African Ministers Mull Government’s Role in Development | Africa | English.
Ethiopia’s prime minister says Africa needs a new development plan
in which the state replaces the private sector as the main engine of
growth. The shadow of recent uprisings hung over a conference of African
finance ministers, where officials talked about ways to satisfy
Africa's growing population of restless youth.
In his keynote
address, Prime Minister Meles Zenawi said decades of experience with
what he called the neo-liberal paradigm of growth have failed to bring
prosperity to Africa. He said such policies have led to a widening of
the income gap, and urged Africa to reject western prescriptions for
private sector-led development.
"Their three-decades long
campaign against state activities has not resulted in sustained growth
and economic transformation. It has failed to do so because, among other
things, its restless campaign to enfeeble the African state and its
role in the economy has not succeeded in overcoming the environment of
unproductive and pervasive rent seeking," he said.
Mr. Meles said
it is time for the public sector to take the lead role in developing an
African infrastructure that can spur growth.
"The state has to
play the leading and vital role in the sector. Three decades of waiting
for the private sector to address our infrastructure gap has only served
to widen the gap. We cannot wait any longer," he said.
Speaking
at the same podium, African Development Bank President Donald Kaberuka
cautioned ministers to ensure their policies address the aspirations of
all rungs of society. He said recent events in North Africa are an
urgent reminder of the challenges of inclusive growth, job creation and
opportunities for the young.
"We all know very well that economic
growth that is not inclusive, that leaves some behind, as we can see
again from North Africa, is neither economically, nor politically
sustainable and will only lead to frustrations and social explosion,"
Kaberuka said.
Kaberuka said economic growth projections for
North Africa are being revised downward because economies in the region
are still reeling in the aftermath of the recent uprisings. But he said
the bank is preparing to make huge financial commitments to help
recovering economies such as Tunisia and Egypt.
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