This article describes the various domains in which inequality manifests itself in Tanzania. It outlines the key drivers of inequalities as including wide income gaps, unemployment and a collusion between political and businesses elites that creates political capture and patronage, thus fueling corruption and diverting resources from essential services. The article points out a correlation between access to education and income inequality, and highlights the fact that, despite marginal reduction in poverty, inequality is on the rise.
Income inequality especially remains high in South Africa. This article investigates the impact of macro-economic, institutional and structural factors on inequality across the nine provinces of South Africa. Using a panel data econometric technique, the determinants/ drivers of inequalities are estimated. The rate of openness (globalization) of an economy, the level of financial inclusion, the status of physical infrastructure, governance indicators, and socioeconomic and institutional factors are explored as explanatory variables. The article concludes with a presentation of the challenges and policy options required to address social and economic inequalities in South Africa.
This article highlights that the persistent high levels of poverty and inequality are being mainly propelled by the structure of the Nigerian economy and the inability of annual public expenditure, despite its large size, to guarantee improved access to functional facilities and social services. It also illustrates how the emerging structural transformation, led by the services sector, needs to be consolidated and properly managed in order to promote sustainable development, including the eradication of poverty and the reduction of inequality.
The small multi-ethnic island state of Mauritius has made great strides and embraced the notion of equal opportunity for all, although this has not always been translated in practice. This article
argues that, while the first wave of structural transformation contributed to economic growth and employment opportunities for citizens, development has not been equitable, especially with respect to Mauritians of African origin. The quest for a second wave of sustainable transformation may not be easy and the country needs to rethink its model of development and ensure that the latter is infused with ethical and human centred governance.
Ethiopia’s structural change has yielded impressive economic growth. With various forms of inequalities weakening the poverty reducing impact of this growth, there is increasing pressure for equitable and shared growth. This article investigates the forms of inequalities in Ethiopia and offers possible remedies. It shows that urban inequality remains higher than rural inequality, despite a slight narrowing because of favourable pricing for agricultural commodities and a large-scale social safety net programme. Key to addressing inequality is: sustaining the social protection intervention; providing decent jobs; enhancing opportunity; and fair representation.
This article analyzes forms, structure, drivers and Implications of inequalities in Ghana; examines its political economy and suggests remedial policy options and challenges. Regarding economic inequalities, it shows that despite a general reduction in the incidence of income poverty, its depth has increased: with a wider income distribution gap between the poorest and richest households; marked disparities between the well-endowed South and the impoverished North; and a gendered bias in the distribution of wealth assets. Overall, the non-diversified nature of Ghana’s recent rapid growth has not boosted employment or reduced inequalities.
This paper reviews recent research on income and non-income inequalities within countries in sub-Saharan Africa. It concentrates on research conducted by national and regional institutions and by international agencies in the region. Research on income inequality in Africa is a recent phenomenon. Most studies began in the early 1990s, with the increased availability of household budget surveys for countries in the region. The advent of PRSPs and MDGs, which moved the debate towards issues of pro-poor growth, also required discussion on the nature and trends of income inequality. Another reason was the lessons coming from a number of countries that although growth may be necessary, it was not sufficient to reduce poverty.
Since the election of the Movement for Multi-party Democracy (MMD) government in 1991, the Zambian authorities have implemented sweeping economic reforms. In addition to undertaking a sharp stabilisation programme early in the decade, the government have implemented reforms in agricultural marketing, a large privatisation programme, sweeping trade policy reforms and, more recently, public sector reform. The implementation of stabilisation and structural reforms in any country can have a major impact upon poverty and inequality. In order to obtain an accurate view of these effects, it is necessary to have nationally representative household survey data from both before and after the reform episode. Fortunately, there were four such surveys in Zambia during the 1990s ñ the first in 1991 coincided with the election of the new government, and further surveys were conducted in 1993, 1996 and 1998. This paper reanalyses the household survey data from three of these surveys in order to chart the evolution of poverty and inequality during the 1990s. In addition, the economic policies pursued during the 1990s are described in detail, enabling linkages to be drawn between the policies implemented and the observed changes in poverty and inequality.
Rural poverty rates in Zambia have remained very high, at 80%, over the past decade and a half, whilst urban poverty rates have declined, from 49% in 1991 to 34% in 2006. Redressing this high rural poverty rate remains a government priority in the National Development Programs. However, solutions have proven elusive. Solid empirically based information on dynamics that have improved the welfare of small-scale farm households in Zambia, combined with an agenda for disseminating this information in public discourse, offer prospects for generating a more transparent and pro-poor policy orientation.
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.