Bank of Mauritius-IMF Institute seminar: Structural adjustment in sub-Saharan Africa is focus of high-level regional gathering

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For the first time in a generation, sub-Saharan Africa's economic performance has shown substantial improvement in recent years, based largely on improved policies. Nevertheless, the overall economic situation is fragile, as evidenced by the slowdown in economic growth and the increase in financial imbalances in 1998, owing to poor weather, weak commodity prices, and armed conflicts. More fundamentally, sub-Saharan Africa still has a long way to go to make a real dent in pervasive poverty, begin catching up with other developing regions, and integrate itself fully into the global economy.

To review the current economic and financial policy issues facing sub-Saharan African countries, the IMF Institute, in collaboration with the Bank of Mauritius, organized a high-level seminar on structural adjustment in sub-Saharan Africa, which was held in Mauritius during May 12-14. The opening addresses were delivered by the Prime Minister of Mauritius, Navinchandra Ramgoolam; IMF Deputy Managing Director Alassane D. Ouattara; the Governor of the Bank of Mauritius, Rameswurlall Basant Roi; and IMF Institute Deputy Director Saleh Nsouli. Several ministers, central bank governors, and other senior officials from 11 sub-Saharan African countries participated in the seminar.

Issues and challenges

Structural adjustment is essential for all African countries, Ramgoolam emphasized in his opening remarks, requiring perseverance in the implementation of policies and reforms that are consistent and sustainable in the long run. He also underscored the importance of a new partnership with industrial countries that recognizes and acts upon Africa's need for more open trade, more foreign direct investment, greater transfer of technology, and deeper debt relief.

Ouattara stressed some key priorities in Africa's efforts to foster growth and integrate itself into the global marketplace. The IMF would, he said, continue to support strong reform programs with financial and technical assistance, as well as training designed to enhance administrative and technical capacity. He pointed to the expanded training efforts of the IMF Institute in Africa, as evidenced by the recent decision to establish a Joint Africa Institute in Abidjan, in collaboration with the African Development Bank and the World Bank.

Enlarging on the IMF's role in Africa, Nsouli reviewed the recent experience of structural adjustment programs...