African Finance and Lack of Development
38 Pages Posted: 25 May 2005
Date Written: May 20, 2005
Sub-Saharan Africa has made the least progress over the past three decades, and - except for South Africa - it is now one of the world's poorest regions. Even a country relatively untouched by war that had been widely hailed as "reformed" by the early 1990s, Tanzania, has turned in a disappointing growth performance that is hard to explain. Foreign assistance programs that try to bypass the national and local authorities in the recipient countries do not encourage institutional development and strengthen public-service ethos. In much of Sub-Saharan Africa, incentive compatibility of good governance for building the country together still has to be instilled before cumulative progress may be possible.
Keywords: Sub-Saharan Africa, growth accounting, economic development, financial development, debt forgiveness
JEL Classification: O11, O16, O19, O23, F34
Suggested Citation: Suggested Citation