Globalization and equity in sub-Saharan Africa

How are issues of globalisation and equity played out in Sub-Saharan Africa? This paper examines the extent to which Africa has participated in the global economy using the various indicators of economic integration. It demonstrates Africa’s total marginalisation in terms of its share of trade. The extent to which the poor performance of Africa can be attributed to globalisation is analysed and the extent to which participation in the global economy is a sine qua non for economic growth is investigated. Methods that Africa can adopt to integrate fully and derive benefits from the globalisation process are explored.

Findings include:

• while globalisation has brought quantum leaps in trade, capital flows and income to some regions, globalisation is nevertheless a very uneven process with unequal distribution of benefits and losses
• the world has become more unequal over the last two centuries and this inequality has been brought about by unequal access or unequal capabilities or capacities
• the unequal nature of the outcome is manifested in the fast growing gap between the world’s rich and poor countries
• nowhere else is more adversely affected than sub-Saharan Africa where despite its abundant resources, the level of poverty is worst in the world
• investment and output have declined to negligible proportions over time

Conclusions include:

• globalisation has brought a lot of benefits to many countries that have embraced the tenets of the indicators of globalisation such as trade, capital flows, migration, advances technology, advances in telecommunications and transportation
• globalisation has been known to help promote convergence of per capita income among countries
• given the initial conditions of different countries, the outcomes from globalisation are likely to be different
• Africa has lagged behind in the global economy and is not integrated into the world economy in any meaningful sense
• whilst Africa has a lot to gain from globalisation if it positions itself appropriately, integration into the global economy is not the panacea for all of Africa’s economic ailments, rather growth is based on factors including the maintenance of macroeconomic stability, high investment/GDP ratio, reliable accounting system, responsible institutions, the development of infrastructures etc.