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Working Paper 130 - Growth and Macroeconomic Convergence in Southern Africa

23-Jun-2011

This paper describes real per capita income and macroeconomic convergence in Southern African Development Community (SADC). SADC is one of the 9 regional economic communities (RECs) in Africa and currently includes 15 member statesi ( see end note) with total population of about 257.7 million and Gross Domestic Product of US$471.1 billion in 2009.

Convergence of economic growth and per capita incomes among nations has been a central theme in neoclassical growth theory and vast economic literature related to it for decades. Thus, traditionally, the analysis of convergence involved an analysis of whether poor countries are set on a convergence path, i.e. whether their real per capita incomes will eventually catch up with those of rich countries. However, since recent decades, increased emphasis on development strategies based on regional economic integration required strengthening of macroeconomic policy credibility, effectiveness and stability, leading to formulation of specific goal of macroeconomic convergence among the regional economic groupings.

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