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
Why is the number of poor people in Africa increasing when Africa’s economies are growing?