I first examined the World Bank’s website for information about the Ghana Poverty Reduction Strategy (GPRS). What I found was an article from 2003. The article, written by Eric Chinje, stated that the World Bank would provide about $128 million (USD) to Ghana to help the country advance in economic growth, create more jobs, and enhance health and educational services. Chinje explained that $38 million of the money would be in a grant and the rest of the money would be a loan, where Ghana didn’t have to pay any of it back for a decade but for the next forty years after that would have to be repaid at zero interest.
Also on the World Bank website, I found a paper showing the progress in Uganda achieving the goals of their Poverty Eradication Action Plan (PEAP). The executive summary of the paper gave a short description of what progress Uganda has made over the past few years and the challenges that still remain. For example, some areas that Uganda has made progress in are income poverty reduction, gender parity in primary education, HIV/AIDS, and safer water. Some areas that Uganda remains challenged in are gender parity in secondary education, infant and maternal mortality, malaria, and improving sanitation in the environment. The paper also stated ways that Uganda could improve in areas that it wasn’t doing well in. For example, gender parity in primary education is doing better, but to continue gender parity in secondary education, Uganda can promote educational institutions picked by girls and enroll girls in school earlier.
As Moyo mentioned the rating agency Standard & Poor’s several times, their website was the first place I looked to see where Sub-Saharan Africa would stand. When I looked for my country of Mali on their ratings, I couldn’t find them anywhere. There also wasn’t data for Kenya or Ghana, which are-at least to me-the most well-known African countries. I could, however, find Mali on the list of World Bank loans, which said that Mali received $1,202,881,000 in International Development Association (IDA) credits and International Bank for Reconstruction and Development (IBRD) loans. I noticed that most, if not all, Sub-Saharan African countries received over $1 billion in IDA credits and IBRD loans from 2010 to 2014.
After delving into the World Bank website deeper, I examined the loans, credits, and grants of Mali. I discovered that Mali has 18 disbursing loans, 11 repaying loans, and 73 fully repaid loans.
According to Moyo, countries must follow three steps in order to access the bond markets mentioned in the chapter “A Capital Solution.” These steps are:
- Acquiring a rating, preferably from established rating agencies.
- Wooing potential investors and showing investors they can handle the money they are lent.
- Making a strong case about the country’s goal to repay the loan.
As of March 2014, Foreign Direct Investment (FDI) has been flowing more into Sub-Saharan Africa. Five countries who have been quickly emerging (Brazil, China, India, South Africa, and Malaysia) have become sources of FDI for Africa. According to the World Bank, FDI has grown almost six-fold over the most recent ten years. There is a proven positive relationship between FDI and Human Development Index. This means that as long as FDI is flowing to Africa and working the way it is supposed to, HDI will improve as well.
Mali’s most recent troubles have come from rebel forces in the northern part of the country. The Jidhadist group that invaded Mali is a source of many attacks, most recently one against the UN Base in northern Mali.