By International Monetary Fund, Gerald K. Helleiner
Edited by means of G.K. Helleiner, this quantity includes the lawsuits of a symposium together backed by way of the organization of African relevant Banks and the IMF that used to be held in Nairobi, Kenya, in might 1985.
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Additional info for Africa and the International Monetary Fund : papers presented at a symposium held in Nairobi, Kenya, May 13-15, 1985
Clearly not all industries are suitable. For example, unsuitable are those with high direct and indirect recurrent import content or those producing and using technology designed for much larger markets and plant sizes than we can provide (although regional exporting may help reduce this scale barrier). But the sweeping characterization of all African industry as involving high import content, low domestic value added (including domestic purchases of goods and services), and hopelessly high cost is simply not empirically correct.
This would create an environment of changing price incentives that works directly against the steady price signals required by potential investors in new export goods or import substitutes. What we require instead is a gradual shift toward the new regime, backed by substantial balance of payments support to insulate the economy from short, sharp changes in earnings from our traditional exports. This example could be extended to other policies that are part of Fund packages. The Fund ought to help us through this kind of transition, and I believe it wishes to do so.
With good economic management, good world market conditions, and more patience than we can perhaps afford, African economies should be capable of producing far more output than at present and of noticeably improving the well-being of their people. Yet the stark reality of 1985 is so very far from this potential. 3 percent a year in the 1970s and growing more slowly in the mid-1980s. Moreover, Africa may be going through that part of the demographic transition in which population growth necessarily accelerates before it begins slowing down.
Africa and the International Monetary Fund : papers presented at a symposium held in Nairobi, Kenya, May 13-15, 1985 by International Monetary Fund, Gerald K. Helleiner