ABSTRACT
Developments in the global economy have served to confirm that the international debt crisis is far from being under control. In a handful of middle-income African countries the debt is predominantly bank debt, but in most others it takes the form primarily of official debt and of suppliers' credits and unpaid import arrears. The Organization of African Unity has called for a political solution to the problem, involving the take-over of private foreign bank debt by the central banks of industrialized capitalist countries and the forgiveness or rescheduling of bilateral debts. The World Bank has introduced a $1 billion Joint Program of Action for Sub-Saharan Africa. It is hoped that this will mobilize additional bilateral funds to assist African countries wishing to pursue acceptable adjustment programs to deal with their economic problems. The belief has been that if debtors met International Monetary Fund conditionality there would continue to be an inflow of capital from private banks to ease adjustment.
