AFRO-NETS> African Economy

[Dr Sigmund de Janos <dejanos@home.com>]

African Economy
---------------

The UNWIRE published the following report:

AFRICA: Poverty Eclipses Economic Growth, ECA Says

Economic growth must be higher if Africa is to lift itself out of pov-
erty, according to a new report by the UN Economic Commission for Af-
rica. Africa's economy has grown by 3.3% annually since 1994, but the 
growth is "not enough to make a real dent on poverty," according to the 
UNECA report. Growth is not "high enough, not sufficiently broad based, 
or sustained long enough." Four out of 10 Africans still live in "abso-
lute poverty," and the trend is expected to increase.       

UNECA Executive Secretary K.Y. Amoako: "African countries need to re-
double their efforts to attain and sustain the required growth rate to 
reduce poverty levels. African economies remain vulnerable to exogenous 
economic and non-economic shocks, such as movements in international 
commodity prices, erratic weather conditions and civil conflicts."       

Africa must grow economically by 7% annually to meet the UNECA's goal 
of cutting poverty in half within 15 years. But the outlook for such 
growth is uncertain. Many countries lack the basic resources to sustain 
growth, especially countries embroiled in conflict. External resource 
flows to Africa dropped from $4.5 billion to $3 billion in 1997 and 
could drop further in the future, the UNECA says.       

Although Africa has grown economically overall, some regions are doing 
worse. Amoako: "The two subregions in Africa where economic growth, 
stability and prospects for development look very encouraging [are] 
southern Africa and northern Africa. Other subregions have a lot more 
difficulty" (Lewis Machipisa, Inter Press Service, 5 May).       


Dr Sigmund de Janos
Senior Consultant
Tel: +1-613-731-3461
Fax: +1-613-731-3286
mailto:dejanos@home.com


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