Africa's Debt Crisis: Are Structural Adjustment Programs Relevant?

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Periodical article

Title:	Africa's Debt Crisis: Are Structural Adjustment Programs Relevant?
Authors:	Mengisteab, Kidane Logan, Bernard I.
Year:	1991
Periodical:	Africa Development: A Quarterly Journal of CODESRIA (ISSN 0850-3907)
Volume:	16
Issue:	1
Pages:	95-113
Language:	English
Geographic term:	Africa
Subjects:	external debt economic policy Economics and Trade Politics and Government
External link:	https://www.jstor.org/stable/43657879
Abstract:	Africa's debt crisis is more fundamental and of a more long-run nature than the debt crisis in other developing regions. Since the early 1980s, the IMF and the World Bank have actively promoted structural adjustment programmes (SAP) in order to realign and invigorate debt-ridden and slow-growing economies, thereby enabling them to overcome internal and external disequilibria. This study first identifies the structural problems that have made the debt crisis in Africa more serious than elsewhere. Next it examines the relevance of SAPs in overcoming these structural problems, analysing the implications of some of the critical components of the SAPs, namely deflationary policies, devaluation, and price decontrols. It concludes that SAPs, in their present form, are not equipped to achieve the major reforms that are needed to engender efficiency in resource allocation and export competitiveness. Political reforms are needed, food production should be given top priority, and export diversification requires active State involvement. Bibliogr., notes, ref., sum. in French.