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In terms of the headcount ratio, the poverty incidence in Africa is 46 per cent in —the highest in the world.

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Poverty in Africa is both most prevalent and severe in rural areas. Poverty measured in terms of nonincome indicators such as health and education has not improved much either over the past years in the region.

Globalization and Inequality

The overall picture gives little cause for optimism that Africa will soon reap the benefits of the process of globalization, unless it scales up efforts in a number of fronts including adopting a more pro-poor pattern of growth and increasing the provision of public services in the social sector. Further, the degree of income inequality in Africa has increased sharply in the last two decades. Today, many countries in Africa suffer from a relatively high intra-country inequality which is among the highest in the world.

With growing recognition of the need to grow faster, most African countries have increasingly searched for ways to accelerate their participation in the global economy over the past two decades. Indeed, most economies in Africa significantly liberalized their trade and investment policy regimes as part of Structural Adjustment Programs since the mids.

Many countries in Africa have also intensified their efforts to attract foreign direct investment with various fiscal and other incentive measures.

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  8. Yet, foreign direct investment FDI flows to the region so far have been largely limited to extraction of oil and other natural resources. Africa attracted only around 6 per cent of total net FDI inflows to developing countries in The recent upturn in economic growth recorded in many natural resource-rich economies in Africa is closely associated with the price hike of oil and mineral commodities in the world markets. The sustainability of growth rates of per cent recently observed in these economies will be dependent on the degree to which commodity booms are used purposely for diversification and transformation of economic and trade structures.

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    Indeed, today, several decades after gaining political independence, the high primary commodity-dependence remains one of most conspicuous characteristics of the trade pattern of countries in Africa with the rest of the world. The failure of these economies to diversify and undergo structural transformation, and hence, to benefit from the technology-driven, highly dynamic aspects of on-going globalization has entailed a high cost to the region not only in terms of low economic growth but also in persistent poverty.

    In particular, the past neglect—if not overt exploitation—of agriculture in many African countries short-circuited the development process as agriculture is the only potential engine of growth at an early development stage. There is no doubt that sustained poverty reduction requires economic growth.

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    However, the pattern of growth does significantly affect the rate of poverty reduction. Economic growth in Africa, where it has occurred, has not been translated into significant poverty reduction. Critically, the nature and pattern of integration into the global economy in Africa as well as domestic conditions has not been conducive to generating virtuous cycles of globalization-induced growth as generally observed in Asia.


    Does Globalization Help or Hurt the World's Poor?: Overview/Globalization and Poverty

    The growth—accompanied by a substantial reduction of abject poverty—in East Asia can be explained in terms of the region-wide comparative advantage recycling in production and export of labour-intensive goods. By relying on their dynamically evolving comparative advantages these countries were able to maximize the benefits from dynamic externalities. This volume contains chapters by leading development economists analysing critically and rigorously how different manifestations of globalization tend to influence poverty in the developing world.

    Overall, … it has a good balance of topics and analysis.

    This book has raised a number of important lessons on transmission mechanisms that … will surely lead to a more concrete meaning of complementary policies and to a more fruitful use of the pro-poor prospect of increased globalization. XLVI March : — Book The Impact of Globalization on the World's Poor Transmission Mechanisms Globalization and poverty epitomize two of the most pressing issues in international development today.

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    Poor under Globalization in Asia, Latin America, and Africa - Oxford Scholarship

    Editor Machiko Nissanke Erik Thorbecke. Region World. Table of contents.