Since the mid-1980s African countries have been increasingly taking measures aimed at revitalizing their economies. Several key documents reflect this new perspective: the African Priority Program for Economic Recovery 1986-1990 adopted by the Organization of African Unity in 1985, the African Alternative Framework to Structural Adjustment Programme for Socio-Economic Recovery and Transformation issued by the Economic Commission for Africa (ECA) in 1989. More recently, NEPAD arrived at the same conclusion and listed good economic and corporate governance as the prerequisites for successful economic growth and poverty alleviation in Africa. Along with the concern for good and effective political governance has been the concern for good, efficient and effective economic management and corporate governance

Policy space
The global economic governance system continues to have a negative impact on the policy space of many African governments. The policy instruments of the Bretton Woods Institutions (World Bank and International Monetary Fund) have a strong restraint on the abilities of African governments to develop and implement their own macro economic policy framework. Building partnerships for development that demonstrates a commitment to good economic governance and justice as well as poverty reduction contributes to the furthering of an open, rule-based, predictable, non-discriminatory trading and financial system.

Good governance
Both governmental and intergovernmental partners are increasingly going to make ‘good governance’ of all resources a criterion for the granting of development assistance (loans and grants). Where a recipient country is known to be plundering its own resources, the need -as in extreme cases of human rights violation-will be for penalties that may even extend to the suspension of outside aid. The need for appropriate, effective institutions to formulate policy and manage implementation for the benefit of all groups of citizens is now a major element forming the rubric of “good governance,” which is one of the cornerstones of the contemporary development agenda.

Innovative financial mechanisms
AFRODAD has for many years, been at the forefront of African civil society organizations advocating innovative financial mechanisms to finance development projects and for a comprehensive and transparent public resource management process in Africa. The main concern of public financial management is how to efficiently and effectively utilize public resources to meet the needs of the community in an equitable manner. An important part is the budgetary process. The key issues to be examined include the degree of discipline, efficiency in revenue mobilization and extent of transparency, accountability and control in the tax system. Efficiency in the management of the tax system is important for enabling the public sector to mobilize the resources required for economic development. It also engenders confidence and trust in public financial management, which is an important component of good governance.

African countries have put in place various arrangements to improve on budgetary discipline. A more ambitious and comprehensive scheme is the Medium-Term Expenditure Framework (MTEF), which several African countries have embraced. In principle, it links policymaking, planning and budgeting, thereby allowing expenditures to be driven by policy priorities and disciplined by budget realities, injecting a medium-term perspective and allowing for policy choices that enhance long-term development. One of the key focus areas of AFRODAD work in the next three years will be to establish whether the MTEF has really improved economic governance, budget predictability, sectoral allocations, reduced fiscal deficit and enhanced civil society participation in public financial management. It is important to assess whether such frameworks make public expenditure management participatory and inclusive.

Alternative regional institutions
At the regional level there are proposed economic institutions within the African Union such as the African Monetary Fund and the African central bank that could work in cohort or as alternatives to the Bretton Woods Institutions. Crucial to civic organizations is these African economic institutions will be established. Their relevance will be measured by how they address the current power imbalance and controversies that exists between the Bretton Wood institutions and African governments. AFRODAD’s engagement with the African Union will be crucial for influencing the eventual composition and mandate of these African economic institutions. 

AFRODAD research
In addition, AFRODAD research studies in this sector will among other things, assess the degree of control African governments are able to secure over their development policies. Through the country cases the program will seek to unveil the relationships from the viewpoints of African governments, investigating what strategies they need to use to advance their objectives in pursuing Pan-African, sub-regional and national self-reliant economic goals. The case studies will develop detailed analysis of the institutions and processes that make up contemporary economic governance relations. 

Capacity building
AFRODAD’s capacity building program will seek to customize its capacity building approaches to suit the needs of the civil society at the country level. AFRODAD plans to make its support for capacity building for CSOs more relevant by extending its traditional focus beyond individual skills to strengthening institutions, and by enhancing its exchange programs with its partners. This is specifically important for African civil society to improve their role in monitoring and advocating for the better performance of their governments so as to achieve equity, justice, poverty reduction, and the provision of better services.

The main objectives of this programme are:

a) To contribute to accountable and inclusive economic governance in Africa.

b) To strengthen the CSOs’ capacity to engage in democratic economic governance advocacy. 

c) The overall strategy will be to engage African Governments and Inter-governmental organizations secure the relevant policy changes emanating from these activities.

Areas of Focus:

a) Macro-economic Training - this first component of this programme will focus on increasing the capacity of civil society organizations by providing skills and strategic information to enable them to engage effectively in policy dialogue or even lead policy change processes. - Poverty and Social Impact Analysis (PSIA) in the arena of policy change.

b) Capacity building - strengthen the capacity of African civil society by providing a platform or a forum through which issues raised in the context of the African and World Social Forums will be better articulated and placed in the policy formulation environments at the national, regional and global levels. 

c) Policy Dialogue Series - series of policy analyses designed to secure deeper understanding of various issues the African continent is facing and articulating them for alternative policies where appropriate. This also includes dialogue with African Development Bank, Pan-African Parliament and other regional blocs

d) Tax justice; to include capital flight, financial regulations

e) Extractive industries

f) Financing for development