Ahead of the 2010 G20 Seoul summit, Doha Abdelhamid* draws attention to the missing development agenda The global financial crisis which first erupted in the United States financial markets has exposed the systemic fragility, weak regulation and impaired governance that permeate both the developed and developing worlds. The crisis has been addressed by governments and regulators from around the world, especially the G20 member states that control around 85 per cent of the world's gross domestic product (GDP), manage 80 per cent of trade and constitute two-thirds of the world's population. But in spite of some signs of recovery, developing countries believe that results are far from satisfactory on the pro-poor growth and sustainable development tracks. With that in mind, during the June 2010 Toronto Meeting, the G20 stood as one with Africa, the richly-resourced yet poorest continent of the world. North American, European, East Asian countries and Australia tend to dominate the G20 club. Only one Arab state, namely the Kingdom of Saudi Arabia, has been classified under the Western Asia grouping, while not one North African country is represented. In order to have a fair representation and contribution by the world groupings in the global economy, invitations to anchor countries from the Middle East and North Africa (MENA) should be considered now. Indeed, Egypt, Morocco and Jordan are ideal candidates to play a strategic role in the G20 assembly. The dilemma of both African and Arab states is two-pronged. Both African and Arab countries possess a wealth of human and natural resources, as well as financial capital. Yet development in Africa and the Arab world alike meets neither the ambitions of the population nor the demands of the global economy. Because of African and Arab states' introverted nature, as evidenced by their relatively immature financial markets and strong traces of socialist policies applied for decades, they were to some extent shielded from the effects of the global crisis by stringent man-made regulatory walls which have to this day blocked the efficient market hypothesis (EMH) from flowering. But this policy option, in fact, remains suboptimal, as it means that many Africans and Arabs do not see their potential development and aspirations satisfied. In order for the development potential and universal well-being of the people of the MENA region to be fully realised, an appropriate culture of governance that fosters a transparent, healthy business climate able to generate synergies in the physical and financial economy is required. But what exactly is required? In order for GDP to grow and therefore lift the economies of African and Arab countries, enough jobs need to be generated in order to meet the employment demands of the regional youth boom. Natural resources too need to be managed and utilised appropriately, while corruption must be curtailed in line with the United Nations Convention Against Corruption and Organisation for Economic Cooperation and Development (OECD) principles. Quality regulation should also be introduced and enforced at a low cost, while subsidy policies should be designed to meet the needs of the poor. Standards for labour productivity and performance must be in place and red tape needs to be minimised. In general, synergy between global, regional and national governance should be the cornerstone for MENA in the post-crisis environment. As things currently stand, African and Arab countries suffer from outdated government systems. Existing systems emphasise seniority and intricate hierarchical power structures that focus power on the central government, while little attention is paid to local governance. This has stunted growth and generated opaque pockets of corruption. In the developing world as a whole, there does not seem to be a serious approach to civil service reforms, or to improving government apparatus performance. There need to be adequate systems in place in order to measure governments' impact on business, investment, trade flows, income levels and distribution, poverty, resource efficiency, climate change and hence sustainable development. And the Seoul development agenda too appears to completely ignore governance and civil service reforms in the developing world. The other item which is also closely related to global, regional and national governance has to do with tracking changes, interventions and consequences, that is to say, development monitoring and evaluation. Many African and Arab countries do not have decentralised participatory planning mechanisms for development, with some limited exceptions, as a result of paternalistic, autocratic legacies. The majority of overseas development assistance is secured through closed-door negotiations between governments and donor agencies, with only some pressure brought ever since the Monterrey and Washington meetings. The Paris Declaration, the Accra Agenda for Action and the African Union are all filling gaps in this area, yet plenty of work to institutionalise and encourage governments to embed development monitoring and evaluation (DME) systems is needed. This process can be achieved through dialogued, clear-cut public policy conditions, tied to policy-based credit offered to governments or direct budget support instruments. It is generally recognised that African and Arab countries' buoyancy measures in the aftermath of the global financial crisis will have to do mainly with the rules of the game and operations in the classical physical markets -- with a focus on the areas of intellectual property rights, antitrust laws, consumer protection, and so on -- rather than be focussed on the financial markets. Many Arab and African countries have yet to develop their presence on financial markets and have made little progress in this area. In order to generate income using physical and human resources, development must be geared towards improving the structures of government bureaucracies and their performance. Reforms must be designed to ensure they respect citizens' human rights while enhancing the population's well-being. Fair-pay policies, decent working conditions and a healthy work environment, structured capacity building efforts, applied work standards, and an overarching independent system to monitor and evaluate the impact of those comprehensive changes on sustainable development are necessary prerequisites for the rejuvenated economic regimes of developing countries in the post-crisis world. Investing in well-researched, regional investment infrastructure projects such as roads, marine and navigation development, energy and liquefied natural gas, and pharmaceuticals are all worthwhile for stakeholders in development, from banks to governments and citizens, businesses and civil society. Indeed, an improved, democratic governance environment in which mutual accountability is emphasised, the role of civil society is very important. This role involves advocacy efforts that help push the borders of knowledge, create awareness and professionalise DME in the MENA region. Finally, the French initiative under the Franco-Egyptian leadership project known as the Union for the Mediterranean must be encouraged and supplied with the necessary G20 funding. The union works to encourage mutual benefits for the Mediterranean basin and reinvigorates hopes for the staggering Middle East peace process by ensuring sustained development and improved governance in the developing world. * The writer is resident representative of the International Development Evaluation Association and visiting professor of Financial Economics, Cape Breton University.
