A Governance Dividend for Sub-Saharan Africa?

44 Pages Posted: 13 Feb 2019

See all articles by Amine Hammadi

Amine Hammadi

International Monetary Fund (IMF)

Marshall Mills

International Monetary Fund (IMF)

Nelson Sobrinho

International Monetary Fund (IMF)

Vimal Thakoor

International Monetary Fund (IMF)

Ricardo Velloso

International Monetary Fund (IMF)

Date Written: January 2019

Abstract

Countries in Sub-Saharan Africa (SSA) tend to lag those in most other regions in terms of governance and perceptions of corruption. Weak governance undermines economic performance through various channels, including deficiencies in government functions and distortions to economic incentives. It thus stands to reason that SSA countries could strengthen their economic performance by improving governance and reducing corruption.This paper estimates that strengthening governance and mitigating corruption in the region could be associated with large growth dividends in the long run. While the process would take considerable time and effort, moving the average SSA country governance level to the global average could increase the region's GDP per capita growth by about 1-2 percentage points.

Keywords: Zambia, Zimbabwe, Congo, Democratic Republic of the, Congo, Republic of, Rwanda, Senegal, Seychelles, Sierra Leone, South Africa, Sub-Saharan Africa, Sudan, Swaziland, Tanzania, Togo, Uganda, Kenya, Mauritius, Mozambique, Namibia, Niger, Nigeria, Angola, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Comoros, Corruption, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Gabon, Gambia, The, Ghana, Governance, Guinea, Guinea-Bissau, Institutions, Economic Growth, Institutions and Growth

JEL Classification: D73, O43, P48

Suggested Citation

Hammadi, Amine and Mills, Marshall and Sobrinho, Nelson and Thakoor, Vimal and Velloso, Ricardo, A Governance Dividend for Sub-Saharan Africa? (January 2019). IMF Working Paper No. 19/1, Available at SSRN: https://ssrn.com/abstract=3333733

Amine Hammadi (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Marshall Mills

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Nelson Sobrinho

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Vimal Thakoor

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Ricardo Velloso

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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