Chapter 6-Section 5

Chapter 6-Section 5 Economic & Social Development: The Struggle to Rebuild

World Bank Database… • http://www.youtube.com/watch?v=N4HO8_jDO6U Clip about World Banks data bases • http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/EXTPUBREP/EXTSTATINAFR/0,,contentMDK:22499827~pagePK:64168445~piPK:64168309~theSitePK:824043,00.html • World Bank Africa Development indicators

Structural Adjustment policies • SSA’s economic based declined during the 1990’s and was accompanied by heavy pop. growth so overall living standards declined. • The IMF & World Bank recommended structural adjustment policies which reduce gov. spending, cut food subsidies & encourage growth of private sectors which all = hardships for the poor – esp. women & kids.

ROOTS OF AFRICAN POVERTY… • SSA is the poorest & least developed world region. • The region is currently experiencing very slow economic growth • What are the roots of this region’s poverty? – Slave trade and Imperialism certainly contribute…but there are other factors to consider too.

FAILED DEVELOPMENT POLICIES… • When a country achieves its independence one formidable task facing the new leadership is devising economic growth or development policies. Despite their best efforts & some early success, most of these policies failed leaving countries further in debt.

FOOD POLICIES… • GOAL: Keep a cheap and long-term supply of staple foods; make the food affordable in comparison to people’s wages, & stability will occur. • Unfortunately, poor geography, an inability to produce enough food and population explosions made this goal unachievable and famine and deeper economic debt occurred.

CORRUPTION… • Low wages make it easier to bribe civil servants; • Many SSA nations have been referred to as “kleptocracies” – a state in which corruption is happening at every level of government and politicians are stealing a huge % of the country’s wealth.

Why is SSA disconnected from the world economy? • 1) Overall level of trade with the rest of the world is low; • 2) Poor Infrastructure • 3) Their greatest connection to the global economy is through aid (meaning loans from other countries or from international lending institutions) rather than investment.

Links… • http://news.bbc.co.uk/2/hi/africa/1120825.stm Congo & kleptocracy • http://www.mercycorps.org/rogerburks/blog/16018 another kleptocracy article • us AID TO AFRICA

Regional trade blocs • SADC – South African Development Community • ECOWAS – Economic Community of West African States • CEEAC – Economic Community of Central African States • All have been less effective than desired mostly attributable to political instability.

MEASURING SOCIAL DEVELOPMENT… • Literacy: Improving…better for men than women but lower than global figures. • LIFE EXPECTANCY: Average is 51, but in some countries it is much lower…37 in Angola. This reflects years of conflict & political disorder. • Contributing factors: AIDS, poverty, & other diseases

HEALTH ISSUES… • High mortality levels…too few doctors & health facilities; • Severe disease environment (lots of insect borne illnesses & serious diseases like TB & malaria) • AIDS

Status of Women… • Tough to gauge – in some areas women have a lot of political & economic power; • Polygamy is prevalent in some areas; • Some areas still won’t allow women to inherit property • Women are discriminated against – Most women still live in rural areas with little education.

BUILDING FROM WITHIN… • Support groups & networks across the region support women & have the potential to transform the region. • Women are given loans to start small businesses; farm labor groups support women’s market associations; • The goal is to create local networks to help solve women’s problems & community problems too (this lessens dependence on outside assistance) • Africa's Economic Future

Chapter 6-Section 5