Broad-based Economic Development

In its “Vision 2030”, Namibia has set itself the ambitious target to become a developed, industrial nation by the year 2030. This vision can only be achieved, if the economy starts moving onto a higher growth-path by doubling its current

It is a necessary, albeit not a sufficient condition, if the aim is to achieve prosperity for all. The challenge is to develop the economy in such a way that economic growth becomes high and sustainable, but also shared, pro-poor and inclusive.

Such a growth-path must be employment-creating, unleash endogenous entrepreneurial dynamics, develop and harness the assets of the poor. For an economy which is largely based on the country’s natural resources, creating backward and forward linkages for increased value-addition and reinvesting its surpluses to enhance the productive capacity of the economy and its people, are further challenges. The international environment of a globalised economy presents additional challenges, both threats and opportunities, especially for a small and open economy like the Namibian. There is ample empirical evidence, past and present, that shared growth or broad-based economic development is not at all something that comes by itself, if one only leaves it to the market forces. Broad-based economic development requires an active, but efficient, focused and well-run developmental state as well as a conducive policy environment.

There are many avenues of trying to initiate, shape or otherwise contribute to the development and implementation of appropriate policies and improve on the work of the institutions which have to carry out such policies. The Friedrich-Ebert-Stiftung focuses on the power of enlightened public discourse in that regard. Together with the Namibian Economic Society (NES), FES has developed different formats of public dialogue on current economic policy issues, the most successful ones being the NES-Breakfast Meetings. Summaries of the debates are regularly reproduced in the NES-Newsletters. Sporadically, FES also commissions policy research with local research institutes (LaRRI, NEPRU, IPPR).

A second strand of public dialogue specifically deals with the international environment and its impact on the Namibian economy. For a country with a small domestic market that “produces what it doesn’t consume and consumes what it doesn’t produce”, the regional and the international arena are of particular relevance. Together with the Namibian Agricultural Trade Forum (ATF), FES organises public lectures and panel discussions that deal with economic aspects of regional integration (SADC, SACU), the impact of multilateral and bilateral trade regimes and current developments in trade negotiations, e.g. at the WTO (Doha Development Round), or with the European Union (Economic Partnership Agreement (EPA) between EU and SADC under the Cotonou Agreement.

Finally, broad-based economic development will not come about without the promotion of a culture of entrepreneurship and the creation of small and medium enterprises (SME), especially among the formerly disadvantaged majority. The development of a vibrant SME-sector can be hugely facilitated by appropriate policies and an effective infrastructure of public and private small business support services (information, training, counselling, mentorship, finance, etc.). FES has been instrumental in the establishment of a network of public and private SME-service providers under the Joint Consultative Council (JCC) almost a decade ago. The Friedrich-Ebert-Stiftung continues to support some of the JCC-activities, mainly with regard to its lobbying functions on policy issues.