By Frances Stewart, Sanjaya Lall, Samuel M. Wangwe
The area financial institution and the IMF dominate policy-making in Africa at the present time. This publication considers the consistency among their adjustment regulations and long-run improvement wishes, with an research of kingdom event. another improvement procedure is proposed.
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Extra resources for Alternative Development Strategies in SubSaharan Africa
The optimistic scenario is that through joint ventures, entrepreneurial, managerial and technical functions will gradually be transferred, thereby not only increasing local capacities, but also the bargaining power of the local partner, which depends, among other factors, on local managerial and technical capability. 33 New forms of DFI, including joint ventures, have been growing in importance in Africa. 34 In Nigeria, for example, from 1976 to 1986, income linked to 'new forms' of DFI accounted for 40 per cent of total investment income paid overseas.
In Zimbabwe, it exists but is dominated by whites, while in the Cote d'Ivoire expatriate ownership and management is prevalent. The weakness of the medium to large indigenous private sector presents a major problem for privatisation, both from a political and an economic perspective. The vacuum that would be created by large-scale privatisation Frances Stewart, Sanjaya Lall and Samuel Wangwe 25 might be filled by foreign investment, but recent history and the nature of current technological development suggest that foreign investors are not anxious to expand in most African economies because of the fragile economic climate, poor infrastructure and low skill levels.
About 70 per cent of African trade is with OECD economies, although a higher proportion (over half) of the small amount of manufactured exports go to middle- or low-income economies. 43 Most African economies are too small for efficient import substitution. In many industries, import substitution on a regional basis is therefore the only way in which a minimum efficient scale of production can be realised. In addition, by extending the size of market, production on a regional basis allows for division of labour, specialisation and competition, all of which form essential aspects of efficient growth.