Fast Facts No 2 February 2004
PARTIAL SMILES FOR THE PREVIOUSLY HOPELESS
Democracy has made progress in
sub-Saharan Africa, but the fight against poverty has not. We trail
East Asia and the Pacific in reducing poverty because we lag far behind
in economic growth.
In May 2000, The Economist outraged many people when it described
Africa as ‘The Hopeless Continent’. ‘Who would want to live in Europe
anyway?’ demanded our own Financial Mail. ‘Ignore this racist
diatribe,’ commanded Jovial Rantao in the Saturday Star.
In the good old tradition of ignoring good news, little attention has
greeted the London magazine’s latest survey of sub-Saharan Africa,
entitled ‘How to make Africa smile’. Among other things, the
paper said there were encouraging signs that President Robert Mugabe of
Zimbabwe represented Africa’s past, not its future.
The most telling example of the advance of democracy in sub-Saharan
Africa since the end of the cold war, The Economist said, was this: in
the 1960s and 1970s, no African ruler was voted out of office,
while in the 1980s, only one was. ‘Since then, 18 have been and
counting...a sign that some African governments are becoming more
accountable to their people.’
So much for the view that robust oppositions able to oust governments
at the polls are bad for African democracy. They are indeed the surest
sign that democracy is alive and well.
Africa nevertheless faces an enormous challenge to reverse its relative
and absolute economic decline. Latest World Bank data show that in
1990, 19% of the poorest people on earth lived in sub-Saharan Africa.
The proportion rose to 27% in 1999 and will rise even further — to 50%
— by 2015. Extreme poverty is defined as living on less than a dollar a
day.
Translating these percentages into people means that the number of the
extremely poor in sub-Saharan Africa increased from 241m in 1990 to
315m in 1999 and will increase further to 404m by 2015. Whereas the
proportion of people in all low and middle-income countries who are
poor will drop from 30% in 1990 to 13% in 2015, the proportion of
sub-Saharan Africans who are poor will drop from 47% to 46%— barely at
all.
Why is this region doing so badly against poverty? No growth — in fact,
negative growth, better described as shrinkage, in gross domestic
product (GDP) per head. Between 1990 and 1999, GDP per capita in
sub-Saharan Africa shrank by 5%. In striking contrast, it rose in East
Asia and the Pacific by 75%.
Poverty, in other words, is declining as a global problem. That’s the
good news. The bad news is that it is looming larger as a sub-Saharan
African problem. The question for South Africa is for how much longer
we can keep on subordinating growth to redistribution.
—John Kane-Berman