Poor countries in Africa: standard of living, economy

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

Africa is a rapidly developing region. However, there are practically no countries on this vast continent that would have any significant impact on the rest of the world. More often they mention the poor countries of Africa, which for several centuries have not been able to move in their development from the dead point. Almost half of the entire population of the continent lives on less than a dollar a day. Political instability and incessant wars have made the existence of many people extremely difficult. In today's article, we look at the poorest countries in Africa in terms of gross domestic product per capita (according to the classification of the International Monetary Fund) and analyze the prospects for the development of the region.

Overview of the farm

Africa's economy includes trade, industry, agriculture and human capital. As of 2012, about 1 billion people live here. In total, there are 54 states on the continent. Twelve of them are described by the International Monetary Fund as poor countries in Africa. However, the continent has great development potential due to its rich resource base. The nominal GDP of the countries is 1.8 trillion US dollars. The recent growth in gross domestic product has been driven by increased trade in goods and services. Sub-Saharan Africa's GDP is expected to reach US$25 trillion by 2050. Income inequality will be a major constraint on the distribution of we alth. Today, however, most of the states on the continent are poor countries in Africa. According to the forecast of the World Bank, the situation may change as early as 2025, when the income per person in them will reach $1,000 per year. Great hope is placed on the younger generation. All experts recognize the importance of investing in the region's social resource.

The poorest countries in Africa

In terms of GDP per capita (in US dollars) in 2014, the following states occupied the lowest positions:

Malawi – 255.
Burundi – 286.
Central African Republic - 358.
Niger – 427.
Gambia – 441.
Democratic Republic of the Congo – 442.
Madagascar – 449.
Liberia – 458.
Guinea – 540.
Somalia – 543.
Guinea-Bissau – 568.
Ethiopia – 573.
Mozambique – 586.
Togo – 635.
Rwanda - 696.
Mali – 705.
Burkina Faso – 713.
Uganda - 715.
Sierra Leone – 766.
Comoros – 810.
Benin –904.
Zimbabwe – 931.
Tanzania – 955.

As you can see, Somalia closes the top ten poorest. The country only a few years ago occupied the first positions in this ranking, but now its GDP is gradually growing. Closes the list of Tanzania. There are 24 countries on the list in total. All other states on the African continent have a GDP per capita of more than $1,000. Consider some countries from the above list.

Malawi

This state is located in Southeast Asia. Malawi is the country with the lowest GDP in the world. More than half of its inhabitants are below the poverty line. Like many other countries in Africa, Malawi is plagued by corruption in public and private structures. Most of the national budget is made up of foreign aid. About 35% of GDP comes from agriculture, 19% from industry, and 46% from the service sector. The main export items are tobacco, tea, cotton, coffee, and the main import items are food products, oil products and cars. Malawi's trading partners are: South Africa, Egypt, Zimbabwe, India, China and the US.

Burundi

This state is known for the ongoing civil wars on its territory. There has hardly been one long period of peace in its entire history. This could not but affect the economy. Burundi is the second poorest country in the world. In addition to constant wars, they talk about it in connection with the spreadHIV/AIDS, corruption and nepotism. About 80% of the population of this state live below the poverty line.

Central African Republic

This state has been politically and economically unstable since the beginning of its independence. The Central African Republic is rich in mineral resources, but remains on the list of the poorest. The country exports diamonds. This article gives 45-55% of income. The country is also rich in uranium, gold and oil. And yet more than half of the inhabitants of the Central African Republic live below the poverty line. The main branch of the national economy is agriculture and forestry. The main trading partners of the Central African Republic are Japan, South Korea, France, Belgium and China.

Niger

About 80% of the territory of this state lies in the Sahara desert. Niger is a politically unstable state in which corruption and crime flourish. The position of women remains disastrous. The advantage of the Niger economy is the huge reserves of uranium. There are also deposits of oil and gas. The weak side remains a huge dependence on foreign aid. The country has a poorly developed infrastructure, the political situation remains unstable, and the climate is bad with frequent droughts. The main branch of the national economy is agriculture. The uranium mining industry is also developing. The country has the lowest Human Development Index.

Liberia

This state is a unique placeon the African continent. It's all about his story. The country of Liberia was founded by African Americans freed from slavery. Therefore, its system of government is very similar to that of the United States. About 85% of the population of this country live below the poverty line. Their daily income is less than $1. This deplorable state of the economy is due to wars and political instability.

Democratic Republic of the Congo

This state is the largest in the world. However, at the same time it is one of the poorest countries in the world. The most terrible event in history was the second war in the Democratic Republic of the Congo, which began in 1998. It is she who is the main reason for such a low development of the economy.

Madagascar

This island is located in the Indian Ocean, 250 miles off the southeast coast of Africa. A piece of land about 1,580 km long and 570 km occupies Madagascar. Africa as a continent includes this island in its composition. The main sectors of the economy of Madagascar are farming, fishing and hunting. The island has a population of 22 million, 90% of people live on less than two dollars a day.

Ethiopia

As we mentioned, Africa is one of the fastest growing regions in the world. Ethiopia is one of those countries whose economic growth rate is the highest. However, it still remains one of the poorest states on the continent and in the world. About 30% of the population livea dollar a day or less. However, Ethiopia has significant development potential in the agricultural sector. Today, the majority of the population are small farmers. Small farms are particularly affected by fluctuations in world markets, droughts and other natural disasters. It should be noted that a few years ago, Ethiopia topped the list of the poorest countries. Therefore, the current situation shows a significant improvement in living standards compared to the past.

Togo

This state is located in West Africa. Its population is about 6.7 million people. The main branch of the economy is agriculture. Most of the population works in this sector. A significant part of exports are cocoa, coffee, cotton. Togo is rich in minerals and is the world's largest phosphate producer.

Sierra Leone

The economy of this state is based on diamond mining. They make up the majority of exports. Sierra Leone is the largest producer of titanium and bauxite, as well as gold. However, more than 70% of the population lives below the poverty line. Corruption and crime flourish in the state. Most transactions in foreign trade are carried out only through giving and receiving bribes.

Causes of underdevelopment and prospects

The African continent's current growth problems are difficult to explain with modern economic theories. Among the reasons for the plight of the majority of the population are constant hostilities, instability, a comprehensivecorruption and despotic regime in most countries. Played a role in the emergence of current problems and the Cold War between the US and the USSR. To date, the poor countries of Africa remain a hotbed of underdevelopment. And they pose a threat to the whole world, since high social differentiation always leads to an increase in the conflict of international relations. With horrendous poverty, the unfavorable situation in the field of education and he alth is combined here. Africa's GDP structure is dominated by inefficient agriculture and extractive industries. And these are industries with low added value, which cannot provide a breakthrough in the development of these countries. In addition, most African states are the largest debtors. Therefore, they do not have the resources to pursue an active national policy aimed at developing their own economy. Corruption at all levels is a huge problem. During the years of independence of these countries, it has become a tradition. Most trade transactions are carried out only on the condition of giving a bribe. However, the situation is gradually improving due to foreign programs. Over the past decade, African economies have shown steady growth. It continued even during the global financial crisis. Therefore, the potential of the continent is perceived by many economists with increasing optimism.

Prospects for development

Africa has huge reserves of natural resources. It is also the continent with the highest proportion of young people. Many experts believe that high economic growth can besecured by investments in the education of the new generation. With the right policies, Africa can become one of the most productive regions. Gradually, it is no longer considered a hopeless continent. Thanks to relatively stable growth rates, global actors have a desire to influence African markets and promote their brands here. However, so far most of the states of this region remain weak trading partners. They are heavily dependent on the sale of energy resources. Only 4% of Africans live on $10 a day. The situation is expected to change dramatically by 2050. By this time, most countries should enter the category of countries with an upper middle income. An important factor in future success is the strengthening of the middle class. Foreign investment projects in technology, education and he althcare are of great importance. It is expected that by 2060 99% of the population will be covered by broadband internet. The younger generation is the hope of the continent. The future of Africa depends on the success of their education.