Africa is the future
A comment to Tove Gravdal's article
For a long time, the world saw in Africa mainly hopeless poverty and destitution. Now, observers are seeing a continent with economic growth, peace and several examples of democratic progress.
Originally, foreign aid was about transferring resources from rich to poor countries. Nearly all of the world’s poorest people used to live in the poorest countries. Today, only 30 per cent of the poorest people live in very poor countries. The other 70 per cent live in middle-income countries. These developments are reasons for reconsidering our aid policies.
It is important not only to consider inequalities between countries, but also within countries. Equitable distribution is an important value in itself, but it is also positive for economic growth. Large inequalities mean higher risks of conflict and social unrest, which are also obstacles to growth.
Norway is already contributing to an equitable distribution. But I want us to do more in this regard. This calls for support from all good forces; analytic journalists such as Gravdal, research communities, Norad and non-government organisations.
I have recently visited Tanzania and Ethiopia, two African countries that we cooperate closely with. Both countries have experienced strong growth for years. Just as Tove Gravdal states in her article in NAI Forum1, Africa is the continent of the future.
For a long time, the world saw Africa through a lens of poverty and destitution, without any hope. Now, more and more observers are seeing a continent in progress, with economic growth, peace and several examples of stronger democracy. Seven of the ten fastest growing economies of the world are currently in Africa.
But as Gravdal notes, these developments are reasons for reconsidering our aid policies. Twenty years ago, 90 per cent of the world’s poorest people lived in poor countries, the so-called low-income countries. When the international development assistance system was set up, it was, for obvious reasons, for the purpose of ensuring the transfer of resources from rich to poor countries. Today, only 30 per cent of the poorest people live in poor countries. The other 70 per cent live in the so-called middle-income countries.
China and India have most of the poor people, but also a number of African countries that used to be among the poorest have now been upgraded to middle-income status. Ghana and Zambia are the two latest examples of this. Many people there have become quiet rich, but large groups are still stuck in deep poverty.
We have entered a phase where it is important not only to consider inequalities between countries, but also within a country. The perhaps most important issue for me in development policy is this: How can we contribute to ensuring that the economic growth now taking place in Africa, and in other regions experiencing growth, benefits the whole society?
Equitable distribution is an important value in itself, but it is also positive for economic growth, as shown by experience. We also know that societies with large inequalities have higher risks of conflict and social unrest, which are also obstacles to growth.
Norway is already contributing to an equitable distribution. The Oil for Development and Tax for Development programs are supporting reforms for enhancing the tax administration and governance systems of specific countries. In addition, we support the trade unions and other civil society organisations, because the distribution of wealth in a society is largely determined by access to power.
But I want us to do more in this regard. Towards that end, we need support from all good forces; analytic journalists such as Gravdal, research communities, Norad and non-government organisations.
1 Originally in Norwegian in the Morgenbladet newspaper