Tweah Calls for More Official Development Assistance for Africa

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Finance Minister Tweah says the world has still not grappled at the highest levels with the slow pace of global investment flows to Africa to close the large infrastructure deficit Africa faces.

— Addresses UN Forum virtually on Financing for Development

Minister of Finance and Development Planning Samuel D. Tweah, Jr. says there is a need to increase the share of Official Development Assistance (ODA) to Africa.

ODA is a category used by the Development Assistance Committee (DAC) of the Organization for Economic Co-operation and Development (OECD) to measure foreign aid. The DAC first adopted the concept in 1969. It is widely used as an indicator of international aid flow.

It refers to material resources given by the governments of richer countries to promote the economic development of poorer countries and the welfare of their people.

The donor government agency may disburse such resources to the government of the recipient country or through other organizations. Most ODA is in the form of grants, but some is measured as the concessional value in soft (low-interest) loans.

In 2019, the annual amount of state donor aid counted as ODA was US$168 billion, of which US$152 billion came from DAC donors.

However, Minister Tweah observes that Africa has received just 3.9 percent of Official Development Assistance (ODA) in the last six decades, despite being among the least developed regions of the world.

He said:  “In the last 60 years, more than US$33 trillion in Official Development Assistance has been spent to date in the world. Africa’s share of this ODA spending is a mere 1.3 trillion or 3.9 percent.  This begs the question which countries or regions of the world have been receiving the lion share of ODA since Sub-Saharan Africa is among the least developed regions in the world.”

Addressing the just-ended United Nations Economic and Social Council (ECOSOC) Forum on Financing for Development, Minister Tweah averred that the needed increase in ODA to Africa should form a part of a global framework that anticipates crisis and makes allocations for them even before they occur.

The Permanent Mission of Liberia to the United Nations statement is quoting Minister Tweah as saying that the world cannot be certain of the exact timing of a pandemic or a financial crisis, the international multilateral system can make annual provisions for the occurrences of these phenomena to move away from the current practice of crisis response. 

The global framework, according to Minister Tweah, should also consider moving toward pre-crisis multilateral resource allocation; and developing a more comprehensive framework for addressing private sector deficiencies in developing countries.

According to him, multilateral institutions should incorporate an expected crisis parameter in the formulas for determining allocation to countries under the current multilateral framework.  

Tweah added: “Where crises do not happen in a given year or period, these resources can be used to solve crippling development challenges facing low-income counties. We welcome similar formulas from the International Monetary Fund through the SDR system. We also welcome the shortening of the World Bank’s IDA cycle to 2 years as a form of post-crisis response. But we believe these must be standardized and made a permanent feature of a global anticipatory financing or allocated framework.”

He further explained that countries are only as strong to confront global epidemics or pandemics as the resilience of their respective private sectors. The world has still not grappled at the highest levels with the slow pace of global investment flows to Africa to close the large infrastructure deficit Africa faces. 

The post-pandemic order, he said, must aim to address these structural constraints to Africa’s private sector possibilities as the best response to any future pandemic on the continent. Africa is currently where Latin America was 40 years ago on a per capita income basis. This cannot and should not continue as part of the Post-COVID world order. 

Minister Tweah further stressed that COVID-19 has shown that health epidemics that impose devastating impacts on human lives and economies make no distinction between developed or developing countries; hence the post-COVID world order must take serious cognizance of this reality and ensure greater inclusion and equity in the framing of financing solutions. 

“Excellencies, I believe when we tackle issues, weaknesses, and inequities in the global financial system, we would move closer to the frontier of placing Sub-Saharan African countries on a path to financial sustainability and resilience in the face of global health pandemics or global or regional financial crises,” Minister Tweah emphasized.

The Liberian Finance Minister then used the occasion to thank the international multilateral system for its huge level of support to countries across Africa in the wake of the COVID-19 pandemic; especially through increased budget support to protect critical revenue, debt suspension initiatives, or support to deliver vaccines.

Minister Tweah noted that Liberia has received enormous support from all of its development partners, and it is grateful. 

The 2021 ECOSOC Forum on Financing for Development convened from April 12-15 and focused on driving high-level political engagement to advance priority actions that will set the world on track for recovery and beyond; and promoting sharing of concrete national, regional and global experiences, and initiatives on financing the Sustainable Development Goals (SDGs) in a rapidly evolving context.

2 COMMENTS

  1. More official development assistance to Africa, YES!
    But not to the African satraps, as the money will return right where it came from. It may transit in Africa just on paper but transfer from the assistance account into the Hebrew Boys’ (Weah, Tweah and McGill) accounts in the USA.

    More official development assistance to Liberia, YES BUT NOT NOW!
    Or else we will find ourselves paying debts in the future that we did not make use of.

    Pro-poor = Our time to eat too!
    CDC’s Platform = The Pro-Pocket Agenda for the Pauperization and Dehumanization (PPAPD) of Liberia.

    Poor and helpless people, when will this too come to an end?

  2. Perhaps Tweah should go find that $25 million mop-up money they stole and use it to fund projects. These bunch of thieves want other people’s money to steal because they have stolen all of theirs. What a bunch of losers.

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