Governance and Security

The Challenge

Despite promising trends of democratisation and stability in the last two decades, corruption and conflict remain a serious barrier to development in many African countries. Experts estimate that African states lose as much as $148 billion annually to corruption, amounting to approximately one quarter of GDP. Corruption in many sub-Saharan African countries has been entrenched for decades, often through systems of patronage and nepotism. Donors can sometimes unwittingly play a role in perpetuating the detrimental cycle of corruption through support to corrupt governments based on strategic interests, failure to regulate multinational corporations and permitting the shelter of stolen assets in banks and non-cooperative offshore financial centers, some of them in developed countries. The value of stolen assets held by banks in developed countries is estimated at $20 billion to $40 billion per year - a figure equivalent to 20-40% of flows of development assistance.

Conflict also continues to hamper African development. Although there has been a decline in the past two decades, in 2006 almost half of all the world's high-intensity conflicts were in sub-Saharan Africa. The costs of these conflicts, both direct and indirect, are numerous. The cost of armed conflict in 23 sub-Saharan African countries between 1990 and 2005 has been placed at $284 billion. This is an average of $18 billion per year and represents an average annual loss of 15% of GDP, which is one-and-a-half times the average African spending on health and education combined. These macroeconomic impacts are massive, but do not tell the story of the dramatic human impacts in affected regions. Compared with peaceful countries, sub-Saharan African countries in conflict have, on average 50% more infant deaths; 15% more undernourished people; 20% more adult illiteracy; and 2.5 fewer doctors per person. In addition, government spending, which could otherwise have been directed to social sectors, goes into military spending during times of conflict.

The Opportunity

Peaceful countries with leadership that is accountable to its citizens will have the best chance at winning the fight against extreme poverty and disease. Transparent governments that respect civic participation and the rule of law are necessary to ensure that scarce resources are spent well and investments are made in the poorest people. For the past two decades, the number of sub-Saharan African countries moving towards good governance is on the rise and the number of sub-Saharan African countries in conflict is decreasing.  Simultaneously, the number of intensive conflicts in sub-Saharan Africa has been declining since the end of the Cold War. According to the Heidelberg Institute for International Conflict Research, the number of highly violent conflicts in sub-Saharan Africa declined from 15 in 2006 to nine in 2007, with just two of the nine countries classified as experiencing 'war' (Sudan and Somalia). Moreover, the experience of countries like Rwanda, Mozambique and Liberia has demonstrated that peace and recovery are possible even after decades of the dictatorship or debilitating conflict.

The responsibility and the greatest ability to improve governance and security in sub-Saharan Africa lies with the continent's own leaders, media and civil society, but there is also a role for donor countries, the private sector and other development partners to play. To help promote good governance, donors and recipients should first thoroughly and transparently report all development assistance that is given and how it is spent. In addition, developing country governments should transparently publish what they receive from investors and companies by implementing and expanding the Extractive Industries Transparency Initiative (EITI), a voluntary initiative designed to improve governance in resource-rich countries through the publication and verification of company payments and government revenues from oil, gas and mining. As of April 2008, 15 sub-Saharan African countries had met the criteria to be candidate EITI countries.

Initiatives such as the African Peer Review Mechanism (APRM) should also be expanded with a focus on boosting capacity. The APRM, which was launched by the African Union (AU) in 2003, is a voluntary mechanism that facilitates peer reviews for countries trying to govern better and more transparently. Five countries- Ghana, Rwanda, Kenya, Algeria, and South Africa - have completed the African Peer Review Mechanism process and 29 countries have signed on to participate. Finally, efforts should be made to sufficiently strengthen the transparency and regulation of tax havens to eliminate the harbouring of illicit funds, and also to assist poor countries in recovering stolen assets through initiatives like StAR (the Stolen Assets Recovery Initiative, launched by the World Bank and IMF) and the U.N. Convention Against Corruption (UNCAC).

Donors should also work with African governments to promote peace and security on the continent.  For their part, donors should stand by their commitments to train and support peacekeepers in the various UN and AU missions throughout sub-Saharan Africa. Donors should also support international initiatives like the UN Peacebuilding Commission (which aims to marshal UN resources to improve post-conflict recovery) and the Central Emergency Response Fund (which was designed by the UN to jumpstart critical operations and lifesaving programs not yet funded through other sources). Donors should also support the growing number of African-driven efforts to address peace and security issues. Today, the African Peace and Security Architecture (created by the AU in 2002) includes the Peace and Security Council of the AU, a Continental Early Warning System, a Panel of the Wise (an enhanced mediation body), the African Standby Force and a Post-Conflict Reconstruction and Development Framework.  African countries also make a significant contribution to peacekeeping operations worldwide. In 2007 almost one-quarter of all UN military personnel around the world came from African countries (22.4%) - second only to personnel provided by Central and South Asia. Sub-Saharan African countries provide 40% of the troops required for peacekeeping operations within Africa.