Running head: Comparison of African countries economic development rates

Comparison of African countries economic development rates

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Comparison of African nations development rates

Africas development crisis is unique. Africa is among the poorest continents in the
world; it is also the among the fast developing regions the main reason for most African
countries being in the poverty trap which results in negative growth in their income per capita.
Some countries have growth Policy-based development systems that lend to African countries to
support Africas development during the recent years referred to as the structural adjustment
lending such a program fails to correct the poverty challenge facing African countries. However,
some African countries experience economic development whereby they are experiencing
increases in their standards of living through their increase in their per capita income. African
countries experiencing growth have better governance systems and better public funds
management systems. The difference has brought about a big debate on why some African
countries are growing while others remain stuck in poverty, yet most of them have sufficient
resources that can facilitate development.
Reasons for poor economic growth
Poor governance
There is Poor governance in most African countries is due to poor management of
resources both human and non-human that lead to stunt growth rates, the standard diagnosis is
that Africa has a high level of governance crisis. With examples of profoundly poor governance
cases, an example in Zimbabwe, and widespread war and violence, as The Democratic Republic
of the Congo, Liberia, and Sudan, the impression of a continent-wide governance crisis is
understandable. Many parts of Africa are well governed but still they are stuck in poverty. Poor
governance is a significant problem in developing countries that have analytically poorer
governance systems than their highly developing counterparts with good governance since they
efficiently use their resources
Debt trap
Most African countries governments fail to pursue long-term development because they
have huge debts that they have to pay. In many cases, this debt is accumulated by different
regimes in during different reigns in various African governments which failed to use the loans
they borrowed for development purposes.
Environmental degradation

Comparison of African nations development rates

Some African countries face deforestation a situation brought about practices such as
cutting down trees for firewood, charcoal and shelter building this practice results in
consequences such as soil erosion and increase cases of drought in different African regions.
Envy will limit the land that is viable for agriculture thus reducing food supply in the area
causing hunger and eventually lead to poor economic growth since most African countries export
agricultural products to gain foreign income. Environmental degradation also leads to a constrain
on resources which can and has led to increased scramble for the few available resources such as
water that reduces the time spent on other more economically productive endeavors.
Cultural and traditional practices
African countries embrace their culture and traditions seen in the diversity of its
populations that has many ethnic communities. The cultures and traditions may not support
economic growth and development since they hinder development activities by creating
circumstances that lead to economic stagnation. Examples include early marriages especially for
females which make it almost impossible for them to pursue their education that will, in turn,
reduce illiteracy levels making them less economically productive. Cattle rustling experienced in
East African countries like Kenya, Uganda and Tanzania where the different ethnic tribes
practice it as part of their culture this results in conflicts in many cases lead to death, the dead
people and the lost time could have been used to contribute to economic development in the
African countries productively.
HIV/AIDS
The majority of individuals making up the world reported cases of HIV/AIDS infections
come from African nations. High HIV/AIDS infection rates are caused due to high illiteracy
levels in Africa that make it easier for the disease to spread. The affected population makes up a
fraction of the countries productive population this drains the labor force both skilled and
unskilled offered to drive economic projects that steer growth, and it also increases public
expenditures of such countries on medical expenses this money could have otherwise been in use
for economic development. Effects of high cases of HIV seen in a country like Botswana
Political instability

Comparison of African nations development rates

Africa is a region that reports very many conflict cases that lead to wars caused by many
diverse reasons. Such reasons in as scramble for resources in different countries has rendered
some countries to be war zones for example Congo where there is civil war, that has been there
for many decades due to the scramble for gold and rubber mining grounds the scramble has made
it almost impossible for the country to ever enjoy political stability .Many rebel groups are
continuously being formed that are antigovernment and thus many wars are being fought
making it virtually impossible to carry out economic boosting activities such as farming, wars
also make it easy for smuggling of the countries minerals that could have been used to boost the
countrys economy by being used as export products to bring in foreign money to be use in
promoting economical projects.
Political instability is caused by wars that physically disrupt and displace many people
and also mentally affect them this is the reason behind the refugee problem facing politically
stable countries like Kenya that has politically unstable neighbors diverting their development
resources to help shade and support the refugees across the many refugee camps. Politically
unstable counties focus on the short term goal of providing basic needs to their citizens and
maintaining law and order but compromise on the long term development objectives
Poor agricultural practices
Most African countries depend on agriculture which is their economic backbone but in
many cases agricultural practices in Africa are labor intensive and apply very little of the modern
agricultural practices poor practices reduce on their yields thus lessen the income from the
exports. The frameworks and infrastructures that are laid in place to support agriculture are also
poor this includes poor roads in the agricultural rich zones making it hard to transport
agricultural products.
High illiteracy levels
Many African nations have poor educational systems that make it hard for education to
take place. The systems are not comprehensive that tend to focus on only providing skilled labor
giving no room for educating the non-skilled population which is also very essential in
supporting economic growth. Lack of enough educational institutions makes it hard for most

Comparison of African nations development rates

African populations to access formal education that is a supportive framework for economic
growth.
High population growth levels
African populations grow at very alarming rates this is due to low-income family
planning methods caused by cultural, religious and medical constraints this causes strain on the
few available resource and also increases dependency levels. The high populations reduce the
per-capita income especially if the population that is high has a greater percentage that is lesser
or not productive.
Poor technology
African nations face challenges in their technological know-how. Technology is used to
increase productivity through enhancing efficiency and effectiveness by mechanization and also
facilitates information transfer that is used to reinforce and support improvements on various
economic systems in the world; most African countries have little technology reducing levels of
mechanization and information sharing this stags economic boosts.
Reasons for economic growth in some African countries
Adoption of market energizing policies
The governments of African nations are increasingly adopting policies are energizing to
their markets. The privation of enterprises which are state-owned is another factor that causes
growth in African countries. Privatization causes this enterprise to experience an increase in the
openness of trade, dropped corporate taxes, reinforced monitoring and legal systems, and
provided important physical and social framework. Nigeria has privatized many corporations
while Morocco and Egypt have signed free-trade agreements with its main export partners.
Though policies of numerous governments have a long distance to go, these critical first steps
assisted the private business sector to arise.
Political stability
Some African countries have stopped their fatal hostilities enabling them to be politically
stable which is a necessary condition in restarting their economic growth and continuity of sound
medium-term policies and changes in their body structures which blend well with future growth

Comparison of African nations development rates

mechanisms in the region. Most African countries are now under democratic governments a
situation which has reduced violence and resulted to conflict resolutions despite there being a
few hot beds.
Change in state budget plans
Successful African Governments have decreased their average inflation rate from 20 percent in
the 1990s to around 10 percent in the twenty first century. They minimized their foreign debt by
twenty five percent and reduced their budget deficits by sixty six percent.
Improvement in macroeconomic conditions
African nations improved their macroeconomic conditions, and undertake
microeconomic reforms to create a better business climate by increases in their aggregate income
levels and aggregate spending therefore maximizing their social welfare this brings about price
stability in which the prices of goods and services change at very slow rates or they do not
change at all. The improvement of microeconomic conditions have put a halt to inflation and
deflation in the given African countries economies.
Increase in Resources
African countries that have experienced increases in their economic levels accrue
benefits from the increase of their natural resources through recent discoveries minerals and oil
for an example the discovery of oil in countries like Kenya and Uganda over the past decade.
There has also been an increase in the price levels of trade commodities for example Oil prices
have increased from twenty dollars a barrel in the twentieth century 1999 to more than one
hundred and forty dollars in the twenty first century. Prices for minerals, grain, and other raw
materials also soared on rising global demand
Infrastructure developments
African countries which have invested highly in their development project like their
telecommunications systems, banking sectors this has opened up the African economies to
investment opportunities by increasing credit essential for business activities this has increased
employment opportunities increasing the standards of living in those nations and also sound
improvements in their retail sectors which are now flourishing. Construction is booming because

Comparison of African nations development rates

of increases in the Private-investment inflows. Countries like South Africa have good road
networks that facilitate economic activities like transportation, agriculture by providing easy
access to agricultural products it has also increased trade activities this is through the provision
of access to different markets in the region.
Increase in domestic consumption
African nations are now encouraging their citizens to purchase their goods locally by
putting up tariffs that favor the local industries like giving waivers to them making their goods
cheaper in comparison with internationally purchased goods. The governments also impose high
taxes on imported goods to discourage their citizens from buying goods manufactured by foreign
countries that now tend to be more expensive. The increases in domestic consumption have
brought about the growth of the local industries enhancing their capacity to employ more people
decreasing unemployment levels also it increases the local industries contribution to the
countries income through on the companies. The fact that local consumption is the biggest
contributor to economic growth in these countries. There has been an increase in rural-urban
migrations making cities a hub for real the consumption of locally produced goods. As a result,
consumer-facing sectors have grown rapidly.
Expansion of exports
Most African countries have increased their export products by increasing the output of
this product for instance the African nations are now investing in new sectors like Nigeria is now
encouraging its population to venture into agriculture and stop high dependency on the oil
industry. This new industry has made the Nigerian exports be increased making them have a hike
in their foreign incomes that they use to boost their economies. Rising markets need big
investments to build up modern economies infrastructure. Exports are the most primary means to
earn foreign currency for imported capital goods that make up a bigger portion of its
investments.
Diversification of economies
African countries have diversified their economies. The shift from agrarian to urban
economies have made up multiple sectors contributing to growth. The high populations in the
urban sectors increase the countries labor provision improving the countries productivity. The

Comparison of African nations development rates

share of GDP contributed by agriculture and natural resources reduces with increase in the
manufacturing and service industries, which create jobs and raise incomes increasing domestic
demand. On average, every fifteen percent increase in manufacturing and services as a portion of
GDP is related to the doubling of per capita income, for example, South Africa diverted its
economy from the mining sector to the agriculture and service sectors which have boosted its
economy.
Good governance
Most African countries have embraced democracy in their governments this has brought
about efficiency in the running of the African economies by increasing accountability when using
their resources in different economic projects in the various economic sectors. Good governance
boosts the countries economies
Good agricultural practices Most African countries experiencing high levels of growth
have adopted good farming practices like mechanization of their farming practices this has
resulted in high yields which in turn has increased earnings from this sector which in many cases
is the backbone of this country contributing to growth. African governments in this countries
have also subsidized the basic inputs such as fertilizer making farming activities easier. Countries
have put high investments in agricultural research to ensure increases in the quality of their seeds
by developing seeds that have a better adaptation to the prevailing climatic conditions in the
countries.
The African continent has countries that experience both developments and increased
living standards while other nations remain stuck in poverty. The reason for this difference is
general because the developing countries adopt poor development policy and have poor
governance systems while their counterparts have sound development policies and have put in
place proper government structures.

Comparison of African nations development rates

References
African development indicators, 2005. (2005). Washington, D.C.