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Africa 'sees 6% economic growth'

An appetite for oil has driven interest in AfricaAfrican economic growth is set to reach nearly 6% in 2007, the highest in 20 years, according to the African Development Bank (AfDB).

Overseas demand from China and other rapidly-growing nations for natural resources, including oil, has been a cause for growth, the bank said.

The data was issued at the bank's annual meeting, being hosted by China.

The region's economy grew by 5.5% in 2006, with South Africa, Nigeria and Algeria among the strongest nations.

Oil-rich Nigeria saw its GDP grow by 5.3% last year and is set to expand 7% this year.

In contrast, Zimbabwe, which has been beset with soaring inflation and slowing agricultural output, shrank by some 5% during the same period.

Mauritius and Madagascar, meanwhile, have suffered in the wake of Asian textile producers.

Even as growth is set to increase, the bank's chief economist, Louis Kasekende, warned that the projected figures would not be adequate for Africa to hit its goal of halving the number of people living in extreme poverty within eight years.

To attain that goal, economic growth would have to be some 7-8% annually.

Asian growth

The AfDB event - taking place in Shanghai - comes as China has shown increasing interest in investing in Africa.

The Asian nation's appetite for raw materials has boomed as part of its breakneck economic growth.

China's Premier Wen Jiabao is expected to address the event, which is set to run to 17 May and includes 53 African states.

Topics to be discussed include education, telecommunications and infrastructure schemes.

Article taken from BBC News, http://news.bbc.co.uk/2/hi/business/6653939.stm
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Globalization helps in economic growth of individual countries. As we can see from the article, Africa is able to achieve a 6% economic growth is due to overseas demand from China and other rapidly-growing nations for their natural resources. If globalization has never happened, in a way that global connectivity is never achieved, countries will not be able to trade and buy goods from one another and boost each other's economy status.

This view can be supported with another example. In a recent article on the internet, it is proven that globalization has helped Europe's economy. Europe's Commissioner, Joaquín Almunia, outlined his thoughts on globalization as both a challenge and an opportunity for the Europe, stressing his belief that it mostly offers an opportunity for economic growth. A more unified EU, a common currency in the euro, macro-economic discipline, a dynamic single market and open trade were all highlighted as points of note for European growth. Going through these examples and outlining the status of each and the role they play in a larger plan for economic reform, the Commissioner noted different levels of progress in each. He also pointed out that along with this opportunity for growth, comes a great amount of responsibility. Stating that if globalization is to be successful it must be fair, he asserted his view that it is the job of all those involved to make sure that the benefits of globalization are spread to all of the world's citizens.

As proven, benefits of globalization should be used to compliment and help the poorer countries to improve on their economic status. Such countries include Africa.