Structural adjustment, primary resource trade and sustainable development in sub-Saharan Africa

• Published in: World development 1992-04, Vol.20 (4), p.497-512
• Main Author: Cheru, Fantu
• Format: Article
• Language: English
• Subjects: Africa; AGRICULTURE (INCLUDING HUNTING AND GATHERING); Area planning & development; Developing countries; Development; Economic development; Economic stabilization; ECONOMIC SYSTEM IN DEVELOPING COUNTRIES; ENVIRONMENT; Environmental aspects; Externalities (economics); FOOD AND SHORTAGES; INTERNATIONAL MONETARY FUND; International Trade; LDCs; Natural Resources; PUBLIC DEBT, INCLUDING NATIONAL DEBT; Public sector; Reforms; Social research
• ISSN: 0305-750X; 1873-5991
• DOI: 10.1016/0305-750X(92)90039-X

The food shortages, growing indebtedness and the appalling environmental crisis in sub-Saharan Africa cannot be understood in isolation from the strategies of development policies in the area of African governments have followed since independence. While adjustment policies in the area of pricing, exchange rates, public sector reform and liberalization of markets are some of the essential ingredients of a balanced national strategy, conventional International Monetary Fund/ World Bank prescriptions have often resulted in negative social and ecological effects. These short-term policies, designed to improve commodity exports to generate foreign exchange, often conflict with long-term development needs. Scarce land, water, credit and technology are being preempted by the export sector while the needs of small farmers in the areas of soil conservation, reforestation and food security are ignored. For sustainable development to occur, there must be a fundamental reorientation of government policies and resources toward solving rural problems. Land reform, credit, improved extension, greater government accountability, and people's participation are important prerequisites if poor farmers are to succeed. Further, policy reform in sub-Saharan Africa needs to be backed by improved measures to compensate for shortfalls in commodity export earnings caused by factors outside their control. Finally, significant debt write offs by bilateral and multilateral agencies are a sine qua non if sub-Saharan Africa is to resume a steady path of development.