 The Inequality Trap: Why Sub-Saharan Africa Struggles to Escape PovertyDirk Kohnert MPRA Paper from University Library of Munich, Germany Abstract: The issue of poverty in Africa is well-known and widely researched. Around a third of the world's poorest people live in Africa. Evidence from more recent years suggests that inequality may be an even greater challenge in Africa than in other developing regions. High levels of poverty and inequality persist in Africa despite it being one of the fastest-growing regions of the last decade. In particular, six of the world's ten fastestgrowing economies between 2001 and 2010 were in sub-Saharan Africa (SSA). Initial inequality reduces the ability of growth to reduce poverty, and even more so if inequality rises during the growth process. Although income inequality fell by 4.3% between 1990 and 2009, Africa remains the second most unequal region globally, after Latin America and the Caribbean. Inequality not only dampens the poverty-reducing impact of growth and lowers the growth rate, but also hollows out the middle class, encourages corruption and rent-seeking, increases crime and violence, undermines social stability and precludes sustained growth. Growth trends in sub-Saharan Africa are not significantly different to those of other developing countries that have fallen into a poverty trap. The combination of endemic poverty, high inequality and low growth is a major obstacle to poverty reduction and overall socioeconomic development in much of Africa. Multidimensional inequality is deeply entrenched in much of Africa and exhibits vertical and horizontal dimensions that hinder human development. The roots of inequality lie in the colonial past and have been reinforced by institutions that limited access and were established by the colonisers and maintained by generations of African leaders since then. Attention should also be paid to the diachronic dimensions of inequality, especially how inequality changes over individuals' lifetimes and its effect on intergenerational mobility. As effective democratic practices take firmer root on the continent, it can be expected that pressure for general and inclusive social redistribution will increase. Providing social protection contributes to reducing poverty and inequality in Africa. Additionally, rising income inequality contributes to increased CO₂ emissions. Furthermore, an increase in poverty has a detrimental effect on environmental pollution in sub-Saharan African countries. Over half of adults infected with HIV in Africa are female, yet poverty and social structures still prevent many women from protecting themselves. Current strategies to change HIV-related behaviours continue to fail women and girls in Africa. Keywords: Poverty; inequality; economic growth; Sub-Saharan Africa; Nigeria, South Africa; DR Congo (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125930 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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