Prelims

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AFRICAN ECONOMIC DEVELOPMENT

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AFRICAN ECONOMIC DEVELOPMENT

SECOND EDITION

EDITED BY

EMMANUEL NNADOZIE

African Capacity Building Foundation, Zimbabwe

AFEIKHENA JEROME

Igbinedion University, Nigeria

United Kingdom – North America – Japan – India – Malaysia – China

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Emerald Publishing Limited

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Second edition 2019

Editorial matter, selection and chapters copyright © Emerald, chapter 10 copyright © author.

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ISBN:978-1-78743-784-5 (Print)

ISBN: 978-1-78743-783-8 (Online)

ISBN: 978-1-78743-976-4 (Epub)

About the Contributors

Jacob Adetunji works as Senior Demographer and Deputy Chief for the Policy, Evaluation and Communication Division in the Office of Population and Reproductive Health at USAID, Washington, DC. Before joining USAID, he was Assistant Professor of Sociology at Bowling Green State University, Ohio. He has held research positions at Harvard University Center for Population and Development Studies, Macro International Inc., and Population Studies Center at the University of Pennsylvania.

Olu Ajakaiye is currently Executive Chairman, African Centre for Shared Development Capacity Building, Ibadan, Nigeria. He was President of Nigeria Economic Society, Director of Research, African Economic Research Consortium (AERC) Nairobi and Director-General, Nigerian Institute of Social and Economic Research (NISER), Ibadan. He obtained his MA and PhD in Economics degrees from Boston University. He specializes in development economics and has published widely in the area.

Olufunke A. Alaba is a Senior Lecturer in the Health Economics Unit, School of Public Health and Family Medicine at the University of Cape Town. She is an applied econometrician with a research interest in social determinants of health, poverty, and development economics

Mario J. Azevedo is Professor and Dean of the College of Liberal Arts and Chair of the Department of History and Philosophy at Jackson State University, Jackson, Mississippi. He earned a Masters of Public Health degree from the University of North Carolina and a PhD in History from Duke University. He is a prolific scholar, with over 10 books on health and history in Africa and over 30 encyclopedia entries.

Rui Benfica is Lead Economist, Research and Impact Assessment Division, IFAD. He undertakes research in areas relevant to IFAD’s overarching goal of overcoming rural poverty. He was Associate Professor at Michigan State University (MSU), Economist at the World Bank’s Gender and Development Group, and Africa Region Poverty Reduction and Economic Management Team. He has a PhD in Agricultural Economics from MSU.

Nicholas Biekpe is currently Professor of Development Finance & Econometrics and Director of the Development Finance Centre at the University of Cape Town Graduate School of Business. Nicholas is also President of Africa growth Institute and Executive Chairman of the Chartered Institute of Development Finance. He is a Chartered Statistician; a Fellow of the Royal Statistical Society of Great Britain; Chartered Scientist of the Science Council of the United Kingdom, and a Fellow of both the Academy of Sciences of South Africa and African Academy of Sciences.

Jordan Chamberlin is a Spatial Economist with the International Maize and Wheat Improvement Center (CIMMYT), based in Ethiopia. He holds a PhD in Agricultural Economics from Michigan State University and an MA in Geography from Arizona State University. He conducts applied research on smallholder farm households, rural development, and policies designed to promote the welfare and productivity improvements.

Paul Collier (Sir) is Professor of Economics and Public Policy at the Blavatnik School of Government, Oxford University, and a Professorial Fellow of St Antony’s College. From 1998 to 2003, he has served as Director of the Research Development Department of the World Bank. He is currently a Director of the International Growth Centre. In 2014, he received a knighthood for services to promoting research and policy change in Africa.

James S. Duesenberry of Belmont and Cambridge, MA sadly passed away on October 5, 2009 of heart failure after the first edition was published. He was a member of President Lyndon Johnson’s Council of Economic Advisors from 1966 to 1968. He also served as Chairman of the Federal Reserve Bank of Boston from 1969 to 1974. Born in 1918, Duesenberry earned his doctorate from the University of Michigan in 1948 and was a Fulbright Fellow at Cambridge University, England in 1954–55. He was appointed to the Faculty of Economics at Harvard University in 1955 and taught at Harvard until his retirement in 1989. He was Chair of Harvard University’s Department of Economics from 1972 to 1977. A prominent economist best known for proposing the Relative Income Hypothesis, Professor Duesenberry is missed by his students and colleagues alike at Harvard University.

Marcel Fafchamps is a Senior Fellow at the Freeman Spogli Institute for International Studies, Stanford University. Prior to joining FSI, he was a professor of development economics at the Department of Economics, Oxford University. He also served as deputy director of the Center for the Study of African Economies. His research interests include economic development, market institutions, and social networks. He holds a PhD in agricultural and resource economics from the University of California Berkeley.

Augustin Kwasi Fosu is Professor, ISSER, University of Ghana; Extraordinary Professor, FEMS, University of Pretoria; and Research Associate, CSAE, University of Oxford. Previously he was Deputy Director, UNU-WIDER, Helsinki; Senior Policy Advisor/Chief Economist, UNECA, Addis Ababa; and Director of Research, AERC, Nairobi. He holds a PhD in economics from Northwestern University. He is Co-managing Editor, Journal of African Economies (Oxford). He has published extensively, and is ranked among “top authors” in Africa and globally.

Arthur A. Goldsmith is Professor Emeritus at the University of Massachusetts Boston and former associate dean at the College of Management. A specialist on development management, institutional reform, and comparative public administration, he has been a consultant to several international agencies and has published over 100 scholarly papers, chapters, and other intellectual contributions.

T. S. Jayne is University Foundation Professor of Agricultural, Food, and Resource Economics at Michigan State University. A Distinguished Fellow of the Agricultural and Applied Economics Association (AAEA) and the African Association of Agricultural Economists, he played a major role in supporting the development of African agricultural policy research institutes.

Jayne has received six research excellence awards over the last decade, including the 2017 AAEA Bruce Gardner Memorial Prize for Applied Policy Analysis.

Afeikhena Jerome is currently Special Advisor at the African Union Commission. He is also Professor of Economics at Igbinedion University, Okada, Nigeria. He previously served with the UNDP and NEPAD Secretariat as pioneer coordinator for APRM Secretariat, South Africa. He has also held several distinguished positions including Visiting Scholar, International Monetary Fund, Visiting Fellow, the World Bank, and Senior Associate Fellow, Saint Anthony’s College, Oxford University.

Odongo Kodongo is an Associate Professor of Finance at Wits Business School. He obtained his PhD from Witwatersrand University and MBA from Kenyatta University. His research interests are in risk pricing, development finance, and economic growth. He has authored papers in high-impact journals and written book chapters for reputable publishers. A Certified Securities and Investments Analyst, he has advised several clients including governments and corporates and participated in various African capacity building initiatives.

Akim T. Lukwa is currently enrolled for the Masters in Public Health (Health Economics), with the University of Cape Town, South Africa. His main interest lies in the application of economics concepts in the analysis of public health problems. He has done some research work and consultancy on the economic burden of malaria and socioeconomic inequalities in maternal and child health.

John Mukum Mbaku is Brady Presidential Distinguished Professor of Economics at Weber State University, Ogden, Utah. He is also a Nonresident Senior Fellow at the Brookings Institution, Washington, DC, and an Attorney and Counselor at Law (licensed in the State of Utah). He is also a member of the Bar of the US Supreme Court. He received the JD degree and Graduate Certificate in Environmental and Natural Resources Law from the S.J. Quinney College of Law, University of Utah, where he was Managing Editor of the Utah Environmental Law Review, and a PhD (economics) from the University of Georgia.

Malcolm F. McPherson has a PhD in Economics from Harvard University. He is Senior Fellow in Development in the Vietnam Program, Ash Center for Democratic Governance and Innovation, Harvard Kennedy School. McPherson worked for The World Bank (1976–1978) and The Rockefeller Foundation (1979–1982) before joining the Harvard Institute for International Development in 1982. He was chief of party on projects promoting macroeconomic reform in The Gambia (1985–1989) and Zambia (1992–1996) and senior advisor for the USAID-funded EAGER (Equity and Growth through Economic Reform in Africa) project.

David Nabena is Senior Economist with the Nigeria Governors’ Forum. He provides development policy support to Nigeria’s State governments and coordinates the Forum’s research with development organizations, including the World Bank, the United Nations development agencies, Bill and Melinda Gates Foundation, the Overseas Development Institute (ODI), and UK’s Department for International Development (DFID). His interests are in the areas of macroeconomics and fiscal management, regional integration, and infrastructure financing.

Emmanuel Nnadozie is Professor of Economics and Executive Secretary of the African Capacity Building Foundation (ACBF). He was previously at the United Nations Economic Commission for Africa (ECA) where he held several positions, including Chief Economist and Director of Macroeconomic Policy Division and coordinated UN System-wide Support to the African Union and NEPAD. He was also Professor of Economics at Truman State University, Missouri. He received his PhD in Development and International Economics from Université Paris 1 Panthéon Sorbonne.

Ayodele Odusola is Chief Economist and Head of the Strategy and Analysis Team for UNDP’s Regional Bureau for Africa. He provides leadership on development strategy, policy analysis, research, and knowledge products on Africa: coordinating flagship reports, including the Africa Human Development Reports, Africa SDGs reports, and the book Income Inequality Trends in Sub-Saharan Africa. He is the Chair of the UNDP Technical Working Team on LDCs and LLDCs.

John F. E. Ohiorhenuan is a Distinguished Service Fellow of the Department of Economics at the University of Ibadan in Nigeria. His main interest is in the political economy of development. His 40-year professional career is divided almost equally between academic pursuits at various universities and international development work at the United Nations. He has a BSc (Economics) from the University of Ibadan, and MA/PhD from McMaster University in Canada.

Una Osili, PhD, is an Economist with significant experience in research and policy in the fields of household behavior and economic policy. She is Associate Dean for Research and International Programs, Professor of Economics and Philanthropic Studies, and Dean’s Scholar, Mays Family Institute on Diverse Philanthropy, at Indiana University Lilly Family School of Philanthropy, the world’s first School dedicated to increasing the understanding of philanthropy and improving its practice worldwide.

Louw Pienaar is Senior Agricultural Economist working for the Western Cape Department of Agriculture, where he works in the Division for macro and resource economics. He is interested in rural development and the role of agriculture in development and food security. He holds an MSc degree from Stellenbosch University.

Jean-Philippe Platteau is a Development Economist trained at the University of Namur and the Hebrew University of Jerusalem. He founded the Centre de Recherche en Economie du Développement (Centre for Research in the Economics of Development), or CRED, in 1994 at the University of Namur. He is presently the co-director, with François Bourguignon, of an international research program devoted to Economic Development and Institutions (EDI), and funded by DFID.

Achim Steiner is the Administrator of UNDP. Over nearly three decades, Steiner has been a global leader in sustainable development, climate resilience, and international cooperation. Prior to joining UNDP, he was Director of the Oxford Martin School and Professorial Fellow of Balliol College, University of Oxford. He was also the Executive Director of the United Nations Environment Programme and Secretary General of the World Commission on Dams.

Norma Tregurtha is Director of Policy and Outreach at the ISEAL Alliance in London. Her work is focused on interacting with key business groups, governments, and NGOs to advocate the use of credible standards. Prior to joining ISEAL, she worked for a Southern African grant-making agency aimed at supporting pro-poor, private sector development through implementing the “making markets work for the poor” approach, and for the Department of Agricultural Economics at Stellenbosch University.

Nick Vink is Chair of the Department of Agricultural Economics at Stellenbosch University. He became President of the International Association of Agricultural Economists in August 2018, and serves on the Board of the South African Reserve Bank. His main research interests include agricultural development on the African continent, land reform, and structural change in South African agriculture, agricultural policy, and wine economics.

Felix Kwame Yeboah is Assistant Professor of International Development at Michigan State University and the principal author of Chicago Council on Global Affairs’ 2018 Global Food Security Report. He has expertise in multiple areas of social policy including agricultural and food system transformation, natural resource management, and youth livelihood issues in Africa. His research has been successfully applied to inform agricultural policy and youth employment strategies across Africa.

Foreword to the Second Edition

I am delighted to write the foreword for the second edition of African Economic Development.

The first edition published by Academy Press, an imprint of Elsevier Science in 2003, has been well received. The useful collection of 23 original essays has been very influential and filled a void in the teaching of African economic development at various levels in universities and other institutions of higher learning all over the world.

Since the first edition was published, there have been several developments in Africa. After almost two decades of stagnation and decline, one and a half decades (2000–2014) have been a period of sustained economic growth before the commodity slump of 2014, leading to the recent euphoria on African renaissance. The growth was not only spread across countries, with about 40% of them growing at 5% or above, but it was also broad-based with many sectors contributing (resources, finance, retail trade, agriculture, transportation, and telecommunications). ¹ During this period, inflation fell to single-digit levels in several countries and foreign reserves increased in most countries. Also in most African countries, the overall business climate improved, stimulating notable increases in foreign direct investment inflows. There was also a quick recovery from the global economic and financial crises of 2007–2008, such that the continent’s average growth in 2012 was almost five times the average growth in the Eurozone. Some of the world’s fastest growing economies are now in Sub-Saharan Africa while Africa’s private sector has also become an increasingly powerful engine for change, driving innovation and transforming outdated business models. Foreign direct investment has also increased by a factor of six over the past decade. With Kenya’s mobile money M-Pesa, drones delivering vaccines and blood to Rwanda, and supplying just-in-time information to winegrowers in South Africa, it is increasingly evident that Africa is on its way to becoming a place of immense innovation and creativity.

Despite these recent developments, there are still some palpable challenges. Africa’s economic growth slowed to 3.6% in 2015, and decelerated further to 1.6% in 2016, the lowest level in the last 20 years, challenging the “Africa rising” narrative. The sharp decline in aggregate growth reflects the adverse external environment and challenging economic conditions in the region’s largest economies and commodity exporters—Angola, Nigeria, and South Africa—as they continue to face headwinds from lower commodity prices, tighter financing conditions, droughts as well as sluggish growth from the North African countries still rebuilding after the Arab Spring ² . This notwithstanding, there is variation across countries, particularly between resource and non-resource-rich countries. While countries in East Africa led the pack of fastest growing economies – not just in Africa, but also in the world in 2015 – overall, Africa’s growth trend remains below pre–financial crisis levels. A modest rebound is foreseen in the medium term, as commodity prices continue to pick up gradually.

African countries, with a few exceptions, have also been far less successful in raising per capita incomes, reducing poverty, and transforming their economic structures. Although the incidence of extreme poverty has fallen from 57% in 1990 to 43% in 2012, it remains high, and slower growth is deepening the challenge of reducing poverty. Recent growth in Africa has not been accompanied by significant structural transformation. Indeed, the economic structures of several African countries, especially resource-rich countries, became more concentrated, making them more vulnerable to external shocks. Moreover, Africa’s recent growth has not been as inclusive as desirable, thereby failing to provide remunerative employment opportunities. Achievements in the area of human development remain unsatisfactory despite improvements in school enrolment rate and child/ maternal mortality. Climate change has become a major threat so also is migration with images of thousands of African youth drowning in the Mediterranean, propelled by poverty or conflict at home and lured by the hope of jobs abroad. These are some of the issues that preoccupy this volume.

This updated second edition by Emmanuel Nnadozie and Afeikhena Jerome is a collection of 23 chapters from leading scholars on Africa including Paul Collier, Achim Steiner, Jean- Philippe Platteau, Augustin Fosu, Olu Ajakaiye, Thomas Jayne, and Marcel Fafchamps just to name a few. Subdivided into four sections, the book offers authoritative insight and unique perspectives on different facets of the process of economic development in Africa. The chapters cover the major influences on growth and development over time and their effects, the institutional context, as well as the significant or unique problems which have slowed or undermined Africa’s growth and efforts being made to counter them.

It is my hope and expectation that this book will provide an effective learning tool and reference resource for students and professionals interested in African economic development.

Dr. Ngozi Okonjo Iweala

Foreword to the First Edition

Africa is suffering. In the 40 years since the ending of colonialism, the continent has been smitten by three catastrophic droughts, civil war in countries that encompass more than half of all its inhabitants, the Tutsi genocide, six wars between African states, an AIDS epidemic of vast proportion, and adverse movements in its terms of trade. If we may describe these events as “external shocks” over which those in charge of the management of Sub-Saharan economies had little control, there were a variety of “internal factors” that have also contributed. Thus advances in national output have been repressed by economic policies that often include expenditure on grandiose projects and quick-fix economic controls. The former has drained precious tax proceeds and the latter has worked to destroy incentives to produce. And African economies have further been weakened by a blanket of theft cast by their national leaders and public servants. Such theft takes the form of fiduciary looting by those at the top and by pervasive corrupt exactions by those below charged with administering the nation’s social and economic programs.

Yet the picture is not one of unmitigated gloom. Despite the common perception, Africa is not “a continent under intolerable strain, poised between crisis and catastrophe.” A true social and economic crisis would produce a fall in life expectancy – yet, AIDS notwithstanding, life expectancy is up by almost a quarter since 1960. Child mortality has been cut in half. Female literacy, with all it entails for health and childcare, at 48% is greater than in South Asia or North Africa. Higher up the ladder, female enrolment in secondary schools has risen from about 3 to 23%. Access to potable water is now over 30% as compared to 10% in 1970. As one of Adam Smith’s primary determinants of the market’s size, and hence advances in the division of labor, the network of paved roads between 1970 and 1990 had risen from 3.8 to 8.9 kilometers per 1,000 square kilometers. Agricultural yields per acre for most of the basic staple crops are up substantially since the early 1960s – 29% for cassava, 43% for wheat, 57% for corn, and 65% for rice. And Africa has had its own information explosion in terms of newspaper circulation, radio, and TV ownership with expansions of five- to fifteen fold in the past 25 years. With more information disseminated across society, the foundations for improved decision-making are laid, not only in matters of economics but also for politics. A better-informed electorate makes it that much harder for authoritarian regimes to retain power. Such regimes have recently been replaced by multiparty electoral systems in Nigeria and Ghana – joining six smaller countries – so that over a quarter of all Africans now live in functioning democracies, as fragile and imperfect as they may be.

For the students of this volume, these disparate elements of gloom and hope, of progress and stagnation will become part of an intelligible whole. Borrowing Sir Frederick Lugard’s term, its authors have set themselves a “dual mandate.” The first part of that mandate is to provide a comprehensive survey of Africa’s economic development. Early chapters by Emmanuel Nnadozie and Mario Azevedo set out the essential facts, diversity, and unique features of its climate, topography, and history that have shaped the postcolonial experience. In the chapters that follow, virtually every sector of the economy – agriculture, health, education, communications, labor, financial markets, and trade – is described and its performance over the past 40 years evaluated. No other book on African economies can boast such breadth. Indeed, one would have to go back to Lord Hailey’s magisterial 1,800-page An African Survey of 1945 for a comparable scope. Interestingly, Lord Hailey’s opening paragraph setting out his objectives applies equally well to the present undertaking:

This work is not limited to a discussion of the state of our knowledge regarding the problems which are involved in the development of Africa; it attempts also to describe the physical and social background out of which these problems have arisen, and to analyze the factors which, so far as can now be seen, must determine their solution.

The second part of the mandate set by our authors relates to Lord Hailey’s final point, analyzing the factors which must determine the solution to Africa’s current ills. Leading scholars in their field – Paul Collier, John Quinn, John Mbaku, E. Wayne Nafziger, Kwabena Gyimah-Brempong, Marcel Fafchamps, James Duesenberry – probe deeply into the adequacy of contemporary economic and political theory as they apply to Africa’s problems. The focus is on economic policy and the empirical testing of policy prescriptions. How the formulation, adoption, and implementation of those policies are impacted by ethnic diversity, political instability, corruption, and globalization are closely scrutinized.

Few stones are left unturned. Other topics explored include the continent’s experience with structural adjustment programs, the potential of regional cooperation and of utilization of the Internet, and the economics of conflict and humanitarian emergencies.

“Seek ye first the political kingdom.” In the final chapter of this volume, Arthur Goldsmith and his coauthors offer the proposition that the leaders of Africa have, in effect, run Thomas Hobbes’ Leviathan in reverse. In a state of nature, it is “all against all,” where no rules prevail, uncertainty reigns supreme. Here human life is “nasty, poor, brutish and short” and, it hardly need be added, the returns to effort and enterprise, to savings and investment are highly problematic. To escape this predicament, a social contract is struck where the people submit themselves to an independent political authority who provides in exchange social peace and “commodious living.” No mean attainment, Adam Smith judged this state of things to be in itself the necessary and sufficient condition for economic development: “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and tolerable administration of justice; all the rest being brought about by the natural course of things.” During the late 1960s and the 1970s, Africa’s leaders breached the social contract, sewing disorder and compelling their subjects to fall back on traditional and informal mechanisms. Once the contract is securely reinstated, once the extraordinarily difficult task of returning good government to Africa has been accomplished, then and only then will a sustained development process be possible. This book makes important scholarly and policy contributions by providing a multitude of insights into Africa’s development conditions. African decision makers must be open to learn from and act upon the type of analysis and policy prescriptions set forth in this volume which points to the roads to be avoided and the roads to be taken.

Peter Kilby

Preface

African Economic Development, Volume 2 is prepared for use at the university level for courses such as African Economic development, Economic Development and International and African Studies.

The book is comprehensive and eclectic: therefore, accessible to a wide audience. It pays great attention to maintaining balance among the economic development theoretical constructs. The text also covers critical African development issues in a comparative, cross-sectional and sound pedagogical procedure using appropriate theoretical tools.

The book is structured and written both for students who have had some basic training in economics and for those with little or no formal economics background. The textbook may also be useful to undergraduate and graduate students and others who are interested in African development. It highlights and explains, at appropriate points, essential principles and concepts of economics that are particularly relevant for the understanding of African development problems and issues. These concepts are also defined in detailed and extensive glossary. Thus, the book should be of special value in undergraduate and international courses that attract students from a variety of disciplines. In addition, the coverage is broad in scope and rigorous enough to satisfy any undergraduate and certain graduate economics requirements in the field of economic development.

Acknowledgements

The production of such an important work as African Economic Development requires a momentous level of contribution by many people. Indeed, this book would not have been possible without the invaluable assistance, noteworthy support and limitless kindness of several individuals. Prominent among these are the contributors to this volume to whom we are greatly indebted: Jacob Adetunji, Olu Ajakaiye, Olufunke Alaba, Mario J. Azevedo, Rui Benfica, Nicholas Biekpe, Jordan Chamberlin, Paul Collier, James Duesenberry of blessed memory, Marcel Fafchamps, Augustin Kwasi Fosu, Arthur A. Goldsmith, Thomas Jayne, Odongo Kodongo, Akim Tafadzwa Lukwa, John Mukum Mbaku, David Nabena, Ayodele Odusola, John F. E. Ohiorhenuan, Una O. Osili, Louw Pienaar, Jean-Philippe Platteau, Achim Steiner, Norma Tregurtha, Nick Vink, and Felix Kwame Yeboah.

We are exceptionally grateful to Peter Kilby and Ngozi Okonjo-Iweala for their invaluable support and for writing this book’s forewords. The development of this book also benefitted from the wisdom and professional review of many experts including Olu Ajakaiye, Joshua Ajetomobi, Paul Alagidede, Louis Chete, Akpan Ekpo, Adeniyi Gbadegesin, Nyemetu Roberts, Ayodele Odusola, Victor Okoruwa, and Carole Rakodi.

We are especially grateful to Academic Press, an imprint of Elsevier science, publishers of the first edition for the detailed and insightful commentaries and critique that proved immensely helpful in shaping the fine product that African Economic Development has become. Deserving of a great deal of gratitude are J. Scott Bentley and Paul Gottehrer for nurturing the first edition.

Special thanks go to Emerald Publishing Limited for publishing this volume. We are grateful to Charlotte Maiorana and Nick Wolterman for their untiring efforts and outstanding support in preparing the volume for publication. We also acknowledge Sujatha Subramaniane and Charlie Wilson for their editorial assistance and the secretarial help in preparing the manuscript. Without the support, dedication and hard work of these people, this book would never have been completed.

We are equally indebted to our esteemed colleagues and friends: Mark Abani, Joe Abah, Adekeye Adebajo, Bankole Adeoye, Akinwumi Adesina, Yinka Adeyemi, John Anyanwu, Ademola Ariyo, Elizabeth Asiedu, Adeyemi Dipeolu, Juliet Elu, John Ishiyama, Mohammed Jibia, Donald Kaberuka, Louis Kasekende, Levy Uche Madueke, Kupukile Mlambo, Chinedum Nwajiuba, Yaw Nyarko, Chuma Obidegwu, Wale Ogunkola, Asisana Okauru, Adebayo Olukoshi, Martin Onwu, Ebere Onwudiwe, Benedict Orama, Eloho Otobo, Hesphina Rukato, Lemma Senbet, Bob Sherman, Abebe Shimeles, Richard Sklar, Dwayne Smith, Charles Soludo, Bertha Thomas, and Chudi Uwazurike. Their support and generosity was especially vital.

Likewise, we are greatly indebted to Sarah A. Hass, Teresa York, and Summer Battles whose unwavering professional support, kindness and generosity were as extremely important to the success of the project as their editorial support. We are also very appreciative of our former students in the United States and Nigeria for their help in shaping the ideas of this textbook.

Family support was also essential in keeping us grounded and focused. Our gratitude therefore goes to Adaeze, Ozy, Chukwuma, Meg, Cecilia, Brian, Vic, Sam, Tessy, Igna, Zeek, Kent, Bisi, Bukola, Fidelis, Margaret, Onose and especially our mothers Lolo Susanna Adanma Nnadozie and Victoria Tanimowo Jerome. We are grateful to the Social Science Division and the McNair Program at Truman State University for providing the institutional arrangement that made possible such huge undertaking as the first edition of this book. We are also indebted to the Afro-American African Studies Department at University of North Carolina at Charlotte where the original idea was developed as well as the African Finance and Economics Association (AFFA) and the Akagu Foundation – the two organizations that provided us with great inspiration and through which we learned the meaning of African development.