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Financial Resources and Policy Space in Africa

How developmental states boost domestic resources

Making greater use of domestic resources can help African countries achieve sustained and higher economic growth and over the long term will reduce overdependence on donor funding and on the rules that apply to it, according to the new Africa report by UNCTAD, the UN Conference on Trade & Development. The report argues that increased use of domestic financial resources and more productive investments would enhance "policy space" to define development programmes that reflect their countries´ genuine priorities. By Rainer Falk


The new report, Economic Development in Africa 2007: Reclaiming Policy Space: Domestic Resource Mobilization and Developmental States (see reference), points out that “developmental states," in which governments actively manage economic policy to encourage greater economic diversification, are in a better position to boost domestic resource mobilization , giving true meaning to the rhetoric of "ownership" of economic policies ...

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Posted: 27 September 2007

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