Africa is a fast growing region. However, on this vast continent there are practically no countries that would have at least any significant impact on the rest of the world. More often mention the poor countries of Africa, which for several centuries have not been able to move forward in their development. Almost half of the entire population of the continent lives on less than a dollar a day. Political instability and ongoing wars made the existence of many people extremely difficult. In today's article, we will consider the poorest countries in Africa in terms of gross domestic product per capita (in accordance with the classification of the International Monetary Fund) and analyze the development prospects of the region.
General overview of the farm
Africa's economy includes trade, industry, agriculture, and human capital. As of 2012, about 1 billion people live here. 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. Nominal GDP of countries is 1.8 trillion US dollars. The recent increase in gross domestic product was driven by increased trade in goods and services. Black Africa’s GDP is expected to reach $ 25 trillion by 2050. Income inequality will be a major deterrent to wealth distribution. However, today most of the states on the continent are poor countries in Africa. According to the forecast of the World Bank, the situation may change by 2025, when the income per person in them reaches $ 1, 000 per year. Great hope is placed on the younger generation. All experts recognize the importance of investing in the social resource of the region.
Africa's poorest countries
In terms of GDP per capita (in US dollars) in 2014, the following countries took 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, closes the top ten of the poorest Somalia. The country only a few years ago occupied the first positions in this rating, but now its GDP is gradually growing. Closes the list of Tanzania. A total of 24 countries are listed. All other states on the African continent have GDP per capita above $ 1, 000. Consider some of the countries in the list above.
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. As in many other African countries, corruption is widespread in public and private institutions in Malawi. Most of the national budget is foreign aid. About 35% of GDP comes from agriculture, 19% from industry, 46% from services. The main export items are tobacco, tea, cotton, coffee, while imports are food products, petroleum products and automobiles. Malawi's trading partners are the following countries: South Africa, Egypt, Zimbabwe, India, China and the USA.
Burundi
This state is known for the ongoing civil wars on its territory. In its entire history there has hardly been one long peace period. This could not but affect the economy. Burundi is second in the list of the poorest countries in the world. In addition to the constant wars, they talk about her in connection with the spread of HIV / AIDS, corruption and nepotism. About 80% of the population of this state live below the poverty line.
Central African Republic
This state has been unstable politically and economically 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 provides 45-55% of revenue. 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 sector 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 plight of women remains. The advantage of the Niger economy is the huge reserves of uranium. There are also oil and gas deposits. The weak side is the huge dependence on foreign aid. The country has poorly developed infrastructure, the political situation remains unstable, and the climate is poor in 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 place on 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 the one in 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 caused by 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 back 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 from the southeast coast of Africa. A land plot of about 1, 580 km in length and 570 km is occupied by 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's population is 22 million people, 90% of people live on less than two dollars a day.
Ethiopia
As we have already mentioned, Africa is one of the fastest growing regions in the world. Ethiopia is one of the countries with the highest economic growth rate. However, it remains one of the poorest countries on the continent and in the world. About 30% of the population lives on a dollar a day or less. Ethiopia, however, has significant agricultural development potential. Today, the majority of the population is smallholder 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 led 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. A large part of the population works in this sector. A significant part of exports is cocoa, coffee, cotton. Togo is rich in minerals and is the largest phosphate producer in the world.
Sierra leone
The economy of this state is built on the extraction of diamonds. They make up most of the exports. Sierra Leone is the largest producer of titanium and bauxite, as well as gold. However, more than 70% of the population is below the poverty line. Corruption and crime are rampant in the state. Most transactions in foreign trade are carried out only by giving and receiving bribes.
Reasons for underdevelopment and prospects
The current growth problems of the African continent are difficult to explain using modern economic theories. Among the causes of the plight of the majority of the population are called constant hostilities, instability, comprehensive corruption and a despotic regime in most countries. The Cold War between the USA and the USSR also played a role in the emergence of current problems. Today, poor countries in Africa remain a hotbed of backwardness. And they pose a threat to the whole world, since high social differentiation always leads to increased conflict in international relations. The appalling poverty here combines the unfavorable situation in education and health. In Africa’s GDP structure, inefficient agriculture and extractive industries dominate. And these are low value-added industries that 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. A huge problem is corruption at all levels. Over the years of independence of these countries, it has become a tradition. Most trading operations are carried out only on condition of giving a bribe. However, gradually due to foreign programs the situation begins to improve. 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.
