The South African economy has been off to a good start in 2018. Statistics SA, the country’s national statistical service, released national accounts figures with revisions that pointed to more positive momentum in the economy than previously thought. South Africa grew by 1.3% in 2017, beating the consensus estimate of economists, and the revised numbers no longer record a technical recession early in the year.
“Tell me where you live, and I can predict how well you’ll do in life.”
Does welfare vary largely across space?
Although I don’t have a crystal ball, I do know for a fact that location is an excellent predictor of one’s welfare. Indeed, a child born in Togo today is expected to live nearly 20 years less than a child born in the United States. Moreover, this child will earn a tiny fraction—less than 3%—of what his or her American counterpart will earn.
In Part I of our blog —based on a background note we wrote for the World Bank’s 2017–2022 Country Partnership Framework for Ethiopia—we presented our key findings on the spatial or regional distribution of poverty and child malnutrition in Ethiopia.
In Part II of our blog, we look at changes in road density over the ten years from 2006 to 2016, and in nightlights in six cities over four years from 2012 to 2016.
This blog was first published on September 15, 2015 by Alexandre Marc, Chief Specialist for Fragility, Conflict, and Violence at the World Bank and author of the recently published book, “The Challenge of Stability and Security in West Africa. It is being re-posted this week to highlight the book’s launch event in Europe, at the Agence Française de Développement in Paris.
A few months ago, as I was walking through the streets of Bissau, the capital of Guinea Bissau, I reflected on what had happened to this country over the last 20 years. It had gone through a number of coups and a civil war; its economy had barely been diversified; electricity and water access was still a major issue. There was the city of Bissau on one side, where a semblance of services where provided, and the rest of the country on the other.
Inequality is of concern for at least three reasons. First, lower inequality per se is an objective for a decent society. Second, lower inequality improves the efficiency of economic growth in achieving poverty reduction. Third, high inequality impedes growth itself, through its impact on social cohesion and the investment climate.
Despite hundreds of millions spent on more and better household surveys across Africa in recent decades, we only have a very rough idea about the levels and trends in income poverty and inequality in sub-Saharan Africa. Many reasons contribute to this unfortunate state of affairs.
Dear Africa Can readers, we’ve heard from many of you since our former Africa Chief Economist Shanta Devarajan left the region for a new Bank position that you want Africa Can to continue highlighting the economic challenges and amazing successes that face the continent. We agree.
Today, we are re-launching Africa Can as a forum for discussing ideas about economic policy reform in Africa as a useful, if not essential, tool in the quest to end poverty in the region.
You’ll continue to hear from many of the same bloggers who you’ve followed over the past five years, and you’ll hear from many new voices – economists working in African countries and abroad engaging in the evidence-based debate that will help shape reform. On occasion, you’ll hear from me, the new Deputy Chief Economist for the World Bank in Africa.
We invite you to continue to share your ideas and challenge ours in pursuit of development that really works to improve the lives of all people throughout Africa.
Here is my first post. I look forward to your comments.
In 1990, poverty incidence (with respect to a poverty line of $1.25) was almost exactly the same in sub-Saharan Africa and in East Asia: about 57%. Twenty years on, East Asia has shed 44 percentage points (to 13%) whereas Africa has only lost 8 points (to 49%). And this is not only about China: poverty has also fallen much faster in South Asia than in Africa.
These differences in performance are partly explained by differences in growth rates during the 1990s, when emerging Asia was already on the move, and Africa was still in the doldrums. But even in the 2000s, when Africa’s GDP growth picked up to 4.6% or thereabouts, and a number of countries in the region were amongst the fastest-growing nations in the world, still poverty fell more slowly in Africa than in other regions. Why is that?
- Central African Republic
- Burkina Faso
- Congo, Democratic Republic of
- Congo, Republic of
- Cote d'Ivoire
- Equatorial Guinea
- Gambia, The
- Sao Tome and Principe
- Sierra Leone
- South Africa
- South Sudan
- africa growth
- East Asia
- cash transfers