URBANIZATION AND INDUSTRIALIZATION

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84 ECONOMIC REPORT ON AFRICA 2017 2.4 CONCLUSIONS <strong>AND</strong> KEY MESSAGES The poor in Africa live much further below the extreme poverty threshold than those in other regions, with an average consumption of about 60 per cent of the international poverty line. This points to the challenges in achieving the Sustainable Development Goal target of eliminating poverty on the continent by 2030. Even though inequality has declined in many African countries since 2000, average within-country inequality levels are high and hamper the povertyreducing effect of economic growth. Nearly 50 per cent of Africa’s labour force works in agriculture, a sector that reduced its share in total GDP in almost all African subregions in 1990–2012. Low agricultural productivity depresses demand and wages, and slows poverty reduction. At 2.6 per cent a year, Africa has the fastest rate of population growth in the world. In 10 countries it exceeds 3 per cent a year. The slow decline in fertility rates (slower than child mortality rates) and its virtual stalling in the 14 countries with half the continent’s population delay the demographic transition and checks the opportunity to unlock the demographic dividend. Despite gains, gender inequality remains a key development challenge in Africa. Gender gaps in primary education have largely closed, but with wide variations across subregions. Poor girls face a significant schooling disadvantage in most countries, which is worse at lower incomes. 9 African women combine family responsibilities with labour market engagement in the informal economy, including own-account work, where low levels of education, poor conditions of work and low remuneration limit their opportunities for obtaining a fair return on their labour. unmet need for family planning and its awareness creation. Africa’s urbanization reflects considerable variation, as countries at different income levels have urbanized at different rates. Unlike global trends urban–rural differences in welfare and living standards in Africa do not seem to narrow with increasing urbanization. Rural–urban migration is a rational response to access social and economic opportunities. Many urban municipal authorities lack the capacity to plan for urban growth and accommodate the migrants who end up settling in shanty towns and slums, which can stimulate transmission of AIDS, TB, and other diseases. Such migrants often swap rural poverty for its urban variant. Investment in basic urban services and in capacity building of subnational governments, especially in secondary cities, to manage urban growth should therefore be a high policy priority for inclusive growth. The policy response to urbanization needs to cover the entire rural–urban continuum, including secondary cities, reflecting the growing recognition that the distinction between secondary towns and large cities is central for analysis and policy, and the composition of urbanization is at least as important as its aggregate rate for inclusive growth and distribution. Most of the urbanization discourse focuses on the national rate of urbanization, obscuring key analytical features and often narrowing the policy debate to issues concerning large cities. Increased child survival rates and women’s education, income and their participation in the labour force, seem to have little impact on fertility. Policymakers should combine long-term development programs, such as provision of social infrastructure and improving the status of women, with short-term interventions, such as meeting the
REFERENCES African Development Bank (AfDB). 2015. African Development Report 2015. Growth, Poverty and Inequality Nexus: Overcoming Barriers to Sustainable Development. Abidjan, Côte d’Ivoire. AfDB, OECD (Organisation for Economic Co-Operation and Development) and UNDP (United Nations Development Programme). 2016. African Economic Outlook 2016: Sustainable Cities and Structural Transformation. 15th Edition. Abidjan, Côte d’Ivoire. AEO (African Economic Outlook). 2016. African Economic Outlook database. Available at: http:// www.africaneconomicoutlook.org/en/st atistics. Alemayehu, G., and Y. Addis. 2014. “The Political Economy of Growth, Poverty and Inequality in Ethiopia 2000–2014: An update.” (Chapter in a Book by FSS/Desalegn Rahemato). Awumbila, M., G. Owusu and J.K. Teye. 2014. “Can Rural-Urban Migration into Slums Reduce Poverty? Evidence from Ghana.” Migrating out of Poverty RPC Working Paper 13. Migrating out of Poverty Consortium, University of Sussex, Brighton, UK. Bandara, A. 2015. “The Economic Cost of Gender Gaps in Effective Labor: Africa’s Missing Growth Reserve.” Feminist Economics 21 (2). Banerjee, A.V., and E. Duflo. 2006. “The Economic Lives of the Poor.” Journal of Economic Perspectives 21 (1): 141–168. Beauchemin, C. 2011. “Rural-urban Migration in West Africa: Towards a Reversal? Migration Trends and Economic Situation in Burkina Faso and Côte d’Ivoire.” Population, Space and Place 17: 47–72. Beegle. K., L. Christiansen, A. Dablen and I. Gaddis. 2016. Poverty in a Rising Africa. Washington, DC: World Bank. Available at: https://openknowledge.worldbank.org/handle/10986/22575. Bhorat, H., K. Naidoo and K. Pillay. 2016. “Growth, Poverty and Inequality Interactions in Africa: An Overview of Key Issues.” Inequality Project, UNDP RBA Working Paper Series. Black, R., B. Xiang, M. Collyer, G. Engbersen, L. Heering and E. Markova. 2006. “Migration and Development: Causes and Consequences” In The Dynamics of International Migration and Settlement in Europe. Amsterdam: Amsterdam University Press. Bloom, D.E. 2016. “Demographic Upheaval.” Finance and Development March 2016. Washington, DC: IMF. Available at: http://www.imf.org/external/ pubs/ft/fandd/2016/03/pdf/bloom.pdf. Bongaarts, J. 2008. “Fertility Transitions in Developing Countries: Progress or Stagnation?” Studies in Family Planning 39 (2): 105–110. Bryan, G., S. Chowdhury and A.M. Mobarak. 2011. “A Seasonal Migration and Risk Aversion Mimeo.” New Haven, CT: Yale University. Chandy, L. 2015. “Why is the Number of Poor People in Africa Increasing When Africa’s Economies Are Growing?” Washington, DC: Brookings Institution. Available at: https://www.brookings.edu/blog/africa-in-focus/2015/05/04/why-is-the-number-of-poor-people-inafrica-increasing-when-africas-economies-are-growing/. Christiaensen, L. 2008. “Agriculture for Development in East Asia: Lessons from the World Development Report 2008.” Special focus in East Asia and Pacific update. Washington, DC: World Bank. Christiaensen, L., J. De Weerdt and Y. Todo. 2013. “Urbanization and Poverty Reduction: The Role of Rural Diversification and Secondary Towns.” Agricultural Economics 44 (4–5): 435–447. Clemens, M.A., and L. Pritchett. 2008. “Income per Natural: Measuring Development as if People Mattered More than Places.” Working Paper 142. Washington, DC: Center for Global Development Cornia, G.A. 2016. “An Econometric Analysis of the Bifurcation of Within-country Inequality Trends in Sub-Saharan AfricaAfrica other than North Africa, 1990–2011.” Inequality Project, UNDP RBA Working Paper Series. De Brauw, A., V. Mueller and H.L. Lee. 2014. “The Role of Rural–urban Migration in the Structural Transformation of Sub-Saharan AfricaAfrica other than North Africa.” World Development 63: 33–42. Duflo, E. 2012. “Women Empowerment and Economic Development.” Journal of Economic Literature 50 (4): 1051–79. Fosu, A. 2009. “Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan AfricaAfrica other than North Africa.” Journal of Development Studies 45 (5): 726–745. ———. 2011. “Growth, Inequality, and Poverty Reduction in Developing Countries: Recent Global Evidence.” WIDER Working Paper 2011/001. Helsinki: UNU-WIDER. Fritz, V., R. Katayama and K. Simler. 2008. “Breaking Out of Inequality Traps: Political Economy Considerations.” PREM Notes 125. Washington, DC: World Bank. Goldstone, J., A. Korotayev and J. Zinkina. 2014. “Fertility Stall and Social-Demographic Risks of Humanitarian Disasters in Tropical Africa, and Means of Their Prevention.” Presentation at the XVIII ISA World Congress of Sociology, Yokohama. Haggblade, S., P. Hazell and T. Reardon. 2007. “Strategies for Stimulating Equitable Growth in the Rural Non-farm Economy.” Chapter 17 in Transforming the Rural Nonfarm Economy: Opportunities and Threats in the Developing World. Baltimore, MD: Johns Hopkins University Press. RECENT SOCIAL DEVELOPMENTS IN AFRICA 85
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URBANIZATION AND INDUSTRIALIZATION
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CCONTENTS LIST OF BOXES, FIGURES &
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chapter 5 URBANIZATION AND INDUSTRI
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CHAPTER 1 (CONT) Figure 1.11 Growth
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CHAPTER 4 BOXES Box 4.1 Drivers, en
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LIST OF ABBREVIATIONS USED AEO AfDB
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UN-Habitat UNICEF US USAID WDI WTO
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The lead consultant, Mr. Gulelat Ke
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FFOREWORD Urbanization is a mega-tr
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articulated. Yet, industrial target
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harnessing opportunities from rapid
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A diverse urban system can offer in
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Cities and urban agglomerations sho
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Figure 1.1 Economic growth in Afric
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In 2016, the generally weak world e
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Box 1.2 SOME POLICY RESPONSES OF AF
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expensive interventions to support
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Figure 4.9 Top two ranked countries
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study 16 —makes the following con
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Table 4.4 Industrial sector charact
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Box 4.5 A PATH TO FORMALIZATION Suc
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Arusha, Tanzania Beira, Mozambique
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lengthening travel times and creati
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in South Asia (Yepes, Pierce and Fo
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ҋҋ Linking sector strategies, nat
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Agglomeration economies are powerfu
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Gutman, J., A. Sy and S. Chattopadh
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ENDNOTES 1 The link between urbaniz
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Still, policies that are well targe
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Figure 5.1 50,000 Four basic countr
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5.2 USING URBAN DEMAND TO DRIVE IND
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BOX 5.1 CONT. GRANTING POLICY SUPPO
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uilding superstructures are often r
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Box 5.3 RWANDA’S TRADEABLE SERVIC
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the surrounding fertile agricultura
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Despite urban primacy, secondary ci
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REPUBLIC OF CONGO A functional urba
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5.4 OVERCOMING BARRIERS TO AGGLOMER
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Box 5.5 COST-EFFECTIVE AND FAIR TEN
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Even non-BRT systems can improve tr
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in the economy as a whole, through
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5.5 INTEGRATED POLICIES TO LINK URB
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To foster industrialization, polici
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evenue is only 15.6 per cent of its
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REFERENCES Ackah, C., C. Adjasi and
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NISR (National Institute of Statist
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202 Table 6.1 Costs and benefits of
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Despite the recent slowdown of the
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