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Begin New Search Topic Financial Crisis Political Geography Africa Content Type Policy Brief Publication Year within 25 Years

1. Economic Distress and the Inevitability of an Economic Recovery Programme

Author:
Zambia Institute for Policy Analysis & Research (ZIPAR)
Publication Date:
03-2017
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Zambia is emerging from a major economic downturn. The copper price collapse, electricity shortages, huge fall in the value of the Kwacha and high inflation in 2015 left the economy stalling. Growth in 2015 was 2.9% and possibly 3.4% in 2016, significantly below the long-term average rate of 6.9%. The downturn was compounded by a tightening of monetary policy which made it harder for businesses to borrow, and by a continuation of expansionary fiscal policies which increased the budget deficit and Government debt. Because the scale of the challenge was so significant, the Government announced it would launch Zambia Plus, a home-grown recovery programme to put the economy back on track. A credible recovery programme will be essential to instill fiscal discipline, create conditions for growth, and support poverty reduction. A failure to the programme will result in significant adverse consequences for the economy and Zambian households. Without Zambia Plus, the budget deficit (measured as a percentage of GDP) is likely to continue performing worse than the authorities’ targets. Thus, the overall debt level will keep growing, possibly reaching an average of 58.6% of GDP over 2017-2021, up from an average of 23.3% over 2007-2014. More debt will mean a bigger budget taken to meet debt servicing obligations. For instance, in 2017 alone the Government allocated almost ¼ of the budget to debt servicing and arrears payments. This is the equivalent of over K15 billion that could otherwise be spent on tackling poverty or supporting growth. The current path is unsustainable, and the consequences of failing to act are likely to be felt hardest by the poor, who already bear the brunt. Analysis of the 2015 Budget reveals that when the economic downturn set in the most significant underspends were on social cash transfers, the economic empowerment fund and the public service pension fund. So, the absence of Zambia Plus will do bigger and longer lasting damage to the lives of poor Zambians than will the few challenges of the programme.
Topic:
Financial Crisis, Economy, and Public Debt
Political Geography:
Africa and Zambia

2. The ABCs of the General Capital Increase (ABCs of IFIs Brief)

Author:
Todd Moss, Sarah Jane Staats, and Julia Barmeier
Publication Date:
09-2011
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The international financial institutions dramatically increased their lending in 2008–09 to help developing countries cope with the global financial crisis and support economic recovery. Today, these organizations are seeking billions of dollars in new funding. The IMF, which only a few years ago was losing clients and shedding staff, expanded by $750 billion in 2009. The World Bank and the four regional development banks for Africa, Asia, Europe, and Latin America have asked to increase their capital base by 30 to 200 percent. A general capital increase (GCI) for these development banks is an unusual request. A simultaneous GCI request is a oncein- a-generation occurrence.
Topic:
Development, Foreign Aid, and Financial Crisis
Political Geography:
Africa, Asia, Latin America, and Ethiopia

3. Return to War in Sudan's Nuba Mountains

Author:
Julie Flint
Publication Date:
11-2011
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
The response to the renewed war in Sudan's Nuba Mountains has been driven largely by a human rights and humanitarian crisis. The crisis will continue indefinitely without a political agreement that acknowledges the Nuba rebellion is self-sustaining and reflects a wider malaise within the new Republic of Sudan. With Sudan facing financial collapse, economic normalization must be part of negotiations with Khartoum to end the war in the Nuba Mountains and promote democratization throughout Sudan.
Topic:
Conflict Resolution, Democratization, Development, Human Rights, War, Insurgency, and Financial Crisis
Political Geography:
Africa and Sudan

4. The Global Financial Crisis and Africa's "Immiserizing Wealth"

Author:
Luc Soete and Alexis Habiyaremye
Publication Date:
01-2010
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Before the current global recession, many resource-rich African countries were recording unprecedented levels of growth due to a raw material price boom. However, the collapse in raw material prices and the ensuing severe economic difficulties have again exposed the vulnerability of these countries' natural resource export-focussed economic structures. In this research brief, we describe how Africa's abundance of natural resources attracted disruptive and predatory foreign forces that have hindered innovation-based growth and economic diversification by delaying the accumulation of sufficient stocks of human capital. We suggest that for their long-term prosperity, resource-rich African countries shift their strategic emphasis from natural to human resources and technological capabilities needed to transform those natural resources into valuable goods and services to compete in the global market.
Topic:
Economics, Emerging Markets, Industrial Policy, Global Recession, Natural Resources, and Financial Crisis
Political Geography:
Africa, China, and India

5. Billions More for International Institutions? The ABCs of the General Capital Increases (GCI)

Author:
Todd Moss, Sarah Jane Staats, and Julia Barmeier
Publication Date:
06-2010
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The international financial institutions dramatically increased their lending in 2008–09 to help developing countries cope with the global financial crisis and support economic recovery. Today, these organizations are seeking billions of dollars in new funding. The IMF, which only a few years ago was losing clients and shedding staff, expanded by $750 billion last year. The World Bank and the four regional development banks for Africa, Asia, Europe, and Latin America are asking to increase their capital base by 30 to 200 percent. A general capital increase (GCI) for these development banks is an unusual request. A simultaneous GCI request is a once-in-a-generation occurrence.
Topic:
International Relations, International Monetary Fund, Financial Crisis, and World Bank
Political Geography:
Africa, Europe, Asia, and Latin America

6. Policy Responses to the Global Economic Crisis in Africa

Author:
Wim Naudé and Augustin Kwasi Fosu
Publication Date:
08-2009
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
THE GLOBAL ECONOMIC CRISIS OF 2008 HAS INDUCED two negative external shocks in African countries. The first is a financial shock with the availability of credit declining and the cost of international credit increasing (a financial crisis); and the second is a shock relating to the demand for and price of exports, as most of Africa's important markets went into recession and commodity prices tumbled (an economic crisis).
Topic:
Globalization, Poverty, and Financial Crisis
Political Geography:
Africa