Why the external account?
The name captures two preoccupations of this newsletter.
The 'external account' is another name for the balance of payments - the record of a country's economic transactions with the rest of the world. It captures trade, capital flows, debt service, remittances. I think this account matters more than most economic commentary on African countries acknowledges. The budget gets the attention. The balance of payments is where the real constraints often lie.
An ‘account’ is also a story - a version of events, an explanation of what is happening and why. Much of the most influential account-giving about African economies happens externally: in Washington, London (where I am based), and Brussels, in multilateral institutions, philanthropic foundations, and think tanks. These external accounts, the stories told about what economies ‘need’ and what is possible, shape what gets financed, what gets reformed, and what gets ignored. They deserve proper scrutiny.
This newsletter is about both types of ‘external account’.
What you will find here
Posts are mainly about macroeconomics in African economies and some of the international forces and ideas that influence it.
About the author
I have spent much of my career working with organisations (multilateral development banks, philanthropic foundations, think tanks, consultancies) that advise African governments on economic policy. I think there is room to do a lot, lot better.
