NAIROBI (Xinhua) --
The majority of African countries defied domestic and external
shocks to sustain quality of policy and institutional frameworks
underpinning their recent economic progress, says a World Bank
report released in Nairobi on Wednesday.
The 2017 Country
Policy and Institutional Assessment (CPIA) for Sub-Saharan
Africa’s scorecard which has been used to determine World Bank’s
assistance to the world’s poorest nations since its launch in
1980 gave a positive assessment on quality of policies in Africa
that has boosted health of the continent’s economy.
“In 2017, African
countries had a more favorable global environment that provided
them with space to implement reforms,” remarked Punam Chuhan-Pole,
a lead economist at the World Bank’s Africa Region.
“According to our
analysis, nearly 30 percent more countries strengthened their
policy and institutional quality compared with 2016. This is an
encouraging trend,” she added.
The 2017 CPIA report
examined quality and performance of policies and institutional
structures in 38 African countries that are eligible for the
World Bank’s International Development Assistance (IDA) tailor
made for the most economically deprived nations.
It found that these
countries, whose overall score was 3.1, had strengthened
policies that promote fiscal discipline, social inclusion,
governance and public sector management.
The 2017 World
Bank’s CPIA report says that Rwanda posted the highest score of
4.1 followed by Senegal with 3.8 then Cape Verde, Kenya and
Tanzania that had an average score of 3.7.
It states that
favorable global economic conditions stimulated economic
activities in Sub-Saharan Africa thus easing pressure on weak
However, the report
notes that fragile African countries reeling from conflicts,
climatic shocks and effects of volatility in the global
commodities market, recorded a drop in the quality of their
policy and institutional frameworks.
“Important near and
long-term vulnerabilities in many of the region’s economies
eroded policy buffers constrain the scope for countries to
formulate an adequate policy response to adverse shocks,” the
World Bank said.
It warns of rising
public debt relative to gross domestic product (GDP) that could
disrupt economic growth and employment creation in African
countries that are already experiencing a youth bulge.
Experts said that a
regular appraisal on quality and resilience of policy and
institutional frameworks in Africa is key to attract development
aid and stimulate economic growth.
“The CPIA is
important for African countries not only because a better score
leads to an increase in concessional financing from the World
Bank, but also because it is an excellent tool for policy
formulation and monitoring,” said Albert Zeufack, the World
Bank’s Chief Economist for Africa.
should pay more attention to this important tool and use it
accordingly,” he added.