Oxfam, liberalization and the big picture

By Penny Hawthorne | 18 April 2005

The International Monetary Fund has released figures showing that economic growth in sub-Saharan Africa reached an eight-year high and inflation has fallen to a 25-year low. Real GDP per capita increased by 2.7 percent. This is excellent news. Still, there is a long way to go. As the IMF's Africa Director says, 16 out of the world's worst 20 countries for business conditions are in sub-Saharan Africa.

On Friday, the GI's president Alex Singleton debated with Oxfam and the Third World Network at an event run during a London vigil for trade justice. The man from Oxfam claimed that, because of opening up, Ghana had been getting poorer over the last 20 years. Alex explained in response that Ghana had been growing steadily and faster than any other West African country. Then the man from Oxfam said that poverty had been increasing. Alex responded by pointing to a Department for International Development (UK) report which shows that poverty in Ghana has been declining.

Oxfam is a very important institution which does a great deal of good around the world. The man from Oxfam's genuine belief that Ghana was getting poorer shows why it is so important that aggregate figures for African economies get good coverage. Anecdotal evidence is moving and personal, but it needs to be combined with the big picture. Only with the big picture can real lessons be learnt.

Penelope Hawthorne is a researcher at the Globalisation Institute.