Africa’s geography is a barrier to growth.
February 6, 2023 2023-02-28 6:26Africa’s geography is a barrier to growth.
admin By looking back over history, we may find several instances of states overcoming geographic challenges to do remarkable things. Even while the problem of an unfriendly geography is not an insurmountable barrier to progress, it is nonetheless essential to comprehend economic discrepancies between nations. However, some orthodox economists see institutional growth as a magic bullet for economic expansion. Institutions are crucial, but geography’s influence is still felt today.
Africa has experienced very slow economic growth when compared to the rest of the globe. Amazingly, Africa’s GDP (gross domestic product) per capita growth averaged 0.8 percent annually between 1965 and 1990. However, growth in the seven developing nations outside the region with the fastest rates of growth averaged 5.8 percent, while growth in the remainder of the developing world had average growth of 1.8 percent. The rate of economic contraction was so sharp that it took until 2004 for GDP to return to its average level of 1972.
Economists believe that a diversified approach is necessary to understand Africa’s underwhelming performance. Many contend that geography has a significant role in Africa’s underwhelming performance. A seminal study by Sachs and Warner (1997) found that countries with tropical climates grow more slowly than those with temperate climates. Regrettably, a sizable majority of Africa’s population lives in tropical regions.
Tropical regions experience a wide variety of parasite infections that are less common in temperate regions. These areas also have weak soils, according to Austin’s (2008) assessment. These characteristics significantly reduce agricultural production in tropical settings when combined. Even while studies show that the effects of a hostile environment are severe, they may not be immediately apparent to certain observers.
Torrent of diseases
According to economic studies, countries with severe malaria growth is 1.3% lower per person annually, whereas growth is increased by 0.3% when malaria is reduced by 10%. Through its detrimental effects on working hours and life expectancy, malaria is one of several illnesses that are to blame for limiting the dynamism of African economies. The TseTse fly restricts the use of domesticated animals and prevents the introduction of animal-powered technology, which are both obstacles to growth in Africa. Because of this, capital-intensive agriculture has found it challenging to take root in Africa.
The quality of institutions in Africa has been significantly impacted by the TseTse fly. According to Jianfu An and Wenxuan Hou, some regions of Africa failed to capitalize on institutions supportive of interclan trade, which resulted in petty ethnic identities and hampered the growth of institutions related to property rights and contract enforcement. Inconsistent rainfall, which has been decreasing since the 1960s, is another problem for Africa. The difference in African GDP per capita compared to the rest of the developing world would narrow by 15 to 40% if rainfall did not stop.
Due to their geography and coasts, African countries have higher trade and transportation costs. According to research, Europe has the best geographic conditions for economic production, followed by America, Asia, and Africa. Policies should concentrate on enhancing transportation infrastructure and lowering trade barriers to address this. Africans are capable of overcoming the issue of a hostile environment.
By Lipton Matthews
