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World Economic Forum on Africa kicks off
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Another negative factor is political instability. Eight out of the 10 most vulnerable and weak states are in Sub-Saharan Africa. Political instability, institutional incapacity and social unrest inhibit foreign capital inflows and lower investment appetites, negatively affecting economic opportunities.

Meanwhile, Africa is vulnerable to economic shocks. Any pronounced slowdown in world growth would affect African exports of agricultural products, minerals and hydrocarbons. Africa's dependence on natural resource exports has made many countries vulnerable to commodity price shocks that are outside their control. Sudden increases in export revenues or import costs can cause currency instability and budget uncertainty.

In the medium term, growing income inequalities might generate social unrest and violent conflicts.

The wealthiest decile of the population across the continent still controls between 30 to 60 percent of total income.

Many African countries appear in the lowest positions of the United Nations' Human Poverty Index.

Africa contributes least to global climate change, with only 5 percent of greenhouse gas emissions, but it is the most vulnerable region to the expected negative effects.

In other regions there is still a sense that the consequences of climate change lie in the future, in Africa it's being felt now.

The impacts on the continent include greater frequency and severity of extreme weather events, raising the threat of further food and water insecurity and more poverty, disease and population displacement.

These impacts are idiosyncratic: there will be local winners and losers. At the same time, opportunities will be created by the need for new investments.

These four threats to Africa's future are not isolated risks. Their drivers, triggers and potential consequences are highly interconnected. They will all be addressed in the meeting.

Since the forum started many years ago, the participants had made some progress to help Africa, said E. Neville Isdell, chairman and chief executive officer of Coca-Cola in Rome on the same day.

"People come together to bring about the solutions to engage the triangle of government, society and business, make them work effectively," he said.

(Xinhua News Agency June 5, 2008)

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