Poor countries in Africa: standard of living, economy

Africa is a rapidly developing region. However, on this vast continent, there are practically no countries that have any significant influence over the rest of the world. Most often mentioned are the poor countries of Africa, which for several centuries have not been able to move in their development from a dead center. Almost half of the entire population of the continent lives less than a dollar a day. Political instability and incessant wars made the existence of many people extremely difficult. In today's article, we will review 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 prospects for the development of the region.

General overview of the economy

The economy of Africa 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 a great potential for development due to its rich resource base. The nominal GDP of the countries is 1.8 trillion US dollars. The recent increase in gross domestic product was due to an increase in trade in goods and services. It is expected that by 2050 the GDP of Black Africa will reach 25 trillion US dollars. Income inequality will be the main constraint in the distribution of wealth. However, to date, 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 will reach $ 1000 per year. A great hope lies with the younger generation. All experts recognize the importance of investing in the social resource of the region.

The poorest countries in Africa

In terms of GDP per capita (in US dollars) in 2014, the following countries occupied 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 is 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 we see, closes the top ten poorest Somalia. The country only took a few positions back in the rating a few years ago, but now its GDP is gradually growing. Closes the list of Tanzania. There are 24 countries on the list. All other states on the African continent have a GDP per capita of over $ 1,000. Let's consider some countries from the list above.

Malawi

This state is located in South-East Asia. Malawi is the country with the lowest GDP in the world. More than half of its residents are below the poverty line. As in many other African countries, corruption in public and private structures is widespread in Malawi. Most of the national budget is foreign aid. About 35% of GDP is provided by agriculture, 19% by industry, and 46% by the services sector. The main export items are tobacco, tea, cotton, coffee, and imports - food products, petroleum products and cars. Malawi's trading partners are the following countries: South Africa, Egypt, Zimbabwe, India, China and the United States.

Burundi

This state is known for the incessant civil wars on its territory. In its entire history there was hardly one long peaceful period. This could not but affect the economy. The country of Burundi is the second in the list of the poorest countries in the world. In addition to constant wars, talk about it 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 was unstable politically and economically from 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 gives 45-55% of income. Also, the country is rich in uranium, gold and oil. Yet, more than half of the inhabitants of the Central African Republic live below the poverty line. The main branch 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 are rampant. The plight of women remains. The advantage of the Niger economy is the huge uranium reserves. There are also oil and gas deposits here. The weak side remains the huge dependence on foreign aid. The infrastructure of the country is poorly developed, the political situation remains unstable, and the climate is badly drought-prone. The main branch of the national economy is agriculture. The uranium mining industry is also developing. The country has the lowest level of the 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 who were freed from slavery. Therefore, its system of state power is very similar to that of the United States. About 85% of the population of this country live below the poverty line. Their income per day is less than $ 1. Such a 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. The land 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 branches of the economy of Madagascar are farming, fishing and hunting. The population of the island 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 of the world. Ethiopia is one of those countries whose economic growth rate is the highest. However, it remains one of the poorest countries on the continent and in the world. About 30% of the population live on a dollar a day or less. However, Ethiopia has significant development potential in the agricultural sector. Today, most of the population is small 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 headed the list of the poorest countries. Therefore, the current situation demonstrates 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 are 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 the bulk of 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. In the state, corruption and crime are flourishing. Most transactions in foreign trade are carried out only by giving and receiving bribes.

Causes of underdevelopment and prospects

The current problems of the growth of the African continent are difficult to explain with the help of modern economic theories. Among the causes of the plight of the majority of the population are the constant military actions, instability, comprehensive corruption and despotic regime in most countries. The cold war between the US and the USSR played a role in the emergence of current problems. To date, 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 conflicts in international relations. The terrible situation in the sphere of education and health is combined with appalling poverty. In the structure of Africa's GDP, inefficient agriculture and the mining industry prevail. And these are industries with low added value, which can not ensure 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 conduct an active national policy aimed at developing their own economy. A huge problem is corruption at all levels. For the years of independence of these countries, it has become a tradition. Most of the transactions are carried out only on condition of giving a bribe. However, gradually the situation at the expense of foreign programs is beginning to improve. Over the past decade, the economies of Africa have demonstrated steady growth. It continued even during the global financial crisis. Therefore, the potential of the continent is perceived by many economists with ever-increasing optimism.

Development prospects

Africa has huge reserves of natural resources. In addition, it is a continent with the highest proportion of young people. Many experts believe that high growth in the economy can be provided by investments in the formation of a new generation. With a sound policy, Africa can become one of the most productive regions. Gradually, it is no longer considered a hopeless continent. Thanks to relatively stable growth indicators, global actors have a desire to influence African markets and promote their brands here. However, while most of the states in this region remain weak trading partners. They strongly depend on the sale of energy resources. Only 4% of Africans live on $ 10 a day. It is expected that the situation could radically change by 2050. By that time, most states should enter the category of countries with an income above the average. An important factor for future success is the strengthening of the middle class. Of great importance are foreign investment projects in technology, education and health. It is expected that by 2060 99% of the population will be covered by broadband Internet. The younger generation is the hope of the continent. The future of Africa depends on the success of their education.