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Walking Through a Tightrope: The Challenge of Economic Growth and Poverty in Africa

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T h e J o u r n a l o f D e v e l o p i n g A r e a s
Volume 52 No. 1 Winter 2018
WALKING THROUGH A TIGHTROPE:
THE CHALLENGE OF ECONOMIC GROWTH
AND POVERTY IN AFRICA
Isaac B. Oluwatayo
University of Limpopo, South Africa
Ayodeji O. Ojo
University of Ibadan, Nigeria
ABSTRACT
Economic growth and poverty reduction now take the centre stage in most global policy discourse.
This is coming at a time that the Sustainable Development Goals (SDGs) are fast gaining global
relevance. Africa has witnessed the highest but non-inclusive level of growth in the last decade
because the continent still grapples with high unemployment rate especially among the youths. This
paper therefore examines some drivers of and constraints to growth and poverty reduction in Africa.
The paper focused on Africa by using secondary data sourced from different such as the United
Nations Development Programme (UNDP), Transparency International (TI), Institute of
Economics and Peace (IEP) and National Bureau of Statistics (NBS) reports and Annual Abstract
of Statistics. Analytical methods employed were mainly descriptive statistics and comparative
statistics. Findings showed that economic growth recorded in the continent is a ‘jobless’ one
advancing inequality and poverty. More so, 75 percent of countries with low human development
are in Africa with the continent’s consistent economic growth imparting insignificantly on the
livelihoods of the people. In fact, 27 out of 54 African countries were reported to have GDP of less
than $USD 2000 per capita. GDP growth in sub-Saharan Africa was estimated at 4.9 percent in
2013 and this increased to 5.3 percent in 2014 and further estimated to rise to 5.5 percent in 2015.
The fight against inequality, poverty and unemployment is tantamount to aiming a moving target.
Youth unemployment remains a component of Africa’s growth owing to persistent low productivity
and underemployment in the informal sector. The resultant implication of this is manifested
through persistent inequality, poverty, armed conflict and unchecked migration of young people to
industrialised nations in search of the non-existing livelihood opportunities. This paper therefore
recommends increased and monitored investments in critical infrastructural facilities. There is a
need for multilevel and multinational partnership in the fight against corruption and social conflict
to attract foreign direct investment. Investment in social security programmes will also assist the
poor and vulnerable people in the continent.
JEL Classifications: F63, I31, I38, J13, N37, O55
Keywords: Africa, Change, Economic growth, Poverty, Youth unemployment
Corresponding Author’s Email Address: isaac.oluwatayo@ul.ac.za
INTRODUCTION
Africa is the second most populous and second largest continent in the world. The
continent is endowed with human and natural resources (AFDB et al., 2015). Africa has a
population of 1.033billion people with youths constituting majority of the population
(World Population Review, 2014). The average annual growth of real output increased
60
from 1.8 percent in the 1980-1989 periods to 2.6 percent in 1990-2000 and 5.3 percent
inthe period 2000-2010 (UNCTAD, 2014). The problem of income inequality is a great
constraint underlying inclusive growth in sub-Saharan Africa (AFDB et al., 2015). The
task of achieving economic growth remains the central component of most development
agenda. According to Ogunlela (2012), the health of an economy can be ascertained from
the answers to these three questions which are; What is the state of poverty? What is the
unemployment situation? What is happening to inequality? When there is a sustained
decrease in all of these, development results. However, if one or two of this central
problems increase, the economy is not developing even if per capita income increase in
multiples.
Economic growth is the expansion in the production and marketing of good and
services in an economy owing to technological advancements within a year. Economic
growth sustained over time is referred to as economic development. A change is
departure from the obtainable to the desirable. The literature is unanimous on the
economic growth in Africa. However, inquiry into the nature of economic growth shows
that growth in Africa co-move with poverty, youth unemployment and inequality (Blanke
et al., 2013). In fact, the high inequality undermines growth elasticity of poverty
estimated at -0.7 compared to -2.0 in the rest of the developing world excluding China
thereby reducing the prospects of broad-based growth (WEF, 2013).
REALITIES OF THE AFRICAN ECONOMY
The performance of Africa in the realisation of the Millennium Development Goals
(MDGs) has not been particularly encouraging (UNDP, 2014, AFDB et al., 2015).
However, there are significant improvements in the area of universal primary education
access, combating Human Immune Deficiency Virus and Acquired Immunodeficiency
Syndrome (HIV/AIDs), Tuberculosis and other diseases. The problem of extreme hunger,
poverty, unemployment and inequality remained pervasive in the last decade (UNCTAD,
2014). The tale of economic growth in Africa is a mix of good and bad outcomes. This
is attributable to the differences in economic outcomes across countries (AFDB et al.,
2015). The constraints to broad-based economic growth have been traced to corruption,
debt relief and donor aids, insecurity and other negative externalities in Africa. The youth
population is growing faster than the available opportunities. For instance, in Nigeria and
Uganda an estimated half of the population is under the age of 15. Meanwhile, 69 percent
(33 out of 48) Least Developed Countries (LDCs) of the world and 75 percent of the
countries with low human development are in Africa (Sippel et al., 2011; AFDB et al.,
2015). Again, the region has the highest birth rates in the world. In fact, it is estimated
that the number of people in sub-Saharan Africa (SSA) may double by the end of 2050
and quadruple by the end of 2100 (Sippel et al., 2011). The demographic dividend in
Africa has not been harnessed in terms of the dominance of youths. This is because
majority of the youths are unemployed consequently compromising the security status of
the continent.
Africa manages to experience the highest economic growth globally despite the
challenges. In fact, GDP growth in sub-Saharan Africa was estimated at 4.9 percent in
2013, increased to 5.3 percent in 2014 and projected to rise by 5.5 percent in 2015 (AP,
61
2013; AFDB et al., 2015). Foreign Direct Investments (FDI) has skyrocketed by 7 folds
in one decade. The service sector, agriculture, building industry and manufacturing
industry remain the highest employer of African labour force. The service sector is the
most important driver of Africa’s growth with about 47 percent GDP contribution as
against 37 percent for industry and 16 percent for agriculture between 2000 and 2011
(UNCTAD, 2014). Economic growth is materialising in countries like Ghana,
Mozambique, Namibia and South Africa. Conversely, Somalia, Liberia and Eritrea has
not experienced economic breakthrough over time. This implies differences in the
economic outcomes across African countries.
The African business environment is still unfavorable compared to other
continents despite sustained economic growth. Transport costs still rank among the
highest in the world (AFDB et al., 2013). The share of manufacturing in total value added
fell from 13 percent in 1990 to 12 percent in 2000 and 10 percent in 2011 which depicts
deindustrialization (UNCTAD, 2014).
African economic growth though consistent over the years have imparted
insignificantly on the livelihoods of the people. In terms of stage of development, 27 out
of 54 African countries have GDP less than $USD 2000 per capita. They include Benin,
Burkina Faso, Burundi, Cameroon, Chad, Cote d’Ivoire, Ethiopia, Ghana, Nigeria,
Senegal etc. This shows about half of the African economies are at the lowest stage of
development (WEF, 2013). The medium stage of development ($USD 3000 to $USD
9000 GDP per capita) level consists of Cape Verde, Mauritius, Morocco, South Africa
and Swaziland.
However, there is no African country in the high/third stage of development
where GDP per capita is greater than $USD 17, 000. Africa accounts for 14 out of 20
lowest-ranked economies in terms of Global Competitiveness Index. African ranks
lowest in Global Competitiveness Index. The undesirable properties of the African
economy will be further deepened by increased urbanization as 41 percent of African
population lives in cities (Deloitte, 2014). This is projected to increase by 1 percent every
two years. This will increase pressure on the inadequate infrastructure in African cities if
unchecked (WEF, 2013).
Youth unemployment remains a component of Africa’s growth owing to
persistent low productivity and underemployment in the informal sector. Africa has the
highest youth (15-24years) population of 200 million and it is projected to increase by
200 percent by 2045 (ACET, 2014). Again, about 59 percent of the youths (20-24 years)
are projected to have had secondary education in 2030 compared with current 42 percent
(Blanke et al., 2013; ACET, 2014). Meanwhile, the private sector meant to employ the
youth face harsh economic conditions. Private companies now downsize rather than
employ. Thus, government employs a sizeable number of the youths. However, there is a
limit to what the government can employ. The government employs about 40 percent In
South Africa, Nigeria and Tanzania (Blanke et al., 2013). There are about 1.5 million
young people in Egypt while private organisations can only employ 600,000 people.
Similarly, South Africa has about 3 million young people not in employment, education
or training and 600,000 unemployed youths meant to fill 800,000 vacancies (Blanke et al.,
2013). Recent studies indicate a minimum of 7 percent annual growth rate and
investment rate of 25 percent of Gross Domestic Product (GDP) on infrastructure is
62
needed to reduce poverty significantly in Africa (Foster, 2008; WEF, 2013). Africa
currently invests 18 percent (which is below the 25 percent benchmark) and the continent
has not achieved 7 percent growth rate (WEF, 2013). Therefore, the reason poverty
reduction remains a shifting target is not far-fetched. Currently, $USD 45 billion is being
invested on infrastructure in Africa as against the $USD 93 billion required. This implies
there is a deficit of $USD 50 billion annually if Africa must achieve her lofty
developmental goals (UNCTAD, 2014).
Again, recent estimates attest to the fact that Africa has the highest income
poverty headcount in the world. In fact about 50.9 percent of the people are poor using
the income poverty headcount approach and about 36 percent are near income poverty.
Again, 59.6 percent of the people in sub-Saharan Africa are multidimensionally poor (see
Table 1). This implies Africa has a lot of work to do in combating poverty.
TABLE 1: INCOME AND MULTIDIMENSIONAL POVERTY BY
REGION
Region
Number
of
Countries
in the
Sample
Income
Poverty
Head
Count
Near
Income
Poverty
Number
of
Countries
in the
Sample
Multidimensional
Poverty
Headcount
Intensity of
Deprivation
Near
Multidimensional
Poverty
Arab
States
10
6.5
36.4
9
15.5
48.4
8.7
East Asia
Pacific
11
12.7
25.1
10
6.4
44.7
16.2
Europe
and
Central
Asia
15
1.4
6.0
15
1.8
37.3
4.5
Latin
America
and the
Caribbean
20
5.7
7.0
14
6.7
42.8
9.5
South
Asia
8
30.6
44.4
7
53.4
50.8
17.9
Sub-
Saharan
Africa
40
50.9
27.8
36
59.6
55.0
16.2
Source: (UNDP, 2014)
CONSTRAINTS TO GROWTH IN AFRICAN COUNTRIES
There are many constraints to growth in the continent of Africa and the list is endless
ranging from man-induced constraints to natural constraints. Few of the notable ones are
discussed below.
Infrastructure Deficit
Infrastructure deficit is an underlying constraint to broad-based economic growth in
Africa (Foster and Pushak, 2011; World Bank, 2013). This is because infrastructure
deficit renders businesses particularly unattractive and it depresses firm productivity by
63
around 40 percent (Escribano et al., 2008; Foster, 2008). The continent’s largest
infrastructure deficit occurs in the private sector (World Bank, 2013). The generation
capacity and electricity consumption or security of supply is inadequate. In fact, 48
countries of sub-Saharan Africa (with a total population of 800 million) have the same
level of power generation with Spain (with a population of 45 million people) (Foster,
2008; Mbekeni, 2013). The annual power consumption in Africa is estimated at
124kilowatt hours per capita and it is declining. This is 10 percent of consumption
elsewhere in the developing world. The power consumption is just enough to power 100
watt light bulb per person for 3 hours a day (Foster, 2008). The persistent power outages
account for 5 percent loss in sales of African firms and 20 percent for informal sector
firms unable to run on alternative power generating sets (Foster, 2008). More than 30
African countries experience power outages and frequent interruptions to service. This
can be linked to climate change impacts materializing through droughts as most African
countries rely on hydroelectric power. Africa loses about 12.5 percent production time to
power outages. The continental road freight cost (4 times) more than other continents;
power costs 14 US cents per kw/hr as against 5-10 US cents (Mbekeni, 2013).
Africa is progressing in terms of Information and Communication Technology
(ICT) compared to other parts of the world. However, Africa remains the world’s most
under-penetrated region with subscriber growth at nearly 12 percent (GSMA, 2015). Sub-
Saharan Africa has the lowest mobile internet subscriber penetration of 20 percent which
falls below the 33 percent global average. This implies Africa has a lot of work to do in
building a techno-driven economic growth while promoting financial inclusion in the
process (Oluwatayo, 2014; GSMA, 2015). The roads and weak rail network in Africa
leave more to be desired.
Africa has abundant water resources but majority of the people do not have
access to potable water. This constitutes a paradox of lack in the midst of plenty. This is
because of the absence of water storage and irrigation technology. The continent
experiences high level of hydrological variability with fluctuations in precipitation across
areas, across sectors and over time (Grey and Sadoff, 2008). This variability is expected
to be exacerbated due to climate change in the nearest future.
The high cost attached to the inadequate infrastructure constrains access in
Africa. In fact, power tariffs, water tariffs, road freight tariffs, international telephony and
internet dial-up service are higher in Africa compared to other developing regions (Foster,
2008). For instance, power tariffs range from 0.02 to 0.45 $USD/Kwh in sub-Saharan
Africa compared to 0.05-0.1 $USD/Kwh in other developing regions. The water tariffs
range between 0.86 and 6.56 US$/m3 in the region compared to 0.03-0.6 US$/m3 in other
developing countries (Foster, 2008). This indicates infrastructure deficit has been further
compounded by high prices pushing access beyond the reach of the poor. Meanwhile,
sub-Saharan Africa is the world’s poorest region with the highest headcount rate of 48
percent (World Bank, 2015).
The Challenge of Corruption
Corruption is a phenomenon difficult to define and measure (Idachaba, 2014). Apart from
the fact that there are dissenting views on the definition of corruption, the act is done
secretly and off-book. The World Bank defines corruption as the abuse of public power
64
for private interest (Ajodo-Adebanjoko and Okorie, 2014). Corruption is a societal-ill
with political, economic, social and environmental implications (Idachaba, 2014). The
Asian Development Bank defines corruption as the behavior on the part of the officials in
the public and private sectors in which they improperly and unlawfully enrich themselves
and/ or those close to them or induce others to do so by misusing the position in which
they are placed (OECD, 2008). Whichever way corruption is defined, it is a contagious
problem in Africa (Ajodo-Adebanjoko and Okorie, 2014). Corruption has been an
integral part of human activities from time immemorial (Oye, 2013). In 2014, 175
countries were captured in the 2014 Corruption Perception Index (CPI). The average
score for sub-Saharan Africa is the lowest at 33 and lesser than the global average of 43.
The highest is Botswana with 63 and the lowest is Somalia with a score of 8. In fact, 92
percent of African countries scored below 50 out 100 in the CPI (TI, 2015). The bottom
position in the CPI (as shown in Table 2) is occupied by Somalia, Sudan, South Sudan,
Libya, Eritrea, Guinea Bissau, Angola, Burundi, and Zimbabwe. There is no African
country in the first 40 positions in the Corruption Perception Index. This implies
corruption is pervasive and more concentrated in Africa.
TABLE 2: TOP 10 CORRUPT AFRICAN COUNTRIES
Number
Score
Position
1
8/100
174/175
2
11/100
173/175
3
15/100
171/175
4
18/100
166/175
5
18/100
166/175
6
19/100
161/175
7
19/100
161/175
8
20/100
159/175
9
21/100
156/175
10
22/100
154/175
Source: Transparency International (2015).
The African Union estimates that corruption costs in Africa are above $US 148 billion
dollars annually (Uneke, 2010). The corruption of leaders in Africa has resulted in
unquantifiable welfare losses (Idachaba, 2014). The people are left unaided in the fight
against poverty, unemployment and climate change-induced problems (floods, droughts,
malaria etc.). Corruption increases the cost of doing business, makes expected returns to
capital uncertain and reduces the attractiveness of African economy (Baliamoune-Lutz
and Ndikumana, 2007; Oye, 2013). Corruption influences the quantity of productive
public investment such that public resources are mobilized inefficiently and most times
towards unproductive activities.
65
Insecurity and Economic Growth in Africa
Insecurity is a global phenomenon with African dimensions. Insecurity undermines
economic development in Africa. This is especially so, for countries with youth
dominance in their population. The huge army of unemployed youths provides efficient
and effective labour force for violent uprisings, armed robbery, electoral violence,
kidnapping and other activities disrupting law and order. It is very worrisome that Nigeria
ranks first globally for its kidnapping risks accounting for 25 percent of the world
incidents (Burns and Wilcox, 2013). Similarly, Libya clinched the fourth position among
countries where kidnapping took place in 2014 (NYA, 2015). In fact, between January
and December 2014, Nigeria accounted for 15 percent of reported kidnap cases globally.
Libya and Sudan accounted for 6 percent and 3 percent respectively in the same period
(NYA, 2015).
Apart from the fact that the poor security situation has led to unquantifiable
welfare losses, businesses cannot grow sustainably hence the exclusive economic growth.
The emerging dimension to insecurity in Africa is terrorism premised on religious and
economic demands. Terrorism is a serious threat to global peace and development with
varying severity among countries. Meanwhile, terrorism has been conceptualised by IEP
(2015) as any event that satisfies at least two of the three conditions for terrorism. The
first is, the violent act meant for the achievement of political, economic, religious or
social objectives. The second is the violent act including evidence of an intention to
coerce, intimidate or convey some other messages to a larger audience (audiences) other
than the immediate victims. The third condition is met when the violent act was outside
the precepts of international humanitarian law.
Globally, 82 percent of the fatalities resulting from terrorist attacks in 2013,
occurred in five countries-Iraq, Afghanistan, Pakistan, Nigeria and Syria (IEP, 2015). The
bulk of the recorded deaths from terrorism in 2013 resulted from the activities of four
terrorist groups-ISIL, Bokoharam, the Taliban and al-Qa’ida and its affiliates (NYA,
2015; IEP, 2015). Currently, 7 out of 13 countries reported by IEP (2015) as being at risk
of increased terrorist activity are in Africa. The countries are Angola, Burundi, Central
African Republic, Cote d’Ivoire, Ethiopia, Mali and Uganda (NYA, 2015; IEP, 2015).
Nigeria recorded the fourth highest number of deaths (10.2 percent) from terrorism. As
shown in Table 3, 11 out of 30 countries occupying the top 30 positions in the 2014
Global Terrorism Index (GTI) are in Africa (IEP, 2015). This implies Africa is currently
plagued by terrorism hence the need for concerted efforts to stem the tide.
TABLE 3: TOP AFRICAN COUNTRIES ON THE GLOBAL
TERRORISM INDEX
Serial Number
Country
Global Rank
Score
1
Nigeria
4th
8.58
2
Somalia
7th
7.41
3
Kenya
12th
6.58
4
Egypt
13th
6.5
5
Libya
15th
6.25
6
Democratic Rep of Congo
18th
5.9
7
Sudan
19th
5.77
66
8
South Sudan
20th
5.6
9
Algeria
21st
5.52
10
Mali
22nd
5.29
11
Central African Republic
26th
5.19
Source: IEP (2015)
Ohiwerei (2014) reported activities of terrorist groups have resulted in high drop-out rates
of children from schools. He cited the example of about 7000 students forced out of
school with 14 schools closed down in Borno State, Nigeria. Soyinka (2014) reported
terrorism in Nigeria and by extension Africa is a product of unabated impunity, injustice
and corruption. It therefore follows that the destruction of livelihoods and infrastructure
based on religious, economic and social agitations will continue to make poverty
sustainable.
Dependence on Primary Products
Despite the huge endowments in terms of mineral resources, Africa benefits least from
trade. The African economy is import-dependent as it produces primary products and
exports raw materials to developed countries. Africa then imports the finished goods with
balance of trade tilting towards the industrialised world (Lee, 2012). Africa’s exports are
mainly primary products consisting of primary agricultural commodities, natural
resources and minerals that are extremely vulnerable to fluctuating prices and
environmental tariffs (Mutenyo, 2011). For instance, 94 percent in Angola are in crude
oil, in Burundi, 72 percent of exports are in coffee, in Equatorial Guinea, 99 percent of
exports are in oil and gas, 55 percent of exports in Malawi are in Tobacco, in Nigeria, 82
percent of exports are in crude petroleum, in Sierra Leone, 90 percent of exports are in
diamonds and in Zambia 70 percent of exports are in copper (Mutenyo, 2011).
Agriculture is the mainstay of most economies in Africa in terms of employment. This is
because agriculture employs about 60 percent of the active labour force in Africa (AGRA,
2014) .In terms of trade, African farmers are victims of dumping. The competition from
highly subsidized agriculture in advanced countries inhibits agricultural growth and trade
potentials in Africa (Oluwatayo and Ojo, 2016). Agriculture being a very important
sector in Africa remains underdeveloped due to climate change impacts, low level of
technology, conflicting government policies and poor market linkages among many
others. The continent is plagued by unstable food prices (World Bank, 2013) and soaring
cost of food imports.
CONCLUSIONS AND POLICY RECOMMENDATIONS
Africa is a land of untapped potentials in terms of human and material resource
endowments. Despite the rich mineral deposit in the continent, it is very appalling to
know that the inhabitants of a number of countries in Africa still grapple with the
problem of hunger, poverty and either underemployment or unemployment. The
continent is blessed but unfortunately the continent has the highest number of youths in
the world with both positive and negative dimensions. If engaged the youths can provide
the needed productive labour force thereby putting the economy on a sound footing
67
considering the fact the youths are the energy needed to drive the much clamored
indistrialisation.
Conversely, unemployed youths are efficient and readily available tool in the promotion
of violence and insecurity. The current wave of armed conflict and insurgency in many of
the states in Africa alluded to this problem. Africa has witnessed consistent economic
growth in the last decade. However, the poverty situation and inequality have not
improved. African growth is constrained by insecurity, corruption, infrastructure deficit
and heavy reliance on primary products. The implication of the aforementioned challenge
is that the growth in the continent is non-inclusive, advancing polarisation and rising
inequality among different segments of the society.
Policy Recommendations
The constraints to broad-based growth in Africa have been X-rayed and discussed in this
paper and based on the foregoing, the following recommendations are made:
(1) Government and private sector should increase and monitor investments in
critical infrastructure (road, power, water etc) so as to attract the much needed
foreign direct investment (FDI) into the continent.
(2) There is the need for multilevel and multinational partnerships/collaborations in
the fight against corruption and terrorism in Africa. The developed world should
collaborate and not recolonize Africa in the struggle.
(3) There is also the need to design sustainable social security programmes for the
chronic poor by African government and humanitarian agencies.
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Reproduced with permission of copyright owner. Further reproduction
prohibited without permission.
... What is often not discussed widely, both in previous conversations and now in the ongoing pandemic, is the disproportionate impact the COVID-19 pandemic will have on the world's poorest countries and populations. These countries, mostly in Africa, struggle with preexisting challenges, including economic dependency based on aid from western nations and a lack of health care structures to overcome a pandemic (Oluwatayo & Ojo, 2018). ...
... In the coming years, as policy analysts, historians, other academic researchers, and social activists analyze the impact of COVID-19 on marginalized communities living in the West and developing nations worldwide, the ongoing and alarming economic disparities and implications will be explained (Oluwatayo & Ojo, 2018;Parker, 2002). It is a fact that health and economic inequalities were visible before the COVID-19 pandemic for these marginalized populations (Alliance of Healthier Communities, 2020; Andersen & Collins, 2013;Bowden & Cain, 2020;Brown et al., 2000;De Maio, 2010;Gates, 2015). ...
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In 2020 a global health pandemic began causing significant life challenges for most populations around the world. For vulnerable groups in Canada, like newcomers and refugees, the COVID19 global health crisis amplified pre-existing inequalities and barriers. Given the previous understandings of racial inequality in Canada, we began an online discussion with a group of social service providers to explore how newcomers and refugees are impacted by the social lockdowns, physical distance, and the closures of many services. As a result, we collected informative stories that tell how the pandemic disproportionately and distinctly impact newcomers and refugees, resulting in new challenges finding employment, access to educational services for their families, and maintaining an adequate social and spiritual connection. We also found out how community service provision drastically changed throughout the COVID-19 pandemic, resulting in additional challenges and barriers for marginalized communities.
... The urban population growth and the governance climate are significant in the models (Bruckner, 2012;Onjala and K'Akumu, 2016;Oluwatayo and Ojo, 2018). Usually, economic growth follows the population increase and the extension of urban areas. ...
Article
The race toward inclusive development has prompted the researchers to reconsider the drivers of economic growth in Africa in view of the term for achieving the Sustainable Development Goals (SDGs). The purpose of this research note is an exploration of the determinants of African growth after analysing a recent empirical literature to select the explicative variables. Therefore, we have examined growth of the 54 African countries using the Generalised Method of Moments (GMM) dynamic system estimators, which previous studies have confirmed to be suitable for growth analyses. The coefficients within the models remain stable even after controlling the effects of Sub-Saharan African countries and Lions ones. As a data source, the main international organisations (UN, WB, IMF) have been used. The covered period is 2010-2019, where the data are more complete. We have used the real per-capita GDP as a dependent variable. Therefore, our findings show the significant variables are affecting African growth. A more developed institutional and business environment should to lead a long-run sustainable growth, but this depends on a sound governance.
... The urban population growth and the governance climate are significant in the models (Bruckner, 2012;Onjala and K'Akumu, 2016;Oluwatayo and Ojo, 2018). Usually, economic growth follows the population increase and the extension of urban areas. ...
Article
The race toward inclusive development has prompted the researchers to reconsider the drivers of economic growth in Africa in view of the term for achieving the Sustainable Development Goals (SDGs). The study examined growth of the 54 African countries using the Generalised Method of Moments (GMM) dynamic system estimators, which previous studies have confirmed to be suitable for growth analyses. The coefficients within the models remain stable even after controlling the effects of Sub-Saharan African countries and Lions ones. As a data source, the main international organisations (UN, WB, IMF) have been used. The covered period is 2010-2019, where the data are more complete. We have used the real per-capita GDP as a dependent variable. The purpose of this research note is an exploration of the determinants of African growth after analysing the recent empirical literature. Our findings show the significant variables are affecting African growth. A more developed institutional and business environment in African countries can to lead a long-run sustainable growth, but this depends on a sound governance.
... This situation poses unique challenges for economic growth and poverty reduction with specific reference to the Sustainable Development Goal 8 (Target 8.6) that envisaged the reduction of youth not in employment, education, or training (NEET) (3,4). Neoliberal reforms and economic growth built on the aid-driven initiatives undermine domestic productivity and employability as in the case of Uganda (5). ...
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Youth unemployment reflects the lack of economic growth and prosperity for many nations in sub-Saharan Africa where the average age of the population is estimated to be 24 years in 2050. The study generates insights informed by preliminary findings of an ambitious 6-month government-funded “youth employment program” in South Africa. The paper reports on qualitative data emanating from two field visits per organization providing the baseline of this national project as the researcher had been tasked to develop the monitoring, evaluation, and learning (MEL) system. About 4,000 of this population are from Special Olympics and comprise of youth with complex needs, while the baseline focus on 45 youth as part of the unified leadership initiative (partnering with a mainstream individual). The MEL system allows for a mixed-method approach, but the paper draws on narrative data obtained during field visits where 10 managers were interviewed and 47 youth interns (42.5% men and 57.5% women) took part in focus group discussions. The interview and focus group questions explored their work-related histories and profiles, current involvement with a structured program, experiences, perceptions, expectations, and pragmatic recommendations. Emerging themes and analysis report five main themes that refer to (i) personal employment histories, (ii) local embeddedness, (iii) a typology of work, (iv) program benefits, and (v) enablers and goal setting. Contextual realities shaped the agency of all research participants, but promising results show positive outcomes of soft skills associated with the level of employability and job-seeking strategies.
... In terms of its connotation, poverty mainly refers to resource shortage, low income, social exclusion, lack of capacity and deprivation of rights (Duraiappah, 1998;Copestake and Camfield, 2010;. Therefore, poverty is often accompanied by a series of problems, such as hunger, disease, unemployment, terrorism and social conflict (Brainard and Chollet, 2007;Oluwatayo and Ojo, 2018;Ujunwa et al., 2019;Guo and Wang, 2021), which seriously restrict social and economic development in poverty-stricken areas, leading to more people falling into poverty and forming a vicious circle of poverty (Matsuyama, 2010). Against this background, poverty has long been the focus of attention all over the world, and reducing or eradicating poverty has become the common ideal and mission of mankind. ...
Article
In 2020, the decisive victory of building a moderately well-off society in all aspects means that absolute poverty in rural China has been completely eliminated. Consolidating and expanding the achievements of poverty alleviation and establishing a long-term mechanism to solve relative poverty have become key issues in high-quality development of underdeveloped areas. In this study, human-earth system is employed to analyze the element composition, structural organization and functional state of underdeveloped areas. The results show that poverty in underdeveloped areas stems from the lack of the coupling and coordinating mechanism among human, economic, resource and environmental elements, which is not conducive to transforming the ecological advantages into the advantages of regional development. In the antipoverty stage, underdeveloped areas innovate the human-earth coupling and coordinating mechanism through a series of targeted measures, promote the organic combination of poverty alleviation, ecological conservation and sustainable development, and boost the transformation of regional development and the increase of farmers’ incomes. Focusing on the 14th Five-year Plan (2021-2025) and the long-term goal of 2035, governments in underdeveloped areas should make full use of the policy support to explore scientific methods of modern governance and sustainable development. In particular, it is necessary to practice the concept that “clear waters and lush mountains are invaluable assets” and take the road of the ecologicalization of industry and the industrialization of ecology by establishing a policy system of “green land”, “green people”, “green industry” and “green right”, thus building an endogenous growth mechanism of sustainable poverty alleviation and green development in China’s underdeveloped areas.
... There is a high reliance on traditional, complementary, and alternative medicines in Africa [11,14]. Deficient healthcare systems in Africa have resulted in high preventable morbidity and mortality, creating a vicious cycle of poverty [15][16][17]. These factors, put together, led to the projections that the COVID-19 pandemic could be challenging to keep under control in Africa and could cause a substantial socioeconomic burden if allowed to spread [18]. ...
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Background The novel coronavirus disease (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) was first reported in China and later spread rapidly to other parts of the world, including Africa. Africa was projected to be devastated by COVID-19. There is currently limited data regarding regional predictors of mortality among patients with COVID-19. This study aimed to evaluate the independent risk factors associated with mortality among patients with COVID-19 in Africa.MethodsA total of 1028 confirmed cases of COVID-19 from Africa with definite survival outcomes were identified retrospectively from an open-access individual-level worldwide COVID-19 database. The live version of the dataset is available at https://github.com/beoutbreakprepared/nCoV2019. Multivariable logistic regression was conducted to determine the risk factors that independently predict mortality among patients with COVID-19 in Africa.ResultsOf the 1028 cases included in study, 432 (42.0%) were females with a median (interquartile range, IQR) age of 50 (24) years. Older age (adjusted odds ratio {aOR} 1.06; [95% confidence intervals {95% CI}, 1.04–1.08]), presence of chronic disease (aOR 9.63; [95% CI, 3.84–24.15]), travel history (aOR 2.44; [95% CI, 1.26–4.72]), as well as locations of Central Africa (aOR 0.14; [95% CI, 0.03–0.72]) and West Africa (aOR 0.12; [95% CI, 0.04–0.32]) were identified as the independent risk factors significantly associated with increased mortality among the patients with COVID-19.Conclusions The COVID-19 pandemic is evolving gradually in Africa. Among patients with COVID-19 in Africa, older age, presence of chronic disease, travel history, and the locations of Central Africa and West Africa were associated with increased mortality. A regional response should prioritize strategies that will protect these populations. Also, conducting a further in-depth study could provide more insights into additional factors predictive of mortality in COVID-19 patients.
... This is proven in the study conducted by Adamkovic and Martoncik (2017) that someone who had low resources and lived in poverty was consistently forced to deal with stress and was always worried of his financial status. This is similar to what happened in some African countries, where the economic movement in the country is declining as poverty, unemployment, and inequality are rising (Oluwatayo and Ojo 2018). In fact, there are some other things also that messed up economic growth in Africa apart from poverty, such as infrastructure deficits, corruption, national security, and sole dependence on a source. ...
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This volume showcases selected conference papers addressing the sustainable future of ASEAN from the perspectives of business and social science disciplines. In addressing the 17 Sustainable Developments Goals (SDGs) envisioned by the United Nations in the domains of environment, health and well-being, posing potential means of reducing inequalities globally, the authors target specific issues and challenges confronting the fast-growing region of ASEAN and present suggestions for co-operation and commitment from governments, non-governmental organisations (NGOs) and society at large, in line with the ASEAN Vision 2020. Papers are selected from the 3rd International Conference on the Future of ASEAN (ICoFA) 2019, organised by Universiti Teknologi MARA in Malaysia, whose conference theme “Charting the Sustainable Future of ASEAN” enables intellectual discourse on sustainability issues from business and the social sciences, as well as science and technology. The selection of papers is published in two volumes, comprising scholarly and practical insights into sustainability in ASEAN. This first volume of papers from business and social science scholars will be of interest to researchers and policymakers interested in sustainability developments in the ASEAN region.
Chapter
Climate change is a global issue with social, political and economic dimensions. Climate change is the significant change in the average weather conditions of a geographical location within a period of 25 years and above. However, climate governance is a deliberate departure from climate change science to social and political dimensions of climate change. This involves viewing political and financial processes targeted at achieving environmental sustainability. Entrepreneurship that conforms to climate governance on the other hand involves businesses that strive within moral perpendicularity to improve the obtainable. This, therefore, excludes illegitimate, culturally unacceptable and environmentally unfriendly businesses such as product counterfeiting and black marketing, gas flaring and so on. Entrepreneurship within the climate governance framework allows business entities to profit, create jobs, and build business empires, while partnerships are struck in mitigating and adapting to climate change. Climate governance is constrained by slow pace of mitigation in developing countries and its applicability to communities fighting poverty and other welfare issues. There are many opportunities inherent in climate governance that entrepreneurs can harness. This includes performing exchange marketing function for caps allocated to covered emitters and low-emitting technologies. Meanwhile, entrepreneurial development is impressive in developed countries like the United Kingdom, the United States, etc., while Africa continues to struggle with the concept. Entrepreneurial development in Africa is constrained by infrastructure deficits, inconsistent policy regime and corruption, among others. Environmental pollution and other problems are still on the increase in Nigeria. The successive governments have initiated policies towards climate governance, but more needs to be done. Generally, the Nigerian policy on climate change is silent on the specific roles of entrepreneurs in climate change mitigation and adaptation. It is, therefore, suggested that the government should put entrepreneurs at the centre of policy formulation. The existing legislations on climate change mitigation and resilience in Nigeria should also be enforced.KeywordsClimate governanceClimate policyEntrepreneurshipNigeriaResilience
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Despite having a middle-income status, many South African households are either already in or are about to fall into poverty. The income and wealth distribution in South Africa is among the most uneven in the world, and many households lack even the most basic access to healthcare, clean energy, and clean water. Although it has increased government spending, South Africa’s government has made significant steps to combat poverty and inequality and encourage economic growth. Understanding the connection between social investment, poverty, inequality, and economic growth is, therefore, necessary to comprehend the ambiguity that currently prevails. In order to analyze the effects of social investment on poverty and economic growth in South Africa between 1990 and 2020, this paper uses the cointegration technique. The cointegration estimates indicate that there is no correlation between social investment, poverty, inequality, and economic development. According to study findings, South Africa’s macroeconomic policies, which seem to be more urban-focused, need to be modified and redirected into inclusive policies with strict constraints to assure their implementation. The transformation of rural and township life will be aided by this plan.
Chapter
Poverty is one of the global issues that never has an ending due to pockets of poverty, and this subsequently has led to the issue of persistent poverty. Persistent poverty means poor people stay in poverty within a period of time. By using the three dimensions in Human Development Index (HDI), quantitative method had been used to seek the one that has an effect on poor people, making it hard to get out of poverty and leaving them in persistent poverty. Respondents for this study are the poor population who received financial aid from anti-poverty agencies. The results obtained show that among the three dimensions, standard of living/economy aspect had the highest ranking in the Friedman test. In the meantime, the statement under standard of living/economy also shows that poor people found it really hard to save some parts of their income for retirement and emergency due to lack of resources. It can be concluded that standard of living for poor people was the one that makes it difficult to get out of poverty, and as a result, they remain receiving financial aid from anti-poverty agencies for a long time.
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Banking services (mobile money services and platforms) in most countries today is no doubt technology driven. In Nigeria, for instance, the introduction of electronic banking has brought some advancements and complications to the ways and manners in which banking services are performed. In fact, the resultant effect of techno-driven (technologydriven) banking services on savings and borrowing patterns of the rural poor cannot be undermined. This paper relied on data collected through questionnaire from a random sample of 250 respondents from rural Southwest Nigeria. A descriptive analysis of the data revealed average age of those surveyed to be 52 years with a mean household size of 6 members. Respondents' distribution by gender showed there were more males (53.6%) than females with 38.8% and 61.2% of the former and the latter having no formal education. Data analysis on available and accessible techno-driven banking services revealed use of mobile phones and occasional transactions from the Automated Teller Machines (ATMs) as the most patronised. However, the result of probit model employed to ascertain drivers/enablers of technodriven banking services showed age, gender, household size, educational status, poverty level, power infrastructure and cooperative society membership as very important. While the coefficients of age, gender, educational status and cooperative society membership were significant and positive, those of household size, distance to banking facility, power infrastructure and poverty status were negative and significant. It is therefore, recommended that effort should be intensified at capacity building of respondents in order to catch up with the growing trend in technology advancement in the banking sector. Also, improvement in the dilapidated state of road and power and infrastructures in the study area is very crucial to effectively harness the benefit of mobile money services.
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Infrastructure made a net contribution of around one percentage point to Nigeria's improved per capita growth performance in recent years, in spite of the fact that unreliable power supplies held growth back. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by around 4 percentage points. Among its African peers, Nigeria has relatively advanced power, road, rail, and ICT networks that cover the national territory quite extensively. Extensive reforms are ongoing in the power, ports, ICT, and domestic air transport sectors. But challenges persist. The power sector's operational efficiency and cost recovery has been among the worst in Africa, supplying about half of what is required, with subsequent social costs of about 3.7 percent of GDP. The water and sanitation sector has inefficient operations, with low and declining levels of piped water coverage. Irrigation development is also low relative to the country's substantial potential. In the transport sector, Nigeria's road networks are in poor condition from lack of maintenance, and the country has a poor record on air transport safety. Addressing Nigeria's infrastructure challenges will require sustained expenditure of almost $14.2 billion per year over the next decade, or about 12 percent of GDP. Nigeria already spends about $5.9 billion. It is well placed to raise the funds needed for infrastructure, given the strength of the national economy, abundant oil revenues, and efforts at electricity cost recovery and other improvements to operations and management.
Article
Regionalism, as defined in this paper, encompasses efforts by a group of nations to enhance their economic, political, social, or cultural interaction. Such efforts can take on different forms, including regional cooperation, market integration, development integration, and regional integration. African leaders have long envisaged regionalism
Article
The advent and advancement of ultrasound technology have proved to be invaluable tools in the assessment of the fetus while still in the intrauterine environment. Ultrasound has given and continues to give us fresh insights into many aspects of the developing human. The area of fetal growth and development is a difficult one. Our lack of knowledge of the basic controlling influences has inhibited investigations in this area, but ultrasound has at least allowed us to begin to scratch the surface of this complex subject. We can now obtain very useful clinical information that usually has excellent correlation with gestational age, fetal size, fetal structure, and fetal function. We are just now beginning to document the natural history of many fetal abnormalities. Undoubtedly, advances in our knowledge of genetics and molecular biology and continuing technologic advances in imaging techniques will provide fresh insights and allow us to continue to probe and unlock the mysteries of fetal growth and development.
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