RESPONSES TO, AND IMPACT OF, THE CRISIS OF DEVELOPMENT IN AFRICA: REGIONAL AND SECTORAL PERSPECTIVES
The impact of multilateral agencies, especially those of the International Monetary Fund (IMF) and the World Bank, have been the subject of a number of studies in the literature of development. The chapters in this part are contributions to that rich literature in the context of several African states.
Aguibou Y. Yansané's "Extent of Financial Development Crisis: An Evaluation of Structural Adjustment in C÷te d'Ivoire, Senegal, and Guinea and What Each Can Learn from the Other" examines the causes of structural problems of the three neighboring countries. It looks at the resulting negative or stagnant real per capita growth rates.
Structural adjustment program (SAP) measures have reversed Senegal's agricultural policies. The New Agricultural Policy (NPA), launched in 1984, raised the selling price of peanuts to CFAF 90 per kg. The system of marketing cooperatives was replaced by a network of village sections with financial autonomy and broad remittances. This left the state, rather than market regulation, with responsibility for price stabilization. The success of liberalization has been mixed, because of severe constraints: low world prices for the country's commodities, the appreciated CFAF exchange rate, and the debt burden placed on the producer's returns. It is hoped that the new industrial policy and labor law reforms will contribute to increasing efficiency of the manufacturing sector. If so, this would alleviate the remaining problems of urban poverty and equitable growth and development. SAP austerity measures have contributed to a raise in farm output, which has helped the primary sector to recover. Also, inflation has slowed down. But, SAP measures have not been much help for the secondary and tertiary sectors. Especially, nonagricultural incomes have fallen, food prices have increased, and per capita consumption has fallen in real terms. Erosion in household consumption has bred a preference for unprocessed agricultural produce at the expense of manufactured goods.