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The standard diagnosis of Sub-Saharan Africa is that it is
suffering from a governance crisis. This is too simplistic.
Many parts of Africa are well governed considering the
income levels and extent of poverty, yet are caught in a
poverty trap, unable to make the investments in human
capital and infrastructure that are required to achieve
self-sustaining economic growth. Africa’s special
challenges, which include low productivity agriculture,
a high disease burden and high transport costs, render
African countries most vulnerable to persistent extreme
poverty. The region’s development challenges run
much deeper than ‘governance.’
Indeed, many African countries require a “big push” in
public investments to overcome these obstacles. One of
the Millennium Project’s key arguments is that Africa’s
structural challenges can and must be overcome
through an intensive program of public investments in
basic infrastructure and social services like ports, roads, generators, malaria bed-nets, health care clinics, and so
on.
Since most countries in Sub-Saharan Africa do not have
the resources required to finance these investments,
they will need significantly increased additional official
development assistance if they are to meet the Millennium
Development Goals. Many well-intentioned
governments simply lack the fiscal resources to invest in
the infrastructure, social services, and even the public
administration necessary to improve governance or to
lay the foundations for economic development and
private sector-led growth. Without roads, soil nutrients,
electricity, safe cooking fuels, clinics, schools, and
adequate and affordable shelter, people are chronically
hungry, disease-burdened, and unable to save. Without
adequate public sector salaries and information
technologies, public management will be chronically
weak. The poorest countries will remain unable to
attract private investment flows or retain their skilled
workers.
The Goals provide a solid framework for identifying
investments that need to be made to escape the
poverty trap. They point to areas of public
investment—water, sanitation, slum upgrading, education,
health, and basic infrastructure—that reduce
income poverty and gender inequalities, improve
human capital, and protect the environment. By achieving
the Goals, poor countries will establish an adequate
base of infrastructure and human capital that will
enable them to escape from the poverty trap.
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