Limitations on growth for states in Sub-Saharan Africa
Sub-Saharan Africa has been receiving a significant amount of aid from foreign powers over the last few years. Yet despite the aid, the region still remains the most undeveloped in the world. For states like Kenya, who receive some of the highest amounts of aid in Sub-Saharan Africa, there remain several issues as to why the aid received has not become a catalyst for the potential growth the country aims to achieve. Through exploring the limitations to Kenya’s growth, we can aim to identify the hindrances faced by many other regions within Sub Saharan Africa. Only through this can the international system come up with the adequate policies and methods of aid that actually benefit these developing countries in the long run.
One of the reasons for Kenya’s limited growth over time is due to the sheer growth in population levels. Kenya has a population of 44 million, 42% of which live below the poverty line with minimal access to healthcare, education and clean water. Additionally, Kenya has faced a near doubling in its population over the last 25 years. This can then increase the financial burden on the state to provide necessities such as education and healthcare, for the surplus of people. It is also shown that, theoretically, an increase in population could result in the production and consumption of more goods and services, thus resulting in economic growth.
However, the issue remains that for this to occur there needs to be a viable number of jobs in the economy. Yet with the already weak education system and the increase in the number of companies leaving Kenya and other African countries, there remains a shortage of adequate jobs for the population of Kenya. The lack of adequate resources for countries like Kenya results in the working population not being at its fullest potential and thus hindering the growth that the region can achieve.
Another hindrance to the growth of Kenya has been the sheer amount of corruption that exists within its political system. A particular example of drastic corruption would be when billions of shillings were embezzled away from the Nation Youth Service, an organization that provides youth vocational training. This money is now no longer invested in helping train the youth of Kenya that currently remain severely underskilled, hence, showcasing how corruption compromises people's futures and their development. The other harm of corruption is that the majority of the money provided for the purpose of aid is directed towards an elite group of people instead of the majority in dire need of resources. The Global Financial Integrity has reported that “from 2005 to 2014 Africa lost between USD$36 billion and USD$69 billion in illicit financial flows”. This amount is nearly 74% of the financing required to develop the infrastructure required to sustain Africa’s development. Corruption results in the misallocation of monetary resources, consequently, limiting the growth that Sub Saharan Africa.
While there remain other prominent issues that limit the growth of Sub Saharan Africa, population growth and corruption remain the most prominent. For foreign aid to be effective in Sub Saharan Africa, there must be a primary effort to reducing the level of corruption within the economy. Diminishing corruption levels will increase the effectiveness of aid provided to states. Once this occurs, aid should be directed towards improving human capital through investing in the provision of basic necessities and training and education. Through doing this the quality of human capital will rapidly increase thus promoting foreign companies to invest in these developing regions and create greater job opportunities. This process will then lead to an economic boom in the region. Nevertheless, the constant practice of corruption will continue to be plagued with diminished growth levels well into the foreseeable future.
Author: Ankita John
Editors: Matthew Takavarasha, David Casazza
