TIMBUKTU, Mali - Months after a rebel attack was rebuffed in Mali, the country is striving to stabilize in order to fight poverty and boost shared prosperity. I'm visiting the West African nation with UN Secretary-General Ban Ki-moon to underline international commitment to the region.
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
Getting Somalia right has huge regional and global implications and attracted $2.4 billion in support at a recent development partners meeting in Brussels.
Supporting fragile and conflict-affected countries to get back on a stable, hopeful development path is a key priority for me as Vice President for the World Bank’s Africa region. It is on my mind especially at the moment after being in Brussels several days ago to participate in the EU-hosted New Deal Conference on Somalia, and then visiting Bamako to pledge our support to Mali’s newly formed Government. As stated by the international community and many observers, the recent election of President Ibrahim Boubacar Keita will open a new era of peace and reconstruction for Mali and we will be an active partner in this immense task.
The Brussels conference marks the anniversary of last year’s political transition and culminated in the endorsement of a “Compact” against which the international community pledged $2.4 billion through 2016. The conference, hosted by the EU and the Government of Somalia led by President Hassan Sheikh Mohamud, not only helped consolidate international political support for Somalia but also generated considerable momentum for the country’s development plans and a path to international debt relief.
|Makhtar Diop with Malien Finance Minister Tiéna Coulibaly|
Here in Mali, as French and Malian troops pursue jihadist groups into the countryside along the country’s borders, the talk everywhere is of “la feuille de route,” a political roadmap that will take this Sahelian country from its triple crises of 2012 on a measured transition towards new elections and a lasting recovery.
1 basin, 9 countries, 1 vision was in a brochure of one of the Council of Ministers meeting of the Niger Basin. The first time I saw that brochure I smiled as I right away thought about 9-1-1, the emergency telephone number used to respond to emergency circumstances in North America. It made me think about the numerous challenges that the Niger Basin faces.
This large Basin of 2 million square kilometers with a complex hydrology, running through nine countries, including its central part in the Sahel, has significantly untapped potential (agriculture, energy, etc.) that represents high stakes for large groups of communities, environmental degradation, and frequent water shocks (drought and floods). The Basin territory is also home to numerous political challenges, including instability and terrorism activities as highlighted by the ongoing events in Mali. Quite daunting when you look at it from this perspective, and it does give a sense of urgency.
We know that water and sanitation services do not always recover their costs from tariffs. So, if communities or governments are to maintain the infrastructure properly, they depend on the public budget. And those expenditures must be predictable and transparent.To take a closer look at this issue, the World Bank analyzed public expenditure on water supply and sanitation from fifteen countries in Sub-Saharan Africa, assessing how much public money was budgeted for the sector and on what it was spent.
Mon ami, l’économiste togolais Kako Nubukpo, avec qui j’ai eu l’occasion de débattre lors d’un de mes voyages à Lomé, a fait part de son analyse sur le bilan des quinze années d’existence de l’Union économique et monétaire ouest-africaine (UEMOA) lors d’un entretien pour le site Ouestaf.com.
D’après lui, même si l’Union est parvenue à gérer l’équilibre macroéconomique et budgétaire entre les États membres, la combinaison d’une monnaie forte (du fait de la parité fixe entre le franc CFA et l’euro) avec ce qu’il appelle « la gouvernance macroéconomique » restreint la compétitivité et donc la diversification et la croissance économique des pays membres.
Ces commentaires émanant d’un économiste qui est actuellement consultant auprès de l’UEMOA relanceront peut-être le débat sur les performances et les options économiques des pays d’Afrique francophone.
Experts on youth and employment from Ghana, Kenya, Mali, and Colombia met on Saturday as the Spring Meetings got underway to discuss the growing problem of youth unemployment in Africa. The high-level panel, chaired by Obiageli Ezekwesili, World Bank vice president for the Africa Region, agreed that there are no easy solutions to the problem.
“Youth in urban areas are looking for jobs alongside thousands of others from the same schools, while rural youth are flooding into the cities looking for work,” said Sanoussi Toure, the Minister of Finance of Mali. “This is a tragedy. Our policies favor investment in education and training, but this investment has not led to job creation.”
Key points that came out of the meeting included:
- There are no easy solutions to the problem of youth unemployment.
- Youth employment has to be part of the growth strategy of every African country.
- Employment policies need to favor investment in education and training.
The panel also included Mauricio Cárdenas, former Colombian Minister of Transport and Economic Planning. Cárdenas talked about the outcomes of two youth programs Colombia put in place during his country's economic crisis in the late 1990s, when external shocks drove unemployment from 10 to 20 percent, and youth unemployment to 30 percent.
It is clear that youth unemployment in Africa needs to be addressed from many entry points, Ezekwesili said in her concluding remarks.
“The profile of unemployed youth has to enter the way we think, just as gender has. Youth need to be effectively targeted in everything we do, so that they will have a stake in the future,” Ezekwesili said.
Continuing on Saadia’s discussion of climate change, I want to point out one part of the world where the effects of climate change are being felt now. Unfortunately, it just may be the one region of the world that can least afford another problem.