Addis Ababa University

College of Social science

Department of Poetical Science and International Relations
Master’s Program

Reaction paper four for the course Africa in the

global Political economy (PSIR-612)

BY

Dilnessa Debasu ID GES/9826/11

Submitted to Asnake Kefale (PhD)

Total word count 1000

November, 2020
Introduction
This reaction paper attempts to review books written by A. Akinola entitled “The Role
of International Financial Institutions in Africa” wrote in 2018. Akinola is a PhD holder who
works in the Department of Public Administration & Political Science, University of
Zululand, KwaDlangezwa , South Africa. He wrote more than eight books and 83
publications. The second book review is written by Dikeledi A. Mokoena, entitled “The
Politics of Foreign Aid” 2018. He works in Department of Political Sciences, University of
Pretoria and South Africa. He wrote 13 books and 61 publications. In this paper it is
attempted to see the influence of Breton Wood institutions on Africa to download the interest
of western countries and the endeavor of African countries to resist this struggle. Besides, the
ideologies of the western and eastern world they follow in Africa to exploit the rich resource.
Mokoena stated that, the European intervention was not focused on the basic questions of
Africa rather it remains for the benefits of the donors in order to promote this according to
Akinola Europeans use forceful promotion to globalize the western social economic and
political system is designed to the negative approach of the non-western world. However,
states socio-economic and political truths are different and should be recognized under the
study. As stated by Akinola dependency theory strongly criticize the adoption of European
modernity with development without taking in in to account of the existing situation of
developing countries. This author continued to explain this argument as the expansion of one
type of capitalism through IFIs is dangerous to developing countries which is criticized for
the replication and application of the same policies that work in other areas to Africa.To the
contrary this author explained Modernization theory states that Africa after colonization is
incapable of development and if provide a roadmap to development taking liberalism as a
preference.
Mokoena and Akinola argued that, while World Bank provide concessional loan for Africa,
Africans were forced to adopt structural adjustment programs of neo liberal model especially
after the Second World War, IFIs have pressured countries to begin on liberalized policies
and sign Washington consensus and open their market to compete with transnational
corporations of developed countries and then trade liberalization become the major pillar for
neoliberal economic ideology with principle of free market economy that lasted up to date.
According to Akinola this liberalization of the African economy by the IFI was damaging
that advocates open and competitive economy in which the power of market decide the
mechanism of economic variables then it resulted economy and political democracy was
fallen in to a serious problem in that it was unable to survive even for basic needs and the
community was not consistent and also there was no democracy which was acceptable.
As Akinola contested, western countries and the Breton Wood institutions get on a policy
determination in prioritizing of private-sector-led growth in place of state-led development.
In addition to this, Mokoena stated that this institutions donation requirements were overt
clearly understood that is as Akinola also argued it include enforcing the conditionality of
democratization and strict economic decentralization on Africa even if the conditionality was
originally restricted to economic liberalization. Consistently, the conditionality far ahead
changed from stating some financial goals and suitable policy tools but chines were based on
covert conditionalities that is not clearly explained even it does not consider the political
conditions of the country. However, china might consider the political stability as compared
to the west because the social market economy does not prohibit china from achieving higher
rate of economic development and it was manifested that growth does not determined by
democracy as is witnessed by Angola.
The Chinese development model imitate selective features of the liberal economy that is open
market for domestic and local investment and flexibility of labor market. However, what is
unique for Chinese model is adaptability of policies and practices in line with specific
settings. Furthermore the Beijing consensus directed by the philosophy of pragmatism that
express a specific type of problem should be addressed by specific solution and it is not
clearly and specifically articulated. In addition according to the author it can be characterized
as: “commitment to innovation and constant experimentation in reforms; an emphasis on
sustainability and equality instead of per capita GDP as the only measure of progress; and a
commitment to self-determination”.
Akinola stated that absence of domestic saving, unable to reduce consumption, low level of
technology, ill-equipdness to increases export and hard currency market aggravate dept
accumulation problem. In addition to this Mokoena explained the larger amount of foreign
aid may have harmful effect on the receiving country than doing well in many ways.
However, the major problem for African economy is that the potential to grow is directly
influenced by the capability to export and usage of export income to diversify productions
and this is influenced by unfavorable global trade administration for Africa.
As Mokoena explained, in order to become successful in industrialization, Africa need to
based up on indigenous African principles, strengthen organizations that control the illegal
flow of money, made obligatory for multinational corporations to process primary
commodities that are extracted from Africa. As Akinola stated it is anticipated IFI played
significant role in minimizing the gap between developed and developing countries in
relation to poverty reduction and better livelihood.
In relation to these books I have found them interesting and explained the existing situations
of the relationship of Africa and the two blocks of the world in line with economy, politics
and social aspects.
Conclusion:
Africa might receive loans from the western or the eastern world to stimulate its economy;
however, the precondition to receive loans or fund should consider the framework of
indigenous conditions of Africa otherwise, if there is duplication of interests of either the
west or the east world, the continent might be at risk than alleviating basic problem in
relation to politics, economy and social matters.
References:
http://governanceinnovation.org/dikeledimokoena-and-tm/
https://www.pambazuka.org/author/dikeledi-mokoena
https://twitter.com/therealdikeledi?lang=en
https://www.broward.org/Library/Pages/eBooks.aspx
http://wiredspace.wits.ac.za/jspui/handle/10539/12091?mode=full
https://www.palgrave.com/gp/book/9781349952311
https://brill.com/view/book/9789004411227/front-4.xml?language=en
https://ideas.repec.org/b/spr/aaespd/978-3-030-05737-4.html