EIGHT THINGS YOU (MAY NOT) KNOW ABOUT AFRICA John Page, Chief Economist Africa Region, World Bank October 31, 2006

1. AFRICA’S GROWTH RATES ARE CATCHING UP TO OTHER DEVELOPING COUNTRIES

African per capita income is now increasing in tandem with other developing countries … Annual Change in Real per capita GDP % Forecast 2008 Source: World Bank

… growth has improved since the 1980’s

2. ECONOMIC OUTCOMES ARE INCREASINGLY DIVERSE, WHILE SOCIAL OUTCOMES ARE CONVERGING

Africa’s growth experience increasingly diverse

SOCIAL OUTCOMES ARE CONVERGING

PRODUCTIVITY IN AFRICA’S BEST PERFORMERS (AND BEST FIRMS) EQUALS ASIAN COMPETITORS

Africa’s best performers are on par with India, Vietnam

Factory floor costs compare well with India & China Direct cost per male shirt

4. AFRICA IS A HIGH COST PLACE TO INVEST BUT LACK OF INFRASTRUCTURE MAY CONSTRAIN INVESTMENT MORE

Building the private sector Africa lags other regions in the cost of doing business … Ease of doing business rank, Simple average by region Data sources: The World Bank Doing Business Database, 2005 survey. Building the private sector

Building the private sector …and in access to infrastructure Data sources: The World Bank WDI database, April 2006. Building the private sector

5. SUCCESS INCREASING PRIMARY ENROLLMENTS IS NOT MIRRORED IN SECONDARY AND TERTIARY EDUCATION.

Gross primary enrollment rate has risen sharply

Africa lags in secondary and tertiary education

6. MORTALITY AND LIFE EXPECTANCY HAVE REGRESSED TO LEVELS OF PREVIOUS DECADES

LIFE Expectancy And Mortality

Malaria has not received adequate attention and is a major cause of death of children

7. INEQUALITY LIMITS THE BENEFITS OF GROWTH TO THE POOR

Inequality limits the benefits of growth to the poor The Poor as Percent of Total Population and Inequality: Data sources: The World Bank Global Poverty Monitoring Database

And the rural-urban divide remains dramatic Rural-urban divide in access to improved water source Data sources: Africa Region Household Survey Standardized Files.

8. INTERNATIONAL FOCUS ON AFRICA IS GROWING BUT STILL FALLS SHORT OF 1990 AND THE GLENEAGLES TARGETS

International focus on Africa is growing, but still falls short of 1990 Data sources and WBI database.

… and changes in ODA composition were significant

Africa Development Indicators ‘06 Office of the Chief Economist Africa Region, World Bank http://www.worldbank.org/afr/ce