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A political transition has been effected in Oshana; the new government is confronted with the issue of whether or not to adopt an SAP. In the spirit of the new democratic political culture, the government decides to sponsor a national debate on the issue. A number of interests identify themselves at the outset. The International Financial Institutions (IFIs), such as the World Bank and the International Monetary Fund, and other bilateral donor agencies argue forcefully that a restructuring of the country's economy is the only way to turn the economy around. They cite statistics from other countries in Africa showing modest to considerable success in the implementation of SAPs. The new government is eager to improve the country's economic situation; without new resources it will not be able to function on a daily basis, let alone to undo the deterioration of the past decades and meet the people's pent up demands. However, the government worries about the development strategy implicit in the SAPs and about the consequences for its own survival of implementing harsh austerity measures. During the transition to democratic rule, civic organizations emerged in large numbers throughout the country. These groups are particularly concerned about the reported impact of SAPs which are rumored to hit hard the poorest citizens, at least in the short term. If such a program is really to be implemented, the civic organizations are concerned to mitigate the harsh impact of them. Foreign investment is touted as one of the benefits of the SAPs and yet, under present circumstances, foreign investors are somewhat wary of significant investment at this time. But they are feeling heavy pressure from the IFIs and donors to do so. A national debate is ensuing. What are the arguments of these four groups? What compromise might be reached? What will be in the best interests of Oshana? Are there positive models from around Africa that Oshana might emulate? |
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© Gretchen Bauer, Univ. of Delaware, 2001. Problem-Based Learning Clearinghouse |
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