For the senior managing director of the World Bank (WB), Axel van Trotsenburg, It’s time to start look favorably on Africa. In an interview with the agency EFE, He doesn’t doubt it:Personally, he emphasizes, I believe that Africa will transform the world.”.
““We have to start thinking in a completely different way,” he says. Sixty years ago it used to be written that many countries in Asia were a lost cause. Every year there was a cyclone that killed tens of thousands of people (…). Countries could not feed themselves. People were hungry. In China, 80% of the population was extremely poor…”.
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Van Trotsenburg recalls that The Nobel Prize winner in Economics Karl Gunnar Myrda even wrote that Asia will not be able to develop. And he was wrong, of course.
“What has happened in Asia shows that countries can develop in two or three generations, against the opinions of the whole world. I think this is something that people need to keep in mind when we look at Africa”he added. the economist during the Summit of African Heads of State and Government of the International Development Association (IDA), which brought together more than a dozen leaders from the continent a few weeks ago.
Leaders have insisted on the need to look for ways to better exploit Africa’s potential, to use it to finally achieve the well-being of all citizens and guarantee the development of the continent.
In 2075, a third of the world’s population will be from Africa. And more than a challenge, “This well-used demographic dividend could offer the continent incredible opportunities”emphasizes van Trotsenburg.
Africa.
EFE
New boost to social services
The World Bank prescribed for many years – especially in the 80s and 90s – cuts in public services to hugely indebted African countries.
Instead of reinforcing these services, The international financial institutions recommended that the States of the continent make an effort to attract private capital from other nations, who would then invest in their countries and create jobs, more robust economies.
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This has changed, at least in part. The request for more investments in health and education took center stage in an IDA summit, a WB entity that, since its creation in 1960, provides loans to impoverished countries without interest or at low rates.
“I don’t know if we are in a different phase – says van Trotsenburg -. I would simply say that the world is going through massive changes on an ongoing basis. This is a challenge for the World Bank, which is like an institution in continuous learning, adjusting to new trends.”.
“For example, about forty years ago, we did not pay so much attention to climate change, but then we clearly saw that there was an emerging debt problem. So, that was a prominent problem.”, he continues.
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However, Sub-Saharan African countries still use very low percentages of their national budgets to pay for public services.
Public services.
Private file
In 2001, members of the African Union (AU) signed an agreement committing to spend at least 15% of their budgets on health. But many countries have not complied.
So, African countries spend from eight to 129 dollars per capita on health services, while wealthy nations spend more than $4,000 per capita, according to the UN.
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“This is difficult for many countries, which are facing multiple shocks at the same time. They have to pay attention to education, health, infrastructure, electrification, drinking water”, admits the senior executive of the WB.
“If we add everything up, they are important expenses. At the same time, we have been seeing a drop in economic aid flows to sub-Saharan Africa. And if this continues to happen, the states of the continent will have to start covering their expenses themselves.“, Explain.
But even when talking about these challenges, van Trotsenburg he seems optimistic.
“Also – he adds – we must keep in mind that the world has progressed, although this is sometimes forgotten. In 1960, probably 60% of the world’s population was below the extreme poverty lines. In the mid-90s they were a third. Now they represent less than 9%”.
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“This is mainly because in Asia there has been a sharp decline. Also in Africa the percentage has reduced, although not as much. It is a big challenge, yes, but it can be achieved”, concludes the managing director.
EFE
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