... aid donors did not like the policies of the government. Less aid meant that the investment and savings rates went down also. The government tried to borrow money at this time of crisis but his just made the situation worse. In 1981 the World Bank produced a report called the Berg Report. This report strongly supported the view tat the economic crisis of the 1970's was due to state intervention. It said that because of mistakes in economic policy decisions that African economies had a poor export performance. Two Key price ratios that were affected were: The prices for agricultural goods compared to prices for industrial goods, and the price in local currency of the foreign exchange needed to buy imports on the foreign market... The Berg report recommended that these prices be determined by the market, and so this policy approach was called "getting the prices right". The Berg ...

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