Download Adjustment and Agriculture in Africa: Farmers, the State and by Jennifer Clapp (auth.) PDF

By Jennifer Clapp (auth.)

With the adoption of a global Bank-sponsored structural adjustment programme within the mid-1980s, Guinea underwent a dramatic swap in its fiscal and agricultural guidelines. The country's event during the last decade illustrates probably the most urgent difficulties encountered via African nations pursuing financial reform. This publication analyses those problems through interpreting the adjustment adventure in Guinea because it affected the country's total political economic system and the rural area specifically. It additionally locations 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

Example text

The Bank established the Special Facility for Africa (SF A) in 1985, and the Special Program of Assistance (SPA) in 1987, both of which provided further concessional loans for adjusting countries. At the same time, the IMF also established in 1986 the Structural Adjustment Facility (SAF) and in early 1988 the Enhanced Structural Af rica, Agriculture and War/d Bank 23 Adjustrnent Facility (ESAF) . These facilities offered balance of payrnents support for adjustrnent programmes, but gave langer time frarnes for repayment and carried less har sh conditions than sta nd-by loans.

Without increased aid, net capital flows to Africa would dry up. " The Bank did begin to acknowledge that the higher level of external financing reforming countries have received compared to non-reformers has been inf1uential in enhancing the performance of the former, but has insisted that this is not the determining factor. The Bank began in the early-to-mid-1980s to take action on expanding its own lending to Africa as weil as that from other donors. This increase in assistance was intended to help with adjustment efforts by financing imports, and thus mitigating any negative effects from the declining terms of trade.

IDA-eligible countries in Africa suffered an especially severe 22 Adjustment and Agriculture in Africa drop in their terms of trade, with a decline in the average export price of 19 per cent over 1980-85. 4 1 Although the Bank admitted that the declining terms of trade constituted a constraint, it held firm on its stance that loss of market share, rather than declining commodity prices, was the main cause of Africa's declining export receipts. " Though its attention to this problem increased, by the late 1980s the Bank returned to its original stance that the external environment had little to do with economic performance, and that policy reform was the most important factor.

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