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Adjustment with Growth: a Fragile Consensus

Published online by Cambridge University Press:  11 November 2008

Extract

Six years of intense debate have produced a measure of agreement on a solution for Africa's malaise. This is captured by the latest catchphrase of the International Monetary Fund and the World Bank, ‘Adjustment with Growth’, which implicitly acknowledge past errors by African governments – or, minimally, that a continuation of previous policies is no longer tenable in a changed external environment. An emphasis on ‘growth’ recognises that ‘adjustment’ must encompass more than ‘stabilisation’, that the continent needs additional externally-provided financial resources on concessional terms if import strangulation is not to exacerbate the downward economic spiral in which many countries are currently trapped. This fragile consensus is facing its first serious practical test as the World Bank attempts to extend its Structural Adjustment Lending programme in Africa. Clearly, significant differences remain between the attitudes of African governments and external donors, and within the academic community, on the sources of the continent's problems and on the policy measures that are needed to counteract them.

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Copyright © Cambridge University Press 1988

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References

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Page 191 note 5 Eicher, ‘Strategic Issues’, p. 252.

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Page 192 note 2 Green, ‘Consolidation and Accelerated Development of African Agriculture’, p. 25.

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Page 195 note 1 Faber and Green, loc. cit. p. 21.

Page 195 note 2 For further discussion, see Ravenhill, ‘Africa's Continuing Crises’, pp. 16–18.

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Page 198 note 3 African Debt and Financing, p. 170.

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Page 199 note 2 United Nations, op. cit. p. 20.

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