Africa and global recessions: Options for reducing vulnerability in future

Abstract

Global recessions have devastating effects on economies. The most recent crisis in 2007/2008 led to declining output, rising unemployment and falling incomes in Africa. The paper specifically aims to explore sustainable long-term strategies which could reduce the vulnerability of African economies to similar recessions in future. Its specific objectives are: (i) to critically review theoretical perspectives which explain the causes of global recessions and how to prevent them; (ii) to examine the evidence on the effectiveness of the dominant responses to such crises; and (iii) to identify feasible and sustainable long-term strategies to minimise negative impacts in future. The paper applies a qualitative research methodology, which is based on review and analysis of secondary information. It concludes that traditional or conventional, market-based approaches do not adequately explain the root causes of global recessions and that the dominant counter-cyclical Keynesian-type fiscal...