Measuring Structural Economic Vulnerability in Africa

Abstract

This chapter examines the structural vulnerability of Africa’s economy and the methodological issues involved in measuring it. It begins by proposing a conceptual framework for measuring economic structural vulnerability that distinguishes it from general vulnerability, from physical vulnerability to climate change, and from state fragility. It then considers the main features and evolution of structural economic vulnerability in Africa using an economic vulnerability index. It suggests that structural economic vulnerability is higher in the continent than in other developing economies, reinforced by physical vulnerability to climate change. In addition, Africa has the highest proportion of fragile states among all continents. Finally, the chapter indicates that structural vulnerability, if adequately measured, may be useful as a criterion for the international allocation of official development assistance and of concessional resources.