Inclusive Growth
Inclusive Growth and Poverty Reduction in Africa
The Experience of Zambia Dr. Francis Chigunta
Overview
• After stagnating for much of its post‐colonial history, economic performance in Africa has improved remarkably in recent times • Average of 5.6 per cent a year • Africa was one of the fastest growing regions in the World from 2001 to 2008 • Despite the global economic crisis Africa’s ‘robust’ growth has since resumed.
• 4.8 %on average in 2011 (World Bank), with the • 5.2% (International Monetary Fund) projecting it at 5.2 per cent • Of the world’s 15 fastest‐growing economies in 2010, ten were from Africa, including Zambia
• • • • • •
Growth acceleration due to: improvements in commodity prices improved macro‐economic environment, micro‐economic reforms capital inflows, and measures to curtail armed conflicts, among other factors.
• Despite positive economic outlook, many of Africa’s 54 individual economies still face serious challenges, especially: High poverty levels, illiteracy, disease, and high child, infant and maternal mortality.
Lack of Inclusive Growth
• A major weakness is absence of INCLUSIVE GROWTH for all groups of the population. • There is inequality in terms of: income; access to education and health services; limited job opportunities, especially for the youth;
and, weak institutional, regulatory and business frameworks Problems remain pervasive despite reforms Justification for inclusive growth
The Presentation
• This presentation reviews Zambia’s experience in promoting inclusive growth • Despite positive and stable growth in recent years and immense untapped potential in agriculture, mining and services, Zambia’s poverty rates have not declined (Resource rich, poor people)
• Ascertain the extent to which the country has been successful in promoting inclusive growth in terms of broadening access to productive employment and basic services among ordinary people • Key questions:
The Experience of Zambia Dr. Francis Chigunta
Overview
• After stagnating for much of its post‐colonial history, economic performance in Africa has improved remarkably in recent times • Average of 5.6 per cent a year • Africa was one of the fastest growing regions in the World from 2001 to 2008 • Despite the global economic crisis Africa’s ‘robust’ growth has since resumed.
• 4.8 %on average in 2011 (World Bank), with the • 5.2% (International Monetary Fund) projecting it at 5.2 per cent • Of the world’s 15 fastest‐growing economies in 2010, ten were from Africa, including Zambia
• • • • • •
Growth acceleration due to: improvements in commodity prices improved macro‐economic environment, micro‐economic reforms capital inflows, and measures to curtail armed conflicts, among other factors.
• Despite positive economic outlook, many of Africa’s 54 individual economies still face serious challenges, especially: High poverty levels, illiteracy, disease, and high child, infant and maternal mortality.
Lack of Inclusive Growth
• A major weakness is absence of INCLUSIVE GROWTH for all groups of the population. • There is inequality in terms of: income; access to education and health services; limited job opportunities, especially for the youth;
and, weak institutional, regulatory and business frameworks Problems remain pervasive despite reforms Justification for inclusive growth
The Presentation
• This presentation reviews Zambia’s experience in promoting inclusive growth • Despite positive and stable growth in recent years and immense untapped potential in agriculture, mining and services, Zambia’s poverty rates have not declined (Resource rich, poor people)
• Ascertain the extent to which the country has been successful in promoting inclusive growth in terms of broadening access to productive employment and basic services among ordinary people • Key questions: