Political economy of africa
Here a set of questions and each have hints for answering. I will provide the articles which you have to use to obtain the answers. and do not use another article. Please number the questions.
1. Discuss the implication of the following quotation (by Ali Mazrui) for African development: “In much of Africa, it is easier to find a bottle of beer than a glass of clean water.” Distorted
2. The World Bank and the IMF are blamed for “promoting a uniform set of macroeconomic and structural policies across countries…” What is wrong with this recommendation? Explain. One size doesn’t
3. Explain why western economists get development in African economies wrong? They are looking for deficiencies not what is working
4. Discuss the development strategies that African countries had been following during the pre-independence and early post-independence periods. Be more specific. Export of primary goods, self-
5. Discuss the policy reforms recommended by the World Bank and the IMF under the structural adjustment program. Liberalization and downsize government.
6. The current growth strategies of African countries aim to achieve the following: Integration, Industrialization and Diversification. Explain why. Exports need to be diversified, need to find own
niche market with focus on industry, and the world changing and there is need to integrate well.
7. Is industrial policy feasible in Africa? Discuss specific reasons to support your argument. Yes, if they use the WTO loopholes and get funding from sources other than WB/IMF with no
8. Why do African countries need structural transformation? Currently they are at the agricultural sector, which is a low productivity sector
9. How do you measure if a country has achieved some level of structural transformation? Look at how much each sector contributes to employment/productivity.
10. Have African countries achieved expected level of structural transformation? Why or why not. No, because most countries rely on agricultural sector.
11. Can African countries learn from China and India to achieve comparable level of structural transformation? Yes, they moved their labor force out of the low productivity sector. Which country
(China or India) serves as a model for a typical African country? China is a good fit since it has similar structure.
12. Is Urbanization a good indicator of structural transformation in Africa? Explain. No, because urbanization in Africa is not mainly due to industrialization but mainly due to informal
13. Global value chain is one hope for African countries to industrialize and integrate well into the world economy. What is the prospect of this happening in the near future? A couple countries
are at the bottom end of some value chain, but only to supply raw materials. The prospect is very low in the near future.
14. Financing Development in Africa: Why do African countries unable to mobilize enough domestic saving to finance their own development projects? Most rural areas in Africa don’t have access to
banks to mobilize saving.
15. Even though there is enough savings in African continent (by oil and resource exporting countries), there is significant savings gap for other countries (such as oil-importing countries). Why
can’t those countries with significant savings gap borrow from those countries in Africa with significant savings? Explain. African countries are not connected by reliable banking network and they
need to go through banks in advanced countries.
16. Discuss at least five reasons that resulted in the accumulation of debt by most African countries during the 1980s and 1990s.
17. William Easterly (2003) in his famous graph indicated how growth in per capita GDP and aid flow went in opposite directions for most of the 1970s, 1980s, and 1990s for sub-Saharan African
countries. How do you explain that (the opposition direction of aid and GDP per capita growth)? National interest of donors, corrupt governments, misguided policies
18. Discuss five of the major international sources of finance for development in Africa (loans, aid, FDI, equity, and remittances) and identify which of these holds the future for African
countries. FDI and Remittances
19. Discuss at least two reasons why most African countries run trade balance deficit. Prices of export goods has been declining and prices of imports have been increasing
20. Discuss the pros and cons of inflow of foreign direct investment (FDI) in the African countries context.
21. Discuss improvements that African countries need to do to attract more FDI? Stable governments, strong institutional and regulatory framework, attractive incentives
22. Is regional integration necessary in Africa? Explain why yes, to attract FDI and to solve problems related to geography (landlockedness)
23. Discuss the two major preferential trade agreement between African countries and EU [EBA] and U.S (AGOA]. What are the major objectives of these agreements? Did they have significant impact on
African countries’ growth so far? Not really, since most OECD countries are lowering their trade barriers unilaterally
24. Of all the problems that we have discussed in this class, which one should African countries address first to grow as fast as possible?
25. What is behind the “Africa rising” narrative in recent years? Explain.