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Africa Economic Brief – Volume 9 issue 01 - Global Markets and Inequality in African Countries
Globalization has had a big impact on many African countries in the last 20 years. It has provided a consi - derably expanded market for their exports; allowed them to specialize more in products for which they have a comparative advantage; and given their consumers access to an array of goods that they would not otherwise enjoy. In addition, it has led to impressive GDP growth in much of Africa, and has been an important force for improving average prosperity.
But there has been a downside, too. In particular, the gap between the incomes of the rich and poor that is, income inequality has significantly increased in many African countries, and global markets bear much responsibility for this. The growing inequality is unfortunate in at least three respects.