The Impact of Global Crisis on Children in Africa

  • Children and the Economy
Pages: 100
Year of Publication: 2010
Country: Africa
As global economic recovery begins, the short and medium term impacts of the crisis on the Millenium Development Goals (MDGs) are becoming clearer. The crisis was different to previous crises in its global nature, the size of the shock, the speed of transmission, and its compound nature – following, as it did, fuel and food shocks. In terms of recovery and the fiscal outlook, there are various child poverty/MDG concerns regarding recovery speed, fiscal space and impacts on public expenditure in general (and social spending in particular), and debt service, differing considerably across countries. The macro-economic impacts have been highly variable in sub-Saharan Africa.  If we consider other macroeconomic trends across sub-Saharan Africa as a whole, we can note in data from the World economic outlook (WEO) produced by the International Monetary Fund (IMF) that growth decelerated from 6-7% to around 2%, and pre-crisis growth rates of 6-7% are still not expected to be attained before 2015. There was a fall in savings as a percentage of Gross Domestic Product (GDP), as well as a significant and apparently permanent worsening in current account position. There is an apparently permanent increase in debt service interest of an additional uS $1-2bn a year and an apparent trend upwards. Further, there was a fall of net private capital inflows from US $25bn to US $18bn (but then recovering). In addition there were large portfolio outflows of US $20bn and a further loss of US $20bn 2007-2009 in other capital, though official development assistance (ODA) increased significantly to compensate. Lastly, the volume of exports barely grew in 2008, and contracted by 7% in 2009. Outright recessions were experienced in almost a quarter (10/44) of sub-Saharan African countries. economic recovery in Africa has been v-shaped (characterised by a sharp but brief period of economic decline with a clearly defined trough, followed by a strong recovery); however, there are significant differences hidden by the averages, and some countries experienced the double whammy of large growth decelerations and slow recovery of growth rates.
Language: English
Published by: African Child Policy Forum (ACPF)
Author: Andy Sumner
Located in: Publications

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