This brief examines the problem of income inequality in Africa. Specifically, it addresses its trend and variations as well as the role of the African Development Bank in tackling it. Africa accounts for a large share of the world’s people living in absolute poverty.
Its share of the world’s poor rose from just below 20% to close to 25% (Kayizzi-Mugerwa, 2001). Nearly 50% of the population in Sub-Saharan Africa lives on less than US$ 1 a day today: the world’s highest rate of extreme poverty in the world.
Poverty reduction is the core objective of the Ethiopian government. Economic growth is the principal, but not the only means to this objective. This policy approach raises fundamental questions: (1) what are the mechanisms and conditions by which economic growth translates into poverty reduction? (2) How do initial poverty and inequality affect the prospect for sustained and rapid economic growth? And (3) what are the links among economic growth, income distribution and poverty in the short and long term? This paper is aimed at addressing these questions
This paper proposes a micro-level decomposition approach of consumption growth and poverty reduction with a focus on the role of sectoral growth and structural transformation. Taking the case of Uganda with available household-level panel data over the 2005-2010 period, we examine the within-sectoral growth and sectoral changes that were associated with a 8 percent poin reduction in the poverty headcount ratio and an annual average consumption growth rate of 3 percent. Since those surveys contain a tracking instrument of both households and individuals, it is therefore possible to examine occupational, spatial, institutional, and demographic mobility of the original households and their members over time. Those different dynamics can then be related to micro-level welfare dynamics through panel-based descriptive and regression-based decompositions, aside the more standard cross-sectional approaches such as the Ravallion-Huppi one.
This paper investigates the impact of migrant remittances on income inequality in African countries, using a panel of five eight-year non-overlapping windows for the period 1960-2006.