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Africa Economic Brief – Volume 9 issue 03 - Graduating to Rules based Macroeconomic Institutions
The future of Africa’s development, most notably achieving the Sustainable Development Goals (SDGs) of the United Nations and the High Five of the African Development Bank, would pretty much hinge on harnessing the resource rents for financing the continent’s structural transformation and development. Though Africa has made some progress, largely driven by the resource boom during the better part of the first decade of this century, like many developing regions, its growth has started to face headwinds since the global recession of 2008.
The advanced economies were even more severely affected, as they were claimed to have transited into a “new normal” of long-term lower expected output and employment growth, as firms and consumers needed to deleverage extensively. Though some commentators are sceptical about the new normal interpretation of the post2008 slowdown in the global economy, most scholars argue that the advanced economies of Europe, Japan and North America might have entered a relatively long phase of “secular stagnation” (e.g., Summers, 2017).