ADSU International Journal of Applied Economics, Finance and Management

Inclusive Growth: The Relationship Between Economic Growth And Poverty Reduction In Sub Sahara Africa

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Sub-Sahara Africa has experienced rapidly and remarkably growth over the past decade. However, there was high rate of poverty and income inequality. This has raised concern, both in academic and policy circles, over whether the impressive growth is inclusive. Therefore, this study assessed the level at which economic growth has been inclusive in Sub Sahara Africa, and the factors that could be responsible for non inclusive growth process in comparison with other regions of the world. This is done by reviewing the recent trends in Sub-Sahara Africa’s growth, poverty and income inequality in comparison with other regions. The study analyzed the relationship between growth and poverty reduction using tubular presentations and verbal constructs. The study’s findings show that the trends in poverty rate, income inequality and unemployment revealed that Sub-Sahara Africa is relatively far from achieving sustained inclusive growth. The high poverty rate, income inequality, unemployment rate are clear manifestations of non inclusiveness of Sub-Sahara Africa’s growth process. Also, the study found that institutions (governance indicators- rule of law, voice and accountability, Government Effectiveness and control of corruption) that drive and sustain inclusive growth are relatively weak in Sub-Sahara Africa. These weak institutions are indeed constraining inclusive growth in the region. Hence, the study recommends that; the Sub-Sahara Africa policy makers should undertake policies that will translate economic growth into employment opportunities for those below poverty line, and at risk of poverty, as well reduce inequality. Should also strengthen the institutions to adequately tackle corruption and inaccessible property rights, equip the health sector, and encourage school enrolment with the intention to boost human capital development.