Africa Today

African Economics

The relationship between a country’s

economy and its literacy rate.

Let’s look at …

What does literacy rate mean?

The percentage of people in a country that can read and write.

What in the world is GDP?Gross Domestic ProductThe total market value of all final goods and services produced within the country in a given period of time (usually a calendar year). Countries seek to increase their GDP to improve their standard of living

So, what is GDP per capita?Per capita is a measure of wealthPer capita income means how much money each individual would receive IF a country divided its yearly income equally among everyone.Is used to measure a nation’s wealth with the wealth of other nations.

Look at the following chart and try to determine the following …

Does the literacy rate of a country seem to have an affect on …

GDP per capita?Life expectancy?Industrial production growth rate?

Lite

racy

Rat

e - p

erce

ntag

e

GDP pe

r cap

ita -

dolla

rs

Life

Exp

ecta

ncy

in y

ears

Indu

stria

l pro

duct

ion

grow

th ra

te -

perc

enta

ge0

20

40

60

80

100

120

140

South AfricaTanzaniaRwandaMozambiqueGhanaSudanSierra LeonLibyaChad

Other factors?Other than the literacy rate, what other factors may affect a country’s GDP per capita?

So, how does literacy rate affect the standard of living in Africa?

Normally, the higher the literacy rate the higher the GDP per capita.

What is the relationship between investment in human capital and GDP?

First … what is human capital?

The health, strength, education, training, and skills that people bring to their jobs.

What is the relationship between investment in human capital and GDP?

•What do you think would be an example of human capital?•How can a country invest in human capital?•Do you think a country would be wise to invest in human capital?•What is the relationship between investment in human capital and the GDP?•Do you think our chart supports your answer?

Economy – Two Case Studies

South Africa & Nigeria

South Africa’s Economy

Gold and diamondsTourism has developed into an important economic factor over the last years

Rand – South Africa’s currency

Nigeria’s Economy

The economy of Nigeria historically was based on agriculture, and more than half of the workforce is still engaged in farming (largely of a subsistence type).But then oil was discovered!Today, Nigeria’s economy is considered a “dual economy” – half economy based in agriculture – the other half based in oil!

Take a minute to think …

Which do you think would be better for a country … to EXPORT more oil … OR to IMPORT more oil? Be able to defend your answer!

AIDS and Famine in Africa

Between 1999 and 2000 more people died of AIDS in Africa than in all the wars on the continent.WHY? Lack of medical care, lack of medicine, lack of education – therefore, people don’t know how to prevent the spread of AIDS.

AIDS & Famine continued

AIDS affects different segments of society in different ways. Example –

Children have to care for sick parents. Schooling may suffer as a result. Children become orphans when parents die of AIDS.

Famine in Africa

Most Deadly Periods of Starvation

Somalia – 2010 – 2012 – appx. 260,000 diedSudan – 1998 - along with civil war, 70,000 diedSomalia – 1991 – 1992 – 300,000 diedEthiopia – 1983 – 1985 – 1 million diedUganda – 1980 – 1983 – 30,000 diedMany, many more … these are just a few!

What causes famine?Drought Conflict Misuse of the land

Just one more issue … the issue of education. How does gender affect access to education in Kenya and Sudan?

Historically, females in Africa have had much less access to education than males. Therefore, in many African countries the literacy rate among females is much lower than the literacy rate among males. However, many countries are working hard to change this.

Can you answer this question?

Why does international trade require a system for exchanging currencies between nations?

Because when I go to England, I cannot buy a Big Mac at an English McDonald’s with my American dollar! I must have the English pound to buy the Big Mac at the English McDonald’s! Therefore, there must be a system to exchange my American dollar for the English pound!

Governments of Africa

First … a short review of

governments!

A Review of Governments LEQ’s

How do the unitary, confederation, and federal government systems distribute power? How do autocratic, oligarchic, and democratic governments determine citizen participation? What are the components of parliamentary and presidential governments?

Unitary

• Central government possess MOST authority / decision-making powers

• Example – South Africa, Rwanda, Sierra Leon

Confederation

• Local governments have SOME authority / decision-making powers

• The United States PRIOR to the Constitution (Under the Articles of the Confederation)

Federal

• Power split between central and local governments in authority / decision-making powers

• Example – United States

Map of unitary governments

Autocratic

• Political power held by single, self-appointed ruler

• This person determines the role of citizens

Oligarchic

• Political power held with a small, elite few

• These few people determines the role of the citizen

Democratic

• Political power is held by the majority of the people

• The majority of the people determine the role of the citizens

A Look at Some Governments of AfricaLEQ’s

What distinguishes the form of leadership, public voting procedures and personal freedoms the republican systems of government in the Republic of Kenya, the Republic of South Africa and the dictatorship of the Republic of Sudan?

Kenya South Africa Sudan

Type of government

Citizen participation

Which LEVEL holds the power?

Presidential

Democracy

Parliamentary

Democracy

Dictatorship

Citizens vote for the

president & representativ

es

Citizens vote for the parliament &

then the parliament votes

for the president.

Citizens have no real voice

in the government.

Central government has

the power – therefore,

a UNITARY

National government has

the power – therefore a

UNITARY

National government has

the power – therefore a

UNITARY

The End!