import controls, etc. While African countries eec the funds, the SU[gested measures are very difficult to ac.·ept, hence the very uneasy relationship. It seems prudent and nee ssary fer IMF to crente a special relationship between itself 1d developing Africa that would prove profitable for both. 2. Policy issues 39. The paramount financial policy issues the c, ,ltinent has faced in the past year were, as in previous years, :he rate of interest and the exchange rate. 40. The problem with the rate of interest was not ·hat it was low so much as the impact it had on external flows a, a domestic savings. 41. In the fac:e of very high international interest rates, low domestic rates, some argued, did not encourage inflows of resour­ ces. Furthermore, because of high rates of inflation, real in-". te rest rates were negative, which ci sccurage c comesti c savings. It was therefore suggested that interest rates should be in­ creased, and Burundi, Madagascar, Swaziland, Zambia anc Zimbabwe among others die increase them. 42. Other countries followed a pclicy of stable nominal interest ra~ as. They argued that the influence of interest rates was not zt1 ong enough to warrant raising them. Indeec, an increase coulc have a negative effect since in most of Africa saving is limite c ~ot so much by interest rates as by the fact that incomes are low ~o begin with. In such circumstances the problem is how to in­ t~:-ease incomes so that savings can increase. Yet to increase in­ come, investment must increase, whereas if interest rates are in­ creased ivestment will be discouraged. 106 E/ECA /CM. 9/5 43. These arfuments and counter-arguments have been raised in virtually all countries, and the response has been varied. It seems that most countries eYpect no dramatic change in economic 
**Analysis**
The text appears to be discussing the economic policies and challenges faced by African countries, specifically the issues related to interest rates, exchange rates, and savings. It also touches on the relationship between African countries and the International Monetary Fund (IMF). The text does not seem to be focused on any specific sector such as agriculture, forestry, or fishing, nor does it discuss natural resources, environment, or humanitarian aid. The language and content suggest that the text is more focused on macroeconomic issues.

**Category**
Economic development, International trade