The African The African Governance Governance Report IIReport II

Outline of the Outline of the presentationpresentation

• Objectives of the African Objectives of the African Governance Report (AGR)Governance Report (AGR)

• Unique Methodology Unique Methodology • Main findings of AGR II Main findings of AGR II • The Way Forward The Way Forward

Objectives of the AGR Objectives of the AGR Project Project

• To monitor and assess the progress To monitor and assess the progress African countries are making on African countries are making on democracy and good governance;democracy and good governance;

• To identify and showcase good To identify and showcase good practices on governance as a means of practices on governance as a means of promoting new governance norms and promoting new governance norms and culture in Africa;culture in Africa;

• To give voice and power to the African To give voice and power to the African people in their perceptions and views people in their perceptions and views on governance in their countries and on governance in their countries and the continent; the continent;

Objectives of the AGR Project Objectives of the AGR Project (Contd’)(Contd’)

• To improve the capacity of national To improve the capacity of national institutions in conducting governance institutions in conducting governance research and analyses; research and analyses;

• To identify capacity gaps in governance To identify capacity gaps in governance institutions in Africa; institutions in Africa;

• To make appropriate policy To make appropriate policy recommendations and interventions at recommendations and interventions at improving governance in Africa improving governance in Africa

Methodology of AGRMethodology of AGR

The AGR has a unique The AGR has a unique methodology which combines methodology which combines three research instruments; three research instruments;

• Expert Panel Survey Expert Panel Survey • Household Survey Household Survey • Desk ResearchDesk Research

Methodology ofMethodology of AGR AGR

Uniqueness of the Production Uniqueness of the Production Process:Process:

• Involvement of national research Involvement of national research

institutions in the production of national institutions in the production of national country reports;country reports;

• Stakeholders consultation in the Stakeholders consultation in the production of national country reports- production of national country reports- methodology and validations workshops methodology and validations workshops organised; organised;

AGR IIAGR II• AGR II covers 35 African countries;AGR II covers 35 African countries;• Eight chapters in the report;Eight chapters in the report; Political governancePolitical governance Economic Governance and Public Financial Economic Governance and Public Financial

management;management; Private sector dev. And corporate governance; Private sector dev. And corporate governance; Institutional checks and balances;Institutional checks and balances; Effectiveness and Accountability of the Effectiveness and Accountability of the

Executive;Executive; Human Rights and the Rule of Law;Human Rights and the Rule of Law; Corruption in Africa;Corruption in Africa; Capacity Development Capacity Development

• English edition of the report English edition of the report published by Oxford Press published by Oxford Press

Main findings of AGR II Main findings of AGR II

• Main MessageMain Message: Margin Progress on : Margin Progress on governance in Africa, of 2% improvement on governance in Africa, of 2% improvement on the 2005 study (AGR I);the 2005 study (AGR I);

Progress on political governance is mixed; Progress on political governance is mixed; Human rights and the rule slightly improve Human rights and the rule slightly improve

in Africa of 2% and 3% respectively; in Africa of 2% and 3% respectively; African economies are better managed;African economies are better managed; ‘‘Big man’ syndrome gradually recedes in Big man’ syndrome gradually recedes in

Africa; Africa; Corruption remains a major challenge in Corruption remains a major challenge in

Africa;Africa; Capacity deficits continue to plague Capacity deficits continue to plague

governance in Africa. governance in Africa.

Main finding of AGR IIMain finding of AGR II

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Main findings of AGR II:Main findings of AGR II: Political GovernancePolitical Governance

• Multiparty system flourishes, but with Multiparty system flourishes, but with poor institutionalisation; poor institutionalisation;

• Opposition parties still muzzled in Opposition parties still muzzled in many African countries with unequal many African countries with unequal access to electoral resources; access to electoral resources;

• Elections are more regular (54 Elections are more regular (54 elections in 2005-2007), but badly elections in 2005-2007), but badly flawed in some countries; flawed in some countries;

• Electoral commissions lack the Electoral commissions lack the requisite autonomy and resources in requisite autonomy and resources in many African countries; many African countries;

• Respect for constitutionalism Respect for constitutionalism remains a major challenge in remains a major challenge in Africa as constitutions are Africa as constitutions are amended and tenure of regimes amended and tenure of regimes elongated against popular wishes;elongated against popular wishes;

• Social inclusiveness on the Social inclusiveness on the increase as minorities and women increase as minorities and women are included in governance; are included in governance;

• Democracy is “work in progress” Democracy is “work in progress” in Africa in Africa

Main findings of AGR II:Main findings of AGR II:Expert Opinion on the Expert Opinion on the

credibility of the electoral credibility of the electoral systemsystem

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Acceptable or largely acceptable to all political parties Marginally acceptable to all political parties

Lagely unacceptable or totally unacceptable to all political parties

Main findings of AGR II:Main findings of AGR II: Economic Governance & Public Economic Governance & Public

Financial ManagementFinancial Management • Marked improvements in economic Marked improvements in economic

performance (from 3.4% in 1998-2002 performance (from 3.4% in 1998-2002 to over 5.5% in 2006-2007) to over 5.5% in 2006-2007)

• Notable improvements in public Notable improvements in public financial managementfinancial management

• Better revenue mobilisation to finance Better revenue mobilisation to finance economic development agenda; economic development agenda;

• Progress in creating macroeconomic Progress in creating macroeconomic environment conducive to private-sector environment conducive to private-sector development and investment promotiondevelopment and investment promotion

• Challenges;Challenges;Economic growth in Africa has not Economic growth in Africa has not

been broad-based and inclusive;been broad-based and inclusive;

In Sub-Saharan Africa, In Sub-Saharan Africa, unemployment rates remain high, unemployment rates remain high, the number of people living in the number of people living in extreme poverty is on the increase extreme poverty is on the increase and progress in reducing under-and progress in reducing under-five infant mortality rates is slow;five infant mortality rates is slow;

Transparency and accountability Transparency and accountability in public finance still a challengein public finance still a challenge

Main findings of AGR II:Main findings of AGR II: Private Sector Development Private Sector Development & Corporate Governance& Corporate Governance

• Significant reduction in administrative Significant reduction in administrative burdens on businesses, but the cost of burdens on businesses, but the cost of doing business is still high compared doing business is still high compared with other regions of the world;with other regions of the world;

• More countries are adopting More countries are adopting regulations and institutions to enforce regulations and institutions to enforce contracts and protect property rights;contracts and protect property rights;

• More incentives to attract foreign More incentives to attract foreign direct investment (FDI), but less for direct investment (FDI), but less for domestic investments domestic investments

• Lack of access to finance, land Lack of access to finance, land and quality infrastructure and quality infrastructure impedes private sector impedes private sector development; development;

• Corporate governance has not Corporate governance has not advanced much in Africa, except advanced much in Africa, except for countries in Southern Africa for countries in Southern Africa

Main findings of AGR II:Main findings of AGR II: Expert Opinion on Impact Expert Opinion on Impact

of Tax Incentives on of Tax Incentives on Foreign Investment Foreign Investment

Main findings of AGR II:Main findings of AGR II: Checks and BalancesChecks and Balances

• Separation of powers gradually takes root in Separation of powers gradually takes root in Africa;Africa;

• Phenomenon of “Big man” recedes in Africa, Phenomenon of “Big man” recedes in Africa, although executive dominance still persists;although executive dominance still persists;

• Non-state actors (CSOs and the Media) Non-state actors (CSOs and the Media) increasingly check the powers of the increasingly check the powers of the executive and government in many countries;executive and government in many countries;

• The parliament remains weak in many The parliament remains weak in many African countries;African countries;

• People’s empowerment and vigilance People’s empowerment and vigilance constitute the most effective check on state constitute the most effective check on state powerpower

Main findings of AGR II:Main findings of AGR II: Expert Opinion on Expert Opinion on

legislative control of the legislative control of the executiveexecutive

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Always or usually effectivein holding the Executive accountable Occasionally effective in holding the Executive accountable

Rarely or never effective in holding the Executive accountable

Main findings of AGR II:Main findings of AGR II: Institutional Effectiveness & Institutional Effectiveness &

Accountability of the ExecutiveAccountability of the Executive • Quality of the executive still low in many Quality of the executive still low in many

African countries; African countries;

• Institutional capacity of the public Institutional capacity of the public bureaucracy remains weak;bureaucracy remains weak;

• Decentralisation brings little gains in service Decentralisation brings little gains in service delivery at the local level in Africa; delivery at the local level in Africa;

• Access to basic services of quality education, Access to basic services of quality education, health and water supply remains a major health and water supply remains a major challenge in Sub-Saharan Africa; challenge in Sub-Saharan Africa;

• Need to improve the transparency and Need to improve the transparency and

accountability of the Executive; accountability of the Executive;

• Progress in the fight against HIV/AIDS, but Progress in the fight against HIV/AIDS, but scaled up efforts requiredscaled up efforts required

Main findings of AGR II:Main findings of AGR II: Adequateness of government Adequateness of government

services to the needs of the peopleservices to the needs of the people

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Fully or moderately responds to basic needs of the community in an efficient manner

Fairly responds to basic needs of the community in an efficient manner

Rarely or does not respond to the basic needs of the community in an efficient manner

Main findings of AGR II:Main findings of AGR II: Human Rights & the Rule of Human Rights & the Rule of

LawLaw• African countries sign up to Human rights African countries sign up to Human rights

treaties and conventions, but treaties and conventions, but implementation and enforcement remain a implementation and enforcement remain a challengechallenge; ;

• Poor civil society monitoring and reporting Poor civil society monitoring and reporting of human rights violations in Africa; of human rights violations in Africa;

• Rights of the child and women still not Rights of the child and women still not adequately protected;adequately protected;

• Greater institutionalisation of human Greater institutionalisation of human rights machineries needed;rights machineries needed;

• Need for deepening human rights culture Need for deepening human rights culture in Africain Africa

Main findings of AGR II:Main findings of AGR II: Expert Opinion on the Expert Opinion on the

Effectiveness of Watchdog Effectiveness of Watchdog OrganisationsOrganisations

Expert opinion on effectiveness of watchdog organisations

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Fully or largely effective in promoting the protection of citizens' rights

Sometimes effective in promoting the protection of citizens' rights

Rarely effective or ineffective in promoting the protection of citizens' rights

Main findings of AGR II:Main findings of AGR II: Corruption in Africa Corruption in Africa

• Corruption constitutes the single most Corruption constitutes the single most important challenge to development in important challenge to development in Africa; Africa;

• The general perception of the people The general perception of the people from the survey is that all governance from the survey is that all governance institutions are corrupt in Africa-institutions are corrupt in Africa-executive, parliament, judiciary, civil executive, parliament, judiciary, civil service, and even civil society, although service, and even civil society, although in varying degrees; in varying degrees;

• Many African countries have mounted Many African countries have mounted remarkable anti-corruption efforts;remarkable anti-corruption efforts;

• Global initiatives reinforce Africa’s fight Global initiatives reinforce Africa’s fight against corruption against corruption

• Little progress made in asset Little progress made in asset repatriation from Western repatriation from Western countries countries

• Anti-corruption agenda needs to Anti-corruption agenda needs to be scaled upbe scaled up

Main findings of AGR II:Main findings of AGR II: Expert Opinion on Corruption Expert Opinion on Corruption

in the Executivein the Executive Fairly or completelycorrupt

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Main findings of AGR II:Main findings of AGR II: Institutional Capacity Building Institutional Capacity Building

for Governancefor Governance • Capacity building is more than a technical Capacity building is more than a technical

exercise, but should be a people driven exercise, but should be a people driven agenda; agenda;

• Most governance institutions in Africa have Most governance institutions in Africa have serious capacity deficits;serious capacity deficits;

• A congenial political and economic A congenial political and economic environment is central to capacity environment is central to capacity development in Africa;development in Africa;

• Investment in quality education including Investment in quality education including

tertiary education is germane to human tertiary education is germane to human capacity development in Africa;capacity development in Africa;

• Arrest of brain drain and human capital Arrest of brain drain and human capital retention is central to a prosperous future for retention is central to a prosperous future for Africa. Africa.

The Way ForwardThe Way Forward

• Need to implement key policy Need to implement key policy recommendations from AGR II at the recommendations from AGR II at the regional and country levels regional and country levels

• ECA can assist through advisory services ECA can assist through advisory services and technical support to Member States and technical support to Member States

• AGR III to be released in 2011 will be on AGR III to be released in 2011 will be on a thematic basis, on the theme: a thematic basis, on the theme: Elections Elections and the Management of Diversity in Africaand the Management of Diversity in Africa

The African The African Governance Report Governance Report

IIII

Thank you for your kind Thank you for your kind attention attention