World Bank agricultural policies, poverty and income inequality in Sub-Saharan Africa

Abstract

The original logic underlying the World Bank's structural adjustment policies in Africa was that the removal of state-created distortions would not only improve efficiency in the operation of markets but also enhance income equality and reduce poverty. The paper explores the linkage between adjustment and the deteriorating income distribution and rising poverty in sub-Saharan Africa with a focus on the rural sector where most of the population earns its livelihoods. The pattern observed is a logical outcome of the strategies embedded in World Bank policies that need to change if we are to counter the persistence of inequality and poverty on the continent. The paper outlines an alternative approach aimed at increasing rural incomes to reduce poverty and inequality.