Download e-book for kindle: Africa and the International Monetary Fund : papers by International Monetary Fund, Gerald K. Helleiner

By International Monetary Fund, Gerald K. Helleiner

Edited through G.K. Helleiner, this quantity includes the lawsuits of a symposium together subsidized through the organization of African critical Banks and the IMF that was once held in Nairobi, Kenya, in may well 1985.

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Additional resources for Africa and the International Monetary Fund : papers presented at a symposium held in Nairobi, Kenya, May 13-15, 1985

Sample text

Not all are suitable for processing, but many are. India, for example, no longer exports raw hides and foresees the day when it will no longer export leather, but only leather products. Tanning and the manufacture of leather products involve high value added and are not, in world terms, very technical nor capital intensive. That is one example. Another is specialty textiles, such as African prints and garments made from them. A second way is developing new manufacturing units based on natural resources and exporting finished or semifinished manufactures, such as, for example, pulp and paper from softwoods and ammonia and urea from natural gas.

It is crucially important to clear up this situation so that the earlier harmonious relationship between the Fund and its African members will be restored, and both sides will be able to make progress in a spirit of mutual understanding and cooperation. Many excellent, detailed studies diagnosing our present ills have been made by international, regional, and national organizations, and by individual scholars. I think there is a unanimity of opinion that these ills are the combined result of severe exogenous shocks, such as the steep oil-price escalations in the last decade, persistent drought, prolonged recession in industrial countries and their resort to increased protectionism, continued policies of strict monetarism, and reduction in real terms of external assistance.

I am sure all of us will be happy to assist the Fund in such endeavors. In the present difficult circumstances, our African economies are in most cases too import intensive and insufficiently export intensive. Therefore efficient import substitution and efficient export promotion are not alternatives, but necessary complements, if we are ever to regain external balance. This is particularly true of industry that must play an important part in restructuring Africa. About 60-70 percent of our agricultural exports are of products for which—given their price elasticities, rates of demand growth, and Africa's share of world trade—rapid growth in export volume would reduce export earnings throughout Africa.

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Africa and the International Monetary Fund : papers presented at a symposium held in Nairobi, Kenya, May 13-15, 1985 by International Monetary Fund, Gerald K. Helleiner

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