IDEAS home Printed from
   My bibliography  Save this paper

Institutions and Capacity Building: The African Economic Development Potential Revisited


  • Mallick, Indrajit


Abstract: Risks faced in African agriculture and industry reduces the dynamic rate of return in these industries. Supply and demand constraints like scarcity of human capital and low effective demand further reduce the scope of industrialization. Institutions have to be developed to share the risks in consumption and production and thus achieve equity and efficiency. Capacity building through investment in the education, health and the public sector can bring about an efficient supply response. Monetary and fiscal intervention can ensure that such a supply response is met effectively and the benefits are passed to consumers, labor and entrepreneurs through a regulated market.

Suggested Citation

  • Mallick, Indrajit, 2005. "Institutions and Capacity Building: The African Economic Development Potential Revisited," MPRA Paper 27791, University Library of Munich, Germany, revised 10 Aug 2005.
  • Handle: RePEc:pra:mprapa:27791

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    1. Taylor, J. Edward & Mora, Jorge, 2006. "Does migration reshape expenditures in rural households? Evidence from Mexico," Policy Research Working Paper Series 3842, The World Bank.
    2. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Outlook for Remittance Flows 2009-2011 : Remittances Expected to Fall by 7-10 Percent in 2009," World Bank Other Operational Studies 10975, The World Bank.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Keywords: Institutions; Capacity Building; Risk Sharing; Dynamic Efficiency;

    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • G00 - Financial Economics - - General - - - General


    Access and download statistics


    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:pra:mprapa:27791. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.