Towards inequality diagnostic tools - Visuel -
Inequality has emerged as the social challenge of the decade. Empirically, a series of influential studies of the available international evidence suggest that global inequality has been falling in the last quarter century. However, this encouraging trend appears to have been driven entirely by convergence in GDP per capita across nations and the consequent decline in inequality between countries, with the average inequality within countries remaining constant until the about 2000 but increasing thereafter.
Context

The picture within Africa is more complex, and often obscured by problems with unreliable and non-comparable data, both over time and across countries. The most careful African data analysis suggests that, measured in monetary terms, African inequality is very high. It is the most unequal continent. There is, however, huge variation in the magnitude, changes and texture of this inequality across the continent.

This implies a double danger. Africa needs to ensure that it is included in the international measurements. At least as importantly, the continent must ensure that the specifics of its societies are considered in the analysis both of the factors causing inequality and the consequences of inequality. It is this analysis that is the basis for policy interventions and civil society action to turn the tide. It is disastrous, therefore, to fail to measure and understand the realities of each context. The Centre of Excellence will directly address both the analytic and measurement challenges through the development of diagnostic tools and capacity building.

 


This project is part of the European Facility for a research program on Inequalities in Developing and Emerging Countries, which is coordinated by the AFD. Financed by the Development Cooperation Instrument of the European Union, this facility enables to implement 20 research projects over the 2017-2020 period, in partnership with donors and research centers from the South to the North. 


 

Goals

The main objective of this research project will be to advance the analysis of African inequality and the policy discussion on strategies to overcome inequality in Africa through a series of country-level engagements. The project is given structure and impetus through the development of a diagnostic tool that will be implemented in a limited number of pilot countries. This diagnostic tool will consist of a thorough analysis of the various inequalities in a given country which will help the government to identify the priorities and policy options in order to reduce them.

In order to build the diagnostic tool, a handbook will be developed that will set up a common base which will allow country comparisons. And, as to extend its use and improve accountability, it will be backed with a central data hub and strong data centres in each partner country that will allow and facilitate further inequality analysis.

Method

The diagnostic tool will be based on three pillars :

  • a conceptual and empirical review of the studies on inequality in Africa, allowing us to have a baseline for the development of future projects, as well as a better comprehension of the specificities of inequalities in Africa and of their measurement;
  • a handbook which will contain the framework proposed for the country inequality diagnostics, the methodological issues around the measurement of inequalities and their analysis and  the important issues linked to policies;
  • and the support to the implementation of the country diagnostic, in collaboration with the pilot countries’ local research teams and the creation of the data hub.
Results

In practical terms, the country diagnostic will take the form of a report which overviews the inequality within a country, across all relevant dimensions, for a given time and over time. Alongside this, it summarises the main policies passed or in place expected to have an impact on inequalities. Each country will use their diagnostic as a platform for:

  • policy engagements on strategies to overcome inequality,
  • the stimulation of national dialogue and a national research focus on inequality,
  • and leading the national discussion through further, high impact research papers from the country node on inequality.

In the case of South Africa the country diagnostic was produced by Statistics South Africa (Stats SA) in partnership with the Southern Africa Labour and Development Research Unit (SALDRU) based in the School of Economics at the University of Cape Town and the Agence Francaise de Développement (AFD) with partial funding support from the European Union (EU).

You may find the South Africa diagnostic here: Inequality Trends in South Africa

 

Teachings
19/11/2018
Project start date
15/04/2020
Project end date
1 year and 5 months
Duration of the program
Ghana, Côte d'Ivoire, Kenya, South Africa
Location
200 000
Financing amount

Contact: 

Anda David, Research Officer, AFD

The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.