Brookings: Experts - Ngozi Okonjo-Iweala

The Impact of the Financial Crisis on Africa

Fri, 13 Feb 2009 12:00:00 -0500

Event Information

February 13, 2009
12:00 PM - 2:00 PM EST

The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC

On February 13, 2009, the Brookings Global Economy and Development program hosted a luncheon to introduce Dr. Ernest Aryeetey, Director of the new Africa Growth Initiative, and to discuss the impact of the financial crisis on Africa. The Africa Growth Initiative was launched in the fall of 2008 with specific goals of promoting growth and employment in Africa through collaboration with the African policy community. Dr. Aryeetey spoke about how African governments are dealing with the current crisis and the prospects for growth on the continent in light of setbacks.

Dr. Aryeetey was also joined by a set of distinguished panelists who further commented on the particular difficulties that African economies are now facing and ways in which African policymakers and the international community can mitigate the damage. Following remarks, the panelists joined the roundtable participants in additional discussion.

Transcript

Transcript (.pdf)

Event Materials

20090213_africa

Participants

Panelists

Mwangi Kimenyi

Nonresident Senior Fellow, Global Economy and Development

Improving Health Statistics in Africa

Ngozi Okonjo-Iweala and Philip Osafo-Kwaako — Sat, 03 Nov 2007 12:00:00 -0400

The Lancet's Who Counts? Series^1-4 raises important issues about the relevance of statistics for effective health-care delivery in developing countries. The availability of statistics is crucial in the fight against poverty, and is a necessary starting point to quantify outcomes needed to monitor and measure progress towards the Millennium Development Goals. The lack of reliable and good-quality statistics is a major obstacle to assessment of changes in development indicators in many African countries. In particular, health indicators remain of major concern: many African countries with inadequate statistical capacity and measurement systems are also some of the countries worst hit by deadly diseases such as HIV/AIDS and malaria. The lack of health statistics ranges from poor systems for civil registration to poor data on immunisation and child mortality rates.

A World Bank review of 125 middle-income and low-income countries with populations greater than 1 million illustrates this point.⁵ The countries were assessed for adherence to key international statistical methods and standards of good practices. About 60 countries in the survey—most in sub-Saharan Africa, except for Afghanistan—did not reach the midpoint score. Additionally, the World Bank noted that half the population of African countries had not recently been included in a census.

The absence of statistics in many African countries is both a symptom and a cause of underdevelopment. Improvement of statistical systems is crucial in developing countries for three main reasons. First, without adequate capacity for obtaining statistics, assessment of the magnitude of the development problems to be faced is often impossible. Second, if we get the numbers wrong, tackling development problems effectively is difficult. Scaling up of interventions becomes difficult and resources might be allocated away from more pressing issues. Thus, in this case, we risk solving the wrong problem or solving a problem in the wrong way. Third, without adequate statistics, assessment of the effectiveness of various programmes after implementation becomes difficult.

The absence of statistics has immediate implications for policymakers. In many African countries, evidence about the prevalence of child and maternal mortality and about the lack of access to health services is anecdotal. Yet without reliable information, government officials who allocate resources for health budgets in such countries are essentially working in the dark. The low quality of statistics results in adverse outcomes, such as underfunding and poor monitoring of many development programmes.

This Series highlights the importance of improving health statistics with an emphasis on civil registration systems, which provide records of births, deaths, and the causes of death. We agree with the Series authors that many developing countries and donor agencies have not adequately made a priority of collecting health or social data, compared with other statistical systems for gathering economic data. Data on gross domestic product and inflation in most developing countries are probably better estimated than for maternal mortality rates. In our experience, the quality of social statistics (compiled by both governmental and international agencies) in countries such as Nigeria is wanting. For example, we question data for the low life-expectancy (at birth) in Nigeria of about 47 years,⁶ which in our view underestimates the empirical reality. Casual empiricism based on our observations in various parts of Nigeria suggests that life expectancy tends to be a few years higher, particularly given Nigeria's low and declining HIV/AIDS prevalence rates compared with other African countries.

Strengthening statistical capacity in developing countries will need a concerted effort from governments there, from donors, and from multilateral institutions. Governments and donors must view reliable data as an important tool in the development process, and must invest both financial and human resources in strengthening their statistical systems. The Who Counts? Series is therefore most welcome, especially if it can spark a broader debate about the importance of statistics in development.

We declare that we have no conflict of interest.

References

¹ Setel PW, Macfarlane SB, Szretzer Son behalf of the Monitoring of Vital Events (MoVE) writing group. A scandal of invisibility: making everyone count by counting everyone. Lancet 2007; 370: 1569-1577. Abstract | Full Text | Full-Text PDF (182 KB)

² Mahapatra P, Shibuya K, Lopez AD, et al. Civil registration systems and vital statistics: successes and missed opportunities. Lancet 2007;
published online Oct 29, 2007. DOI 10.1016/S0140-6736

³ Hill K, Lopez AD, Shibuya, et al. Interim measures for meeting needs for health sector data: births, deaths, and causes of death. Lancet 2007;
published online Oct 29, 2007. DOI 10.1016/S0140-6736

⁴ AbouZahr C, Cleland J, Coullare F, et al. The way forward. Lancet 2007;
published online Oct 29, 2007. DOI 10.1016/S0140-6736

⁵ World Bank. Building statistical capacity to monitor development progress. 2002:
http://siteresources.worldbank.org/SCBINTRANET/Resources/239410-1113334813340/board-paper-feb4.pdf
(accessed Oct 29, 2007)..

⁶ World Bank. World development indicators database. 2007:
http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:21298138~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html
(accessed Oct 29, 2007)..

Re-used with permission from Elsevier (The Lancet 2007; 370:1527-1528)

Authors

Ngozi Okonjo-Iweala
Philip Osafo-Kwaako

Publication: The Lancet

Ministries of Finance and Civil Society Organizations: Friends or Foes?

Thu, 18 Oct 2007 13:30:00 -0400

Event Information

October 18, 2007
1:30 PM - 4:00 PM EDT

Kenney Auditorium
Johns Hopkins School of Advanced International Studies (SAIS)
1740 Massachusetts Avenue, NW
Washington, DC

Civil society organizations (CSOs) can play an important role in enhancing transparency and good governance in developing countries, particularly on issues surrounding the formulation and implementation of government budgets and greater transparency of public revenues. Too often, however, CSOs are viewed by governments as political adversaries and policy lightweights. More effective participation of civil society groups on fiscal transparency will require strengthening the capacity of these organizations to participate on these issues. At the same time, senior government officials must welcome the increasing involvement of civil society as an opportunity to increase debate on public finance issues.

On October 18, Brookings hosted Dr. Ngozi Okonjo-Iweala, distinguished visiting fellow with Global Economy and Development, who was recently named Managing Director of the World Bank, for a presentation of her paper titled The Role of Civil Society Organizations in Supporting Fiscal Transparency in African Countries. Dr. Okonjo-Iweala was joined by several African finance ministers and representatives from African CSOs. Global Economy and Development Senior Fellow Charles Griffin introduced and moderated the discussion.

Transcript

Transcript (.pdf)

Event Materials

20071018

Participants

Moderator

Panelists

Warren Krafchik

Director, International Budget Project, Center on Budget and Policy Priorities

Shamsuddeen Usman

Minister of Finance, Nigeria

Jean-Baptiste Compaore

Minister of Finance, Burkina Faso

Goodall E. Gondwe

Minister of Finance, Malawi

Anthony Akoto Osei

Minister of State at Ministry of Finance, Ghana

Gilbert Maoundonodji

Coordinator, Group for Alternative Research and Monitoring of the Chad-Cameroon

Aloysius Toe

Executive Director, Foundation for Human Rights and Democracy

The Fight Against Global Poverty and Inequality: The World Bank's Approach to Core Labor Standards and Employment Creation

Ngozi Okonjo-Iweala — Wed, 03 Oct 2007 12:00:00 -0400

Thank you Mr. Chairman, I am very honored to be here today and to testify before you on this very important issue. You have already done my task for me of explaining that I see this from different and multiple angles, but most of all I think the value I can bring to this hearing is speaking from the point of view of a policymaker who has had to struggle with the issues that are being discussed and with the kind of recommendations that are being talked about in the Doing Business Report. And I must say that I am somewhat taken aback by the interpretations that I've heard about this report instructing countries to do things in certain in ways, because that is certainly not the way, on the ground, that we saw this report when I was Minister of Finance in Nigeria and had to work with it everyday.

First of all, as countries, we increasingly like to make our own policies in the context of our own circumstances and therefore, I think we see these reports as providing additional information and not as instructions or conditionality because that is not the best way to work with us, with our countries.

The Doing Business Report has served as a very useful guide in terms of looking at those things that a country can do to enhance its position in terms of creating jobs. And I think that what has happened is that looking at it perhaps on the World Bank side, is this struggle between protection of workers and flexibility for the labor market. This is an everyday struggle that we have and the way we read the report is as a report that is trying to give information on balancing that very complex difficulty of how do you ensure that you have an economy and a labor market that is flexible enough so that jobs are being created.

The biggest problem we face in our countries is the creation of jobs. More than 50 percent of our population is under the age of 25, and if we don't work hard to look at creating jobs for these youths we will have problems, even more serious problems of inequality, which the honorable Chairman referred to. But we do not see that we can create these jobs on the back of our workers. No country ever grew or will ever grow on the back of unhappy workers. So, we have always paid attention to how we can improve this situation with our workers, making sure we apply the minimum codes and standards which my country has signed up to.

And I hate to say that we are not there yet in Nigeria, that we have a ways to go in terms of implementing, but really that is our objective, which we don't see as contradictory to creating jobs but rather, we need to maintain this flexibility in labor market while still making sure our workers have enjoyed the minimum standards and codes that we have signed up to at the international level.

And therefore, I am surprised from the point of view of a practitioner to hear that this is the way the Doing Business Report is seen, because we certainly do no see it as such, we see it as an important guide which we factor, as one more element, in our decision making and we have to make our own codes and rules in the country and observe our own particular situation and decide what will be most favorable for our workers.

We also see that in the report there are many counties that observe high codes and standards for labor but are also "tops" in terms of doing business. So we really don't see this as contradictory. The United States ranks very high, Denmark ranks very high, and many other countries rank very high in doing business and treating workers well. So, this is not a contraction for us, what we have to do is find what policies are good for our country that will enable us to get workers employed so that we can attack poverty and deal with the increasing problem of inequality that the honorable Chairman referred to, while at the same time making sure that our workers have the basic treatment that they need.

So, I want to submit that the report is an ingredient in the decision-making of developing countries. We do not regard it as instructions to us to do one thing or the other and I think in the modern era, this idea of conditionality (getting the bank to make countries do things as a condition for getting its loans) doesn't work anymore. Countries have to believe in what they are doing. And we believe in decent standards for our workers. And second of all, we don't see a contraction between being a good country that respects workers and creating jobs and I think that this is what the report is trying to do.

Thank you very much Mr. Chairman.

Authors

Ngozi Okonjo-Iweala

Publication: House Committee on Financial Services

Africa's Economic Successes: What's Worked and What's Next

Thu, 02 Aug 2007 12:00:00 -0400

Event Information

August 2, 2007
12:00 PM - 12:00 PM EDT

The 2007 Brookings Blum Roundtable featured an informal evening keynote discussion on Africa’s recent period of unprecedented economic growth. Focusing on the continent’s economic success stories, African Development Bank president Donald Kaberuka and former Nigerian finance minister Ngozi Okonjo-Iweala offered fellow participants insight into what’s working and what reforms must be made if the continent is to continue on its pro-growth course.

Participants

Moderator

Paul Martin

former Prime Minister of Canada

Panelists

Donald Kaberuka

African Development Bank

Giving People Voice through Opinion Polling: Lessons from Nigeria

Thu, 26 Jul 2007 12:30:00 -0400

Event Information

July 26, 2007
12:30 PM - 2:00 PM EDT

Room 1026/1028
SEIU
1800 Massachusetts Avenue, NW
Washington, DC 20036

In many developing countries, lack of adequate information means that government policy-makers are often unable to ascertain public opinion on important economic, social, or legislative issues. Nigeria provides a case in point. With a population of 140 million and a decentralized government structure of 36 states, a federal capital territory, and 774 local governments, a major challenge exists in ensuring good governance at different tiers of the Nigerian government. To address this knowledge gap, Dr. Ngozi Okonjo-Iweala founded NOI Polls and partnered with the Gallup Organization to conduct a major opinion poll in Nigeria.

On July 26, Dr. Okonjo-Iweala, distinguished fellow at Brookings, discussed some of the results of the first NOI/Gallup poll conducted in February 2007. This initial survey examined topical issues such as the best form of government in Nigeria, the level of confidence in government institutions, and the Niger Delta. Dr. Okonjo-Iweala discussed major lessons learned from this initial survey and additional issues to be examined in future opinion polls in Nigeria. Charles Griffin, a Senior Fellow at Brookings, introduced and moderated the discussion.

Transcript

Transcript (.pdf)

Event Materials

Participants

Moderator

Panelists

The World Needs a Stronger World Bank

Ngozi Okonjo-Iweala — Fri, 25 May 2007 00:00:00 -0400

As a former World Bank staff member and as one who worked with the bank while finance minister of Nigeria, I have watched with growing sadness the many recent criticisms of this institution.

By no means is the World Bank perfect. I agree with those, many of them within the bank, who feel reform is overdue. Yet I cannot agree with those who question the need for such an institution today.

There is no doubt that we need the World Bank. It has a strong future, and it has a mandate that it must fulfill in helping the two billion people still living on less than $2 a day.

It can only do so, however, if the countries that it serves feel true ownership of the institution. Why were there no voices raised from the developing world during the recent crisis against the damage being done to an institution with such a noble and critically important mission?

Perhaps it is because developing countries feel they have so little voice at the bank, despite being the very reason for its existence. It is clear that the governance structure at the Bank must be addressed; that developing countries must feel they have a stake in its policies and its work.

In these days, it is too easy to overlook how much we need the World Bank. Developing countries are diversifying their sources of finance and aid; that is common sense, and the Bank will have to ensure it is competitive.

However, what is not as widely available is the knowledge and experience the Bank bundles with its finance. Many emerging economies with access to capital markets still turn to the bank for help because its staff has tremendous experience in addressing problems that have no regard for national borders.

Knowing that expertise is there, I can say from experience, is important to many countries.

We know the terrible toll diseases like HIV/AIDS, tuberculosis and avian flu are exacting on the world's most vulnerable people; the bank supports local and global efforts to contain their spread.

We also need global solutions to the challenges posed by climate change, and the bank already has a depth of experience that makes it an obvious ally in confronting this problem.

Many people also have forgotten the other role that the World Bank plays in times of great financial distress in the world.

There were no questions about the bank's relevance during the peak of the Asian financial crisis in 1997-98, when the Bank provided $10 billion in emergency financing to Indonesia, South Korea and Thailand. It should not take another financial meltdown in some part of the world for the bank's value to become clear again. Of course, the bank itself - its shareholders and its staff - are the keys to its own recovery from the current controversy.

The shareholders must focus on the corporate governance of the bank. Everything from the management selection to management structure to clarity on the role and operation of the board must be reexamined and reformed. Openness, transparency, and merit should be the bywords in doing such reforms.

Above all, the bank must move quickly to safeguard its greatest asset - its staff. I know from experience that the people working for the World Bank are among the most competent and committed of any working in development in the world, and they have unparalleled experience to offer. I know personally that Bank staffers will favor reform - in fact will demand it - if they are convinced it will enhance the work they do to assist the poor people of the world.

The World Bank has so much to offer the world. But it needs to adapt, it needs to be flexible in a changing world. The excruciating experience it is going through can be turned to good if it is seen as an opportunity for true change and reform.

Authors

Ngozi Okonjo-Iweala

Publication: International Herald Tribune

Nigeria's Economic Reforms: Progress and Challenges

Ngozi Okonjo-Iweala and Philip Osafo-Kwaako — Fri, 23 Mar 2007 00:00:00 -0400

Following years of economic stagnation, Nigeria embarked on a comprehensive reform program during the second term of the Obasanjo administration. The program was based on the National Economic Empowerment and Development Strategy (NEEDS) and focused on four main areas: improving the macroeconomic environment, pursuing structural reforms, strengthening public expenditure management, and implementing institutional and governance reforms.

This paper reviews Nigeria's recent experience with economic reforms and outlines major policy measures that have been implemented. Although there have been notable achievements under the program, significant challenges exist, particularly in translating the benefits of reforms into welfare improvements for citizens, in improving the domestic business environment, and in extending reform policies to states and local governments. Consequently, we argue that the recent reform program must be viewed as the initial steps of a much longer journey of economic recovery and sustained growth. This paper concludes by outlining a number of outstanding issues that future Nigerian administrations must address.

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Authors

Ngozi Okonjo-Iweala
Philip Osafo-Kwaako

Civil Society and Improved Governance in Developing Countries

Tue, 20 Mar 2007 10:00:00 -0400

Event Information

March 20, 2007
10:00 AM - 5:30 PM EDT

Falk Auditorium
The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC

In recent years, a consensus has developed that institutional development is key to both faster economic development and policies that contribute to improved conditions for the poorest members of society. A result has been an increased emphasis by donors and development specialists on democratic processes, governance, transparency of public institutions, and anti-corruption policies. These efforts increase the "supply" of accountability mechanisms. More recently, there has been a realization that the domestic "demand" for accountability by voters and civil society entities (such as community groups, research institutes and independent media organizations) is at least as important.

On March 20, Brookings, the Johns Hopkins University Paul H. Nitze School of Advanced International Studies (SAIS), and The International Budget Project sponsored a conference on improved governance with a focus on the role civil society organizations can play in analyzing and advocating for better policies, especially in the area of public expenditures. Francis Fukuyama, the Bernard L. Schwartz Professor of International Political Economy and director of the international development program at SAIS, gave a keynote address before the second panel in the afternoon.