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The political economy of financial reform in Africa
Author(s) -
Mkandawire Thandika
Publication year - 1999
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/(sici)1099-1328(199905/06)11:3<321::aid-jid594>3.0.co;2-v
Subject(s) - debt , subordination (linguistics) , economics , liberalization , politics , capital (architecture) , finance , capital market , investment (military) , economic policy , financial capital , financial system , market economy , development economics , political science , human capital , linguistics , philosophy , archaeology , law , history
The paper argues that, if for many years financial policy was aimed at addressing issues central to development and nation‐building, in more recent years it has become tethered to the objectives of stabilization and debt repayment. Following a review of the African experience with financial liberalization, the paper calls for the subordination of financial policy to the needs of long‐term economic growth through provision for more long‐term capital for productive investment through capital market developments and establishment of specialized development financial institutions. The paper also argues that financial liberalization has had little political anchoring in African countries and has severely constrained the policy choices for emerging democracies. Copyright © 1999 John Wiley & Sons, Ltd.