The Poor In Sub-Saharan Africa

Decent Essays
Jungkyu Kim Green = Plagiarism Check Yellow = Word Choice FYS Paper #2 Over the past four decades, the economy has undoubtedly become an integral part of the whole entire world. Global GDP has almost doubled since 1975 with the assistance of new innovative technology and reductions in trade barriers. The overall global growth driven by trade openness has also reduced a significant proportion of people in poverty, the number floating just around 1 billion in 2011 and the most up to date number since. Lowering trade costs for deeper integration of markets holds the most promise out of the five areas of polices mentioned because it unlocks the economic growth needed for poverty reduction and create new trade opportunities for the poor through…show more content…
One of the first of the constraints, rural areas, is a characteristic of almost all regions that have concentrated numbers of extremely poor people. In Africa, an estimated 75 percent of the extreme poor live in rural areas. Those who do live in rural areas have a very difficult time taking advantage of the trade opportunities that arose from global growth. The reason for this is producers in rural areas often lack access to access to critical services inputs, such as transportation, communication and financial services, electricity and safe water. In addition to this, the producers also have a difficult time paying for material inputs such as seeds and fertilizers. Ultimately, the producers have an extremely difficult challenge of getting their products to their final markets and end up experiencing high post-harvest losses which contribute to their…show more content…
As we’ve seen before how detrimental time constraints can be on the exportation of products, speeding up the time duration of exportation processes will be a great factor in increasing the number of exportations. For Sub-Saharan African countries, one set of simulations show that improving trade facilitation can increase the number of exports up by 16 percent. Not only that, but the TFA is also projected to promoted export diversification and on average reduce developing countries’ trade costs by 14
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