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From Africa Renewal, Vol.20 #3 (October 2006), page 6 By Gumisai Mutume Since the mid-1990s, economic performance has improved significantly in many African countries, with average annual growth in gross domestic product (GDP) rising steadily from less than 3 per cent in 1998 to 5 per cent in 2005. In theory, according to many economists, this should have led to higher employment.

However, notes Ms. Okonjo-Iweala, the former Nigerian finance minister, “In most of our countries, economic growth is not resulting in significant job creation and therefore in poverty reduction.”

This lack of job opportunities contributes to many social problems. Without alternatives, many young women and girls are forced into sex work. Studies show that young jobless people living on the street are more likely than their employed counterparts to abuse illicit substances or join armed groups.

“Jobless growth isn’t just bad social policy, it is bad economics,” says ILO Director-General Juan Somavia. “It results in less consumption, more migration, more child labour and lower aggregate demand.” Those maladies in turn lead to reduced investments, less funding for pensions, lower tax revenue and other resources for social policies, and ultimately more poverty.

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Africa Renewal
(Visit Africa's Website)
The Africa Renewal information programme, produced by the Africa Section of the United Nations Department of Public Information, provides up-to-date information and analysis of the major economic and development challenges facing Africa today. Among the major items it produces is the renowned magazine, Africa Renewal (formerly Africa Recovery), which first appeared in 1987. It also produces a range of public information materials, including backgrounders, press releases and feature articles. It works with the media in Africa and beyond to promote the work of the United Nations, Africa and the international community to bring peace and development to Africa.
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