69th International Atlantic Economic Conference

March 24 - 27, 2010 | Prague, Czech Republic

Poverty in Africa: Melting the Golden Curtain

Friday, 26 March 2010: 16:45
Jannie Rossouw, MCom;, MBA , Executive Management Department, SA Reserve Bank and Economics Department, University of Pretoria, Pretoria, South Africa
Johan Fourie, BA, Hons , South African Reserve Bank, Pretoria, South Africa
This paper considers the problem of sustained poverty in Africa from the perspective of the rule of law, democracy, property rights and regional structures.  An analysis of developments since 1970 shows that certain parts of the world recorded remarkable progress in their efforts to alleviate poverty, but that poverty was perpetuated in Africa.  The analysis leaves no doubt that the global challenge is to ensure that the golden curtain between the rich countries and Africa is melted in the shortest possible time.
This paper focuses on the contributions of rich and African countries to the alleviation of poverty.  Consensus has been reached that the Millenium Develpment Goals embody the contribution of rich countries.  Similar consensus has not been reached on the contribution of African countries.  Particular problems charaterising poor African countries are oppressive polictical systems without democratic elections, disrespect for the rule of law, a lack of property rights and membership of regional structures with mutually exclusive objectives.  Central to this analysis is the conclusion that liberation movements are not necesarily democratisation movements.
Poverty eradication in Africa (and in sub-Shahran Africa in particular) is in the long-term interest of South Africa, as the country has its own poverty challenges to overcome and cannot accommodate all people trying to escape poverty in sub-Saharan Africa.  Melting th egolden curtain is therefore of particular importance to South Africa.