The Paradox of growth in Africa
Despite two decades of unprecedented economic growth, Africa has yet to see its economic gains translated into positive social outcomes. Considerable inequalities persist, both between and within countries, suggesting that growth has not been sufficiently inclusive and equitable for all segments of the population. Recent fgures show that poor children in Africa are still about two and half times more likely to be underweight and up to three times more likely to be out of school than those from wealthier households. Unemployment, especially among young people, is rising, while social protection remains inadequate and inaccessible to many people on the continent, particularly the poorest and most vulnerable groups, thereby reducing their capacity to participate in the development process and benefit from the gains of economic growth.
Exclusion is a multidimensional phenomenon that is difcult to define unless a clear framework has been established on how and what aspects of exclusion are to be assessed. There is clear recognition, however, that an “excluded” society is likely to impair development, slow down economic growth, and trigger social and political instability. Higher inequality and exclusion also limit opportunities for social mobility and increase people’s vulnerabilities to external shocks, pushing individuals further into poverty. This is indeed what the continent is currently experiencing, with sustained economic growth unable to ensure the inclusive and equitable distribution of its benefits across populations. Moreover, evidence shows that the pace of progress towards inclusive development in Africa is too slow and its drivers too limited to meet the needs of its poorest population groups. It is therefore critical to ensure that these groups are integrated into development and decision-making processes, so as to accelerate the transition towards more sustainable and equitable growth.
Figure 1: From basic structural transformation to growth with equity
Source: Economic Commission for Africa (2014).
The lack of a transformative effect of growth on social and human development has been brought to the fore in recent policy debates (Economic Commission for Africa, 2013a). In its latest report, the High-level Panel on the Post-2015 Development Agenda recommended that the new agenda be guided by five major transformative shifts, namely:
(a) leave no one behind;
(b) put sustainable development at the core of the agenda;
(c) transform economies for jobs and inclusive growth;
(d) build peace and effective, open and accountable institutions for all; and
(e) forge a new global partnership (United Nations, 2012).
On the continent, the emergence of social development as a central plank of economic development has also gained impetus. The need for an inclusive and transformative growth strategy was firmly expressed by African leaders in the context of the emerging Agenda 2063 and the African common position on the post- 2015 development agenda, whose visions are anchored in equity, inclusiveness and sustainability (Economic Commission for Africa, 2012).
A Paradigm for inclusive development
The Economic Commission for Africa has been at the forefront of proposing an economic and social transformation agenda for Africa. In terms of economic transformation, Africa needs to build on its comparative advantage and focus on industrializing its agricultural and commodity sectors, improving regional integration and adding value to local products, in order to increase its competitiveness and productivity. With regard to social transformation, the continent needs to ensure that economic development is sufficiently inclusive and that it translates into improved well-being for Africa’s populations. One of the key components of social transformation is the need to address excluded groups, which is essential for ensuring a balanced and equitable development agenda. This would provide the basis for readdressing specific exclusion patterns, through effective policy formulation at the national and sub national levels.
To accompany this new paradigm, the Economic Commission for Africa has developed the AfricaSocial Development Index, a tool intended to help Governments to assess progress in the reduction of human exclusion and to promote more inclusive and equitable policies. The Index was created in response to a request made by African member States during the second session of the Committee on Human and Social Development, in 2011, for an Africa-specifc indicator on social exclusion.