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2016: The turning point

Policymakers and development practitioners now face a new set of challenges in the aftermath of the global consensus triumvirate Addis Agenda—2030 Agenda—Paris Agreement: [1] implementation, follow-up, and review. Development policy professionals must tackle these while at the same time including the three pillars of sustainable development—social development, economic growth, and environmental protection—and the above three global consensus’ cross-sectoral natures—all while working in a context where policy planning is still performed in silos. They also must incorporate the universality of these new agreements in the light of different national circumstances—different national realities, capacities, needs, levels of development, and national policies and priorities. And then they have to significantly scale up resource allocation and means of implementation (including financing, capacity building, and technology transfer) to make a difference and enhance novel multi-stakeholder partnerships to contain the surge of global flows of all kinds (such as migration, terrorism, diseases, taxation, extreme weather, and digital revolution) in a resolutely interconnected world. Quite an ambitious task!

Given the above complexities, new national and global arrangements are being made to honor the commitments put forth to answer these unprecedented challenges. Several African governments have already started establishing inter-ministerial committees and task forces to ensure alignment between the global goals and existing national planning processes, aspirations, and priorities.

With the international community, Africa is preparing for the first High-Level Political Forum since the 2030 Agenda adoption in July 2016 on the theme “Ensuring that no one is left behind.” In order to inform the 2030 Agenda’s implementation leadership, guidance, and recommendations, six African countries [2] of 22 U.N. Member States, volunteered to present national reviews on their work to achieve the Sustainable Development Goals (SDGs), a unique opportunity to provide an uncompromising reality check and highlight levers to exploit and limits to overcome for impact.

Paralleling Africa’s groundwork, the United Nations’ efforts for coordination have been numerous. They include an inter-agency task force to prepare for the follow-up forum to Financing For Development timed with the Global Infrastructure Forum that will consult on infrastructure investment, a crucial point for the continent; an appointed 10-representative group to support the Technology Facilitation Mechanism that facilitates the development, transfer and dissemination of technologies for the SDGs, another very important item for Africa; and an independent team of advisors to counsel on the longer-term positioning of the U.N. development system in the context of the 2030 Agenda, commonly called “U.N. fit for purpose,” among many other endeavors.

These overwhelming bureaucratic duties alone will put a meaningful burden on Africa’s limited capacity. Thus, it is in the interest of the continent to pool its assets by taking advantage of its robust regional networks in order to mitigate this obstacle in a coherent and coordinated manner, and by building on the convergence between the newly adopted texts and Agenda 2063, the African Union’s 50-year transformation blueprint, with the help of pan-African institutions.

Besides national and global, there is a third level of consideration: the regional one. Indeed, the three major agreements in 2015 emphasized support to projects and cooperation frameworks that foster regional and subregional integration, particularly in Africa. [3] Indeed, common and coherent industrial policies for regional value chains developed by strengthened regional institutions and sustained by a strong-willed transformational leadership are gaining traction towards Africa’s insertion into the global economy.

Africa has long made regional economic integration within its main “building blocs,” the eight Regional Economic Communities (RECs), a core strategy for development. The continent is definitely engaged in this path: Last summer, three RECs, the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), and the Southern African Development Community (SADC), launched the Tripartite Free Trade Area (TFTA) that covers 26 countries, over 600 million people, and $1 trillion GDP. The tripartite arrangement paves the way towards Africa’s own mega-regional one, the Continental Free Trade Area (CFTA), and the realization of one broad African Economic Community. If regionalization allows free movement of people, capital, goods, and services, the resulting increased intra-African connectivity will boost trade within Africa, promote growth, create jobs, and attract investments. Ultimately, it should ignite industrialization, innovation, and competitiveness. To that end, pan-African institutions, capitalizing on the recent positive continental performances, are redoubling their efforts to build an enabling environment for policy and regulation harmonization and economies of scale.

Importantly, infrastructure, without which no connectivity is possible, is undeniably the enabling bedrock to all future regionalization plans. Together with market integration and industrial development, infrastructure development is one of the three pillars of the TFTA strategy. Similarly, the New Partnership for Africa’s Development (NEPAD) Agency, the technical body of the African Union (AU) mandated with planning and coordinating the implementation of continental priorities and regional programs, adopted regional integration as a strategic approach to infrastructure. In fact, in June 2014, the NEPAD Agency organized the Dakar Financing Summit for Infrastructure, culminating with the adoption of the Dakar Agenda for Action that lays down options for investment mobilization towards infrastructure development projects, starting with 16 key bankable projects stemming from the Programme for Infrastructure Development in Africa (PIDA). These “NEPAD mega-projects to transform Africa” are, notably, all regional in scope.

See the full map of NEPAD’s 16 mega-projects to transform Africa here »

Supplementing NEPAD and TFTA, the Continental Business Network was formed to promote public-private dialogue with regard to regional infrastructure investment. The Africa50 Infrastructure Fund was constituted as a new delivery platform commercially managed to narrow the massive infrastructure finance gap in Africa evaluated at $50 billion per annum.

The development of homegrown proposals and institutional advances observed lately demonstrate Africa’s assertive engagement towards accelerating infrastructure development, thereby regionalization. At the last AU Summit, the NEPAD Heads of State and Government Orientation Committee approved the institutionalization of an annual PIDA Week hosted at the African Development Bank (AfDB) to follow up on the progresses made.

The energy partnerships listed below illustrate the possible gain from adopting trans-boundary approaches for implementation and follow-up: the Africa Power Vision (APV) undertaken with Power Africa; the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) model accompanying the Sustainable Energy for All (SE4ALL) Africa Hub efforts; and the Africa GreenCo solution that is to bank on PIDA.

• Africa Power Vision: African ministers of power and finance gathered at the World Economic Forum (WEF) in Davos in 2014 decided to create the APV. The vision provides a strategic template harnessing resources to fast-track access to modern energy for African households, businesses, and industries. It draws up a shortlist of African-driven regional priority energy projects mostly extracted from the PIDA Priority Action Program, which is the PIDA short-term pipeline to be completed by 2020. The game changer Inga III hydropower project, the iconic DESERTEC Sahara solar project, and the gigantic North-South Interconnection Transmission Line covering almost the entire TFTA are among the 13 selected projects. The APV concept note and implementation plan entitled “From vision to action” developed by the NEPAD Agency, in collaboration with U.S. government-led Power Africa initiative, was endorsed at the January 2015 AU Summit. The package elaborates on responses to counter bottlenecks to achieve quantifiable targets, the “acceleration methodology” based on NEPAD Project Prioritization Considerations Tool (PPCT), risk mitigation, and power projects’ financing. Innovative design was thought to avoid duplication, save resources, improve coordination and foster transformative action with the setting up of dual-hatted Power Africa – APV Transaction Advisors, who supervise investment schemes up to financial closure where and when there is an overlap of energy projects or common interest. Overall, the APV partnership permits a mutualization of expertise while at the same time, since it is based on PIDA, promoting regional economic integration for electrification.

• ECOWAS Centre for Renewable Energy and Energy Efficiency: U.N. Secretary-General Ban Ki-moon launched the Sustainable Energy for All initiative worldwide as early as 2011 with the triple objective of ensuring universal access to modern energy services, doubling the rate of improvement of energy efficiency, and doubling the share of renewable energy in the global energy mix by 2030. Since its inception, SE4ALL prompted a lot of enthusiasm on the continent, and is now counting 44 opt-in African countries. As a result, the SE4ALL Africa Hub was the first regional hub to be launched in 2013. Hosted at the AfDB in partnership with the AU Commission, NEPAD Agency, and the U.N. Development Program (UNDP), its role is to facilitate the implementation of SE4ALL on the continent. The SE4ALL Africa Hub 3rd Annual Workshop held in Abidjan last February showed the potential of this “creative coalition” (Yumkella, 2014) to deliver on areas spanning from national plans of action, regionally concerted approaches in line with the continental vision, to SDG7 on energy, to climate Intended Nationally Determined Contributions (INDCs) made for the Paris Agreement. Above all, the workshop displayed the hub’s ability to efficiently kick-start the harmonization of processes for impact among countries. Forasmuch as all ECOWAS Member States opted-in to SE4ALL, the West African ministers mandated their regional energy center, ECREEE, to coordinate the implementation of the SE4ALL Action Agendas (AAs), which are documents outlining country actions required to achieve sustainable energy objectives, and from then Investment Prospectuses (IPs), the documents presenting the AAs investment requirements. As a result, the ECOWAS Renewable Energy Policy (EREP) and the Energy Efficiency Policy (EEEP) were formulated and adopted; and a regional monitoring framework to feed into a Global Tracking Framework, the SE4ALL measuring and reporting system, is now being conceived. The successful ECREEE model, bridging national inventory and global players, is about to be duplicated in two other African regions, EAC and SADC, with the support of the U.N. Industrial Development Organization (UNIDO).

• Africa GreenCo: Lastly, initiatives like Africa GreenCo are incubating. This promising vehicle, currently funded by a grant from the Rockefeller Foundation, envisions itself as an independently managed power trader and broker to move energy where needed. Indeed, Africa GreenCo aims to capitalize on PIDA power projects: In its capacity as intermediary creditworthy off taker, it plans to eventually utilize their regional character as a value addition to risk guarantee. To date, Africa GreenCo is refining the legal, regulatory, technical, and financial aspects of its future structure and forging links with key stakeholders in the sector (member states, multilateral development banks, African regional utilities for generation and interconnection called Power Pools) ahead of the completion of its feasibility study in June 2016.

The above-mentioned partnerships are encouraging trends towards more symbiotic multi-stakeholders cooperation. As they relate to home-crafted initiatives, it is imperative that we do not drift away from a continental vision. Not only do Africa-grown plans have higher chance of success than the one-size-fits-all imported solutions, but consistent and combined efforts in the same direction reinforce confidence, emulation, and attract supportive attention. It implies that the fulfillment of intergovernmental agreements requires first and foremost their adaptation to local realities in a domestication process that is respectful of the policy space. Mainstreaming adjustments can be later conducted according to evidence-based and data-driven experiments. Between these global engagements and national procedures, the regional dimension is the indispensable link: Enabling countries to bypass the artificiality of borders inherited from colonial times and offering concrete options to eradicate poverty in a united-we-stand fashion. Regional integration is therefore a prelude to sustainable development operationalization within Africa and a key step towards its active partaking in the global arena. Regionalization can also trigger international relations shift provided that it encompasses fair multilateralism and sustainable management of global knowledge. Indeed, the resulting openness and the complexity encountered are useful parameters to enrich the conception of relevant local answers.

These success stories show the great potential for new experiments and synergies. To me, they inspire the promise of a better world. The one I like to imagine is characterized by mutually beneficial ecosystems for the people and the planet. It encourages win-win reverse linkages, or in other words, more positive spillovers of developing economies on industrial countries. It is a place where, for example, an African region could draw lessons from the Greek crisis and the other way around: China could learn from Africa’s Maputo Development Corridor for its Silk Road Economic Belt. Twin institutes performing joint research among regional knowledge hubs would flourish. Innovative Fab Labs would be entitled to strive after spatial adventure with e-waste material recycled into 3D printers. In that world, innovative collaborations in science, technology, engineering, and math (STEM) would be favored and involve not only women but also the diaspora in order to develop environmentally sound technical progress. Commensurate efforts, persistent willingness, indigenous ingenuity, and unbridled creativity place this brighter future within our reach.

Beyond the recognition of the African voice throughout the intergovernmental processes, Africa should now consolidate its gains by firmly maintaining its position and safeguarding its winnings throughout the preliminary phase. The continent should urgently set singular tactics with the greatest potential in terms of inclusiveness and creation of productive capacity. While doing so, African development actors should initiate a “learning by doing” virtuous cycle to create an endogenous development narrative cognizant of adaptable best practices as well as failures. Yet the only approach capable of generating both structural transformation and informative change that are in line with continentally own and led long-term strategies is … regional integration.

“It’s probably the most interesting presidential election I’ve seen in my lifetime,” I said to an American friend the moment I arrived to Washington. My friend was upset. “For you it’s interesting,” he said. “For us it’s painful.”

“What you’ve just said rings a bell,” I said. “This is exactly, word for word, what I keep saying to foreign journalists who come to Israel to write a story.” Covering politics in Israel is like covering a professional wrestling fight: the rivals exchange numerous hits, shout at each other, humiliate each other, disregard every rule, but in most cases the outcome is known in advance.

Covering politics in Israel is like covering a professional wrestling fight...in most cases the outcome is known in advance.

Americans are supposed to play their political game in a cooler way. At least, this is the impression a foreign correspondent get when he lands here, directly from the boiling quarrels of the Middle East. 

I had the opportunity to cover almost all the U.S. presidential campaigns since Jimmy Carter’s victory over Gerald Ford in 1974. I loved it—I loved the town halls and the rallies in remote places, where people are kind and willing to answer every clueless question from a foreign reporter; I loved the access to the candidates, weeks and months before the secret service builds a wall between them and real life; I loved the hectic atmosphere, described so well in the “Making of the President” books by Theodore H. White; I loved to see how little-known candidates like Bill Clinton or Barack Obama evolve, grow, and flourish; and I enjoyed every chapter: the spins, the buzz, the role played by big money.

The election campaign seems to be different this time: It looks different; it sounds different. The key word is anger—anger dominated the selection process in both parties. Angry voters elected angry candidates. If a candidate was not angry enough—e. g. Jeb Bush—the voters judged him unfit for the job.

The election campaign seems to be different this time: It looks different; it sounds different. The key word is anger.

An accidental tourist like me pauses here for a long list of questions: how do we quantify anger? Is it limited to the ballots or can it evaporate at some point and turn into violent acts, as Donald Trump has insinuated time and again? Is it a reflection of the bitterness of specific, limited constituencies or is it something much more widespread, an outrage of a generation or a class of Americans who feel that they were betrayed by the political and business elite, by the establishment? How to explain the Trump phenomenon, the Sanders phenomenon? 

The obvious answer is the economic collapse of 2008: the people who fell victim to the 2008 crisis, who lost a home or a job or had to give up college for their children are now in revolt. Why now and not earlier? Because four years ago they were struggling to survive; they were busy. Politicizing emotions is a long process; sometimes it takes years.

Tip O'Neill, speaker of the house in the second half of the previous century, taught us that all politics is local. There is a lot of truth in it even today, but is it the whole truth? In the flat world of 2016, local politics are executed in a global way. All politics are local and global at the same time. Political actions spread from country to country like the Zika virus, using social media as carriers.

The young Sanders supporters I met in Brooklyn, during the last Democratic debate, were not much different from the young Israelis I met in Tel Aviv in the summer of 2011, when hundreds of thousands of Israelis took to the streets. Those Israelis complained about similar things: high prices, loss of employment security, difficulty getting a decent job, and the ever-growing gap between expectations and reality. They were promised to live in the land of opportunity; the opportunity was not there—not for them.

Politicizing emotions is a long process; sometimes it takes years.

They complained bitterly about the banks and the major corporations. They became so big that the government has no choice but to subsidize them when they lose money. And the people who run them get huge salaries and bonuses on the expense of the shareholders and the general public. Israel used to be a social democratic society, with a strong middle class and a relatively narrow gap between rich and poor. Now the rich are very rich and get richer, and the less fortunate are left behind.

The protest was fueled by social media: another similarity between Tel Aviv and the young voters in Brooklyn and elsewhere. The brazenness, the bluntness, the rudeness of the social media culture affected the political discourse. It became less cordial and more personal. 

Israelis were not alone. The Arab Spring predated the Israeli Summer. Greece and Spain followed. Occupy Wall Street, a smaller, more radical protest movement, appeared on the streets of major American cities in the fall of 2011. It was inspired by the protests in the Arab countries and in Spain. The demonstrators faded away after a while, but they left their mark: political agendas have changed dramatically, governments fell, conventions were shuttered. It remains to be seen if and how they will contribute to social justice and equality.

In Israel, the demand for social justice captured a prominent place on the national agenda; several activists in the protest movement were elected to the Knesset; the rhetoric has changed, priorities didn't. Not really. Most Israelis were not prepared for a revolution, not even a moderate revolution, Bernie Sanders-style. 

I have no way to know what lies ahead for the American society. What I can see so far is a unique electoral season, characterized by unusual, almost bizarre candidates, their qualification for the job questionable, and a long, destructive battle over votes. For many Americans it is painful. People in other countries can only wonder: is it the best America is able to produce? 

Now well into the final year of his presidency, President Barack Obama recently gave a surprisingly frank and poignant review of his foreign policy record in an interview with Jeffrey Goldberg of The Atlantic.

There were a number of notable takeaways from their discussion, such as Obama’s critique of European allies and their lack of follow-through in regard to the Libya conflict. But a central element of the discussion was Obama’s rebuke to many critics of his foreign policy. He complained that much of the “establishment” seems to have a foreign policy playbook that requires frequent and excessive use of force whenever a crisis arises that displeases the United States. Instead, Obama called for a much more restrained, selective, and strategic approach in the employment of American military power.

Making the grade?

In many ways, I think the president is right. As I have written before, Obama’s original and very lofty goals for his presidency have generally proven elusive. Barack Obama may not be able to heal the planet, rid the Earth of nuclear weapons, or stop the oceans’ rise as his signature legacies. 

But, in fact, there is a strategy, even if it is more often implied than explicit, and even if it falls short of the president’s own preferences of what writers and historians might say about his two terms in office. It is more mundane but nonetheless important. Obama is attempting to be strategic in the most literal and relevant senses of the word—defining priorities and holding to them, even when that makes him appear indifferent or indecisive in response to certain types of crises or challenges. Yet he has shown himself willing to employ significant amounts of force when persuaded that there is no alternative.

Consider just a few of the cases that seemed to be on the president’s mind in the conversation with Goldberg:

• Syria. Obama did not use force against Syria after President Bashar Assad violated his “red line” and used chemical weapons. Here I tend to agree with the president; the key point is that Assad had to give up all (or nearly all) of his arsenal. If that could be achieved without U.S. military strikes against chemical weapons depots, so much the better (there is more to say about Syria, however, and I return to that in a minute).
• Russia. Obama did not use force against Vladimir Putin in Ukraine. The president is right: Ukraine is not an American ally, and Russia has a larger stake in its future than does America. As such, economic responses are the preferred policy tool here as well.
• China. Obama stayed firm but restrained towards China in the South China Sea. He took longer to undertake freedom of navigation exercises in response to China’s growing claims than some would have preferred. But his no-drama Obama approach has been correct, as he has left little doubt that America is committed to freedom of these international waterways. 
• Afghanistan. Obama made it harder than it had to be, and still has not given U.S. forces adequate authorities to attack the Taliban. Moreover, the U.S. military footprint there is somewhat too small. But Obama ultimately and rightly concluded that America needed to stay committed beyond his presidency.
• Iran. There is no doubt: The Joint Comprehensive Plan of Action is preferable to a military conflict with Iran, even for those of us who think that the deal could probably have been negotiated with tougher and better terms.
• Iraq. Yes, Obama pulled U.S. forces out too soon—but he was willing to return in 2014 once the situation deteriorated.
• Libya. We mishandled this badly and left too soon after the fall of Moammar Gadhafi. Obama is right that European allies should have done more, but he is wrong to have assumed they would get it right on their own in the first place. If we’re assessing his worldview (as opposed to his actual record), Obama has been honest and fair and acknowledged a mistake at least—though, alas, he has not found a way to meaningfully correct the policy situation since 2011.

These cases add up to a far from perfect record. But they represent a much more credible foreign policy than Obama’s critics often allege. And he has avoided unnecessary escalation in a number of situations where a less judicious president might have erred.

I give Obama reasonable marks for carefulness and strategic thinking.

Finally, however, returning to the Syria issue: On balance, Obama has been more wrong than right. Yes, he achieved a modest success in eliminating chemical weapons. Yet the war has been a travesty. Staying out has not worked any better than President George W. Bush’s approach to Iraq (even if it has of course cost far fewer American lives). Worse, Obama seems to justify his Syria policy largely by invoking Iraq—as if the 2003 invasion and occupation there were the only alternative to his minimalist approach. There have been other approaches that would involve significantly more force than we are employing now, yet far less than we used in Iraq or Afghanistan. Obama continues to refuse to consider them seriously, hinging everything on a diplomatic process that is in many ways a substitute for a real policy.

So, as with any presidency, there is more work to do, and as with any president, there is no untarnished record of systematic accomplishment. But I give Obama reasonable marks for carefulness and strategic thinking. He has been a proficient commander in chief, and it is possible that we will someday badly miss his judiciousness.

America is becoming a more class-stratified society, contrary to the nation’s self-image as a socially dynamic meritocracy. In particular, the barriers are hardening between the upper middle class and the majority below them. As New York Times contributor Tom Edsall writes (“How the Other Fifth Lives"), “The self-segregation of a privileged fifth of the population is…creating a self-perpetuating class at the top, which is ever more difficult to break into.”

This separation of the upper middle class by income, wealth, occupation and neighborhood has created a social distance between those of us who have been prospering in recent decades, and those who are feeling left behind, angry and resentful, and more like to vote for To-Hell-With-Them-All populist politicians. As I told Charles Homans, also writing on class for the Times, “The upper middle class are surprised by the rise of Trump. The actual middle class is surprised we’re surprised.”

Edsall cited my earlier essay, “The Dangerous Separation of the American Upper Middle Class,” and quoted me as follows:

“The top fifth have been prospering while the majority lags behind. But the separation is not just economic. Gaps are growing on a whole range of dimensions, including family structure, education, lifestyle, and geography. Indeed, these dimensions of advantage appear to be clustering more tightly together, each thereby amplifying the effect of the other.”

Just as certain disadvantages can cluster together, creating multidimensional poverty, so advantages may cluster together, resulting in multidimensional advantage. Is there more clustering of advantages at the top of American society? Yes.

The top fifth of households by income obviously have more money than the 80 percent below them. What about other advantages? Let’s take just three: marriage, employment and education. (See Sean Reardon and Kendra Bischoff’s paper on the geographical segregation of affluence). You would expect people in top-quintile households to be more likely to have a graduate or professional degree; to have two earners in the family; and perhaps also to be married. You would be right.

The difference in the proportion of the top fifth with each of these other advantages compared to the bottom four-fifths is around 20 percentage points (we restrict our analysis to those aged 40-50). For example, in 1979 a forty-something year-old in the top income quintile was about 6 percentage points more likely to be married that one in the bottom 80 percent. Now the gap is 17 percentage points.

This is hardly surprising. More education and more earners in the home will increase the chances that you make it into the top quintile for your age cohort. But it is noteworthy that the extent to which these different dimensions of advantage overlap has been steadily increasing over time. Along with the increased association between top-quintile income and marriage, the differentials for graduate education and two-earner status have each increased by around 10 percentage points between 1979 and 2014.

Particularly striking is the increase in the “marriage gap” between the upper middle class and the rest. This is an important factor in the transmission of class status to the next generation, since married couples are more likely to stay together, and stable families predict better outcomes for children.

Similarly, the adults with high levels of education are likely to raise children who end up towards the top of the educational distribution. In fact, the intergenerational persistence of education is even greater than of income, as some of our earlier work shows (“The Inheritance of Education”). Almost half (46 percent) the children of parents in the top education quintile end up in the top education quintile themselves. Three in four (76 percent) stayed in one of the top two education quintiles.

F. Scott Fitzgerald famously said: "Let me tell you about the very rich. They are different from you and me.” Ernest Hemingway’s later response was: “Yes, they have more money.” Today what separates the rich from the rest is not just money, but family life, education, zip code, and so on. This is a point made by a number of scholars, including recently both Robert Putnam in Our Kids and Charles Murray in Coming Apart. Our empirical analysis confirms that different kinds of advantage are increasingly overlapping with each other.

The framing of inequality in terms of social class used to feel distinctly un-American. No longer.

Editor’s note: This piece originally appeared in Real Clear Markets.