The World Bank's fundamental misconception in Africa

Journal of Modern African Studies

Volumn 34, Issue 2, 1996, Pages 239-247

  Schatz, Sayre P ^a,b  

^a Columbia University ^*  (United States)

^b TEMPLE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0000241402     PISSN: 0022278X     EISSN: None     Source Type: Journal    
DOI: 10.1017/s0022278x00055312     Document Type: Article

References (28)

1. Peter Evans, 'The State as Problem and Solution: predation, embedded autonomy, and structural change', in Stephan Haggard and R. R. Kaufman (eds.), The Politics of Economic Adjustment (Princeton, NJ, 1992), p. 176.
2. World Bank, Accelerated Development in Sub-Saharan Africa: an agenda for action (Washington, DC, 1981), often referred to as the Berg report.
3. Thandika Mkandawire, 'Adjustment, Political Conditionality and Democratisation in Africa', in Giovanni Andrea Cornia and Gerald K. Helleiner (eds.), From Adjustment to Development in Africa: conflict, controversy, convergence, consensus (London, 1994), p. 166, dismisses the World Bank approach as one in which 'the state is seen as essentially a rent-allocating agent', and speaks of 'the empirical vacuity of [such] assertions about how policy is actually made in Africa'.
4. Paul Streeten, 'Markets and States: against minimalism', in World Development (Oxford), 21, 8, August 1993, p. 1289,
5. quoting John P. Lewis, 'Government and National Economic Development', in Francis X. Sutton (ed.), A World to Make : development in practice (New Brunswick, NJ, 1990).
6. Some recent articles incorporating this approach include: Naomi Chazan and Donald Kothchild, 'The Political Repercussions of Economic Malaise', in Thomas M. Callaghy and John Ravenhill (eds.), Hemmed In: responses to Africa's economic decline (New York, 1993), pp. 180-214; Robert H. Bates, 'The Impulse to Reform in Africa', in Jennifer A. Widner (ed.), Economic Change and Political Liberalization in Sub-Saharan Africa (Baltimore and London, 1994), pp. 13-28; Barbara Grosh, 'Through the Structural Adjustment Minefield: politics in an era of economic liberalization', in ibid. pp. 29-46; and Crawford Young, 'Democratization in Africa: the contradictions of a political imperative', in ibid. pp. 230-50. See also, Deepak Lal, The Poverty of 'Development Economies' (Cambridge, MA, 1985).
7. Some recent articles incorporating this approach include: Naomi Chazan and Donald Kothchild, 'The Political Repercussions of Economic Malaise', in Thomas M. Callaghy and John Ravenhill (eds.), Hemmed In: responses to Africa's economic decline (New York, 1993), pp. 180-214; Robert H. Bates, 'The Impulse to Reform in Africa', in Jennifer A. Widner (ed.), Economic Change and Political Liberalization in Sub-Saharan Africa (Baltimore and London, 1994), pp. 13-28; Barbara Grosh, 'Through the Structural Adjustment Minefield: politics in an era of economic liberalization', in ibid. pp. 29-46; and Crawford Young, 'Democratization in Africa: the contradictions of a political imperative', in ibid. pp. 230-50. See also, Deepak Lal, The Poverty of 'Development Economies' (Cambridge, MA, 1985).
8. Some recent articles incorporating this approach include: Naomi Chazan and Donald Kothchild, 'The Political Repercussions of Economic Malaise', in Thomas M. Callaghy and John Ravenhill (eds.), Hemmed In: responses to Africa's economic decline (New York, 1993), pp. 180-214; Robert H. Bates, 'The Impulse to Reform in Africa', in Jennifer A. Widner (ed.), Economic Change and Political Liberalization in Sub-Saharan Africa (Baltimore and London, 1994), pp. 13-28; Barbara Grosh, 'Through the Structural Adjustment Minefield: politics in an era of economic liberalization', in ibid. pp. 29-46; and Crawford Young, 'Democratization in Africa: the contradictions of a political imperative', in ibid. pp. 230-50. See also, Deepak Lal, The Poverty of 'Development Economies' (Cambridge, MA, 1985).
9. Some recent articles incorporating this approach include: Naomi Chazan and Donald Kothchild, 'The Political Repercussions of Economic Malaise', in Thomas M. Callaghy and John Ravenhill (eds.), Hemmed In: responses to Africa's economic decline (New York, 1993), pp. 180-214; Robert H. Bates, 'The Impulse to Reform in Africa', in Jennifer A. Widner (ed.), Economic Change and Political Liberalization in Sub-Saharan Africa (Baltimore and London, 1994), pp. 13-28; Barbara Grosh, 'Through the Structural Adjustment Minefield: politics in an era of economic liberalization', in ibid. pp. 29-46; and Crawford Young, 'Democratization in Africa: the contradictions of a political imperative', in ibid. pp. 230-50. See also, Deepak Lal, The Poverty of 'Development Economies' (Cambridge, MA, 1985).
10. Some recent articles incorporating this approach include: Naomi Chazan and Donald Kothchild, 'The Political Repercussions of Economic Malaise', in Thomas M. Callaghy and John Ravenhill (eds.), Hemmed In: responses to Africa's economic decline (New York, 1993), pp. 180-214; Robert H. Bates, 'The Impulse to Reform in Africa', in Jennifer A. Widner (ed.), Economic Change and Political Liberalization in Sub-Saharan Africa (Baltimore and London, 1994), pp. 13-28; Barbara Grosh, 'Through the Structural Adjustment Minefield: politics in an era of economic liberalization', in ibid. pp. 29-46; and Crawford Young, 'Democratization in Africa: the contradictions of a political imperative', in ibid. pp. 230-50. See also, Deepak Lal, The Poverty of 'Development Economies' (Cambridge, MA, 1985).
11. See Sayre P. Schatz, 'Pirate Capitalism and the Inert Economy of Nigeria', in The Journal of Modern African Studies (Cambridge), 22, 1, March 1984, pp. 45-57.
12. Richard Grabowski, 'The Successful Development State: where does it come from?', in World Development, 22, 3, 1994, pp. 413-22, also sets forth an economics-as-cause thesis for most less developed economies, although his arguments differ from those presented above.
13. T. W. Oshikoya, 'Macroeconomic Adjustment, Uncertainty and Domestic Private Investment in Selected African Countries', in Cornia and Helleiner (eds.), op. cit. pp. 137-51.
14. Sayre P. Schatz, 'Capital Shortage Illusion', in Oxford Economic Papers, 17, July 1965, and Nigerian Capitalism (Berkeley, 1977), ch. 4.
15. Sayre P. Schatz, 'Capital Shortage Illusion', in Oxford Economic Papers, 17, July 1965, and Nigerian Capitalism (Berkeley, 1977), ch. 4.
16. World Bank, Sub-Saharan Africa. From Crisis to Sustainable Growth: a long-term perspective study (Washington, DC, 1989), p. 221.
17. See Sayre P. Schatz, 'African Capitalism and African Economic Performance', in Harvey Glickman (ed.), The Crisis and Challenge of African Development (New York, 1988), p. 62.
18. Gerald Helleiner, 'External Resource Flows, Debt Relief and Economic Development in Sub-Saharan Africa', in Cornia and Helleiner (eds.), op. cit. p. 332. For corroboration on the dominant importance of the economic environment, see World Bank, Sub-Saharan Africa, pp. 25-30; Gerald M. Meier and William F. Steel (eds. ), Industrial Adjustment in Sub-Saharan Africa (Oxford, 1989), pp. 5-9; and Roger Riddell, 'The Future of the Manufacturing Sector in Sub-Saharan Africa', in Callaghy and Ravenhill (eds.), op. cit. p. 243.
19. Gerald Helleiner, 'External Resource Flows, Debt Relief and Economic Development in Sub-Saharan Africa', in Cornia and Helleiner (eds.), op. cit. p. 332. For corroboration on the dominant importance of the economic environment, see World Bank, Sub-Saharan Africa, pp. 25-30; Gerald M. Meier and William F. Steel (eds. ), Industrial Adjustment in Sub-Saharan Africa (Oxford, 1989), pp. 5-9; and Roger Riddell, 'The Future of the Manufacturing Sector in Sub-Saharan Africa', in Callaghy and Ravenhill (eds.), op. cit. p. 243.
20. Gerald Helleiner, 'External Resource Flows, Debt Relief and Economic Development in Sub-Saharan Africa', in Cornia and Helleiner (eds.), op. cit. p. 332. For corroboration on the dominant importance of the economic environment, see World Bank, Sub-Saharan Africa, pp. 25-30; Gerald M. Meier and William F. Steel (eds. ), Industrial Adjustment in Sub-Saharan Africa (Oxford, 1989), pp. 5-9; and Roger Riddell, 'The Future of the Manufacturing Sector in Sub-Saharan Africa', in Callaghy and Ravenhill (eds.), op. cit. p. 243.
21. Gerald Helleiner, 'External Resource Flows, Debt Relief and Economic Development in Sub-Saharan Africa', in Cornia and Helleiner (eds.), op. cit. p. 332. For corroboration on the dominant importance of the economic environment, see World Bank, Sub-Saharan Africa, pp. 25-30; Gerald M. Meier and William F. Steel (eds. ), Industrial Adjustment in Sub-Saharan Africa (Oxford, 1989), pp. 5-9; and Roger Riddell, 'The Future of the Manufacturing Sector in Sub-Saharan Africa', in Callaghy and Ravenhill (eds.), op. cit. p. 243.
22. Deep down', reliance upon the free market for generating economic development 'is almost as much a political judgement as an economic one', according to Dwight Perkins and Michael Roemer (eds.), Reforming Economic Systems in Developing Countries (Cambridge, MA, 1991), Harvard Institute for International Affairs, p. 4. Roemer and Steven C. Radelet, 'Macroeconomic Reforms in Developing Countries', in ibid. p. 65, find that the case for market reliance in international trade 'depends heavily on a few country examples and models which are suggestive rather than totally convincing'.
23. Deep down', reliance upon the free market for generating economic development 'is almost as much a political judgement as an economic one', according to Dwight Perkins and Michael Roemer (eds.), Reforming Economic Systems in Developing Countries (Cambridge, MA, 1991), Harvard Institute for International Affairs, p. 4. Roemer and Steven C. Radelet, 'Macroeconomic Reforms in Developing Countries', in ibid. p. 65, find that the case for market reliance in international trade 'depends heavily on a few country examples and models which are suggestive rather than totally convincing'.
24. An almost universal example is public education, a service which could be sold privately only to those willing and able to pay profitable prices for it. Governments, however, acting on the belief that such restriction of education would injure societal interests, operate money-losing state-owned educational enterprises.
25. In Paul Streeten's 'commonsense theory' of the state, loc. cit. p. 1290, governments are 'not impervious to pressures for rational and altruistic polices'. Roger Riddell favours 'benign intervention' over 'harsh withdrawal', and discusses in loc. cit. pp. 232-43, a range of interventionist policies for promoting manufacturing in Africa.
26. For example, Nguyuru H. I. Lipumba, Africa Beyond Adjustment (Washington, DC, 1994), P. 4, sees a developmental state as a 'linchpin' for promoting long-run economic growth. Mkandawire, loc. cit. pp. 166-9, believes that African states can and do work for the general welfare.
27. For example, Nguyuru H. I. Lipumba, Africa Beyond Adjustment (Washington, DC, 1994), P. 4, sees a developmental state as a 'linchpin' for promoting long-run economic growth. Mkandawire, loc. cit. pp. 166-9, believes that African states can and do work for the general welfare.
28. Richard L. Sklar, 'Development Democracy', in Comparative Studies in Society and History (Cambridge), 29, 4, October 1987, p. 709.