Why Poverty Has Persisted Throughout Sub-Saharan Africa

Running Head : Poverty in Sub-Saharan Africa

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The sub-Saharan Africa has been recognized internationally for the poverty which has taken a longer duration . This long duration of poverty in the Sub-Saharan , has been existing as a result of various issues among which is the low sources of income . The persistence poverty has led to the people poor health status as well as poor living standards among other basic necessities . Various limitations have enhanced a continuous poverty in the world , and to be more specific

in Sub-Saharan Africa , and causing problems in trials to help the situation . Among these limitations is critical threshold which involves the financial sources and savings of the Sub-Saharan countries , the dysfunctional institutions , and neighborhood effects , among others . All these limitations equally participate in the persistence poverty in Sub-Saharan Africa

Sub-Saharan Africa lies on the bottom when compared to other continent in terms of wealth , and this has been influenced a lot by the Africa 's low national savings . The national savings are determined by the domestic finance , and the effects of domestic finances have direct impact on national savings . Sub-Saharan Africa has low national savings because of their domestic finance is too little to support a good capital for individual workers in the Sub-Saharan Africa . This is because the workforce is high compared to the savings , thus creating a gap between the amount necessary to sustain the workers and the available amount . This has contributed a lot in the persistence of the poverty , because their has been an increase in the sources of labor thus distributing the available low capital to the many workers leads to workers getting very little , and this has led also to the depreciation of capital

Efforts to solve this has been made by reducing the number of skilled workers and increasing their capital in terms of salary , but it has not been able to help , because when few people work , it means many people will have no source of capital , thus relying on the small working population , which increases the ratio of dependants and consuming a lot of the capital gained from the salaries , thus leaving nothing to be saved . This shows that the poverty traps can be over jumped in education if various individuals increases scales in cost of education in relating to skills premiums and household income . Poor economy in Sub-Saharan countries has been influenced a lot by the minimal education attainment

According to statistics , the dependant 's ratio in Sub-Saharan Africa is high around 0 .9 dependants per individual worker , with 88 percent of the dependants being young children with the age of less than fifteen years

The labor force growth has also been limited by the HIV and AIDS epidemic which has being continuously affecting the Sub-Saharan Africa thus lowering the number of the skilled workers in the continent , who are expected to be providing labor for the continent

The low domestic savings has been evidenced by the ratio between Gross national savings...