IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-24414-0_6.html
   My bibliography  Save this book chapter

Foreign Resource Flows and Financing of Development in Sub-Saharan Africa

In: The International Monetary and Financial System

Author

Listed:
  • Benno J. Ndulu

Abstract

This paper reviews the role of external financing in development in sub-Saharan Africa, paying particular attention to the structural constraints which economies in the region face. The central role of external finance is identified as relieving the foreign exchange constraints to production and investment. The review of the trends shows that net foreign resource transfers into Africa have declined steeply in the last 12 years relative to GDP. A rapid rise in the debt servicing burden from the very large debt overhang is the key explanation. Losses from the deterioration of the external terms of trade further compounded the problem. The paper recommends action in four areas: the write-down of the debt stock to provide relief to the future servicing burden; diversification from debt instruments to foreign direct investment; enhancing effectiveness in the utilization and disbursement of official development assistance; and the provision of timely official credit to help ride out temporary shocks.

Suggested Citation

  • Benno J. Ndulu, 1996. "Foreign Resource Flows and Financing of Development in Sub-Saharan Africa," Palgrave Macmillan Books, in: G. K. Helleiner (ed.), The International Monetary and Financial System, chapter 6, pages 135-156, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-24414-0_6
    DOI: 10.1007/978-1-349-24414-0_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ute Pieper, 1998. "Deindustrialization and the Social and Economic Sustainability Nexus in Developing Countries: Cross-Country Evidence on Productivity and Employment," SCEPA working paper series. 1998-20, Schwartz Center for Economic Policy Analysis (SCEPA), The New School, revised Mar 1999.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-24414-0_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.