Writes Leo Odera Omolo.
East African region faces social unrest if governments fail to speed up reforms aimed at job creation and wage growth.
This warning is contained by the latest edition of the African Economic Outlook 2011.It states that while East Africa will record the highest growth in Africa in 2011, governments need to invest more in generation of jobs and boosting basic social service to match up the growing number of graduates entering labor market.
The report, co-authored by the African Development Bank {AfDB}, the OECD Development Center, UNDP and the United Nations Economic Commission for Africa, says the region’s projected to growth of above six per cent in 2011, compared with North Africa’s 1per cent, Southern Africa 4.5 per cent, Central Africa 5.3 per cent and the continent’s projected average growth of 3.7 per cent.
Experts say rising food and fuel prices have taken a heavy toll; persistent poverty and income inequality are reminders that the fruits of strong headline growth have been unevenly distributed across the region.
“The thing is for the government to recognize and work towards an agenda that will make it inclusive” says Mthuli Ncube, chief economist and vice-president of the AfDB.
While countries are focusing on attracting foreign direct investment, he said it is critical for governments to devote resources to easing business for the local business community.”Sometimes countries spend so much on trying to attract FDI and they {foreign investment} do not come but meanwhile there are local people who are dynamic, who want to invest and create jobs,” Mthuli said.
To enhance growth prospects the region has to accelerate its regional integration agenda. Governments, he said, have to promote investment by making it easy for business to move across borders “Regional integration is not just about goods and services. A Kenyan company in the region should have as much ease as within the country. These are the things that will make the region more dynamic,” he said adding “people with skills can find something to do and re likely to create a small enterprise.’
Ends
The African Development Bank {AfDB}, the OECD Development Center, UNDP and the United Nations Economic Commission for Africa, these are the groups through whom Africa is being ruled. They pull all the strangulating strings and apply choke holds when hey feel like. Meanwhle, no development has taken place in Sub-Saharan Africa since 1960s. Other than giving up the land and lives of its people, African has nothing left to squeeze and these screwballs know that!