By Economic Commission for Africa
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Extra info for Transforming Africa: An Agenda for Action
He World Bank has adopted a Comprehensive Development Framework that takes a far more holistic view of economic reforms. 'The International Monetary Fund's Enhanced Structural Adjustment Facility has been changed into the Poverty Reduction and Growth Facility. Discussion of a new financial architecture is focusing on deepening financial reforms in emerging markets, as well as greater transparency and accountability by the multilateral financial institutions. The OECD, through its report, 'Shaping the 21st Century, the Contribution of Development Cooperation,' has reassessed the effectiveness of the Development Assistance Committee's help.
Consideration should be given to converting the World Bank's IDA window into a full grant facility. 'The World Bank's annual contribution to IDA could instead be used to fund a substantial foundation to support poverty alleviation strategies, such as microcredit. 29 30 1 New Global Compact with Africa While Africa is on the right path towards debt relief, we must now ensure that the fruits of relief are available as soon as possible. And we must watch out for two problems: aid levels must be high enough to ensure that debt workouts and development can both be sustained; and we must also be on guard against deteriorating terms of trade that would trigger the need for additional emergency support.
But we do produce. And we even have the ability to produce for export. But the world is hostile to our agriculture. 'The terms of trade for our products have deteriorated markedly in the last decades. If they had not, our per capita income would be 50% higher than it is. For every unit of currency that has flowed into Sub-Saharan Africa as capital inflow, 106% flows out. 'This outflow is made up of 51%in terms of trade losses, 25% in debt servicing and profit remittances and 30% in leakages into reserves build-up and capital outflows.
Transforming Africa: An Agenda for Action by Economic Commission for Africa