Poverty, Aid, and Governance in the Central African Republic and Sub-Saharan Africa

Poverty, aid and governance in the Central African Republic and Sub-Saharan Africa Humanitarian and Development Partnership Team CAR Slide 1 Nov-07

The third poorest people on earth Share of population living on less than 1 dollar a day (bottom 7 seven countries) 73 70 67 64 61 61 59 Mali Nigeria CAR Zambia Niger Burkina Faso Gambia Source: World Bank (2002) Humanitarian and Development Partnership Team CAR Slide 2 Nov-07

Income per head: Gap widening GDP per head in Sub-Saharan Africa rose by 78% since 1985, but not even by 10% in CAR GDP (PPP) Growth, Base = 100 (1985) +80% Sub-Saharan Africa CAR +60% +40% +20% 100 -20% 1995 1985 1990 2000 2005 Source: IMF (2007), Gross domestic product based on purchasing-power-parity (PPP) per capita GDP Humanitarian and Development Partnership Team CAR Slide 3 Nov-07

Human Development: Falling behind while others progress Among bottom 6 least developed countries, only CAR has not made progress in 20 years .40 CAR .35 Guinea Bissau Burkina Faso .30 Mali Niger .25 1985 1990 1995 2000 2004 Source: HDR (2006) Humanitarian and Development Partnership Team CAR Slide 4 Nov-07

Development assistance: where are we and why? Aid to Sub-Saharan Africa rose by 54% since 1985, but fell by 60% for CAR ODA Growth, Base = 100 (1985) +60% Sub-Saharan Africa CAR +40% +20% 100 -20% -40% -60% -80% 1995 1985 1990 2000 2005 Source: OECD (2007), Development Assistance Disbursements, All donors Humanitarian and Development Partnership Team CAR Slide 5 Nov-07

Development assistance: where are we and why? With not even $ 24 per head, development aid per head now the lowest in the region Congo 160 Equat. Guinea 70.7 Sudan 44.7 39.6 Chad 36.7 Gabon Congo, Dem. Republic of 29.1 Cameroon 24.1 Central African Republic 23.5 Source: OECD (2007), Development Assistance Disbursements, All donors, 2005 Humanitarian and Development Partnership Team CAR Slide 6 Nov-07

Because of political instability? CAR scores -1.69 on the World Bank’s political instability index -2.5 -1.0 0 1.0 2.5 South Africa Rwanda Angola Uganda Central African Republic Chad Nigeria Cote d’Ivoire Sudan Congo, Dem. Republic of Somalia Source: World Bank (2007), Worldwide Governance Indicators, Selection Humanitarian and Development Partnership Team CAR Slide 7 Nov-07

Is it because of a lack of strategic natural resources? Sudan Chad Darfur Cameroon Bangui Diamonds Gold DRC Timber Congo Uranium Humanitarian and Development Partnership Team CAR Slide 8 Nov-07

Because of corruption? CAR scores -1.06 on the World Bank’s corruption control index -2.5 -1.0 0 1.0 2.5 South Africa Rwanda Ethiopia Uganda Central African Republic Sudan Angola Chad Nigeria Congo, Dem. Republic of Somalia Source: World Bank (2007), Worldwide Governance Indicators, Selection Humanitarian and Development Partnership Team CAR Slide 9 Nov-07

Because of an overly repressive regime? CAR scores -1.06 on the World Bank’s voice and accountability index -2.5 -1.0 0 1.0 2.5 South Africa Uganda Central African Republic Ethiopia Rwanda Nigeria Chad Zimbabwe Congo, Dem. Republic of Sudan Somalia Source: World Bank (2007), Worldwide Governance Indicators, Selection Humanitarian and Development Partnership Team CAR Slide 10 Nov-07

www.hdptcar.net Humanitarian and Development Partnership Team CAR Slide 11 Nov-07

Poverty, Aid, and Governance in the Central African Republic and Sub-Saharan Africa

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