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Overcoming Low Political Equilibrium in Africa: Institutional Changes for Inclusive Development

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  • Léonce Ndikumana
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    Abstract

    This paper examines the role that institutions have played in the performance of African economies over the past decades. It discusses the institutional changes needed to enable African countries to reach inclusive development in the near future. The paper starts from the premise that growth and development are the outcomes of policy choices, which in turn are the outcome of a complex process of political negotiation among various stakeholders – both domestic and foreign – who have interests that may be divergent. In other words, policy choices and the resulting development outcomes constitute a political equilibrium. It is therefore important to understand how such political equilibria arise, how they persist, and how they can be shaped or altered to achieve national goals.� Understanding the forces that govern policy making and the factors that drive growth and its distributional impact can shed light on how African countries can definitively overcome secular low growth and pervasive inequities; in other words how they can overcome low-development political equilibrium and achieve inclusive development. �

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    Bibliographic Info

    Paper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Working Papers with number wp331.

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    Date of creation: 2013
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    Handle: RePEc:uma:periwp:wp331

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    Keywords: political equilibrium; Africa; institutions; growth;

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    1. Giovanni Andrea Cornia & Milica Uvalic, 2012. "Learning from the past: Which of the past/current development strategies are best suited to deal with the ‘quadruple crisis’?," Working Papers 116, United Nations, Department of Economics and Social Affairs.
    2. Léonce Ndikumana, 2005. "Distributional Conflict, The State, and Peacebuilding in Burundi," Working Papers wp105, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. World Bank, 2012. "World Development Report 2013 : Jobs," World Bank Publications, The World Bank, number 11843, October.
    4. Reynolds, Lloyd G, 1983. "The Spread of Economic Growth to the Third World: 1850-1980," Journal of Economic Literature, American Economic Association, vol. 21(3), pages 941-80, September.
    5. Juma, Calestous, 2011. "The New Harvest: Agricultural Innovation in Africa," OUP Catalogue, Oxford University Press, number 9780199783199.
    6. Leander Heldring & James A. Robinson, 2012. "Colonialism and Economic Development in Africa," NBER Working Papers 18566, National Bureau of Economic Research, Inc.
    7. Erik S. Reinert & Rainer Kattel, 2009. "The Economics of Failed, Failing, and Fragile States: Productive Structure as the Missing Link," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 18, TUT Ragnar Nurkse School of Innovation and Governance.
    8. Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth," Working Papers 44, Center for Global Development.
    9. Shimeles, Abebe, 2010. "Community based health insurance schemes in Africa: The case of Rwanda," Working Papers in Economics 463, University of Gothenburg, Department of Economics.
    10. Channing Arndt & Paul Chinowsky & Sherman Robinson & Kenneth Strzepek & Finn Tarp & James Thurlow, 2012. "Economic Development under Climate Change," Review of Development Economics, Wiley Blackwell, vol. 16(3), pages 369-377, 08.
    11. José Antonio Alonso, 2012. "From aid to global development policy," Working Papers 121, United Nations, Department of Economics and Social Affairs.
    12. Ndulu,Benno J. & O'Connell,Stephen A. & Bates,Robert H. & Collier,Paul & Soludo,Chukwuma C., 2009. "The Political Economy of Economic Growth in Africa, 1960–2000," Cambridge Books, Cambridge University Press, number 9780521127752, October.
    13. Janvier D. Nkurunziza & Léonce Ndikumana & Prime Nyamoya, 2012. "The Financial Sector in Burundi," NBER Working Papers 18289, National Bureau of Economic Research, Inc.
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