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21. Accessing Funds for Development: Required Capacities for Resource Mobilization and Absorption

Publication Date:
09-2017
Content Type:
Special Report
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
African countries are now implementing the Agenda 2063 and Agenda 2030 (also known as Sustainable Development Goals – SDGs), both requiring huge financial resources. Globally, large amounts of investable resources, mostly private, are available in advanced and emerging economies while domestic public resources, even in low-income countries, can be increased when the relevant capacities are in place. To efficiently mobilize the available resources, therefore, countries need to tackle the binding capacity constraints. These include human and institutional capacity to effectively manage tax exemptions, tax evasion, capital flight, illicit financial flows; constraints to accessing private resources particularly blended finance offered by public private partnership (PPP) avenues; and constraints relating to underdeveloped capital markets in most Africa countries. This Issues Paper produced by the African Capacity Building Foundation (ACBF) for the 26th Annual Meeting of its Board of Governors considers the capacity dimensions related to the mobilization and absorption of funds by responding to the following questions (1) What are the domestic and external resources available for Africa’s development? (2) How can the resources be effectively mobilized? (3) What are some of the good practices employed by countries to ensure that the available resources are effectively utilized and fully absorbed? (4) What have been the capacities required to effectively access and absorb the mobilized resources?
Topic:
Economics, Economic Growth, Public Sector, Capacity, Capital Flight, Economic Development, and Private Sector
Political Geography:
Africa

22. Which Inequalities Matter for Africa's Sustained Growth and Poverty Reduction?

Publication Date:
08-2017
Content Type:
Special Report
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
This paper produced by the African Capacity Building Foundation (ACBF) examines the growth, poverty, and inequality dynamics. The findings suggest that policy efforts should target class inequality, especially gender and age related. Among other recommendations, this paper suggests that countries like South Africa should shift focus from interracial inequality to inter-class inequality broadly, which is affecting its economic performance. The aim is to provoke discussion, encourage further investigation, and lay bare for action the critical capacity challenges at the center of Africa’s observed inequality.
Topic:
Political Economy, Inequality, Economic Inequality, Capacity, and Economic Development
Political Geography:
Africa and South Africa

23. Policy and Institutional Dimensions of Africa's Political Economy in an Age of Globalization

Publication Date:
01-2017
Content Type:
Special Report
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
The advent of political independence allowed most Sub-Saharan countries to determine the appropriate mix of policies and institutions that would enable them to achieve rapid socioeconomic development. But experiences across the continent have so far yielded mixed results, and the search for an effective political economy model in the face of a rapidly globalizing world remains an ongoing challenge for most countries. In this study produced by the African Capacity Building Foundation (ACBF) Strategic Studies Project, we ask why some developing countries seem to be growing much faster and have much better socioeconomic performance than others. Indeed, what macroeconomic policies and institutions should Sub-Saharan countries pursue to enable more sustainable, lasting, and inclusive growth while dealing with the challenges that a rapidly changing political and economic world order present? The study’s main intention was to generate knowledge to enhance the efficacy of Africa’s political economy and development pathways by identifying alternative macroeconomic policy and institutional options that can be deployed to enable deeper socioeconomic transformation.
Topic:
Political Economy, Economic Policy, and Capacity
Political Geography:
Africa, Tanzania, Egypt, and Botswana

24. Building Capacity in Science, Technology, and Innovation for Africa’s Transformation: The Role of Private Sector

Publication Date:
07-2017
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
The call to industrialize and modernize Africa has become popular in recent years, and the African Union’s Agenda 2063 and the Common African Position on Agenda 2030 identify science, technology and innovation (STI) as key enablers. Many African countries fail to achieve their development targets partly as a result of underdeveloped and underused science and technology as well as limited invention and innovation by both the private and the public sectors. For most African countries, the major proportion of domestic contribution to research and development (R&D) activities is provided by the government, with little from the private sector. This policy brief is based on The Africa Capacity Report 2017 (ACR 2017). It describes the importance and contribution of the private sector to advancing science, technology and innovation development in Africa. The paper also highlights the capacity imperatives needed to increase private sector participation in STI development and formulates key policy recommendations.
Topic:
Development, Government, Science and Technology, Capacity, Innovation, and Private Sector
Political Geography:
Africa

25. Building Capacity in Science, Technology, and Innovation for Africa’s Transformation: The Role of Governments

Publication Date:
06-2017
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
The call to industrialize and modernize Africa has become more pressing in recent years especially given the high rates of youth unemployment. The African Union’s Agenda 2063 and the Common African Position on Agenda 2030 identify science, technology, and innovation (STI) as key enablers to achieving this. In response, Africa adopted a 10-year Science, Technology, and Innovation Strategy (STISA–2024). The African Capacity Building Foundation (ACBF) STI Survey (2016) confirms the importance of STI strategies and capacity development in African countries. This policy brief highlights the role of African governments in building STI capacity and the key capacity imperatives pertinent to STI. African governments are responsible for building STI capacity through the policies and processes that guide investment decisions in STI products and services.
Topic:
Government, Public Sector, and Capacity
Political Geography:
Africa

26. Building Capacity in Science, Technology, and Innovation for Africa’s Transformation: The Role of Higher Learning and Research Institutions

Publication Date:
05-2017
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
This policy brief by the African Capacity Building Foundation (ACBF) notes that African countries have shown interest and willingness in developing their economies through an approach driven by science, technology, and innovation (STI). Agenda 2063 and the Common African Position on Agenda 2030 identify STI as a key enabler to achieving inclusive and sustainable development in Africa. The ACBF’s STI Survey (2016) confirms the importance of STI strategies and capacity development in African countries. The survey findings point to African institutions of higher learning as having a crucial role in building Africa’s STI capacity. Thus, it is imperative that these institutions create appropriate systems that produce well-trained human capital in STI and other sector-specific critical technical skills. This entails refocusing investment priorities towards accumulating STI infrastructure, creating and strengthening partnerships, and redesigning curricula to meet Africa’s needs.
Topic:
Development, Science and Technology, and Capacity
Political Geography:
Africa

27. Building Capacity for Domestic Resource Mobilization: The Role of Development Partners

Publication Date:
12-2016
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
Africa’s ability to deliver on the ambitious post-2015 Agenda (also called the 2030 Sustainable Development Goals) and the African Union Agenda 2063 largely depends on the availability of adequate financial resources. But the funding sources for development programs have been neither stable nor predictable, particularly after the global financial crisis in 2008. It has become clear that while donor financing remains important, overreliance on donor funding will not sustainably drive the success of the two continental agendas, hence the need to focus on other development finance options such as domestic resource mobilization.1 If new sources of financing are not in place, Africa’s growth and industrialization strategies are likely to suffer an early setback. Agenda 2063 recommends that countries strengthen domestic resource mobilization, build continental capital markets and financial institutions, and reverse illicit financial flows for Africa to be self-reliant and finance its own development.
Topic:
Development, Natural Resources, Economic Growth, Capacity, Economic Development, and Human Resources
Political Geography:
Africa

28. Building Capacity for Domestic Resource Mobilization: Role of the Private Sector

Publication Date:
12-2016
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
Success in implementing Agenda 2063 and the Sustainable Development Goals depends largely on the availability and adequacy of resources. Africa realizes that industrialization is the way to go, as outlined in the two continental development plans, but it is inevitable that resources to fund these programs must be mobilized domestically. Domestic resource mobilization (DRM)1 was recognized as one of the six leading sources of finance for the Millennium Development Goals (MDGs), but many African countries did not fully achieve the MDGs due to overreliance on donor funding. One part of DRM is generating taxes and savings, which implies that governments and the private sector have key roles in this process. Specifically, the private sector should mobilize private savings, expand its productive investments, conduct responsible business by not engaging in tax avoidance and illicit financial flows, and ensuring corporate social responsibility. The 2015 Africa Capacity Report (ACR 2015) identifies the private sector as very important in partnering and cooperating with governments and other key stakeholders to maximize tax revenues and promote savings and investment. This policy brief puts forward possible interventions for the private sector to enhance domestic resource mobilization in Africa
Topic:
Development, Natural Resources, Capacity, Private Sector, and Human Resources
Political Geography:
Africa

29. Building Capacity for Domestic Resource Mobilization: The Role of the Government

Publication Date:
10-2016
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
Africa adopted an industrialization strategy, and committed to implement Agenda 2063 and Sustainable Development Goals (SDGs), all of which require adequate funding. Given that no African country fully achieved all the Millennium Development Goals (MDGs) largely due to funding constraints, domestic resource mobilization is therefore a very critical issue. Domestic resource mobilization is defined as the generation of savings from domestic resources and their allocation to economically and socially productive investments as well as accounting for such allocation. Africa has the capacity to adequately fund its development programmes from its own pool of resources (The Africa Capacity Report, 2015). Thus African governments are responsible for ensuring that national and continental development programmes are fully implemented, hence should mobilize sufficient resources to fund them. The public sector achieves this mandate through taxation and other forms of public revenue generation. In ensuring sustainable mobilization of domestic resources including curbing of illicit financial flows1, accountable governments are necessary.
Topic:
Development, Government, Public Sector, Capacity, and Industrialization
Political Geography:
Africa

30. Building Capacity for Domestic Resource Mobilization: The Role of the Civil Society

Publication Date:
03-2016
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
With the recent adoption of the Sustainable Development Goals (SDGs), and the commitment of Africa to implement Agenda 2063, which is the continent’s development blueprint, domestic resource mobilization becomes a crucial issue. Given the background that most African countries did not fully achieve the Millennium Development Goals (MDGs) due to over- reliance on donor resources, enhancing domestic resource mobilization in Africa becomes a necessity. Domestic resource mobilization has two elements to its definition: the generation of savings and taxes on one hand and their allocation to economically and socially productive activities. Accountable states and institutions are crucial for the success of domestic resources mobilization initiatives and the curbing of illicit financial flows.
Topic:
Development, Sustainable Development Goals, and Capacity
Political Geography:
Africa