The Role of International Financial Institutions in Africa’s Development: a Case Study of the African Development Bank
Africa‘s development, despite having billions injected into its advancement still remains at best gradual. Poverty levels still remain relatively high as compared to other parts of the globe hampering socio-economic growth in the continent. The interplay between economic and non-economic factors are vital in understanding the dynamics of socio-economic development. The latter justifies the inefficiencies of conditional loans imposed by IFI‘s as history depicts these organizations as lacking knowledge of the environments in which they distribute their loans. Therefore, IFI‘s have been ineffective in achieving development in the African continent. The overall objective of the AfDB Group is to support the economic development and social progress of African countries individually and collectively, by promoting investment of public and private capital in projects and programs designed to reduce poverty and improve living conditions. Combating poverty is at the heart of the Bank‘s efforts to assist the continent to attain sustainable economic growth. Despite its growing profile, however, the AfDB‘s standards and capacity to implement them remain behind similar institutions when it comes to social and environmental responsibility. It is making strides with its new disclosure policy and the development of a modern safeguards system. At the same time, with increasing demand from Civil Society Organizations (CSO‘s) for participation and accountability, the AfDB is slowly becoming more responsive to the public it is meant to serve. However, even as the Bank becomes more open, its appetite for risky projects continues unabated, particularly within the infrastructure, energy and agriculture sectors.
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