Download Growth Strategies for Africa in a Changing Global Environment

Growth Strategies for
Africa in a Changing
Global Environment
Danny Leipziger and Shahid Yusuf
Growth Dialogue
Washington DC
What is different now: on the upside
 Africa has growth momentum.
 Many countries have achieved macroeconomic stability.
 Demand for mineral wealth is strong.
 South –south trade on upward trend.
 Chinese and other FDI helping to promote mineral sector and
infrastructure development.
 Advantages of a ‘late starter’ likely to be buoyed by transfer
of industry from East Asia.
What is different now: worrisome trends
and challenges
 Industrial growth is lagging, and share in GDP declining.
 Little progress with industrial and export diversification.
 Agricultural productivity and R&D remain low and rural
infrastructure underdeveloped.
 Climate change looms ahead threatening drying, water
scarcity, extreme weather events, and coastal inundation.
 Gross savings have declined, investment shows only modest
increase.
Enhancing Long-Run Growth Prospects:
Global Public Goods
 Supporting globalization esp. international and regional
trade and FDI.
 Strengthening institutions contributing to political stability.
 Working with other nations to contain global warming.
Enhancing Growth Prospects: National
and Regional Drivers
 Natural resources exploitation and management of revenues.
 Youth dividend; Quality of human capital.
 Scope for export-oriented industrialization.
 Lifting agricultural productivity.
 Narrowing technology gaps.
 Urban agglomeration economies.
 Demand from growing middle class.
Elements of Strategic Framework
 Democratic institutions.
 State implementation capacity.
 Resource mobilization and investment.
 Industrial and export diversification.
 Learning and innovation system.
 Aid and FDI.
Thank You