AfDB: Championing inclusive growth across Africa. A blog by the former Chief Economist and Vice-President
For the past decade, Africa has had strong growth. A new economic momentum has been created. The continent weathered the financial crisis and has bounced back. But headline economic growth is not enough. Deliberate policies to reduce inequalities and promote inclusion are now needed more than ever before. It is time to focus on what people want: decent work, a living wage, access to basic service, more democracy and accountable governments. Africa and its people aim to be a pole of growth in the decades ahead. Read more
Private capital flows to emerging markets are benefiting from an overall supportive global environment, in particular improved global outlook and strong projected growth in Africa. While the monetary policy of the Federal Reserve Bank has been shifting from quantitative easing to a tightening mode, the European Central Bank and the Bank of Japan are expected to undertake further monetary easing. Hence private capital flows to Africa’s emerging and frontier markets are expected to be higher than at the beginning of 2014. Nevertheless, risks of sudden stops or even reversals remain. Surprises in the timing, speed and size of the Fed quantitative easing (QE) tapering constitute some of the downside risks.
In a recent Book I co-authored with Prof. Kjell Hausken on “Quantitative Easing and Its Impact in the US, Japan, the UK and Europe” , we analyze, empirically, the effects of quantitative easing (QE) on interest rates and the economies of the USA, Japan, the UK, and Europe.
According to the 2013 United Nations Conference on Trade and Development World Investment Report, the value of global trade is currently estimated at US $20 trillion. Trade in intermediate goods and services that are incorporated at various stages of production accounts for two-thirds of global trade.
African economies have sustained unprecedented rates of growth in the past decade. This growth was mainly driven by exports of natural resources and commodities, improved macroeconomic management, a growing middle class, and increased domestic demand fuelled by consumption and increased political stability. However, Africa’s growth has not been inclusive, as poverty rates and inequalities remain high.
We have all seen the news reports about unskilled African workers and economic migrants desperately attempting to make their way to Europe, in overcrowded and unsafe vessels, risking their lives in the quest for a better life. We have also read about the significant streams of irregular migration (including traders and highly skilled professionals) across the African continent, at a great human and social cost. The reasons for illicit and widespread migration are not new.