Free Economics Dissertations - The Most Important Reforms Have Been The Structural Adjustment Programmes
The most important reforms have been the Structural Adjustment Programmes (SAPs), which constitutes of the first generation of reforms. Second are the various public sector reforms, which include decentralization, right sizing, and the Poverty Eradication Action Plan (PEAP), all of which have been briefly touched upon in the above sections of the dissertation.
A historical and economic perspective of the said strategies of both the IMF and the World Bank with respect to the countries of the African continent reveals that it was the decade of the 1970s, when the first wave of economic reforms were introduced in a number of African countries following what was then termed as the "African economic crisis". The phrase was perhaps coined to point out the glaring depths of poverty, economic decay and political chaos which had gripped a number of African countries after the first decade of their independence. (Majority of African countries 'won' independence in the decade of 1960). Africans in general welcomed the overthrow of European dictators across the length and breadth of the dark continent, as they had suffered tremendously from practically all forms of injustices including racial discrimination, and exploitation of both human and natural resources. Independence for the Africans gave them a new impetus as they foresaw an era of progress and prosperity in the coming decades, in direct contrast to the otherwise oppressive colonialism.
According to figures and statistics collected by a number of writings including that of the World Bank, one may observe that after the end of the 1st decade of independence, majority of the African countries were worse off as compared to the period immediately after their independence. For example 12 African countries showed a negative economic growth per capita between the period of 1960 and 1970. This figure gradually rose to 20 countries between the period of 1970 and 1976. Another study showed that between the period of 1960 and 1979, 8 countries witnessed a negative per capita GDP growth pattern, 0 to 1 percent in 10 countries, and 1 to 5 percent negative GDP growth in 5 countries. An overall study of the entire African continent excluding South Africa, showed that per capita income witnessed an increase from US 133 in 1960 to US 170 by 1970. However, by the end of 1979, these figures had fallen to US110 for some of the African countries, while other the same increased to US370. (Callaghy and Ravenhill, 1993: 1-2; Ravenhill, 1986; Onimode, 1988; World Bank, 1989; 2000)
An equally important segment of Africa's economic decline has been the foreign debts, which have shown no signs of receding ever since both the IMF and the World Bank stepped in with the various reform packages and economic austerity measures.
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