Contrasting Growth Experience of China and Sub Saharan Africa

3176 Words Apr 11th, 2016 13 Pages
Rachel Dicker 13164067
1) With reference to theories of growth and development, explain the contrasting growth experience of China and Sub Saharan Africa post 1980.
Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future.

Development has become synonymous for industrialisation. Economic growth comes from
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Nigeria is expected to expand 4.9 percent this year and Kenya is likely to grow 6 percent.

The region is made up of 48 countries with a population of 973.4 million as correct of 2014 (The World Bank). Furthermore, over 60% of that demographic is under 30, showing promise for an increasing working age population. Africa can use this vast labour potential to increase GDP and therefore increase the wealth of the continent.
It should be noted that GDP does not measure the sustainability of growth which is necessary to continue development.
Other contributing factors to SSA’s growth in recent times are largely attributed to government actions to take actions which further better the business climates by ending political conflicts and allowing for growth to accelerate broadly between countries and sectors.
Structural changes have paved the way for allowing SSA to become competitive and attract investment; such changes have helped fuel the productivity revolution by helping companies to achieve economies of scale (McKinsey: 2010). Such improved governance has seen a number of African firms moving from informality to formality (OECD: 2006).
Furthermore, improved macroeconomic stability shows attractive promise from foreign direct investment as it allows prospect of planning and predicting, lowering the risk.
A successful example of using income…