Africa Rising? Short-Term Growth vs. Deep Institutional Concerns

Abstract

Research on development has moved away from short-term performance to long-term determinants of success. This paper identifies historical factors that shaped the development of key institutions, the degree to which these institutions affected past economic outcomes and, more importantly, which ones are influencing contemporary performance. We first look at the trend in long-term economic performance for the continent compared with other regions of the world. The paper then evaluates the various explanations provided by the standard development model to explain this performance for Africa. The paper shows that the most important long-term determinant of economic and social performance in the continent has been the nature of the distribution of power, which shaped the distribution of economic resources. Furthermore, the paper argues that the distribution of power and the institutions that ensure this distribution were shaped by a number of historical events whose impact still endures.