that was relatively robust to alternative specifications of the relationship.

A For example, Egypt, Kenya, Mauritius and Uganda moved to complete capital account liberalization by the end of the 1990s and in all except Kenya capital flight rose substantially compared with the 1980s. There is also evidence of substantial and volatile flows of capital, seeking arbitrage gains of the sort that contributed to the East Asian currency crisis of 1997, entering Kenya, Uganda and United Republic of Tanzania (Bhinda et al. 1999). For a discussion of capital account regimes in Africa, see Ndikumana (2003).

The NEPAD framework document, for example, suggests that Africa will need to fill an annual resource gap of $64 billion (equivalent to 12 per cent of GDP) and acknowledges that, despite a significant increase in domestic resources, most of the increase will have to come from abroad (Funke and Nsouli, 2003:16). 5 billion per annum in public expenditures until 2010. One-third of this would come from domestic Doubling Aid: Making the “Big Push” work 25 resources and $25 billion from aid (CFA, 2005).

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