on e-registration of land ownership, providing accurate and reliable data on land, housing, and farming activities. Such registration has made it possible for banks to offer farmers loans with which to improve agriculture. Ultimately the application of ICT can help to increase transparency and reduce transaction costs for trade and service delivery, as well as increase the scope for good governance.
Trade and Development One of the greatest challenges, indeed, imperatives, facing leaders of the first category of countries is not just the attainment of Millennium Development Goals, important as they are, but, equally important, how to wean their countries off dependence on external aid. This should now be a priority for them. This implies not only a conducive investment regime but also equally improved capacity for domestic revenue generation. Clear targets have to be set by which year-after-year domestic revenue yields would enable these countries to meet most of their budgetary needs from their own economies. To succeed, this requires a very high level of political commitment and clarity of vision. Increasing domestic revenues requires expanding the tax base, and not everyone would be glad to be caught in the tax initiatives net. The outside world has a role as well. In the medium term, most sub-Saharan African governments would depend on tariffs to enhance their revenues. If the rich industrialized countries want Africans to reduce their dependence on aid, and hence develop with dignity, they should not impose on Africa conditions, the effect of which is to undercut Africa’s revenue base. It is true there are long-term benefits in trade liberalization and open markets. But Africa needs gradual, managed trade liberalization, and it needs leaders who can articulate and defend this position, in addition to arguing for “fair” rather than simply “free” trade. A recent study commissioned by the United Nations Economic Commission for Africa looked at the economic and welfare impacts of the EU-Africa Economic Partnership Agreements and, although mindful of their imperative and importance, strongly discouraged the adoption of full reciprocity in trade liberalization between the two groups of countries. The report says that “full reciprocity will be very costly for Africa irrespective of how the issue is looked at, in terms of revenue losses, adjustment costs associated with de-industrialization and its undermining effect on regional integration” (ECA 2006). If the EU is truly eager to help Africa develop through production and trade, it should not impose on Africa policies that in effect undermine Africa’s capacity to produce competitively and trade. It would be scandalous for the World Trade Organization (WTO) to demand compliance with reciprocity requirements, especially for least developed countries.
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