By Vijay S. Makhan (auth.)
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Additional info for Economic Recovery in Africa: The Paradox of Financial Flows
These ﬂuctuations reﬂected not only the negative effects on most African countries of the 1973 oil price shock and the recession that followed in the developed countries but also the short-lived boom that resulted from the rebound in world prices for a number of non-oil primary exports in 1976. 3 It should be noted that, while a large majority of African countries were hurt by the 1973 oil price shock, oil-exporting countries such as Gabon and Nigeria beneﬁted substantially from the windfall, although their growth contracted when oil prices declined during 1977–9.
However, for oil importers whose exports are concentrated on commodities for which price declines were moderate, or for which prices even rose, the export revenue loss was smaller and, in varying degrees, they enjoyed an improvement in their terms of trade. Such was the case in 1998 for exporters of cocoa (Ghana and Côte d’Ivoire), tea and tobacco (Malawi), and iron ore (Mauritania). However, in the ﬁrst quarter of 1999, the drop in the price of cocoa affected major exporters of that commodity.
2. This rate was much lower than in other developing countries and in many cases agricultural growth did not keep up with population increase. There was an expansion of cultivated land, but public and private investment was not forthcoming on a scale necessary to transform the technological proﬁle of agricultural production and enhance productivity growth. As a result, agricultural production remained constrained by traditional peasant production methods. Export expansion occurred with little diversiﬁcation, either vertically towards processed commodities or horizontally within the primary sector.
Economic Recovery in Africa: The Paradox of Financial Flows by Vijay S. Makhan (auth.)