Economic Report on Africa 2005

Meeting the Challenges of Unemployment and Poverty in Africa

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With the highest incidence of poverty in the world, Africa urgently needs to create more employment and thus tackle the scourge of hunger, malnutrition and the overall low living standards the continent continues to witness. In addition to its traditional role of reviewing Africa’s economic performance over the preceding year, and projecting medium-term prospects for the continent, this year’s Economic Report on Africa, the sixth in an annual series, provides a detailed analysis of the challenges of unemployment and poverty reduction, key issues at the heart of the debate on Africa’s development.



Overview - Meeting the challenges of unemployment and poverty in Africa

Poverty in Africa is substantially higher than in other developing regions. More enigmatic is that poverty in Africa is chronic and rising. The share of the total population living below the $1 a day threshold of 46 per cent is higher today than in the 1980s and 1990s—this despite significant improvements in the growth of African GDP in recent years. The implication: poverty has been unresponsive to economic growth. Underlying this trend is the fact that the majority of people have no jobs or secure sources of income.


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