The Republic of Cte D'Ivoire - Research Paper Example

?Cote d'Ivoire: Reviving the Lost Glory Outline I. Executive Summary II. Country Profile III. History IV. Political Organization V. Economic Organization VI. Major Issues and Challenges VII. Development Programs VIII. Program Evaluation Executive Summary Ivory Coast has been on a rollercoaster ride being up once then suffering a downward spiral. Despite being regarded as the top cocoa producer in the world, the country seemed to have a hard time making a leap. As compared to the other countries in West Africa, Ivory Coast possesses resources and developed infrastructure. But recent political problems as well as corruption and high poverty incidence have hindered any plans of growth. Since the issue of who will lead the country has already been resolved, Ivory Coast is in the process of moving forward and breaking all barriers caused by war. The government has concrete plans on turning the fortune of the country. In addition, foreign aid and investments have been pledged to boost the country’s economy. Another issue that prevents Ivory Coast from improving is the lack of human capital development. The level of investment provided to improve cocoa farmers is low. The government needs to pay attention to this segment as majority of the population are into agriculture. Prices of commodities have to remain competitive and taxes should be reduced. I. Country Profile The Republic of Cote d'Ivoire, also known as Ivory Coast is a country situated in West Africa. The country has a total land area 322,460 square kilometers and shares borders with Liberia, Ghana, Guinea, Mali, and Burkina Faso. The southern boundary of the country includes a 515-coastline from the Gulf of Guinea. Ivory Coast’s terrain includes lagoons in the southeast, dense forests in the southwest, and savannah areas in the north. The west part of the country is mostly mountainous with wide plains. The country’s climate is warm and transitions from tropical to equatorial. Ivory Coast experiences heavy rains during the months of June to October and dry periods from December to April. The average temperature is at 25 to 30 degrees Celsius with the lowest at 10 degrees Celsius and highest at 40 degrees Celsius (CIA, 2011). As of July 2011, Cote d'Ivoire has an estimated population of 21,504,162 which ranks the country 56th in the world. The population comprises of major ethnic groups; the biggest which is Akan with 42% of the total population. The other ethnic groups from largest to smallest include Gur, Northern Mandes, Krous and Southern Mandes. Each year, the population of the country increases by 2.0 percent with a birth rate of 31 per 1,000 people and death rate of 10 per 1,000 people. Life expectancy on the average is at 57 years with males reaching 56 years and females reaching 58 years (CIA, 2011). Ivory Coast’s largest city is Abidjan where the seat of government is located. The capital city of Yamoussoukro and the government is divided into 19 regions and 81 departments. Other main cities include Bouake, Daloa, Korhogo, San Pedro and Divo. The country’s official language is French but the use of English has been observed. About 39% of the people are Muslims, 32% are Christians, 12% are indigenous and the rest have no established religion. Ivory Coast is 51% urbanized and the rate on urbanization is at 3.7% change annually. Literacy rate is at 49% where 61% of the men and 38 of women can read and write. In terms of age structure, 57% are aged between 15 to 64 years old, 40% are between 0 to 14 years old and the rest of the population is over 65 years old (CIA, 2011). II. History There have been documents stating there were pre-historic human settlements in Ivory Coast. Most of the groups that established communities in the country were tribes that broke away from powerful groups in West Africa. The lush forests have served as barrier preventing foreign tribes from coming in. Hence Ivory Coast has limited foreign influence and has limited awareness as to what is happening outside. During the 18th century, most communities were established in the form of villages and trade has become the major element that bridges Ivory Coast to the rest of Africa (DLIFLC, 2009). The spread of Islam was initiated by the Sudanic empires which flourished during the 13th to 14th century. Traders coming from Arab countries have expanded their trade routes which already reached Ivory Coast. During the period, there were several Muslim states that grew in the country. The Muslim Kong Empire, established by the Juula tribe promoted trade, crafts and agriculture in the country. Jaman’s Abron Kingdom, which sprouted in the 17th century, has developed learning centers in Bondoukou. The Baoule also developed into a centralized political and economic center which primarily resisted the French colonization (Guede, 1995). During the 1880s, France made an aggressive claim of the states located in Western Africa. In 1889, the French government established full sovereignty of Ivory Coast. The country becomes a colony of France in 1893 and Captain Binger was appointed as governor. The initial period of the colonization was characterized by France, muscling and forcing local tribes to signed one-sided treaties. Some tribes, however, provided to hesitation because of their view that the French government could solve their problems. During the French regime, Ivory Coast was divided into administrative units managed at the regional level by district commissioners. Each village is ruled by an appointing chief who was different from the manner in which tribal authority is implemented. Any form of resistance from this method is either subjected to forced labor or imprisonment (Wooten, 1992). Ivory Coast soon became a part of the Federation of French West Africa which includes other states governed by France in the region. LeVine (2004) noted that this followed the policy of association which justifies France’s claim of Ivory Coast being a colony. This arrangement makes Ivory Coast a subject of France but are not provided with citizenship options. The French government, however, allows representation from all West Africa states. After World War II, France recognized the contributions of West African colonies and France started granting citizenship to the subjects. Moreover, plantations and factories that practice forced labor were abolished. Prior to independence, Ivory Coast was turned into an autonomous republic after a referendum. On August 7, 1960, the Republic of Cote d'Ivoire became an independent state. The country remained close to the West and has remained stable. The country’s neighbors in the region have experienced coups and changes in economic systems. Felix Houphouet-Boigny was a prominent figure during Ivory Coast’s early days as an independent state. Houphouet-Boigny served in the French National Assembly (FNA) and has advocated for the agricultural growth. After serving in the FNA, Houphouet-Boigny was appointed as a minister of France. In 1958, Houphouet-Boigny became the Prime Minister of Ivory Coast and two years later assumed the role of President. The regime of Houphouet-Boigny highlighted the countries growth in terms of agriculture and even becoming a renowned producer of coffee and cocoa (Akokpari, 2008). III. Political Organization Alassane Ouattara is the country’s president after winning in the elections held last October 2010. Guillaume Soro assumed the role of Prime Minister after Ouattara occupied presidential post (BBC, 2011). Ivory Coast is a republic with a multi-party system. The President is the Chief of State which the Prime Minister acts as the Head of Government. The country’s legislative branch is ruled by a 225-seat unicameral National Assembly where members have to be elected by the voting population. The Supreme Court is the head of the judicial branch and overseas the Judicial Chamber (criminal cases), Audit Chamber (financial cases), Constitutional Chamber (judicial review cases) and Administrative Chamber (civil cases) (CIA, 2011). The country’s constitution was drafted in 1958 and the current constitution was approved in 2000 through a referendum. The President is determined through an election and appoints a Prime Minister. Election is held once every 5 years and the voting individuals must be a citizen of Ivory Coast and has reached 18 years old. The current Prime Minister was appointed by an international committee as recommended by the UN Security Council and African Union. The 2010 elections have become was subject to controversy after former President, Laurent Gbagbo refused to stepped after losing to Ouattara and serving as Ivory Coast’s leader for ten years. Gbagbo has remained steadfast because of militia and loyalist support. But the international community led by France forcefully evicted Gbagbo from office and installed Ouattara as new President-elect (BBC, 2011). Ivory Coast is a member of several international organizations. The country is part of the United Nations (UN) and umbrella organizations such as UNCTAD, UNESCO, UNHCR, UNIDO and UNWTO. The country is also a member of regional organizations in African such as the African Union (AU), African Development Bank (AFDB) and the Economics Community of West African States (ECOWAS). Other organizations where Ivory Coast is a member include G-24, G-77, International Labor Organization (ILO), World Health Organization (WHO) and the World Trade Organization (WHO) (DLIFLC, 2009). IV. Economic Organization The economy of Ivory Coast is mainly dependent of agricultural produce. Approximately 70% of the population is engaged in agricultural activities primarily producing and exporting cocoa. In addition, Ivory Coast is also known in producing coffee and palm oil. Gross Domestic Product (GDP) increased by 2% in 2008 and has improved to 4% in both 2009 and 2010. The country’s estimated GDP per capita in 2010 is estimated at $1,800 which is one of the highest in Africa. As for the GDP composition, 28% comes from agriculture, 21 from industries and 51% from services. Based on 2006 figures, 42% of the people are below the poverty line. Ivory Coast’s main industries include food and beverage, forest products, oil refining, automotive assembly, textiles, industrial materials, power, and shipbuilding (CIA, 2011). Aside from farming, there are other areas in which Ivory Coast is starting to flourish. Animal husbandry is an important segment that the country is gradually developing. As of 2004, about 4 million heads of cattle, goat, sheep, and hogs where produced. About 33 million chickens and 31 thousand tons of eggs were produced during the period. Since there are no available milk processing plants, milk is consumed raw. Fishery is another industry that thrives in Ivory Coast. As of 2004, commercial fishing accounts 25% of the total produce while the rest are distributed between artisanal fishing (74%) and aquaculture (1%). Approximately 100,000 tons of tuna are caught annually and sardines fishing are also rampant. Moreover, Ivory Coast houses 184,000 hectares of planted forest. In 2003, forest exports were valued at $269 million. Forest products are exported in several African and European countries (CIA, 2011). The transportation system of Ivory Coast is considered as one of the most advanced in Africa. The country has road systems that expand to 8,000 miles. The communication systems are also advanced which include a public data communications network, mobile phone service provider, and Internet connectivity. Abidjan houses an airport that links to several destinations in African and Europe (BAA, 2009). Microfinance is another activity that has gained ground in the country. According to the United Nations, in 1995, microfinance has contributed 20% in Ivory Coast’s GDP and 30% on the total employment. The government has been working with UNDP to provide financial services to 24,000 individuals which 85% are women. V. Major Issues and Challenges The recent political problems caused by the presidential disputes have led to several economic sanctions imposed on Ivory Coast. Several economists view this issue as a major blow to the economy of the country. Before then President Laurent Gbagbo was ousted, several banks have already closed and supply of basic goods and services were on a rapid decline. Most observers believe that most of Ivory Coast’s neighbors have progressed while the country stagnated. The regime of Gbagbo has resulted to the decline of grassroots development in the south part of the country (Colombant, 2011). Although Gbagbo was already replaced, Ivory Coast still faced by several existing political issues especially the differences among parties. Cocoa has been considered as the staple export of Ivory Coast. The country accounts for 40% of the world’s total cocoa production. Despite this advantage, there are several problems seen in the manner in which the government treats cocoa farmers. Accordingly, most cocoa farmers remain below the poverty line. This happens because of the low share of prices given to the farmers. In addition, the tax imposed on such products is high. A study conducted by FSG (2009) shows that 34% tax is charged in Ivory Coast whereas only 15% is charged in Ghana. Moreover, the price of fertilizer is so high that it would take 52 kilograms of cocoa to buy one bag. This is so high when compared to Indonesia where only 8 kilograms of cocoa are required to purchase one bag of fertilizer. Farmers have no capacity to invest in their farms which would eventually result to low yields. Corruption is another major issue that needs to be reduced in Ivory Coast. Civil servants in the country are paid low hence their services would often go with additional compensation. There is also massive extortion being done to several businesses and even ordinary citizens. The problem worsens as soldiers have joined the rebels in extorting money from the people. Based on World Bank estimates, about 95 to 150 million CFA is extorted in Ivory Coast yearly. The figures serve as warning to foreign investor and companies that plan to expand their business in the country. Aside from the rebels and soldiers, unemployed youth have also been recruited to perform extortion activities. The existence of poverty becomes a hindrance in Ivory Coast’s plans to further expand as an economy. As of 2009, the ratio 1 out of 2 persons in poor as compared in 1985 when poverty levels are at 10% (Haaba, 2009). The increase in poverty incidence has been caused by rapid population growth, degrading commodities market and the civil war. The unstable government has also been a contributing factor to Ivory Coast’s state. Poverty has also prevented households from purchasing their basic needs. Since most commodities are imported, the prices are expected to be high. The political problems in Ivory Coast have also affected the delivery of health services. Several health workers were fearful of the violence that has been seen in the streets. Important medicines are starting to run out of supply in hospitals and several health facilities have been shut down. Another health problem, which is the yellow fever, has affected several individuals. Since November 2010, there were 65 deaths recorded. In addition, the availability of potable water has become scarcer (Zamble, 2011). The lack of such resource has led to more health problems in areas affected. VI. Solutions, Policies, Programs and Planning One of the main focuses of the government is to improve the infrastructure. The government has a public investment plan which outlines the projects to be pursued in the coming years. There are priority projects such as building more roads and improving the air and sea ports. Moreover, the government has been promoting public-private partnerships to further enhance current infrastructure and to create more. Several foreign investors are being lured to invest in the country as the government promises to streamline all functions and ensure that the environment is already conducive for business. Based on World Bank’s “Doing Business” data, Ivory Coast’s rank increased from 170th to 167th in the world. Although there are several actions that should be done, the country is on the right track when it comes to improving the business scene. Among the aspects that have improved, Ivory Coast has improved the process to obtain credit. The new government has restored the confidence of investors in the financial segment. Another important aspect showed in the World Bank report is the increased action taken when insolvency occurs. These two are important in creating a good business environment. As discussed earlier, the government has partnered with UNDP to further improve microfinance. The program targets women who are usually stay in their homes and earn nothing. The goal is to empower the poor into working on their own businesses and also improve the lives of several poor households. The funds for this microfinance project were sourced from both government levies and foreign donations. The program is expected to impact 24,000 individuals in the future expand to other families. Since UNDP is involved, the program is non-profit and provides protection to borrowers. In terms of foreign investments, France contributes the most of Ivory Coast’s total FDI. Moreover, France has been advocating the rehabilitation of the country. Several other countries including the United States have provided development aid to Ivory Coast. France has promised 350 million Euros to serve as stimulus for the economy of Ivory Coast. The US government also committed $125 million for the improvement of Ivory Coast’s healthcare sector. Moreover, the Asian Development Bank mentioned a package of $34.5 million to manage the remaining rain forest in the country (Pandya, 2011). VII. Evaluation of Solutions & Development Prospects The investment plans of Ivory are so bold that such would require massive funds. But the recent debt problems will hamper such plans. Several debts of Ivory Coast are already near default. The government has been active in negotiating for reprieve if amnesty is not possible (Reuters, 2011). Based on CIA (2011) figures, public debt is at 64% of GDP and the country is operating under a budget deficit. The presence of terrorist and rebels also affect the view of investors. Ousted President Gbagbo is supported by several militiamen that have continued to dissuade the current leadership. Several companies are raided and even farmers were not spared. The government needs to take care of these hooligans to stabilize the business process in some areas. Finally, the recent global debt problems could have an impact in the future of the country. France, which is one of the country’s supporters, is under debt siege. This will temper Ivory Coast’s aggressiveness and might affect other programs moving forward. References Agence France Presse, (2009), “Ivory Coast Corruption Crackdown Prosecutor Faces Death Threats” Akokpari, J. (2008). The Roots of African Conflicts: The Causes and the Cost, “Chapter Two: You Don’t Belong Here”, Athens: Ohio University Press British Broadcasting Corporation, “Ivory Coast Profile”, Date retrieved, 24 October 2011, from: < http://www.bbc.co.uk/news/world-africa-13287218> Bureau of African Affairs, (2009), “Background Note: Cote d’Ivoire.” Date retrieved, 24 October 2011, from: CIA, The World Factbook, “Cote d'Ivoire”, Date retrieved, 24 October 2011, from: Colombant, N. (2011), Voice of America, “Ivory Coast Economy Quickly Deteriorates, Alarming Economists and Residents” Date retrieved, 24 October 2011, from: Defense Language Institute Foreign Language Center, (2009), “Cote d'Ivoire in Perspective”, Date retrieved, 24 October 2011, from: < http://fieldsupport.dliflc.edu/products/cip/Cote_dIvoire/Cote_dIvorie.pdf> FSG Social Impact Advisors, (2009), “Managing Risk in Cote d’Ivoire’s Cocoa Sector”, Date retrieved, 24 October 2011 from: < http://www.fsg-impact.org> Haaba, (2009), “Half Ivory Coast’s Population Lives in Poverty: Report”, Date retrieved, 24 October 2011, from: LeVine, V.T. (2004), Politics in Francophone Africa: The States of West and Equatorial Africa, `“Chapter Two: The Colonial Context”, Boulder: Lynne Reiner, Pp. 46 Pandya, C. (2011), “Development Business Opportunities in Ivory Coast”, Date retrieved, 24 October 2011, from: < http://www.devex.com/en/blogs/aid-beyond-the-headlines/development-business-opportunities-in-ivory-coast> Reuters, (2011), “Ivory Coast finance minister pledges to tackle debt”, retrieved, 24 October 2011, from: < http://af.reuters.com/article/ivoryCoastNews/idAFL6E7J422Z20110804> UNDP, “Countries and Regions: Cote d’Ivoire.” Date retrieved, 24 October 2011, from: Wooten, S. (1992), “French in West Africa: Early Contact to Independence”, African Studies Center: Pennsylvania Zamble, F. (2011), “Health problems in Ivory Coast”, Date retrieved, 24 October 2011, from: < http://www.businessday.co.za> Read More