The Impact of Infrastructure on Reducing Poverty in the Central African Economic and Monetary Community
This article assesses the effects of infrastructure on poverty reduction in the CEMAC. From a sample of five countries in the CEMAC zone, the robustness of the results is tested by using the Double Least Squares Method (2SLS), taking into consideration cultural specificities. The study period extends from 1981 to 2019. Results show that improved access of the population to economic and social infrastructure leads to poverty reduction. From the point of view of economic policy, these results give guidance for the implementation and use of infrastructure in the countries of the Economic and Monetary Community of Central Africa (CEMAC) as an instrument to improve the level standards and the income of the population and thus reduce poverty.
Poverty has declined significantly in Africa over the past two decades. Indeed, the proportion of people living below the poverty line in Africa fell from 56% in 1990 to 33% in 2019 (UNCTAD, 2021). Despite this decline over a long period, there was an increase in the poverty rate in 2020 and 2021. It rose from 33% in 2019 to 34.1% in 2021. The increase was due mainly to the Covid-19 pandemic and to demographic growth (AFD, 2021). Fragile countries and rural areas have seen a slower reduction in poverty levels. Several recent factors have contributed to the slowdown in poverty reduction in Africa, especially in the CEMAC (Central African Economic and Monetary Community) zone in recent years – for example, the rise in world prices of foodstuffs since the Russian invasion of Ukraine and the Covid-19 lockdown. Given how dependent many…