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Addressing inequality is indispensable for better economic outcomes

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Addressing inequality is indispensable for better economic outcomes

Addressing inequality is indispensable for better economic outcomes
Photo credit: World Bank

Although most countries in Eastern Africa have experienced strong economic growth and are broadly improving the living standards of their citizens, national averages often mask uneven progress and rising disparities.

Inequality is still a growing concern in Africa and there is robust evidence that it undermines economic and social development in many parts of the continent. The meeting of the Intergovernmental Committee of Experts in Nairobi, organized by the UN Economic Commission for Africa (ECA), discussed how to attain inclusive development.

The participants to the meeting examined the African Social Development Index (ASDI), as a tool to measure inclusive development and social transformation, and a way to ensure economic development translates into well being for African populations.

ECA launched ASDI to help African countries track progress made towards the reduction of human exclusion, to identify specific social challenges and thus develop equitable and inclusive social policies.

Adrian Gauci, ECA Senior Economist who presented the ASDI explained that the index follows a life-cycle approach recognising that people can face different forms of exclusion at different stages of their lives. “This Index aims at estimating the depth of human exclusion in six key dimensions over time, including survival, nutrition, education, employment, means of subsistence, and decent life for the elderly,” said Gauci.

Pedro Martins, ECA Economic Affairs Officer presented an assessment of national and sub-national inequality and provided key data enabling the understanding of the root causes and current trends related to spatial inequality. “Mapping inequality at regional, national and sub-national levels is critical to design and implement policies that promotes inclusive and transformative development,” he emphasised.

Discussions on inequality are critical for the overall theme of the ICE meeting which is: ‘Institutions, Decentralisation and Structural Transformation’.

As emphasized by the experts who participated to the session, national factors of inequality include the strength of social institutions, factors of economic growth and government policies. Therefore, evaluating and addressing inequality in the region will help member states achieve their transformation, not only at the economic level but also on social and societal levels. 

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