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Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy

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  • Asongu, Simplice
  • le Roux, Sara

Abstract

Motivated by a recent World Bank report on achieving of Millennium Development Goals which shows that poverty has been declining in all regions of the world with the exception of sub-Saharan Africa (SSA), this study puts some empirical structure to theoretical and qualitative studies on the reconciliation of the Beijing Model with the Washington Consensus. It tests the hypothesis that compared to middle income countries, low income countries would achieve more inclusive development by focusing on economic governance as opposed to political governance. The empirical evidence is based on interactive and non-interactive fixed effects regressions and 49 countries in SSA for the period 2000-2012. The findings confirm the investigated hypothesis. As the main policy implication, in order to address inclusive development challenges in the post-2015 development agenda in SSA, it would benefit low income countries in the sub-region to prioritise economic governance. Other theoretical and practical contributions are also discussed.

Suggested Citation

  • Asongu, Simplice & le Roux, Sara, 2018. "Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy," MPRA Paper 88522, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:88522
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Economic sectors and globalization channels to gender economic inclusion in Sub-Saharan Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 23/008, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    2. Asongu, Simplice A. & Ngoungou, Yolande E. & Nnanna, Joseph, 2023. "Mobile money innovations and health performance in sub-Saharan Africa," Technology in Society, Elsevier, vol. 74(C).
    3. Asongu, Simplice & Odhiambo, Nicholas, 2019. "Boosting quality education with inclusive human development: empirical evidence from sub-Saharan Africa," MPRA Paper 94014, University Library of Munich, Germany.
    4. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Governance,CO2 emissions and inclusive human development in Sub-Saharan Africa," Working Papers 25253, University of South Africa, Department of Economics.
    5. Simplice A. Asongu & Sara le Roux, 2023. "The role of mobile money innovations in the effect of inequality on poverty and severity of poverty in Sub-Saharan Africa," Working Papers 23/046, European Xtramile Centre of African Studies (EXCAS).
    6. Asongu, Simplice A. & Odhiambo, Nicholas M., 2019. "Governance and social media in African countries: An empirical investigation," Telecommunications Policy, Elsevier, vol. 43(5), pages 411-425.
    7. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Basic formal education quality, information technology, and inclusive human development in sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(3), pages 419-428, May.
    8. Simplice Asongu & Nicholas M. Odhiambo, 2023. "Health performance and economic growth in sub-Saharan Africa: new evidence based on quantile regressions," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 50(12), pages 1655-1671, May.
    9. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Enhancing ICT for Female Economic Participation in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 22/002, African Governance and Development Institute..
    10. Simplice A. Asongu & Nicholas M. Odhiambo, 2018. "ICT, Financial Access and Gender Inclusion in the Formal Economic Sector: Evidence from Africa," The African Finance Journal, Africagrowth Institute, vol. 20(2), pages 45-65.
    11. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "How enhancing information and communication technology has affected inequality in Africa for sustainable development: An empirical investigation," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(4), pages 647-656, July.
    12. Asongu, Simplice & le Roux, Sara & Nwachukwu, Jacinta & Pyke, Chris, 2018. "The Mobile Phone as an Argument for Good Governance in Sub-Saharan Africa," MPRA Paper 89364, University Library of Munich, Germany.
    13. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Female unemployment, mobile money innovations and doing business by females," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-26, December.
    14. Simplice A. Asongu & Peter Agyemang-Mintah & Joseph Nnanna & Yolande E. Ngoungou, 2024. "Mobile money innovations, income inequality and gender inclusion in sub-Saharan Africa," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-21, December.
    15. Simplice A. Asongu, 2023. "Female unemployment and the procedure that a woman has to go through to start a business: microfinance policy thresholds," Working Papers of the African Governance and Development Institute. 23/068, African Governance and Development Institute..
    16. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "The role of financial inclusion in moderating the incidence of entrepreneurship on energy poverty in Ghana," Working Papers of the African Governance and Development Institute. 23/035, African Governance and Development Institute..
    17. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Size, efficiency, market power, and economies of scale in the African banking sector," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-22, December.
    18. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Microfinance institutions and female entrepreneurship in Sub-Saharan Africa: avoidable female unemployment thresholds," Working Papers 23/018, European Xtramile Centre of African Studies (EXCAS).
    19. Asongu, Simplice A. & le Roux, Sara, 2023. "The role of mobile money innovations in transforming unemployed women to self-employed women in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    20. Roseline Nyakerario Misati & Anne Kamau & Hared Nassir, 2019. "Do migrant remittances matter for financial development in Kenya?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-25, December.
    21. Simplice A. Asongu & Joel Hinaunye Eita, 2023. "The conditional influence of poverty, inequality and severity of poverty on economic growth in Sub-Saharan Africa," Working Papers 23/022, European Xtramile Centre of African Studies (EXCAS).
    22. Karimli, Leyla & Ssewamala, Fred M. & Neilands, Torsten B., 2023. "The impact of poverty-reduction intervention on child mental health mediated by family relations: Findings from a cluster-randomized trial in Uganda," Social Science & Medicine, Elsevier, vol. 332(C).

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    More about this item

    Keywords

    Inclusive development; Middle Class; Governance; Sub-Saharan Africa; Beijing Model; Washington Consensus;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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