Background paper on ensuring more efficient role of the public sector in promoting economic growth and development as well as poverty reduction

Abstract

The role of the public sector in socio-economic transformation and the alleviation of poverty has generally been recognized. This derives essentially from the involvement of the public sector in three main activities, namely; macro-economic management, microeconomic regulation and the production process in general. Normally, the government sets the macro-and micro-economic framework within which the economy operates. As a producer, the public sector directly provides goods and services that satisfy social needs. It is through these functions and due to historical factors arising essentially from the need to swiftly enlarge the production base inherited from the colonial era that the public sector grew to its present dominant position in the African economies. This report attempts to assess the effectiveness of existing ECA programmes on the public sector's role in promoting growth, development and transformation as well as poverty reduction and make recommendations to enhance their impact on African countries.