This study argues that the market fundamentalist approach to economics, promoted by most of the industrialised countries and the Bretton Woods institutions, actually increases the vulnerabilities of small and poor countries, exposing them to financial crises. It argues that claims that global growth and equity would best be served through deeper financial integration are founded on weak theoretical and empirical premises. It shows how economic liberalisation in poor countries with weak and underdeveloped markets and institutions, with no welfare support systems, brings few benefits, and simply exacerbates poverty. The co- authors fear the impacts may be permanent, as current trends indicate deep poverty will be confined within defined geographical boundaries, leading to a ever-widening gap between rich and poor.

The emerging African prespective on the complex issue of structural adjustment is here analysed. It answers the major challenge for Africans themselves to lead the reform process which has been dominated by external ideas and models. The editors, two of Africa's top scholars, provide a succinct yet comprehensive synthesis of the adjustment debate from a truly African perspective, supported by thirty individual studies, twenty-five of which are from top economists and scholars from every corner of Africa. For decades now, many African countries have implemented the structural adjustment programs of the Bretton Woods Institution. And yet extreme poverty and underdevelopment continue to plague what is becoming the world's forgotten continent. Responding to this need for a new approach from within, the editors articulate a path for the future, underscoring the need to be sensitive to each other's unique history and current condition. They argue for a broader policy agenda and for a much more active role for the state within what is largely a market economy.