DIALOGUE OF THE EXECUTIVE SECRETARIES WITH THE SECOND COMMITTEE

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DIALOGUE OF THE EXECUTIVE SECRETARIES WITH THE SECOND DIALOGUE OF THE EXECUTIVE SECRETARIES WITH THE SECOND COMMITTEECOMMITTEE

THE MEANS OF IMPLEMENTATION IN SUPPORT THE MEANS OF IMPLEMENTATION IN SUPPORT OF THE POST-2015 DEVELOPMENT AGENDA: OF THE POST-2015 DEVELOPMENT AGENDA:

ECA’S PERSPECTIVESECA’S PERSPECTIVES

PRESENTATION BY PRESENTATION BY

ABDALLA HAMDOKABDALLA HAMDOK

DEPUTY EXECUTIVE SECRETARY OF ECADEPUTY EXECUTIVE SECRETARY OF ECA

5 NOVEMBER 20145 NOVEMBER 2014

NEW YORKNEW YORK1

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Structure of PresentationStructure of Presentation

I)I) Context: A Rising Africa and the Post-2015 Development AgendaContext: A Rising Africa and the Post-2015 Development Agenda

II) Regional and sub-regional inter-governmental bodies’ contribution to II) Regional and sub-regional inter-governmental bodies’ contribution to different means of implementationdifferent means of implementation

III) Strengthening national implementation capabilities through regional III) Strengthening national implementation capabilities through regional initiatives: focus on the CAP and the 2015 accountability framework initiatives: focus on the CAP and the 2015 accountability framework (AF)(AF)

IV) Contribution of Regional the Commissions to Strengthening the IV) Contribution of Regional the Commissions to Strengthening the Implementation capacities for the post-2015 Development Agenda: Implementation capacities for the post-2015 Development Agenda: An ECA perspectiveAn ECA perspective

V) ConclusionV) Conclusion

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Context: A Rising Context: A Rising Africa and the Africa and the post-2015 Development Agendapost-2015 Development Agenda

• The crafting of the 2015 global development agenda comes at The crafting of the 2015 global development agenda comes at a time when the continent has continued to make great a time when the continent has continued to make great strides in various economic, social and political spheres. strides in various economic, social and political spheres.

• In the economic sphere, Africa’s performance has been In the economic sphere, Africa’s performance has been remarkable, with average economic growth rates of about 5 remarkable, with average economic growth rates of about 5 per cent per annum, making it one of the fastest growing per cent per annum, making it one of the fastest growing regions in the world (see figure 1)regions in the world (see figure 1)

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Fig. 1:Africa’s growth relative to Fig. 1:Africa’s growth relative to other regionsother regions

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• Unlike in previous decades, the natural resources sector contributed to only Unlike in previous decades, the natural resources sector contributed to only about a quarter of Africa’s post-2000 economic expansionabout a quarter of Africa’s post-2000 economic expansion

Fig 2: Sectoral Share in GDPFig 2: Sectoral Share in GDP

0 5 10 15 20 25 30

Tourism

Utilities

Construction

Real Estate

Financial Intermediation

Public Administration

Other Services (e.g. Education, Health, Social Services)

Manufacturing

Transport and Telecommunication

Agriculture

Wholesale and Retail Trade

Resources

Series1

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• Three quarters of Africa’s growth was underpinned by Three quarters of Africa’s growth was underpinned by factors such as: improvements in governance and factors such as: improvements in governance and macroeconomic management; rapid urbanization and macroeconomic management; rapid urbanization and increasing domestic demand helped by a growing middle increasing domestic demand helped by a growing middle class; increasing investment and trade ties with traditional class; increasing investment and trade ties with traditional and new partners; expanding regional markets and and new partners; expanding regional markets and diversification of production and exports.diversification of production and exports.

• Remarkable improvements in business and regulatory Remarkable improvements in business and regulatory environments, accompanied by improvements in sentiments environments, accompanied by improvements in sentiments about doing business in the continent and higher FDI flows about doing business in the continent and higher FDI flows (see Figs 3).(see Figs 3).

• Increasingly, FDI rates of return are higher in Africa than in Increasingly, FDI rates of return are higher in Africa than in other regions, such as Asia and Latin America (see Fig 4)other regions, such as Asia and Latin America (see Fig 4)

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Fig. 3Fig. 3: : External flows to Africa (per billion External flows to Africa (per billion dollars)dollars)

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• On the social front, African countries have On the social front, African countries have made significant strides in human made significant strides in human development (see Fig 5).development (see Fig 5).

• Africa’s youthful population and emerging Africa’s youthful population and emerging middle class has been another socio-middle class has been another socio-economic factor underpinning its economic economic factor underpinning its economic growthgrowth

• On the political front, there has been On the political front, there has been remarkable improvements in governance, remarkable improvements in governance, accompanied by reductions in conflicts (Fig accompanied by reductions in conflicts (Fig 6) 6)

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Fig 5: Quality of Human life in Africa 1980 – Fig 5: Quality of Human life in Africa 1980 – 2012.2012.

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Fig. 6: Average Number of Armed ConflictsFig. 6: Average Number of Armed Conflicts

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

1990-1995 1996-2000 2001-2005 2006-2012

Africa

Asia

Europe

Middle East

Americas

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• Overall, Africa’s realities are fundamentally Overall, Africa’s realities are fundamentally different from what they were in the 1990s different from what they were in the 1990s when the MDGs were formulatedwhen the MDGs were formulated

• Africa is by every measure, a continent on Africa is by every measure, a continent on the rise and it is within this context that the the rise and it is within this context that the means of implementation in support of the means of implementation in support of the post-2015 development agenda should be post-2015 development agenda should be seen seen

• We examine the means of implementation in We examine the means of implementation in three main levels: 1)Sub-regional/regional three main levels: 1)Sub-regional/regional level 2) national, and 3)regional Commission level 2) national, and 3)regional Commission

role.role.

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Regional & Sub-regional Regional & Sub-regional Intergovernmental bodies’ Intergovernmental bodies’

contribution to different means contribution to different means of implementationof implementation

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Context: Context: A diverse number of regional and sub-regional A diverse number of regional and sub-regional

intergovernmental institutions are involved in advancing intergovernmental institutions are involved in advancing Africa’s development agenda.Africa’s development agenda.

The ECA is a part of this institutional landscape, alongside The ECA is a part of this institutional landscape, alongside the AU, AfDB and the RECs etc.the AU, AfDB and the RECs etc.

AU traditionally provides political leadership in regional AU traditionally provides political leadership in regional processes.processes.

As early as 2011, AU initiated action to define Africa’s As early as 2011, AU initiated action to define Africa’s priorities in a new framework that would be agreed upon to priorities in a new framework that would be agreed upon to succeed the MDGs – i.e. post-2015 development agenda.succeed the MDGs – i.e. post-2015 development agenda.

Pro-activeness informed by the lessons in formulating the Pro-activeness informed by the lessons in formulating the MDGs.MDGs.

Profound reflections and extensive consultations with Profound reflections and extensive consultations with stakeholders across the continent, including within the stakeholders across the continent, including within the RCM-Africa frameworkRCM-Africa framework

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Context continues: Context continues: The outcome was CAP on the post 2015 Development The outcome was CAP on the post 2015 Development

Agenda, adopted by African leaders in 2014Agenda, adopted by African leaders in 2014

The AU established an HLC to sensitize stakeholders and The AU established an HLC to sensitize stakeholders and oversee negotiations with with global actors for the oversee negotiations with with global actors for the accommodation of CAP in the post-2015 global accommodation of CAP in the post-2015 global Development Agenda.Development Agenda.

CAP post-2015 is accompanied by a Accountability CAP post-2015 is accompanied by a Accountability framework (AF), as well as the African Development Goals framework (AF), as well as the African Development Goals (ADGs).(ADGs).

The AF is meant to ensure that all stakeholders (internal The AF is meant to ensure that all stakeholders (internal and external) are committed to the implementation, as well and external) are committed to the implementation, as well as ready to account for their actions.as ready to account for their actions.

The six Pillars of CAP post-2015 and its AF constitute a The six Pillars of CAP post-2015 and its AF constitute a useful framework to guide and monitor implementation at useful framework to guide and monitor implementation at national, sub-regional and regional levels national, sub-regional and regional levels

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The Six Pillars of the Common African The Six Pillars of the Common African Position (CAP): Position (CAP):

Structural Economic Transformation and Inclusive GrowthStructural Economic Transformation and Inclusive Growth

Science, Technology and InnovationScience, Technology and Innovation

People-Centered DevelopmentPeople-Centered Development

Environmental Sustainability, Natural Resources Environmental Sustainability, Natural Resources Management and Disaster Risk ManagementManagement and Disaster Risk Management

Peace and SecurityPeace and Security

Finance and PartnershipsFinance and Partnerships

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The CAP Accountability Framework (AF)The CAP Accountability Framework (AF)Country level: Country level:

Designation of specific Ministries to be charged with all Designation of specific Ministries to be charged with all supply-side data and informationsupply-side data and information

Establishment of strong liaison with NSOEstablishment of strong liaison with NSO Coordinating the preparation of all national reportsCoordinating the preparation of all national reports Ensuring all stakeholders honor their obligations under the AFEnsuring all stakeholders honor their obligations under the AF

Sub-regional level- RECsSub-regional level- RECs Monitoring the MDGs at sub-regional levelMonitoring the MDGs at sub-regional level Preparing sub-regional reports on their implementation for Preparing sub-regional reports on their implementation for

submission to meeting of Ministers for consolidationsubmission to meeting of Ministers for consolidation Full involvement/participation of sub-regional non-state Full involvement/participation of sub-regional non-state

actorsactors

Regional/Continental Level Regional/Continental Level Coordination and monitoring all actions being undertaken at Coordination and monitoring all actions being undertaken at

all levels in implementing CAP post-2015all levels in implementing CAP post-2015 Preparing comprehensive annual regional reports for Preparing comprehensive annual regional reports for

submission to the Assembly of heads of statesubmission to the Assembly of heads of state

International/Global LevelInternational/Global Level1717

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Strengthening National Strengthening National implementation capabilities implementation capabilities through Regional Initiativesthrough Regional Initiatives

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RCM and Africa’s post-2015 RCM and Africa’s post-2015 Development Agenda:Development Agenda:

The RCM for Africa has evolved to become an The RCM for Africa has evolved to become an important forum for engagement between the UN important forum for engagement between the UN and the AU to build coherence and promote joint and the AU to build coherence and promote joint activities.activities.

AU organs, RECs and the NEPAD Agency are active in AU organs, RECs and the NEPAD Agency are active in the work of RCM-Africa.the work of RCM-Africa.

The last RCM Africa session (March 2014) was The last RCM Africa session (March 2014) was organized alongside the Joint Annual Meetings of the organized alongside the Joint Annual Meetings of the ECA Conference of Ministers of Finance, Planning and ECA Conference of Ministers of Finance, Planning and Economic Development and the AU Conference of Economic Development and the AU Conference of Ministers of Economy and Finance.Ministers of Economy and Finance.

The last RCM session focused on promoting the The last RCM session focused on promoting the coherence and harmonization of UN support for the coherence and harmonization of UN support for the AU in response to Africa’s changing development AU in response to Africa’s changing development landscape. It considered the AU’s transformative landscape. It considered the AU’s transformative initiatives, including Agenda 2063.initiatives, including Agenda 2063.

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• Inclusive processes in formulation of Africa’s inputs into the Inclusive processes in formulation of Africa’s inputs into the post-2015 agenda was anchored on the desire for post-2015 agenda was anchored on the desire for transformation and provides a foundation for:transformation and provides a foundation for:

Enhancing Member States’ ownership/driving of the post-2015 Enhancing Member States’ ownership/driving of the post-2015 development agendadevelopment agenda

Generating requisite political will for implementation, anchored Generating requisite political will for implementation, anchored on the CAP/ADGs and the priorities defined in Agenda 2063on the CAP/ADGs and the priorities defined in Agenda 2063

Responding to emerging issues and gaps in implementation, Responding to emerging issues and gaps in implementation, particularly in the areas of data collection and management; particularly in the areas of data collection and management; accountability; domestic resources mobilizationaccountability; domestic resources mobilization

Data Collection and managementData Collection and management Building the capacity of national and regional statistical centers Building the capacity of national and regional statistical centers

for data collection, monitoring and accountability. for data collection, monitoring and accountability. Enhancing the flow of information between government Enhancing the flow of information between government

agenciesagencies Investing in ICT, Science and Technology. Investing in ICT, Science and Technology.

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Strengthening Accountability Mechanisms/Frameworks (AF)Strengthening Accountability Mechanisms/Frameworks (AF)

Entrenching good governance and effective institutions, including sound Entrenching good governance and effective institutions, including sound public financial management systems.public financial management systems.

Building on existing frameworks such as APRM, CAP/ADGs, African Building on existing frameworks such as APRM, CAP/ADGs, African Governance Charter, African Public Administration Charter to strengthen Governance Charter, African Public Administration Charter to strengthen national accountability systems national accountability systems

Adaptation of the APRM’s Eminent Persons’ Group for reporting at sub-Adaptation of the APRM’s Eminent Persons’ Group for reporting at sub-regional levelregional level

Financing: Improving DRM SystemsFinancing: Improving DRM Systems

• Africa’s DRMs potential is high (USD 520b in taxes; USD168b from Africa’s DRMs potential is high (USD 520b in taxes; USD168b from minerals/fuels; USD 400b national reserves in central banks; USD 40 b in minerals/fuels; USD 400b national reserves in central banks; USD 40 b in Diaspora Remittances; USD 10b annually in securitization; 1.2 trillion in Diaspora Remittances; USD 10b annually in securitization; 1.2 trillion in Stock capitalization; USD30 b in private equity.Stock capitalization; USD30 b in private equity.

• Improved tax collection systems, better negotiated contracts on minerals Improved tax collection systems, better negotiated contracts on minerals and reversing the tide of IFFs flows is critical for DRM.and reversing the tide of IFFs flows is critical for DRM.

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Contribution of regional Contribution of regional Commissions to strengthen Commissions to strengthen

implementation capacities: the implementation capacities: the role of ECArole of ECA

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Context: Context:

ECA is both part of the pan-African institutional landscape; and ECA is both part of the pan-African institutional landscape; and an integral part of the broader UN systeman integral part of the broader UN system

ECA’s programmatic work covers all the key areas identified in ECA’s programmatic work covers all the key areas identified in the six pillars of the CAP and its various divisions and units are the six pillars of the CAP and its various divisions and units are well-positioned to strengthen the implementation capacity of well-positioned to strengthen the implementation capacity of African countriesAfrican countries

ECA has also been actively involved in mandatory stakeholders ECA has also been actively involved in mandatory stakeholders consultations to develop regional positions on policy and consultations to develop regional positions on policy and institutional reforms on trade, economic integration, natural institutional reforms on trade, economic integration, natural resources management, and climate change. resources management, and climate change. Regional consultations for development of the CAP Post-2015/ADGs. Regional consultations for development of the CAP Post-2015/ADGs. HLC Secretariat within the AU and supported by technical partners such HLC Secretariat within the AU and supported by technical partners such

as ECA, UNDP, UNFPA and AfDB as ECA, UNDP, UNFPA and AfDB ECA report on Accountability Framework of CAP Post-2015;ECA report on Accountability Framework of CAP Post-2015;

Involvement in the PIDA processesInvolvement in the PIDA processes

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ECA support to the implementation of existing and new ECA support to the implementation of existing and new continental frameworks. continental frameworks. Articulation of AU Agenda 2063 and CAP Post-2015Articulation of AU Agenda 2063 and CAP Post-2015Consultations on the post-2015 Development Agenda and the post-Consultations on the post-2015 Development Agenda and the post-Rio+20 process culminating in adoption of Africa’s SDGs Rio+20 process culminating in adoption of Africa’s SDGs

Leveraging RCM-Africa as a platform for discussing Post- Leveraging RCM-Africa as a platform for discussing Post- 2015 Agenda and SDGs. 2015 Agenda and SDGs.

Work of Thematic clusters interventions at regional and Work of Thematic clusters interventions at regional and sub-regional levels aligned to the priorities of the AUC sub-regional levels aligned to the priorities of the AUC and RECs, including AU Agenda 2063 and CAP Post 2015 and RECs, including AU Agenda 2063 and CAP Post 2015 Development Agenda. Development Agenda.

ECA Divisions leverage a number of facilitative ECA Divisions leverage a number of facilitative mechanisms to advance issues related to among others: mechanisms to advance issues related to among others: financing; transfer of technology, climate change, financing; transfer of technology, climate change, capacity building; and trade and economic integration.capacity building; and trade and economic integration.

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Facilitative mechanisms used by Facilitative mechanisms used by ECAECA • Innovative Financing: Innovative Financing:

ECA as part of NEPAD Cooperating Partners’ Institutions ECA as part of NEPAD Cooperating Partners’ Institutions Committee (NPIC) comprising AUC, NPCA, ECA, AfDB and Committee (NPIC) comprising AUC, NPCA, ECA, AfDB and other regional banksother regional banks

Active involvement of ECA in the Dakar Summit on Active involvement of ECA in the Dakar Summit on infrastructure financing, which identified bankable projects infrastructure financing, which identified bankable projects within PIDA frameworkwithin PIDA framework

ECA work on the HLP on IFFs, which has created awareness ECA work on the HLP on IFFs, which has created awareness on the scale of IFFs in Africa on the scale of IFFs in Africa

ECA-led ADF-IX Consensus on innovative financing for AfricaECA-led ADF-IX Consensus on innovative financing for Africa

Transfer of technology Transfer of technology ECA’s support to member States on intellectual property protection, ECA’s support to member States on intellectual property protection,

commercialization of R&D outputs, acquisition of industrial commercialization of R&D outputs, acquisition of industrial technologies, and development of web/mobile-based e-commerce technologies, and development of web/mobile-based e-commerce platforms and geospatial mapping of resources. platforms and geospatial mapping of resources.

Research on technology transfer to meet the challenges of climate Research on technology transfer to meet the challenges of climate changes and for inclusive green growth and competitivenesschanges and for inclusive green growth and competitiveness

RCM-Africa through the Science and Technology cluster is RCM-Africa through the Science and Technology cluster is supporting the implementation of Africa’s Science and Technology supporting the implementation of Africa’s Science and Technology Consolidated Action plan Consolidated Action plan

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Facilitative mechanismsFacilitative mechanisms used by used by ECAECA Capacity BuildingCapacity Building

ECA’s Capacity Development Strategy for member states ECA’s Capacity Development Strategy for member states based on regional and global frameworksbased on regional and global frameworks

ECA support to RCM-Africa’s Ten Year Capacity building ECA support to RCM-Africa’s Ten Year Capacity building ProgrammeProgramme

Trade and economic integration: Trade and economic integration: Flagship reports such as ERA and ARIA (Regional Flagship reports such as ERA and ARIA (Regional

Integration Index) Integration Index) Policy advice through specialized centers such as ATPC, Policy advice through specialized centers such as ATPC,

AMDC, ACPC and the Land Policy Initiative AMDC, ACPC and the Land Policy Initiative

Support to regional infrastructure projects, including PIDASupport to regional infrastructure projects, including PIDA

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ConclusionConclusion•There is a new dawn in Africa as a region on the rise and increasingly gaining There is a new dawn in Africa as a region on the rise and increasingly gaining traction as a business destination of choicetraction as a business destination of choice

•The post-2015 development Agenda in Africa is anchored on African owned The post-2015 development Agenda in Africa is anchored on African owned frameworks, such as Agenda 2063; ADGs and CAPframeworks, such as Agenda 2063; ADGs and CAP

•There is recognition of the importance of an accountability framework (AF) to There is recognition of the importance of an accountability framework (AF) to cover various levels of accountability – national, sub-regional, regional and globalcover various levels of accountability – national, sub-regional, regional and global

•Financing of the post-2015 Development Agenda would require innovative Financing of the post-2015 Development Agenda would require innovative financing mechanisms, capable of tapping into domestic resources mobilisation – financing mechanisms, capable of tapping into domestic resources mobilisation – private equity, climate finance, new and existing partnerships; and arresting IFFsprivate equity, climate finance, new and existing partnerships; and arresting IFFs

•RCM-Africa, including ECA and the broader UN system will continue to provide RCM-Africa, including ECA and the broader UN system will continue to provide support to African development initiatives.support to African development initiatives.

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Thank You for your Thank You for your kind attentionkind attention