Due in February 2021.
The rising concentration of extreme poverty in Sub-Saharan Africa over the past quarter-century can be attributed to the fact that economic growth has been slow, productivity levels and the contribution of total factor productivity to growth are still low, and growth has not been inclusive enough to put a big dent in poverty. What explains the dismal performance of labor productivity in Sub-Saharan Africa compared with the rest of the developing world? This book argues that first, physical capital is scarce and economic activities in the region have low capital-intensity relative to other regions. Second, insufficient investment and poor outcomes have led to relatively lower levels and lower quality of human capital. Finally, scarce resources compounded by the inefficiencies in their allocation across productive units translate into low aggregate labor productivity.
Sub-Saharan Africa needs policies to boost productivity across all sectors of economic activity, especially in those sectors in which most poor people make their living. The region needs policies that improve productivity in the agriculture sector, foster rural development, and create jobs for the youth bulge that is joining the labor force.