Subnational administrative capabilities shape sustainable development in Africa

Abstract

Rapid population and economic growth in Africa are raising concerns over the sustainability of its economic development. Current research has assessed the sustainability of African development at the national level but has neglected subnational sustainability disparities driven by evidence of inequalities in investment rates and resource exploitation within various countries. Thus, this study uses the inclusive wealth (IW) accounting framework to assess the sustainability performance of 716 subnational African provinces. This framework consists of valuing the components of IW per capita (IWpc), namely, natural, manufactured, and human capital, between 2012 and 2018. Estimates reveal that provincial IWpc in this period grew by 1% per year on average. This growth is embodied by investment in human and produced capital, which offsets natural capital depletion. Although half of the provinces studied experience synergies between income and wealth growth, there are tradeoffs between these variables, indicating challenges in joining short- and long-term development. These tradeoffs are caused by inabilities to associate income and natural capital growth. Furthermore, although spatial inequalities in wealth levels, variations, and compositions are strongly defined by national boundaries, they are partially defined by the locations of capital cities within countries. Overall, the results show the potential for planning subnational need-based interventions to create sustainable development, the benefits of which extend nationally.