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From the Lagos Plan of Action (LPA) - DPMF.org

From the Lagos Plan of Action (LPA) - DPMF.org

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10 <strong>DPMF</strong> Occasional Paper No. 13The dramatic increase in <strong>the</strong> volume <strong>of</strong> Africa’s external debt and<strong>the</strong> heavy debt burden is ano<strong>the</strong>r source <strong>of</strong> our pr<strong>of</strong>oundconcern….We are aware <strong>of</strong> <strong>the</strong> fact that shortcomings in development policieshave contributed to <strong>the</strong> present debt crises. However, it is evidentthat <strong>the</strong> major causes <strong>of</strong> our country’s debt servicing problems areexternal ones and such causes are unfortunately beyond ourcontrol. These include, inter alia, <strong>the</strong> deteriorating terms <strong>of</strong> tradeand <strong>the</strong> consequent reduction in export earnings for debt servicing,<strong>the</strong> unprecedented rise in interest rates, sharp exchange ratefluctuations, deteriorating terms <strong>of</strong> borrowing and <strong>the</strong> reduction in<strong>the</strong> flow <strong>of</strong> concessional resources, <strong>the</strong> combined effects <strong>of</strong> whichresulted in net capital outflow from most <strong>of</strong> our Member States. Inthis regard <strong>the</strong> 26 African LDCs have been most seriously affected(OAU, 1985.p.5). 10Incidentally, Africa’s Priority Programme <strong>of</strong> 1985 was discussed andapproved by <strong>the</strong> UN General Assembly in 1986 and was renamed <strong>the</strong> UN-PAAERD (United Nations Programme <strong>of</strong> <strong>Action</strong> for African EconomicRecovery and Development, 1986-1990).The African Alternative Framework to Structural AdjustmentProgramme for Socio-Economic Transformation (AAF-SAP) – UNECA(Addis Ababa, 1989)The lost decade <strong>of</strong> <strong>the</strong> 1980s was marked with two fundamentalcharacteristics. Firstly, widespread economic and political crises in almostall African countries. Secondly, strong intervention by <strong>the</strong> Bretton Woodsinstitutions with <strong>the</strong> now discredited Structural Adjustment Programmes(SAPs). These SAPs were forced on African governments, with <strong>the</strong> aim <strong>of</strong>restructuring Africa’s economies. Strong armed tactics were used by <strong>the</strong>WB/IMF to force African governments to accept <strong>the</strong> SAPs. The Africanpeople were, <strong>of</strong> course, not consulted and <strong>the</strong> implementation <strong>of</strong> SAPsinflicted serious economic disruptions and caused extensive immiseration<strong>of</strong> <strong>the</strong> African people. There was considerable opposition to SAPs from10 OAU Africa’s Priority Programme for Economic Recovery 1986-1990. Published byFAO, 1985.

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