The Decline of an Economy
As shown in Chapter 2, the World Bank, the premier international agency lending to African countries, developed in the 1980s a standard explanation for poor economic performance which it applied generally to the countries of the SSA region. In this analysis, external shocks to the sub-Saharan countries enter as secondary effects, with the primary cause of economic decline resulting from poor economic policy (‘mismanagement’) and especially unwise investment decisions. This characterization of a sub-continent’s problems is not a strawman created by the critics of the Bank, but an argument repeated again and again with great force in official documents.
KeywordsCapita Income External Shock Trade Deficit Fiscal Deficit Monetary Expansion
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