Economic Growth in Sub-Saharan Africa

Abstract

Sub-Saharan Africa, in the aggregate, has had the worst growth performance of any major region of the world over the last few decades. It is important to recognize, however, the enormous diversity in growth experiences at the country level. Some countries, like Botswana and Cape Verde, have grown consistently. Others, including Madagascar and Niger, have seen persistent declines in income. Many countries, Cote d'Ivoire being one example, saw early growth only to be followed by economic decline. A few, like Uganda, after early stagnation and decline experienced growth in more recent years. Average growth rates over a period of several decades do not capture the complexities of the growth process in many countries. This paper examines growth in sub-Saharan African countries in detail over the period 1961 to 1996 by looking not only at average growth rates over this time period, but also at decade by decade growth rates, peak income years, nadir income years, and the variance of growth rates. Countries are classified, by the pattern of growth from 1961 to 1996, into one of five groupings. In addition to characterizing growth in Africa, the relevant literature is also reviewed. Explanations for the poor performance of Africa have included low investment rates, flawed economic policies and institutions, ethnic fractionalization, and adverse geography.