The current financial crisis has highlighted the critical role of efficient regulation for financial stability. Government interventions to bail out banks and non-bank institutions have sought to restore bank liquidity and allow adequate level of bank lending. These measures are symptomatic. They...

There is a growing concern that the spill over from the financial crisis in developed markets and the resulting economic slowdown will threaten Africa’s potential “Growth Take-off”. A key challenge for the international community is to design and implement an appropriate regulatory framework which...

A dedicated G20 macroeconomic work stream has been established to conduct thorough analysis of the roots of the crisis and lessons to be learnt to lay down sound foundations for economic recovery and avoid crises of this scale in the future. Its scope is also to identify policy responses required...

Fragile states typically have weak governance institutions, undermining their capacity to provide basic services. Many fragile states have been embroiled in years of violent conflicts, or face the threat of such conflicts. Others are emerging from such conflicts(1). Net food and fuel importers like...

Trade has been a key driver of Africa’s growth surge in the last ten years. The sustainability of this trade-led growth is now threatened at a time when progress in the Doha Development Round has stalled and fears of incresaed trade protection are growing. Africa’s share of global trade is still...

Improved policies, institutions and political leadership in Africa over the past decades have played a critical role in helping the continent achieve stronger macroeconomic fundamentals. The reform dividends have resulted in better economic performance as reflected in higher economic growth, fiscal...

Africa’s access to international capital has been substantially reduced as a result of the financial crisis. Foreign lines of credit have virtually closed. Local African banks that have relied on credit lines from the international capital markets have had to scale back operations or have turned to...

The current economic and financial crisis affects all the drivers of African growth: prices and demand for primary commodities, capital flows and foreign direct investment and regional integration, especially in low-income countries and fragile states. Many countries face the risk of twin deficits...