A Brief Note On Financial Development And Inequality

1414 Words Nov 26th, 2016 6 Pages
Financial Development and Inequality in sub-Saharan Africa

The relationship between how developed a countries’ industry is and how much financial inequality persists within that country are not linear across the world. Many countries within Africa have developed numerous industries with only a small percentage of countries showing modest gains in levels of inequality. Through the analysis of 10 research papers and articles this hypothesis is supported with empirical examples. The result also confirms that societal norms play a significant role in making income distributions more equal. In selecting this topic, I want to better understand the relationships between industries in sub-Saharan Africa, and how that impacts levels of inequality amongst the people that support those industries. Sub Saharan Africa has consistently been one of the most impoverished and least developed areas of the world. Looking at gross domestic product it is clear that sub-Saharan Africa remains generally under-developed economically, even when compared to the average per capita income in Latin America. There is also a good deal of consistency across countries with similar primary industries. Oil-rich countries such as Gabon and Congo have relatively high GDP per capita, as does resource-rich South Africa. Yet countries in Central and East Africa such as Burundi, the Central African Republic, and Malawi still have among the lowest per capita incomes in the world. The World Bank classifies Gabon…
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