Public Finance, Micro Finance and Accelerated Economic Development for the Eradication of Extreme Poverty in Sub Sahara Africa

Abstract

According to the World Bank, in 2011, 415 million, that is 41.5 percent of the world’s extremely poor, living on less than $1.25 a day, live in Saharan Africa. A situation where more than 415 million people in a sub region of the world still live in abject poverty should be of global concern not only because of the moral imperative but also because of the lost economic contributions. This paper examines the decline or increase in extreme poverty situation in 34 countries in Sub Sahara Africa during the period 1992 and 2012 or for the years in the period where data is available. It also attempts to identify and evaluate the factors that lead to decrease or increase in extreme poverty in selected countries. We find that three of the countries, South Africa, Botswana and Namibia achieved fifty percent or more reduction in extreme poverty and that six countries, Sao Tome and Principe, Cote d'Ivoire, Madagascar, Zambia, Kenya and Benin experienced increase in extreme poverty during the period. The factors that led to extreme poverty reduction and increase for these countries were identified. Recommendations were made for effective poverty reduction in Sub-Sahara Africa.