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World Bank Document - Africa Infrastructure Knowledge Program

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The categories shown in map 1.2 are defined as follows:<br />

The Legacy of History 11<br />

Middle-income countries have GDP per capita in excess of $745 but<br />

less than $9,206. Examples include Cape Verde, Lesotho, and South<br />

<strong>Africa</strong> (<strong>World</strong> <strong>Bank</strong> 2010).<br />

Resource-rich countries are low-income countries whose behaviors are<br />

strongly affected by their endowment of natural resources (Collier<br />

and O’Connell 2006). These countries typically depend on minerals,<br />

petroleum, or both. A country is classified as resource rich if primary<br />

commodity rents exceed 10 percent of the GDP. South <strong>Africa</strong> is not<br />

classified as resource rich, using this criterion.<br />

Low-income, fragile states face particularly severe development challenges,<br />

such as weak governance, limited administrative capacity, violence,<br />

or the legacy of recent conflict. Countries that score less than<br />

3.2 on the <strong>World</strong> <strong>Bank</strong>’s Country Policy and Institutional Performance<br />

Assessment (WBI 2004) belong to this group. Some 14 <strong>Africa</strong>n countries<br />

are in this category.<br />

Low-income, nonfragile states are those that have GDP per capita<br />

below $745 and are neither resource rich nor fragile.<br />

Table 1.1 shows how all the countries in the study are categorized and<br />

also notes whether they are coastal or landlocked.<br />

The most significant feature of <strong>Africa</strong> is that it has a much larger proportion<br />

of low-income countries than the rest of the developing world.<br />

An important element of this poverty is that nearly one-third of <strong>Africa</strong>n<br />

countries are classified as low-income, fragile states that have recently suffered<br />

from major political and economic trauma. But even its resourcerich<br />

countries have an average GDP per capita that is only 70 percent of<br />

that of the lower-middle-income developing countries in the rest of the<br />

world (table 1.2).<br />

<strong>Africa</strong>n countries share some common economic features. Thirtyseven<br />

percent of their populations lives in cities, with little variation<br />

among the four country types. Agriculture accounts for about a third of<br />

the GDP, on average, again with relatively little variation among the<br />

country types. But other features are not shared so equally: for example,<br />

the share of land available for agriculture varies from a low of<br />

29 percent for the low-income, fragile states to 63 percent for the<br />

middle-income countries. The trade share of GDP ranges even more<br />

widely, from 120 percent for low-income countries to 39 percent for the<br />

low-income, fragile states (<strong>World</strong> <strong>Bank</strong> 2009). 2 Together with

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