Introduction

Several years after the worst drought and famine in history (1983–1985), Africa remains a continent in crisis. Although the problems of drought and famine have not been entirely eradicated, the foreign debt has moved to the top of the agenda as the most serious problem facing most African economies today. The financial crisis in Africa has arisen because of falling prices and earnings from commodity exports, sharply increased debt-repayment burdens, and the reduced private capital flows from industrial countries.