An Agenda for
the 21st Century
Alassane D. Ouattara
Africa is at a crossroads. Will it continue to open up its political
systems to broader participation and reform its economies to integrate them more fully
into the global economy, or will it revert to political and economic practices that have
delayed its integration into the economic mainstream?
Growth in Sub-Saharan Africa: The Unfinished Agenda
Evangelos A. Calamitsis
After a prolonged crisis, sub-Saharan African countries have been
broadening their reform efforts and enjoying improved economic growth rates. The gains
they have made are fragile, however, and to achieve sustained progress they need to
strengthen their current reform programs and resolve the serious conflicts threatening the
Africa: Economic Policy and Outlook for Growth
In recent years, improved policies in many sub-Saharan African countries
have led to better economic performance. As policymakers in the region work to sustain
high growth rates and reduce poverty, how can they most effectively meet the challenge of
globalization and create a favorable environment for domestic and foreign private
Impact of the
Asian Crisis on Sub-Saharan Africa
Most sub-Saharan African countries have been largely unaffected by the
Asian crisis. What accounts for this relatively favorable outcome, and what steps should
these countries consider taking to reduce poverty and increase economic growth in a more
uncertain global environment?
Policy of the Eurosystem
On January 1, 1999, Europe entered a new era with the adoption of a single
currencythe euroby 11 of the European Union's 15 member states. In this
article, a member of the European Central Bank's Executive Board describes the framework
for conducting monetary policy in the euro area.
Banking sector issues
Insurance Can and Cannot Do
Ricki Tigert Helfer
A deposit insurance system can contribute to financial stability, but only
if it is adequately funded and if other safeguardssuch as a strong bank supervision
programare also in place.
Implications of Global Financial Flows
Globalization presents fresh challenges to the world economy, and its
implications have yet to be fully assimilated at the national level. At the same time, the
lack of a lender of last resort creates a vacuum in the international institutional
of Recent Turbulence in Mature Markets
The recent turbulence in mature financial markets appeared out of
proportion to the events that triggered it. This experience suggests that both private and
public financial institutions should display a much greater awareness of potential
financial vulnerabilities and disruptions.
Direct Investment in Developing Countries
Padma Mallampally and Karl P. Sauvant
Foreign direct investment has grown at a phenomenal rate since the early
1980s, and the world market for it has become more competitive. Developing countries are
becoming increasingly attractive investment destinations, in part because they can offer
investors a range of "created" assets.
Policy Perspective on Capital Controls
Capital is tradable in the same way many goods and services are: it can be
imported or exported at prices that reflect international demand and supply. Much trade
analysis is thus valid for capital movements, and experience with trade restrictions
provides insights into how different capital controls might work.
Restructuring and Governance in East Asia
Magdi Iskander, Gerald Meyerman, Dale F. Gray, and Sean Hagan
Corporate restructuring and improved corporate governance are essential
parts of economic reform programs under way in many countries. How can corporations be
restructured to promote growth and reduce excessive debt without placing undue burdens on
taxpayers? What framework is needed to promote better corporate governance?
Government Liabilities: A Hidden Fiscal Risk
Many governments have faced serious fiscal instability as a result of
their contingent liabilitiesthat is, fiscal obligations contingent on the occurrence
of particular events. But these obligations are not budgeted and accounted for, nor are
they considered in conventional fiscal analysis.
Infrastructure, Public Risk
Whether developing countries reap the full benefits of privatizing
infrastructure will depend on how risks are allocated. If governments assume risks that
should be borne by investors, they may reduce incentives for efficiency and incur
significant liabilities. But steps can be taken to decrease risk and improve the
measurement and budgeting of guarantees.