by Summary:
In order to protect people from this type of imported inflation, African governments borrow foreign currencies in order to artificially keep African currencies “strong” relative to the US dollar and the euro. This artificial “band-aid” solution forces African economies into a frantic mode of economic activity focused exclusively on earning dollars or euros to service this external debt. As a result, Africa’s economies have been trapped into an austerity model, often enforced via conditions set by the International Monetary Fund (IMF), as well as the constant pressure from other creditors to protect their political and economic interests, which further encroaches on the economic, monetary, and political sovereignty of African countries. Conditions imposed by the IMF and international
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In order to protect people from this type of imported inflation, African governments borrow foreign currencies in order to artificially keep African currencies “strong” relative to the US dollar and the euro. This artificial “band-aid” solution forces African economies into a frantic mode of economic activity focused exclusively on earning dollars or euros to service this external debt. As a result, Africa’s economies have been trapped into an austerity model, often enforced via conditions set by the International Monetary Fund (IMF), as well as the constant pressure from other creditors to protect their political and economic interests, which further encroaches on the economic, monetary, and political sovereignty of African countries. Conditions imposed by the IMF and international
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In order to protect people from this type of imported inflation, African governments borrow foreign currencies in order to artificially keep African currencies “strong” relative to the US dollar and the euro. This artificial “band-aid” solution forces African economies into a frantic mode of economic activity focused exclusively on earning dollars or euros to service this external debt. As a result, Africa’s economies have been trapped into an austerity model, often enforced via conditions set by the International Monetary Fund (IMF), as well as the constant pressure from other creditors to protect their political and economic interests, which further encroaches on the economic, monetary, and political sovereignty of African countries.
Conditions imposed by the IMF and international creditors usually focus on five problematic and unfruitful policy strategies:
(1) export-oriented growth;
(2) liberalization of foreign direct investment (FDI);
(3) over-promotion of tourism;
(4) privatization of state-owned enterprises (SOEs);
(5) liberalization of financial markets.
Each one of these strategies is a trap disguised as an economic solution.…Brave New Europe
Africa’s Pandemic Response Calls for Reclaiming Economic and Monetary Sovereignty: An Open Letter
Fadhel Kaboub, Denison University, Ohio, USA
Ndongo Samba Sylla, Dakar, Senegal
Kai Koddenbrock, Goethe University, Frankfurt, Germany
Ines Mahmoud, Tunis, Tunisia
Maha Ben Gadha, Tunis, Tunisia