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Has international borrowing allowed African governments to overcome…

- - - - fiscal systems inherited from colonializm partially explain the state of african countries today mostly through excratvie industires and narrow tax base
    - - taxes on people could not be colllected so moslty invested into large infrastructural projects - because of the low revenue base from taxes this was inherited by the postcolonial governemtn until today
    - - governments understood export tax based economies were volitile during the interwar period but when they wanted to raise direct taxes they faced collective backlash from afrcians as well as settlers which didnt allow them to do the reform effectively
        
        They need structural transformation
        
        Monga and Lin 2014
        
        Monetary Policy
        
        its not clear if monetary policy will go into the IT dirrection but it probably shouldb because its goal is to lover the expectations of inflation and that could stablize at least one pillalr of the otherwise voliitile SSA economies
        
        Fiscal Policy
        
        Africa has the highes tax rate and number of tax paymentsin the world
        
        Despite all this burden on firms, African governments still collect relatively little revenue (remember the narrow tax base from Gardner). So businesses face enormous costs, but the government doesn't get much benefit—a lose-lose situation
        
        Debt and Debt Relief
        
        “Rising public debt in the presence of rising public revenues from natural resources is a likely sign that a boom is not being well managed. “ ⇒Ghana got massive debt relief (debt dropped from 100% to 15% of GDP by 2006), then discovered oil in 2011. Instead of managing this windfall carefully, Ghana borrowed heavily again—debt shot back up to 50% of GDP by 2013. But this time the lenders were private investors and China, not the World Bank/IMF who had forgiven the previous debt, making future debt problems harder to solve.p. 200
        
        Structural Transformation
        
        A coordinated strategy for industrial development focusing on an export push, policies and institutions to attract and transfer firm capabilities and spatial industrial policies is needed. So too are institutional innovations that promote coordinated action within the public sector and that manage the tension between close coordination with the private sector and capture. “ 269
    - - Independence didn't end British aid or access to loans. However, elected governments faced unsustainable spending pressures on education and defense that colonial fiscal systems couldn't support.inherited tax strucutres from coloonial period didnt allow governmetns to meet the wants of the population and resulted in their fall .
  - - - Even though thye managed to diversify they remain highly dependent of foreign finance which makes them volunarble to anohter debt crisis
        
        possible solutinos
        
        Relative delinking
        
        Reducing dependence on volatile global markets and Western trade/financial systems. Instead of trying to compete with Asia in manufacturing exports, focus more on domestic and regional markets. This doesn't mean complete isolation, but strategic selectivity about global engagement.
        
        Domestic resource mobilization
        
        (Sylla's work) - Building stronger capacity to raise government revenue internally through taxation and domestic financial systems, rather than relying on international borrowing, foreign aid, or export revenues. This connects directly to your research theme about colonial revenue constraints.
        
        The North cannot be trusted to support the rise of the South.
        
        Building regional complementarities
        
        trengthening intra-African trade and production networks. Instead of each country trying to export textiles to Europe separately (and failing), countries could specialize in different parts of regional value chains - one produces cotton, another weaves fabric, another makes garments, all trading primarily with each other.
- - - - Nyerere 1985
        
        rebt should be removed because the conditions were unfair from the begining and it will not allow african countries to develop
  - - - 1980s-90s—requiring currency devaluation, reduced government involvement, subsidy elimination, and trade liberalization—led to devastating effects including state collapse, environmental degradation, increased poverty, and declining services.
- - - - ECONOMIC HISTORY OF GHANA ⇒ 242 - Instead of divesifyinf with alluminium he put the coutnry in the hands of multunationals and IFIs - he was overthrown in 1966 - then tbere was a sequence of military coups - in the late 70s the economy was on the verge of collapse (244) - they went from statist economy 57-66 to a market orinented economy 66 - 81; Rawling became the favorite of the IMF becaue he was willing to cut down on governments spending and go along with SAps - in the 2000s econmy had a good growth around 5% and was getting back to where it was in the 60s after years of stagnation and attracted FDI = in 1992 there were stries so the governemtn sraised wages for nurses etc which was against the IMF; Gha a had quite a healhty market economy, lots of etreprenuers, god infrastructrue etc; export revenue remained dependent of cacou and gold, in 2005 aid amounted for 10%GDP, in2005 ghana almost becomes amiddle income country, it urbanizes and farmers are supplying food to the coutnry and are no longer dependent aon cacou etc, since 2000s Gana became democratic and is forming a somewhat of a two party system (245); Ghana seems to be back on tract, they are also building more local political participation - after Nkruhmas socialist vision the coutnry became funded by the IFIs and so was forced to cange a bit - POSITIVE EFFECTOF THE IFI? (246)
    - - ECONOMIC HISTORY OF SENEGAL ⇒ 252 - Senegal has few natural resources and his most important commoidty are peanuts; its political stability is helped to by international companies adn NGOs and economy is supported byremmitances of emigrants; it has balanced realtions with outside eighbors and has many no official institutions like the islamic brotherhood; Dakar was once the centre of French west africa but now senegal became a “Senegal ende dup as a small resource poor country and its main assets are its connections”; 253; after independence Senghor had a lot of public suppor troughout all social layers and saw rural commmunity mobilization as the new way forwards; Seghor unlinke Nkrumah didnt want to break down the domestic strcture s that brought him to power and wanted to laverage Senegals connectiont to the French; Seghor was authoritarian at times and open mindend and expert driven at other times but hten in 62 he imprisoned his coalition parthen adn 63 - 76 Senegal was a one party system; in 68 there were anti imperiaalist studernt demosntartinos agains ties with france but the goervnemnt cracke d down hard; the nlocal penat farmers organized to set peanuts prices very low and state gave in, in 1979 there were ne wdemocratic elections, then Diouf cam to powere and won elections in 83,88,93, 98 and the regime was quasidemocratic; the low penat prices , IMF imposed SAPs made the coutnry revenue low when he needed to strengten relationships with clients = Diouf was losing power , in 2000 Abdouvale Wade - a populist leader = won the electons and this signaled political change, BUT Wade turned out to be a demagogic leader doing ostentious public prjects but unable to solve Senegal’s basic problems, we won the elections again in 2006 but then tried to change the democratic rules and studrts revolted; Macky Sall became president in 202 and in his firs term he did not seem to be able to tackle poverty and other issues; Senegals fishing - main source of food supply was threatended by multinationals; its long history of sislamic brtherhood seems to protect senegal from radical islam; there is amny Sengalese in france who send oney back and build high quality houses in senegal etc - this is an important part of its economy;