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Call for Papers Volume 16: Macroeconomic Policy Formation in Africa

The Research Group on African Development Perspectives and the African Development Perspectives Yearbook (see the overview on the 16 issues).

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Lessons for Africa from the Global Financial and Economic Crisis of 2008/09:

A new study by Professor Karl Wohlmuth investigates the impacts of the global financial and economic crisis of 2008/2009 on Africa. The repercussions on Africa ’s primary commodity exports, on capital inflows, on remittances and on development aid are investigated. It is obvious that the impacts of the crisis are quite different - category by category, region by region and country by country. Also the growth impacts and the social impacts of the crisis differ. However, the poverty risk and the risk of malnutrition have increased Africa-wide, and women and children were mostly affected.

Interestingly enough, Africa has responded quickly and innovatively to the emerging crisis, with anti-cyclical fiscal policies and even with comprehensive stimulation programmes (packages). Not all countries could go this way, but countries with only moderate budget and current account imbalances could do it. Reducing macroeconomic imbalances over the medium-term has paid off for African countries. Successful in responding and managing the crisis were those countries which have integrated over the years effectively into regional economic communities, which have promoted infrastructure development and which have developed the productive sectors of their economies (agriculture and industry, but also productive services). Nonetheless, the assessment reveals that the national strategies in Africa to strengthen crisis management and crisis prevention can be further improved.

The study also looks at the lessons that can be derived for national economic policies in Africa, for regional economic communities in Africa, and for international financial organisations and actors in development assistance in their Africa policy. Important lessons for policies emerge. National governments should concentrate on a further consolidation of their macroeconomic policies, but should also focus on agricultural and agro-industrial development as well as on moves towards deeper regional integration and the establishment of minimum social safety nets. Regional African and international actors can support such policies by innovative programmes and by long-term-oriented policies. Various examples are given that show how regional and international actors effectively can adapt conventional programmes, develop new programmes and create financial facilities that are instrumental for quickly responding to the needs of the African countries being affected by financial crises and exogenous shocks.

The study by Professor Karl Wohlmuth appeared in the Journal Berichte, Volume 22, Number 194/195, January/February 2012, which is published by the International Scientific Association for World Economy and World Politics in Berlin (see Publications Karl Wohlmuth). An extended version of the study with an English Summary can be found in the IWIM Blue Series Discussion Papers for downloading (see IWIM Blue Series Discussion Papers).

Global Food Price Increases and Repercussions on Africa: Professor Karl Wohlmuth has published an article in The International Journal for Rural Development, Volume 45/Number 5/2011 to assess the repercussions of the global food price increases since 2010/2011 on Africa . The impacts are severe, but there are differences with regard of country groupings, social groups and African sub-regions. The various impacts are studied as these do not affect only the macro-economy and the poor people, but also the development options and the long-term development perspectives of Africa . Definitions and classifications are clarified so that the transmission effects and the poverty impacts of the global food price increases can be analyzed. It is considered which food items, which countries and which country groupings are affected by the price increases on the world market. Fragile and conflict countries, food insecure countries and oil exporting countries are affected most by the global price increases of food products and especially staple crops. But also the poor in net food exporting countries may suffer. African countries are exporters of food and agriculture products but wheat and rice are important import commodities. The transmission effects of global price increases to domestic prices and the impacts of price increases on the poor (looked at as consumers and producers) are considered as well. Empirical evidence that is available from the 2007/2008 global food price increases shows that in many cases there is no long-term relationship between changes in international and changes of domestic food prices in Africa , so that local, national and sub-regional structural factors are important for explaining the fact of high and increasing domestic prices in African countries. Public interventions are needed at national, regional and global levels to work out and implement feasible strategies which may help to counterbalance the impacts of global food price increases and to overcome the structural factors being responsible for the food price increases. A package of measures is then proposed for national, regional and global policies by referring to short-term, medium-term and long-term actions. An extended version of the study will appear soon in the IWIM Discussion Papers (see Publications Karl Wohlmuth).

Public Expenditures and Poverty Alleviation in Nigeria : At a workshop in Ekpoma , Nigeria Professor Dr. Alabi, a former Alexander von Humboldt Research Associate at IWIM, gave a keynote speech  on ‘Marginal Benefit Incidence (MBI) Analysis of Public Spending in Nigeria ’. Dr Reuben Alabi said that there was need for pro-poor policies in order to “accelerate the speed at which the poor benefit more from increases in access to social utilities in Nigeria ”. A purpose was to inform the Nigerian population in advance of the national elections about the mismanagement of the public funds. The report on the workshop is of interest as it shows that only a small share of public funds allocated to the states and local communities is arriving on the ground (see the Workshop Report from Professor Dr. Alabi). The research on the issues of education and health was done by Professor Dr. Alabi at his time in Bremen . He has spent 18 months as a research fellow financed by the A v Humboldt Foundation. Professor Dr. Alabi is preparing another visit to IWIM in Bremen so as to research on “Aid dependency and growth of Nigeria” (see the publications of Professor Dr. Alabi on the issues of “Marginal Benefit Incidence of Education and Health Expenditures” published in the IWIM Blue Series Discussion Papers).

Statement in the Final Session of the Conference, Africa And The Global Financial Crisis – Impact On Economic Reform Processes, African Development Perspectives Volume 15, Yearbook Conference, January 29, 2010 (http://www.iwim.uni-bremen.de/Tchokam/Wohlmuth-Statement%20GFC-Plenary%20Session-1-2010-2.pdf)

Research Group on African Development Perspectives Bremen: Adam Swallow, an associate of our Research Group who has supported over many years the Yearbook Project during his time at UNU/WIDER in Helsinki, was appointed as Commissioning Editor, Economics and Finance, Academic Division, Oxford University Press (OUP). We wish him the best for his important new task. He invites high-quality submissions. Adam Swallow has also participated at various pre-publication workshops in Bremen for Yearbook editions.

International Research Competition of the Volkswagen Foundation Sub-Sahara Africa Initiative: African post-doctoral researchers will be supported by a new programme of the Volkswagen Foundation (Information for Applicants). There are Junior Fellowships and Senior Fellowships available. Objectives of the programme are capacity building in the African academic community, high quality research on current social, economic and political problems of the continent, and the support of programmes to intensify research cooperation of African scholars with a European partner institution and African researchers/African partner institutions.

Professor Karl Wohlmuth was asked to spread information about this new programme as he is involved since 2005 in researches of the Volkswagen Foundation Sub-Sahara Africa Initiative (see the IWIM Governance Sudan research programme). The Research Group on African Development Perspectives Bremen and the Sudan Economy Research Group (SERG) network at the University of Bremen will support applicants in the domain of their research interests by linking them to partners and mentors (Contact: Professor Dr. Karl Wohlmuth, Email: wohlmuth@uni-bremen.de)

About the Work of the Research Group

The aggravating social, political, and economic crisis of the African continent forces institutions, organisations, scientists, working groups, and all others involved in African development affairs to intensify analytical and conceptional work on alternative development approaches for Africa. There is a growing number of plans and programmes, conceptions, researches, and ideas being published world-wide focusing on the peculiarity of the African crisis, the chances for structural adjustment, and the question of planning beyond adjustment. The discussion referring to Africa’s development perspectives is widening. However, it is difficult to get an overall view of the different approaches and proposals and, subsequently, to make the discussion useful for the planning and co-ordinating of development policies. So there is a need for a comprehensive publication that compiles, evaluates, and analyses the scattered and often not easily available sources.

To fill this gap, the Research Group on African Development Perspectives at the University of Bremen is presenting the African Development Perspectives Yearbook, being published since 1989 (overview of all published yearbooks you find here). Research activities of group members comprise country studies (Kenya, Liberia, Nigeria, Sudan, Eritrea, Sierra Leone, Zambia, Zimbabwe, South Africa, Namibia, Botswana, Swaziland), aspects of labour market policies and informal sector activities, food security policy, environmental policy, promotion of small-scale industries, intra-regional trade and regional integration as well as assessments of structural adjustment policies.

The African Development Perspectives Yearbook is the first English-language periodical published in Germany concerning development problems in Africa. African, North American, and European experts from universities, international organisations, and non-governmental organisations report on problems and possible solutions, new political attempts, economic programmes, and visions for African development paths.

Africa’s future will depend both, on its economic and political connections with the international community at the Pan-African, national, and sectoral levels, and on local projects and development efforts at the micro level. The African Development Perspectives Yearbook accounts for all these dimensions. Global analyses, country studies, and project evaluations appear in the Yearbook, as well as declarations of international conferences, important documents of African organisations and states, and programmes of interest and self-help groups.

Beside the analytical and documentary character of the Yearbook, the editors establish an extensive network of news and information about development organisations and research institutions working in and for Africa. The members of the Research Group are interested to broaden contacts with partners having similar objectives.

The Yearbook is addressed to decision-makers and experts in projects, media, research and development aid institutions, and to all others interested in Africa’s development. It offers comprehensive analysis and information about recent developments bearing importance with regard to development perspectives for the African continent.

Thus, the Yearbook reports on

• conceptions outlining long-term emancipatory development strategies for Africa;
• strategies emphasising the problem of a longer-run planning process beyond structural adjustment policies;
• successful projects and programmes concerning countries, regions, institutions, or sectors of African economies as well as the conditions of their success;
• resourceful and creative activities of socio-economic interest groups, local development initiatives and NGOs, which could serve as models for other regions;
• strategies and prospects of regional integration in Africa, and
• economic, social, and political trends in Africa’s subregions.

The Yearbook takes into account sources from all levels of planning, discussion, and research, i.e. international, regional, and national organisations and institutions, committees, working groups, and NGOs, with particular emphasis given to those approaches originating from Africa.