Conference roots for inclusive economy in Africa, Asia

The DFID-ESRC Growth Research Programme (DEGRP) and the African Economic Research Consortium (AERC) have urged African governments to empower small scale farmers, firms, women and the youth in order to achieve stable and inclusive economies.

This was during the 'Economic Opportunities for a Better Future' conference at Safari Park hotel in Nairobi that set an agenda to discuss how to leverage agriculture, financial sector development and innovation to build better economic opportunities for all.

Low-Income Countries (LICs) have experienced substantial economic growth over the last two decades, but this growth has not been sufficiently inclusive, transformational or resilient.

In many low-income countries across Africa and Asia, employment opportunities are scarce, absolute poverty has increased, and economies continue to be vulnerable to financial shocks.

A report by the African Development Bank (AfBD) showed that the African middle class has tripled over the past three decades to more than 34 per cent of the continents population.

However, the poverty rate still remains high with an estimated 63 million people in Africa still living in absolute poverty, according to a 2015 World Bank report.

"In Africa today, discourse is shifting beyond the growth renaissance realized in the region lately, to that of inclusive growth that is sustainable. The growth sectors we are looking at are wide-ranging, and can easily comprise the youth, women, small farmers, small firms, and small entrepreneurs.

“Recent empirical research shows that in low-income countries, there are serious financial and other development gaps that impede inclusive growth," said Professor Lemma W. Senbet, AERC Executive Director.

DEGRP research explains what is happening, and it also offers fresh insights into how to promote economic opportunities for all.

It notes that productivity in low-income countries has begun to grow faster over the last decade and that innovation is happening in unexpected corners, often under the radar screen. Moreover, new evidence suggests on the significant dispersion of performance across sectors, locations, firms and even within firms offers yet more scope for improvements.

"To make this a reality for the many, however, we need to work on global competition and collaboration; development of appropriate national innovation systems and industrial policies; avoidance of financial crises; appropriate banking standards; better links between finance and the real economy; training and female empowerment; and combinations of asset transfer, information and training" says Dirk Willem te Velde, Finance and Innovation research lead for the DEGRP programme.

Stakeholders were asked to invest more in agriculture since it has the potential to drive the Kenyan and low income countries' economies and position the continent as a global food basket.