TAILIEUCHUNG - ECONOMIC DIVERSIFICATION IN AFRICA: A Review of Selected Countries

Advocates of lower statutory tax rates argue that reduced rates would increase economic growth, increase saving and investment, and boost productivity. Skeptics of this view argue that higher tax revenues are necessary for debt reduction, that tax rates on high-income taxpayers are too low (., they violate the “Buffett rule”), and that higher tax rates on high-income taxpayers would moderate increasing income inequality. This report examines top statutory individual income tax rates since 1945 in relation to these arguments and seeks to explore what, if any, association exists between the top statutory tax rates and economic growth. 9 The analysis examines. | ECONOMIC DIVERSIFICATION IN AFRICA A Review of Selected Countries A joint study by the United Nations Office of the Special Adviser on Africa and the NEPAD-OECD Africa Investment Initiative Special Adviser on Africa NEPAD-OECD AFRICA INVESTMENT INITIATIVE VjjiX NEPAD OECD AFRICAN UNION OECD United Nations OSAA 2010 FOREWORD The global financial and economic crisis has revealed Africa s vulnerability to external economic shocks. Largely dependent on the export of commodities many of the continent s economies suffered setbacks in economic growth and in their efforts to meet the Millennium Development Goals by 2015. Economic diversification holds great potential to increase Africa s resilience and would contribute to achieving and sustaining long term economic growth and development in the continent. Broadly-based economies active in a wide range of sectors and firmly integrated into their regions are better able to generate robust growth and sustainable growth. However the expansion of activities in underdeveloped sectors or indeed the development of new activities is a significant challenge and requires a combined effort by African governments the private sector and the international community. In addition and in light of the small size of many African economies a regional approach to economic diversification is imperative to reap the benefits of larger domestic markets and economies of scale. This study analyzes the economies of selected African countries and their diversification profiles and strategies. The five case studies of Angola Benin Kenya South Africa and Tunisia provide a detailed view on the state of economic diversification in the continent. From these experiences policy recommendations are drawn for African governments regional institutions and the international community. Economic diversification in Africa can deliver the improved utilization of the continent s vast agricultural and mineral processing the expansion of manufacturing

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