African economic institutions and development

This paper analyses how and under what conditions International Economic Organisations (IEO) have evolved in Africa and how they have contributed to the development of the African nations. It mainly focuses on the role played by the United Nation’s Economic Commission for Africa, the African Development Bank and the New Partnership for Africa’s Development.

The paper begins with the presentation of the history, mission and development of each organisation. It then proceeds to analyse the various economic strategies advocated by IEOs and how successfully they have been getting African countries to adopt these policies.

The author argues that the response by African IEOs to the ascendancy and dominance of neo-liberalism has been quite disappointing. While acknowledging their contribution, the author says that it is the mindset that African IEOs which has been problematic. After the oil crisis of 1970s, IEOs have touted neo-liberalism as the only model of economic management and development.

African IEOs also faced both political and technical problems. African Development Bank in particular has been hampered not only by organizational problems such as lack of technical expertise and rivalries between the African and non-African executive shareholders, but also by a ‘deficit of development theory.’ Because it has lacked an economic development model of its own, it has always had to play second fiddle to the other IEOs, particularly the IMF and World Bank.

The paper concludes that for African IEOs to play a more meaningful role in development, they must be more open to pluralism in their economic thinking instead of relying solely on neo-liberal policies.