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World Economic Forum separates
negative perceptions from challenging reality
This week,
Durban again hosted this year's Southern Africa Economic Summit of the
World Economic Forum (WEF). The overall theme of the Summit was "Acting
on Realities, Confronting Perceptions".
When he spoke at the opening plenary session of the
Summit, the Managing Director of the WEF, Mr Frederic Sicre, made the
following observation: "When we left Durban last year, we were in
the midst of Afro-pessimism. The peace efforts in Angola and the DRC were
inconclusive, elections in Zimbabwe were pending and Mozambique had been
afflicted with terrible natural disasters. Negative perceptions concerning
Africa remain ripe in many boardrooms around the world but we are convinced
as an organisation that the opportunities still to be uncovered in Southern
Africa will reward those who remain committed to this Continent, through
good times and bad."
Despite the persistence of such negative perceptions
in many corporate boardrooms, this year's Summit proved to be the most
successful of the six Southern Africa summits that our country has been
privileged to host. All 14 SADC governments were represented, with three
Presidents present, one Prime Minister and a good number of Cabinet ministers,
our Premiers, diplomats and senior officials. The Executive Secretary
of SADC also participated. The Summit was also privileged to have among
its delegates, a delegation from Ghana, led by President Kufuor.
In addition to these Southern African government representatives,
the Summit had 900 participants, 700 of whom came from the private sector.
Of interest in this regard is the fact that 53 percent of these private
sector participants were CEOs of companies drawn from over 40 countries.
Twenty-four percent were members of the boards of their companies. Not
only did the Summit attract the largest number of participants ever. It
was also notable for the large proportion of senior leaders of business
who attended in person.
Another welcome development was the participation in
significant numbers of trade union leaders, senior academics, local and
international NGOs and journalists as delegates, confirming the need for
inclusive processes in the effort to achieve a better life for the peoples
of Southern Africa and Africa.
We can therefore report that from the point of the view
of the numbers of delegates, their seniority, as well as their geographic
and sector spread, the 2001 Summit was a resounding success. This is particularly
important in the light of the observation made by WEF MD, Mr Sicre, to
which we have referred, that "negative perceptions concerning Africa
remain ripe in many boardrooms around the world".
The principal point we must make in this regard is that
these negative perceptions are nevertheless not as powerful as the hope
and confidence that many investors have in the future of our region and
continent. In this regard, we must therefore assume that people travelled
long distances from across the globe to attend the Summit, because they
agree with Mr Sicre when he said that "the opportunities still to
be uncovered in Southern Africa will reward those who remain committed
to this Continent, through good times and bad".
The very first plenary session of the Summit provided
an opportunity to hear directly from the delegations whether, in fact,
this conclusion is correct. This session dealt with the issue of 'Confronting
Perceptions to Act on Realities', as it was entitled, which first received
reports from working groups that had met earlier in the day to discuss
this question in its different aspects.
In this regard, some of the most cogent views were expressed
by such eminent global economic players as Mr Niall FitzGerald, Co-Chairman
of Unilever and Professor Stanley Fischer, First Deputy Managing Director
of the IMF. Without hesitation, Mr FitzGerald stated that he was an unapologetic
optimist about the future of our region. He said that we have enormous
volumes of natural resources, a growing modern industrial capacity, big
potential in tourism and a new forward-looking political leadership that
needs to be supported and encouraged. Professor Fischer joined in this
assessment, making the point that, in many respects, the negative perceptions
about the region were not consistent with the positive developments in
our area.
At an earlier Summit, a German investor said that as
an investor, he gets worried when perceptions about a country are more
positive than is justified by actual realities. He went to say that he
was not worried about South Africa because, while perceptions might somewhat
be negative, the reality was that the reality was overwhelmingly positive.
Last year, when some were very keen to have their predictions proved correct
that Zimbabwe would have a very negative impact on South Africa, a major
international bank published a report on this matter. Referring to how
well our economy was performing, it was headed - look at the numbers,
not the neighbours!
Professor Fischer reflected the view expressed by the
German investor and the international bank, when he spoke this week about
perceptions of Southern Africa being in discord with the realities of
our region. Of importance in this regard is the fact that Professor Fischer
spoke on behalf of a critical international financial institution, the
IMF, part of whose task is to make assessments that are as objective as
possible, of both national economies and the global economy.
Nevertheless, we must also note some of the specific
observations and concerns about our region made by the delegates who came
from outside of Southern Africa. Among other things, these delegates stated
that they found the independence of key institutions in the region attractive.
There are attractive investment opportunities, including those that would
be created through privatisation. Overall, they felt that the region is
one of interesting promise.
However, the delegates were concerned about what they
viewed as poor delivery on promises in the region. They complained about
the slow process of privatisation. They said that bureaucracy and corruption
were having a debilitating effect. The situation in some countries is
such that it creates an image of our region being 'a bad neighbourhood'.
They said that governments in the region were not projecting a sufficiently
strong vision and leadership. In this context, the delegates also argued
that the absence of this strong leadership has also led to poor performance
with regard to the critical matter of regional co-operation and integration
that must be achieved through SADC.
Clearly, it is of great importance that our region must
attend to all these negative perceptions. We have to bear this in mind
constantly, that our region is part of the global community. It competes
with other regions of the world for investments, access to markets, skills
and technology, tourists, approval ratings and all the other things that
are necessary for us to achieve the common objective of a better life
for all.
In this context, we must also report that in other meetings
of the Summit, the delegates emphasised the need for our region urgently
to take steps to market itself throughout the world. They pointed out
that we have paid no attention to this important matter where, by comparison,
even cities in a country such as the United States, conduct sustained
campaigns to markets themselves both in the US and elsewhere in the world.
With regard to all these matters, there can be no doubt
that the 2001 Durban WEF Summit has communicated both to our country and
to our region, two important messages. We have a duty urgently to respond
to both of these.
One of these is that the international community has
told us that they are confident that our area of Africa is a region of
hope. For this reason, they want to stay with us to help transform that
hope into an actual situation in which the hope is turned into concrete
reality, for the benefit of our peoples.
The second of these messages is that there is a variety
of worrying matters we have to attend to, which help to drive away from
our region specialists, companies, capital and other resources that we
need, radically to improve the lives of our people. We must correct the
perceived deficiencies in these areas, to speed up the process of deepening
our partnership with the international community, in the common effort
to turn ours into a winning region of the world.
Another important feature of the 2001 Durban WEF Summit
was the way in which it was organised. Rather than discuss all matters
under the sun, as it might have tried to do in previous sessions, this
time the Summit sought to focus on a narrow, but critically important
range of issues. Mr Sicre summarised this in the words - "less is
more".
Accordingly, the Summit paid particular attention to
such questions as the struggle against infectious diseases, including
AIDS and broadening access to health care services; bridging the digital
divide through improved access to information and communication technology;
integrating Southern Africa in the world economy with special reference
to the global trading system; and the overall challenges facing Africa
and the place of MAP in the effort to address these challenges.
The intention and effect of this focus was to ensure
that the political, business, labour, academic, civil society and media
decision-makers gathered in Durban could arrive at a common perspective
on the important issues we have just detailed.
That focus will also help our region itself to improve
its capacity to attend to these central issues, assisted by a better understanding
of the view of the international community with regard to these issues.
An additional advantage of this is that it facilitates the adoption of
detailed agreements at the point, for example, when public-private partnership
are negotiated and formed, as our countries strive to address all the
matters we have detailed.
In this regard, we must make special mention of the
great interest in and enthusiasm for the Millennium Partnership for the
African Recovery Programme (MAP) shown by the delegates at the 2001 WEF
Durban Summit. From comments made by the delegates, it is clear that the
MAP process will have to ensure that it includes as decision-makers, business,
labour and civil society, all of whom are determined to work to contribute
for the recovery of our Continent.
Accordingly, with regard to the important question of
the content and outcome of the Summit, in addition to the issue of participation,
we must, again, say that the Summit was an outstanding success, to the
extent that it gave further impetus towards the achievement of the objective
of a better life for all.
Naturally, the Summit also gave specific attention to
the trouble spots in our region. These were the Democratic Republic of
Congo (DRC), Angola and Zimbabwe. In all these instances, the delegates
made the point very firmly that what they sought to see was peace, stability,
democracy and prosperity in these countries, as elsewhere in the region,
to end the negative 'bad neighbourhood' effect that events in these countries
are having on the rest of the region.
But perhaps what most emphasised the challenge we face
as Africans were very unwelcome events in an African country outside the
region of Southern Africa. I refer here to the Central African Republic
(CAR). Not long before the Durban Summit, the CAR was thrown into turmoil
as a result of an armed rebellion which sought to overthrow the democratically
elected government led by President Patasse, but which, fortunately, failed.
Early reports indicated that a former CAR head of state, who had acceded
to power by force, General Andre Kolingba, was behind the attempted armed
seizure of power.
This actuality only served to confirm that some of the
negative perceptions about our Continent held by some members of the international
community in fact coincide with some of our reality. Accordingly, the
challenge that continues to face us is to square up to our responsibilities
as Africans. To achieve the noble objective of a better life for all the
peoples of our region and Continent, we have to act together in defence
of democracy, peace and stability everywhere in Africa.
We owe this to the children of Africa, who rose
up in revolt in Soweto 25 years ago this month. They understood that if
the children of Africa have no future, our Continent has no future.
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