The African economy and its role in the world economy

Abstract

In a broad survey this issue of Current African Issues presents a multifaceted picture of the current state of the African economy. After a period of falling per capita incomes that started in the 1970s, Africa finally saw a turnaround from about 1995. The last few years have seen average per capita incomes in Africa grow by above 3 per cent per year on average, partly due to the resource boom but also due to improved economic policies. Africa receives more aid per capita than any other major region in the world and there is a significantly positive effect of aid on growth. One of the most notable aspects of the current process of globalisation is the increase in trade between Sub-Saharan Africa and Asia, particularly China and India. The authors conclude with a call for policy coherence among donors. The politically most problematic areas for policy change of those discussed in the paper are not aid policy but trade policy and the European Union CAP (Common Agricultural Policy). This is a challenge to EU policy makers, since the latter areas are probably the most important to change if we take our commitment to development seriously.

CONTENTS -- Comparative performance of the African economy -- Financial flows to Africa -- The Asian drivers -- Impact of debt reduction initiatives -- Opportunities and constraints for growth -- Impacts of HIV/AIDS -- Gender and economic growth -- Brain drain -- Trade policy reform and African development -- Economics actors in a risky environment