Prudent versus Imprudent Lending to Africa

Reisen, Helmut; Ndoye, Sokhna

doi:10.1787/242613675043

Cited by 18 publications

(1 citation statement)

References 17 publications

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“…Should this be a concern to the donors who recently paid off $75 billion of debt? According to Reisen and Ndoye (2008) the optimal debt-to-export ratio is no more than 150 percent. However, the average debt-to-export ratio for African countries in the 1980s and 1990s reached a peak of more than 700 percent.…”

Section: Africa Risingmentioning

confidence: 99%

The Next Step in African Development: Aid, Investment, or Another Round of Debt?

Nicholson¹,

Lane²

2013

IJEF

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Amidst intense debt relief, and alongside dramatically improved governance, investment and growth increased substantially across Africa during the past decade. This paper interprets the timing of the Heavily Indebted Poor Countries (HIPC) Initiative, launched by the IMF and World Bank in the late 1990s, as a natural experiment to see whether these positive trends were specific to Africa, or specific to HIPC countries, as well as whether debt relief itself manifests deeper structural shifts in economic governance. As many HIPC countries are presently raising their external public debt levels, we question whether these loans would be a “good kind of debt” that leads to investment and development or the beginning of a new debt cycle potentially leading to another round of debt relief programs. Data on external debt and capital development for 46 countries of sub-Saharan Africa and six other HIPC countries outside of Africa is used to evaluate structural breaks and parameter stability in a longitudinal panel analysis. Incorporating an identification strategy that isolates the debt relief initiatives from endogenous improvements to economic governance, we find that they had a statistically significant impact on foreign investment flows to Africa. The data suggests that even alongside new escalating debt levels, investment will likely be the next step in African development

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Section: Africa Risingmentioning

confidence: 99%

The Next Step in African Development: Aid, Investment, or Another Round of Debt?

Nicholson¹,

Lane²

2013

IJEF

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‘Donors go home’: non-traditional state actors and the creation of development space in Zambia

Kragelund

2014

Third World Quarterly

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Public and Elite Views on Europe vs. China in Africa

Fioramonti

Kimunguyi

2011

The International Spectator

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Europe has been the privileged economic and political partner of Africa, but more recently China has increased its foothold in Africa through important financial investments and trade agreements. Against this backdrop, our empirical research conducted in [2007][2008] in Kenya and South Africa as part of a pioneering international project investigates the perceptions of public opinion, political leaders, civil society activists and media operators. While confirming their continent's traditional proximity to Europe, African citizens are increasingly interested in China and its impact on Africa's development. While African civil society leaders and media operators describe China as an opportunity for Africa to break free from its historical dependence on European markets, other opinion leaders warn against too much enthusiasm with the Asian giant. On the one hand, Europe is increasingly criticized for not having been able to dismiss the traditionally 'patronizing' attitude towards Africa. On the other hand, China is expected to bring a breath of fresh air into the African context, although there is still suspicion that the Chinese strategy might, in the long run, turn into a new form of economic patronage.

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Prudent versus Imprudent Lending to Africa

Cited by 18 publications

References 17 publications

The Next Step in African Development: Aid, Investment, or Another Round of Debt?

The Next Step in African Development: Aid, Investment, or Another Round of Debt?

‘Donors go home’: non-traditional state actors and the creation of development space in Zambia

Public and Elite Views on Europe vs. China in Africa

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