Institutional paradigm and the management of transitions: A sub‐Sahara African perspective

Abstract

One of the overarching goals of many African countries since the past two decades has been the rapid move towards integration with the global economy. This is evident through far‐reaching macroeconomic and political reforms now taking place in these countries. However, despite the aggressive lurch towards market‐driven transformations, results on the ground have been less than satisfactory – arising largely from a myriad of implementation failures. It appears that while much emphasis is put on the potency of a free market‐driven transition, there is little understanding of how particular institutional arrangements shape and determine the success (or failure) of market/economic reforms. This paper adopts an institutional approach to analyse the transition challenges facing Africa. It concludes that countries in Africa are facing tumultuous problems in achieving sustainable growth, largely because the market‐driven transition programmes are rooted in economic orthodoxy that is anti‐institutional and, therefore, ill‐equipped to deliver desired results. Paradoxically, this appears to be the case with the UN Millennium Development Goals. Improved results in achieving the goals and, indeed, the broader market reform efforts are possible if planners and policy makers are able to root their planning processes within the contextually embedded institutional environment.

Citation

Nwankwo, S. and Richards, D. (2004), "Institutional paradigm and the management of transitions: A sub‐Sahara African perspective", International Journal of Social Economics, Vol. 31 No. 1/2, pp. 111-130. https://doi.org/10.1108/03068290410515457