BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Wednesday, 12 February, 2003, 18:54 GMT
Africa's development plan
Touareg girl in Sub-Saharan Africa
Africa is one of the poorest regions of the world



The New Partnership for Africa's Development (Nepad) is an African-inspired plan for the development of the continent.

The new plan designed to tackle Africa's "marginalisation in the globalisation process" was one of the main items on the table for the G8 summit in Kananaskis, Canada in June 2002.

Africa's troubles
65% live on under $1 a day
40% do not attend primary school
28m have HIV/Aids
40% of wealth is held overseas
The project - the brainchild of the five African leaders - commits African countries to setting and policing standards of good governance across the continent, respecting human rights and working for peace and poverty reduction in return for increased aid, private investment and a reduction of trade barriers by rich countries.

The five heads of state - South African President Thabo Mbeki, President Bouteflika of Algeria, President Mubarak of Egypt, President Obasanjo of Nigeria and Senegalese President Abdoulaye Wade - presented the case to G8 leaders.

The $64bn question

The initiative was first presented to the G8 leaders at the Genoa summit in 2001 as the New African Initiative. It has since been revised and renamed Nepad.

The UK, Canada and France have been crusaders for the deal.

The African leaders are looking for an extra $64bn to fill an annual resource gap of 12% of Africa's GDP in order to achieve a 7% annual economic growth rate.

Some of this, they say, will come from better tax collection and increased domestic savings.

But the bulk will have to come from outside the continent.

They argue that Africa needs more debt reduction and aid in the short to medium term, and more private investment in the long term.

Trade row

African leaders also want a reduction in the subsidies paid by developed countries to their farmers and more market access for African produce.

But the farm bill signed off by American President George Bush in May 2002 has given many a cause for pessimism.

It will provide an extra $19bn a year in subsidies to American farmers - an increase of almost 80% over the next ten years.

Development campaigners complain that a direct result of rich country farm subsidies is that surplus agricultural goods are dumped on African markets at a heavily subsidised price against which African farmers cannot compete.

Encouraging independence

The future of Nepad, however, is not wholly dependent on cash promises from G8 leaders.

It is a long term strategy which aims to tackle the causes of negative perceptions of Africa - those which hinder development and discourage business investment in Africa.

There is, however, still a long way to go in developing a consensus among African countries on standards of governance - as the mixed African response to the elections in Zimbabwe demonstrated.

And until that is resolved, attracting private investment could be difficult.


Key stories

Aid debate

Africa's future

Analysis

PICTURE GALLERY

AUDIO VIDEO

TALKING POINT

FORUM
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


 E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes