The last decade witnessed the dawn of hope on the African continent. We had achieved the fastest growth rates since independence. Our efforts to build institutions and strengthen governance were beginning to pay off.
Many African countries were building credibility and sticking to prudent macroeconomic policies. Belief in a brighter future was spurred by global agreement on the Millennium Development Goals.
The current global financial crisis has changed that rosy outlook. One of the most perverse consequences of the slowdown, which originated in rich countries, has been a sudden and sharp increase in borrowing costs.
For many, capital markets are effectively closed, as investors flee to the perceived safety of advanced economies. Strangely, they are fleeing towards the geographic source of the problem, spurred by the promise of government guarantees and massive bail-outs.
In 2008 we debated whether developing countries could avoid the worst effects of the crisis and realise a beneficial 'decoupling' from global growth. Clearly they could not - and this year, as capital markets falter and trade flows wither, Africa faces the real danger of malignant decoupling, derailment and abandonment.
This is one of the reasons why - from an African point of view - a well-considered and globally coordinated response is vital. The challenge is to craft national responses that complement each other and sustain global growth and development.
This includes maintaining access to capital markets, improving trade balances and securing sufficient and effective donor aid. There is a need to ensure that the African Development Bank and other international financial institutions have the resources, instruments and will to support a strong counter-cyclical response on the continent. This will shield African infrastructure investment and social safety nets from becoming the ultimate victims of greed and excess in the North.
The G-20 is well placed to coordinate such responses, and build the political will that is required to implement them. We know that its membership is not universal. South Africa is the only African country at the G-20 table. This must be urgently corrected, including through representation of the African Union in the process.
However, Africa's approach should not be limited to lobbying for seats at the table. We must also act to ensure that Africa is able to make strong and critical contributions. In this context, we should think creatively about how economic and financial institutions on the continent can work to build a common Africa platform.
In the long term, the solution to the current crisis means building institutions that can enable concerted action and enhance global governance in order to facilitate balanced growth and development.
At its most recent annual meeting, the World Bank took the significant step of allocating a third chair for Sub-Saharan Africa on its Executive Board. Currently, Africa's representation at the Bank is constituted into Franco-phone and Anglo-phone blocs, with some significant countries (for instance Ghana) not participating in any African constituency.
Clearly there is much room for improvement, and the allocation of a third chair is an opportunity to realise greater voice for the continent if we are able to effectively re-organise ourselves.
It is encouraging that the G20 Leaders have agreed to further advance the reform of the Bretton Woods institutions in order to give greater voice to developing countries. Once again this calls for greater attention - not only to the size of Africa's voice - but also to the way we organise ourselves and the policy content that our voice articulates.
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Africa has a direct interest in strengthening the institutions at the centre of economic multilateralism. We should argue that global institutions be strengthened on the principles of mutual accountability, inclusiveness and ensuring that the imperative of legitimacy is balanced with the need for effective action.
If we allow the centrifugal force of economic nationalisms to triumph, the crisis will inevitably result in greater fragmentation. In the long run we will all lose. In the short run, the greatest burden will be borne by the poor and marginalised, particularly in Africa. On the other hand, if the crisis becomes an opportunity to reinvent global governance, so that balance growth and development can be realised, Africans have the world to gain.
Trevor Manuel is South Africa's finance minister. This column is drawn from his contribution to the pamphlet, "New Multilateralism," published by the Africa Progress Panel (APP).
