United Press International - September 11, 2002
Shihoko Goto, UPI Senior Business Correspondent

The slow progress is not due to lack of aid donor or recipient interest but from the sheer number of issues to overcome on both sides, Botswana's deputy finance minister, Boyce Sebetela, told United Press International this week.

"International gatherings discuss the same themes ... the same key issues," Sebetela said. He called for "less talk and more resources."

There has certainly been no shortage of dialogue. The United Nations hosted a 9-day conference on sustainable development in Johannesburg earlier this month.

More than 100 heads of state were among the nearly 60,000 people who discussed topics ranging from environmental protection to international trade.

The Johannesburg summit came only months after a U.N. meeting in Monterrey, Mexico, where the Bush administration announced that it would boost development assistance by $5 billion from 2004, increasing U.S. aid by 50 percent from current levels.

The South African conference, on the other hand, produced less concrete results, with no sweeping shift in foreign aid policy announced by any country or group.

Meanwhile, the International Monetary Fund and the World Bank hold their annual meeting here later this month, at which global financial leaders will discuss broad issues of international concern.

Isn't there just too much talk at expensive conferences, and wouldn't the money be better spent on projects that might raise living standards, at least for a few people?

"We need debate, and we need to be patient," Sebetela said. He said that developing and developed nations needed to reach a consensus on such topics as fighting AIDS, promoting trade and addressing basic human needs. "This takes time," he added.

Indeed, Sebetela said, while international commitment to Africa has increased, it has yet to yield any marked improvements.

"It can take three to five years for results," he said, adding that Botswana hasn't revised its budget in expectation of further international aid. The country expects a fiscal deficit this year after 6 years of balanced budgets.

Botswana has been an exception to the situation in Africa. It has achieved steady economic growth, with a solid, transparent government system. Gross domestic product rose an impressive 9.1 percent year-on-year in 2001. It has kept social spending relatively high while keeping foreign debt low.

But Botswana could do with more grants. "Grants can be given to kick-start initiatives," Sebetela said, adding that in Botswana's case, the funds could be used to reduce HIV/AIDS infection rates and diversify its economic base.

He emphasized that the epidemic had caused an economic as well as social drain for Botswana. One taxpayer now has to support 20 citizens, rather than 10, as before the epidemic.

The country could also use more aid to diversify its economy: about one-third of GDP comes from mining, particularly diamonds. The government would like to see a larger service sector, most notably by providing back-office services to multinationals.

The Bush administration, when announcing its decision to beef up foreign aid, stressed that it would provide more grants than loans.

Sebetela said that while grants were useful, countries should use them for specific targets -- such as in the development of specific projects -- and shouldn't depend on them for recurring budget expenses.

"Depending on grants puts you at the mercy of those grants, which is not sustainable," Sebetela added.

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