Poverty and Inequality

Abstract

Despite economic growth, a large number of Africans continue to live in poverty and experiences high levels of income and opportunity inequality. Not only does inequality dampen the poverty reduction impact of growth, lower the growth rate, hollow out the middle class, encourage corruption and rent seeking, increase crime and violence, and undermine social stability, but it also precludes sustained growth. Access to education, power supply, health services, and water and sanitation are critical to improve the lives of all Africans, especially girls and those in rural areas. In this area, public spending and government transfers can only go so far—the voice of Africa’s poorest citizens needs to be heard by policymakers. While maintaining central government oversights, appropriate steps should be taken to increase participation of the beneficiaries of public services.