The Implications of NEPAD for Capital Accumulation

Abstract

ABSTRACT The role of private investment in Africa's economic development has been underscored since the advent of neoliberalism. Many of the macroeconomic and sectoral policy reforms of structural adjustment programmes (SAPs) were aimed at reinvigorating local entrepreneurs and attracting foreign investment to African economies. This objective was largely unsuccessful. While the New Partnership for Africa's Development (NEPAD) follows similar objectives in promoting the role of the private sector in the capital accumulation drive, it introduces new elements in the policy environment. The three major elements are the initiatives regarding good governance, infrastructure, and regional economic integration with the objective of effectively integrating Africa into the globalization process. The paper investigates the implications of these three initiatives of NEPAD for capital accumulation in Africa. It also comments on the impact NEPAD may have on the forms of accumulation; that is, how it may reconfigure the relative position of local entrepreneurs, public enterprises, and foreign investment in African economies.