New Partnership for Africa Development (nepad)
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Africa, a continent gifted with giant amounts of natural and human resources as well as great cultural, ecological and economic diversity, remains underdeveloped. Africa is a continent of 54 independent countries and a rich mix of native peoples, cultures, economies and history (Bennet 57). It is the worlds second largest and second most populous continent. With all of the various countries and all of the natural resources in which they hold, they are still in need of massive assistance to get their continent out of the debt that they are in. A program geared to only Africa, is helping to solve the root problems in Africas debt, and is longing to improve many aspects of Africa and the development of it. NEPAD is a comprehensive socio-economic renewal program that is fixed upon the three interdependent and mutually reinforcing support of sustainable development economic development, social development and environmental protection (NEPAD). NEPADs four primary objectives are to eradicate poverty, promote sustainable growth and development, integrate Africa in the world economy, and accelerate the empowerment of women (Taylor 164). NEPAD seeks to attract increased investment, capital flows and funding, providing an African owned framework for development as the foundation for partnership at regional and international levels.
In Africa, 340 million people, or half the population, live on less than one US dollar per day which is a gigantic issue in Africa. One of NEPADs major goals is to eliminate poverty. There are many actions which reduce poverty indirectly and in the long run, as the economy as a whole expands and flourishes. Infrastructure investment that promotes high technology manufacturing is an example of this. There are actions that can have a faster and more direct beneficial effect on the poor. Direct investment in health facilities in poor areas, or the development of an effective anti malaria vaccine, are examples of this. Another great idea is actions and interventions which lead to long term development and poverty reduction may have short term unhelpful consequences for some of the poor. Communications investment like dams, or some forms of trade provide examples of ways to increase the infrastructure there (THE NEW PARTNERSHIP FOR AFRICAS DEVELOPMENT NEPAD). Everything else being equal, the position taken here is that actions which have most direct and beneficial impacts on poverty should be prioritized, and have a great impact on bringing the continent out of the debt that that they are in, first starting with the most important factor, hunger and starvation that the people are going through.
The key in promoting sustainable growth and development is to increase the size of the workforce, and changes in economic policies. A countrys macroeconomic policies, policies in the larger picture will affect its growth performance through their impact on certain economic variables. The evidence for sub Saharan Africa proposes that the recent economic recovery was underpinned by a positive economic environment influenced, either directly or indirectly, by improvements in macroeconomic policies and structural reforms (Adesina). The estimated growth equation indicates that per capita real GDP growth is positively influenced by economic policies that raise the ratio of private investment to GDP, promote human capital development, lower the ratio of the budget deficit to GDP, avoid overvalued exchange rates, and stimulate export volume growth (Taylor 211). The key results are the following: These results suggest that macroeconomic stability, the implementation of structural reforms, and increases in private investment are necessary for boosting growth in sub-Saharan Africa.
Most African countries are small with low incomes. Their production structures are weak, constrained by a variety of failures. Conflicts are a major problem in some countries, with attendant human and economic costs. Economic and political reforms have only gradually and sometimes haltingly taken hold. Regional integration and cooperation can help overcome some of these problems. First, regional integration arrangements can help African countries overcome constraints arising from small domestic markets allowing them to reap the benefits of scale economies, stronger competition, and more domestic and foreign investment. Such profits can raise productivity and expand production and exports. Second, the small size of many African countries makes assistance in international negotiations a smart option achievable through regional integration arrangements. Cooperation can increase countries bargaining power and visibility. Third, the similarities and differences of African countries could make regional integration and cooperation beneficial. Many African countries share common resources, such as rivers and problems, such as HIV/AIDS and low agricultural productivity (NEPAD). But they also exhibit important differences, particularly in their endowments. Though most have limited resources, some have well-trained workers, some have rich oil deposits, some have water resources suitable for hydroelectric generation, and some have excellent academic institutions and capacity for improving research and development. By pooling their resources and exploiting their comparative advantages, integrated countries can devise common solutions and use resources more efficiently to achieve better outcomes. Fourth, in many African countries regional mixing can help make reforms deeper and less reversible. Regional integration arrangements can provide a framework for coordinating policies and regulations, help ensure compliance, and provide a mechanism of collective restraint. Also, regional incorporation planning can help prevent and resolve conflict by strengthening economic links among African countries. On a continent where political instability and conflict remain