By J. Clapp
With the adoption of a global Bank-sponsored structural adjustment programme within the mid-1980s, Guinea underwent a dramatic swap in its financial and agricultural rules. The country's event over the last decade illustrates one of the most urgent difficulties encountered through African international locations pursuing financial reform. This publication analyses those problems via reading the adjustment event in Guinea because it affected the country's total political economic climate and the rural area particularly. It additionally areas this situation in the broader context of African adjustment.
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Additional info for Adjustment and Agriculture in Africa: Farmers, the State, and the World Bank in Guinea
51 In an attempt to improve upon its own awareness of political factors, in the latter half of the 1980s, the Bank's Economic Development Institute organised two series of seminars on the political dimensions of economic reform in Africa. The participants of the first series were political scientists, and the participants of the second series were African policy makers. The first series of seminars, held in 1986, were a forum for World Bank staff and university scholars to present their views on the political economy of adjustment in Africa.
6 But it is the ability of these countries to service their debts which is the crucial factor. 7 Because of SSA's lack of credit-worthiness in the eyes of private international bankers, a very high percentage of its debt is official, being either from multilateral institutions such as the World Bank, or from governments. Most of these loans are subject to policy reform conditions insisted upon by the official lenders, giving them considerable leverage over African governments. 8 The economic and agricultural crises in Africa unfolded in a hostile external environment.
But while it seems to have abandoned the latter strategy by the early 1990s, it clung to the former. Instead of doing away with market-based reforms, the Bank began to concede, at least in its official literature, that structural adjustment needed to take place within a wider 'enabling environment' if it was going to bring improvements in economic and agricultural performance. At the same time, the Bank saw it as necessary to keep its main line that the general thrust of adjustment strategy was the right one.
Adjustment and Agriculture in Africa: Farmers, the State, and the World Bank in Guinea by J. Clapp