Global Issues
Africa a Potential Global Growth Pole
Africa is the only developing region expected to grow in 2012 but it must tap into widespread sources of growth to reach its full potential, according to a new U.N. report.
Africa is expected to grow by 5.1 per cent in 2012 according to the U.N. report released Wednesday by the Department of Economic and Social Affairs (DESA).
Robert Vos, director of Development Policy and Analysis Division at DESA compared the new report on Africa with the recent global economic update World Economy Situation and Prospects for 2012, which focused on the European crisis.
Vos was pessimistic about the situation in Europe but said, 'I am happy to report that in the case of Africa there is some positive news to report on.'
But 'if the situation deteriorates and the financial fragility plays out in Europe that could induce more volatile capital flows for Africa and could also affect foreign direct investments,' Vos said.
Africa's growth fell from 4.6 percent in 2010 to 2.7 per cent in 2011 primarily due to the political instability in North Africa and the global economic and financial crises, according to the report.
Although the region is expected to increase its growth rate in 2012, Africa still needs to improve in some areas, with high unemployment especially among young people and 'poverty rates (remaining) stubbornly high,' said Vos.
However Africa has a lot of potential to become a global growth pole. The continent boasts a burgeoning youth population and a multitude of natural resources, home to 12 percent of the world’s oil reserves, 90 percent of its gold mining and between 80 and 90 percent of its chromium and platinum reserves.
'Africa has a long way to go,' said Vos. It has great potential but it needs better resource management and governance, investment in sustainable development and physical infrastructure, if it is to fulfil that potential.
© Inter Press Service (2012) — All Rights Reserved. Original source: Inter Press Service