In country after country in Sub-Saharan Africa, new discoveries of oil, natural gas and mineral deposits have been making headlines every other week it seems. When Ghana’s Jubilee oil field hits peak production in 2013, it will produce 120,000 barrels a day. Uganda’s Lake Albert Rift Basin fields could potentially produce even greater quantities. Billions of dollars a year could flow into Mozambique and Tanzania thanks to natural gas findings. And in Sierra Leone, mining iron ore in Tonkolili could boost GDP by a remarkable 25 percent in 2012.
My strong hope is that all the people living in these resource-rich African countries also get to share in this new oil and mineral wealth. So far, with one of few exceptions being Botswana, natural resources haven’t always improved the lives of people and their families. From what I see on my constant travels to the continent, economic growth in most resource-rich countries is not automatically translating into better health, education, and other key services for poor people.
Many resource-rich countries tend to gravitate towards the bottom of the global Human Development Index, which is a composite measure of life expectancy, education and income.
One strikingly effective way to make sure that all people, especially the poorest, share in the new minerals prosperity is through safety nets and social protection programs. These are designed to protect vulnerable families and promote job opportunities among poor people who are able to work. This in turn makes communities stronger and more secure, while reducing painful inequalities between people.
Social protection programs are already central to poverty-fighting, higher growth national strategies across Africa, and have played a significant role reducing chronic poverty and helping families become more resilient in the face of setbacks such as unemployment, sudden illness, or natural disasters such as droughts or floods. These programs have also allowed families to invest in more livestock or grow more food, and increase their earnings.
- Labor and Social Protection
- Social Development
- Agriculture and Rural Development
- Sub-Saharan Africa
- social safety nets
- social protection
- Human Development Index
- cash transfers
At a fishing enclave called Baie des Anges on Guinea Conakry's Atlantic coast, the country's development challenges are laid bare. In this make-shift settlement shrouded with blue tarpaulins and weighted down with stones and old tires, families battle the constant threat of flooding while they struggle to make a living from fish they smoke on cinder-block stoves. For the poor people of Guinea, better times can't come fast enough.
The statistics are tough to read. Here in Guinea, it rains for six months a year and yet drinking water is hard to find. The country has some of the world’s largest deposits of bauxite and iron ore, and still one in two people lives in grinding poverty. And it’s getting worse. The poverty rate has jumped from 53% of the population in 2007 to more than 55% in 2012. Blessed with some of Africa’s most significant agricultural and hydro-electric potential, few homes outside downtown Conakry have power at night unless they run generators; and food is often in short supply.
I joined the World Bank’s Vice President for Africa, Makhtar Diop, on a recent trip to Guinea where he held development talks with the President, Professor Alpha Condé, the Prime Minister, Mohamed Said Fofana, Cabinet Ministers, and local business leaders. In his discussions Diop was optimistic about the country’s development future and its potential to tackle its energy shortages, boost its agriculture production, and use its rich mining resources to transform the economy and development prospects of some of Africa's poorest people.