POVERTY AND RURAL FINANCE IN AFRICA: MOVING THEORIES INTO POLICIES
1. Introduction 1
2. The socio-economic drivers and maintainers of poverty in SSA 2
2.1 Risk and vulnerability 2
2.2 Low capabilities 4
2.3 Inequality, exclusion and adverse incorporation 4
2.4 Limited livelihood opportunities 5
3. The political-economy drivers and maintainers of poverty in SSA 6
3.1 Non-developmental politics 6
3.2 Corruption 7
3.3 Weak nations, weak states 8
3.4 Weak civil society 8
3.5 Human rights 9
3.6 Resource curse 9
4. Poverty focused policies for development and poverty reduction 10
4.1 Structural Adjustment Programmes (SAPs) and Poverty Reduction Strategies (PRSs) 11
4.2 The Millennium Development Goals (MDGs) 12
4.3 Building capabilities 13
4.4 Pro-poor growth 14
4.5 Social protection 15
4.6 Inclusion, anti-discrimination and empowerment 16
5. Growth focused policies for development and poverty reduction 16
5.1 Policy after the Washington Consensus 16
5.2 Trade, investment, industrial development and infrastructure 17
5.3 Enabling environment 19
6. Aid 22
6.1 Aid and aid delivery reforms 22
6.2 State building 30
7. Specific international and African initiatives 30
7.1 Brief summary of pro-poor aid programme highlights 30
7.2 African and international initiatives 32
8. Concluding remarks 33
Bibliography
Appendix A: Poverty and Poverty Reduction in Nigeria and Tanzania
– Country Case Studies 44
Appendix B: UN Millennium Development Goals 64
Appendix C: Aid Flows to SSA for Selected Donors, Millions Current 2005 US$ 65
Appendix D: Commitment to Development Index (CDI) Rankings, 2003 – 2007 66
Appendix E: Selected Socio-Economic Indicators for SSA 67
Appendix F: Glossary of Terms 68
Figures
Figure 1: The Paris Declaration framework for enhanced aid effectiveness 24
Figure 2: Proportionate Breakdown of Aid Modalities, 2005 26
Figure 3: OECD – DAC members’ net ODA (1990 – 2005) and DAC secretariat simulations of
net ODA to 2010 27
Tables
Table 1: Access to utilities services for selected sectors 18
Table 2: Selected aid dependence ratios, 2004 (%)