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The Role of Capacity Building in
Reversing Poverty
From a statement by Abdoulaye Mar Dieye
Chief Economist, Regional Bureau for Africa, UNDP
As President Mandela eloquently put it: "Africa is beyond bemoaning
the past for its problems. The task of undoing that past is on the
shoulders of African leaders themselves, with the support of those
willing to join in a continental renewal. We have a new generation
of leaders who know that Africa must take responsibility for its own
destiny, that Africa will uplift itself only
by its own efforts in partnership with
those who wish her well."
From UNDP's perspective, there are
five broad areas where strategic intervention
and support can help swing the
region away from a downward spiral of poverty, despair and
destruction and onto the path of peace and sustainable reform:
First, the most important task is to build and retain real, indigenous
capacity. The key to doing that lies in local institutions as
much as national governments. More broadly, sound institutional
frameworks give a platform not merely for attracting new foreign
investment but stimulating critically needed domestic capital formation
that does not then immediately flee the country for safer
havens.
First, the most important task is to build and retain real, indigenous capacity. The key to doing that lies in local institutions as much as national governments. More broadly, sound institutional frameworks give a platform not merely for attracting new foreign investment but stimulating critically needed domestic capital formation that does not then immediately flee the country for safer havens.

Second, we also need much more financial flows to developing
countries, and Africa in particular, through more official development assistance and foreign direct investment. Formal aid flows are
still critical if the poorest countries are to succeed in laying the necessary
environment to start attracting bigger proportion of private
money. But we must go beyond and directly tap resources in the private
markets.
Third, the world needs to take a bolder and more coherent
approach to help dealing with Africa's health crisis. HIV/AIDS is
clearly the most urgent and important challenge, already dragging
down life expectancy in worst affected countries by as much as 17
years. Unless the spread is stemmed, its tragic effects will reverberate
on other continents.
Fourth, we have to recognize that deregulating economies and
providing sound institutional frameworks will not alone help meet
the needs of Africa's poor. The
easiest first step is for rich countries
to open their markets completely
to all goods and services
from Least Developed Countries,
the overwhelming majority of
which are African.

Fifth, we need to help African
countries develop a proper strategy
for addressing the "digital divide."
The longer African governments
wait in creating a favorable legislative
and regulatory environment
and broader IT strategies, the
further their countries will be left
behind.
While Africa's challenges may indeed be vast and deep-rooted, that is far from the same thing as insoluble. If we can combine internal reforms and capacity building with serious, sensible, sustained support from the international community, development is feasible. And then we will really be able to get Africa out of the grooves of poverty and talk about a true African Renaissance. And that will be our collective tribute to President Mandela.
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