Regional integration does not ensure production in value chains

By Renato Baumann, Co-ordinator, International Co-operation, IPEA, Brazil

Developing economies often face a common challenge: after a period of rapid growth they experience a slowdown in both growth and productivity, falling into what has come to be known as the ‘middle-income trap’. Signing preferential trade agreements and participating in global value chains are two common recommendations presented to countries facing the middle-income trap, and are often seen as intertwining processes. Moreover, regional integration is gaining momentum as an enabler of value chains. However, although regional movement of goods facilitated by regional integration might be necessary, it is not the only condition to ensure production in value chains.

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Nigeria’s border closure: Why it will not pay off

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By Léopold Ghins and Philipp Heinrigs, OECD Sahel and West Africa Club Secretariat

This blog is part of a series marking the upcoming 
19th International Economic Forum on Africa

Men offload rice at Bodija market, Ibadan, Nigeria. Flickr/IITA

It has been three months since Nigeria closed its land borders and to date there are few indications as to when they will open again. The country said it wants to reduce the smuggling of goods and stop illegal inflows of Asian rice and outflows of subsidised fuel. More fundamentally, Nigerian authorities justify the closure by the need to support the domestic agricultural sector and accelerate national productivity growth.

The closure is badly affecting livelihoods in local border economies. In Benin, communities in areas close to the Seme border near the sea, or further up north near the Owode border, largely depend on Nigerian markets for their sustenance. The sudden shutdown has caused thousands of smallholder farmers to lose their produce and default on credits. In the Dendi region (an area that spans across northern Benin, Niger and Nigeria), economic networks are strongly integrated across borders. Small traders that live on these networks have lost their principal sources of income. Continue reading

Get the plumbing right: Financial integration should support Africa’s trade integration


By Amadou Sy, Nonresident Senior Fellow, Brookings Institution and Advisor, African Department, IMF1

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

Africa-plumbingAfrican countries trade much more with countries outside the continent than with each other within the continent. According to the United Nations Economic Council for Africa, trade between African countries stands at about 16% of the continent’s total trade, the lowest intra-regional trade globally. Compare this with 19% intra-regional trade in Latin America and 51% in Asia.

Policies to reduce obstacles to intra-African trade have been a priority for African policy makers. After forging ahead with stronger trade integration within existing Regional Economic Communities (RECs), African policy makers took an additional step in 2018 with the Continental Free Trade Agreement (CFTA). Signed now by 44 African countries, the CFTA marks a milestone on the road towards a single continental market for goods and services. Continue reading

Africa’s integration: groundbreaking but not so new


By Sarah Lawan, Regional Co-operation Advisor, Networks, Partnerships and Gender Division, OECD Development Centre, and Rodrigo Deiana, Junior Policy Analyst, Europe, Middle East and Africa Unit, OECD Development Centre

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

Kwame Nkrumah speaking at the inaugural ceremony of the Organisation of African Unity Conference in Addis Ababa, Ethiopia, in 1963

As early as 1963, in the midst of independence movements, Kwame Nkrumah urged, “Africa must unite or perish!” The first president of Ghana pronounced this injunction at the founding meeting of the Organisation of African Unity (OAU) in Addis Ababa, Ethiopia.

The post-colonial thirst for “breaking with the old order and indigenising the direction of Africa’s economic development”led to the shaping of the African Economic Community (AEC), a pan-African single market. Africa reclaimed its leadership and ownership with the goal of promoting a self-sustained and self-reliant development trajectory.

2018 witnessed an acceleration of integration efforts with the landmark agreement on the African Continental Free Trade Area (AfCFTA) in Kigali on 21 March. So far, 49 African countries have signed the AfCFTA, which will be the world’s largest free trade area since the WTO’s creation. As the late Calestous Juma put it: “The continent’s regional integration is the most complex and elaborate effort of its kind ever mounted in human history.”2

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Strengthening Regional Agricultural Integration in West Africa

By John Staatz, Professor Emeritus, Dept. of Agricultural, Food and Resource Economics, Michigan State University

Photo credit: Ryan Vroegindewey

Soaring and volatile international food prices since 2007-08 have forced West African governments and their development partners to translate their long-standing rhetoric about support for West African agriculture into concrete programmes. Doing so effectively, however, has proven much more challenging than simply meeting the Comprehensive Africa Agriculture Development Programme (CAADP) goal of increasing the share of national budgets and donor funds dedicated to the agricultural sector. A recently released joint study by the Syngenta Foundation for Sustainable Agriculture (SFSA) and Michigan State University (MSU) draws lessons from such efforts over the past 10 years and suggests ways in which policies and programmes can be more effective in helping West Africa feed its young, burgeoning and increasingly urban population. Research by MSU, SFSA and West African scholars provides a number of crucial policy insights. Continue reading

Les frontières et les réseaux oubliés du développement

Par Laurent Bossard, Directeur, Secrétariat du Club du Sahel et de l’Afrique de l’Ouest (CSAO/OCDE)

cross-border-cooperation-large-freLa publication CSAO/OCDE « Coopération transfrontalière et réseaux de gouvernance en Afrique de l’Ouest », aborde le sujet – crucial mais trop méconnu – de la coopération transfrontalière, par le biais d’une approche encore peu utilisée en Afrique de l’Ouest et dans le monde du développement : l’analyse des réseaux sociaux. Cette double originalité fait de la lecture de cet ouvrage une expérience pleine d’enseignements.

Plus de 46 % des villes et la moitié de la population urbaine ouest-africaines se trouvent à moins de 100 km d’une frontière. Ces espaces frontaliers couvrent la totalité des territoires du Bénin, de la Gambie, de la Guinée-Bissau et du Togo; les deux tiers de ceux de la Guinée, de la Sierra Leone et du Sénégal; plus de la moitié de la superficie du Burkina Faso et du Ghana. Continue reading

Migration: An overlooked tool for local development

By Cécile Riallant, Programme Manager, UN Joint Migration and Development Initiative (JMDI)

immigration-integrationThe global approach to migration and development is typically framed at the national level, whereby policies are conceived by national governments and mostly implemented with national fiscal resources and by national actors. This is in line with the common perception that migration is subject to national sovereignty, involving country to country agreements and adherence to international conventions. Yet, this national level approach fails to acknowledge the diversity of development and migratory contexts that exist within countries. Indeed, persisting inequalities, one of the identified drivers of migration, exist not only among different countries, but also within countries. Migrants tend to move between specific territories, creating varied local migratory contexts within countries themselves. This is why the links between migration and development need an integral and bottom-up approach from the often overlooked local level. Increasing evidence supports migration as a local development tool that can enhance the dynamism of territories receiving and sending migrants. Continue reading

The Milan Charter: What’s in it for West Africa?

By Donatella GnisciSahel and West Africa Club Advisor – Expo Milano 2015

The Milan Charter

If you agree that a lack of access to sufficient, safe and nutritious food, clean water and energy goes against human dignity, will you join Nobel Laureate Amartya Sen in signing the Milan Charter? The Charter, which is available in 19 languages, emphasises that one of the greatest ongoing challenges for humanity is feeding an ever-growing population, and doing so in participatory and inclusive ways, without harming the environment. To tackle this challenge, citizens, members of civil society, businesses, and local, national and international institutions, are invited to commit to safeguarding everyone’s right to food as a fundamental human right.

The Milan Charter is Expo Milano’s contribution to the Post-2015 Development Agenda. Through it, the Expo aspires to establish its central legacy. The Charter summarises a process of reflection that involved global experts and leaders. Together, they examined the linkages between development, equity and sustainability, urbanisation and agriculture, natural resources and biodiversity, health, waste and energy, and stakeholders’ roles and responsibilities. On the Charter’s website this complexity is broken down by topic, and by actor, so that readers can filter content and visualise the issues at hand, the rights that they refer to and the changes that the Charter argues are needed. These changes relate to prevailing production and consumption models, economic activities, political and citizen engagement and individual behaviours.

But what does the Milan Charter mean for West Africa? In my view, the Charter stresses three useful points.

1. In an increasingly urbanised world, agriculture is still of paramount importance.

The Charter reminds us that agriculture goes far beyond food production, involving landscape design, environmental and territorial protection, the sound management of natural resources and biodiversity conservation. As the West African regional agricultural policy adopted by ECOWAS in 2005 recognises, the transformation of agriculture in West Africa has important regional dimensions. This regional approach to agriculture is based on the complementarities between agro-ecological zones, the importance of intra-regional trade, the interest in creating larger markets for agricultural products and the desire to stabilise prices in a context of demographic and socioeconomic change. According to an OECD/SWAC study, agricultural producers accounted for 90% of the region’s population in 1950. By 2010, they made up only 50% of the population. Meanwhile, total agricultural production has increased fourfold over the last 30 years, while the importance of urban and peri-urban agriculture have both risen. For the Climate & Development Knowledge Network, urban and peri-urban agriculture have had positive effects on food security and resilience to climate shocks in West African cities, although their environmental impacts need more analysis. The production of primary commodities (e.g. cocoa, cotton, groundnuts and fishery products) coexists with a vibrant horticultural sector, reaching from Mauritania to Chad. However, challenges, capacities, market connectivity and opportunities vary across countries. So, signing the Charter will remind regional actors and partners that agriculture is crucial to West Africa’s sustainable development and food security, and that this makes the regional/national co-ordination of agriculture-related strategies, policies and programmes all the more important. The Charter rightly considers these within a broader context, where interventions in agriculture need to be linked to efforts to promote rural and urban development, improved natural resource management, and environmental protection.

2. Women’s empowerment and gender equality, and food and nutrition security are two sides of the same coin.

The Charter notes the lack of universal recognition of the fundamental role of women, especially in agricultural production and nutrition, and the unjustifiable inequalities in the possibilities, capabilities and opportunities of women and men in many spheres of life. West African countries rank poorly in the Gender Inequality Index calculated by the United Nations Development Programme: ranging from 119th for Ghana to 151st for Chad, out of 187 countries. Regional reduction of maternal mortality only reached 46% in 2014, meaning that the Millennium Development Goal 5’s target of  a 75% reduction by 2015 is beyond reach. Women’s empowerment is often a hot topic. It is presently high on the political agenda at the international level (2015 European Year for Development, the Sustainable Development Goals), on the continent (African Women’s Decade 2010-2020) and in West African countries (Beijing Platform for Action +20 implementation monitoring process). By signing the Charter, regional actors and partners will make their engagement in this complex agenda visible once more. What specific aspects should be prioritised in the West African context? How do we step up efforts to learn from experiences elsewhere?

3. Who is responsible, who is accountable?

The Charter gives a straightforward answer: We all have distinct but shared responsibilities to adopt sustainable behaviours, models of production and consumption, ways of using resources and approaches to waste disposal. Actions are proposed for individuals, economic actors and community members. The Charter points out that we are collectively responsible for holding political institutions that represent us accountable for inclusive decision-making, which must both benefit people and the planet. Institutions should commit to the adequate co-ordination of policies, programmes and efforts for resource mobilisation. This approach resonates well with the Global Alliance for Resilience (AGIR) – Sahel and West Africa. Under the political leadership of ECOWAS and UEMOA, AGIR has nurtured multi-stakeholder, multi-sectoral and multi-level approaches and partnerships, strengthening the resilience of West African people.

Amartya Sen signing the Milan CharterIn adding his signature to the Charter, Professor Sen reminded us that hunger “is above all an economic, political, cultural and health care problem”. That raises a compelling question: What is each and every one of us doing to solve it?

Donatella Gnisci, SWAC Advisor – Expo Milano 2015

26 May 2015