African Development Bank and the Prospects of Contending the Effects of Global Economic Crisis on Africa: A Critical Analysis

Abstract

Africa has been affected seriously by the global economic and financial crisis of 2007-2012, with several economic impacts such as increased poverty, reduced capital flow, decline in economic growth rate etc. This paper attempts to examine and analyse the nature and essence of the African development bank (AfDB) vis-a-vis its capability in managing the impacts of global financial and economic crisis in Africa. The paper surmises that African Development Bank, which is among the five major global Multilateral Development Banks (MDBs), is a laudable project aimed at social and economic development and combating poverty in the continent. While AfDB has really managed the crisis and supported member African states, it seriously requires general capital increase to remain effective. Thus, the Bank remains financially dependent on the donor-members/non-African members with America contributing the highest to the replenishment fund of the ADF- African Development Fund. Subsequently, there is skewed distribution of power in development decision making within the AfDB which engenders unpopular programmes and favours the capitalist class at the expense of the majority who are poor. These, weaknesses constitute great hindrance in the banks capability to maintain effective management of the impacts of global economic crisis on African states