ABSTRACT
This chapter determines the relative importance of macroeconomic management and institutional quality in economic development, understood as the permanent increase of per capita income and of individual wellbeing. It gives an indication of how well francophone Africa performed in comparison with other parts of sub-Saharan Africa and the rest of developing world. The economic performance of francophone Africa measured in terms of growth rate, inflation and current account deficit has something to do with the financial policies pursued. The institutional perspective of economic development in Africa concerns the following issues: attitudes and behaviour, efforts to improve economic efficiency, the role of the state, colonial and neo-colonial factors, and markets. The chapter discusses the flexibility and adaptability of policies, the management of external shocks and net capital flows, public expenditure and the management of public finance, and impact of reforms on macroeconomic management and performance. A deterioration of institutional quality can wipe out positive effects of good or appropriate macroeconomic policies.
