Transcript Stability and Economic Prosperity in West Africa: Côte d Ivoire's Contribution Alassane Ouattara President of The Republic of Côte d'ivoire Chair: Dr Robin Niblett Director, Chatham House 27 July 2012 The views expressed in this document are the sole responsibility of the author(s) and do not necessarily reflect the view of Chatham House, its staff, associates or Council. Chatham House is independent and owes no allegiance to any government or to any political body. It does not take institutional positions on policy issues. This document is issued on the understanding that if any extract is used, the author(s)/ speaker(s) and Chatham House should be credited, preferably with the date of the publication or details of the event. Where this document refers to or reports statements made by speakers at an event every effort has been made to provide a fair representation of their views and opinions, but the ultimate responsibility for accuracy lies with this document s author(s). The published text of speeches and presentations may differ from delivery.
HE Alassane Ouattara: Excellencies, dear friends, Ladies and Gentlemen. I would first like to thank Dr Robin Niblett and Mr Alex Vines for giving me the opportunity to be here today in this prestigious institution of this great country, the United Kingdom. I have been asked to share my views with you on the Prosperity and Economic Stability of West Africa and the contribution of my dear country, La Côte d Ivoire. This conference is taking place at a critical juncture in the history of the world. Some say that a new world is emerging with the rise of new super powers and the increasing role of emerging countries in international relations and transactions. A new map of balance of power is being drawn up, calling for a strengthening of world governance that should better reflect the new realities of today s world. We are witnessing a new continental drift but not as it is usually understood. Instead of drifting away from one another, our continents are in fact drawing closer together thanks to international transactions and new technologies. Today, in part due to the internet, a new generation is on the rise: a generation of citizens of the world aspiring to more liberty, more justice and more equity, as the Arab spring and the Wall Street movement have amply demonstrated. But it is also a world characterized not only by the globalization of trade and financial transactions but also unfortunately by illicit transactions, terrorism, and the trafficking of human beings. Under this new paradigm, the voice of Africa needs to be heard as the events unfolding on this rising Continent will surely have a profound impact on tomorrow s world. The security of the Western world is increasingly dependent on the security and the development of Africa, while the emerging Asian countries are increasingly dependent on its vast natural resources including its yet untapped agricultural lands. Ladies and Gentleman, in my speech I would first like to briefly describe a few facts that lead me to think that Africa, including West Africa, are on the rise. Then, taking the example of West Africa, I will tell you why I think regional integration is key to its stability and economic prosperity. Before concluding, I will underline the critical role of Côte d Ivoire as an engine of growth and stability for the sub-region. After decades of Afro-pessimism, we are now witnessing a flurry of Afrooptimism. The Lions of Africa are catching up to the Asian tigers while leaving behind a number of South American lamas as well as a number of www.chathamhouse.org 2
Arabian horses galloping in the midst of a jasmine revolution. In the meantime old Europe is struggling with a crisis of its own and the United States is caught in its presidential election, the results of which will certainly have an impact beyond its borders. Even China s growth rate is slowing down, though it is still above 7%. Ladies and gentlemen, sub-saharan African countries have achieved a remarkable economic growth beyond 5 % in the last decade, despite the multiple crises that have affected the USA and the European Union. The rate of growth of the Economic Community of West African States (ECOWAS) is similar. As you know, the ECOWAS is a regional group of sixteen countries founded in 1975. It includes more than one third of Africa s population and about one third of its GDP. This rate of economic growth ranks Africa behind Asia and ahead of all the other regions of the World. Furthermore, a number of African countries are among the 15 countries that boast the highest growth rates in the world including from West Africa. I am glad to inform you that this year Côte d Ivoire will be among this group of dynamic countries with economic growth estimated by the International Monetary Fund at about 8 %. We expect economic growth to reach an average of about 10 % in the next three years. Overall, according to the IMF, the medium term outlook for West Africa remains favorable despite the ongoing crisis in Europe and the recent new downward revisions of world growth forecasts. Underlying this remarkable resilience are Africa shares with emerging countries: the following characteristics that A rapid urbanization. An increase in the middle class that may have exceeded that of India according to some reputable estimates. The rapid development of information and communication technologies. For example, Africa today has more cellular phones than in the USA or Europe. An improvement in governance and business climate, More transparent elections and buttressing of the legal system as well as of democratic institutions. The demographic dividend. Africa s population is about 1 billion. In 2050 it will reach 2 billions. Today the average age is 20 years in Africa, 30 years in Asia and 40 years in Europe. This represents a www.chathamhouse.org 3
benefit for Africa, but it may well turn into a curse if job growth is not buoyant, leaving millions of young people dispirited and at the mercy of unscrupulous groups and warlords. I will also note that foreign direct investment has multiplied by 10 in the last decade with massive investments particularly from China, India and Brazil. As it was the case for the Asian miracle 30 years ago, the return on investment in Africa is one of the highest in the world. Foreign direct investments are higher than in India and are no longer only geared to raw material. During the fifth conference on China-Africa cooperation in Beijing, which I attended recently, China has decided to double its aid to Africa to $20 billion. Africa and West Africa, including my country, are increasingly integrated into the world economy. Their new partners are more diversified and represent greater and unprecedented opportunities for development. After their political independence in the sixties, African countries are now steadily building their economic independence by engaging an expanding range of partners. African trade with the rest of the World has increased by 200% since 2000, particularly with the BRICs but also with South Korea, Turkey and Malaysia. Regional trade is also expanding due to lower custom tariffs and the dismantling of trade restrictions. In addition, I believe that the ongoing integration of Africa into the world economy would not have been possible without the strengthening of political stability, better governance and the increasing numbers of democratically elected Presidents through free and transparent elections. Conflicts that have destroyed a number of countries as well as generations of people during the cold war seem to be less frequent and less intensive today. However, a number of countries are still facing a difficult situation. The African Union and Regional Organizations such as the ECOWAS of which I am currently the Executive President are trying hard to prevent or put an end to conflicts, including those in Mali and Guinea-Bissau today. I just returned from an African Union Summit where Côte d Ivoire currently chairs its Council in charge of Peace and Security. In my intervention, I noted that in Mali, the transition period that should lead to new elections is facing some problems including the increasing control of Northern Mali by Islamist Salafist groups and Al-Qaeda in the Islamic Maghreb. ECOWAS is hoping that the UN will soon approve the deployment of ground forces in Mali to preserve its integrity and help the transitional Government. I would also add that the events in Mali are side effects of the intervention in Libya. Examples such as these point to a clear need for a global solution to the global problem www.chathamhouse.org 4
of transborder terrorism. It is not only the security of the Sahel region that is at stake but also the security of Europe and the World. For its part ECOWAS will spare no efforts to prevent conflicts and to ensure the respect of the elementary rules of democracy. We can no longer afford neither military coups on our continent nor can we afford army groups to control large part of our territories in the Sahel. We have to remain united to fight terrorism, the traffic of drugs of arms, and of women and children. Ladies and Gentlemen, I would like to emphasize that the strengthening of regional integration is key to buttressing economic growth in Africa. With our sister countries of the ECOWAS and the support of the International community, we are launching far reaching regional infrastructure projects that would make it possible for the countries, and land locked countries in particular, to transport their plentiful mineral and oil resources. These investments will also contribute to increasing regional trade and creating a large integrated market for more than 300 million people living in our region. We are also planning to create regional centres of excellence in health, education, agriculture, science and applied research as well as in technological innovation. In addition, we are strengthening our customs and military cooperation to fight against illegal activities and cross border banditism and terrorism. As the Executive President of the ECOWAS, I will spare no efforts to further strengthen our regional integration and to make the voice of Africans heard at the international level. Ladies and Gentlemen, I would now specifically like to describe to you the progress made in Côte d Ivoire since May 2011. The Institutions of the Republic are now in place, security has returned and a unified army has been created. Reconciliation is progressing thanks to the hard work of the Commission of Reconciliation, Truth and Dialogue. Free and transparent legislative elections have taken place and the new Parliament is at work. Côte D Ivoire after a lost decade is once again a beaming democracy and the forces of progress have been unleashed with the aim of improving the life of its people and the people of the sub-region. We have just adopted a new investment code and are working to create one of the best business climates in Africa. We are also aiming to be among the best regarding good governance. The economics results at the end of 2011 are much better than anticipated. Last month my country has reached the completion point under the Highly Indebted Poor Countries Initiative of the IMF and the World Bank. As a result, www.chathamhouse.org 5
the ratio of our external debt to GDP has dropped to 20%; a ratio that could make a number of European countries envious. We have just adopted our National Development Plan for 2012-2015 which defines powerful engines of growth both horizontal and vertical. Horizontal engines of growth include: improving health and education, affirming the rule of law, creating one of the best business and governance environments in Africa. Vertical engines include: agriculture, infrastructure and transport, mining, oil and gas production, industries and services. The careful selections of productive public investments, the ongoing increase in private investment, and a steadfast implementation of a coherent set of far reaching structural reforms are expected to result in a solid, sustainable and equitable economic growth with due respect to the environment. The expected growth will create jobs particularly for the young. The macroeconomic environment will continue to be stable with due regard to the further strengthening of our public finance and to sustainable debt service. Due regard to the composition of expenditures will continue to ensure an adequate level of pro-poor spending which should help halving poverty by 2015. Yes, Ladies and Gentlemen, Ivory Coast is on the go, it is taking back its traditional role as a locomotive in the sub-region and it has the ambition to become an emerging country by 2020. Ladies and Gentlemen, I would like to conclude by thanking each of you for joining me in this distinguish Chatham House. I invite you to come to see Africa on the rise for yourself and in particular Côte D Ivoire: a land of hospitality and opportunities. I encourage the Royal Institute of International Affairs to continue to spare some of its precious time and to continue its research and contributions to help make Africa s take-off a success as it was the case 30 years ago for China and India. I wish you the very best Olympics ever and plenty of gold medals to your great country. Thank you very much. www.chathamhouse.org 6