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O'Neill Says He Saw Progress in Africa, More Needed
Posted on Thursday, June 06 @ 04:29:26 CEST by Macphisto
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WASHINGTON (Reuters) -- U.S. Treasury Secretary Paul O'Neill, surveying his recently concluded trip to Africa with rock star Bono, said on Wednesday that Africa is making economic progress but long-term growth will depend on entrepreneurship, not aid.´
"In Africa, I saw signs of progress everywhere. Programs are working, aid is helping and standards of living are improving," O'Neill said in prepared remarks to be delivered at Georgetown University.
"In the long run, domestic entrepreneurship as well as trade and foreign investment are far more important for economic growth than official aid."
O'Neill wrapped up his two-week tour of Africa late last week after examining aid projects there.
Some pundits referred to the image of the blunt-speaking, well-pressed O'Neill traveling with the laid-back lead singer of rock group U2 -- who is an advocate of canceling debts owed by African nations -- as "the odd couple."
O'Neill said it was "too soon" to announce policy recommendations resulting from what he saw on the trip. He did, however, use the speech to repeat the U.S. position that replacing foreign aid loans with outright grants would help poor countries. "It will eliminate the next generation of debt service problems," he said.
In his speech, O'Neill stressed the need to support local leaders and local solutions to problems, saying it was "sometimes shocking to see the disconnect between the aid bureaucracies with their 15-year plans and the availability of more immediate solutions."
"You cannot airdrop solutions to local problems. You can only offer air support," he said.
O'Neill said he saw three types of investments in Africa that were effective: clean water, primary education and fighting HIV and AIDS.
"When governments are investing in their people, providing clean water, education and health care and when other aspects of good governance are present -- just rule and economic freedom -- prosperity can blossom," he said.
O'Neill acknowledged, however, that progress will take time.
"Development is complicated. I know that. I don't underestimate the challenge. I just don't think we should accept complexity as an excuse for delay," he said.
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