Addis Ababa, Ethiopia, May 10, 2018 (ECA) – The African Governance Report (AGR-V) will be launched Sunday afternoon at the United Nations Conference Centre in Addis Ababa, says Francis Ikome, Chief of Governance in the Macroeconomic Policy Division in the Economic Commission for Africa (ECA).
The report is titled 'Natural Resource Governance and Domestic Revenue Mobilization for Structural Transformation'.
AGR-V examines efforts to improve the governance of Africa's abundant natural resources, with particular emphasis on strengthening natural resource governance institutions and frameworks for the enhancement of domestic revenue mobilization and engendering economic diversification and structural transformation on the continent.
The report addresses four broad issues; resource-rich African countries' inability to transform their economies; the institutions for improving the development impact of Africa's natural resources; raising domestic revenue in Africa; and development planning and African policy outcomes.
"These issues are critical for Africa's transformation. In particular, the report argues that domestic revenue mobilization must be strengthened because it can be a powerful tool for achieving national ownership of development strategies as well as deepening participation of domestic firms in regional and global value chains, and for boosting the state's capacity to provide public goods and services," said Mr. Ikome.
The quality of institutions, he said, is a deciding factor on whether natural resource wealth becomes a blessing or a curse for inclusive and transformational development, peace and security, deeper democracy and environmental protection.
"When institutions collapse or malfunction, the consequence may be disorder for our countries hence the report is a must-have for our policymakers and other stakeholders," adds Mr. Ikome.
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The report says Africa has been slow to convert its natural resources endowments to tangible development outcomes because of weaknesses in governance and the wider capacities of the African state.
A capable state with legitimacy and political will is needed to minimize harm from exploiting resources and to maximize positive development outcomes, it opines.
It should use regulatory, planning, and revenue and expenditure tools, as well as industrial policies, the report notes, adding good natural resource governance required that institutions -formal and informal -be mandated and capacitated to manage resources efficiently and to formulate, implement and enforce sound policies and regulations.
Mr. Ikome said institutions should be held accountable for their decisions and must ensure that decision-making processes are transparent and widely participatory.
Mr. Abdalla Hamdok, the ECA's Deputy Executive Secretary and Chief Economist, will participate in the meeting that will discuss the findings of the AGR-V and its key recommendations.
The African Governance Report, the most comprehensive report on governance in Africa, assesses and monitors the progress of African countries on governance, identifies capacity gaps in governance institutions and proposes policies and strategic interventions to improve governance on the continent.
