Adjustment in Africa

To reverse the economic decline that began in the 1970s, many sub-Saharan African countries have undertaken efforts to restructure their economies. This has included liberalizing trade, deregulating markets and prices, privatizing public enterprises, and strengthening management of the financial and public sectors. Implementation has been uneven in different countries, and even those countries that have attempted major reforms have not achieved poicies that are considered sound by international standards. A key finding of this book is is that improving policies paid off in higher GDR and sectoral growth rates, which are vital to reducing poverty; but in countries where policies deteriorated economic performance worsened. Despite the importance of reforming economic policies, it is not enough and countries need to invest more in human capital and infrastructure, expand their institutional capacity, and develop better governance. This is the second title in the World Bank Policy Research Reports (the first was the East Asian Miracle 1993).