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.