Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence

In spite of the similarities between Sub-Saharan Africa and the Arab Gulf region (Gulf Cooperation Council states), development policies implemented in these two regions of the world have produced markedly different and even divergent outcomes. Whi...

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Main Author:	Fofack, Hippolyte
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACTUAL VALUES ADJUSTMENT MECHANISMS ADVERSE EFFECT ADVERSE EFFECTS ADVERSE SHOCKS ASSETS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISES BALANCE OF PAYMENTS CRISIS CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL FLIGHT CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK CIVIL WARS COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ANALYSIS COMPETITIVENESS CONSOLIDATION CORRELATION COEFFICIENT COUNTRY RISK CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT CRISIS DEBT RELIEF DEBT SERVICES DECISION MAKING DEMOCRACY DEMOCRATIC INSTITUTIONS DEPENDENT VARIABLE DEPOSITS DEPRESSION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT PATH DEVELOPMENT PATHS DEVELOPMENT POLICIES DEVELOPMENT STRATEGY DISTRIBUTION OF INCOME DIVIDENDS DOLLAR PEGS DOMESTIC CREDIT DOMESTIC DEMANDS DUTCH DISEASE DUTCH DISEASES ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC DOWNTURN ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC OUTLOOK ECONOMIC PERFORMANCES ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC POWER ECONOMIC PROGRESS ECONOMIC RESEARCH ECONOMIC STRUCTURES ECONOMIC THEORY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ERROR TERMS EXCHANGE RATE EXCHANGE RATES EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT BASE EXPORT COMMODITIES EXPORT EARNINGS EXPORTER EXPORTS EXPOSURE EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEFICIT EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL POSITION FEDERAL RESERVE FEDERAL RESERVE BANK FISCAL DEFICITS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN RESERVES FUTURE RESEARCH GDP GDP PER CAPITA GLOBAL CAPITAL GLOBAL CAPITAL MARKET GLOBAL CAPITAL MARKETS GLOBAL DEMANDS GLOBAL ECONOMY GLOBAL IMBALANCES GLOBAL STANDARDS GLOBALIZATION GOOD GOVERNANCE GOVERNMENT BUDGETS GRAVITY MODEL GROSS CAPITAL FORMATION GROSS DOMESTIC PRODUCTS GROWTH PERFORMANCE GROWTH POLICIES GROWTH RATE GROWTH RATES HUMAN RIGHTS IMBALANCES IMPORTS INCOME INCOME GROWTH INCOME LEVELS INDEBTEDNESS INSTITUTIONAL ENVIRONMENT INSTITUTIONAL MODELS INTEREST INCOME INTEREST INCOMES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INVESTMENT RATES LABOR FORCE LABOR MARKET LIFE EXPECTANCY LIVING STANDARDS LONG-TERM INVESTMENTS M2 MACROECONOMIC PERFORMANCE MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARGINAL PROPENSITY TO IMPORT MIDDLE-INCOME COUNTRY MISMANAGEMENT MONEY CREATION MONEY SUPPLY NATIONAL DEVELOPMENT NATIONAL INCOME NATIONAL OUTPUT NATIONAL SAVING NATURAL RESOURCE NATURAL RESOURCES NET CAPITAL OIL EXPORTS OIL PRICE OPPORTUNITY COSTS OPTIMAL ALLOCATION OUTPUT GAP OUTPUT PER CAPITA OUTPUT RESPONSE PER CAPITA INCOME PER CAPITA INCOMES PERSONAL INCOME POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PORTFOLIO POTENTIAL OUTPUT POVERTY REDUCTION PRICE HIKES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR DEVELOPMENT PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SPENDING RATE OF GROWTH REAL EFFECTIVE EXCHANGE RATE RENT SEEKING RESERVE ACCUMULATION RESERVE HOLDINGS RESPONSE TO SHOCKS RISK EXPOSURE SAVINGS SOCIAL COSTS STANDARD DEVIATION STATE CAPTURE STATIC ANALYSIS SUSTAINABLE DEVELOPMENT SUSTAINABLE GROWTH TOTAL EXPORT TOTAL EXPORT REVENUE TOTAL EXPORTS TOTAL IMPORTS TOTAL RESERVES TRADE DEFICIT TRADE DEFICITS TRADE SHOCKS TRADES TRADING PARTNER TRADING PARTNERS UNEMPLOYMENT UNEMPLOYMENT RATES VOLATILITY VOLUME OF TRADE WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMIES WORLD ECONOMY WORLD PRICES
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820145052 http://hdl.handle.net/10986/4217

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repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACTUAL VALUES ADJUSTMENT MECHANISMS ADVERSE EFFECT ADVERSE EFFECTS ADVERSE SHOCKS ASSETS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISES BALANCE OF PAYMENTS CRISIS CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL FLIGHT CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK CIVIL WARS COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ANALYSIS COMPETITIVENESS CONSOLIDATION CORRELATION COEFFICIENT COUNTRY RISK CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT CRISIS DEBT RELIEF DEBT SERVICES DECISION MAKING DEMOCRACY DEMOCRATIC INSTITUTIONS DEPENDENT VARIABLE DEPOSITS DEPRESSION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT PATH DEVELOPMENT PATHS DEVELOPMENT POLICIES DEVELOPMENT STRATEGY DISTRIBUTION OF INCOME DIVIDENDS DOLLAR PEGS DOMESTIC CREDIT DOMESTIC DEMANDS DUTCH DISEASE DUTCH DISEASES ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC DOWNTURN ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC OUTLOOK ECONOMIC PERFORMANCES ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC POWER ECONOMIC PROGRESS ECONOMIC RESEARCH ECONOMIC STRUCTURES ECONOMIC THEORY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ERROR TERMS EXCHANGE RATE EXCHANGE RATES EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT BASE EXPORT COMMODITIES EXPORT EARNINGS EXPORTER EXPORTS EXPOSURE EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEFICIT EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL POSITION FEDERAL RESERVE FEDERAL RESERVE BANK FISCAL DEFICITS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN RESERVES FUTURE RESEARCH GDP GDP PER CAPITA GLOBAL CAPITAL GLOBAL CAPITAL MARKET GLOBAL CAPITAL MARKETS GLOBAL DEMANDS GLOBAL ECONOMY GLOBAL IMBALANCES GLOBAL STANDARDS GLOBALIZATION GOOD GOVERNANCE GOVERNMENT BUDGETS GRAVITY MODEL GROSS CAPITAL FORMATION GROSS DOMESTIC PRODUCTS GROWTH PERFORMANCE GROWTH POLICIES GROWTH RATE GROWTH RATES HUMAN RIGHTS IMBALANCES IMPORTS INCOME INCOME GROWTH INCOME LEVELS INDEBTEDNESS INSTITUTIONAL ENVIRONMENT INSTITUTIONAL MODELS INTEREST INCOME INTEREST INCOMES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INVESTMENT RATES LABOR FORCE LABOR MARKET LIFE EXPECTANCY LIVING STANDARDS LONG-TERM INVESTMENTS M2 MACROECONOMIC PERFORMANCE MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARGINAL PROPENSITY TO IMPORT MIDDLE-INCOME COUNTRY MISMANAGEMENT MONEY CREATION MONEY SUPPLY NATIONAL DEVELOPMENT NATIONAL INCOME NATIONAL OUTPUT NATIONAL SAVING NATURAL RESOURCE NATURAL RESOURCES NET CAPITAL OIL EXPORTS OIL PRICE OPPORTUNITY COSTS OPTIMAL ALLOCATION OUTPUT GAP OUTPUT PER CAPITA OUTPUT RESPONSE PER CAPITA INCOME PER CAPITA INCOMES PERSONAL INCOME POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PORTFOLIO POTENTIAL OUTPUT POVERTY REDUCTION PRICE HIKES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR DEVELOPMENT PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SPENDING RATE OF GROWTH REAL EFFECTIVE EXCHANGE RATE RENT SEEKING RESERVE ACCUMULATION RESERVE HOLDINGS RESPONSE TO SHOCKS RISK EXPOSURE SAVINGS SOCIAL COSTS STANDARD DEVIATION STATE CAPTURE STATIC ANALYSIS SUSTAINABLE DEVELOPMENT SUSTAINABLE GROWTH TOTAL EXPORT TOTAL EXPORT REVENUE TOTAL EXPORTS TOTAL IMPORTS TOTAL RESERVES TRADE DEFICIT TRADE DEFICITS TRADE SHOCKS TRADES TRADING PARTNER TRADING PARTNERS UNEMPLOYMENT UNEMPLOYMENT RATES VOLATILITY VOLUME OF TRADE WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMIES WORLD ECONOMY WORLD PRICES
spellingShingle	ACTUAL VALUES ADJUSTMENT MECHANISMS ADVERSE EFFECT ADVERSE EFFECTS ADVERSE SHOCKS ASSETS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISES BALANCE OF PAYMENTS CRISIS CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL FLIGHT CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK CIVIL WARS COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ANALYSIS COMPETITIVENESS CONSOLIDATION CORRELATION COEFFICIENT COUNTRY RISK CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT CRISIS DEBT RELIEF DEBT SERVICES DECISION MAKING DEMOCRACY DEMOCRATIC INSTITUTIONS DEPENDENT VARIABLE DEPOSITS DEPRESSION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT PATH DEVELOPMENT PATHS DEVELOPMENT POLICIES DEVELOPMENT STRATEGY DISTRIBUTION OF INCOME DIVIDENDS DOLLAR PEGS DOMESTIC CREDIT DOMESTIC DEMANDS DUTCH DISEASE DUTCH DISEASES ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC DOWNTURN ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC OUTLOOK ECONOMIC PERFORMANCES ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC POWER ECONOMIC PROGRESS ECONOMIC RESEARCH ECONOMIC STRUCTURES ECONOMIC THEORY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ERROR TERMS EXCHANGE RATE EXCHANGE RATES EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT BASE EXPORT COMMODITIES EXPORT EARNINGS EXPORTER EXPORTS EXPOSURE EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEFICIT EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL POSITION FEDERAL RESERVE FEDERAL RESERVE BANK FISCAL DEFICITS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN RESERVES FUTURE RESEARCH GDP GDP PER CAPITA GLOBAL CAPITAL GLOBAL CAPITAL MARKET GLOBAL CAPITAL MARKETS GLOBAL DEMANDS GLOBAL ECONOMY GLOBAL IMBALANCES GLOBAL STANDARDS GLOBALIZATION GOOD GOVERNANCE GOVERNMENT BUDGETS GRAVITY MODEL GROSS CAPITAL FORMATION GROSS DOMESTIC PRODUCTS GROWTH PERFORMANCE GROWTH POLICIES GROWTH RATE GROWTH RATES HUMAN RIGHTS IMBALANCES IMPORTS INCOME INCOME GROWTH INCOME LEVELS INDEBTEDNESS INSTITUTIONAL ENVIRONMENT INSTITUTIONAL MODELS INTEREST INCOME INTEREST INCOMES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INVESTMENT RATES LABOR FORCE LABOR MARKET LIFE EXPECTANCY LIVING STANDARDS LONG-TERM INVESTMENTS M2 MACROECONOMIC PERFORMANCE MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARGINAL PROPENSITY TO IMPORT MIDDLE-INCOME COUNTRY MISMANAGEMENT MONEY CREATION MONEY SUPPLY NATIONAL DEVELOPMENT NATIONAL INCOME NATIONAL OUTPUT NATIONAL SAVING NATURAL RESOURCE NATURAL RESOURCES NET CAPITAL OIL EXPORTS OIL PRICE OPPORTUNITY COSTS OPTIMAL ALLOCATION OUTPUT GAP OUTPUT PER CAPITA OUTPUT RESPONSE PER CAPITA INCOME PER CAPITA INCOMES PERSONAL INCOME POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PORTFOLIO POTENTIAL OUTPUT POVERTY REDUCTION PRICE HIKES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR DEVELOPMENT PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SPENDING RATE OF GROWTH REAL EFFECTIVE EXCHANGE RATE RENT SEEKING RESERVE ACCUMULATION RESERVE HOLDINGS RESPONSE TO SHOCKS RISK EXPOSURE SAVINGS SOCIAL COSTS STANDARD DEVIATION STATE CAPTURE STATIC ANALYSIS SUSTAINABLE DEVELOPMENT SUSTAINABLE GROWTH TOTAL EXPORT TOTAL EXPORT REVENUE TOTAL EXPORTS TOTAL IMPORTS TOTAL RESERVES TRADE DEFICIT TRADE DEFICITS TRADE SHOCKS TRADES TRADING PARTNER TRADING PARTNERS UNEMPLOYMENT UNEMPLOYMENT RATES VOLATILITY VOLUME OF TRADE WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMIES WORLD ECONOMY WORLD PRICES Fofack, Hippolyte Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence
geographic_facet	Africa Middle East and North Africa
relation	Policy Research working paper ; no. WPS 5025
description	In spite of the similarities between Sub-Saharan Africa and the Arab Gulf region (Gulf Cooperation Council states), development policies implemented in these two regions of the world have produced markedly different and even divergent outcomes. While Gulf Cooperation Council states have drawn on hydrocarbon revenues to dramatically transform their economic landscape, Sub-Saharan African countries have exhibited abysmal economic and social outcomes. The remarkable increase in personal income and large current account surpluses in Arab Gulf states is in sharp contrast with widespread poverty and recurrent balance of payments crises in Sub-Saharan Africa. This paper reviews the possible causes of these divergent development paths and discusses the prospects for economic convergence in the new globalization landscape of growing trade ties between the two regions. In particular, it shows that development models underpinned by institutional continuity and intergenerational accountability could enhance long-run growth in Sub-Saharan Africa and income convergence between the two regions.
format	Publications & Research :: Policy Research Working Paper
author	Fofack, Hippolyte
author_facet	Fofack, Hippolyte
author_sort	Fofack, Hippolyte
title	Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence
title_short	Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence
title_full	Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence
title_fullStr	Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence
title_full_unstemmed	Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence
title_sort	africa and arab gulf states : divergent development paths and prospects for convergence
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820145052 http://hdl.handle.net/10986/4217
_version_	1764390454159212544
spelling	okr-10986-42172021-04-23T14:02:16Z Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence Fofack, Hippolyte ACTUAL VALUES ADJUSTMENT MECHANISMS ADVERSE EFFECT ADVERSE EFFECTS ADVERSE SHOCKS ASSETS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISES BALANCE OF PAYMENTS CRISIS CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL FLIGHT CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK CIVIL WARS COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ANALYSIS COMPETITIVENESS CONSOLIDATION CORRELATION COEFFICIENT COUNTRY RISK CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT CRISIS DEBT RELIEF DEBT SERVICES DECISION MAKING DEMOCRACY DEMOCRATIC INSTITUTIONS DEPENDENT VARIABLE DEPOSITS DEPRESSION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT PATH DEVELOPMENT PATHS DEVELOPMENT POLICIES DEVELOPMENT STRATEGY DISTRIBUTION OF INCOME DIVIDENDS DOLLAR PEGS DOMESTIC CREDIT DOMESTIC DEMANDS DUTCH DISEASE DUTCH DISEASES ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC DOWNTURN ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC OUTLOOK ECONOMIC PERFORMANCES ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC POWER ECONOMIC PROGRESS ECONOMIC RESEARCH ECONOMIC STRUCTURES ECONOMIC THEORY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ERROR TERMS EXCHANGE RATE EXCHANGE RATES EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT BASE EXPORT COMMODITIES EXPORT EARNINGS EXPORTER EXPORTS EXPOSURE EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEFICIT EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL POSITION FEDERAL RESERVE FEDERAL RESERVE BANK FISCAL DEFICITS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN RESERVES FUTURE RESEARCH GDP GDP PER CAPITA GLOBAL CAPITAL GLOBAL CAPITAL MARKET GLOBAL CAPITAL MARKETS GLOBAL DEMANDS GLOBAL ECONOMY GLOBAL IMBALANCES GLOBAL STANDARDS GLOBALIZATION GOOD GOVERNANCE GOVERNMENT BUDGETS GRAVITY MODEL GROSS CAPITAL FORMATION GROSS DOMESTIC PRODUCTS GROWTH PERFORMANCE GROWTH POLICIES GROWTH RATE GROWTH RATES HUMAN RIGHTS IMBALANCES IMPORTS INCOME INCOME GROWTH INCOME LEVELS INDEBTEDNESS INSTITUTIONAL ENVIRONMENT INSTITUTIONAL MODELS INTEREST INCOME INTEREST INCOMES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INVESTMENT RATES LABOR FORCE LABOR MARKET LIFE EXPECTANCY LIVING STANDARDS LONG-TERM INVESTMENTS M2 MACROECONOMIC PERFORMANCE MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARGINAL PROPENSITY TO IMPORT MIDDLE-INCOME COUNTRY MISMANAGEMENT MONEY CREATION MONEY SUPPLY NATIONAL DEVELOPMENT NATIONAL INCOME NATIONAL OUTPUT NATIONAL SAVING NATURAL RESOURCE NATURAL RESOURCES NET CAPITAL OIL EXPORTS OIL PRICE OPPORTUNITY COSTS OPTIMAL ALLOCATION OUTPUT GAP OUTPUT PER CAPITA OUTPUT RESPONSE PER CAPITA INCOME PER CAPITA INCOMES PERSONAL INCOME POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PORTFOLIO POTENTIAL OUTPUT POVERTY REDUCTION PRICE HIKES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR DEVELOPMENT PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SPENDING RATE OF GROWTH REAL EFFECTIVE EXCHANGE RATE RENT SEEKING RESERVE ACCUMULATION RESERVE HOLDINGS RESPONSE TO SHOCKS RISK EXPOSURE SAVINGS SOCIAL COSTS STANDARD DEVIATION STATE CAPTURE STATIC ANALYSIS SUSTAINABLE DEVELOPMENT SUSTAINABLE GROWTH TOTAL EXPORT TOTAL EXPORT REVENUE TOTAL EXPORTS TOTAL IMPORTS TOTAL RESERVES TRADE DEFICIT TRADE DEFICITS TRADE SHOCKS TRADES TRADING PARTNER TRADING PARTNERS UNEMPLOYMENT UNEMPLOYMENT RATES VOLATILITY VOLUME OF TRADE WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMIES WORLD ECONOMY WORLD PRICES In spite of the similarities between Sub-Saharan Africa and the Arab Gulf region (Gulf Cooperation Council states), development policies implemented in these two regions of the world have produced markedly different and even divergent outcomes. While Gulf Cooperation Council states have drawn on hydrocarbon revenues to dramatically transform their economic landscape, Sub-Saharan African countries have exhibited abysmal economic and social outcomes. The remarkable increase in personal income and large current account surpluses in Arab Gulf states is in sharp contrast with widespread poverty and recurrent balance of payments crises in Sub-Saharan Africa. This paper reviews the possible causes of these divergent development paths and discusses the prospects for economic convergence in the new globalization landscape of growing trade ties between the two regions. In particular, it shows that development models underpinned by institutional continuity and intergenerational accountability could enhance long-run growth in Sub-Saharan Africa and income convergence between the two regions. 2012-03-19T19:12:01Z 2012-03-19T19:12:01Z 2009-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820145052 http://hdl.handle.net/10986/4217 English Policy Research working paper ; no. WPS 5025 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Middle East and North Africa

Africa and Arab Gulf states : Divergent Development Paths and Prospects for Convergence

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