Exchange rate, fiscal and agricultural policies in Africa: Does adjustment hurt the poor?

Trade, exchange rate, fiscal, and agricultural sector policy reforms are the pillars of structural adjustment programs in Africa. Results indicate that trade and exchange rate reforms are associated with a large decline in economic rents and a shift in relative prices that favor the rural and urban poor. Fiscal reforms have not brought about draconian belt-tightening measures, although the incidence of public spending, particularly in the social sectors and in terms of public sector employment, remains far from progressive. Reduction of export crop taxation contributes to higher incomes for the poor, and domestic food crop liberalization has not led to increases in purchase prices of staple commodities for most low-income households. Copyright (C) 1996 Elsevier Science Ltd