The core prescriptions of the Report for achieving a resumption of growth in African economies are: first, to reform the structure of incentives, and in particular to allow the free market greater influence in resource allocation. Second, to reduce the size and to reform the role of government. The latter, which we are concerned with here, is aptly indicated by the quotations reproduced above. This article addresses two main questions: what evidence is there for claiming that the public sector in Africa is 'overextended'? Would its contraction facilitate the increase in production which the Report is concerned to achieve?