Boosting Productivity in Sub-Saharan Africa: Policies and Institutions to Promote Efficiency

The rising concentration of extreme poverty in Sub-Saharan Africa over the past quarter century can be attributed to the fact that economic growth has been slow, productivity levels are still low, and growth has not been inclusive enough to put a big dent in poverty. What explains the dismal performance on labor productivity in Sub- Saharan Africa compared with the rest of the developing world?

This report argues that first, physical capital is scarce and economic activities in the region ha...