 Foreign Resource Flows and Financing of Development in Sub-Saharan AfricaBenno J. Ndulu Chapter 6 in The International Monetary and Financial System, 1996, pp 135-156 from Palgrave Macmillan Abstract: Abstract This paper reviews the role of external financing in development in sub-Saharan Africa, paying particular attention to the structural constraints which economies in the region face. The central role of external finance is identified as relieving the foreign exchange constraints to production and investment. The review of the trends shows that net foreign resource transfers into Africa have declined steeply in the last 12 years relative to GDP. A rapid rise in the debt servicing burden from the very large debt overhang is the key explanation. Losses from the deterioration of the external terms of trade further compounded the problem. The paper recommends action in four areas: the write-down of the debt stock to provide relief to the future servicing burden; diversification from debt instruments to foreign direct investment; enhancing effectiveness in the utilization and disbursement of official development assistance; and the provision of timely official credit to help ride out temporary shocks. Keywords: Foreign Direct Investment; External Resource; External Debt; Debt Service; External Finance (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-24414-0_6 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-24414-0_6 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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