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The key challenge for achieving sustained development in developing
countries relates to quality of domestic governance, which in turn
is strongly affected by external interventions. Domestic governance
includes politics, policy formulation, institution building and
policy implementation. It is important for both international and
domestic agents to understand how the interplay between external
interventions and domestic governance affects social and economic
outcomes. This volume presents a series of studies analysing the
links between external interventions and domestic governance in the
areas of economic, social and security policy. Key questions that
are addressed here include: How do external interventions in
economic, social and security areas affect domestic governance in
developing countries? Is aid more effective in decentralised
systems of government? What are the interactions between external
interventions and domestic governance? How can external agents
advance domestic governance? Due to its strong focus on external
interventions and domestic governance, this book will be of
interest to scholars of development studies across the social
sciences, in addition to the fields of economics, political
science, sociology and geography.
The key challenge for achieving sustained development in developing
countries relates to quality of domestic governance, which in turn
is strongly affected by external interventions. Domestic governance
includes politics, policy formulation, institution building and
policy implementation. It is important for both international and
domestic agents to understand how the interplay between external
interventions and domestic governance affects social and economic
outcomes. This volume presents a series of studies analysing the
links between external interventions and domestic governance in the
areas of economic, social and security policy. Key questions that
are addressed here include: How do external interventions in
economic, social and security areas affect domestic governance in
developing countries? Is aid more effective in decentralised
systems of government? What are the interactions between external
interventions and domestic governance? How can external agents
advance domestic governance? Due to its strong focus on external
interventions and domestic governance, this book will be of
interest to scholars of development studies across the social
sciences, in addition to the fields of economics, political
science, sociology and geography.
Uganda in the 1970s and early 1980s was one of Africa's more tragic
economic stories. Emerging from civil war, it had to embark on
reform in the early to mid-1980s from a position of severe
political weakness. In the study, the effects of economic policy at
the aggregate level are discussed in detail, but 'snapshot'
empirical analyses of responses at the household level, both urban
and rural, are also presented. Uganda was for many years considered
to be Africa's 'worst case'; its recent recovery thus provides hope
for similar countries in the region.
In a broad survey this issue of "Current African Issues" presents a
multifaceted picture of the current state of the African economy.
After a period of falling per capita incomes that started in the
1970s, Africa finally saw a turnaround from about 1995. The last
few years have seen average per capita incomes in Africa grow by
above 3 per cent per year on average, partly due to the resource
boom but also due to improved economic policies. Africa receives
more aid per capita than any other major region in the world and
there is a significantly positive effect of aid on growth.One of
the most notable aspects of the current process of globalization is
the increase in trade between Sub-Saharan Africa and Asia,
particularly China and India. The authors conclude with a call for
policy coherence among donors. The most problematic areas
politically for policy change of those discussed in the paper are
not aid policy but trade policy and the European Union Common
Agricultural Policy. This is a challenge to EU policy makers, since
the latter areas are probably the most important to change if we
take our commitment to development seriously.
Zambia is highly dependent on copper exports, which makes the
country very vulnerable to fluctuations in its price. From
independence in 1964 until the mid-1970s Zambia had reasonable
growth, largely resulting from on good revenues from copper
exports, but it remained a highly dualistic economy. In the 1970s
the country was hit by oil-crises and by a copper-bust, which
dramatically changed the fortunes of the country. Since the
government assumed that the fall in copper prices was a temporary
setback, they chose to avoid serious adjustment measures, and
instead borrowed money on the international financial markets. It
is from this period onward that Zambia's large debt was built up.
From 1983 the government initiated some stabilisation and
structural adjustment measures, with very limited success. This
study first discusses the structural problems Zambia and the
policies of adjustment that have been tried. It then uses a
computable general equilibrium model to analyse the impact of
various strategies with regard to external resource transfers. It
compares the impacts of foreign loans or grants to the private and
the public sectors, as well as the impact of a turnaround of the
country's fortunes with regard to its external terms of trade. The
results of the policy analysis show that the scope for growth is
highly dependent on the tightness of the external resource
constraint. Of course, many of the growth constraints are domestic
in nature, but a relaxation of the foreign exchange constraint will
also make it easier to address the domestic policy problems. With
the debt burden that Zambia carries, debt service tends to dominate
the policy-making machinery.
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