WORLD BANK PRESIDENT JAMES WOLFENSOHN RECENTLY VISITED FOUR AFRICAN COUNTRIES - SENEGAL, GHANA, MOZAMBIQUE AND SOUTH AFRICA. HIS TOUR, THE SECOND SINCE HE TOOK OFFICE IN 1995, WAS AIMED AT FINDING WAYS OF BOOSTING PRIVATE INVESTMENT ON THE CONTINENT.21-Feb-97MANY ECONOMISTS SAY THAT AFRICA CONTINUES TO LAG FAR BEHIND OTHER CONTINENTS IN ECONOMOIC GROWTH AND DEVELOPMENT. THE EXPERTS NOTE THAT BY ALMOST EVERY ECONOMIC AND SOCIAL INDICATOR THE CONTINENT AS A WHOLE HAS DETERIORATED IN ALL ESSENTIAL AREAS OF DEVELOPMENT. BUT, THE WORLD BANK SAYS WHILE AFRICA STILL FACES NUMEROUS DEVELOPMENT PROBLEMS, THERE HAS BEEN REAL ECONOMIC PROGRESS IN THE PAST TWO YEARS. THE BANK'S VICE PRESIDENT FOR AFRICA CALLISTO MODAVO SAYS HE IS ENCOURAGED BY WHAT HE HAS SEEN IN AFRICA.
THE IMPRESSION I HAVE IS THAT THERE IS REALLY GOOD NEWS COMING OUT OF AFRICA. WE ARE BEGINNING TO SEE GROWTH RATES PICKING UP ON THE CONTINENT. IT WAS THREE POINT FOUR PERCENT IN 1995 AND IT WAS FIVE POINT SIX PERCENT IN 1996. SO WE SEE REALLY A TURN AROUND. OF COURSE SENEGAL GHANA AND MOZAMBIQUE ARE COUNTRIES THAT HAVE BEEN REFORMING THEIR ECONOMIES FOR A WHILE AND ARE GROWING AT THESE RATES. SOUTH AFRICA ON THE OTHER HAND IS A POWERFUL AND LARGE ECONOMY AND IF IT CAN GROW PROSPEROUSLY, IT WILL CLEARLY BE ABLE TO CARRY A LOT OF AFRICA WITH IT AND THAT WILL BE GOOD NEWS FOR AFRICA.
THE WORLD BANK SAYS AFRICA IS ITS TOP PRIORITY AND THAT IT WANTS TO STRENGTHEN ITS PARTNERSHIP WITH THE REGION. THE BANK SAYS IT HAS THE FUNDS TO FINANCE WHAT IT CALLS "SATISFACTORY DEVELOPMENT PROJECTS" IN AFRICA.
MR. MODAVO SAYS THE FOUR COUNTRIES HE RECENTLY VISITED ARE QUALIFIED TO GET THE BANK'S RESOURCES.
WE HAVE BEEN COMMITTING IN AFRICA ABOUT TWO POINT SEVEN TO TWO POINT EIGHT BILLION DOLLARS A YEAR FINANCING SOMETHING LIKE 55-56 PROJECTS A YEAR. AND OBVIOUSLY WE WOULD LIKE TO BUILD A STRONGER PIPELINE OF PROJECTS SO THAT WE CAN CONTINUE TO PROVIDE THE RESOURCES IN SUPPORT OF AFRICA OF THIS ORDER OF MAGNITUDE. AND OUR DISCUSSION IN ALL FOUR COUNTRIES CLEARLY INDICATED THAT IT SHOULD BE POSSIBLE TO GENERATE SOME PROJECTS THAT CAN UTILIZE THE RESOURCES THAT THE WORLD BANK HAS EFFECTIVELY AND FOR THE BENEFIT OF THE AVERAGE PERSON IN AFRICA.
BUT THE WORLD BANK STRESSES THAT THE AVAILABILITY OF ITS FUNDS DEPENDS, AMONG OTHER THINGS, ON THE ABILITY OF AFRICAN GOVERNMENTS TO FIGHT CORRUPTION. THE BANK'S PRESIDENT JAMES WOLFENSOHN HAS MADE IT CLEAR THAT HE WILL PULL NO PUNCHES ON THIS ISSUE, WHICH HE CALLED "ONE OF THE GREATEST INHIBITORS TO INVESTORS." MR. MODAVO OUTLINES THE BANK'S PROGRAM TO DEAL WITH CORRUPTION.
WHENEVER WE COME ACROSS A SITUATION IN WHICH IN FACT THERE IS ABUSE OF RESOURCES, WE, WITHOUT HESITATION, CANCEL THE AMOUNT OF FUNDS THAT ARE ASSOCIATED WITH THOSE ACTIVITIES. WE ARE INTERESTED TO ENSURE THAT INDEED THE COUNTRIES THEMSELVES HAVE POLICIES AND INSTITUTIONAL ARRANGEMENTS AND REGULATIONS THAT PROMOTE THE EFFECTIVE AND TRANSPARENT UTILIZATION OF RESOURCES. AND WE HAVE BEEN WORKING VERY ACTIVELY WITH DEVELOPED COUNTRIES TO ENSURE THAT REGULATIONS ARE PUT IN PLACE THAT WILL DISCOURAGE CONTRACTORS AND OTHERS WHO ARE DETERMINED TO CORRUPT.
THE QUESTION OF DEBT RELIEF HAS BEEN ONE OF THE MAJOR CONCERNS OF AFRICAN COUNTRIES. WORLD BANK FIGURES SHOW THAT SUB-SAHARAN AFRICAN COUNTRIES OWE ABOUT 226 BILLION DOLLARS IN EXTERNAL DEBT. WHAT IS THE BANK DOING ABOUT THIS? MR. MODAVO SAYS THE BANK'S PRESIDENT IS WORKING ON A PLAN THAT WOULD PROVIDE DEBT RELIEF TO COUNTRIES THAT ARE REFORMING THEIR ECONOMIES.
MR. WOLFENSOHN HAS BEEN AT THE FOREFRONT OF INTRODUCING AN INITIATIVE FOR THE HIGHLY INDEBTED POOR COUNTRIES WHERE FOR THOSE COUNTRIES THAT ARE PURSUING ECONOMIC REFORMS WITH DEBTS THAT ARE SO SEVERE THAT THEY RESTRICT THEIR ABILITY TO INVEST AND TO CARRY FORWARD ECONOMIC REFORM TO BENEFIT THEIR PEOPLE THAT THESE COUNTRIES WOULD BE HELD TO REDUCE THEIR DEBTS LEVELS TO SUSTAINABLE LEVELS. AND INDEED THIS INITIATIVE IS GETTING UNDERWAY AND OUR EXPECTATION IS THAT IN THE FIRST GROUP OF SIX COUNTRIES OR SO, A MAJORITY OF THEM WOULD BE FROM SUB SAHARAN AFRICA.
MR. MODAVO SAYS UGANDA IS CERTAINLY HIGH ON THE LIST OF THOSE COUNTRIES LIKELY TO BENEFIT FROM THIS INITIATIVE.
DEVELOPMENT EXPERTS ARGUE THAT WITH THE ATTENTION OF THE INDUSTRIALIZED WORLD FOCUSING ON EASTERN EUROPE AND THE FORMER SOVIET UNION, THE OUTLOOK FOR AFRICA IS NOT ENCOURAGING. BUT MR. MODAVO SAYS HE IS OPTIMISTIC ABOUT AFRICA'S FUTURE AND HE NOTES MOST OF THE CONTINENT'S NEW LEADERS ARE SERIOUS ABOUT THE WELFARE OF THEIR SOCIETIES.