africa

Africa at a Fork in the Road: Taking Off or Disappointment Once Again?
measures. Clearly, for growth to be inclusive non-monetary dimensions of wellbeing
must improve as well. The UNDP’s Human Development Index (HDI) is a composite
index measuring average achievement in three basic dimensions of human development:
a long and healthy life, knowledge, and a decent standard of living. The
recent Human Development Report (UNDP, 2013) indicates that out of the world’s
14 best performers as measured by the annual growth rate of HDI between 2000
and 2013, 11 were in SSA. Starting from a very low baseline, many African countries
have enjoyed significant improvements in infant mortality and school enrollment.
In summary, the main conclusions that can be drawn from an evaluation of macroeconomic
performance in SSA since 2000 are: (a) economic growth, as measured
by GDP per capita, has accelerated to the extent that one can characterize it as a
quantum jump compared to the dismal pre-2000 performance; (b) extreme poverty
remains high but has significantly declined; (c) income inequality remains relatively
very high and persistent; (d) in many SSA countries there is evidence that human
development in terms of health and education has improved.
The tentative inference that can be drawn from the above trends is that the ongoing
growth spell is contributing to a more inclusive growth pattern.
5.3.2 Inter-sectoral, sectoral, and productivity performance
An increase in labor productivity is necessary for economic growth to occur. In
addition, for the structure of growth to be inclusive, the rise in productivity must be
spread widely among the labor force. Within the context of SSA, it is particularly
important that the labor productivity of the great majority of unskilled workers—poorly
endowed in human capital—rise to levels above subsistence.
Within an economy overall, labor productivity can increase in two ways. First, workers
can move from low-productivity jobs in sectors such as agriculture to more productive
jobs in other sectors such as manufacturing and services through the structural
transformation. Second, overall productivity can rise if within-sector productivity
rises, for example through capital investment and technical progress.
Next we review the evidence relating to how the nature of structural transformation
and the growth of within-sector productivity appear to have become more inclusive
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