africa

Africa at a Fork in the Road: Taking Off or Disappointment Once Again?
reduction strategy to complement the more conventional pro-poor growth strategy.
The former strategy differs from the latter in that the policy or institutional intervention
operates directly on reducing poverty and that this in turn helps remove some
of the constraints affecting the behavior of the poor, thus making it possible for the
poor to become more productive.
The three most fundamental elements of a desirable and sustainable inclusive
development strategy, within the context of SSA, appear to be: (a) the creation of
new stable jobs; (b) infrastructure investment in such social overhead capital projects
as rural (farm to market) roads, a road network linking better rural and urban
areas, schools, clinics, and dispensaries; and (c) the adoption of inclusive social
protection and labor institutions that are adapted to the prevailing conditions in SSA
and conducive to both poverty reduction and growth in production and productivity.
Africa is at a crossroads. Will the “African Renaissance” and “African Growth Miracle”
turn into robust and permanent features, or will the present growth spell collapse
under the resumption of extractive economic and political institutions and civil
conflicts? So far, albeit based on a relatively short period, there is some evidence
that the structure of growth has become more inclusive. Could these changes help
trigger an endogenous virtuous spiral? My guarded guess is in the affirmative but
only if African countries adopt appropriate development strategies including the
three elements mentioned above.
References
Acemoglu, Daron, and James A. Robinson, 2012. Why Nations Fail: The Origins of
Power, Prosperity, and Poverty. New York: Crown Business.
African Development Bank (AfDB), 2012. Briefing Notes for ADB’s Long-Term
Strategy. Tunis: AfDB.
Alderman, H., and R. Yemtsov, 2013. “How Can Safety Nets Contribute to Economic
Growth?” World Bank Policy Research Papers Series.
Bourguignon, F., 2004. “The Poverty-Growth-Inequality Triangle.” Paper presented
at the Indian Council for Research on International Economic Relations.
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