Economic reform programmes in Africa and the debt problem

Abstract

From the creditor countries' perspective, Africa's debt problem should be dealt with on a case-by-case basis and subject to the implementation of strong economic adjustment programmes. The creditor countries have on their part over the years put forward a number of debt initiatives: the Baker Plan (1986), the Toronto Agreement (1988), the Brady Plan (1989), the Dakar Plan (1989), and the Trinidad and Tobago Plan (1990). Some of which have benefitted Africa while others have simply made matters worse for the African economies. This paper attempts a brief review of the changes which Africa's external debt profile has undergone during the past decade, paying particular attention to the factors contributing to its deterioration. Additionally, the interaction between economic reforms in Africa and the debt crisis is also analysed.