ABSTRACT
On November 5, 1984, nearly 200 men and women from Africa, Europe, and the US met in Lome, Togo, to consider the following problem: How can private enterprise be promoted in Africa so as to foster economic growth and development? The organizers designed the conference to serve as a catalyst for thinking about the role of private enterprise in Africa's economic development. The positive case for the introduction of private enterprise systems in Africa is very strong. One important aim of the Lome conference was to initiate discussion among African policymakers about the application of the theory of the private enterprise system. In the early years of African independence, strong arguments could be made for import substitution strategies and extensive nationalization. The flip side of import substitution in Africa is extensive state involvement in directly productive activities. Small and medium-sized enterprises are the means by which African states can overcome their economic "extraversion," their lack of internal, horizontal economic interdependence.
