Structural adjustment in Africa: Engaging with the World Bank in the 1990s

Abstract

According to conventional wisdom, Western "aid fatigue" is evident in Africa. Desperately needed resources traditionally supplied by numerous bilateral and multilateral development institutions and Non-Government Organizations [NGOs] is currently being diverted to Eastern Europe, the independent republics of the former Soviet Union and the Gulf region. Additionally, billions of dollars in foreign aid are perceived to have been wasted on the continent. Africa, whose precarious condition has long been debated, will be further marginalised as the "new world order" forgets about the continent...This paper will explore the dynamics of, and critique, structural adjustment in Africa. In contrast to the oversimplified indictments of the World Bank offered by many critics, to be discussed below, it is the author's contention that the World Bank has in fact offered valuable insight into the development constraints experienced within the African context. It is also recognised that the World Bank will continue to play a prominent role in the future development of the continent. One can not simply wish the institution away. Africa's way forward will therefore be to engage with this institution in a constructive manner so that the Bank's significant financial resources may be utilised for the structural transformation of the continent. As will be demonstrated below, this requires a re-examination of the dynamics of structural adjustment programming, a closer examination of programmes and experiences in specific countries, and a critique of the World Bank's present approach to development. The paper comprises three sections. First, a brief overview of the evolution of IMF and World Bank programme-based lending is offered. This is followed by an examination of the nature and goals of structural adjustment and stabilisation programmes. The purpose of this section will be to underline the important differences between these multilateral institutions. An understanding of the different approaches which drive World Bank and IMF interventions is critical in order to effectively critique the structural adjustment process. The final section will illustrate how developing countries can further engage with the World Bank. By using significant precedents from other country programmes, recipient governments may gain important leverage against, and more effectively utilise, World Bank resources and programmes to facilitate the structural transformation of the continent. It is hoped that such an approach will enhance recipient governments' bargaining position, vis-a-vis the World Bank, in the future design of programmes implemented in their country.