Nwanne, T.F.I (2012) IMPACT OF FINANCIAL CRISIS ON ECONOMIC GROWTH IN AFRICA. In: 2nd Accounting and Finance Research Association International Conference, 4-7 Nov 2012, Enugu.
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Impact of Financial Crisis on Economic Growth in Africa 1 May 2019.pdf Download (1MB) |
Abstract
This presentation is on ‘Impact of Financial Crisis on Economic Growth in Africa’. It was necessitated by many commentators’ belief that the world’s emerging economies, particularly those in Africa, would be destabilised by the effects of the crisis that originated from the most advanced industrialised economies. The impact of the global financial crisis is likely to vary across African countries depending on their exposure to the international financial system, their production and export structure, and their capacity to use policy tools to cushion its adverse effects. The most significant are the decline in export prices and volumes. Private capital flows to the region, mainly consisting of foreign direct investment (FDI), have slowed to a trickle, hindering economies that had been relying on these flows to finance much-needed infrastructure and natural resource access projects. The impact of the financial crisis has been transmitted to African economies not through the credit crunches and liquidity freezes that are currently strangling advanced and emerging economies, but rather through the global recession that followed. In light of these potentially debilitating effects, it is critical for African countries and their leaders to seek proactive economic policy measures and reforms to mitigate the effects of the crisis on African economies. These should include interventions to strengthen African markets and institutions, expand ‘South-South’ trade and economic cooperation, increase inter/intra-regional trade to lessen dependence on overseas markets, and implement expansionary monetary and fiscal policies to boost demand and employment. Furthermore, on a global level, African leaders must push for reform of the global financial architecture to include greater representation of African interests in the forum of international financial institutions. The only likely drawback that might disrupt the rising prosperity in Africa are corruption, political instability and insecurity, as these might pose risks to doing business in Africa.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HJ Public Finance |
| Divisions: | Faculty of Management and Social Sciences |
| Depositing User: | mrs chioma hannah |
| Date Deposited: | 02 Jul 2019 14:29 |
| Last Modified: | 02 Jul 2019 14:29 |
| URI: | http://eprints.gouni.edu.ng/id/eprint/1695 |
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