Economic Development of Africa - Essay Example

? Economic Development Proposal Introduction Tribes in Africa constitute different tribal groups, which possess distinct characteristics in terms of number, social alignment, cultural ethos, and standard of living. The Congo region contains mainly four ethnic groups-Bakongo, Sangha, Teke, and M’Bochi- which also include tribal groups like forest Pygmies. These groups tend to stay in their areas of origin despite the changes in Congo’s living standards. The Bakongo is the largest group in the country and they are mainly seen across the southwest Brazzaville area whereas the Teke group lives in north of Brazzaville, and it mainly represents hunters and fishermen. The M’Bochi lives in the northwest and majority of the Brazzaville’s skilled workers and civil servants are from this group. In addition to these tribal groups, the country also includes a small Pygmy population with approximately 12,000 Pygmies (Overlanding Africa.com). These tribal groups represent different levels of socio-economic development and constitute an economically, politically, and socially underdeveloped community. They are most vulnerable to various forms of economic exploitation, social stagnation, and political isolation. Hence, it is necessary to integrate these tribal groups with the rest of the community on a footing of equality so as to help them attain progressive advancement. This is an economic development proposal that envisages the overall development of the Congo communities in the long run. Congo: An Overview Before framing the development proposals, it is necessary to analyze various economical, social, political, and cultural aspects of the country in order to get a clear view of the current status of the country. The country possesses a potential mining sector and productive agricultural sector. Researches indicate that the Congo’s untapped deposits of raw minerals are expected to be worth over US$ 24 trillion. Although the Congo was the second largest industrialized country in Africa at the time of its independence, currently it is one of the poorest countries in the world. While analyzing the Congolese Economy, it seems that the country’s fiscal policies are weaker and this troublesome situation is identified to be the most potential challenge to the growth of the country. As per the findings of The Heritage Foundation, the country’s business freedom is 40.8% and trade freedom is 61.0%; hence this regulatory environment makes the cost of launching and running a business high in the Congo. Similarly, the country maintains an ineffective tax system although it sets high tax rates. Congo’s highest income tax rate is 50% while its top corporate tax rate is 36%. In addition, the country has low investment freedom of 20% and it also represents a low privatization rate (“The Heritage Foundation”). Evidently, corrupted bureaucracy has become the major impediment to productive investments in Congo. According to World Bank, the CIPA fiscal policy rating in Congo was 3.50 in 2008. Hence, the tribal council must specifically take into account the weaker investment status of the country as inefficient operations of the Congolese government hamper foreign investments. The Congolese government does not adopt a favorable approach towards entrepreneurs and is less likely to promote productive ventures. According to reports, “uncertain legal framework, corruption, inflation, and lack of openness in government economic policy and financial operations” have been threatening the sustainable economic development of the country (Asias and Azizet). Due to uncertainty about economic outcomes, lack of infrastructure, and absence of government support, many foreign business firms have transplanted their operations from the country. According to the statistics, the literacy rate of the Congo was 67.2% as of 2001 data and the literate people constitute 80.9% males and 54.1% females. Three government ministries control the education system in the country and it is very similar to that of Belgium. Nearly 65% of the Congolese children from 10 to 14 ages attended school in 2001. As of 2002 data, there were 19,000 primary schools with 160,000 students and 8,000 secondary schools with 110,000 students (Eduniversal Ranking.com). As per the Article 43 of the 2005 Congolese Constitution, primary education is free and compulsory in the country. However, most of the Congolese tribal communities remain uneducated despite this relatively high literacy rate of the country. In addition, Congo has lower wage levels as compared to other African countries. The country’s wage levels constitute 54% of the 2009 GDP per capita. The Congolese tribal communities are discriminated in the employment sector, and they are paid comparatively less wages than the rest of the community for the same kind of work. Hunting and fishing are the most common vocational preferences of Congolese tribal groups and they hardly get access to skilled labor. In addition, these tribal groups are not willing to stay away from their main areas of origin. This behavioral trait also prevents them from entering the mainstream of the society for obtaining improved job opportunities. According to the reports of Bureau of African Affairs, obviously the traditional life of Congolese population has been changing since 19th century due to colonialism and the First and Second Congo Wars. Although the tribal communities still retain their uniqueness despite the external pressures, nearly 60 percent of the country’s inhabitants who live in urban areas are open to Western influences. In order to protect the country from excessive Western influences, the Congolese government is adopting some restrictive cultural policies. It may impede the advancement of programs aimed at the improvement of living standards of Congolese tribes. It is reported that cannibalism still persists among some divisions of the Congolese tribes and this situation becomes a potential barrier to the development of tribal programs. Tribal Development Program According to an opinion, “tribal development will automatically ensure national development and serve as a distinct advantage to the national economy” (Panda, 131). Although Democratic Republic of the Congo is the eleventh largest country in the world by area, it still remains one of the poorest countries in the world with second lowest nominal GDP per capita. Hence, a comprehensive plan is required for the overall development of Congo’s tribal communities. However, it is not reasonable to implement all programs at a time in order to achieve quick development of the region, because this strategy may result in operational inefficiencies. In contrast, it is advisable to execute the proposed programs part by part so that regulators can efficiently monitor the development of the implemented programs from time to time. Firstly, it is recommendable for the tribal agency to establish a free trade zone on the reservation as this practice can have great influence on boosting trade activities of the tribal communities. The concept of free trade zone will allow merchants to buy and sell goods without any intervention from governmental authorities. Since the Congolese government cannot collect any tariff or special taxes on imports under a free trade system, this favorable condition would attract foreign investors to the country. In addition, the free trade zone would be favorable for the tribes to take advantages of the country’s potential mining sector. The establishment of a free trade zone would also allow the Congolese tribes to have access to a wide variety of products and hence to take advantage of most economical purchases. Since foreign companies get cheap labor and raw materials in a free trade zone, they will be attracted to the country. Thus the Congolese tribal groups will get extensive employment opportunities. Furthermore, since mercantile activities constitute the backbone of an economy, a free trade zone can intensify the economic growth of the Congolese tribal communities. Secondly, it is recommendable for the tribal council to invest an amount of $20 million in destination resort hotel and golf course. A resort hotel and golf course will greatly assist the country to attract global tourists, specifically Europeans, and thereby the tribal people may obtain extensive employment opportunities. Tourism, as a fast growing industry has become the major source of revenue to many developing countries. In addition to employment sector development, the growth of tourism sector may contribute to the development of other related businesses like boarding establishments and caravan sites. Experiences of some other developing countries show that growth in tourism segment subsequently leads to the development of infrastructure and transport sectors. However, the tribal council must be vigilant while choosing the destination where the resort hotel and golf course have to be established. Pointe Noire, the second largest city in Congo is an excellent spot for the resort hotel and golf course. The city contains great beaches, diverse birdlife, and beautiful landscapes. In addition to these features, the Pointe Noire backpacking tours have many more attractions including low costs. The Pointe Noire Airport also adds to the potentiality of this place to be the destination for the proposed project. Finally, the tribal council has to build a 100 unit apartment complex and condo near to the tribal headquarters. This strategy will result in urbanization among Congolese tribal communities and ultimately it will lead to a change in the Congolese tribes’ traditional way of living. The condo lifestyle will cause the social integration of tribal groups with the rest of the Congolese people. As this project is most likely to develop urbanized areas in tribal regions, it would help the government to extend education and other facilities to this region. It will be beneficial for the council to consider the idea of reservation Capitalism so as to establish private economic activities for the uplift of underdeveloped sectors. Privatization will greatly contribute to the rapid economic growth of the Congolese tribal communities. The concept of “Reservation Capitalism” depicts the scope of reservation Capital idea in promoting economic growth of poorly developed regions (Falmouth Institute, 22). Conclusion Evidently, the Congolese economy is struggling with a wide range of issues including corruption, inflation, and thoughtless government policies. In order to achieve an overall development of Congolese tribal groups, it is essential to attract more foreign investments. Hence, developing a free trade zone is the first and most important proposal for the tribal council as this policy may foster trade activities across tribal communities. Similarly, building a resort hotel, golf course, 100 unit apartment complex, and condo are other recommendations to the tribal council for the economic growth of these groups. Works Cited Asias, Tali & Azizet, Yan Pambou. “Congo financial system.” (n.d): 1-9. Web. 01 November 2011. Bureau of African Affairs. “Background note: Democratic republic of the Congo.” U.S. Department of State. (2011). Web. 01 November 2011. Eduniversal Ranking.com. “Business school ranking in the Democratic Republic of the Congo: The education system in the Democratic Republic of Congo.” University and Business School Ranking in Rdc. (n.d). Web. 01 December 2011. Falmouth Institute. Native American Law Digest, Volume 13. Falmouth Institute, 2004. Print. The Heritage Foundation. “Republic of Congo.” 2011 Index of Economic Freedom. (2011). Web. 01 December 2011. Overlanding Africa.com. “Congo’s people.” (2009). Web. 01 December 2011. Panda, Nishakar. Policies, Programmes, and Strategies for Tribal Development. India: Kalpaz Publications, 2006. Print. Read More