Africa and the Global Economic Crises : Impacts, Policy Responses and Political Economy

"African countries have already undertaken a number of effective measures to minimize the impacts of the crisis. Taking a longer-term perspective, African countries could turn the crisis into an opportunity to restore their economic potentials and return to high and sustainable growth rates. Policies should focus on improving domestic fundamentals and enhancing economic diversification. Longer-term growth would be further enhanced if African countries maintain macroeconomic stability, deregulate labor markets, improve the business environment, develop financial markets and strengthen governance. Encouraging private sector development to spur investment is one of the key medium term challenges, which would also provide a base for a more diversified growth strategy."