Metals or Management? Explaining Africa's Recent Economic Growth Spurt

Document Type

Article

Publication Date

2009

Abstract

This article seeks to explain Africa's current "period of unparalleled economic success," following decades of economic stagnation. Using newly available data, we investigate whether international commodity price increases (our "metals" hypothesis) or policy reforms (our "management" hypothesis) have driven Africa's recent reversal of economic fortune. Using cross-country growth analysis, we find that both "metals" and "management" have played a role. Because commodity booms are typically followed by commodity busts, better economic management may be critical for sustaining Africa's economic gains, particularly in the face of the present global economic crisis. We thus invite a reexamination of our "management" and "metals" hypotheses after a few years, when new data are available and the crisis has evolved.

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