seriously constrained government operations as ordinary expendi­ ture is generally inflexible downwards -without urdue social costs -governments were forced either to reduce development ex­ penditure at the cost of possible loss in growth momentum -or to resort to bank borrowing thereby fueling already acute scarcity - related i nfla tina ry pressures. There is evidence that both measures were employed: in the majority of countries thC' ratio of de vel opme nt expenditure to GDP has fallen while domestic liquidity increased. The weighted inflation rate fort e African region calculated on a sample of 36 countrieE jumped -, y 10 per­ centage points to 25 per cent in 1981. ' 8. In addition to the external factors reqional qrowth was equally affected by domestic conditions. The poor_perfc:::-rnance of 19 E/ECA/Ct·1. 9/5 .:1griculture affecting also agro-based industries and other aspects of economic activity is a major factor behind the un­ satisfactory over-all growth in the region. In 1981 agriculture value added for developing Africa as a whole increased by 0.7 per cent, that for major oil exporters dropped by 2.8 per cent and that of the non-oil exporters group rose by 1.8 per cent -under­ scoring serious loss in per capita production. North and West Africa -.tere the more seriously affected with poor results recorded in Algeria, the Libyan Arab Jamahiriya, Morocco, Niger, Nigeria, Senegal and Sierra Leone. This contrasts sharply with performance in East Africa: about 9 countries recorded growth in agricultural output of 6 per cent or more. The main problem of African agriculture is a persistent shortfall in food production spilling over in demand for scarce foreign exchange for imports. In 1981 food production increased by a mere 1.3 per cent and that of cash crops by 11.7 per cent. However local prices continue to 
**Analysis**
The text primarily focuses on the economic situation in Africa, specifically the constraints on government operations, inflation, and the performance of agriculture, which are all indicators of economic development. The text also touches on the impact of these factors on the overall growth of the region.

**Category**
Economic development, Agriculture, forestry and fishing