The 1980s has been described as Africa's “lost decade.” After the largely positive economic and social developments of the 1960s and 1970s, Africa began to lose ground in the 1980s: economic progress turned into economic decline; social development into social decay. The assumption in leading circles has been that this downturn was necessary because of the costs incurred by a largely state-centered approach to development. Economic liberalization would help bring back growth. Few tangible improvements, however, were recorded in the 1980s. Since 1990, calls for political democratization have been added to the armory of policy prescriptions for Africa. Faith in the significance of democratization among Africans and friends of Africa alike provided the continent with new breathing-space but half way through the 1990s, there is little evidence that Africa has begun turning a corner.

Although per capita GNP income is in itself a measure of neither economic welfare nor success in development and measures for countries with a balmy climate always are lower than those for colder countries —something that the World Bank is the first to admit—the statistical trend for African economies that can be gleaned from studying its World Development Report for the past ten years indicates that in comparison with the rest of the world Africa continues losing ground. Although quite a few countries have registered at least a modest economic recovery in the 1990s, the number of African countries that have dropped into the bottom category of least developed countries has increased. In 1980, the number of African low-income countries (under $700 GNP per capita) was eighteen. In 1995 it had gone up to 27 or half of those listed in this category (World Development Report 1995, 162). The debt burden continues to plague the continent. Although total debt service as percentage of exports has improved for some African countries since 1980, repayment obligations are still beyond what African governments can typically afford. The result is that African countries find themselves locked out from international credit other than that provided by the publicly owned international finance institutions. The little private capital that comes to Africa is usually provided by individuals or companies interested only in a “quick buck.”