Strong Institutions - A Key for a Transformed Eastern Africa

9 February 2016

The 20th session of the Intergovernmental Committee of Experts (ICE) of the Eastern Africa Office of the UN Economic Commission for Africa (ECA) organised in Nairobi from 8 to 11 February 2016 discusses key issues and challenges pertaining to the economic and social development of the region.

In the last decade or so, Africa has achieved significant growth levels, if measured in GDP terms. Eastern Africa in particular has been one of the best performing regions on the continent. The recent dramatic fall of commodity prices has exposed the limitations of a growth path based on high commodity prices. This is particularly so for resource-rich exporting countries on the continent. Antonio Pedro, Director of ECA in Eastern Africa says that fortunately, the growth story in Eastern Africa cannot be explained solely on high commodity prices.

"Instead, rising consumer spending driven by demographics, rapid urbanisation and a burgeoning middle-class with increasing purchasing power, good performing services sector, and growing investments in infrastructure have been important growth drivers in many of our countries", says Pedro.

But, the overall state of the global economy with China's slowing economy playing an important role will certainly have an impact on the region's growth prospects. Pedro explains that Eastern Africa is therefore at the crossroads of deciding which growth model(s) will reduce its exposure to external shocks and generate resilient, broad-based development and structural transformation in the region.

The theme of the meeting is: 'Institutions, Decentralisation and Structural Transformation in Eastern Africa.'

The ICE meeting brings together senior government officials from fourteen countries served by the Office as well as representatives of Regional Economic Communities, development partners, research centres, media practitioners, private sector and civil society organisations operating in the region. Among the topics to be discussed, the meeting examines the role of institutions in promoting structural transformation and equitable growth in Eastern Africa. The question to ask is which foundational factors will deliver such transformation?

No doubt that institutions are fundamental to transformational change and to building a cohesive, resilient, competitive and transformed region. This does not only mean organizational structures, but also about the formal rules (constitutions, laws, property rights, contracts, etc.) and informal norms, customs, beliefs, traditions, routines, practices, and codes of conduct that govern political, social and economic interactions, shape behaviours, condition societal expectations, structure the design and the content of decisions, motivate change and determine development outcomes.

"Today, our region is in need of inclusive growth where no social category, gender or age is left behind," emphasizes Pedro. He added that this necessitates the creation of the necessary platforms and processes to ensure that we harness the full potential and creative energy of all of our citizens, including women and the youth. It is equally vital to tackle geographical inequality and inequity to build socially cohesive nations. Decentralisation is a prerequisite to achieving that. It is not just a linear process of power transfer from national to sub-national jurisdictions, but an effective instrument to empower local institutions as the main drivers of their own development.

Pedro states that in this new society, we may need to move away from heavily centralized societies to embrace development pathways where leaders and followers, the governed and the governor co-exist symbiotically in an ever dynamic ecosystem, glued by a shared vision of prosperity and a solid compact for transformational change.

"Therefore, discussing the nexus between institutions and decentralization processes and their role in promoting or hindering structural transformation in our region is timely", concludes Pedro.

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