Ending Africa’s Poverty Trap

Chandrika Bahadur,

Chandrika Bahadur Nonresident Fellow - Global Economy and Development, Center for Sustainable Development @Chandrika0501

Guido Schmidt-Traub,

GS

Guido Schmidt-Traub

Jeffrey D. Sachs,

JDS

Jeffrey D. Sachs

Margaret Kruk, and

MK

Margaret Kruk

John W. McArthur

John W. McArthur Director - Center for Sustainable Development, Senior Fellow - Global Economy and Development @mcarthur

Discussants: Michael Kremer and

Michael Kremer Gates Professor of Developing Societies - Department of Economics at Harvard University

Stephen A. O’Connell

SAO

Stephen A. O’Connell

Africa’s development crisis is unique. Not only is Africa the poorest
region in the world, but it was also the only major developing region with
negative growth in income per capita during 1980–2000 (table 1). Some
African countries grew during the 1990s, but for the most part this growth
recovered ground lost during the 1980s. Moreover, Africa’s health conditions
are by far the worst on the planet. The AIDS pandemic is wreaking
havoc, as is the resurgence of malaria due to rising drug resistance and
the lack of effective public health systems. Africa’s population continues
to soar, adding ecological stresses to the economic strains. Policy-based
development lending to Africa over the past twenty years, known as structural
adjustment lending, did not solve the problem. A heavy debt burden
is evidenced by the 155 Paris Club restructurings of African countries’
debt between 1980 and 2001, much more than for any other region. In
general, Africa remains mired in poverty and debt.