Development Finance

  • George B. N. Ayittey


To spearhead development, the state needed power and resources. When additional powers were needed, the state simply arrogated them or secured them through a rubber-stamp parliament. Resources could be secured in a variety of ways:
  • Use of foreign exchange reserves

  • Taxation

  • Inflationary finance

  • Domestic borrowing

  • Foreign borrowing

  • Windfall from a mineral export (diamonds, gold or oil)


Central Bank Foreign Exchange Development Finance Money Supply Budget Deficit 


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Copyright information

© George B. N. Ayittey 2005

Authors and Affiliations

  • George B. N. Ayittey
    • 1
  1. 1.USA

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