Impact of political and economic changes in the east especially in former USSR countries, on the external financing trends of African countries

Abstract

Abstract This document is a summary of a paper prepared by a consultant. The opinions expressed are those of the author and do not necessarily reflect those of the United Nations Economic Commission for Africa. The main objective of this study therefore is to analyze the consequences of the changes occurring in the international development finance of African countries, which correlate with the collapse of Eastern Europe. Analysis of this main objective allows consideration of the following secondary objectives: (a) Has adoption of the virtues of the market economy by the former socialist countries reduced or increased the external finance available to the African countries which were closely linked to them? Or, has reduction of external assistance caused by changes in the former communist countries of Europe been compensated by resources from other donor countries? (b) Have elements constituting Africa's external finance been affected by the homogenous nature of occurrences in Eastern Europe? If this is so, then what could explain such behaviour? (c) Following these events in Eastern Europe, has international financial assistance been equal or unequal in its distribution among African countries?