Considering the manner in which an economy functions, a country wherever it is located has to comply wit international standards and expectations. This refers to all countries whether they are super-powers or under-developed countries, as it is rare when poorer countries are made exceptions. However, there are cases where strategies have to be applied in order to relieve countries of incurred debt. Otherwise, it would certainly be a difficult task for their people to live above the poverty line. Nevertheless, there are many that suffer in various countries (Illustration 1). Particularly speaking of poverty, it must be asserted that countries of the Sub Saharan region are said to be troubled significantly because of economic strife.

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In view of the debt that the region has, it is understandable that a region will not be able to progress far enough economically speaking; growth in this regard will be stunted because of the debt the country has. This is because of the fact that among other factors, fear also prevails, and investors are afraid to venture out and invest their valuable resources in such regions. Generally speaking, if debts were to be lowered, and investors assured of the safety of their investments, investor confidence would return and stimulate growth. With this understanding, it may be asserted that investigation into the Sub-Saharan region has been carried out. According to investigations carried out there, the

Growth prospects of the region may be ascertained. These have been done so under a specific plan that would help one to estimate the prospects of the region.

In the form of packages for debt-relief, researchers have implemented their plans. The plans implemented consisted of “debt reduction packages of 5%, l0%, 20% and 50%” (lyoha, 1999). By using such a system of measure, it has been convenient in recording the corresponding results in investment and growth thereafter. The regular increase in the debt-relief observed here makes observation and recording simpler than what it might be when using other systems of measure. As a base for understanding the growth triggered by the debt-reduction, it is worth considering that “a 20% debt stock reduction would, on average, have increased investment by 18% and increased GDP growth by 1% during the 1987-1994 period”(lyoha, 1999). Given that the region suffered tremendously during the 1980s, it can be said that they would have to struggle to get out of their situation. “Sub-Saharan Africa, per capita income fell to an average annual rate of 2.2%; Per capita private consumption declined fell by 14.8%” (Observe Illustration 2 and 3) (lyoha, 1999). In view of these conditions, the World Bank and the IMF both recommended structural adjustment programs. Some in the region did not comply with this. Those that did failed to ameliorate their conditions, largely speaking. Hence, the signs of improvement were slim. In view of this, it also must be asserted that the condition was severe enough to carry on into the 1990s, thus reinforcing fear in investors. Certainly, this was a real fear because of the fact that structural adjustment had not done much good even when it was accepted and implemented. This may be because of the manner in which it was implemented. However, in relation to the reduction of debt in the Sub-Saharan region, it must be said that if debt were to be reduced, growth would be directly impacted. According to studies, it is said that 50% debt stock reduction would have raised per capita gross domestic investment by over 40%, and increased GDP growth by over 3%, on average, during the 1987-1994 period. At this point, it must be asserted that Nigeria by Chhibber and Pahwa (1994) and by Iyoha (1997) mimic this argument. Judging by studies carried out in the Sub-Saharan region, it can be said that extremely high stock of external debt stunts investment and reduces economic growth. As a result, heavily indebted places such as those in the Sub-Saharan region should develop better strategies in order to ameliorate their situation. Keeping in mind that what the IMF and World Bank have recommended through the years has not worked, it must be asserted that traditional debt relief mechanisms are still held fast to. The strategies currently employed include “debt restructuring, debt rescheduling, reduced debt servicing, debt buy-backs, interest rate options, etc.” (lyoha, 1999) It has been ascertained that these have helped to a significant extent in lessening “the debt stock” (Ogbe, 1992).

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In summary, one needs to go over what a Sub-Saharan country’s chances are according to its economic position. As mentioned earlier, and as an example, “a 20% debt stock reduction would, on average, have increased investment by 18%” (lyoha, 1999). This more specifically refers to 1987-1994 period. In addition to this, “Debt forgiveness” has the ability to stimulate investment recovery and economic growth. Also, extremely high stock of external debt reduces investment (Illustration 4 is worth noting). Hence, the traditional means in place could be sustained or ameliorated in some way to benefit the process. Having asserted this, it must be asserted that better strategies could be devised in order to improve economic growth in the region.

Finally, regarding the manner in which the economic strategies are operating in the Sub-Saharan region, it must be asserted that the growth in this region is slow. However, as long as a steady flow is maintained, the chances of the economy improving are relatively high. However, in the light of political problems, this could also be mitigated considerably. In addition to the political condition, there is also need to take into consideration the social state of affairs. Since, many countries in the region are not well-off, it might be asserted that social problems would exist, if not rampant (Illustration 1). This kind of situation currently prevailing in most of the countries in the region makes it difficult for growth to improve. Hence, the economy is most likely to struggle and gain momentum at a snails pace.