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A Decade of Decline
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17048 |
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Section : |
CURRENT ISSUES
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| Issue
Date : |
8 / 1990 |
3,190 Words |
| Author
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George B.N. Ayittey
George B.N. Ayittey, a native of Ghana, is Distinguished
Economist at American University and president of the Free
Africa Foundation in Washington, D.C. He is the author of a
forthcoming book, The African Predicament (St. Martin's
Press). |
Once a region with bountiful stores of optimism and hope, the African continent now teeters perilously on the brink of economic disintegration, political chaos, and institutional and social decay. The decline in per capita income has been calamitous for many African countries. Agricultural growth has been dismal, with output growing at less than 1.5 percent since 1970. Industrial output across Africa has also been declining, with some regions experiencing deindustrialization. Export volumes for many African countries faltered, leading to a fall by almost half in Africa's share of world markets.
To maintain income and investment, African governments borrowed heavily in the 1970's. Total African foreign debt has risen 19-fold since 1970 to a staggering $130 billion, equal to its Gross National Product (GNP), making the region the most heavily indebted of all (Latin America's debt amounts to around 60 percent of GNP). Debt service obligations absorbed 47 percent of export revenue in 1988, but only half were actually paid; the arrear payments are constantly being rescheduled.
With scarce foreign exchange increasingly being devoted to service debt obligations, less money was available to import spare parts, drugs, textbooks, and other essential supplies. Infrastructure began to crumble for lack of maintenance, roads started to deteriorate, and telephones refused to work. Hospitals in many African countries had no running water. At the Akomfo Anokye Hospital in Ghana, patients were asked to bring their own bandages, blankets, and food.
Educational facilities soon began to disintegrate. Makerere University in Uganda, once called "The Harvard Of
... (1998 of 19981 Characters)
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