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Issue 493 --
9th - 15th July 2011
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World Bank Analysis Sheds Light On Policies Behind Africa’s Development Successes |
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Washington, July 9, 2011 – As countries across Africa seek a path to greater prosperity after the global financial crisis, a new World Bank publication gives examples of proven, home-grown solutions that could serve as an inspiration to many. Titled Yes Africa Can: Success Stories from a Dynamic Continent, the book gives insight into what worked and why, drawing from 26 cases studies, of which 20 are national in scope, while six involve multiple countries. The case studies cut across themes, programs, and sectors. They include well-known success stories such as visionary investments in human capital and economic diversification in Mauritius and Botswana as well as those that are less famous for example, Somaliland’s quiet emergence as a reliable trading post along the Gulf of Aden. The past two decades have been characterized by remarkable progress in Sub-Saharan Africa, so we set out to chart the determinants of those successes, said Shanta Devarajan, World Bank Africa Region Chief Economist. Our goal here is not only to look beyond the usual headlines that paint a monolithic picture of Africa, but also to make sure that successful experiences are shared and possibly replicated across the continent. Overall, the case studies show that success was driven by collective action, usually but not always led by government, to either overcome or avoid the failures of the past. While the exact circumstances of Africa’s previously slow growth vary from country to country, there are generally two main causes: market failures and government policy distortions, said Punam Chuhan-Pole, a Lead Economist at the World Bank and the books main editor. Market failures can be corrected by creating incentives for desired outcomes, but government failure is more difficult to address, because it is usually harder to dislodge powerful individuals who are benefiting from the status quo. Where political checks and balances are strong, bad policies will not persist, Mr. Devarajan said. When you look at the vast array of reforms documented throughout the book, what emerges is vivid proof of the innovation, dynamism, and enduring spirit of the African people. Case Studies Highlights The case studies fall into four broad categories.
Reforming Distortionary Policies
Rebuilding a Government
Rationalizing Government Involvement In Markets
Listening to the People
In Washington: Francois
Gouahinga, +1 202 473 0696, fgouahinga@worldbank.org For more information about the book Yes Africa Can: Success Stories from a Dynamic Continent, please visit:http://go.worldbank.org/OFD841GU60 or http://blogs.worldbank.org/africacan
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