The economy is growing in Africa so why is there an increase in the number of those living in poverty? Laurence Chandy writes, “For over 20 years, economic growth has averaged 5.2 percent per year in Africa. Meanwhile, the number of people on the continent reportedly living under $1.25 a day has continued to creep upwards from 358 million in 1996 to 415 million in 2011—the most recent year for which official estimates exist.” How? Why? “The very wealthiest people—the top 1 percent—are enjoying more than their share of the spoils of growth.” (Chady)
Chady goes on to share his view on factors that explain the poverty numbers: The region’s fast population growth of 2.6 percent a year. Economies are doing well and creating more revenue. Since the money has to go farther due to more people, it is just not enough to keep the African people above poverty levels. The intensity of Africa’s poverty compared to poverty in the global economy. Poor people in Africa are way below the poverty line even though their income is growing it just isn’t enough when compared to other developed countries. Inequality isn’t increasing in most African countries, but inequality is currently at extraordinarily high levels. Income of African people varies, and few grow out of poverty.
Why the number of poor people in Africa has increased since the start of the century: “There is a degree of mismatch between where growth is occurring and where the poor are on the continent.” “Data quality: Poverty estimates drawn from household surveys, which in most African countries infrequently conducted.” (Chady)
Much of the same for the next few years: The number of poor people in Africa is expected to remain close to 400 million until 2020, despite a forecast of ongoing robust economic growth.” (World Bank)
Africa’s continent has plenty of resources, but instead many of its people live way below poverty by global standards. The way out of Africa’s economic struggles is through investments. Invest in the democratic process; banking, judiciary, news, elections, military, and service. Moran, Abramson, and Moran (2014)
References:
Laurence Chandy, Laurence, ” Why the Number of ……..”Monday, May 4, 2015
https://www.brookings.edu/blog/africa-in-focus/2015/05/04/why-is-the-number-of-poor-people-in-africa-increasing-when-africas-economies-are-growing/
In South Africa, the answer may be because of the “authoritarian” approach of leaders which means a high power distance hierarchy in which leaders are not to be questioned. This will not benefit the poor because the leaders “current policies discourage blacks from becoming entrepreneurs” (Moran, et al., 2014, p. 525).
Also, skilled workers are scarce, and “protectionism in place to prevent the import of technicians from abroad” leading to open positions (Moran, et al., 2014, p. 525). Also, healthcare is so poor and disease is rampant which will continue to keep poor workers who can’t afford healthcare, from working. Or they may be just too sick to work which in turn causes no income.
References:
Moran, R., Abramson, N.R., Moran, S.V. (2014). Managing cultural differences. New York, NY: Routledge.
Im not sure if you have found a solution to this dilemma or not but, in my opinion, this has to do to a problem with diversity and social learning. South African leaders are focusing more on their own well-being rather then looking at the diversity of their nation. They might not have the strong leadership to realize that diversity can either make a group stronger together or tare it apart. In this case diversity is dividing the country and the corruption and violence is being instilled to the population via social learning. One strong example is the child labor being exhibited, not only as part of regular work but also as part of the war. Other countries might think that those kids are forced to do what they do; however, they are not being forced by people per say; instead is social learning what is forcing them to follow a path they consider normal. Slowly, this social norm is being inculcated in the population and now the corruption and war is as normal as a daily cup of tea.
This is the age old story of not enough money and too many mouths to feed. Sadly, even with a growing economy Africa has a long way to go. What is far more tragic is how leaders in Africa and even other Countries prey on the hardships Africans are faced with. Millions of dollars are spent on Africa by foreign countries on manufacturing and mining, but inmost cases this is untrained, unsafe, and ungoverned labor. Sure, some of the money goes back to the laborer, but this is usually pittance. Furthering the struggles are the corrupt government officials who collude with big businesses in an attempt to get rich off the backs of their citizens. I hope one day that we see a united Africa much like the U.S. and the EU. Hopefully by coming together as a nation Africans will be able to oust corrupt governments and fight for fair wages and basic human rights.