1. Africa’s Debt and Structural Adjustment Programs

5. Where does the debt come from? Why is it increasing over time? Trade imbalance: the goods Africa produces/exports not valued as much on world market as goods Africa imports (why? Mainly raw, unprocessed materials; this has changed in the last decade with the increase in the use of mineral wealth, driven by China’s fast-growing economy). Most aid from Western countries in the form of loans, not grants (Jevanna) Creditors were the World Bank, and the International Monetary Fund (IMF) Corrupt leaders who squandered the money on their personal bank accounts Used for development: Example of Volta River Dam (in Ghana)

6. Structural Adjustment Programs (SAP) Regulations set by IMF on African governments to increase their debt payments: 1)Reduce government spending (mainly affected health, education, social welfare) 2)Invest resources in export products (timber, coffee, copper, etc. privatizing gov. businesses) The Lunda-Ndembu, p. 311: SAP in Zambia and President Chiluba p. 315: SAP = Satana Ali Pano (Satan is here)

9. HIPC = Highly Indebted Poor Countries

10. Where is the money going?