The study aimed to analyze the ability of inclusive business (IB) models to sustainably contribute to efforts made in alleviating poverty in Sub-Saharan Africa, with an emphasis on the cases of Côte d'Ivoire and Kenya. Data collected on these two countries revealed a clear opposite stream in the integration pattern of the populations at the bottom of the pyramid (BoP) in IB models. In Côte d'Ivoire individuals at BoPs integrate IBs mainly through the agricultural sector, getting busy with the supply of raw material, and with the distribution and/or sale of products in the value chain; thus, supporting an upstream integration. In Kenya, individual at BoPs rather are concentrated in manufacturing, with a first choice on non-permanent employees as activity in the value chain, followed by permanent employees; hence, downstreaming the integration ladder. In both countries, IB contributes positively and significantly to welfare at BoPs, especially when the IB model is implemented as part of a specific program.
{"title":"Alleviating Poverty in Sub-Saharan Africa: The Role of Inclusive Business Models","authors":"B. Kamgnia, A. Ahoure","doi":"10.1093/jae/ejac048","DOIUrl":"https://doi.org/10.1093/jae/ejac048","url":null,"abstract":"\u0000 The study aimed to analyze the ability of inclusive business (IB) models to sustainably contribute to efforts made in alleviating poverty in Sub-Saharan Africa, with an emphasis on the cases of Côte d'Ivoire and Kenya. Data collected on these two countries revealed a clear opposite stream in the integration pattern of the populations at the bottom of the pyramid (BoP) in IB models. In Côte d'Ivoire individuals at BoPs integrate IBs mainly through the agricultural sector, getting busy with the supply of raw material, and with the distribution and/or sale of products in the value chain; thus, supporting an upstream integration. In Kenya, individual at BoPs rather are concentrated in manufacturing, with a first choice on non-permanent employees as activity in the value chain, followed by permanent employees; hence, downstreaming the integration ladder. In both countries, IB contributes positively and significantly to welfare at BoPs, especially when the IB model is implemented as part of a specific program.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49462853","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We use microsimulations to assess whether budget-neutral universal income floors are fiscally viable in twelve Sub-Saharan African countries. We consider three universal basic income scenarios of decreasing levels of generosity: poverty line, average poverty gap and current spending on transfers and subsidies per person. The first two may not be viable because the required increase in taxes to fulfil budget neutrality is significant.
{"title":"Are Budget Neutral Income Floors Fiscally Viable in Sub-Saharan Africa?","authors":"N. Lustig, J. Jellema, Valentina Martinez Pabon","doi":"10.1093/jae/ejac049","DOIUrl":"https://doi.org/10.1093/jae/ejac049","url":null,"abstract":"\u0000 We use microsimulations to assess whether budget-neutral universal income floors are fiscally viable in twelve Sub-Saharan African countries. We consider three universal basic income scenarios of decreasing levels of generosity: poverty line, average poverty gap and current spending on transfers and subsidies per person. The first two may not be viable because the required increase in taxes to fulfil budget neutrality is significant.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46688650","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Simone Schotte, Michael Danquah, Robert Darko Osei, Kunal Sen
Abstract In this paper, we provide causal evidence of the immediate and near-term impact of stringent COVID-19 lockdown policies on employment outcomes, using Ghana as a case study. We take advantage of a specific policy setting, in which strict stay-at-home orders were issued and enforced in two spatially delimited areas, bringing Ghana's major metropolitan centres to a standstill, while in the rest of the country less stringent regulations were in place. Using a difference-in-differences design, we find that the 3-week lockdown had a large and significant immediate negative impact on employment in the treated districts, particularly among workers in informal self-employment. While the gap in employment between the treated and control districts had narrowed 4 months after the lockdown was lifted, we detect a persistent nationwide decline in both earnings and employment, jeopardising particularly the livelihoods of small business owners mainly operating in the informal economy.
{"title":"The Labour Market Impact of COVID-19 Lockdowns: Evidence from Ghana","authors":"Simone Schotte, Michael Danquah, Robert Darko Osei, Kunal Sen","doi":"10.1093/jae/ejac039","DOIUrl":"https://doi.org/10.1093/jae/ejac039","url":null,"abstract":"Abstract In this paper, we provide causal evidence of the immediate and near-term impact of stringent COVID-19 lockdown policies on employment outcomes, using Ghana as a case study. We take advantage of a specific policy setting, in which strict stay-at-home orders were issued and enforced in two spatially delimited areas, bringing Ghana's major metropolitan centres to a standstill, while in the rest of the country less stringent regulations were in place. Using a difference-in-differences design, we find that the 3-week lockdown had a large and significant immediate negative impact on employment in the treated districts, particularly among workers in informal self-employment. While the gap in employment between the treated and control districts had narrowed 4 months after the lockdown was lifted, we detect a persistent nationwide decline in both earnings and employment, jeopardising particularly the livelihoods of small business owners mainly operating in the informal economy.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136186794","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Employing World Bank data, this paper, first, historically examines Africa's record on poverty incidence, spread and severity, as compared with other regions of the world, at the US$1.90 and US$3.20 per day (2011 PPP) poverty standards. Second, it evaluates country-specific progress on growth, poverty and inequality, and compares the ‘poverty transformation efficiency vector’ (PTEV) among African countries. Third, the study analyses the relative roles of income growth and inequality changes in explaining African countries' poverty records, through a decomposition of poverty changes using ‘optimal’ income and inequality elasticity estimates from the ‘identity’ model. The study finds that following the dismal record on poverty during the 1980s, progress on poverty has been appreciable since Africa's growth resurgence starting in the mid-1990s, and that this progress was driven mainly by income growth, consistent with the global evidence. Nonetheless, inequality often played a complementary role in most of the countries and, in a small number of cases, it was the primary driver of changes in poverty. Thus, the present study sheds light on country-specific differences in the relative roles of growth and inequality in poverty reduction on the continent, based on both qualitative and quantitative evidence. The study should, therefore, provide a useful compass to those who seek to understand country-specific situations within the African context.
{"title":"Progress on Poverty in Africa: The Importance of Growth and Inequality","authors":"A. Fosu","doi":"10.1093/jae/ejac047","DOIUrl":"https://doi.org/10.1093/jae/ejac047","url":null,"abstract":"\u0000 Employing World Bank data, this paper, first, historically examines Africa's record on poverty incidence, spread and severity, as compared with other regions of the world, at the US$1.90 and US$3.20 per day (2011 PPP) poverty standards. Second, it evaluates country-specific progress on growth, poverty and inequality, and compares the ‘poverty transformation efficiency vector’ (PTEV) among African countries. Third, the study analyses the relative roles of income growth and inequality changes in explaining African countries' poverty records, through a decomposition of poverty changes using ‘optimal’ income and inequality elasticity estimates from the ‘identity’ model. The study finds that following the dismal record on poverty during the 1980s, progress on poverty has been appreciable since Africa's growth resurgence starting in the mid-1990s, and that this progress was driven mainly by income growth, consistent with the global evidence. Nonetheless, inequality often played a complementary role in most of the countries and, in a small number of cases, it was the primary driver of changes in poverty. Thus, the present study sheds light on country-specific differences in the relative roles of growth and inequality in poverty reduction on the continent, based on both qualitative and quantitative evidence. The study should, therefore, provide a useful compass to those who seek to understand country-specific situations within the African context.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47930249","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"What Can Africa Learn from a Better Understanding of the Interaction among Growth, Inequality and Poverty in the Fight against the COVID-19 Pandemic?","authors":"E. Thorbecke","doi":"10.1093/jae/ejac040","DOIUrl":"https://doi.org/10.1093/jae/ejac040","url":null,"abstract":"","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41859727","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Interrelationships Among Growth, Inequality and Poverty in Africa","authors":"E. Thorbecke","doi":"10.1093/jae/ejac055","DOIUrl":"https://doi.org/10.1093/jae/ejac055","url":null,"abstract":"","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46154993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Progress in poverty reduction has been slow for the Sub-Saharan Africa region which faces serious challenges in addressing inclusive growth. This study assesses the income growth requirements to achieve the sustainable development goals on poverty for given income inequality performances in African countries. The assessment is based on a microeconomic approach and survey data for the countries. Results reveal that, given their current income growth and inequality performances, more than half (55%) of the African countries are off track to halving poverty between 2015 and 2030. Therefore, under the current inequality reduction performances, African countries should strive to deliver higher income growth results, above 6% annual gross domestic product on average, to be on track to achieving the Sustainable Development Goals target of halving poverty between 2015 and 2030.
{"title":"Is Africa on Track to Ending Poverty by 2030?","authors":"I. Fofana, M. Chitiga‐Mabugu, R. Mabugu","doi":"10.1093/jae/ejac043","DOIUrl":"https://doi.org/10.1093/jae/ejac043","url":null,"abstract":"\u0000 Progress in poverty reduction has been slow for the Sub-Saharan Africa region which faces serious challenges in addressing inclusive growth. This study assesses the income growth requirements to achieve the sustainable development goals on poverty for given income inequality performances in African countries. The assessment is based on a microeconomic approach and survey data for the countries. Results reveal that, given their current income growth and inequality performances, more than half (55%) of the African countries are off track to halving poverty between 2015 and 2030. Therefore, under the current inequality reduction performances, African countries should strive to deliver higher income growth results, above 6% annual gross domestic product on average, to be on track to achieving the Sustainable Development Goals target of halving poverty between 2015 and 2030.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43320774","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study has been motivated by the limitations of cross-country regressions and unstructured comparative case studies in providing policy-relevant findings on the determinants of patterns of growth. It presents a methodology to improve upon existing comparative case study research by situating cases withing a typological framework and subsequently using cluster analysis to improve the matching of cases with respect to a number of ‘weakly exogenous’ variables. Such an approach performs a taxonomic function, distinguishing different types of cases and an explanatory function by facilitating the comparison of similar cases in terms of variables in the typology (‘like with like’ comparisons) or of cases with one or more known differences with respect to these variables. The approach is illustrated using data on poverty and growth in SSA and uncovers a number of good comparator cases situated within a typological framework for subsequent comparative analysis.
{"title":"Typology Construction for Comparative Country Case Study Analysis of Patterns of Growth in Sub-Saharan Africa","authors":"Paul Shaffer","doi":"10.1093/jae/ejac054","DOIUrl":"https://doi.org/10.1093/jae/ejac054","url":null,"abstract":"\u0000 This study has been motivated by the limitations of cross-country regressions and unstructured comparative case studies in providing policy-relevant findings on the determinants of patterns of growth. It presents a methodology to improve upon existing comparative case study research by situating cases withing a typological framework and subsequently using cluster analysis to improve the matching of cases with respect to a number of ‘weakly exogenous’ variables. Such an approach performs a taxonomic function, distinguishing different types of cases and an explanatory function by facilitating the comparison of similar cases in terms of variables in the typology (‘like with like’ comparisons) or of cases with one or more known differences with respect to these variables. The approach is illustrated using data on poverty and growth in SSA and uncovers a number of good comparator cases situated within a typological framework for subsequent comparative analysis.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48513904","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines to what extent intergenerational mobility shapes both the impact of income inequality on growth as well as the effect that growth has on poverty and on income inequality in Africa. Thanks to newly available and internationally comparable data on intergenerational elasticities of income and education, we confirm the detrimental role played by higher inequality of opportunity as measured by intergenerational mobility. The study concludes that neglecting to address the root causes of inequality of opportunity can be socially and economically very costly.
{"title":"Intergenerational Mobility and the Growth–Inequality–Poverty Nexus in Africa","authors":"C. Ebeke","doi":"10.1093/jae/ejac044","DOIUrl":"https://doi.org/10.1093/jae/ejac044","url":null,"abstract":"\u0000 This paper examines to what extent intergenerational mobility shapes both the impact of income inequality on growth as well as the effect that growth has on poverty and on income inequality in Africa. Thanks to newly available and internationally comparable data on intergenerational elasticities of income and education, we confirm the detrimental role played by higher inequality of opportunity as measured by intergenerational mobility. The study concludes that neglecting to address the root causes of inequality of opportunity can be socially and economically very costly.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49469106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper focuses on employment and the labour market as a key mechanism leading from growth to poverty reduction in Africa. Given that the development goals are economy-wide outcomes—less poverty, shared prosperity, more and better job opportunities, etc.—the required analysis must be at the market level. Individual-level analysis is not enough. The paper brings together insights from labour economics and from development economics. It draws upon Fields’ work over decades at the intersection of these two fields. A concluding section presents suggestions for policy analysis.
{"title":"The Growth–Employment–Poverty Nexus in Africa","authors":"G. Fields","doi":"10.1093/jae/ejac046","DOIUrl":"https://doi.org/10.1093/jae/ejac046","url":null,"abstract":"\u0000 This paper focuses on employment and the labour market as a key mechanism leading from growth to poverty reduction in Africa. Given that the development goals are economy-wide outcomes—less poverty, shared prosperity, more and better job opportunities, etc.—the required analysis must be at the market level. Individual-level analysis is not enough. The paper brings together insights from labour economics and from development economics. It draws upon Fields’ work over decades at the intersection of these two fields. A concluding section presents suggestions for policy analysis.","PeriodicalId":51524,"journal":{"name":"Journal of African Economies","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44340591","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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