Global Economic crisis and sub-Saharan Africa Essay

Global Economic crisis and sub-Saharan Africa - Essay Example This trend of borrowing also impacted some of the banks and financial institutions in the Sub-Saharan region as well, but the extent was somewhat lesser. Arieff et al (2009) figure out that, in nearly two decades, it is for the first time that South Africa has started experiencing recessionary trends. The study also points out that, countries like Nigeria and Angola to 'have reported significant revenue shortfalls due to the fall in global oil prices'. A recent study by IMF underlines the gravity of the situation by stating that, "The current financial crisis is more global than any other period of financial turmoil in the past 60 years" (IMF, 2009). This study further quotes from the 'World Economic Outlook, 2009' that the global growth is bound to further slow down from about 3.5 percent to just about 0.5 percent in 2009 with shades of some improvement by the middle of 2010. The Sub-Saharan region, also known as black Africa comprises of countries with many lesser developed nations like Angola, Burkina Faso, Burundi, Rwanda, Somalia, Ghana etc. While many like South Africa, Mauritius, Senegal, Nigeria, Kenya etc. have been able to register indicative growth figures many other like Rwanda, Sierra Leone etc. have been experiencing difficulties on many fronts on account of civil wars as well. This is further eroding the overall growth figures of the Sub-Saharan region. FDIs also prove to be advantageous for the economic growth pote ntial of a country. But a number of factors impact the investment climate within the region. As is evident from the 'World Economic Forum's 'Global Competitiveness Report 2009-10' while countries like Zimbabwe have registered some improvement in the investment climate, there are many other countries in the region which are yet to tide over the domestic unrest (WEF, 2009). It is under such circumstances that the overall economic situation in the Sub-Saharan region is a mix of conflictions. This study is therefore an effort to find out a larger picture of the economic growth potential in the Sub-Saharan region and how the global economic crisis has impacted the growth potential in different countries within the region. Research Questions and Objectives The main intention of the study is to develop an understanding of the diversities in the Sub-Saharan region, the years of neglect and under-development faced by the people of this region and to what extent the global economic crisis has further decelerated the economic growth prospects of the region. During the study an effort will be made to analyze the general economic conditions of some of the countries in the sub-Saharan region and how these countries have progressed over the years in the post globalization period. A broader understanding will be made about the subject by soliciting the opinion and recommendations of reputed organizations and analysts. An attempt would be made to seek answers to the following key objectives; Establish a well studied relationship between the economic prospects of the Sub-Saharan region vis--vis some of the leading nations like the US, China, UK etc. To find out the development figures of the sub-Saharan r