TAILIEUCHUNG - Africa’s Future and the World Bank’s Role in it

The original BLS commercial banking output index in- cluded the number of transactions occurring in three main areas of banking activity: deposits, loans, and trusts. 14 For deposits, output was based on the number of time and sav- ings deposits, checks cleared, and electronic funds transfers. For loans, output was measured as the number of real estate loans, consumer loans, commercial and industrial loans, and credit card transactions. The output of trust accounts was measured by the number of accounts, including employee benefit funds, personal and agency trusts, and estates. Over the years, BLS has added activities such as ATM transactions, money. | Africa s Future and the World Bank s Role in it Introduction For at least four reasons Africa in 2010 has an unprecedented opportunity for transformation and sustained growth. First until the onset of the global economic crisis economic growth was averaging 5 percent a year for a decade accelerating to 6 percent for 2006-8. Growth was widespread some 22 non-oil exporters had 4 percent or higher growth from 1998-2008. While Africa was badly hit by the global crisis thanks to prudent macroeconomic policies and financial support from multilateral agencies the continent avoided an even worse growth shortfall in 2009 and has rebounded in 2010. Second alongside the acceleration in growth progress on the MDGs has been sufficiently rapid that many countries such as Malawi Ghana and Ethiopia are likely to reach most of the goals if not by 2015 then soon thereafter. Africa s poverty rate was falling at one percentage point a year from 59 percent in 1995 to 50 percent in 20051. Child mortality rates are declining HIV AIDS is stabilizing and primary completion rates are rising faster in Africa than anywhere else. Third Africa s private sector is increasingly attracting investment with much of the funding coming from domestic banks and investors. Returns to investment in Africa are among the highest in the world2. Success of ICT especially mobile phone penetration shows how rapidly a sector can grow. Private capital flows are higher than official development assistance and FDI is higher than in India . China India and others are investing large sums in Africa. Fourth the climate for market-oriented pro-poor reforms is proving robust. Although the payoffs to economic reforms fell during the global crisis policymakers continued with prudent economic policies even in the face of contradictory policies elsewhere because the public demanded them. The voice of civil society is increasing as evidenced by Uwezo on education in Kenya citizen report cards in Ghana and the various groups

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