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World Bank adjustment lending and economic performance in sub-Saharan Africa in the 1980s : a comparison with other low income countries

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  • Elbadawi, Ibrahim A.
  • Ghura, Dhaneshwar
  • Uwujaren, Gilbert

Abstract

The authors investigated the factors that influenced the participation of sub - Saharan African countries and all low-income countries in World Bank adjustment lending. They estimated how the Bank's adjustment programs affected economic performance in both regions. They found that the marginal contribution of Bank-supported adjustment programs to export performance has been postive and significant in sub - Saharan Africa, given the potentially important links between export growth and economic growth. But adjustment programs have not significantly affected economic growth in sub - Saharan Africa and have had a deleterious effect on investment there. This strengthens theargument of those who call for more explicit consideration of the initial conditions of the sub - Saharan African economies in the design, emphasis, and schedule of their adjustment programs. For one thing, a redefined but more important role for governments is in order for reforming African economies. Fiscal and monetary retrenchment are still indispensable, but it is critical that there be more public investment in infrastructure, human capital, and agricultural technology - to generate a supply response. Moreover, efforts must be made to make policy reforms more credible to the private sector and to improve program implementation. Also, governance and political stability - politically sensitive issues - critically affect the adoption, implementation, sustainability, and credibility of adjustment programs.

Suggested Citation

  • Elbadawi, Ibrahim A. & Ghura, Dhaneshwar & Uwujaren, Gilbert, 1992. "World Bank adjustment lending and economic performance in sub-Saharan Africa in the 1980s : a comparison with other low income countries," Policy Research Working Paper Series 1000, The World Bank.
    • Handle: RePEc:wbk:wbrwps:1000
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    References listed on IDEAS

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    Cited by:

    1. Makedonas Eleftherios & Bellos Sotirios & Turan Subasat, 2015. "IMF Lending and Poverty in Developing Countries," Journal of Heterodox Economics, Sciendo, vol. 2(2), pages 113-137, December.
    2. Alemayehu Geda, 2002. "Debt Issues in Africa: Thinking beyond the HIPC Initiative to Solving Structural Problems," WIDER Working Paper Series DP2002-35, World Institute for Development Economic Research (UNU-WIDER).
    3. Musisi, A.A., 2006. "Physical public infrastructure and private sector output/productivity in Uganda: a firm level analysis," ISS Working Papers - General Series 19182, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

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