LOW INCOME AFRICA

LOW INCOME AFRICA

LOW INCOME AFRICA

Inroduction

Income is the utilization and cutback opportunity that earned by a unit in particular time duration and usually express in monetary form. Sub Saharan Africa is the second largest continent with second largest population, Africa is comprised on 47 countries have been classified by the World Bank into four different categories on the basis GNI per capita, in 2009

(a) With GNI per capita of $995 or less Low income,

(b) $12,196 or more, High income,

(c) $3,946 - $12,195, Upper middle income, (d) $996 - $3,945, Lower middle income (Kumo, 2010)

Discussion and Analysis

Low Income

At the same time of 2009, 31 countries out of 47 in Africa were encountered in low income economies. But even that was the record but since 2001 the growth of these low income countries are improving a lot. Like Benin, Central African Republic, Democratic Republic of the Congo, Ghana, Guinea, Kenya, Liberia, Niger, Senegal, Somalia, Burkina Faso. Since in fact Africa economy is heterogeneous in nature and counted into the least developed countries, (LDC) categorization is not reflected the authenticity and neglecting the effects that can be immediate.

It's a well said that if someone wants to see the economy of a country, it can be judged by checking out their road's condition. The infrastructure of the low and middle income economies are slowly developed, it does not have a significant change with the infrastructure of South Asia, as well the economy is also getting equal to south region of the Asia, that is a positive direction toward the achievement in low income Africa. (World Bank Group, 2010)

Middle Income

There are tow further sub categories fall into the middle income that are Upper middle and Lower middle incomes. These countries are those who have greater economy than the lower one, there ten countries that deemed as lower middle income economy and only six countries who fall into the upper middle countries. Only low income group that may be considered in LDCs but according to the obsolete division by the World Bank, the lower middle economies should also fall into the LDC even as these lower middle economies have been exceeded the Gross National Income of the respective country per capita threshold.

High Income

There is non OECS with the high income economy of the Africa, only one country is considered as the high income country that is Equatorial Guinea that is the richest country and owns ...