Contrary to much criticism that NEPAD only focus on partnership with the outside world, and does not talk enough about intra-African partnerships, NEPAD does have clear political economy perspectives on the African dimension itself. NEPAD points out that the building of cross-border and trans-African road networks, railways and other means of transport and communication, and the consolidation of joint energy, water and other systems will be far more effective and beneficial than 'economies of scale. NEPAD calls for the creation of 'essential regional public good' in order to 'enhance regional co-operation and trade'.
NEPAD clearly placed a great deal of stress on 'capital flows' within Africa and from abroad. In NEPAD's own words, there is `…an urgent need to create conditions that promote private sector investment by both domestic and foreign investors'. NEPAD encourages 'the promotion of intra-African trade and investments' through 'the harmonisation of economic and investment policies and practices'. NEPAD offers 'great opportunities for investment', especially through 'public-private partnerships', as well as 'lowering the risks facing private investors'.
NEPAD proposes the establishment of a Financial Market Integration Task Force to 'speed up financial market integration'. NEPAD further calls for 'the deepening of financial markets within countries, as well as cross-border harmonisation and integration'. The 'co-ordination of national sector policies and effective monitoring of regional decisions', and `the promotion of policy and regulatory harmonisation', according to NEPAD, is necessary) 'to facilitate cross-border interaction and market-enlargement'.
NEPAD aptly recognises that most African economies are vulnerable because of their dependence on primary production and resource-based sectors'. African economies have 'narrow export bases' and they are in `urgent need to diversify production'. It is vital, says NEPAD, that African countries 'pool' or combine their resources within regional production strategies, and stimulate 'cross-border interactions among African firms', as well as cross-border inter-sectoral linkages'.
NEPAD speaks out against the 'absence of fair and just rules' as far as the global trading system is concerned, and seeks to address the 'unfavourable terms of trade' facing Africa. It also speaks out against 'biases in economic policy and instability in world commodity prices' that affect Africa negatively. As such, NEPAD seeks 'a new global partnership' and declares that international multilateral institutions and the world's most industrialised nations have an 'obligation' to negotiate more favourable terms of trade for African countries within the multilateral framework'. NEPAD further encourages African states to actively engage the multilateral system of rule and regulations being created and implemented under the World Trade Organisation (WTO). NEPAD also recognises 'the new trading opportunities that emerge from the evolving multilateral trading system.
On globalisation, NEPAD
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