awards
36
finnish cultural foundation
annual report 2013–2014
A
n encouraging example of the
positive ongoing trend in Africa
is the increase in transparency
in the use of public funds. Another is
the mobile-money system developed in
Kenya, allowing even poor people access
to banking systems.
“China has introduced a new dimen-
sion,” says Director
Ritva Reinikka
.
“China’s investments have given people in
Africa lots of hope in the future, despite the
worried comments you sometimes hear.”
The mean rate of economic growth
in Africa is in the region of 6 per cent a
year, and poverty has fallen by a good 10
percentage points over the past decade.
An affluent middle class is emerging. The
continent is rich in natural resources, and
more are being discovered all the time.
Good governance is a key to their utili-
sation. “The way up is never easy,” Ritva
Reinikka points out.
The regions in crisis, such as Central
Africa, Chad, Niger and South Sudan have
not, of course, had a chance to develop. Bad
governance and corruption are obstacles
to progress in the poor countries. Another
is population growth. The present popula-
tion of one billion will, it is forecast, have
risen to two billion by the year 2050.
Research and practice
complement each other
Director Ritva Reinikka, who holds a Ph.D.
in economics, received formal recognition
of her work this year when the Finnish
Cultural Foundation awarded her a prize of
EUR 30,000 for her work in Africa and her
reform of development policy. Dr Reinikka
has risen to a higher position in the World
Bank hierarchy than almost any other Finn
and her most recent post has been that of
the Bank’s Director of the Human Develop-
ment Group in the Africa Region. She has
worked on the principle of establishing
dialogue between science, economic and
social policy and proved that research and
practice can complement each other.
“I was delighted at the Cultural Founda-
tion’s broad vision. So the Finns do know
about my work and care about what I do!
I didn’t think anyone in Finland knew
about my work. But it has been to Finland’s
advantage in that the development aid paid
by the Finnish tax-payer to Africa is now
being tracked more closely.”
Closer watch on
development aid
Ritva Reinikka developed a procedure
that is now normal practice in devel-
opment-aid policy for tracking the use
of public funds. A study she made with
Swedish Professor Jakob Svensson in
Uganda revealed that only 13 of the 100
dollars earmarked for schools were actu-
ally spent as intended. The money presum-
ably went on such things as local election
campaigns. Together with Ugandans the
two researchers concluded that improve-
ments could be achieved with greater
publicity.
“The results were astonishing. Of each
100 dollars, over 80 now reach their
target.” In Kenya, Tanzania and Sierra Leone,
for example, the payment of state aid is
now announced in the press. Readers are
informed howmuch money has been sent,
and for what purpose.
“This has woken ordinary people up to
the fact that this money is theirs.”
The influence of Dr Reinikka on
economic reform in Uganda has been deci-
sive. The poor infrastructure is, according
Helping to
raise Africa
“Africa’s time will come,” says Ritva Reinikka,
Director of the Human Development Group in
the Africa Region of the World Bank.
