Development In African Countries Research Articles

Economic Implications of Business Dynamics for KE-Associated Economic Growth and Inclusive Development in African Countries

This paper develops an empirically-relevant framework (a) to examine whether or not the African business environment hinders or promotes the knowledge economy (KE), (b) to determine how the KE which emerges from such an environment affects economic growth, and (c) how growth in turn relates to the ‘inclusive development’ of 53 African countries during the 1996-2010 time period. The framework provides a modest guide to policymaking about, and further research into, such relationships. We implement the framework by building a three-stage model and rationalizing it as five interrelated hypotheses. To allow greater concentration on the issues that are themselves already complex, our model is very simple, but clear. For example, we make neither an attempt to evaluate causality nor to test for it, even though we suspect the links to be multi-directional – opportunity costs are everywhere. Instead we focus on fundamental relationships between the dynamics of starting business and doing business as expressed in the state of KE, and through it to the inclusive development via the economic growth of those countries. Estimation results indicate that the dynamics of starting and doing business explain strongly a large part of variations in KE. The link between KE and economic growth exists, but it is weak, and we provide plausible reasons for such a result. Despite the weak association between KE and economic growth, KE-influenced growth plays a very important role in inclusive development. In fact, growth of this kind has stronger effects on inclusive development and by implication on poverty reduction, than some of conventional controls in this study such as FDI, foreign aid, and even private investment. There is clearly room for further research to improve the results, but just as clearly practical policy is best served by not neglecting the relationships examined in this paper.

Korean Bilateral Official Development Assistance to Africa Under Korea's Initiative for Africa's Development

In the past several years, the Republic of Korea—a former least developed country (LDC) and aid recipient that became a donor—joined the “club of emerging donors” to Africa. In March 2006, President Roh Moohyun declared Korea's Initiative for Africa's Development. The initiative puts poverty reduction and socioeconomic development of African countries in the forefront. Using pooled cross-sectional time series data, in this study we examine the determinants of Korean bilateral official development assistance (ODA) to Africa for the period 1991–2011. The findings of the study suggest that the approach of Korean ODA does not differ significantly from that of many conventional donors whose ODA disbursement has had a dual purpose: to improve the welfare of developing countries and to serve self-interests.

Vocational Skills Development for Youths in the Informal Sector of the Economy in Africa

It is generally recognised that the development of relevant skills is an important instrument for improving productivity and working conditions, and the promotion of decent work in the informal economy, which represents the major employer in Africa. The increasing recognition that higher technical and vocational skills are crucial in enhancing competitiveness and contributing to social inclusion, decent employment, and poverty reduction has been a strong incentive for reform. African countries are therefore working towards improving the quality and skills levels of their labour forces. This is being facilitated through the Technical and Vocational Training Institutes. Education and skills can open doors to economically and socially rewarding jobs and can help the development of small informal-sector businesses, allow the re-insertion of displaced workers and support the transition from school to work for school drop-outs and graduates. Ultimately, developing job-related competencies among the poor, the youth and the vulnerable is recognised as crucial to progress in economic development and reducing poverty. The challenge is now to scale-up on the basis of successful pilot programmes. The number of enterprises capable of offering work-place training opportunities is limited, while many training institutions have poor delivery capacity and commonly lack funding. In turn, training programmes do not produce skilled graduates because training is of poor quality and the equipment obsolete. Many youths cannot access formal TVET, and few countries have training policies which emphasise skills development in the informal sector. Other obstacles include the low prestige of formal TVET in the eyes of the general public and parents who consider it to be an option suitable only for pupils who perform poorly in general education. This paper aims at providing a picture of technical and vocational skills development in African countries, exploring challenges and bottlenecks, highlighting good practices, and identifying priorities for further research. Specifically, the objectives will be to (a) update knowledge about the status of technical - vocational education and training in the African region, (b) explore issues and recent developments, and (c) distil a set of lessons and policy messages to guide skills development in the region. The focus of the analysis will be on the economics of skills development. Provision of financing of TVET will be examined through the lens of economic efficiency, balanced with attention to social equity.

Reconstructing African democracies for development in Africa through efficient communication and media engagement

This article describes pitfalls experienced by the population and governments of African countries in their struggle to build democratic institutions and improve their own wellbeing. It describes poor communication among groups, corruption in the ruling party and the ambiguous role of observer missions and the media among the obstacles to democratic promotion. It also examines the mitigating impact of expatriates and African Diasporans’ participation in the democratic processes of their country of origin, and shows the extent to which Western and American models of democracy and internal practices of the ruling party and observer missions during elections have become deterrents of ‘progressive democracy’ in the countries. The paper then offers suggestions for progressive democracy, arguing that the practice of traditional governing methods, the respect for global peace, protection of indigenes’ personal interest and ‘compensation’ to local prospective voters, not the hardcore capitalist doctrine, are required to foster progressive democracy and expedite socio economic development in African countries. Key words: poor communication, progressive, democracy, media, interventions

아프리카의 농업기술보급체계와 농업기술협력 전략 -에티오피아와 우간다를 중심으로-

본 연구는 아프리카 지역의 농업기술보급체계를 진단하고, 보급체계의 발전방향 및 개발원조 전략을 제시함으로써 ODA(Official Development Assistance)를 통한 아프리카 농업기술전수의 효과성 제고에 기여하고자 한다. 기존의 대(對)아프리카 농업원조는 아프리카의 농업이 내포하고 있는 '다양성'과 '복잡성'의 가치를 간과한 채 진행되어 왔으며, 막대한 원조금액의 기대와 달리, 아프리카의 농업발전은 답보 상태에 놓여 있다. 본 연구는 농업기술보급체계 및 ODA사업 전략의 아프리카화(Africanization) 논의를 제기하고 있으며, 설문조사 일변도의 미시적 시각에서 나아가 사례국가별 농업기술보급체계의 거시적 특성을 분석하고 있다. 연구 결과, 사례국가의 기술보급체계는 조직과 기능에 따라 상이한 특성을 지니고 있으며, 이에 기술보급체계의 주체별 역할 세분화와 기능별 역량 분석 내용 또한 차별적으로 구성되었다. 에티오피아의 경우, 정부조직의 규모별로 하향식 농업기술보급체계가 구축되어 있으며, 전달체계의 최종행위자인 농민집단의 참여가 확대되고 있다. 그러나 여전히 기술전달을 통한 생산성 향상 등의 기능보다는 농가경영적인 측면에 치중되어 있어, 전달 기술의 효과적인 활용이 결여되어 있는 실정이다. 반면 우간다의 사례에서는 전 기관을 포괄하는 참여적 지도체계가 구축되어 있으나, 기술지도의 시급성에도 불구하고 지도 역할보다는 연구 기능의 확대에 투자가 집중되어 있음이 규명되었다. 상기 연구결과는 현 농업기술보급체계의 개선과 이를 토대로 한 농업기술전수사업의 수행이 아프리카 농업 농촌 ODA사업의 효과성 제고와 농업침체의 문제를 해결하기 위한 필요조건임을 논증하고 있다. The purpose of the present study is to improve the effectiveness of Korea's ODA projects on agricultural technology transfer to Africa. This study investigates agricultural extension system of African countries and provides a direction of the systematic strategies of the Korean ODAs on agricultural technology. This study pays particular attention on Africanization of agricultural technology transfer of the Korean ODA strategies. Unlike the previous studies focusing mainly on micro level investigation on the ODA strategy development, the present study incorporates the agricultural technology dissemination system of Ethiopia and Uganda in a macro perspective to develop a desirable form of the ODA strategy. The findings illustrate that the technology dissemination systems of the case countries have different characteristics depending on the function and organization of extension agency. And their functional capability and role segmentation by the extension agency are differently configured, too. In case of Ethiopia, top-down structure for the agricultural extension system has been built. Farmers' group and field agent of the information delivery system has expanded their participation into the system. However, we also find that the system of Ethiopia still lacks effective use of its existing technology, since it puts more emphasis on management aspects than improvement of agricultural productivity for farmers. On the other hand, even though Uganda has established participatory extension system that encompasses the entire agencies of the extension system, government efforts to enhance the extension system are still concentrated on expanding research functions rather than technical dissemination. The results imply that promoting and strengthening localization of the ODA strategy has to be developed to make localization policy of the Korean ODA. The present study concludes with some specific policy implications for necessary conditions of the agricultural development in African countries.

Trade, Institutions, Income and Human Development in African Countries

Analysing panel data for the period 1975–2001 from a large group of African countries, we find that trade and institutions (political rights, civil liberties and the rule of law) exert little influence on human development in the form of literacy. Interestingly, income appears to be, by far, the primary determinant of human development, measured by literacy and life expectancy, but with strong diminishing returns. Income also positively affects institutions, although there is a threshold effect, in the cases of political rights and civil liberties. Finally, the paper finds that trade and literacy exercise positive and negative effects, respectively, on political rights.

African cognitive ability: Research, results, divergences and recommendations

In the past different researchers have come to diverging cognitive ability estimates for people in Africa and of African descent. The paper tries to check the validity of past results by comparing them with outcomes of two new psychometric test studies from East and South Africa; with results from student assessment studies; with predictions based on those variables which, outside Africa, correlate most strongly with intelligence; and by comparing them with further indicators of cognitive ability (descriptions of everyday life and human accomplishment). Integrating these cognitive ability measures with the application of several corrections (due to the higher age of students in Africa, lower African school enrollment, selectivity of samples and higher African secular IQ rise), the best guess for an African average is IQ 75. Finally, possible environmental and genetic (evolutionary, therefore past environmental) causes are discussed and suggestions are given how to enhance cognitive development in African countries.

E-Commerce in Africa: Challenges and Solutions

Abstract Trade in Africa has the potential to be revolutionized by Information Communication Technologies (ICTs), which have led to the development of e-commerce. These technologies have the capacity to boost intra-country and inter-country trade and subsequently promote economic development in African countries. However, many African States are yet to reap the full benefits of e-commerce, as it has not penetrated the continent to the extent experienced by Western countries. The lack of adequate ICT infrastructure, lack of basic ICT knowledge and threat of cybercrimes has created a significant barrier to the adoption and growth of e-commerce in many African countries. This article analyses the persisting digital divide barriers that have inhibited the penetration of e-commerce in Africa and suggests regulatory solutions to resolving them.

Poverty Alleviation in the People's Republic of China: The Implications for Sino–African Cooperation in Poverty Reduction

Abstract: In the last thirty years, remarkable achievements have been made in China's poverty reduction course. The dramatic fall in China's poor can be attributed mainly to a high rate of economic growth, government poverty reduction policies and targeted programmes and pro‐poor macroeconomic and industrial policies. This paper focuses on China's poverty reduction policies and programmes and their impact on the poor regions and poor households. Lessons are drawn for poverty reduction and economic development in African countries. The paper also explores the potential for collaboration in poverty reduction between China and African countries and recommendations are made for the governments and donor agencies.

When CSR Worlds Integrate - Shifting the Paradigm to Achieve Private Sector Growth Building African Internal Markets

Embedding Corporate Social Responsibility (CSR) in business can have a profound impact on private sector growth in developing countries and achievement of national development objectives, including Millennium Development Goals (MDGs). First, however, one needs to understand the various guises under which companies demonstrate their CSR credentials and how global businesses demonstrate their CSR agenda in developing countries. Indeed, there can be as many perspectives of CSR as there are sectors and stakeholders.This article highlights few examples from agriculture, mining and health to show how businesses can have a direct impact on development in African countries, and by extension internal markets. Of necessity, therefore, discussions on CSR in developing countries and economies in transition cannot seek to follow the path evolved in developed countries. Instead of leaving it to investors and members of the public concerned with ethical, social and/or environmental issues to drive discussions on CSR, there is a clear role for policy makers in developing countries to support the CSR agenda. Such support can be through creation of investment policies that result in even greater positive impacts of CSR strategies of multinational companies on national development objectives, including targets under the Millennium Development Goals. It is in this context that opportunities abound for the worlds of CSR to merge in support of CSR, support that can enhance private sector growth and development in Africa.The CSR activities of businesses, therefore, can have direct impacts on achieving national development objectives in many countries. For some, however, the balance in the respective roles of governments and private investors can be highly sensitive. Opportunities for businesses to be given incentives for Beyond Best Practice should not be viewed as governments using CSR strategies as a way of abdicating responsibility to provide basic facilities to citizens. Neither should it be viewed as being subject to the fluid CSR strategies and/or action plans of private investors. These actions can result not only in strengthening the private sector and internal markets but in the creation of opportunities to reduce extreme poverty and hunger, increase enterprise and job creation, ensure environmental sustainability and in the process strengthen engagement among governments, businesses and communities in support of national development objectives and improved livelihoods of citizens.

The African Peer Review Mechanism: Lessons from the pioneers, by Ross Herbert and Steven Gruzd

The African Peer Review Mechanism (the APRM) was created to improve governance by assessing democracy and political governance, economic governance and management, corporate governance, and socio-economic development in African countries. Herbert and Gruzd call it ‘unprecedented’ in scope and depth, and ‘the most innovative and audacious element’ (p. 4) in the New Partnership for Africa’s Development (NEPAD). The authors describe the APRM in detail and give case studies of the initial country reviews of Ghana, Kenya, Rwanda, Mauritius, and South Africa. We are told that the requirements for the reviews are set out in several documents, with later documents contradicting earlier documents, which have not been repealed. Officials preparing reports for the APRM and others contributing to them are advised to rely on guidance from APRM Secretariat officials. Five steps are indentified for preparing reports. First, a country conducts its own in-depth assessment, with broad public input, leading to a country self-assessment report and Programme of Action to fix gaps in governance. To do this the country is expected to establish a Commission and Secretariat and identify a National APRM Focal Point (typically a government minister) and technical research institutions. The Africa regional APRM Secretariat and ‘Strategic Partners’ help by sending a support mission to ensure that ‘civil society’ and business take part fully, using an 88-page questionnaire ‘with 25 objectives, 58 questions on governance issues and 183 indicators’, with ‘many questions requiring in-depth research’.

Sustainable knowledge for sustainable development: challenges and opportunities for African development

Sustainable development is becoming increasingly a major concern for African Countries. They need a relatively high rate of growth of GDP to solve the many problems of poverty and underdevelopment, while insuring sustainability to their economies. At the same time, it is increasingly recognised that sustainability requires more and more knowledge assets and capabilities. This paper aims at showing the difficulty in attaining sustainable development for African countries with a weak technological and knowledge base. It deals first with the issue of knowledge systems and knowledge economy and their links with sustainability from a conceptual point of view. It highlights the specific situation of African countries stressing the difficulties they meet in this respect in a second section. This paper then shows how knowledge capabilities are highly correlated with levels of sustainability using knowledge and sustainability indexes. The discussion addresses technology transfer and innovation as key elements of knowledge, while the conclusion explores some of the opportunities.

How can economic and political liberalisation improve financial development in African countries?

The objective of this paper is to study the interactions between Economic liberalisation, Political liberalisation and Financial development in African countries. More specifically, we seek to establish the impact of Economic, Political and institutional openness on financial deepening. The empirical approach will be two-step procedure, first using a difference in difference method to show the various aspect of financial liberalisation on economic and political freedom while the second step will be using panel data techniques from period 1990 to 2005. The estimation results can be summarised as the following, first, Economic and financial liberalisation did account significantly for the financial development performance. While political stability show a positive overall effect on financial development, the association with Political freedom is consistent only after controlling the endogeneity of Political freedom on financial development. This result indicates that the transformation of the political and economic environment has improved the performance of the financial sector.

How can economic and political liberalisation improve financial development in African countries?

The objective of this paper is to study the interactions between economic liberalisation, political liberalisation and financial development in African countries. More specifically, we seek to establish the impact of economic, political and institutional openness on financial deepening. The empirical approach will be two-step procedure, first using a difference in difference method to show the various aspect of financial liberalisation on economic and political freedom while the second step will be using panel data techniques from period 1990 to 2005. The estimation results can be summarised as the following, first, Economic and financial liberalisation did account significantly for the financial development performance. While political stability show a positive overall effect on financial development, the association with Political freedom is consistent only after controlling the endogeneity of Political freedom on financial development. This result indicates that the transformation of the political and economic environment has improved the performance of the financial sector.

Promoting women and minorities owned enterprises in African countries.

This paper attempts to examine the key issues relating to African women and minority owned enterprises development in the context of its relationship with economic development. The analysis is further broadened to underscore the determinants of women entrepreneurship development and the environment conducive for its operations. In addition, the policies that are necessary to make this environment favorable are discussed. The generic constraints faced are also listed out. The paper shows the need to accelerate economic development in African countries through promotion of women and majorities owned enterprises. Entrepreneurial orientations should be based on stimulating local entrepreneurial talent and subsequent growth of indigenous companies. This in turn would create jobs and add economic value to the region and at the same time keep scarce resources within the region. The paper recommends that African women and minority owned enterprises should be encouraged and taught to develop new entrepreneurial life styles, capacities, develop global sensitivity and strategic thinking capabilities. Therefore, greater gender equality, better institutions and more efficient economic functioning could possibly lead to access to opportunities, rights and voice.

The impact of HIV/AIDS on human development in African countries

BackgroundIn the present paper, we consider the impact of HIV/AIDS on human development in African countries, showing that, beyond health issues, this disease should and must be seen as a global development concern, affecting all components of human development. Consequently, we stress the necessity of multidisciplinary approaches that model, estimate and predict the real impact of HIV/AIDS on human development of African countries in order to optimise the strategies proposed by national countries, international institutions and their partners.MethodsIn our search strategy, we relied on secondary information, mainly through National Human Development Reports of some African countries and regular publications released by the United Nations (UN), United Nations Development Programme (UNDP), World Health Organization (WHO) and the World Bank. We restricted ourselves to reports dealing explicitly with the impact of HIV/AIDS on human development in African countries.Results and discussionHIV/AIDS is affecting the global human development of African countries through its devastating impact on health and demographic indicators such as life expectancy at birth, healthcare assistance, age and sex distribution, economic indicators like income, work force, and economic growth, education and knowledge acquisition and other indicators like governance, gender inequality and human rights.ConclusionOn the basis of the national reports reviewed, it appears clearly that HIV/AIDS is no longer a crisis only for the healthcare sector, but presents a challenge to all sectors. Consequently, HIV/AIDS is a development question and should be viewed as such. The disease is impeding development by imposing a steady decline in the key indicators of human development and hence reversing the social and economic gains that African countries are striving to attain. Being at the same time a cause and consequence of poverty and underdevelopment, it constitutes a challenge to human security and human development by diminishing the chances of alleviating poverty and hunger, achieving universal primary education, promoting gender equality, reducing child and maternal mortality, and ensuring environmental sustainability.

Motivation-related values across cultures

There has been general upsurge in cultures and managerial research in the last decades or so. Despite this fact, empirical studies on culture dimensions to management practices across cultures have been limited in numbers and scope. In Africa, for example, we have very limited knowledge about its cultural values and the consequences it poses for motivation. In order to address this very crucial and important issue, motivation-related values were studied in four European countries (France, Italy, Netherlands and Scotland) and one African (Nigeria) country through survey questionnaire. A major research question was whether the results could help to explain the disappointing economic development of African countries, including Nigeria. The findings do confirm profound differences in cultural values for motivation among the five countries with collective interest playing a more important role in Africa-Nigeria. In view of these differences, untrimmed Western management models may not be very appropriate for adoption in Nigeria in particular and Africa in general without recourse to the prevailing local cultural values. The suggestion is made to look for appropriate and suitable African management models by studying the relatively more successful local companies and institutions. Key words: Motivation, management, cultures, values.

‘We need more independent women’

The increase of women's participation in all sectors of life is not only needed for the development of African countries it is also crucial to ensuring that both women and men can fully exercise their human rights. The importance of competent women in policymaking positions at all leadership levels can therefore not be over-emphasised when it comes to creating ways of promoting women's emancipation in Africa.

Globalization and Nepad’s Development Perspective

This article describes the cultural and political history of Africa’s contribution to the globalization process, revisits the conceptual and pragmatic relationship between globalization and development, and offers solutions, drawing from published materials retrieved from the Web, libraries, and original New Partnership for Africa’s Development (NEPAD)sources. Further, it examines the connection between audience agenda setting, international investment, and NEPAD’s plan for the application of information and communication technology toward the social and economic development of African countries and offers suggestions to NEPAD governing bodies on how to use local sites, business entities, and technology to realize its objectives

TICAD after 10 Years: A Preliminary Assessment and Proposals for the Future

Abstract Ten years have passed since the first Tokyo International Conference on African Development (TICAD) was held in 1993. Since then, TICAD II, III, and Ministerial Level Meetings followed with each meeting producing either internationally agreed upon documents or action plans. There are many similar initiatives for development of African countries. In fact, cynics in and out of Africa castigate TICAD and other international initiatives as waste of time and energy because they have not been associated with any useful and concrete projects and the overall growth of Africa. This paper sets out to assess positive contributions that have been made by international initiatives including TICAD. The premise of this paper is that we are all in the game of globalization and development of Africa is a sub-game of globalization. Any game is played by the rules. Functions of international conferences for development could be defined in terms of setting development rules, guiding strategies and providing opportunities to build capacity for development. The paper examines what TICAD has offered to African countries as well as international community over ten years within this simple framework of analysis.