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OUTLINES OF GLOBAL TRANSFORMATIONS  SPECIAL ISSUE • 2019

DOI: 10.23932/2542-0240-2018-11-5-6-21

Africa in the Modern Model


of the World Order: A Powerful Player
or an Outsider? 1

Irina O. ABRAMOVA
Corresponding Member, RAS; Professor, Director, Institute for African Studies of the
Russian Academy of Sciences; Address: 30/1, Spiridonovka St., Moscow, 123001, Russian
Federation.
E-mail: irina.abramova@inafr.ru

ABSTRACT. The article analyses the velopment. According to forecasts, includ-


transformation of Africa’s position in the ing those made by the Institute for Afri-
emerging new model of world econom- can Studies of the Russian Academy of Sci-
ic development. The author emphasizes ences, from the 2030s, Africa is expected to
that until recently, Africa was assigned the turn into the most important and almost
role of an “outsider” of the world economy. unique global strategic reserve of raw ma-
The transition of developed countries to a terials in the “Coming (New) Industrial
postindustrial and innovative development Revolution” – NPR, Next (in other docu-
model has further exacerbated the lagging ments New) Industrial Revolution. The Af-
behind of the region’s countries in the fore- rican continent today occupies leading po-
most areas of the economy. Other nega- sitions in the world precisely due to those
tive factors that affected the development commodities that have no equivalents and
of African economies in the second decade are vital for the development of defense and
of the 21st century include the high depen- innovative technologies of the 21st century.
dence of the African economy on com- Other important factors in the accelerated
modity exports, the slowdown of China’s development of Africa are the quantitative
growth, the socio-economic consequences and qualitative growth of the continent’s
of the so-called “Arab Spring” and, primar- labor potential, the expansion of consump-
ily, the destruction of Libya, the continua- tion in the African domestic markets, the
tion of old and the emergence of new con- economic diversification in a number of
flicts in a number of African states. Despite the continent’s countries by means of in-
numerous and often successful attempts creasing the share of services and industry
by external forces to make sure that Afri- in the GDP, and a significant improvement
ca remains an object of the world economy in the business climate as a result of bet-
and politics, the continent is increasing- ter investment legislation and gradual sta-
ly becoming an active “subject” in interna- bilization of domestic politics. Apart from
tional relations, and its development in the the increase in financial proceeds arriving
coming decades may, in our view, change in various forms, regional integration (in-
its position in the new model of world de- cluding a continental free trade zone) will

1 The article was written with the support of the Russian Foundation for Basic Research. Project No. 16-07-00010 “The ‘African Vector’
of the Fundamental Transformation of Russia’s Economic Structure in New Geopolitical Conditions.”

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ABRAMOVA I.O. AFRICA IN THE MODERN MODEL OF THE WORLD ORDER: A POWERFUL PLAYER OR AN OUTSIDER?  PP. 4–15

be a key to accelerating economic growth in able corporations Goldman Sachs and


the African continent, which will allow for Pricewaterhouse­Coopers, whose experts
joint and more efficient use of the poten- had believed that those countries will join
tial of individual African states. Modern the planet’s top ten leading economies
Africa is a dynamically growing market of no earlier than mid-21st century. In other
labor force, consumer goods, investments, words, all of the processes unravelling in
modern technologies, and science-inten- the world today, on the one hand, are ac-
sive machinery. The author anticipates re- celerating, and, on the other, are becom-
alization of the scenario of gradual evolu- ing less predictable. Given these factors
tion of a unified pan-African pole of global and despite their volatility, researchers
significance in the foreseeable future. and experts forecast an enhanced growth
of the economic potentials of such coun-
KEY WORDS: Africa, world economic de- tries as South Korea, Brazil, Mexico, In-
velopment model, demographic dividend, donesia, Malaysia, Turkey, and Iran.
strategic resources, conflicts, regional inte- Africa, however, has until recently had
gration to content itself with the role of an outsider
in the global economy. The region’s coun-
The onset of the 21st century has co- tries’ underperformance as compared to
incided with a new stage in the develop- leading economies was further aggravat-
ment of the world civilization, namely, ed by the developed countries’ transition
its gradual transition towards a polycen- to postindustrial and innovative develop-
tric model. Bit by bit, new actors in the ment models. The sophisticated “structural
global arena are changing the rules and adaptation programs” imposed on the Af-
terms of the game. The balance of glob- rican countries by the Bretton-Wood In-
al powers is shifting from West to East stitutions, only worsened the poor state of
and from North to South. Internation- the African population. The West’s much
al relations, too, are evolving under the publicized obligations to promote its de-
impact of the so-called “grand challeng- velopment were not fulfilled, allegedly due
es”. China and India are growing in their to lack of funds. Rich African resources
economic potency: even today, by their were mercilessly exploited by former co-
GDPs (the equivalent of USD 12.263 and lonial powers and other Western states.
2.488 trillion in 2017, respectively) they On top of that, a high level of corruption
occupy the second and seventh places persists in African countries themselves.
in the world, having left behind not on- The distinguished African Union Com-
ly Russia, but such states as Italy, Cana- mission, chaired by the former South Af-
da, Spain, and Australia.2 Moreover, in rica President T. Mbeki found that the il-
2017, China (USD 23.301 trillion) and legal outflow of capital from Africa for the
India (USD 9.449 trillion) have advanced last 50 years amounted to over USD 1 tril-
to the first and third places by purchas- lion and exceeds USD 50 billion annual-
ing power parity, respectively (the second ly. All that resulted in the continent’s share
place is held by the US),3 entirely over- in the global GDP failing, so far, to cross
turning all projections of the respect- the threshold of 3% (or 5% by purchasing

2 Countries by GDP in 2017 (2017) // Investorschool.ru // http://investorschool.ru/rejting-stran-po-vvp-2017, last accessed on Oc-


tober 12, 2018.
3 GDP, PPP (n/y) // Worldbank.org // https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD, last accessed on October 12, 2018.

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OUTLINES OF GLOBAL TRANSFORMATIONS  SPECIAL ISSUE • 2019

power parity), and, 2.5% in terms of global to 0.8%; 1.1% in South Africa; 3% in North
exports of goods and services.4 Africa; and 5.3% in East Africa.6
But the situation is rapidly changing. Other negative factors that influenced
At present, Africa is developing quite suc- the development of African economies in
cessfully. In the last decade, despite crisis- the second decade of the 21st century in-
related phenomena, average growth rate in clude the slower growth of China, the so-
the continent reached 4–5%, which is sig- cial and economic implications of the so-
nificantly higher than the average for the called “Arab Spring” and, first and fore-
world as a whole [Fituni 2010, pp. 8–14]. most, the destruction of Libya, as well as
In the 2010s, this growth has slightly the continuation of pre-existing and the
slowed. According to the African Devel- emergence of new conflicts in some of the
opment Bank, most of the decrease in the African states.
economic growth rates was in 2016, when Even a minor reduction in the growth
they equaled 2.2%.5 Such a deterioration rate of the Chinese economy from 6.9%
was due to various factors, the key one be- in 2015 to 6.5% in 2017 adversely affect-
ing the decrease of prices for raw com- ed the rate of Africa’s development. Afri-
modities and fuel that continue to domi- can economies are heavily dependent on
nate the exports of a considerable number China, since China is the key trade part-
of African states. ner and principal investor in the majori-
According to OECD statistics for 2016, ty of the continent’s countries today. It suf-
prices for metals and other “non-fuel” raw fices to recall that 30% of African exports
commodities dropped on the average by are to China and that 83% of such exports
6%, which materially affected the econo- are raw commodities. The deceleration of
mies of the majority of African countries Chinese economy’s growth means not only
that predominantly export metals and oth- dwindling trade, but also a reduction in in-
er types of raw commodities. But the great- vestment projects in African states, which
est drop occurred in the oil sector: oil pric- ultimately has a negative impact on their
es plummeted from USD 115 per barrel development.
in June 2014 to USD 29 in January 2016. The so-called revolution in Libya has
This almost fourfold decrease of oil prices had a great adverse impact on Africa’s de-
struck the oil exporting countries first, in- velopment as a whole. That was due not
cluding Nigeria, the largest economy of the only to the drastic destruction of the Lib-
continent. The latter accounts for around yan economy itself, which had an impres-
30% of the African GDP. Since in 2016 Ni- sive scale by African standards, but a to-
geria’s GDP dropped by 1.5%, it adverse- tal stoppage of investment projects, which
ly affected both the growth rates for the Muammar Gaddafi who has been recent-
sub-region of West Africa that dropped to ly posing as the “pan-African leader”, had
0.4% in 2016, and the overall African ra- been implementing or was planning to im-
tios. In other parts of Africa, the situation plement in African states. One should also
was somewhat on a brighter side: the 2016 recall that the Libyan Jamahiriya employed
GDP growth in Central Africa amounted over 1.5 million African migrants who reg-

4 African Economic Outlook 2018 (2018) // African Development Bank Group // https://www.afdb.org/fileadmin/uploads/afdb/
Documents/Publications/African_Economic_Outlook_2018_-_EN.pdf, last accessed on October 12, 2018.
5 African Economic Outlook 2017 (2017) // OECD-ilibrary.org // https://read.oecd-ilibrary.org/development/african-economic-
outlook-2017_aeo-2017-en#page38, last accessed on October 12, 2018.
6 African Economic Outlook 2017 (2017) // OECD-ilibrary.org // https://read.oecd-ilibrary.org/development/african-economic-
outlook-2017_aeo-2017-en#page24, last accessed on October 12, 2018.

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ABRAMOVA I.O. AFRICA IN THE MODERN MODEL OF THE WORLD ORDER: A POWERFUL PLAYER OR AN OUTSIDER?  PP. 4–15

ularly sent money back to their countries. On the cusp of 20th and 21st centuries,
After M. Gaddafi’s assassination, some of the growth of the Western states slowed
these people returned home, while oth- down, resulting in a certain reduction of
ers relocated to Europe; in any event, ma- their scale of consumption. Numerous
ny of them lost their jobs, their incomes surveys conducted in Germany, France,
dropped, which negatively affected the and the UK revealed that these countries’
economic growth in the African continent. nationals have for the first time in post-
This is why not only the Western and, pri- WWII history noted that today they are
marily, European, states that suffered from worse off than five years ago. And that is
a growing inflow of African migrants and due not only to the migrant crisis, but al-
illegal drug and arms trafficking, a great- so the exhaustion of internal factors that
er threat of terrorist attacks and other con- spurred the development of Western states
sequences of Libya’s downfall, seek to end within the existing growth model. To find
the Libyan crisis as soon as possible, but al- a solution to this situation, these countries
so African countries themselves. (primarily the US that is losing its role as
Unstable environment in other African the world hegemon) are expanding their
states, too, impedes their progressive de- defense industry and starting local and re-
velopment. Although the total number of gional conflicts under the guise of promo-
conflicts in the continent has dropped in tion of the so-called ideals of democra-
the recent years, it remains high. In 2016 to cy and combatting terrorism. Creation of
2017, armed conflicts continued in coun- a number of military headquarters in the
tries such as the DRC, the CAR, Burundi, African territory allegedly for resolving
Libya, Mali, Nigeria, Somalia, South Su- conflicts, accommodating a large military
dan, Cameroon, and Ethiopia. contingent there, development of military
Both internal and external factors lie at infrastructure, including retention of old
the heart of African conflicts. The unusu- and creation of new military bases, supply
ally varied ethnic and religious structure of arms to pro-Western African regimes
of the African population, the artificial and other such actions not only serve the
boundaries of states of the “Dark Conti- aim of expansion and successful (includ-
nent” drawn by colonial powers, the pow- ing economically) functioning of the de-
er race, social and economic underdevel- fense industries of the US and EU states,
opment, poverty, hunger, unemployment, but also secure control over African re-
especially among the young, by far do sources of strategic importance.
not exhaust the list of “domestic African” Despite numerous and often success-
causes of war and conflict. This should in- ful attempts at making sure that Africa re-
clude corruption, low quality training and mains an object of the world economy and
functioning of customs and tax authorities politics, the continent is increasingly act-
and the flourishing shadow economy that ing as a subject in international relations,
facilitate the flight of capital from African and its development in the decades to
countries and prevent foreign investments come can, we believe, change its position
[Fituni 2000]. in the new model of global development.
External actors interested in using rich Thus, already in 2017, the growth of
African resources and markets are clearly economy on the continent is preliminari-
using the existing contradictions for their ly estimated at 3.6% and is expected to in-
own benefit and are actively meddling in crease to 4.3% in 2018. Analysts project
the internal affairs of African states, add- that GDP growth rates on the average for
ing fuel to the flames of hostilities and col- Africa South of Sahara can once again ex-
or revolutions. ceed 5% in the next few decades (starting

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OUTLINES OF GLOBAL TRANSFORMATIONS  SPECIAL ISSUE • 2019

from the 2020s). Even now they exceed 7% particular, military aviation engines, goes
annually in five countries. These are Burki- as far as 60%, and exceeds 70% for cobalt.
na Faso (8.4% in 2017), Ethiopia (8.1%), Other crucial factors for Africa’s ac-
Côte d’Ivoire (7.3%), Tanzania (7.2%), celerated development are the expansion
and Ghana (7.1%). Against the breakdown of the scale of consumption in internal
of the old and the ripening of a new eco- markets of the African countries, diversi-
nomic model for the world, some analysts fication of economies of a number of the
suggest that by the year 2050 the African continent’s states by way of increasing the
economy may grow from 2.2 trillion (ac- share of services and industrial produc-
cording to 2017 data) to USD 29 trillion tion, substantial betterment of the busi-
and thus exceed the GDPs of the US and ness climate as a result of improvement of
the EU [Abramova 2017, р. 7]. the investment legislation and gradual sta-
The opportunities for the econom- bilization of the domestic political state of
ic growth of the African continent are ex- affairs. We will begin with the latter fac-
panding owing to the increase of prices for tor. For the last 7 years, that is, from 2011
raw commodities that started in late 2016, through 2017, African countries have sig-
but that factor is not decisive for Africa’s nificantly raised their index of competi-
development. tiveness. Some countries, such as Rwan-
Beginning from the 2030s, Africa, ac- da and Mauritius, where the relevant in-
cording to current projections, includ- dex reached 4.49, as well as Botswana
ing those offered by the Institute for Af- (4.29), Kenia (3.9), Ethiopia (3.77), Sene-
rican Studies of the Russian Academy of gal (3.74), Côte d’Ivoire (3.7) and Ghana
Sciences, will turn into a single important (3.69), surpassed the buoyant economies
and almost unique global strategic reserve of the South East Asia, including Indo-
of raw materials in the imminent NPR, or nesia, Cambodia, and Myanmar, where it
Next (or New, in some documents) Indus- does not go beyond 3.6.7
trial Revolution. The African continent oc- In the Doing Business index, three
cupies leading positions in the world to- African countries, namely, Mauritius
day precisely in terms of raw commod- (25th  place), Rwanda (41st) and Morocco
ities that have no equivalents and are vi- (69th) have outperformed such countries
tal for the development of defense-relat- as Indonesia (72nd), China (78th), and In-
ed and innovative 21st century technol- dia (100th). The top hundred also includes
ogies. Put another way, a whole number Kenia (80th), Botswana (81st), South Afri-
of metals imported by the NATO coun- ca (82nd), Zambia (85th), Tunisia (88th) and
tries (cobalt, lithium, coltan, etc.) has ac- the Seychelles (95th).8
quired military and strategic importance. In other words, by its investment ap-
Thus, for instance, the extent to which the peal, Africa is not in any way inferior to
US military and defense industry depends Asian leaders of development, and even
on imports from some Sub-Saharan Afri- surpasses them in some cases.
ca states (the DRC, South Africa, Zimba- Improvement of investment climate in
bwe, etc.) of non-ferrous and rare metals the African continent facilitates increase of
required to manufacture modern arms, in the volume of investments from abroad. In

7 Global Competitiveness Index (n/y) // World Economic Forum // http://reports.weforum.org/global-competitiveness-in-


dex-2017-2018/competitiveness-rankings/, last accessed on October 12, 2018.
8 Doing Business 2018. Reforming to Create Jobs (2018) // Doingbusiness.org // http://www.doingbusiness.org/~/media/WBG/
DoingBusiness/Documents/Annual-Reports/English/DB2018-Full-Report.pdf, last accessed on October 12, 2018.

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2017, the inflow of foreign investments to average, private consumption in Africa


Africa was USD 57.5 billion, that is USD demonstrated a 3.6% annual growth from
1.5 billion more than the ODA received 2010 through 2016. In the immediate fu-
by African states (USD 56 billion in 2017). ture this figure is highly likely to rise to
Here, most of the foreign capital was not 4%.10 Such consumption growth is largely
invested into mining, but into such indus- due to the quickly increasing African pop-
tries as production of consumer goods, in- ulation and the accelerated emergence of
frastructure, services, including finance, as the middle class, which even today num-
well as the information and telecommu- bers 350 million people or one third of Af-
nications sectors [Novikova 2017, pp. 56– rica’s populace. According to our calcula-
63]. It is noteworthy that a considerable tions, the continent’s domestic consump-
portion of investments came from devel- tion in 2017 exceeded USD 920 billion (in
oping countries, including from the Far 2008, it equaled 680 billion) and may grow
and Middle Eastern regions. to USD 2.2 trillion by 2030. This growth
Implementation of infrastructure proj- is expected to occur mostly due to the in-
ects may become most promising in the crease of purchasing power of the mid-
forthcoming years. Such projects can dle class whose number will have (at least)
amount to as much as USD 50 billion an- doubled by then.11
nually. Despite substantial recent growth, Money transfers by migrants are an im-
Africa’s infrastructure remains underde- portant source of development for many
veloped, especially as compared to other African countries. They serve as one of the
regions of the world. More than a half of most important sources of foreign currency
African population (645 million) has lim- received by a great number of African states.
ited access to electricity, and a mere one African migrants’ money transfers from
third of village inhabitants live in 2 km to abroad in 2017 amounted to USD 66.2 bil-
the closest road (this figure exceeds two lion, which was 2.4% more than in 2016.12
thirds in other developing countries). An- According to our calculations, the 10% per
nual growth of public investments into capita growth of transfers in African states
infrastructure alone equals 3% and may decreases the share of the poor in a country
speed up further in the years to come.9 by the average of 3.5%. World Bank experts
The growth of public consumption, in- have assessed that transfers by relatives have
cluding through the implementation of reduced the share of the poorest population
major investment projects, is a powerful in African countries that are the principal
force that drives the economic growth of receivers of such transfers (Egypt, Morocco,
African states. But the main trigger of de- Tunisia, Lesotho, Eritrea, Ghana, Uganda)
velopment of the African economy in the by the average of 5–6%, triggering growth
2000s was the rise in private consumption. in consumer demand. Owing to their mul-
According to our calculations, in the pe- tiplying effect, transfers from abroad supply
riod in question, its contribution to eco- new stimuli for the development of African
nomic growth was 40% to 60%. On the economy.

9 African Economic Outlook 2017 (2017) // OECD-ilibrary.org // https://read.oecd-ilibrary.org/development/african-economic-


outlook-2017_aeo-2017-en#page30, last accessed on October 12, 2018..
10 Calculated using World Bank (2017). World Development Indicators 2017. Washington, DC. © World Bank. 
11 Calculated using above sources and African Economic Outlook 2017 (2017) // OECD-ilibrary.org // https://read.oecd-ilibrary.org/
development/african-economic-outlook-2017_aeo-2017-en#page29, last accessed on October 12, 2018.
12 African Economic Outlook 2017 (2017) // OECD-ilibrary.org // https://read.oecd-ilibrary.org/development/african-economic-
outlook-2017_aeo-2017-en#page18, last accessed on October 12, 2018.

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OUTLINES OF GLOBAL TRANSFORMATIONS  SPECIAL ISSUE • 2019

To use them efficiently for develop- African Union views as a sort of build-
ment, it is necessary, first and foremost, ing blocks for the future common Afri-
to integrate transfer-receiving households can market are the ECOWAS (Econom-
into the formal financial sector. Even now ic Community of West African States),
some African countries are successful- COMESA (Common Market for Eastern
ly doing just that. At the same time, al- and Southern Africa), SADC (Southern
though a considerable portion of funds re- African Development Community), the
ceived from abroad is used by Africans for EAC (East African Community), ECCAS
consumer needs, the so-called savings, or (Economic Community of Central African
investment portion of transfers is grow- States), CEN-SAD (Community of Sahel-
ing and, in some cases, amounts to 40% Saharan States), IGAD (Inter-Governmen-
[Abramova 2013, pp. 278–279]. tal Authority on Development of East Af-
Apart from financial receipts, irrespec- rica), and AMU (Arab Maghreb Union).
tive of form, regional integration that will The summit also adopted “Agenda
allow for the collective and more efficient 2063” – a strategic plan for the develop-
use of the potential of individual African ment of the African continent in the next
states will have paramount importance for 50 years. The Agenda provides the follow-
the facilitation of economic growth in the ing timeline for forming the continental
African continent. integration institutes:
A pivotal point for the development of – creation of the African Customs
integration processes in the African con- Union – 2019;
tinent was reached during the summit – establishment of the common Afri-
of the African Union in Addis Abebe in can market – 2025;
2013 that resulted in the adoption of the – institutionalization of a currency
50th Anniversary Solemn Declaration of union – 2030;
the Organization of African Unity (OAU), – inception of uniform institutes for
transformed into the African Union (AU) the legislative, executive and judicia-
on July 9, 2002. The principal objectives ry, and uniform nationality (citizen-
stated in the Declaration are the unifica- ship) – 2063.
tion and development of regional econom-
ic communities as the “building blocks” of A vital step towards implementing
the AU and “speed[ing] up the process of “Agenda 2063” was made on March 19–21,
attaining the objectives of the African Eco- 2018 at the Extraordinary Summit of the
nomic Community”, including the cre- African Union, where a decision was made
ation of the “Continental Free Trade Ar- to create the African Continental Free
ea.” It promised to make Africa “conflict- Trade Area (AfCFTA). It is the largest inter-
free” by 2020 and “rid the continent of state trade agreement in the world since the
wars” [Korendyasov, Urnov, Shubin 2013, creation of WTO in 1995. The agreement
pp. 8–9]. The regional associations created envisages lowering customs duties by 90%
in the territory of Africa, despite all com- for signatory states in the next five years.
plications, are gradually putting to prac- The Summit’s decision was signed by 44 Af-
tice reforms that have to some extent al- rican states, subsequently joined by 5 more
ready secured a visible level of legal unity, countries: South Africa, Sierra-Leone, Le-
freedom of movement of persons, goods, sotho, Burundi and Namibia. Nigeria, the
capital, services, uniform regulation of largest African economy, has until recent-
economic activities and labor relations in ly abstained from signing the agreement,
each integration group. The main integra- which we believe was hampering the prac-
tion associations in the continent that the tical implementation of this rather ambi-

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ABRAMOVA I.O. AFRICA IN THE MODERN MODEL OF THE WORLD ORDER: A POWERFUL PLAYER OR AN OUTSIDER?  PP. 4–15

tious project. Nigeria’s concern was that the must elaborate on another important fac-
greatest benefits of the agreement would be tor that will shortly have a massive impact
reaped by other countries, primarily South not only on the development of the Afri-
Africa, rather than Nigeria itself. But on Ju- can continent and its transformation from
ly 11, 2018, after a meeting with the South an object into a subject of international re-
African president Cyril Ramaphosa, who lations, but also on the development and
replaced Jacob Zuma, Nigeria’s head of restructuring of the entire world economy.
state, Mohammed Bukhari, eventually re- The African continent is one of the key
solved to adhere to the agreement that will factors of global demographic processes.
help translate into reality the African dream At one time, it was the population of
of seeing domestic African trade soar.13 Al- Africa that made a valuable contribution
though from among 49 signatories only 6 to the development of global economy.
ratified the document, its adoption by the From the 16th through the 19th century, Af-
vast majority of African states, in and of it- rica played the role of the main supplier of
self, is an important step towards real eco- slaves, primarily to the American conti-
nomic integration. nent. African slave labor was the founda-
Thus, in developing integration pro- tion, on which capital initially accumulat-
cesses, using its competitive strengths in ed in the US economy. Various accounts
the resource sphere, actively balancing from that period suggest that 12 to 17 mil-
between old and new partners, attracting lion Africans were sold to the New World
capital and technologies, activating the hu- countries. This delivered a colossal demo-
man capital, today’s Africa is steadily turn- graphic blow on the African continent,
ing into an authoritative actor in glob- abandoned by its most active and healthy
al politics and economy, and the much- people of childbearing age. The African ge-
needed link in countering grand chal- netic pool was largely destroyed, throwing
lenges. Contemporary African economy the continent centuries back. For the US,
is making effective steps to diversification however, the arrival of African slaves pro-
and balance across a whole range of areas – vided an initial impulse that would have
geographic, industrial, consumer and pro- never been secured solely through white
duction-related, property types to produc- colonist labor.
tion factors ratio and their contribution to Today, in the age of globalization, when
the GDP. workforce is relatively freely moving from
Two new trends are emerging in the country to country, Africa is once again
economic development of African states: attaining an important role in the global
namely, the role of the real sector of the development, gradually turning into the
economy is rising and the development main supplier of labor resources, due to
of industries oriented at domestic, rather its great number of young and employable
than foreign, consumers, is accelerating. population that is growing at ever-acceler-
Experts with the Institute for African ating speeds.
Studies of the Russian Academy of Sci- Today, the principal demographic gi-
ences believe that a likely scenario is that ants are China with its 1.4 billion popu-
of the evolvement of a unified pan-Afri- lation, and India, whose population has
can pole of global significance. Here, we exceeded 1.3 billion. In total, these two

13 Morocco-Nigeria to Finally Sign the African Free Trade Agreement (2018) // Menafn.com, July 14, 2018 // https://menafn.com/
qn_news_story_s.aspx?storyid=1097163675&title=Morocco--Nigeria-to-Finally-Sign-the-African-Free-Trade-Agreement&src=RSS,
last accessed on October 12, 2018.

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OUTLINES OF GLOBAL TRANSFORMATIONS  SPECIAL ISSUE • 2019

countries today are home to about 40% oping countries is the demographic fac-
of the population of the globe. By virtue tor (or, in modern terminology, the de-
of its sustained efforts and successful one- mographic dividend), namely, the rapid
child policy of limiting the birthrate, Chi- increase of primarily employable popula-
na curbed the population growth to 0.3%. tion of the countries of the East and South,
In India, this indicator is still rather high and the aging of the population of the
and exceeds 1.5%. According to UN fore- West. Notably, economic peaks in the first
casts, by 2024, that country will rank first two decades of the 21st century were hit by
by population, beating China. In the next countries with young and quickly grow-
decade, the world’s population will grow ing population – not only the abovemen-
in absolute terms mostly owing to these tioned China and India, but also Indone-
two countries. But starting from around sia, Brazil, Mexico, the Philippines, Viet-
2030, the center of global demographic nam and others. In Africa in the 2000s, a
growth will shift to Africa, where popula- true leap was made by Nigeria (198 mil-
tion grows at the highest in the world an- lion) and Egypt (98 million) – two of the
nual rate of 2.5%.14 The UN estimates that most densely populated Sub-Saharan and
from 2017 through 2050, our planet’s pop- North African countries. Nigeria turned
ulation will increase by 2.2 billion people. into Africa’s largest economy South of Sa-
Africa’s contribution to this growth will be hara by GDP, both by the exchange rate
1.3 billion, or 60%. Nigeria will remain the (USD 375.8 billion in 2017), and by PPP
indisputable demographic leader in the (USD 1,119 billion in 2017), having out-
African continent, that even now occupies done its tradition rival, South Africa, and
the seventh place in the ranking of states taken the 21st and 22nd places, respectively,
by population, and will rise to become the in the global ranking of states by GDP. As
third by 2050.15 to Egypt, it took the first place in Africa by
The traditionally accelerated growth PPP (USD 1,129 billion) and third by the
of population of the developing countries, exchange rate (USD 235 billion), letting
referred to in academic literature as the South Africa (USD 349 billion) forward.16
“democratic explosion”, has been seen as a Interestingly, the second most populated
threat to the development of the countries African state, Ethiopia (105 million inhab-
of Asia, Africa and Latin America, since it itants in 2017) has been showing economy
was associated with an increase in un- or growth rates of 8% in the recent years.
underemployment, poverty and famine. This transformation of a “demograph-
Today, in the conditions of globalization ic curse” into a “demographic dividend” is
and formation of an international labor due to a complex of causes.
market, where the workforce’s flow from The foremost one has already been
region to region is considerably expedit- mentioned above. It concerns the re-for-
ed due not only to social and economic, matting of the structure of the global la-
technological, information and commu- bor resource market, a fair share of such
nications, and political factors; one of the resources being today secured by devel-
drives of accelerated growth of the devel- oping countries, including Africa. Even

14 African Economic Outlook 2016 (2016) // African Development Bank Group // https://www.afdb.org/fileadmin/uploads/afdb/
Documents/Publications/AEO_2016_Report_Full_English.pdf, last accessed on October 12, 2018.
15 World Population Prospects: The 2017 Revision (2017) // United Nations. Department of Economic and Social Affairs //
https://www.un.org/development/desa/publications/world-population-prospects-the-2017-revision.html, last accessed on Octo-
ber 12, 2018.
16 GDP, PPP (n/y) // Worldbank.org // https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD, last accessed on October 12, 2018

12
ABRAMOVA I.O. AFRICA IN THE MODERN MODEL OF THE WORLD ORDER: A POWERFUL PLAYER OR AN OUTSIDER?  PP. 4–15

now, 80% of the planet’s labor force is con- Moreover, many Asian countries, tra-
centrated in the countries of Asia, Africa, ditionally thought of as young, are in fact
and Latin America; it is they that ensure no longer new (Taiwan, Singapore, South
more than 90% of the global labor mar- Korea) or will “age” in the foreseeable fu-
ket’s growth. Certainly, modern produc- ture (China). From among large global re-
tion technologies, and, in particular, the gions, only Africa South of Sahara finds
use of robots, are reducing the need for itself at the second stage of demograph-
manpower. Nevertheless, as evidenced by ic transition [Fituni 2017, pp. 3–15]. The
the practice of the developed countries, continuing high birthrate and low death
a deficit of employable people remains, rate, given the relatively low average life
in the first place, in the sphere of servic- expectancy (55 years) and diminishing in-
es. New types of needs arise that demand fant mortality, lead to the preponderance
new types of labor. Besides, labor-inten- of young people in the population struc-
sive segments in the production spheres ture. According to 2018 data, the average
are not going anywhere in the foreseeable age for Sub-Saharan African residents is
future. An especially acute deficit of man- 20 years. This means that in the near fu-
power will be suffered by Europe, whose ture, the international labor market will
population is increasingly ageing. In view be largely shaped by African, rather than
of this circumstance, European authorities Asian states.17
are forced to implement pension reforms The second important consequence
and simplify access for migrant workers of the impact caused by the “demograph-
from Asian and African countries, under- ic dividend” is the growth and changing
standing very well that the normal func- structure of global consumption. The in-
tioning of their economies and the preser- crease in the number of population of a
vation of the customary level of well-being country physically raises the volumes of
and consumption are possible only subject consumption, thereby expanding the do-
to a mass inflow of young workers. There mestic market in countries with rapidly
are two key ways of solving this problem: growing population. In such cases, a large
either to import workforce from abroad share of young people also changes the
(a path fraught with aggravation of social very structure of consumption, ensuring
tensions and erosion of the traditional Eu- demand for new goods. It is no secret that
ropean identity), or to relocate own enter- two thirds of Africans possess cellphones,
prises to regions with high labor potential, including the newest models, although ma-
including to Africa. In either case, the Af- ny of them starve. In many African coun-
rican component in the formation of the tries (Kenya, Nigeria, South Africa, etc.)
planet’s workforce will grow, thereby in- the sectors of mobile and Internet banking
creasing the continent’s role in the global services are growing with an unprecedent-
economic environment. ed speed. It is the young who act as both
Nor should one forget that in Africa it- the principal consumers and creators of
self, a demand for manpower grows in view modern commodities, while older gener-
of the high rates of the economy’s growth ations (that will keep rising in numbers in
and a lower (as compared to developed the developed countries) do not show any
states) level of technological development. heightened demand for novelties and pre-

17 United Nations, Department of Economic and Social Affairs, Population Division (2017) // World Population Prospects: The 2017
Revision, Volume II: Demographic Profiles (ST/ESA/SER.A/400) // https://esa.un.org/Unpd/wpp/Publications/Files/WPP2017_Vol-
ume-II-Demographic-Profiles.pdf, last accessed on October 12, 2018.

13
OUTLINES OF GLOBAL TRANSFORMATIONS  SPECIAL ISSUE • 2019

fer the conservative models they are used 60 years constitute just 5% of the popula-
to. Of course, it is difficult to assume that tion, allowing to save budget costs and use
in the next ten or twenty years Africans them for development.
will overtake leading positions in research Modern day Africa is a dynamically
and development. But even now the high- growing market for production and ser-
est competition in African universities is at vices, modern technologies, science-in-
the IT faculties. The market for traditional tensive products, workforce and consum-
consumer goods, too, is expanding. Mon- er goods. Despite the outdated perceptions
ey transfers by Africans from abroad al- of those still enthralled by the stereotypes
low the migrants’ families to buy comput- of the 1970s and 1980s, Africa has already
ers, television sets and even automobiles. entered the stage of industrial rise and ac-
In 20–30 years, most of the cars, house- celerated modernization of its produc-
hold appliances, electronics and other du- tion potential. The continent’s econom-
rable goods will be sold in Africa, instead ic growth is speeding up, including due to
of Asia. The quantitative and qualitative the quickly proliferating middle class with
growth of the consumer market will serve its increased demand for consumer and
as a powerful drive for the development of new innovative goods, as well as modern
African, and, in the future, global econo- services.
my. That is what happened in China in the Changes in the position the African
late 1990s. According to UN data, by mid- continent holds in the global frame are
21st century, African population pursuant drawing the attention of major interna-
to the Medium Variant will be 2.5 billion tional players, both traditional (the US,
people, accounting for 26% of the popula- UK, France, Germany), and new (China,
tion of the globe. And by 2100, there will Japan, India, Brazil, Turkey, Iran, Indone-
be as many as 4,468 million Africans, mak- sia, Australia and even New Zealand). The
ing 40% of all people living on the Earth. fight for political and economic domina-
Interestingly, from 2050 to 2100, not on- tion in the African continent is gaining
ly the European (from 716 million in 2050 momentum. This refers not only to ensur-
to 653 million in 2100), but also Asian (ac- ing security and the “struggle for strategic
cording to the estimates, from 5,257 mil- resources and markets”. All these countries
lion in 2050 to 4,780 million in 2100) pop- are well aware that in 2020–2030s, when
ulation is expected to drop.18 Thus, by the the African continent becomes the main
end of the 21st century the world will es- source of the world’s new labor resourc-
sentially be largely “African”. es, consumer demand and natural poten-
There is yet another important ad- tial for the development of world civiliza-
vantage of the countries with young and tion, it is only with Africa’s help that they
quickly growing population. Prevalence will be able to secure stable positions and
of seniors in the population structure dra- areas of influence for themselves in the fu-
matically increases the demographic bur- ture competitive struggle.
den and, consequently, healthcare and Russia, alas, has only in the recent 2 or
pension coverage costs. This is what the 3 years realized the importance of the “Af-
Western countries are facing now. In Af- rican vector” in decision-making on the
rican states, however, residents older than strategic objectives of its own economic

18 United Nations, Department of Economic and Social Affairs, Population Division (2017) // World Population Prospects: The 2017
Revision, Volume II: Demographic Profiles (ST/ESA/SER.A/400) // https://esa.un.org/Unpd/wpp/Publications/Files/WPP2017_Vol-
ume-II-Demographic-Profiles.pdf, last accessed on October 12, 2018.

14
ABRAMOVA I.O. AFRICA IN THE MODERN MODEL OF THE WORLD ORDER: A POWERFUL PLAYER OR AN OUTSIDER?  PP. 4–15

development. This was largely due to the References


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