African Entrepreneurs: Pioneers of Development (Discussion by Keith Marsden

By Keith Marsden

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Extra info for African Entrepreneurs: Pioneers of Development (Discussion Paper (International Finance Corporation))

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Domestic savings have been depressed in these two countries, and the private sector has been crowded out of financial markets by government and public sector borrowing. Private sector credit levels are especially low when compared with the latest (1988) figures for the annual flow of foreign aid. No recent official estimates on the distribution of foreign aid between the public and private sectors are available. 6 percent. Foreign loans to development finance institutions. 11 Foreign loans went mostly to government expenditures.

Modern entrepreneurs in Côte d'Ivoire complained of unfair competition 5 See Dennis Anderson, "Small Industry in Developing countries: A Discussion of Issues," World Development, Vol. 10, No. 11, 1982. Page 11 from informal sector enterprises who were less efficient but escaped the heavy burden of taxes and regulations imposed on the modern sector. This anecdotal evidence is supported by an International Labor Organization (ILO) review of studies of the informal sector in Africa carried out by the ILO's Jobs and Skills Program for Africa (JASPA) team in many countries over several years.

Many countries that have encouraged private enterprise and competitive markets have witnessed a rapid expansion in wage employment and rising per capita incomes. On the other hand, countries that have emphasized central planning and state ownership often have experienced low rates of job creation and stagnant or declining incomes.

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