African Economic Outlook 2002 2003 by Organisation for Economic Co-Operation and Development PDF

By Organisation for Economic Co-Operation and Development

ISBN-10: 9264100032

ISBN-13: 9789264100039

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These are important initiatives that will need to be sustained and deepened to enable the donor community to fulfil its pledge of supporting the MDGs. While these policies are essential, they would need to be complemented by measures to help African countries transform their production structures, in order to help them to take advantage of increased market access. Policy Assessment and the Cost of Meeting the MDGs in Africa17 Accelerating growth and improving health and education outcomes towards attaining the MDGs will require large resources for financing investments in both physical and human capital.

Evidence suggests that transfers of ownership to the private sector have generally been more successful in improving efficiency. By contrast, experience of lease arrangements in the water industry, most notably in Côte d’Ivoire and Guinea, and concessions contracts in the electricity sector, most notably in Cameroon, has highlighted difficulties in co-ordinating state investment decisions and the firm’s operating needs. Badly defined memoranda of understanding are often sources of tension between the state and concession/lease holders, even when the privatisation is deemed successful.

This is conducive to improved profitability, capital investment, transfer of technology and know-how, product diversification and rising output. Overall, few studies have examined the financial performance of privatised firms in developing countries, especially in Africa. A survey published in 1998, estimates that privatised companies in Tanzania have more than doubled their productivity (defined as the number of units produced per employee), whereas their total value added has increased by more than four times.

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African Economic Outlook 2002 2003 by Organisation for Economic Co-Operation and Development


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