At the same time, the vast majority of governments invest large sums in training programs, whether business training for entrepreneurs or vocational training for youth, with the goal of helping to increase incomes and opportunities.
For economists, it is borderline redundant to say that corruption has economic origins—classic and contemporary work has long held the belief that higher salaries are better for corruption. Due to the obvious difficulties of doing real policy reform in developing countries however, researchers and policy makers have seen little evidence that sheds light on this statement; especially in African countries where salaries are often low and where corruption is still a great concern.
The persistence of poverty and food insecurity on the African continent is a major developmental challenge, both for Africans and the international development community.
History shows that investments in agriculture can be a catalytic force in the fight against hunger, poverty and malnutrition and a well-performing farm economy can be an instrument for achieving sustained structural economic transformation. Agricultural growth was the precursor to industrial growth in Europe and, more recently through the Green Revolution, in large parts of Asia and Latin America. The Green Revolution bypassed Africa.
When I was elected President of the Republic of Ghana in 2000, agriculture was a mainstay of the nation’s economy, accounting for 35% of its GDP, 55% of employment and 75% of export revenues. But it was a lagging, orphan sector, suffering from decades of neglect and lack of investment. Ghana’s agriculture had sadly changed little from the kind practiced generations ago. Farmers were still eking out a living, tilling the land by hand, much like their ancestors.
The King Baudouin Foundation has just announced that it is accepting nominations for its 2014-2015 African Development Prize. The Prize awards innovative initiatives that help local communities take development into their own hands and that improve quality of life. The Prize is worth 150.000 Euros and is awarded every other year. Previous winners include women's rights advocate Bogaletch Gebre of Ethiopia and Dr.
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?