Gender Equity as a Catalyst for
Economic Transformation in Africa
2000 World Population
6.1 Billions
2024 World Population
8.1 Billions
Demographic Composition Conditions Policy Planning
The composition of the population, specifically its age distribution, provides valuable insights into the social and economic priorities for public policy planning. Countries not nearing the demographic dividends’ stage, i.e. where the majority of the population is not of working age, may face varying levels of dependency ratios. These ratios can be imbalanced towards either high child dependency or old-age dependency.
High child dependency puts fiscal pressure on per capita education spending
[…] high child dependency ratios can strain per capita public investment and hinder job growth. If the growth of the school-age population outpaces education budgets, per capita spending on education will decrease, impacting future growth and employment prospects, which rely on quality education today.
High child dependency also puts progressive fiscal pressure on future labor markets
On the other hand, African economies are already struggling to create well-paying, stable jobs, let alone address the imminent demographic challenge.
Effective public investments in human capital can take very long time to mature, as they are closely linked to demographic dynamics, which operate on long-term scales. Consequently, the nature of planning should be conceived on the long term dimension as well.
Therefore, ensuring Africa does not miss the opportunity of maximizing its demographic dividends requires designing and implementing highly effective medium- and long-term development plans. These plans must be closely monitored and adjusted as contexts and forecasts change. The challenge is significant, and time is short. So, where to start?
One policy priority stands out: Domestic Resources Mobilization (DRM). Significantly improving the state’s ability to rely on predictable financial flows is crucial for supporting development sustainability with sustainable finances (Duarte, Cristina 2020).
This does not contradict the imperative of focusing on women and youth; rather, it complements it. Maintaining policy focus on these groups may hold unparalleled potential for long-term benefits. Substantial, well-targeted, and sustained human capital investments could deliver aggregate returns at sufficiently high levels to enact the kind of economic transformation hoped for.
More Spending
[…] while it needs recognizing that better funding alone does not guarantee improved learning outcomes, countries that spend the least per school-age child face higher levels of learning poverty and fewer learning-adjusted years of schooling World Bank Feature Story, April 24 2023.
Higher AND more efficient education Spending is needed
[…] according to the IMF, to achieve universal primary and secondary school enrollment by 2030, education expenditures may need to double, including contributions from both public and private sectors. This would require not just higher funding but also more efficient use of resources to ensure maximum impact per dollar spent.