Financial Crisis

The developed economies can help Africa recover by:

• Pursuing strategies that boost demand for African exports. Indeed, recovery in the developed and emerging markets will help Africa out of the crisis by increasing African exports and capital inflows.
• Discouraging protectionist practices in trade and finance. Protectionism would have the lamentable effect of curtailing trade and capital flows.
• Supporting increased provision of concessional financing and grants to African countries through bilateral and multilateral mechanisms.
• Providing adequate funding for African low income countries as well as supporting funding for programs aimed at enhancing response to vulnerability.
• Honoring pledged funding for Africa.

But much of the effort must come from the continent. Thus, African countries need to:

• Strike a balance between crisis response and alleviation of structural constraints to long term growth;
• Rebalance between external and domestic sources of growth;
• Give priority to infrastructure, trade logistics and regional integration;
• Accelerate institutional reforms;and
• Strike a balance between the role of the state and the role market mechanisms; they must not quit markets nor disengage from the global economy.