Inclusive growth, healthy aid and health outcomes in Africa

The interaction between poverty, inequality and unemployment still constraints inclusive growth in Africa. The classification of SSA countries as upper, lower middle income and least developed as basis for the allocation of foreign aid based on per capita income fails to recognise their vulnerabilities and the relevance of other social relations. The objectives of this study are to utilise a structural GAPS approach to classify African economies in order to highlight their vulnerabilities and their need for development assistance. Second, to use a panel data estimation technique to gauge the impact of health sector targeted aid on such health outcomes as infant mortality, under-five mortality and life expectancy. Our results clearly show that it is very difficult to discriminate between countries when it comes to the parlous state of health delivery in Africa. Specifically, our empirical analysis showed that health sector targeted aid is a significant variable in the explanation of health outcomes.