Feedback Form
Home Features Mastermind Videos About Advertise Blog Network Contact
   

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?

Sales Lessons From Starbucks And Dell

Adjustment and Recovery During 1995–97

 
African Accounts - Meet The Authors
Judy Wawira , Profile Judy Wawira
Profile
G Kofi , Annansi Chronicles G Kofi Annan
Annansi Chronicles
Shona , WBCSD Shona Grant
WBCSD
Benin , BeninMwangi.com Benin Mwangi
BeninMwangi.com
African Accounts - Meet The Authors
Adjustment and Recovery During 1995–97
   

To what extent did the variables highlighted above play an important role in explaining the more recent economic recovery? To answer this question, IMF researchers looked at the experiences of a sample of 46 countries during 1995–97. The available data showed that sub-Saharan Africa grew significantly during 1995–97. The average annual growth rate of per capita real GDP, which was negative through most of the 1980s and –2.2 percent during the five-year period 1990–94, rose to 1.2 percent during 1995–97. Moreover, whereas per capita real GDP increased in 16 countries in 1990–94, twice as many countries registered positive growth rates during 1995–97. Those countries in the study that experienced negative or declining growth rates did so largely as a result of a combination of long-standing, deep-rooted economic problems and the debilitating effects of past or continuing political turmoil.

In the 1990s, while many countries implemented structural adjustment programs, several other countries experienced economic disruptions because of war. The data for 1995–97 show that the measured improvement in economic performance in sub-Saharan Africa is much stronger when countries that experienced either unsettled political (or conflict) situations or a stop-go pattern of program implementation are excluded from the sample data.

A closer look at the countries that achieved positive growth rates during 1995–97 reveals that these countries also made progress in a number of other areas. Specifically, many countries were successful in:

Reducing and containing inflationary pressures: more than two- thirds of the countries in the study group experienced either a decline in the average inflation rate or maintained average inflation at single digit rates.

Increasing the ratio of domestic savings to GDP: two-thirds of those countries that improved their growth performance also increased domestic savings as a percentage of GDP.

Strengthening fiscal performance: two-thirds of the countries that raised their domestic savings ratios improved their overall fiscal balances.

Increasing private sector investment: overall investment increased in sub-Saharan Africa during the period under study, but the private sector share in investment grew proportionately more.

Restructuring public expenditures: in recent years, the governments of most sub-Saharan African countries have tried to restructure their public expenditure, devoting more funds to human resource development. Based on the data available, indications are that about half of the countries of the study group increased spending on health and education, while just under half the countries reduced the share of spending on defense.

Improving export performance: an increasing number of countries have succeeded in improving their export performance. Between the two periods 1990–94 and 1995–97, more than half of the countries registered an increase in export volume growth, which in most cases was accompanied by real exchange rate depreciation; 20 of these countries also recorded a recovery in growth rates of per capita real GDP.

Promoting Growth in Sub-Saharan Africa: Learning What Works Anupam Basu, Evangelos A. Calamitsis, Dhaneshwar Ghura ©2000 International Monetary Fund August 2000

To learn more about this author, visit International Monetary Fund's Website.

Like this article? Share it with your friends
[Get Copyright Permissions] E-Mail | Print | More  


Related Articles Related Articles
Overview I: Economic Report on Africa 2007
  Moderate world growth and the threat of macroeconomic imbalances
Recovery
  Recovery is a part of transition-- often the most frustrating part. We hate to admit to ourselves that there is anything to recover from, that we must stop (or at least dramatically slow down), reassess what is goin...
Do You Know Where Your Disaster Recovery Plan Is
  Disasters of major magnitude are major news again after the Gulf coast region of the United States was hit by 2 major hurricanes. So it is very timely for me to ask each of you: “Do you know where your disaster re...
Instant Work Life Balance Recovery Strategies for Busy People
  Have you ever experienced making silly mistakes when you are tired and lack concentration? That can put you even more behind schedule and add even more pressure. The tendency is to then work even harder with less ph...
It Doesn't Matter WHAT They Say!
  I went to the chiropractor this week and told him my right arm had gone numb and my neck was tight and hurting. He gave me a great adjustment and then told me that my neck was losing its curve and I have arthritis. ...

Related Forum Posts Related Forum Posts
Contingency Planning and Disaster Recovery: A Small Business Contingency Planning and Disaster Recovery: A Small Business
Books for Women Entrepreneurs Books for Women Entrepreneurs

 
About the Author


International Monetary Fund
(Visit International's Website)
The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy.
Have A Suggestion?

View Author's Video
Become An Author

Free Downloads


International Monetary Fund's

Complete
List Of
African-Accounts
Articles


First Name
Last Name
Email
 
If you enjoyed this article, get International Monetary Fund's Complete List of African-Accounts Articles For FREE!
Become An Author