Dhaneshwar Ghura

Tax Revenue in Sub-Saharan Africa: Effects of Economic Policies and Corruption

An analysis of data for 39 sub-Saharan African countries during 1985-96 indicates that the variations in tax revenue-GDP ratios within this group are influenced by economic policies and the level of corruption. Namely, these ratios rise with declining inflation, implementation of structural reforms, rising human capital (a proxy for the provision of public services by the government), and declining corruption. The paper confirms that the tax revenue ratio rises with income, and that elements of a country`s tax base (such as the share of agriculture in GDP and the degree of openness) influence tax revenue.

Sub-Saharan Africa; Growth, Savings, and Investment, 1986-93

This paper assesses the economic performance during 1986-93 of sub-Saharan African countries as a group and of selected analytical subgroups of countries.

Cotton sector strategies in West and Central Africa

Cotton production is truly a success story in West and Central Africa. The region is now the second largest exporter of lint, after the United States, with a world market share of 15 percent. Despite its strong performance in the past, the sector is characterized by several institutional and structural weaknesses that jeopardize its viability in an era of increasing globalization of the cotton industry. The sectors future performance will also depend on the implications of cotton sector policies in major producing countries such as the United States, the European Union, and China. This paper examines how the above factors may affect future growth of the regions cotton industry. It also identifies the changes that are required to enable countries in the region to fully exploit the sectors significant growth potential.

Public Policies and Private Savings and Investment in Sub-Saharan Africa; An Empirical Investigation

This paper assesses empirically the role of public policies in stimulating private savings and investment in sub-Saharan African countries, based on data for the period 1986-92. The main findings of the analysis are as follows: (i) policies effective in stimulating private savings and investment include those that keep the rate of inflation low, reduce macroeconomic uncertainty, promote financial deepening, and lower the external debt burden; (ii) measures that promote structural reforms and reduce the budget deficit (without lowering government investment) help to raise private investment; and (iii) declines in government savings are only partially offset by increases in private savings.

Adjustment and Growth in Sub-Saharan Africa

This paper analyzes the factors affecting economic growth in sub-Saharan Africa, using data for 1981-97. The results indicate that per capita real GDP growth is positively influenced by economic policies that raise the ratio of private investment to GDP, promote human capital development, lower the ratio of the budget deficit to GDP, safeguard external competitiveness, and stimulate export volume growth. The favorable evolution of these variables played an important role in the region`s apparent postreform recovery of 1995-97. The paper also discusses a policy framework to promote sustainable economic growth and reduce poverty in sub-Saharan Africa.

Financial Deepening in the CFA Franc Zone: The Role of Institutions

During the 1980s and early 1990s many Sub-Saharan African (SSA) countries undertook reforms to promote financial sector deepening. Nevertheless, financial sectors in SSA countries remain among the shallowest in the world and, within Sub-Saharan Africa, financial depth in the CFA franc zone is even more limited. This paper sets out to investigate empirically factors that may explain why financial depth in the CFA franc zone is shallower than in the rest of SSA using panel data for a sample of 40 countries for 1992-2006. The results indicate that the gap in financial development between the CFA franc zone countries and the rest of SSA can be explained by differences in institutional quality (e.g., availability of credit information, and strength and enforcement of property rights), variables that policy makers can influence.

Promoting growth in sub-Saharan Africa. Learning what works.

Africa is the world’s poorest continent, but amid all the bad news, there is hope for change. This pamphlet examines the lessons to be learned from some of the more successful economies south of the Sahara, and discusses a policy framework to promote sustainable economic growth and reduce poverty across the region.

Oil and Growth in the Republic of Congo

This paper investigates the linkages between oil and growth in Congo, where there appears to be no evidence of direct spillover effects. The empirical results suggest however that political instability has a negative effect on non-oil growth, and that the presence of oil could have fueled political instability by being associated with weakening institutions. The results also show that fiscal discipline is beneficial for growth. In addition, there are strong linkages between world oil prices and the real effective exchange rate, with movements in the latter having important indirect repercussions for growth.

Effects of Macroeconomic Stabilityon Growth, Savings, and Investment in Sub-Saharan Africa; An Empirical Investigation

The analysis of this paper indicates that the unsatisfactory overall economic performance of sub-Saharan African countries during 1986-93 was due to inappropriate policies pursued by a number of countries. The countries that have pursued broadly appropriate adjustment policies have performed much better, achieving positive per capita GDP growth. The analysis is supported with an econometric investigation of the effects of macroeconomic policies, structural reforms, and exogenous factors on economic performance. The results indicate that progress in achieving macroeconomic stability and implementing structural reforms have been conducive to better growth, savings, and private investment.

Evolution des filieres cotonnieres en Afrique de l`Ouest et du Centre

Cotton production is truly a success story in West and performatnce wvill also depend on the implications of Central Africa. The region is now the second largest cotton sector policies in major producing couLltries stich exporter of lint, after the Unired States, with a world as the United States, the Europeani Unioni, and China. market share of 15 percenit. Despite its strong This paper exanmines how the above factors may affect performanice in the past, the sector is characterized by furtIre growth of the regions cotton industry. It also several institutional and strLictuiral weaknesses that identifies the chaniges that are required to eniable jeopardize its viability in aii era of increasinig countries in the regioni to fullyv exploit the sectors globalization of the cotton industry. The sectors future significant growth potential .