by Richard Joseph
Why did sub-Saharan Africa experience such a prolonged economic downturn starting in the mid-1970s? And why has it experienced such a sustained economic upturn since the mid-1990s? A consensus did emerge that the former trend was caused by bad governance, bad policies, declining investments, and unfavorable terms of trade. But what accounts for the positive growth rates over the past two decades, and why are they seen under such a diverse array of political systems? Finally, will African countries grow out of mass poverty, or will we see a new equilibrium of economic expansion without structural transformation – the latter understood as increased productivity, more and better-paid jobs, diversified exports, and vastly improved infrastructures? While we have become more aware of the growth-governance puzzle, resolving it remains elusive.