INDIA 67

INDIA 67

-Dr.Debesh Bhowmik

India ranks 136 in Human Development Index which is 0.554.Although India was able to increase its HDI index at the rate of 1.5% per year during 2000—2010.Her GDP in 2011 is 3976.5 US dollar at ppp with base 2005 and per capita is 3203 US dollar in which health expenditure as percent of GDP become only 1.2%,education expenditure as percent of GDP is 3.1% and military expenditure as percent of GDP is 2.7% as per 2010. India’s adult literacy rate stood at 62.8% since its primary enrolment reached at 100 and secondary enrolment is as low as 60.0 because drop out in primary schooling becomes 34.2 which is too high although mean years of schooling is 4.4 years.India’s medical access to the people is not appreciable because underweight children at age 5 is still 42.5% ,mortality rate in cholera is 6, diabetes 0.336,immunization coverage 74%, and the availability of physician per 1000 population increased to 0.6 only.Therefore, India’s life expectancy at birth reached at 65.8years.The youth unemployment of India is very high of 11.5% where employment population ration is 61.0 and male and female labour force participation rates were estimated as 80.7% and 29.0% respectively showing its  child labour rate of 12.0% in spite of abolition of child labour through legislation act. Poverty is the Indian neighbor because 32.7% people is still living below the poverty line of 1.25dollar per day per person expenditure. So the intensity of deprivation did not fall below 52.7%.Even, the gender difference is so acute that gender inequality index was calculated as 0.610 whose rank stands at 132 in the world. India’s research and development expenditure as percent of GDP is very low of 0.8% where 75% is the electrification rate,3.2% is the personal computer users,7.5% is the internet users,59% is the telephone and mobile users only. The environment scenario of India is not praise worthy. She emits 1743 megaton CO2 in which per capita emission is 1.5ton.The growth of CO2 in India during last 5 years was found as 3.8% .India lacks forest area coverage for emission control amounting to 23% only and even 10.0% population is still living under degraded land.(Source-HDR-2013)

Therefore, the above statistical evidence can proof how we are and to what extent we have been achieved and to what we have to acquire for living towards the sustainable development path

GROWTH AND ECONOMIC INTEGRATION IN AFRICA

Growth and Economic Integration in Africa

--Dr.Debesh Bhowmik

The process of economic integration in Africa has been progressing quickly.While world’s growth rate is dwindling Africa’s growth rate is moving forward.World financial crisis had less effects in the trading and monetary blocs of Africa although the growth rates fell down marginally in 2009 from 2008 but a few countries showed negative growth rate as shown in EU and USA.The most successful blocs,namely ECOWAS and SACU have achieved more than 6% growth rate during 2004-2014.The exception is that the other successful bloc titled WAEMU had a good progress but showed less growth than ECOWAS and SACU. All the three blocs have made considerable progress on creating common currency.The trading blocs,SADC and EAC-5 which are based common rules of trade have shown more than 7% and 5% GDP growth rate respectively during 2004-2014.The COMESA, the sub-saharan African bloc had a stable average growth rate of more than 5%.The countries who are successful in forming CFA franc zone had recovered growth rate quickly after the crisis and crossed more than 6%.So, we may infer that the growth rate of GDP of African integrated blocs have achieved convergence.

The GDP per capita trends did not show as like as GDP growth rate because high population growth in African regions. Yet the central tendency towards convergence has not changed too much,even, the financial crisis did not turn the economies into recession. Economic and financial reform and other strong macro fundamentals helped the African blocs such that the trends of per capita GDP growth did not diverge from the equilibrium path .The ECOWAS and SACU had shown and average per capita GDP growth rate of 3-4% per annum while WAEMU had a good recovery including SADC but COMESA who had achieved a little progress on monetary integration grew more than 3% on per capita.  However, some blocs could not avoid negative per capita growth up till 2010.We can be sure about the shock on growth towards the process of convergence in the African regional trading blocs.The growth rate and per capita growth rate of GDP in the blocs of Africa gave a good signal and positive impact  in economic integration on the road map of single currency in African blocs where SACU and ECOWAS performed well but the performance of WAEMU is praiseworthy.  

AFRICAN CLIMATE POLICY

African Climate Policy

---Dr.Debesh Bhowmik

The lack of appropriate climate information is a major obstacle to addressing the challenges of climate change in Africa, and has led to calls by African leaders and development partners to improve the provision and use of appropriate climate information to promote planning for sustainable development in Africa.  As part of the effort to address climate change challenges in Africa, the Climate for Development in Africa Program was designed as a joint initiative of the African Development Bank, the Commission of the African Union and the United Nations Economic Commission for Africa.  The Program has been endorsed at regional meetings of African Heads of State and Government and by Africa’s Ministers of Finance, Planning, Economic Development, and the Environment. Its purpose is to explore actions required in overcoming climate information gaps, for analyses leading to adequate policies and decision-making at all levels.

The African Development Bank accepted the request from the AUC and UNECA to establish the ClimDev-Africa Special Fund  and to administer its resources for demand-led interventions. The Board of Directors of the Bank sought and received the approval of the Board of Governors for the establishment of the Fund.  The ClimDev-Africa Special Fund was established by the Bank’s Board of Governors on 27th May 2010.

The CDSF forms one of the three elements of ClimDev-Africa, the others being the African Climate Policy Center at UNECA, and the Climate Change and Desertification Control Unit at the AUC. They held its first annual stakeholder forum on Climate Change and Development in Africa (CCDA-I). The conference theme, “Development First: Addressing Climate Change in Africa,” reflected the need for integrating development and climate policies and emphasized the importance of African ownership of policy formulation and the decision-making process.

All of the three elements received mandates from the highest level of African Policy makers, Heads of Government and Ministers of Finance, Planning and the Environment. Each has its own set of formal documents in addition to the ClimDev-Africa Framework Programme Document (CFPD) which was developed by the ClimDev-Africa Secretariat to define the linkages between the three elements of the program.

The goal of the CDSF is to pool resources to contribute to sustainable development and, in particular, poverty reduction by preparing and implementing climate-resilient development programs that mainstream climate change information at all levels in Africa. The objective of the CDSF is to strengthen the institutional capacities of national and sub-regional bodies to formulate and implement effective climate-sensitive policies.

The ClimDev-Africa Programme Special Fund (CDSF) supports operations in the following three main areas: [i]Generation and wide dissemination of reliable and high quality climate information in Africa,[ii] Capacity enhancement of policy makers and policy support institutions to integrate climate change information into development programs; and [iii] Implementation of pilot adaptation practices that demonstrate the value of mainstreaming climate information into development.

The immediate beneficiaries are the group of “Policy Makers” that Clim Dev serves including Regional Economic Communities ; River Basin Organizations; National governments (including NMHs); Parliamentarians; and African negotiators. The ultimate beneficiaries are rural communities with climate sensitive livelihoods; communities vulnerable to climate sensitive diseases; communities dependent on uncertain water and other natural resources, communities at risk of disasters, and communities with poor energy access.

The fund has not yet become effective as the UA 20 million (approximately €22.4 million) required by the Instrument has not been secured. However, steps are well underway to operationalize the Fund including the opening of a bank account and the preparation of Operational Procedures Manual. The governance structure of the Fund consists of a) the ClimDev–Africa Programme Steering Committee  that reports to the Programme Executive Board which comprises the Chief Executives of the African Development Bank, AUC and UNECA; b) the African Development Bank Board of Directors, and its governance structure, and c) a CDSF Coordination Unit headed by a Coordinator. Overall decision-making with regard to CDSF operations will be carried out through two main organs: the Steering Committee and the Bank Board of Directors. For purposes of Programme Coordination, the CDSF Coordination Unit will liaise with the ClimDev-Africa Secretariat.

CDSF resource requirements for the three-year period 2012-2014 amount to €144 million to finance and manage 72 projects.  Whilst UA 20 million is required immediately for the Fund to become effective, the resource mobilization goal for 2012 is to secure the €32 million required to implement the 2012 work program. In order to acquire adequate and stable funding for CDSF, a high level resource mobilization strategy has been prepared for CDSF which will be carried out in collaboration with the Program partners over the coming years. The donor roundtable meeting is being organized by the ClimDev Africa Partners and is hosted by the Government of Sweden on the third week of April 2012 at the SIDA headquarters in Stockholm, Sweden as an initial and critical step to implement the resource mobilization strategy. The Swedish government has pledged to commit €7.5 million to a special fund of the Climate for Development in Africa Program (ClimDev-Africa) established to pool resources and finance demand-driven projects in Africa that intend to generate and disseminate climate information to all levels of society. This pledge and other expressions of interest and intent to partner with ClimDev-Africa in delivering objectives came during a high level roundtable hosted by ClimDev-Africa on 25 April 2012 in Stockholm, Sweden.

The current process for accessing resources from existing global climate funds is cumbersome and fraught with procedural hurdles that make timely delivery to needy African countries and regions difficult. The operational procedures of CDSF was designed to ensure a fast-track process for the review, approval and implementation of operations financed with the resources of the CDSF  and the experience and knowledge acquired by the Bank in administering similar funds. The design of the program takes account of lessons learned from previous continental exercises where institutional fragmentation impaired achievement.  The joint management arrangements, where AUC, ECA and African Development Bank collectively take decisions for the implementation of the activities seek to ensure institutional coherence.The Bank has over the years built strong partnerships with key climate institutions both within and outside the continent, and is currently providing support to ACMAD, ICPAC, AGRHYMET and other continental climate change initiatives.

To deal with overlapping sub-regional mandates, the operation of ClimDev-Africa will take account of ongoing assessments of the capacities and capabilities of the Regional Economic Communities and other sub-regional organizations. As a result, care will be taken in the implementation of the program to clarify mandates, build sub-regional capacity, and progressively build the involvement of sub-regional organizations within ClimDev-Africa’s operations.ClimDev Africa is a home grown African solution initiative to the overwhelming challenge of climate information, and the deep-reaching implications this issue has on sustainable development and green growth on the continent.

The grant will render the Fund operational and thus capable of financing projects already prepared regarding climate change and the prevention of risks linked to natural disasters in the five regions of the continent.  

The ClimDev-Africa Program was designed to collate, analyze and publish high-quality climate data. The data collected on climate change issues is made available to decision-makers and should serve as forecast instruments for natural disasters as well as for sustainable development policy-planning. The Investment Climate Facility (ICF) is a public-private initiative through which donors, international and domestic corporations as well as NGOs, collaborate with African governments and regional organizations, to improve the investment climate at the national, regional, and continental levels.The Facility was incorporated in Dar es Salaam, Tanzania, in April 2008 and work with other players in the field of investment climate enhancement by proactively identifying opportunities to develop programs that address important constraints on business throughout the continent.

ICF focuses on building the environment for investment by encouraging, developing, and working with coalitions for investment climate reform and supporting business community-government dialogue.  Getting the investment climate right and supporting governments in creating a legal, regulatory and administrative environment that encourages businesses at all levels to invest, grow and create jobs will lead to improving Africa's image as an investment destination through coordinated efforts.

The Facility supports the design and implementation of programs in eight areas that have been agreed on as priority constraints on the enabling environment. These are property rights, taxation and customs, infrastructure facilitation, competition, business registration and red tape, financial markets, labor markets, corruption, and crime.ICF supports legislative review and reforms; capacity building of key institutions such as land registry offices, company registries and commercial courts; promotion of public-private sector dialogue; implementation of recommendations of the NEPAD APRM (African Peer Review Mechanism) process; research as well as economic and sector work in the priority areas; and media work aimed at improving Africa's image as a place to do business.

The governing structure consists of two primary organs: the Board of Trustees (BOT) and its sub-committees; and the Management. A third organ supporting the Board and Management is the Technical Advisory Committee (TAC).The ICF's business plan calls for processing approximately 12 new projects each year. The size of projects varies from less than US$500,000 to over US $1 million. The CEO approves small-size projects (not exceeding US$ 500,000) while larger operations require the approval of the BOT. The ICF target projects that fill specific gaps in the programs implemented by other development partners. It will generally seek larger projects to gain economies of scale.

The first phase of the ICF's operations is driven by three strategic themes:[i]Intra-African trade ,[ii]Facilitating business development and expansion ,and[iii]Facilitating financial and investment environment .At the request of the Facility, the Bank plays two key roles - premier regional partner and financial resources administrator. The ICF's projected funding needs stand at US$ 550 million during its life-span (7 years) with an initial target funding level of US$ 120 million for the first three years of operation.

AFRICAN REGIONAL CO2 EMISSION

African Regional CO₂ Emission       

--Dr.Debesh Bhowmik

African CO₂ emission is neither discarded nor ignored in spite of that its emission is less than Asia or Euro Area or USA. In 2005 , Africa’s total CO₂ emission was 1048899 thousand metric ton which increased to 1148890 thousand metric ton in 2011 although the per capita emission had decreased from 1.2 to 1.1 during the period. The regional variation of emission was noticeable since the Central and East Africa emitted little amount than the other regions and the increment was not so much damaging. But, the North Africa and Southern African CO₂ emission were too high and the increment was also high from 2005 to 2011. Yet , the per capita CO₂ emission of those regions dwindled except in North Africa.

Southern African emission was 483624 thousand metric ton in 2005 which stepped up to 519661 thousand metric ton in 2011and North African emission was increased by 365616 thousand metric ton in 2005 to 434578 thousand metric ton in 2011 but its per capita emission had risen too. The most success story was that a reduction of emission was noticed in West Africa from 136563 thousand metric ton in 2005 to 113272 thousand metric ton in 2011.

The CO2 emission of African countries was also shown by trading blocs where African Monetary Union emitted from 206624thousand metric ton in 2005 to 232911 thousand metric ton in 2011 and its per capita emission rose marginally. The West African Economic and Monetary Union emitted from 20298 thousand metric to in 2005 to 23797 thousand metric ton in 2011 where per capita emission remained the same. The CO2 emission had dwindled in ECOWAS bloc from 136464 thousand metric ton in 2005 to 113121 thousand metric ton in 2011 and its per capita emission also decreased. The bloc SADC emitted from 489477 thousand metric ton in 2005 to 528855 thousand metric ton in 2011 in which per capita emission also reduced. The emission increased from 238339 thousand metric ton in 2005 to 299887 thousand metric ton in 2011 in the bloc COMESA where per capita emission was unchanged during the period. Therefore, the largest shares of emission were borned by the northern and southern Africa. The west African monetary union and west African States were able to reduce their emission . At a glance, the African States are more conscious about the impact of GHG and the climate change.I think , more efforts were taken in LULUCF and REDD in Africa and even adaptation is too high in those regions .It was recognized that women participation in reducing GHG in bio-diversity and adaptation principle was appreciable in Africa.Even , the building up of renewable energy in Africa is not negligible although the African people are more aware about the decrease in productivity in agriculture due to global warming. Lastly, the target of African states in reduction of GHG with in the planning framework of 2013-2022 is to be highly praised.