Hostname: page-component-78c5997874-94fs2 Total loading time: 0 Render date: 2024-11-02T22:25:28.218Z Has data issue: false hasContentIssue false
  • English
  • Français

Foreign Debt and Prospects for Growth in Africa During the 1980s

Published online by Cambridge University Press:  11 November 2008

Adebayo Adedeji
Get access Rights & Permissions [Opens in a new window]

Extract

One of the major objectives sought by the New International Economic Order is to secure favourable conditions for the transfer of resources to the Third World, and to ensure that they are fully utilised for the development of the countries concerned.1 However, the unprecedented growth of the global economy since World War II has not been equitably distributed between the rich and poor nations. Unfortunately, within this international scenario, the increasing external indebtedness of the latter has had, and still has, wide-ranging domestic implications that have rocked the foundations on which many African economies stand.

Type
Articles
Information
The Journal of Modern African Studies , Volume 23 , Issue 1 , March 1985 , pp. 53 - 74
Copyright
Copyright © Cambridge University Press 1985

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

page 53 note 1 United Nations General Assembly Resolutions 3201 and 3202 on the Declaration and the Programme of Action on the Establishment of a New International Economic Order, New York, 1974.Google Scholar

page 53 note 2 See McMullen, Ned J., ‘Historical Perspectives of Developing Nations' Debt’, in Franks, L. G. and Sciber, M. J. (eds.), Developing Country Debt (Oxford, 1979).Google Scholar

page 54 note 1 For further views on this aspect, see Solomon, Robert, ‘A Perspective on the Debt of Developing Countries’, in Arthur, M. Okun and Perry, George L. (eds.), Brookings Papers on Economic Activity, Vol. II (Washington, D.C., 1977).Google Scholar

page 55 note 1 Source: World Bank, World Debt Tables. External Debt of Developing Countries, 1983–84 (Washington, D.C., 1984).Google Scholar

page 58 note 1 Source: as for Table 1.

page 59 note 1 Sources: World Bank Statistics, 1971–83; International Fund, Monetary, World Economic Outlook (Washington, D.C., 1984), Occasional Paper No. 27;Google Scholar and U.N.C.T.A.D., Handbook of International Trade and Development Statistics (Geneva, 1983).Google Scholar

page 60 note 1 For a detailed analysis, see Hardy, Chandra, ‘Rescheduling Developing Country Debts, 1956–1980: lessons and recommendations’, Working Paper No. I, Overseas Development Council, London, March 1981.Google Scholar

page 60 note 2 For an analysis of related issues, see the statement by Adebayo Adedeji, Executive Secretary of the United Nations Economic Commission for Africa, in commemoration of the 25th Anniversary of the E.C.A., 3 May 1983.

page 60 note 3 See Adedeji, Adebayo, ‘The Evolution of the Monrovia Strategy and the Lagos Plan of Action:a regional approach to economic decolonization’, Nigerian Institute for Social and Economic Research, Ibadan, March 1983.Google Scholar

page 61 note 1 See Clausen, A. W., ‘Lets Not Panic About the Third World Debts’, in Harvard Business Review (Boston), 6, 11–12 1983.Google Scholar

page 62 note 1 Fishlow, Albert, ‘Living with Developing Country Debt’, in Foreign Policy (New York), 3, Spring 1978.Google Scholar

page 62 note 2 See International Fund, Monetary, World Economic Outlook (Washington, D.C., 1983), Occasional Paper No. 21.Google Scholar

page 62 note 3 For a similar trend and analysis, see ‘Adjustment Policies and Negotiation of the External Debt’, in Economic Commission for Latin America, Twentieth Session, Santiago, 22 February 1984.

page 62 note 4 See U.N.C.T.C., ‘Transnational Corporations in World Development: a re-examination’, New York, 20 March 1978.

page 63 note 1 See U.N.C.T.A.D., ‘The International Market Power of Transnational Corporations’, Geneva, 14 April 1978.

page 63 note 2 See also E.C.A., ‘Transnational Corporations and Resources Flows in Developing African Countries’, Addis Ababa, 16 November 1981.

page 64 note 1 For a full analysis, see U.N.C.T.A.D., ‘Impact of Present International Monetary Situation on World Trade and Development’, Geneva, 1972; and I.M.F., World Economic Outlook (Washington, D.C., 1982), Occasional Paper No. 9.Google Scholar

page 64 note 2 See Tedajo, Joseph, ‘Commerce, échange et régulation des économies africaines au sud-Sahara au cours des années 80’, in Afrique et développement (Dakar), III, 2, 1982, pp. 60–7.Google Scholar

page 64 note 3 For instance, as at 30 November 1984, 13 currencies were pegged to the French franc, 12 to a European basket, 7 to the United States dollar, 6 to Special Drawing Rights, 2 to the South African rand, I to the Spanish peseta, and I to the pound sterling, while 6 were unpegged to any major currency. I.M.F., International Financial Statistics (Washington, D.C.), 38, I 01 1985.Google Scholar

page 64 note 4 See African Centre for Monetary Studies, ‘L'Impact de système monétaire européen sur les pays africains’, Dakar, January 1980, p. 20.

page 65 note 1 U.N. Department of Economic Affairs, ‘Commodity Trade and Economic Development’, New York, November 1953, p. 16.

page 65 note 2 See E.C.L.A., ‘Adjustment Policies and Renegotiation of the External Debt’, Santiago, 22 February 1984.

page 67 note 1 In 1983, for instance, the local debt of all developing countries was estimated at $810,000 million, out of which $100,000 million, involving some 30 countries was renegotiated. See A. W. Clausen's statement to the European Management Forum, Devon, Switzerland, 26 January 1984.

page 68 note 1 Sources: various country publications, I. M.F. and World Bank reports, Africa Economic Digest (London), and Marchés tropicaux et méditerranéens (Paris).Google Scholar

page 68 note 2 I.M.F., ‘Debt Rescheduling: what does it mean?’, in Finance and Development (Washington, D.C.), 20, 3 09 1983.Google Scholar

page 69 note 1 See the provisions of the Treaties establishing the Economic Community of Central African States (E.C.C.A.S.), Economic Community of West African States (E.C.O.W.A.S.), and the Preferential Trade Area (P.T.A.) for Eastern and Southern African States.

page 71 note 1 ‘Report on Symposium on Aleviation of Afnca's External Indebtedness’, Nairobi, May 1983, organised by the African Development Bank.

page 71 note 2 For a detailed analysis, see Hope, Nicholas and Klein, Thomas, ‘Issues of External Debt Management’, in Finance and Development, 20, 3 09 1983.Google Scholar

page 71 note 3 Such a bureau or council could be established either as an autonomous body or within the Government – for example, in the Office of the President or in the most appropriate Ministry. Its membership could include senior financial and investment analysts, banking specialists, development economists, trade experts, and legal advisers, who would appraise all aspects of loans before they are contracted.

page 72 note 1 See Resolutions 165(S–IX) of 11 March 1978 and 222(XXI) of September 1980 of the Development Board of U.N.C.T.A.D., Geneva.

page 73 note 1 See ECA and Africa's Development, 1983–2008. a preliminary perspective study (Addis Ababa, 1983.)Google Scholar

page 73 note 2 This framework at regional level is provided in the Lagos Plan of Action for the Economic Development of Africa, 1980–2000 (Geneva, 1982).Google Scholar