Sub-Saharan Africa continues to record strong economic growth, despite the weaker global economic environment. Regional output rose by 5 percent in 2011, with growth set to increase slightly in 2012, helped by still-strong commodity prices, new resource exploitation, and the improved domestic conditions that have underpinned several years of solid trend growth in the region's low-income countries. But there is variation in performance across the region, with output in middle-income countries tracking more closely the global slowdown and with some sub-regions adversely affected, at least temporarily, by drought. Threats to the outlook include the risk of intensified financial stresses in the euro area spilling over into a further slowing of the global economy and the possibility of an oil price surge triggered by rising geopolitical tensions.
Ms. Julia Cardoso, Mr. George M Kabwe, and Riaan van Greuning
. Progress is being made, as in 14 of these cases new central bank laws have been enacted, and, as of April 2021, 9 other draft amendments have been submitted to the cabinet or parliament (see Figure 13.2 ). Sub- SaharanAfricafares well with respect to legislative reforms to improve central bank governance, accounting for 50 percent of the central banks that have enacted new laws and one- third of central banks that are advancing draft amendments through submissions to the cabinet or parliament.
The quality of governance at central banks relies extensively on how
This dependence, however, can be overstated. Developing countries, to a significant degree, determine their own economic performance, as is demonstrated by the differences in trade and growth performance among different country groups. Since 1970, East Asia has fared best in performance of both purchasing power of exports and export volume, both for non-oil commodity exports and for manufactured exports. Latin America and South Asia were less successful, while Sub-SaharanAfricafared consistently worst ( World Bank (1988b) ). Much of this difference in trade and
emerges from the cross-national comparison is the respective contributions of capital accumulation and TFP growth to overall labor productivity growth ( Table 5 ). Prior to 1980, the contribution of TFP growth to overall labor productivity growth, at 10 percent, was lower in India than in any other region, except the Middle East: even sub-SaharanAfricafared better. Since 1980, however, India almost tops the list for TFP contribution to overall growth. Nearly 60 percent of overall growth was accounted for by TFP, a feature matched only by China. Amazingly, the Indian
productivity growth ( Table 5 ). Prior to 1980, the contribution of TFP growth to overall labor productivity growth, at 10 percent, was lower in India than in any other region, except the Middle East: even sub-SaharanAfricafared better. Since 1980, however, India almost tops the list for TFP contribution to overall growth. Nearly 60 percent of overall growth was accounted for by TFP, a feature matched only by China. Amazingly, the Indian TFP performance in 1980-99 surpasses that of East Asia even in the first twenty years of the East Asian miracle. Evidently, India has
more than 30 percent of deposits in 13 of the 45 sub-Saharan African countries considered.
Sub-Saharan Africa: Selected Pan-African Banking Groups, June 2011
Source: IMF, African Department database.
The expansion of these banks has improved competition and given rise to economies of scale, because local markets are very small in some jurisdictions. However, although sub-SaharanAfricafares well compared to other regions in its observance of the Basel I Core Principles ( Figure 2.24 ), it faces two major supervisory weaknesses ( Beck and
countries, where telecommunications technology—such as mobile communications and internet access— has been instrumental in expanding digital financial services in recent years.
Technology access has grown rapidly in Asia-Pacific over the past decade, but the region lags behind others in per capita access to technology. On a per capita basis, Emerging Market and Developing countries in Asia-Pacific have lower access to technology than their counterparts in Europe, Latin America, and the small Caribbean island economies, with only sub-SaharanAfricafaring worse. In the
This paper explores the causes of India's productivity surge around 1980, more than a decade before serious economic reforms were initiated. Trade liberalization, expansionary demand, a favorable external environment, and improved agricultural performance did not play a role. We find evidence that the trigger may have been an attitudinal shift by the government in the early 1980s that unlike the reforms of the 1990s, was probusiness rather than promarket in character, favoring the interests of existing businesses rather than new entrants or consumers. A relatively small shift elicited a large productivity response, because India was far away from its income-possibility frontier. Registered manufacturing, which had been built up in previous decades, played an important role in determining which states took advantage of the changed environment.
Ms. Elena Loukoianova, Yongzheng Yang, Mr. Si Guo, Ms. Leni Hunter, Mrs. Sarwat Jahan, Mr. Fazurin Jamaludin, Umang Rawat, Johanna Schauer, Piyaporn Sodsriwiboon, and Mr. Yiqun Wu
Asia has made significant progress in financial inclusion, but both its across-country and intra-country disparities are among the highest in the world. The gaps between the rich and the poor, rural and urban populations, and men and women remain deep. Income is the main determinant of the level of financial inclusion; but other factors, such as geography, financial sector structure, and policies, also play important roles. While some countries in the Asia-Pacific region are leaders in fintech, on average the region lags behind others in several important areas such as online (internet) purchases, electronic payments, mobile money, and mobile government transfers.
This Departmental Paper aims to take stock of the development and current state of financial inclusion and shed light on policies to advance financial inclusion in the region. The research focuses on the impact of financial inclusion on economic growth, poverty reduction, and inequality, linkages between financial inclusion and macroeconomic policies, as well as structural policies that are important for improving financial inclusion. Given the increasing importance of financial technologies (fintech), the paper also provides a snapshot of the fintech landscape in the Asia-Pacific.
This paper examines contractionary currency crashes in developing countries. It explores the causes of India’s productivity surge around 1980, more than a decade before serious economic reforms were initiated. The paper finds evidence that the trigger may have been an attitudinal shift by the government in the early 1980s that, unlike the reforms of the 1990s, was pro-business rather than pro-market in character, favoring the interests of existing businesses rather than new entrants or consumers. A relatively small shift elicited a large productivity response, because India was far away from its income possibility frontier.