Sequencing, timing, and speed of economic transformation in Angola

Abstract

In the context of crisis described above, the immediate priority in the structural and systemic transformation programme (SSTP) for Angola is emergency measures to (i) rehabilitate the social and economic infrastructures, (ii) permit war refugees and demobilized former combatants to be reintegrated into civilian society, and (iii) satisfy the basic needs of the population, thereby assisting in the reduction of absolute poverty. Angola's recent political culture will have to change, to accept the need for political and cultural tolerance and democratically sanctioned expression of diverse (even opposing) needs, interests and views. Justice must come to be applied effectively and impartially. Unless this can be achieved, equitable and sustainable growth and development will be impossible.

In economic terms, the severe macroeconomic distortions, destroyed infrastructures, institutional weakness of both public and private sectors, reassertion (in 1993) of command measures and the reversal of earlier partial microeconomic liberalization programmes, and the pervasive corruption, make the transformation process long and complex. Addressing the formidable challenges of reconstruction and development in Angola will necessarily involve high social costs during the transition. To attenuate these, the international community has an important role to play through humanitarian aid; technical assistance; development aid for reconstruction of economic and social infrastructures; concessionary finance for construction of a social safety net; and appropriate debt relief. The primary responsibility, however, rests on the Angolans themselves.