PRSP critique
Current macroeconomic frameworks, challenges and alternatives for the attainment of the Millennium Development Goals (MDGs)
Are alternatives to neo-liberalism needed to meet the MDGs in southern Africa?
Authors:
J. Chipika
Publisher:
Southern African Regional Poverty Network , 2007
This paper discusses policies that have inhibited the achievement of the Millennium Development Goals in the Southern African Development Community (SADC) regions. Specifically, the paper argues that neo-liberal structural adjustment policies (SAPs) have exacerbated poverty in the region and that there is a need to balance the role of the private and public sector if the MDGs are to be achieved.
The paper points to a number of negative experience and outcomes of structural adjustment in the 1980s. It describes that economic growth is stagnant or declining in many countries and poverty is increasing the context of rising inflation and unemployment. In addition, food shortages have increased particularly in Southern Africa, due to the combination of natural and policy related factors, and HIV and AIDS has ravaged the sub-continent.
The paper outlines a number of economic alternatives to structural adjustment which have emerged in the region including:
- the Lagos Plan of Action for the economic development of Africa
- the United Nations Programme of Action for Africa’s Economic Recovery and Development
- the African Alternative Framework to Structural Adjustment Programme for Socio-Economic Recovery and Transformation
- New Partnership for Africa’s Development
The paper argues that a number measures are needed to meet the MDGs in the SADC region, which include:
- SADC governments should have clear political will to implement economic strategies aimed at achieving sustainable growth and development, and attainment of the 2015 MDG targets
- SADC governments should clearly align their national budgets with national development priorities as reflected in their strategic macro-economic frameworks and other kept policy documents
- the SADC region should pursue comprehensive agrarian reform programmes that include land re-distribution, support to improved agricultural productivity, environmental conservation and creation of decent employment opportunities
- there is need to actively promote value addition in support of the growth of a strong manufacturing sector in the region
- strategies are needed to ensure the efficient and sustainable utilisation of natural resources including water, minerals and tourist attractions
- more aid and public spending must be allocated toward the fight against HIV/AIDS
- social protection measures must cushion those that may be negatively impacted on during adjustment processes
- steps must be taken toward economic regional integration



