africa

Africa at a Fork in the Road: Taking Off or Disappointment Once Again?
into criminal activities, make women vulnerable to prostitution, and force children
into undesirable labor. Continued inequalities in outcome and access to opportunities
may result in civil unrest and violent backlash from people who are continually
deprived, derailing a sustainable growth process. This may create political unrest
and disrupt the social fabric and national integration.
Policies to promote inclusive growth focus on the rate and pattern of growth, which
must be addressed together because they are interlinked. Long-term sustainable
economic growth rates are necessary to reduce poverty and must be accompanied
by expanding productive employment to reduce inequality. Therefore the promotion
of inclusive growth is about raising the pace of growth and enlarging the size of the
economy, while leveling the playing field for investment and increasing productive
employment opportunities as well as ensuring fair access to them. It allows every
section of the society to participate in and contribute to the growth process equally,
irrespective of their circumstances.
Inclusive growth indicators can be grouped into four categories: economic and
financial inclusion, spatial inclusion, social inclusion, and political/institutional inclusion,
which are discussed in turn below.
6.3.1 Economic and financial inclusion
Economic growth should create productive employment. As a necessary condition for
inclusive growth, it provides the resources for investing in infrastructure, expanding
the private sector, providing resources for social protection programs to protect the
vulnerable, broadening access to health and education, improving gender equity,
and dealing with inequality.
Africa’s financial services sector has grown rapidly in response to its changing economic
landscape as rapid urbanization, rising incomes, and technological advances
have brought more people—many of whom were formerly locked out of the formal
financial system—into contact with banks and other similar institutions. The expansion
of the financial sector not only creates new jobs and other economic opportunities,
but also helps to establish formal identities for millions of market participants and
provides greater security than cash-based transactions.
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