Transcript 2010 Dialogue with the UNGA Second Committee Growth with

Economic Commission for Africa
2010 Dialogue with the UNGA Second Committee
Growth with Equity: The African Regional
Experience
Abdoulie Janneh, USG & Executive Secretary of the Economic
Commission for Africa
2010 Dialogue with the UNGA Second Committee
Outline

Introduction

Africa’s Growth Performance

Importance of Equity

Growth and Equity in Africa

Responses and Way Forward
2010 Dialogue with the UNGA Second Committee
Introduction
exchange views on key issues in
global economic development
Objectives
gain insights and share
regional perspectives
Theme:
‘Growth with Equity’
Compelling !
 expansion in economic activity
 dual challenge of having to achieve growth while
ensuring that it is equitable
 growth is not a given fact of economic life
2010 Dialogue with the UNGA Second Committee
Africa’s Growth Performance
 growth rate of per capita GDP barely
higher than population growth rate
(between 1980 and 2000)
AFRICA
 real GDP per head fell by 42.5% (between
the 1980s and 1990s)  “Africa’s lost
decades”
 Africa’s GDP expanded by nearly 6% per
annum (beginning of the new Millennium)
 African economies shown resilience during
the current crisis growing by about 2% in
2009 (growth is expected to average over
5% per annum this year and the next)
 growth performance driven by commodity
exports and services
2010 Dialogue with the UNGA Second Committee
Importance of Equity
(1/2)
Argument:
“if the growth rate is sufficient
it will trickle down from the well-to-do to
other segments of society”
Self-limiting, costly, societal tensions
Difficulty
No account of the external &
inter-temporal dimensions
Growth not backed by internally
generated demand
Example: export oriented economies to
domestic stimulus packages
2010 Dialogue with the UNGA Second Committee
Importance of Equity
(2/2)
Inequitable growth is costly
Real and perceived inequalities
Equity has international & inter-temporal dimensions
2010 Dialogue with the UNGA Second Committee
Growth and Equity in Africa
Africa’s
growth performance
Employment
(1/3)
Described as
‘JOBLESS’
Key element
Promoting
equity
25
Current
unemployment
rates
20
15
South Africa
Nigeria
Egypt
10
5
0
%
Share of
unemployed
Youth (2007)
90
80
70
60
50
40
30
20
10
0
Zimbabwe
Uganda
Burkina Faso
2010 Dialogue with the UNGA Second Committee
Growth and Equity in Africa
(2/3)
 Growth with limited equity in Africa  skewed
distribution of economic opportunities
 Sustainable economic growth in Africa 
backed by regional integration, adequate
finance and diversified production structures
low incomes and poorer outcomes
in the labour market
overall exclusion of
marginalized
and vulnerable groups
lower educational
attainment rates
poor health status
under-representation in political &
policymaking processes at various levels
2010 Dialogue with the UNGA Second Committee
Growth and Equity in Africa
(3/3)
 Importance of the topic  ECA’s Economic Report on
Africa in 2003 and 2010 focused on employment
 Findings  the relatively strong GDP growth did not
translate into meaningful employment creation and
reduction of poverty and inequality
 Because:
 investments were mainly in the traditional capital
intensive extractive sector
 agriculture  accounts for a significant share of
employment in most African countries  characterized by
low productivity growth  did not provide enough
employment and decent incomes
2010 Dialogue with the UNGA Second Committee
Levels of gender equality in employment
Employment Share of paid employees, own-account
workers and employers in total employment
Tunisia
Tanzania
South Africa
Mozambique
Madagascar
M
Ghana
F
Ethiopia
Egypt
Cameroon
Burkina Faso
Benin
0
10
20
30
40
50
60
70
80
Sha re of Tota l (%)
Source: African Women’s Report 2009
2010 Dialogue with the UNGA Second Committee
Responses and Way Forward
Public
spending
(1/3)
Key instrument to address
equity concerns in Africa

Example: Algeria
Ambitious public spending programmes (in the
2000s)
 boosting domestic demand; generating jobs
through public investment in infrastructure;
support to agricultural production and SMEs
 total and youth
declined markedly
unemployment
rates
 Promote high-level sustainable economic
growth with strong employment generation 
requires transformation of the structure of
African economies
2010 Dialogue with the UNGA Second Committee
Responses and Way Forward
(2/3)
 Example: Republic of Congo 
economic growth reached 7.1% in 2009
 Employment situation not optimal 
much of the growth in the oil sector (70%
of GDP but employs only 1% of the
population)
Important to increase
productivity and incomes
To achieve growth with
equity in Africa
Requires both investments in
infrastructure and human capital
Providing incentives for private
sector employment
2010 Dialogue with the UNGA Second Committee
Responses and Way Forward
(3/3)
 Example: Tunisia
 Social Welfare Policy (free education and
increased women’s participation in the labour
market)  helped to reduce the poverty rate from
7.7% in 1985 to 3.8% in 2005
 The implementation of social protection
schemes requires financing
 With Africa’s combined consumer spending of
$860 billion in 2008 and combined reserves of
$470 billion at the end of 2009  scope for
increased domestic resource mobilization
 Partnerships especially in the nature of technical
assistance will also make a useful contribution
Economic Commission for Africa
Thank you for your attention !
www.uneca.org