Inclusive green economy policies and structural transformation in selected African countries

Abstract

African economies have recorded impressive and sustained growth rates. In 2014, growth rates averaged 3.9 per cent – only the East and South Asia region grew faster, at 5.0 per cent. However, this growth can be described as largely non-inclusive because of among other factors its limited contribution to job creation, broad participation and overall improvement to people’s living standards. Furthermore, this growth has not addressed market failures that result in environmental pollution and degradation, and associated climate change challenges. The consequences of such market failures provide a strong rationale for a portfolio of public policies that foster emissions reduction, the development and adoption of environmentally beneficial technology, as well as the provision of environmental goods and services. A green economy refers to an economic system of production, distribution and consumption of goods and services that results in “improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities” (UNEP, 2011). The concept of green economy rose to clear prominence and relevance in 2008/2009 during the search for solutions to the triple crisis- Financial, Fuel and Food, as well as the challenges posed by environmental degradation and climate change.