By Mamadou Dia
Authors: Mamadou Dia
Publisher: global Bank
Keywords: indigenous, transpla, reconciling, Nineteen Nineties, administration, africa
ISBN-10: 082133431X ISBN-13: 9780821334317
List cost: 22.00 USD
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Extra info for Africa's management in the 1990s and beyond: reconciling indigenous and transplanted institutions
The operational and financial disconnect between the micro- Page 4 enterprise-informal sector (mostly indigenous) and the formal-modern sector (mostly foreign-dominated) has greatly impeded the development of the indigenous private sector. A review of seven indigenous microenterprises that have successfully graduated to large, modern enterprises (Chapter 5) showed that most of them faced financial difficulties arising from the dearth of intermediate and adapted financial systems serving as a bridge between the formal banks and financial institutions and traditional rotating savings on the one hand and lending institutions on the other.
Providing such guarantees would boost empowerment, transparency, and legitimacy. Ideally, Page 16 the new communications strategy should build on indigenous channels of information understood by the entire community while borrowing from modern media systems elements that would further reconciliation. The experiences of the liberation movements in Ethiopia and Eritrea (discussed in Chapter 9) show how this could be done. Finally, reconciliation calls for institutional and political stability, smooth succession, and peaceful continuitywithout which sustained economic development is impossible.
The BIAO's procedural guidelines, being dependent on regular savings and deposits, were unsustainable in the context of high inflation, low salaries, and a high cost of living. By making access to services hinge on investment shares, the Bank of Africa in Mali also generally failed. It skewed lending toward larger commercial customers, who were also shareholders. Most fell behind on their repayment obligationspartly because of ineffective sanctions and insufficient peer pressure resulting from their leverage on management.
Africa's management in the 1990s and beyond: reconciling indigenous and transplanted institutions by Mamadou Dia