In a July 6 commentary, the Organization for Economic Cooperation and Development noted that despite the economic downturn Africa has been able to narrow the gap in its per capita GDP vis-à-vis the OECD countries.

In a July 1 commentary, International Monetary Fund economist Antoinette Sayeh, a native of Liberia, examined economic reforms in her home country that were implemented in return for debt relief. These reforms have greatly improved the business climate in Liberia, which is now attracting new foreign investment.

On June 29, Mercer released its annual report on the world’s most expensive cities for a foreigner to live. Luanda, Angola, ranked number one, and several other cities in Africa were also among the most expensive, including Ndjamena, Chad; Libreville, Gabon; and Niamey, Niger.

In a June 6 post, University of Chicago economist Gary Becker expressed optimism toward Africa’s growth prospects. He points to declining fertility, the continent’s rich natural resources, and improving attitudes by African leaders toward free markets and diminished attraction for socialism. However, Becker believes that foreign aid is holding back Africa’s transition toward development.

Also on June 6, Judge Richard Posner expressed concern that Africa’s recent positive economic performance may be somewhat artificial because it is based on foreign aid and increases in volatile commodity prices. On the negative side, he says this: “Levels of education and health are very low in sub-Saharan African countries; life expectancy is low and is actually declining; productivity is very low; fertility though declining remains very high; poverty of course is widespread; ethnic conflict (often violent) and political violence are common; corruption is endemic; opportunities for women are meager. These impediments to economic growth will probably change very slowly because they are deeply rooted in African culture.”

On May 24, the latest African Economic Outlook was published by the African Development Bank. A key finding is that African countries raise less in taxation than those elsewhere at similar stages of development, making African countries more dependent on foreign aid than necessary. (Note: almost every country in Africa has a low tax/GDP ratio. If low taxes were the primary key to growth then Africa would be far richer than it is.)

An article in the May issue of The Economic Journal argues that civil wars in Africa, which have killed more than four million people since 1945, are primarily caused by downturns in commodity prices.

On April 10, the IMF published a report on Sub-Saharan Africa. It notes that Africa was largely shielded from the sharp economic downturn that primarily affected developed countries. It expects growth to more than double to 4.75 percent this year from two percent last year.

Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Read his most recent column here. Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).

Previous posts:

July 6: Pensions and Aging
July 5: Energy Subsidies
July 2: Weekly Roundup 
July 1: Focus on Economics