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By Frances Stewart, Sanjaya Lall, Samuel M. Wangwe

The international financial institution and the IMF dominate policy-making in Africa this day. This ebook considers the consistency among their adjustment rules and long-run improvement wishes, with an research of nation event. an alternate improvement approach is proposed.

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Regional integration can also help realise scale economies in training highly specialised labour, setting up technology support institutions, importing and adapting new technologies and promoting manufactured exports. (e) Diversification of Exports The structure of African exports remains largely as it was in colonial times - heavily concentrated on a few primary products. Adjustment policies, which have involved improving the internal terms of trade for traditional exports, have encouraged this specialisation.

67 Policies likely to increase participation include: - democratisation; decentralisation of the government machine, and introduction of local government based on local democracy; Frances Stewart, Sanjaya Lall and Samuel Wangwe - 37 structured markets (see above) to ensure that resources are available for low-income groups; support for group organisations; reform of aid structures to support participatory projects. ARE PRESENT ADJUSTMENT POLICIES CONSISTENT WITH LONG-RUN DEVELOPMENT NEEDS? The consistency of present policies with long-run needs can be assessed in two dimensions: first, is the issue of whether the present policies are succeeding in restoring non-crisis conditions, in the sense of conditions in the balance of payments and the domestic economy, such that growth of investment, public expenditure and imports can be resumed without causing a critical foreign exchange shortage.

However, the net stock of DFI has not been growing significantly in recent years. The total stock in SSA in 1982 was $13 bn at current prices, not significantly different from the $11 bn in 1975. From 1976 to 1986 most countries experienced disinvestment. The direct impact of DFI on the balance of payments (BOP) has generally been negative in recent years with outflows of dividends exceeding new inflows. 2 bn at 1982 exchange rate). In Kenya, the net contribution was positive until the 1970s, but from 1979 to 1986 outflows of dividends and free income greatly exceeded new inflows.

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