Branko
Milanovic, May 2003
World
Bank, Development Research Group.
Available
online as PDF file [44p.] at:
http://www.worldbank.org/research/inequality/pdf/africa.pdf
".....High
inequality in Africa is something of a paradox: Africa should be a low-inequality
continent according to the Kuznets hypothesis (because African countries are
poor and agriculture-based), and also because land (the main asset) is widely
shared.
Our
hypothesis is that African inequality is politically determined. Yet in the
empirical analysis, despite the introduction of several political variables,
there is still an inequality-increasing "Africa effect" linked to
ethnic fractionalization. The politics however may work through ethnic
fractionalization which provides an easy and secure basis for formation of
political groups. Although this is a plausible explanation, it is not fully
satisfactory and is criticized in the concluding section...."
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