AYV News, December 11, 2024
In a new report, the World Bank Group has urged Sierra Leone and other African nations to shift their focus from subsidies and excessive public spending to strengthening social safety nets and addressing structural inequalities.
The report titled: ‘Leveling the Playing Field: Addressing Structural Inequalities to Accelerate Poverty Reduction in Africa,’ highlights the critical role of inclusive policies in curbing poverty and inequality across the continent.
The report notes that Africa remains the world’s second-most-unequal region, with more than half of its countries recording a Gini index above 40. This inequality stems from structural factors, including insufficient public investment, market inefficiencies, and exposure to risks such as conflict and climate change. Sierra Leone, like many African nations, continues to grapple with these challenges, which have hindered poverty reduction efforts.
As of 2022, Africa’s extreme poverty rate stood at 38%, and progress in reducing poverty has stalled since the mid-2010s. The report emphasizes that these trends are exacerbated by the continent’s vulnerability to economic shocks and slow, volatile growth.
However, the World Bank sees potential for a turnaround. With an estimated 8–11 million African youths entering the labor market annually from 2020 to 2050, and the continent’s abundant resources, such as green minerals, there are opportunities to leverage this talent and wealth for economic transformation.
To realize this potential, the World Bank recommends a comprehensive policy shift. Leaders in Sierra Leone and across Africa are urged to:
1. Build Strong Foundations: Foster economic and institutional stability, eliminate barriers to competition, and safeguard property rights to create an environment where businesses and workers can thrive.
2. Invest in Human Capital: Prioritize education, healthcare, and infrastructure to enhance the productivity of the workforce. Address inequalities in access to assets such as land and technology to unlock economic opportunities.
3. Promote Market Efficiency: Remove market distortions, expand access to domestic and global markets, and improve job-matching mechanisms to drive employment and earnings growth.
The report underscores the need for Sierra Leone to address these systemic issues to create a more equitable and prosperous society. With the right policies, the World Bank believes that the country and the region can overcome these challenges and pave the way for sustainable economic growth.
“This is Africa’s moment to make a change,” the report states, calling on leaders to seize the opportunity to transform their economies and improve livelihoods.
