Can Poverty Be Ended in Africa - Assignment Example

CAN POVERTY BE ENDED IN AFRICA? Introduction The number of poor people in Sub-Sahara Africa, those living on extremely low subsistence levels, increased from an already high 217 million in 1987 to 291 million in 1998, which indicates that more than half the people in that continent are poor (World Bank, 2001: 24). The World Development Report Attacking Poverty establishes that poverty is now viewed as “encompassing not only low income and consumption, but also low achievement in education, health, nutrition, and other areas of human development” (World Bank, 2001: iv). This definition covers powerlessness, voicelessness, vulnerability and fear which are also considered to be dimensions of human deprivation. The multiple areas of the poverty problem cause increasing deterioration in the living standards in Africa, as compared to other developing countries. This paper proposes to identify the causes of poverty in Africa, to examine solutions to the current situation, and to determine strategies to foster growth and development in the continent. Discussion In spite of a substantial amount of aid ($1 trillion between 1965 and 2004), which in per capita terms is much greater than aid provided to any other region, most sub-Saharan African countries have regressed since independence. As compared to other developing regions, it is the best endowed with natural resources. Development failure has occurred in Africa throughout its history, since the continent achieved independence. More aid directed to Africa may not be the answer to the economic problems prevalent in the region. According to Mistry (2005: 665), Africa needs not financial capital, but human, social and institutional capital to focus on growth and development. Hence, the aid community’s current focus on poverty reduction and the Millennium Development Goals may be harmful to the cause of development in Africa. Huge sums of money received as aid are being siphoned out of the country. The legal and illegal capital flight from Africa estimated to be $50 billion to $100 billion a year, far exceeds annual receipts of aid which amounted to an average of $20 billion in 2000 to 2004, and private investment accounts for about $10 billion. Africa’s political and bureaucratic elite abroad hold a capital of over $500 billion. A significant part of Africa’s earnings from natural resources such as minerals and hydrocarbons is “diverted to the private accounts of leaders and officials, which makes up a large part of the illegally appropriated funds invested abroad” (Mistry, 2005: 666). This indicates that a transparent political system with integrity, accountability and a vision for the future, is the primary requirement for the continent to start taking steps towards progress. White et al (2001: vii) assert that only peace, stability and political commitment can support accelerated economic growth, thereby fostering rural livelihoods and progress among the poor. Better delivery of public services and more accountable public administration with better access to healthcare and education services are crucial to strengthen and empower the economically disadvantaged. While local and national level interventions are critical, global action is important because opportunities from global integration and technological advance benefit poor people, besides helping to overcome the risks of insecurity and exclusion that may result from global change (World Bank, 2001: vi). With better education services, quality of technical knowledge and advanced know-how will improve, so that high human capabilities within the sub-Saharan countries will help the countries to progress economically. In the history of Africa, there has been a continuous process of foreign invasion and ill-treatment of the native Africans, either through European colonization, as in South Africa, or by the process of exporting them under inhuman conditions for the purpose of slavery. This slave trade which started around the fifteenth century by Europeans who had colonized America, for working in their fields, factories and homes, and for building the new nation of America, was in world history, the greatest by numbers and was carried out for a period of around five centuries. These occurrences in African history laid the foundation for a crippled nation unable to stand up to the challenges of the modern world. The current situation of dire poverty is further exacerbated by the corruption and poor functioning of the governments of the African countries. Another factor is that Africa carries a very high disease burden with malaria and HIV/ AIDS being the most prominent diseases. The high incidence of these diseases contribute to the poverty trap in Africa, since the continent is too poor to control the diseases. Moreover, there is reduction of productivity, reduction in foreign investment, and stopping of demographic transition due to high child mortality rates. These also contribute to keeping Africa poor (Sachs et al, 2004: 134). Domestic and foreign private investment in Africa would help to raise the country from its condition of poverty. African countries, in spite of more opportunities for investment as compared to Europe, The United States of America, Canada, Japan or South Korea, are unable to attract enough investment to create the “employment, exports and technological environment needed to connect the continent meaningfully to the global economy” (Mistry, 2005: 668). This is because the African governments are perceived by private investors both domestic and global, as lacking in credibility, as corrupt and incompetent as compared to other developing countries. Governance is poor, and there is no exercise of democratic processes by the political leaders. The New Partnership for Africa’s Development (NEPAD) states that if Africa governed itself better, donors will provide more aid. With good governance, it would not need more aid as it could use its own resources for progress and prosperity, states Mistry (2005: 668). Development will continue to elude Africa if the governments insist that the sub-Saharan countries have the capacity to develop their own human, social, and institutional capacity, with the help of aid-funded technical assistance and capacity building to cope with increasingly complex and challenging global development. For achieving economic reform, self-sustaining development, and to become a productive part of the global economy the continent will require a large inflow of foreign investment and know-how. It would need to import on a permanent basis, human, social and institutional capital: sourced from around the world, especially from other developing countries such as China and India. This means that with structural transformation by the process of diversification, widening and deepening, Africa’s limited human resource base will be strengthened (Salvatore, 2001: 119). In the framework for action suggested by Kanbur & Lustig (2001: 31), the importance of developing education and employment opportunities have been emphasized upon, for promoting sustainable progress. The authors call for multi-faceted integrated action by the government as well as the people, for achieving freedom from poverty in the African nations. Politicians should be held accountable, governance should be transparent, and people’s voices should be heard. Conclusion This paper has highlighted the causes of poverty in Africa and has evaluated the solutions for achieving sustained economic progress and an improved quality of life. The complex nature of the poverty problem is the cause of a widening gap in the living standards in Africa as compared to other developing regions. It has been found that economic growth is the most essential factor to reduce poverty and for social development. Hence, traditional strategies to foster growth: macroeconomic stability and market-friendly reforms are vital for reducing poverty. Moreover, it is important that inclusive growth has to be ascertained by managing vulnerability of the poorest sections and ensuring their participation (World Bank, 2001: vi). Primarily, poor functioning of the corrupt government needs to be corrected; and accountability and efficiency should be stressed upon, so that economic and social reforms can be successfully implemented. References Kanbur, S.M.R. & Lustig, N. 2001. Attacking poverty. World Bank Group: World Bank Publications. Mistry, P.S. 2005. Commentary: Reasons for sub-Saharan Africa’s development deficit that the commission for Africa did not consider. African Affairs, 104 (417): 665-678. Sachs, J.D., McArthur, J.W., Schmidt-Traub, G., Kruk, M., Bahadur, C., Faye, M. & McCord, G. 2004. Ending Africa’s poverty trap. U.N. Millennium Project. Brookings Papers on Economic Activity, 1: 117-241. Salvatore, D. 2001. African development prospects: a policy modeling approach. United Kingdom: Taylor & Francis. World Bank. 2001. Attacking poverty. World Development Report (WDR) 2000/ 2001. New York: Oxford University Press. White, H., Killick, T., Kayizi, S., Mugerwa, M. & Savane, A. 2001. African poverty at the millennium: causes, complexities and challenges. Washington D.C.: World Bank Publications. Read More