Paul Dale Bush analyzed the conditions under which "progressive" institutional change is likely to occur. After 60 years of failed development policies, Africa is in desperate need of such change. However, the IMF and World Bank continue to support corrupt dictatorships and retard the forces of progressive institutional change. This paper outlines the case for a new policy approach that emphasizes democracy, accountability and economic flexibility as crucial ingredients to create the conditions for progressive institutional change in Africa. The paper develops policy recommendations emphasizing political conditionality and economic unconditionality to lay the foundations for a developmental state in Africa.