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Economics
Development

Sustainability and Patterns of Economic Growth

Profile image of Fabio Andrés Díaz PabónFabio Andrés Díaz PabónProfile image of Hélène DjoufelkitHélène Djoufelkit

2025, Inequalities in Sub-Saharan Africa: Multidimensional Perspectives and Future Challenges

https://doi.org/10.5281/ZENODO.14866464
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Abstract

This chapter critically examines the intricate relationship between economic growth, poverty, and inequality in Africa, questioning the sustainability of past growth patterns. Despite economic growth in many African countries over the past thirty years, poverty reduction has been limited, particularly for the poorest populations. This raises concerns about the long-term sustainability of Africa's economic expansion and its ability to achieve key development goals. The non-inclusiveness of economic growth in Africa is a central issue, with gains often unequally distributed and captured by those at the top, exacerbating ecological pressures. High inequality is identified as a major factor hindering the translation of economic growth into poverty reduction. Using the Growth, Inequality, and Poverty (GIP) framework, this chapter highlights inequality as a key variable. The analysis indicates that Africa's economic growth has not been inclusive, with a significant portion of the population remaining at the bottom of the global income distribution. The top 1% of earners in Africa have captured a substantial share of total growth, further explaining why growth in Africa has been less inclusive compared to the global situation. Some of the world's most unequal countries are in Africa, particularly in Southern Africa. The weak relationship between economic growth and poverty can be attributed to high initial levels of inequality. The chapter explores the reasons behind non-inclusive growth, including historical, institutional, and structural factors such as the legacy of colonialism and dependence on natural resources. The patterns of economic growth and the quality of employment are also crucial, with growth in labour-intensive sectors being more effective in reducing poverty than capital-intensive sectors. The quantity of employment creation has lagged behind economic growth, indicating a weak correlation between employment growth and GDP growth. To achieve socially and environmentally sustainable growth, the chapter suggests prioritising policies that build social and economic inclusion, such as social protection and progressive taxation. Alternative approaches to economic growth are considered, including green growth, degrowth, and post-growth models. These approaches emphasise the need to rethink and reshape growth in line with social and environmental imperatives, using alternative indicators beyond GDP to measure progress towards sustainable development goals.

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