Inclusive and equitable growth for poverty reduction in Africa

Alignment and harmonization of national and sector strategies

An important first step on the policy front should be the alignment and harmonization of national and sector strategies. Although this step will focus the attention of governments on specific results, it will not enough in itself ensure those results. The more difficult second step is the enactment and implementation of policy reforms that affect the institutions and processes of development. The capacity to prioritize policies and investments, allocate and utilize resources, implement strategies, and create an enabling environment for inclusive growth requires adequate institutions and good governance. Unfortunately, these are weak in most African countries due to human and physical capacity deficits. To be comprehensive, capacity development for improving the economic governance and efficiency of existing institutions must root out corruption.

Donor coordination and coherence

Improved donor coordination and coherence with domestic development priorities and interventions in terms of policies and investments will also be critical in achieving inclusive and equitable growth in many African countries. The Paris Declaration, aimed at achieving greater coordination and alignment among donors to assist with country-owned strategies and processes, is a move in this direction. Because the past lessons and experiences of countries vary widely, as do their resource bases and stages of development, an appropriate sequencing and scope for policy and institutional reforms will be unique to each country as well. Local ownership in the design and implementation of reform efforts will also be crucial here.