The macroeconomics of adjustment in
            sub-Saharan African countries : results and lessons
Despite the satisfactory performance of
            several intensely adjusting sub-Saharan African countries -
            and successful results in agriculture and food production -
            the overall results of adjustment achieved in Africa have so
            far been modest. Adjustment has not yet succeeded in raising
            the rate of growth enough to make major inroads in reducing
            poverty. Sub-Saharan Africa's economic recovery is
            still fragile. Currency depreciation and inflationary
            pressures have not yet been fully subdued in several
            countries because of persistence of underlying expansionary
            fiscal and monetary policies. Many sub-Saharan countries
            still rely exclusively on external grants and concessional
            financing to close their fiscal gaps. Per capita consumption
            remains stagnant, and private investment has not yet
            revived. Unemployment rates are still high, particularly in
            urban areas, and poverty is on the rise. When there is civil
            strife, adjustment, of course, has not worked. There is a
            general consensus that consistent and unfetted
            implementation of adjustment policies and attainment of
            macroeconomic stability do improve the outlook for growth in
            Africa. But the record of implementation is mixed and
            uneven. Adjustment is necessary even if it is bound to work
            slowly. But for it to work at all depends on the strong
            commitment by leaders of these countries to sustain reform
            policies in the face of adverse and harsh external
            circumstances and domestic political pressures. What is less
            clear, and thus invokes controversy, is the speed, timing,
            and sequencing of adjustment programs. As each reform has a
            different impact on the various segments of the population -
            creating winners and losers - mediating among these
            conflicting claims is highly political. There are no
            technocratic solutions or quick fixes to provide
            satisfactory solutions. No amount of external assistance can
            help in this process. Consensus-building, open
            communications, consultations, and debate - and reaching
            compromises - will bring about the durable results. But in
            practice, this path has proved difficult. It is equally
            clear that adjustment policies, even when they are put in
            place after reaching internal consensus, will not lift
            African countries out of poverty. The agenda of policy
            reforms should be considered as part of the broader
            long-term development strategy of each country. This
            strategy should aim not only at changes in policies, but
            also at improving investment in human resources and physical
            infrastructure, accelerating opportunities for private
            sector development, enhancing the quality of governance,
            strengthening institutional capacity, and - most importantly
            - maintaining national solidarity and social cohesion.