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The political economy of financial reform in Africa

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  • Thandika Mkandawire

    (UNRISD, Geneva, Switzerland)

Abstract

The paper argues that, if for many years financial policy was aimed at addressing issues central to development and nation-building, in more recent years it has become tethered to the objectives of stabilization and debt repayment. Following a review of the African experience with financial liberalization, the paper calls for the subordination of financial policy to the needs of long-term economic growth through provision for more long-term capital for productive investment through capital market developments and establishment of specialized development financial institutions. The paper also argues that financial liberalization has had little political anchoring in African countries and has severely constrained the policy choices for emerging democracies. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Thandika Mkandawire, 1999. "The political economy of financial reform in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(3), pages 321-342.
    • Handle: RePEc:wly:jintdv:v:11:y:1999:i:3:p:321-342
    DOI: 10.1002/(SICI)1099-1328(199905/06)11:3<321::AID-JID594>3.0.CO;2-V
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    References listed on IDEAS

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    1. Lewis, Peter & Stein, Howard, 1997. "Shifting fortunes: The political economy of financial liberalization in Nigeria," World Development, Elsevier, vol. 25(1), pages 5-22, January.
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    2. Isaac Abotebuno Akolgo, 2023. "Ghana's Debt Crisis and the Political Economy of Financial Dependence in Africa: History Repeating Itself?," Development and Change, International Institute of Social Studies, vol. 54(5), pages 1264-1295, September.
    3. James Heintz & Robert Pollin, 2008. "Targeting Employment Expansion, Economic Growth and Development in Sub-Saharan Africa: Outlines of an Alternative Economic Programme for the Region," Published Studies targeting_employment_expa, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Hulse, Merran, 2018. "Cultural values, popular attitudes and democracy promotion: how values mediate the effectiveness of donor support for term limits and LGBT+ rights in Uganda," IDOS Discussion Papers 26/2018, German Institute of Development and Sustainability (IDOS).
    5. Andrew M. Fischer & Servaas Storm, 2023. "The Return of Debt Crisis in Developing Countries: Shifting or Maintaining Dominant Development Paradigms?," Development and Change, International Institute of Social Studies, vol. 54(5), pages 954-993, September.
    6. James Heintz & Léonce Ndikumana, 2010. "Working Paper 108 - Is there a Case for Formal Inflation Targeting in Sub-Saharan Africa?," Working Paper Series 245, African Development Bank.
    7. James Heintz & Léonce Ndikumana, 2010. "Is There a Case for Formal Inflation Targeting in Sub-Saharan Africa?," Working Papers wp218, Political Economy Research Institute, University of Massachusetts at Amherst.
    8. Belinda Archibong & Brahima Coulibaly & Ngozi Okonjo-Iweala, 2021. "Washington Consensus Reforms and Lessons for Economic Performance in Sub-Saharan Africa," Journal of Economic Perspectives, American Economic Association, vol. 35(3), pages 133-156, Summer.
    9. Chandru P. Chandrasekhar, 2007. "Financial Policies," Policy Notes 3, United Nations, Department of Economics and Social Affairs.

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