Since the early 1980s the majority of countries in sub-Saharan Africa embarked on the implementation of IMF/World Bank designed 'structural adjustment programmes' (SAPs). This paper examines the... Show moreSince the early 1980s the majority of countries in sub-Saharan Africa embarked on the implementation of IMF/World Bank designed 'structural adjustment programmes' (SAPs). This paper examines the theoretical underpinnings of the SAPs. It shows that IMF policies are based on a theoretical framework that goes back to J.J. Polak's analysis of 1957 which adopted a number of assumptions far removed from economic conditions on the African continent. Focusing on the demand side of the economy, the IMF has neglected another important cause of the financial imbalances in African economies, namely the loss of import capacity and the related reduction in output resulting from external shocks. Furthermore, the IMF policy underestimates the fragmentation of markets and the inflexibilities in African economies. The World Bank policies are based on the Revised Minimum Standard Model that can be traced back to the Harrod-Domar model of the 1940s. A serious shortcoming of the model is that foreign exchange flows are assumed to be fully and automatically used in a productive manner in the recipient country. Another critical shortcoming of the model is the absence of distributional concerns. [ASC Leiden abstract] Show less
This contribution to the Africa seminar 'Beyond adjustment', organized by the Directorate General for International Cooperation of the Dutch Ministry of Foreign Affairs in Maastricht, The... Show moreThis contribution to the Africa seminar 'Beyond adjustment', organized by the Directorate General for International Cooperation of the Dutch Ministry of Foreign Affairs in Maastricht, The Netherlands, on June 30, 1990, summarizes the distinctive features of the African economic crisis, discusses the relevance of adjustment policies to remedy the crisis situation, and examines how the basic policy objective of 'food security' is affected by the IMF/World Bank structural adjustment programme. In this respect, it is important to observe that IMF/World Bank programmes do not take the purchasing power of different socioeconomic groups into account, while the food supply effect of policy instruments such as devaluation is variable. Show less
This report reviews government policies concerning consumer food prices in Kenya. In respect of official food pricing, Kenya can be said to pursue a 'cheap food' policy. It was found that most... Show moreThis report reviews government policies concerning consumer food prices in Kenya. In respect of official food pricing, Kenya can be said to pursue a 'cheap food' policy. It was found that most foods falling under price control measures showed less price increases than the average rate of inflation during recent years (1975-1984). Moreover, when compared to international prices, the data reveal that domestic maize prices (maize is Kenya's staple food) were kept well below comparable world market prices for this commodity. Official food pricing policy, however, does not reach the majority of the Kenyans who live in the rural areas. Here, consumer prices are determined by market forces, i.e. by varying local supply conditions, and there are substantial price variations, both seasonal and regional, even between adjacent rural markets. These price variations are further aggravated by the government's stringent regulations on food transports across district boundaries. It is therefore widely recommended that the (maize) food sector be liberalized by lifting movement controls and allowing private traders to participate in maize trading operations, although it remains to be seen whether this will in fact lead to less fluctuating food prices in rural Kenya. Show less
Reviews the findings of available studies and reports thought to be of relevance to policy makers. A discussion of the institutional framework, of criteria used in price-setting procedures, and of... Show moreReviews the findings of available studies and reports thought to be of relevance to policy makers. A discussion of the institutional framework, of criteria used in price-setting procedures, and of scope and objectives of the agricultural pricing policies is folowed by an examination of what these policies 'have done to agriculture'. A final section concentrates on the effects of pricing policies on the (marketed) suply of agricultural production and the importance of 'relative prices' in production decisions of Kenya farmers. Show less
This paper attempts to assess to what extent the growth of the manufacturing sector in Kenya has contributed to a process of integrated and widespread economic development. The first section... Show moreThis paper attempts to assess to what extent the growth of the manufacturing sector in Kenya has contributed to a process of integrated and widespread economic development. The first section reviews the general arguments of development theory to promote industrial development in Third World countries. The second section deals with the pros and cons of the 'import-substitution' policy, which was adopted to speed up the growth of the manufacturing sector. The last section brings together relevant research findings concerning the effects of this policy on the structure of the manufacturing sector, employment creation, income distribution and the operations of multinational firms in Kenya. The conclusion is that the type of industrialisation that has occured has not led to 'a structural transformation' of the Kenyan economy. Import-substitution has not lessened Kenya's external dependency, but has merely changed its nature Show less
Economists have long neglected changes in labour use in the different sectors. They were primarily interested in the 'most growth inducing production factors' of which capital formation was... Show moreEconomists have long neglected changes in labour use in the different sectors. They were primarily interested in the 'most growth inducing production factors' of which capital formation was thought to be the most effective. However, the record of groving urban unemployment and growing imbalances in ruralurban income and job opportunities has forced economists to reconsider their rigid adjustment models of efficient allocation of the production factors between sectors leading to, in the end, equal seetoral marginal productivities. This paper provides a description of the changes in the approach and the interpretation of labour transfers between sectors and regions (which is in fact what labour migration is about) in economic development theory. Furthermore the A. determines whether these academic studies have led to a more effective migration policy as pursued by the governments of the underdeveloped countries. Show less