Macro and Micro Perspectives of Growth and Poverty in Africa

This article reviews trends in poverty,
economic policies, and growth in a sample of African
countries during the 1990s, drawing on the better household
data now available. Experiences have varied. Some countries
have seen sharp drops in income poverty, whereas others have
witnessed marked increases. In some countries overall
economic growth has been pro-poor and in others not. But the
aggregate numbers hide systematic distributional effects.
Taking both macro and micro perspectives of growth and
poverty in Africa, the article draws four key conclusions.
First, economic policy reforms (improving macroeconomic
balances and liberalizing markets) appear conducive to
reducing poverty. Second, market connectedness is crucial to
enable participation in the gains from economic growth. Some
regions and households by virtue of their remoteness were
left behind when growth picked up. Third, education and
access to land emerge as key private endowments to help
households benefit from new economic opportunities. Finally,
rainfall variations and ill health have profound effects on
poverty outcomes, underscoring the significance of social
risk management in poverty reduction strategies in Africa.