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-News for Tue. 9 April & Wed. 10
April 2002 World Bank Urges More Aid to Africa
Barry Wood Washington 10
Apr 2002 18:58 UTC

The Washington
based-World Bank, the largest source of development aid for Africa, Wednesday
called for rich countries to make good on their promise to boost aid to African
countries. Bank officials are optimistic about the recently unveiled New
Partnership for African Development (NEPAD).
The World Bank says
to reverse the effects of the AIDS epidemic, civil wars and sluggish growth,
Africa urgently needs more assistance. Official aid to Africa fell from $17
billion in 1990 to $12 billion last year. Bank Vice President for Africa
Callisto Madavo says the NEPAD initiative put together by the presidents of
Senegal, South Africa and Nigeria promises aid will be better used than in the
past.
"This is the first
time that we have had an important initiative being developed and led by
Africans," said Mr. Madavo. "So the ownership and leadership is key. But there
is another aspect that makes this particular initiative different. Which is
that it centers on a key issue in African development, which is the need to
improve governance."
The United States
last month promised to boost its aid to African countries that successfully
restructure their economies and boost economic performance. Mr. Madavo calls
the U.S. move significant and positive.
Alan Gelb, the bank's
chief economist for Africa, says debt relief undertaken by the rich countries
since 1998 is saving African countries $1 billion a year. Those savings, he
says, are being well used, with "about 80 percent of the savings earmarked for
identifiable poverty-related expenditures, whether on health, education, rural
infrastructure, those kinds of areas."
Twenty-four African
countries have had their foreign debts reduced by $26
billion.
Mr. Madavo says the
World Bank is rightly insisting that debt relief be linked to effective poverty
reduction programs. "We want quality poverty strategies," he said. "We want
strategies that are really going to direct these resources to produce the kind
of results that we are looking for. So in a certain sense it is self-paced in
terms of the capacity of these countries to move forward."
Africa will again
feature prominently at this year's summit of the Group of Eight industrial
countries. The presidents of South Africa, Nigeria and Senegal will be
attending the June 26 meeting in Canada where the Partnership for Africa
program will be a main agenda item.
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