The World Bank Defends Its PoliciesAfrica's Adjustment and Growth in the 1980's by World Bank; UNDPReview by: Aaron SegalAfrica Today, Vol. 36, No. 3/4, Shari'a Law and Strife in the Sudan: Is Peace Possible? (3rdQtr. - 4th Qtr., 1989), p. 124Published by: Indiana University PressStable URL: http://www.jstor.org/stable/4186603 .

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The World Bank Defends Its Policies

Aaron Segal

World Bank and UNDP, AFRICA'S ADJUSTMENT AND GROWTH IN THE 1980'S (Washington, DC: World Bank, 1989), pp. 38, $6.00.

This brief document is one of the most important policy and analysis statements on Africa to have been made in recent years. It contends that the 18 Sub-Saharan states that have by 1988 initiated structural adjustments recommended by the World Bank and the UNDP (United Nations Development Program) have during the 1985-1988 period significantly outperformed economically the other states that have rejected reforms or only weakly implemented them.

The reforms involve devaluation, "limits on government borrowing and restraints on government expenditures," and "raising producer prices and liberalizing marketing and pricing systems, especially for food crops" There has been a pronounced shift of bilateral and multilateral aid and relief from external debts to favor countries attempting structural adjustments.

The World Bank maintains that "the growth that appears to be resulting, at least in part, from this reform and adjustment helps raise living standards overall and especially for the poor" Perhaps more importantly it argues that "Africans accepted the principle responsibility for their economic decisions and destiny'

The analysis proceeds from the assumption that domestic economic policies rather than the extemal environment have been primarily responsible for past economic regression. "Africa's crisis" cannnot be explained satisfactorily explained as a result of an adverse international economic climate, low commodity prices, or dwindling foreign assistance. This policy statement and compilation of short-term data is likely to determine donor practices and African economic options for many years to come. No intellectually coherent alternative set of policies and analyses is currently available. The World Bank believes that 'Sub-Saharan Africa can have adjustments with growth, and an improving standard of living, even when the external environment is not favorable" This may be wishful thinking but the limited reforms undertaken to date are beginning to pay off in some countries. This document is essential reading for anyone interested in the available economic options and their rationale.

Aaron Segal is the Florence J Gould visiting scholar in the Department of International Affairs at the American College in Paris, 31 Avenue Bosquet, Paris, France 75007.

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