3. Investing in people.

Annotation Reviews labor market outcomes in Sub-Saharan Africa and analyzes what is required to spur economic growth through increased efficiency of physical and human capital. "World Development Report 1995: Workers in an Integrating World" examines ways of improving labor outcomes in low- and middle-income economies. This regional perspective focuses on Sub-Saharan Africa in relation to the four areas in need of labor policy reform that were identified in the Report: development strategy, international integration, labor market interventions, and transformation to greater market orientation. The paper reviews labor market outcomes in the region and analyzes what is required to achieve economic growth through increased efficiency of physical and human capital. It examines Africa's role in the world economy and why greater integration is essential to the region. It also discusses labor policies and how workers in the region are affected by the transition to open development strategies. The prospects for the region's growing labor force are briefly reviewed.

Sub-Saharan Africa has only 12 percent of the global population, yet this region accounts for 50 percent of child deaths, more than 60 percent of maternal deaths, 85 percent of malaria cases, and close to 67 percent of people living with HIV. Sub-Saharan Africa, however, has the lowest number of health workers in the world-significantly fewer than in South Asia, which is at a comparable level of economic development. The Labor Market for Health Workers in Africa uses the analytical tools of labor markets to examine the human resource crisis in health from an economic perspective. Africa's labor markets are complex, with resources coming from governments, donors, the private sector, and households. Low numbers of health workers and poor understanding of labor market dynamics are major impediments to improving health service delivery. Yet some countries in the region have developed innovative solutions with new approaches to creating a robust health workforce that can respond to the continent's health challenges. As Africa grows economically, the invaluable lessons in this book can help build tomorrow's African health systems.

"The series is sponsored by the Agence Francaise de Developpement and the World Bank."

A study prepared by the United Nations University World Institute for Development Economics Research (UNU-WIDER)

"This book reviews the literature and presents original research by the authors analyzing job creation in Sub-Saharan Africa in light of economic performance over the decade and more since 1995. The book identifies factors that impact job creation, both inside the labor market (such as labor supply and demand) and outside of it (overall investment climate)."--Jacket.

The paper investigates empirically the determinants of economic growth for a large sample of sub-Saharan African countries during 1981-92. The results indicate that (i) an increase in private investment has a relatively large positive impact on per capita growth; (ii) growth is stimulated by public policies that lower the budget deficit in relation to GDP (without reducing government investment), reduce the rate of inflation, maintain external competitiveness, promote structural reforms, encourage human capital development, and slow population growth; and (iii) convergence of per capita income occurs after controlling for human capital development and public policies.