سه شنبه ۲۰ شهریور ۰۳ | ۲۱:۳۰ ۷ بازديد
Most African countries gained independence in the early 1960s. At that time, their average
income levels were higher than in many Asian countries and on par with some Latin
American countries. Since then, however, Sub-Saharan Africa has become associated with
economic stagnation and persistent poverty. Especially during the so-called ‘lost decades’ of
the 1970s to 1990s poverty rates in Africa rose while other developing regions took large
strides in poverty eradication. Today, many of the poorest countries in the world are found on
the African continent, although there is a significant spread in income levels across countries.
Average regional poverty expressed as the share of the population living in poverty is
declining since the 2000s, but at a slower pace than has been observed in many Asian
countries. Moreover, due to rapid population growth, the total number of Africans living in
poverty has grown and may well continue to rise for decades to come.
Rising poverty levels stand in sharp contrast to the large natural resource wealth and
overwhelming young labour force of many African countries. The rising global and local
demand for agricultural commodities, and mining and forestry resources has not created a
solid basis for sustained poverty reduction. Despite improving pre-conditions for sustained
economic growth and a durable improvement in living standards, the revenues of Africa’s
natural wealth are too often unequally distributed and/or invested in activities that create little
extra jobs for growing numbers of un- and underemployed people. In some countries, such as
Botswana, the governance of national wealth works relatively well and such examples
provide optimism and hope for the future, but in other countries corruption, elite capture and
violent conflicts hamper alleviation of mass poverty.
This chapter focuses on economic forms of poverty, which can be defined in terms of
material living standards. We will discuss two different dimensions of poverty, at the
The History of African Development
www.aehnetwork.org/textbook/
2
national and at the individual level. We will explain how both dimensions are measured and
compared internationally. We will present estimates of absolute poverty and poverty rates
and explore the trends in Africa in a global comparative perspective. While this may sound
straightforward, it is important to note that human wellbeing entails much more than material
conditions. For example, aggregated measures of economic poverty exclude access to health
care and education; environmental sustainability and resilience to climate change;
empowerment and agency; political freedom and acceptance of independent *******ual
orientation, gender, and ethnicity. These aspects remain beyond the scope of this chapter.
Further, this chapter focuses on poverty in Africa since independence. We begin in the 1960s,
a decade that marks African independence and the beginning of annual poverty data provided
by the World Bank. We explore the data up to 2016, which is the most recent year for which
the World Bank offers data on poverty levels.
The chapter is structured as follows. It begins with a discussion on how poverty can be
defined and measured. We then proceed to present global and African poverty trends, which
also entails a discussion of rural versus urban poverty. This is followed by a discussion of
both African and international poverty-mitigating strategies. Finally, we dare to look ahead to
future opportunities and challenges affecting African poverty.
2. Defining and measuring national and individual poverty
Before we can study levels and trends in national and individual poverty we need to
understand how poverty is commonly defined and measured. The definitions we adopt in this
chapter refer to economic poverty, which is usually measured in terms of material living
standards. The most common measures are GDP per capita and the number or share of people
living under the poverty line. Both measures are used by international organisations such as
the United Nations and the World Bank. The advantage of using a widely accepted definition
and measurement standard for all countries in the world is that it facilitates international and
inter-temporal comparisons. The disadvantage is that these measures are rather rough and
miss much of the regional, national and local context that matters for living standards at
communal or personal levels. Moreover, these measures also contain no information on how
the poor perceive their living conditions.
3
What does it mean when we say that a country is “poor”? National poverty is for all intents
and purposes the same as the lack of economic growth. A country’s wealth is measured in
terms of GDP (Gross Domestic Product), which is the total value added to all goods and
services produced in a national economy per year. Because the size of any country’s
economy is related to the number of inhabitants, GDP is commonly divided by total
population to obtain GDP per capita. This measure allows us to compare income levels
across countries and to compute income growth over time. The World Bank classifies
economies into four income groups: lower income (up to US$ 1,005), lower-middle income
(US$ 1,006 - 3,955), upper-middle income (US$ 3,956 - 12,235), and higher income (US$
12,236 and above) (these are official standards for Gross National Income in 2018).
GDP growth is measured as the increase in total value added from one year to the next. GDP
per capita growth is measured as GDP growth divided by population growth. So, for nations
to become richer it is important that growth of GDP outpaces population growth. Yet, growth
in GDP per capita doesn’t necessarily mean a reduction of poverty, defined as the share of
people living at or below the poverty line, because this crucially depends on how national
income and the growth of GDP is distributed across the population. Hence, it is possible to
have inclusive or pro-poor growth, that benefits the society at large, including the poor. But
there are also examples of exclusive growth, which only makes the rich richer.
In general, countries with high GDP per capita levels find it difficult to grow fast. Their
income levels can rise especially because of a steady growth in GDP per capita over time,
without too many years of negative growth. Poor nations, on the contrary, often record higher
rates of GDP growth, which is called catch-up growth, but whether they close the gap with
richer nations crucially depends on the stability and long-term sustainability of their growth
path. Especially in Sub-Saharan Africa, many countries have recorded high rates of GDP
growth in the past 20 years, but also years with considerable set-backs. For instance,
Botswana in the 1970s and Rwanda in the 2000s had spectacular annual growth rates of 11
and 8 percent respectively, but to consolidate these gains and reduce poverty at a structural
level, such episodes of growth have to be continued for many decades.
To compare GDP per capita across countries we need to express income levels in a single
common currency, usually US Dollars (US$). There are two ways to do this. The first is to
4
use exchange rates between the local currency and US$. This has the disadvantage that sharp
fluctuations in exchange rates affect the international comparison of income beyond ‘real’
changes in comparative economic performance. Therefore, the second approach is considered
to be more accurate, since it focusses on changes in domestic prices levels rather than the
value of the national currency. To convert GDP into US$ economists use so-called
Purchasing Power Parities (PPPs). A PPP is constructed by composing a basket of goods and
services and comparing the price levels of this basket across countries. The PPPs thus
obtained can be almost equal to the official exchange rate, but there are also many cases
where the PPPs (relative domestic price level) are considerably lower than the official
exchange rate. In this case using the exchange rate would make the country appear poorer,
and would make the purchasing power of its population appear lower than it really is.
Another way of understanding the difference is that PPPs allow for an estimation of what the
exchange rate between two currencies would have to be, in order to perfectly reflect relative
prices levels in countries.
Individual poverty levels are clearly affected by GDP per capita levels, but also depend on
how income is distributed among national populations. In 2008, the World Bank set a new
standard by defining the extreme poor as people who, on average, live on less than US$ 1.25
per day. Again, PPPs are being used to make this poverty line comparable across countries.
This line changes over time as prices increase, which they tend to do in the long-run. Hence,
in 2015, the World Bank updated its calculation of the cost of a subsistence consumption
basket and increased the global poverty line to US$ 1.90. This poverty line is commonly used
to estimate the number of people living in extreme poverty. Of course, this doesn’t mean that
people who can spend a little bit more than US$ 1.90 per day have escaped from poverty. In
fact, billions of people today are living just above that poverty line, as the numbers of
extreme poor are declining. This trend is also visible in Africa.
But even for those who live on US$ 1.90 the context of poverty matters a lot. Poverty is not a
static condition. Just as individuals can move out of poverty, they can fall back into poverty
again. Many people today who are no longer considered living in poverty have only managed
to improve their incomes on the margin and they are extremely vulnerable to any change in
their incomes. In an effort to address these shortcomings, the United Nations introduced a
Multidimensional Poverty Index (MPI), which measures not only income, but also health,
5
education and some other components of living standards since 2010. Another important
dimension of poverty is how people perceive poverty in relation to the communities and
societies in which they live. Relative poverty refers to people’s living standards as measured
against the average living standards of a particular society. It makes an enormous difference
to be poor in a rich country, or to be poor in a poor country. To be poor in a poor country may
ingrain the poor with a pervasive sense of injustice and be mentally more difficult to cope
with. On the other hand, being poor in a rich country may have the positive side that
opportunities to escape from poverty are larger because social mobility is higher.
3. Poverty trends in Africa
In this section we map and compare African poverty trends using (1) GDP per capita; (2)
levels and shares of populations living in poverty; and (3) rural versus urban poverty. It offers
a comparison between Sub-Saharan Africa and other world regions, and a presentation of a
number of country cases showing the diversity within the region.
3.1 National poverty in a global perspective
Figure 1 presents GDP per capita trends by world region. The OECD countries (Organisation
for Economic Co-operation and Development), the richest countries situated in Europe and
North America, have been placed on the right-hand axis – OECD (black dotted line; axis 0-
US$ 40,000) and the developing regions on the left-hand axis (US$ 0-12,000). The graph
shows that during the past half century, there has been a sharp divergence in GDP per capita
between Sub-Saharan Africa and South Asia and other regions such as Latin America, East
Asia and the OECD countries. Until 1980, GDP per capita in all regions, except the OECD
countries, was below US$ 2,000. However, since the 1980s all world regions except Sub-
Saharan Africa and South Asia, have surpassed the US$ 2,000 benchmark. Latin America and
East and Pacific Asia have grown beyond US$ 8,000.
6
Figure 1: GDP per capita in US-Dollars (log scale) regional trends, 1960-2015
Source: World Bank, World Development Indicators (WDI).
The comparison between regions shows how Sub-Saharan Africa has developed in a global
perspective. In figure 2 we explore the variation within Sub-Saharan Africa. We selected five
countries – Morocco, Mozambique, Nigeria, Tanzania and Zimbabwe – which offer a good
impression of the diversity in growth trajectories. Morocco’s economy took off in the mid-
1980s and has since developed comparatively well. Nigeria follows – after the significant
commodity boom with increasing oil prices in the early 2000s the oil-dependent economy has
experienced significant growth. However, there is a large risk this growth spurt will turn into
a bust if world market prices for oil continue to fall or stabilize at the low levels they have
attained since 2015 - the last year in this graph. The economy of Zimbabwe grew in the 1970s
and 1980s, but has experienced decline and stagnation as a result of the economic and
political turmoil in the 1990s and 2000s. Zimbabwe recovered after 2008, but it is not clear to
which extent the growth rates have been manipulated by the regime – as it is well known that
there are reliability issues with many African income statistics. Mozambique has been
entrenched in a long civil war up to the 1990s and has recovered slightly in the years of peace
since 2000, but the growth of GDP has been partly erased by rapid population growth. In
Tanzania population growth remained high as well, but GDP growth has been more
impressive than in Mozambique, so that there was a notable divergence in per capita growth
in these neighbouring countries in the past decade (2005-2015).
7
Figure 2: GDP per capita trends in 5 African countries, 1960-2015
Source: World Bank, World Development Indicators (WDI).
Figure 3: The 15 poorest African countries in 2016
Source: World Bank, World Development Indicators (WDI).
8
While the commodity boom since the mid-1990s has led to considerable economic growth in
many African countries, it has not yet been enough to reduce the number of poor countries
significantly. Figure 3 shows the poorest 15 African economies in the year 2016. At the
bottom we find Burundi and the Central African Republic, Malawi, and Niger with a GDP
per capita lower than US$ 400.
3.2 Individual poverty in a global perspective
Figure 4 presents the total number of people living in poverty by world region. It reveals that
global poverty levels have been falling at impressive rates since the early 1990s. Between
1987 and 2013, the number of extreme poor more than halved from 1.7 billion to 766 million
people. By 2013, the most recent years for which reliable data exist, 11 percent of the world’s
population was living in poverty compared to 35 percent in 1987. During the past quarter of a
century, poverty has fallen in particular in Asia and Latin America. East Asia (bottom) and
South Asia (second from top) have been largely responsible for this dramatic decline. China
alone is responsible for two-thirds of the overall drop in poverty between 1987 and 2013.
India, Indonesia and Vietnam are also seeing poverty gradually disappear. Yet, the total
number of Africans living in poverty (red top area) has increased from 250 million in 1987 to
390 in 2013. Half of the world’s population living in poverty are now thought to be African.
Figure 4: Total population living in poverty by world region, 1987-2013
Source: World Bank, World Development Indicators (WDI).
9
While Figure 4 displayed absolute poverty levels, Figure 5 compares the percentage share of
the African population living on or less than US$ 1.90 (thick red line), i.e. the poverty rate,
with other world regions. It shows that globally, the share of populations living in poverty has
been in decline since the 1980s. Most impressive has been the decline in East Asia and
Pacific and South Asia, but also Latin America more than halved its poverty rate. Figure 5
also shows that Africa’s poverty rate has fallen from 51 percent in 1981 to 41 percent in
2013. Thus, while absolute poverty in Sub-Saharan Africa remains on the rise, relative
poverty levels have been declining. This paradoxical situation can be explained by the fact
that relative poverty rates are not declining fast enough to outweigh Africa’s rapid population
growth (by about 2.5 percent a year, compared with 1 percent for Asia). Hence, the number
of Africans living in poverty today (2018) is higher than it was in the 1990s. No doubt, while
the reduction in relative poverty can be seen as a positive trend in line with the renewed
growth experience of many African economies after 1995, poverty remains a major
development challenge for the region for decades to come
income levels were higher than in many Asian countries and on par with some Latin
American countries. Since then, however, Sub-Saharan Africa has become associated with
economic stagnation and persistent poverty. Especially during the so-called ‘lost decades’ of
the 1970s to 1990s poverty rates in Africa rose while other developing regions took large
strides in poverty eradication. Today, many of the poorest countries in the world are found on
the African continent, although there is a significant spread in income levels across countries.
Average regional poverty expressed as the share of the population living in poverty is
declining since the 2000s, but at a slower pace than has been observed in many Asian
countries. Moreover, due to rapid population growth, the total number of Africans living in
poverty has grown and may well continue to rise for decades to come.
Rising poverty levels stand in sharp contrast to the large natural resource wealth and
overwhelming young labour force of many African countries. The rising global and local
demand for agricultural commodities, and mining and forestry resources has not created a
solid basis for sustained poverty reduction. Despite improving pre-conditions for sustained
economic growth and a durable improvement in living standards, the revenues of Africa’s
natural wealth are too often unequally distributed and/or invested in activities that create little
extra jobs for growing numbers of un- and underemployed people. In some countries, such as
Botswana, the governance of national wealth works relatively well and such examples
provide optimism and hope for the future, but in other countries corruption, elite capture and
violent conflicts hamper alleviation of mass poverty.
This chapter focuses on economic forms of poverty, which can be defined in terms of
material living standards. We will discuss two different dimensions of poverty, at the
The History of African Development
www.aehnetwork.org/textbook/
national and at the individual level. We will explain how both dimensions are measured and
compared internationally. We will present estimates of absolute poverty and poverty rates
and explore the trends in Africa in a global comparative perspective. While this may sound
straightforward, it is important to note that human wellbeing entails much more than material
conditions. For example, aggregated measures of economic poverty exclude access to health
care and education; environmental sustainability and resilience to climate change;
empowerment and agency; political freedom and acceptance of independent *******ual
orientation, gender, and ethnicity. These aspects remain beyond the scope of this chapter.
Further, this chapter focuses on poverty in Africa since independence. We begin in the 1960s,
a decade that marks African independence and the beginning of annual poverty data provided
by the World Bank. We explore the data up to 2016, which is the most recent year for which
the World Bank offers data on poverty levels.
The chapter is structured as follows. It begins with a discussion on how poverty can be
defined and measured. We then proceed to present global and African poverty trends, which
also entails a discussion of rural versus urban poverty. This is followed by a discussion of
both African and international poverty-mitigating strategies. Finally, we dare to look ahead to
future opportunities and challenges affecting African poverty.
2. Defining and measuring national and individual poverty
Before we can study levels and trends in national and individual poverty we need to
understand how poverty is commonly defined and measured. The definitions we adopt in this
chapter refer to economic poverty, which is usually measured in terms of material living
standards. The most common measures are GDP per capita and the number or share of people
living under the poverty line. Both measures are used by international organisations such as
the United Nations and the World Bank. The advantage of using a widely accepted definition
and measurement standard for all countries in the world is that it facilitates international and
inter-temporal comparisons. The disadvantage is that these measures are rather rough and
miss much of the regional, national and local context that matters for living standards at
communal or personal levels. Moreover, these measures also contain no information on how
the poor perceive their living conditions.
What does it mean when we say that a country is “poor”? National poverty is for all intents
and purposes the same as the lack of economic growth. A country’s wealth is measured in
terms of GDP (Gross Domestic Product), which is the total value added to all goods and
services produced in a national economy per year. Because the size of any country’s
economy is related to the number of inhabitants, GDP is commonly divided by total
population to obtain GDP per capita. This measure allows us to compare income levels
across countries and to compute income growth over time. The World Bank classifies
economies into four income groups: lower income (up to US$ 1,005), lower-middle income
(US$ 1,006 - 3,955), upper-middle income (US$ 3,956 - 12,235), and higher income (US$
12,236 and above) (these are official standards for Gross National Income in 2018).
GDP growth is measured as the increase in total value added from one year to the next. GDP
per capita growth is measured as GDP growth divided by population growth. So, for nations
to become richer it is important that growth of GDP outpaces population growth. Yet, growth
in GDP per capita doesn’t necessarily mean a reduction of poverty, defined as the share of
people living at or below the poverty line, because this crucially depends on how national
income and the growth of GDP is distributed across the population. Hence, it is possible to
have inclusive or pro-poor growth, that benefits the society at large, including the poor. But
there are also examples of exclusive growth, which only makes the rich richer.
In general, countries with high GDP per capita levels find it difficult to grow fast. Their
income levels can rise especially because of a steady growth in GDP per capita over time,
without too many years of negative growth. Poor nations, on the contrary, often record higher
rates of GDP growth, which is called catch-up growth, but whether they close the gap with
richer nations crucially depends on the stability and long-term sustainability of their growth
path. Especially in Sub-Saharan Africa, many countries have recorded high rates of GDP
growth in the past 20 years, but also years with considerable set-backs. For instance,
Botswana in the 1970s and Rwanda in the 2000s had spectacular annual growth rates of 11
and 8 percent respectively, but to consolidate these gains and reduce poverty at a structural
level, such episodes of growth have to be continued for many decades.
To compare GDP per capita across countries we need to express income levels in a single
common currency, usually US Dollars (US$). There are two ways to do this. The first is to
use exchange rates between the local currency and US$. This has the disadvantage that sharp
fluctuations in exchange rates affect the international comparison of income beyond ‘real’
changes in comparative economic performance. Therefore, the second approach is considered
to be more accurate, since it focusses on changes in domestic prices levels rather than the
value of the national currency. To convert GDP into US$ economists use so-called
Purchasing Power Parities (PPPs). A PPP is constructed by composing a basket of goods and
services and comparing the price levels of this basket across countries. The PPPs thus
obtained can be almost equal to the official exchange rate, but there are also many cases
where the PPPs (relative domestic price level) are considerably lower than the official
exchange rate. In this case using the exchange rate would make the country appear poorer,
and would make the purchasing power of its population appear lower than it really is.
Another way of understanding the difference is that PPPs allow for an estimation of what the
exchange rate between two currencies would have to be, in order to perfectly reflect relative
prices levels in countries.
Individual poverty levels are clearly affected by GDP per capita levels, but also depend on
how income is distributed among national populations. In 2008, the World Bank set a new
standard by defining the extreme poor as people who, on average, live on less than US$ 1.25
per day. Again, PPPs are being used to make this poverty line comparable across countries.
This line changes over time as prices increase, which they tend to do in the long-run. Hence,
in 2015, the World Bank updated its calculation of the cost of a subsistence consumption
basket and increased the global poverty line to US$ 1.90. This poverty line is commonly used
to estimate the number of people living in extreme poverty. Of course, this doesn’t mean that
people who can spend a little bit more than US$ 1.90 per day have escaped from poverty. In
fact, billions of people today are living just above that poverty line, as the numbers of
extreme poor are declining. This trend is also visible in Africa.
But even for those who live on US$ 1.90 the context of poverty matters a lot. Poverty is not a
static condition. Just as individuals can move out of poverty, they can fall back into poverty
again. Many people today who are no longer considered living in poverty have only managed
to improve their incomes on the margin and they are extremely vulnerable to any change in
their incomes. In an effort to address these shortcomings, the United Nations introduced a
Multidimensional Poverty Index (MPI), which measures not only income, but also health,
education and some other components of living standards since 2010. Another important
dimension of poverty is how people perceive poverty in relation to the communities and
societies in which they live. Relative poverty refers to people’s living standards as measured
against the average living standards of a particular society. It makes an enormous difference
to be poor in a rich country, or to be poor in a poor country. To be poor in a poor country may
ingrain the poor with a pervasive sense of injustice and be mentally more difficult to cope
with. On the other hand, being poor in a rich country may have the positive side that
opportunities to escape from poverty are larger because social mobility is higher.
3. Poverty trends in Africa
In this section we map and compare African poverty trends using (1) GDP per capita; (2)
levels and shares of populations living in poverty; and (3) rural versus urban poverty. It offers
a comparison between Sub-Saharan Africa and other world regions, and a presentation of a
number of country cases showing the diversity within the region.
3.1 National poverty in a global perspective
Figure 1 presents GDP per capita trends by world region. The OECD countries (Organisation
for Economic Co-operation and Development), the richest countries situated in Europe and
North America, have been placed on the right-hand axis – OECD (black dotted line; axis 0-
US$ 40,000) and the developing regions on the left-hand axis (US$ 0-12,000). The graph
shows that during the past half century, there has been a sharp divergence in GDP per capita
between Sub-Saharan Africa and South Asia and other regions such as Latin America, East
Asia and the OECD countries. Until 1980, GDP per capita in all regions, except the OECD
countries, was below US$ 2,000. However, since the 1980s all world regions except Sub-
Saharan Africa and South Asia, have surpassed the US$ 2,000 benchmark. Latin America and
East and Pacific Asia have grown beyond US$ 8,000.
Figure 1: GDP per capita in US-Dollars (log scale) regional trends, 1960-2015
Source: World Bank, World Development Indicators (WDI).
The comparison between regions shows how Sub-Saharan Africa has developed in a global
perspective. In figure 2 we explore the variation within Sub-Saharan Africa. We selected five
countries – Morocco, Mozambique, Nigeria, Tanzania and Zimbabwe – which offer a good
impression of the diversity in growth trajectories. Morocco’s economy took off in the mid-
1980s and has since developed comparatively well. Nigeria follows – after the significant
commodity boom with increasing oil prices in the early 2000s the oil-dependent economy has
experienced significant growth. However, there is a large risk this growth spurt will turn into
a bust if world market prices for oil continue to fall or stabilize at the low levels they have
attained since 2015 - the last year in this graph. The economy of Zimbabwe grew in the 1970s
and 1980s, but has experienced decline and stagnation as a result of the economic and
political turmoil in the 1990s and 2000s. Zimbabwe recovered after 2008, but it is not clear to
which extent the growth rates have been manipulated by the regime – as it is well known that
there are reliability issues with many African income statistics. Mozambique has been
entrenched in a long civil war up to the 1990s and has recovered slightly in the years of peace
since 2000, but the growth of GDP has been partly erased by rapid population growth. In
Tanzania population growth remained high as well, but GDP growth has been more
impressive than in Mozambique, so that there was a notable divergence in per capita growth
in these neighbouring countries in the past decade (2005-2015).
Figure 2: GDP per capita trends in 5 African countries, 1960-2015
Source: World Bank, World Development Indicators (WDI).
Figure 3: The 15 poorest African countries in 2016
Source: World Bank, World Development Indicators (WDI).
While the commodity boom since the mid-1990s has led to considerable economic growth in
many African countries, it has not yet been enough to reduce the number of poor countries
significantly. Figure 3 shows the poorest 15 African economies in the year 2016. At the
bottom we find Burundi and the Central African Republic, Malawi, and Niger with a GDP
per capita lower than US$ 400.
3.2 Individual poverty in a global perspective
Figure 4 presents the total number of people living in poverty by world region. It reveals that
global poverty levels have been falling at impressive rates since the early 1990s. Between
1987 and 2013, the number of extreme poor more than halved from 1.7 billion to 766 million
people. By 2013, the most recent years for which reliable data exist, 11 percent of the world’s
population was living in poverty compared to 35 percent in 1987. During the past quarter of a
century, poverty has fallen in particular in Asia and Latin America. East Asia (bottom) and
South Asia (second from top) have been largely responsible for this dramatic decline. China
alone is responsible for two-thirds of the overall drop in poverty between 1987 and 2013.
India, Indonesia and Vietnam are also seeing poverty gradually disappear. Yet, the total
number of Africans living in poverty (red top area) has increased from 250 million in 1987 to
390 in 2013. Half of the world’s population living in poverty are now thought to be African.
Figure 4: Total population living in poverty by world region, 1987-2013
Source: World Bank, World Development Indicators (WDI).
While Figure 4 displayed absolute poverty levels, Figure 5 compares the percentage share of
the African population living on or less than US$ 1.90 (thick red line), i.e. the poverty rate,
with other world regions. It shows that globally, the share of populations living in poverty has
been in decline since the 1980s. Most impressive has been the decline in East Asia and
Pacific and South Asia, but also Latin America more than halved its poverty rate. Figure 5
also shows that Africa’s poverty rate has fallen from 51 percent in 1981 to 41 percent in
2013. Thus, while absolute poverty in Sub-Saharan Africa remains on the rise, relative
poverty levels have been declining. This paradoxical situation can be explained by the fact
that relative poverty rates are not declining fast enough to outweigh Africa’s rapid population
growth (by about 2.5 percent a year, compared with 1 percent for Asia). Hence, the number
of Africans living in poverty today (2018) is higher than it was in the 1990s. No doubt, while
the reduction in relative poverty can be seen as a positive trend in line with the renewed
growth experience of many African economies after 1995, poverty remains a major
development challenge for the region for decades to come
dfs3434