Реферат: Short Overview of African Countries


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<span Arial",«sans-serif»">Introduction <st1:place w:st=«on»><span Arial",«sans-serif»">Africa</st1:place><span Arial",«sans-serif»"> in postcolonial period <span Arial",«sans-serif»">African economy today <span Arial",«sans-serif»">Economic organizations in <st1:place w:st=«on»>Africa</st1:place> <span Arial",«sans-serif»">Problems and ways to solve them

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Conclusion<span Arial",«sans-serif»; mso-fareast-font-family:«Times New Roman»;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA">

1. Introduction

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It isn’ta secret that <st1:place w:st=«on»><st1:PlaceType w:st=«on»>Republic</st1:PlaceType> of <st1:PlaceName w:st=«on»>Armenia</st1:PlaceName></st1:place> as well asother former socialist republics is at

<st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Angola</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Cameroon</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Chad</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Congo</st1:place></st1:country-region>(<st1:country-region w:st=«on»><st1:place w:st=«on»>Zaire</st1:place></st1:country-region>)

<st1:country-region w:st=«on»><st1:place w:st=«on»>Djibouti</st1:place></st1:country-region>

<img src="/cache/referats/13022/image008.gif" align=«left» hspace=«12» v:shapes="_x0000_s1027"> the end of the list of countries in terms ofeconomy, but almost everyone speaking about our country mentions that there area number of countries having more troubles with economy then our. Listening tothis kind of words makes listener think about <st1:place w:st=«on»>Africa</st1:place>,<st1:place w:st=«on»>Sahara</st1:place> the countries situated there. Algeria(which situated in north Africa), Angola, Botswana, Cameroon, Chad, Djibouti,Ghana, Kenya, Lesotho, Mozambique, Rwanda, Zaire (Democratic republic ofCongo), Zambia, Zimbabwe and a lot of others are countries traditionallyconsidered to be the poorest part of the world. This is the common image of <st1:place w:st=«on»>Africa</st1:place>. in the following report I would try to introducea little bit detailed picture of this object.

I thinkit will be better to begin with short historical overview of the region, whichis the home of one of the human races. The historians have defined four periodsof African history research.

<span Arial",«sans-serif»">This period is 2000 B.C. up to 6-th century A.D. During that time Egyptians were researching the north of the mainland. In 6th century B.C. Carthaginians travelled along the west coast. Roman travellers went far into <st1:place w:st=«on»>Libyan desert</st1:place>. <span Arial",«sans-serif»">7-14 centuries A.D. This is a period of Arabian invasions. After conquering the north they moved to the south and reached <st1:country-region w:st=«on»><st1:place w:st=«on»>Senegal</st1:place></st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Niger</st1:place></st1:country-region> rivers. <span Arial",«sans-serif»">The third period of research is associated with the Europeans desire to find a sea way to the wealth of <st1:country-region w:st=«on»><st1:place w:st=«on»>India</st1:place></st1:country-region>. By the end of sixteenth century the continent has been outlined on maps. <span Arial",«sans-serif»">This period of African history, which begins in eighteenth century is probably the most shameful part of European history. Europeans blinded with the magnificence of African wealth began sacking its territory, the same way as they did it in <st1:country-region w:st=«on»><st1:place w:st=«on»>America</st1:place></st1:country-region>.

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<span Arial",«sans-serif»">2. <st1:place w:st=«on»>Africa</st1:place>in postcolonial period

<span Arial",«sans-serif»">From this time and up to20-th century African continent was a big colony of a number of Europeancountries. After a century of rule by <st1:country-region w:st=«on»><st1:place w:st=«on»>France</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region> became independent in 1962.<st1:country-region w:st=«on»><st1:place w:st=«on»>Angola</st1:place></st1:country-region>– former <st1:country-region w:st=«on»><st1:place w:st=«on»>Portugal</st1:place></st1:country-region>colony got its freedom in 1975. Formerly the British protectorate of <st1:country-region w:st=«on»><st1:place w:st=«on»>Bechuanaland</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>adopted its new name upon independence in 1966. The former French Cameroon andpart of British Cameroon merged in 1961 to form the

<st1:country-region w:st=«on»><st1:place w:st=«on»>Ghana</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Kenya</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Lesotho</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>

<st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region>

 <st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region>

<img src="/cache/referats/13022/image016.gif" align=«left» hspace=«12» v:shapes="_x0000_s1028"><span Arial",«sans-serif»">presentcountry. <st1:country-region w:st=«on»><st1:place w:st=«on»>Chad</st1:place></st1:country-region>was a part of <st1:country-region w:st=«on»><st1:place w:st=«on»>France</st1:place></st1:country-region>'sAfrican holdings until 1960. The <st1:place w:st=«on»><st1:PlaceName w:st=«on»>French</st1:PlaceName> <st1:PlaceType w:st=«on»>Territory</st1:PlaceType></st1:place> of the Afarsand the Issas became <st1:country-region w:st=«on»><st1:place w:st=«on»>Djibouti</st1:place></st1:country-region>in 1977. Formed from the merger of the British colony of the Gold Coast and theTogoland trust territory, <st1:country-region w:st=«on»><st1:place w:st=«on»>Ghana</st1:place></st1:country-region>in 1957 became the first country in colonial <st1:place w:st=«on»>Africa</st1:place>to gain its independence. <st1:place w:st=«on»>Basutoland</st1:place> wasrenamed the <st1:place w:st=«on»><st1:PlaceType w:st=«on»>Kingdom</st1:PlaceType> of <st1:PlaceName w:st=«on»>Lesotho</st1:PlaceName></st1:place> uponindependence from the <st1:country-region w:st=«on»><st1:place w:st=«on»>UK</st1:place></st1:country-region>in 1966. <st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>almost five centuries was a Portuguese colony came to a close with independencein 1975. <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>gains its independence in 1962. The <st1:place w:st=«on»><st1:PlaceType w:st=«on»>territory</st1:PlaceType> of <st1:PlaceName w:st=«on»>Northern Rhodesia</st1:PlaceName></st1:place> wasadministered by the South Africa Company from 1891 until takeover by the <st1:country-region w:st=«on»><st1:place w:st=«on»>UK</st1:place></st1:country-region> in 1923.During the 1920s and 1930s, advances in mining spurred development andimmigration. The name was changed to <st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region> upon independence in1964.  The <st1:country-region w:st=«on»><st1:place w:st=«on»>UK</st1:place></st1:country-region> annexed <st1:place w:st=«on»>Southern Rhodesia</st1:place> from the South Africa Company in 1923. A 1961constitution was formulated to keep whites in power. In 1965 the governmentunilaterally declared its independence, but the <st1:country-region w:st=«on»><st1:place w:st=«on»>UK</st1:place></st1:country-region> did not recognize the act anddemanded voting rights for the black African majority in the country (thencalled <st1:country-region w:st=«on»><st1:place w:st=«on»>Rhodesia</st1:place></st1:country-region>).UN sanctions and a guerrilla uprising finally led to free elections in 1979 andindependence (as <st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region>)in 1980. But even after formal independence most countries are heavilydependant on <st1:place w:st=«on»>Europe</st1:place> in terms of investitionsand aids. <span Arial",«sans-serif»">After the «lost decade» of theeighties when tumbling commodity prices, debt, economic and politicalmismanagement brought African economies to near bankruptcy, the majority ofAfrican countries have embarked on International Monetary Fund (IMF), WorldBank and donor supported economic reform programmes. In December of year 2000,the World Bank gave US$155 million in credits to help seven African countries —<st1:country-region w:st=«on»><st1:place w:st=«on»>Madagascar</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Mali</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Mauritania</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Niger</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region>,and <st1:country-region w:st=«on»><st1:place w:st=«on»>Uganda</st1:place></st1:country-region>— cope with an unexpected surge in oil prices and other losses in their termsof trade. These factors were causing serious hardship for the poor in terms ofrising energy and transportation costs, which in turn were jeopardizing thesuccess of the countries' reform programs. Still, poverty is higher in <st1:place w:st=«on»>Africa</st1:place> than in any other region of the world. Accordingto the latest data  two out of fiveAfricans subsist below a poverty line of less than $20 per month; the majorityof these are women. This mean that some 300 million Africans live on barely 65cents a day. <st1:place w:st=«on»>Africa</st1:place> has the most unequaldistribution of income of any region in the world. The richest twenty percentof Africans own 51 percent of total income, compared to 40 percent in westerncountries and in <st1:place w:st=«on»>South Asia</st1:place>. The last reporton <st1:place w:st=«on»>Africa</st1:place> made by World Bank group also showshow civil conflict in the region has blunted and reversed growth prospects forwar-torn countries. While the trend for many African countries during the 1990swas one of slow but steady economic improvement, those in conflict suffered negativegrowth and an alarming deterioration in basic conditions (Angola -0.2 percent,Burundi -2.4 percent, Democratic Republic of Congo, -4.6 percent, Rwanda, -2.1percent, Sierra Leone, -4.6 percent). In essence, the present forecast is thatthe world's poverty will become even more concentrated in <st1:place w:st=«on»>Africa</st1:place>.

<img src="/cache/referats/13022/image018.jpg" align=«left» hspace=«12» v:shapes="_x0000_s1030">But not only the economic problems were quaking the continent.Continuous warfares wouldn’t give a chance to develop national economy of thatregion. But what is the present situation there? It seemed like the countriesstepped on a way of democracy, but as a recent World Bank report on <st1:place w:st=«on»>Africa</st1:place> notes, «a sharp distinction should be drawnbetween formal and real democratisation». During the 1990s, 45 out of 50African countries held multiparty elections, in addition to the four Africancountries that had such a system at the start of the decade. But in only tenelections did these lead to a change of government. With the significantexception of <st1:country-region w:st=«on»><st1:place w:st=«on»>Senegal</st1:place></st1:country-region>,the trend in the most recent elections on the continent appears to be one ofeven fewer changes in government. According to the OAU (Organization of African Unity),26 African conflicts have taken place since 1963, affecting 61 percent of thepopulation. Today, 21 percent of <st1:place w:st=«on»>Africa</st1:place>'speoples are in war and conflict (<st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Angola</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Burundi</st1:place></st1:country-region>,Comores, <st1:country-region w:st=«on»><st1:place w:st=«on»>Congo</st1:place></st1:country-region>,DRC, <st1:country-region w:st=«on»><st1:place w:st=«on»>Eritrea</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Ethiopia</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Sierra Leone</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Somalia</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Sudan</st1:place></st1:country-region>and <st1:country-region w:st=«on»><st1:place w:st=«on»>Uganda</st1:place></st1:country-region>).It is comparable with <st1:place w:st=«on»>Asia</st1:place> (<st1:country-region w:st=«on»><st1:place w:st=«on»>Cambodia</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>India</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Indonesia</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Pakistan</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Philippines</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Sri Lanka</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Tibet</st1:place></st1:country-region>) or even <st1:place w:st=«on»>Europe</st1:place> (<st1:place w:st=«on»><st1:City w:st=«on»>Balkans</st1:City>, <st1:country-region w:st=«on»>Northern Ireland</st1:country-region></st1:place>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Russia</st1:place></st1:country-region>or <st1:country-region w:st=«on»><st1:place w:st=«on»>Spain</st1:place></st1:country-region>).According to arecent survey on political rights and civil liberties by Freedom House, 23 outof 50 African countries are classified as «not free». But overall,over the last decade Freedom House has moved <st1:place w:st=«on»>Africa</st1:place>’sstatus from «not free» to «partly free»- a significantimprovement. Where there is conflict there is nodemocracy, there is hardly an economy, and- as we've seen in <st1:country-region w:st=«on»><st1:place w:st=«on»>Somalia</st1:place></st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Liberia</st1:place></st1:country-region> — onemay even question whether there is a state. Poverty, politicalinstability and war go together.

3. Africaneconomy today

Economistsuse a number of indicators to measure a welfare of population of given country.Undoubtaly the most important of them are GDP (Gross Domestic Product) and GNP(Gross National Product). In order to make the comparision more expressive,these indexes are calculated not in absolute values but per capita. This methodhelps researchers to disengage themselves from the size of the country. Two ofother important indicators are Life Expectancy at Birth and Illiteracy Rate.

In 1998 real GDP growth washigher in <st1:place w:st=«on»>Africa</st1:place> than any other developingregion, while inflation was slightly higher than in <st1:place w:st=«on»>Asia</st1:place>and significantly lower than other developing regions. Half the world's tenfastest growing economies are in <st1:place w:st=«on»>Africa</st1:place>,although growing off very low bases.

1999 wasnot a good year for <st1:place w:st=«on»>Africa</st1:place>. Armed conflictincreased and looks set to continue. The slow-down in the world economyaffected stock markets; caused currencies to depreciate; and reduced foreignexchange income from oil, minerals and metals and agricultural products. Aid tothe region is reducing and investors are having second thoughts, leaving manyprojects on the drawing board. Aids, malaria, cholera and other diseases arerampant. Foreign debt servicing and corruption mean that little foreignexchange trickles through to fund education, health and infrastructure. Tourismand, strangely enough, information technology provide the best hope for thedark continent.

Thehighest GNP per capita from the mentioned countries have <st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>($3240),<st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region>($1550)and the lowest  <st1:country-region w:st=«on»><st1:place w:st=«on»>Chad</st1:place></st1:country-region>($210), <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>($250).There’s no need to bring the whole figures in the text but I want to mentionsome common clauses.

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All the countries in the listbesides the <st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region>situated in the <st1:country-region w:st=«on»><st1:place w:st=«on»>south Africa</st1:place></st1:country-region>.The rule is that the <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region> is poorer then the North. Thoughthere is some exceptions <st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>($3240), <st1:place w:st=«on»><st1:PlaceName w:st=«on»>South</st1:PlaceName> <st1:PlaceName w:st=«on»>African</st1:PlaceName> <st1:PlaceType w:st=«on»>Republic</st1:PlaceType></st1:place>($3240).

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I try to select the countrieswhich indicators are representing the picture of southern part. Some of theother countries have the indicators lower then mentioned,<st1:country-region w:st=«on»><st1:place w:st=«on»>Burundi</st1:place></st1:country-region> ($120),<st1:country-region w:st=«on»><st1:place w:st=«on»>Malawi</st1:place></st1:country-region>($180), <st1:country-region w:st=«on»><st1:place w:st=«on»>Sierra Leone</st1:place></st1:country-region>($ 130) and the other higher, <st1:country-region w:st=«on»><st1:place w:st=«on»>Seychelles</st1:place></st1:country-region>($6500), <st1:country-region w:st=«on»><st1:place w:st=«on»>Gabon</st1:place></st1:country-region>($ 3300), <st1:place w:st=«on»><st1:PlaceName w:st=«on»>South</st1:PlaceName> <st1:PlaceName w:st=«on»>African</st1:PlaceName> <st1:PlaceType w:st=«on»>Republic</st1:PlaceType></st1:place>.<span Arial Unicode MS"">

As itcan be easily seen  <st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region> percapita GDP is 3 – 6 times higher then the average on <st1:place w:st=«on»>Africa</st1:place>.Some others have 2-6 times lower. In order to explain these exceptions one mustconsider the particularities of the countries. That’s why I’m bringing shortoverviews of the mentioned countries followed by some generalizations.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region>. The hydrocarbons sector is the backbone of the economy, accountingfor roughly 52% of budget revenues, 25% of GDP, and over 95% of exportearnings. <st1:country-region w:st=«on»><st1:place w:st=«on»>Algeria</st1:place></st1:country-region>has the fifth-largest reserves of natural gas in the world and is the secondlargest gas exporter; it ranks fourteenth for oil reserves. <st1:City w:st=«on»><st1:place w:st=«on»>Algiers</st1:place></st1:City>' efforts to reform one of the mostcentrally planned economies in the Arab world stalled in 1992 as the countrybecame embroiled in political turmoil. Burdened with a heavy foreign debt, <st1:City w:st=«on»><st1:place w:st=«on»>Algiers</st1:place></st1:City> concluded aone-year standby arrangement with the IMF in April 1994 and the following yearsigned onto a three-year extended fund facility which ended <st1:date Month=«4» Day=«30» Year=«1998» w:st=«on»>30 April 1998</st1:date>. Some progress oneconomic reform, Paris Club debt reschedulings in 1995 and 1996, and oil andgas sector expansion contributed to a recovery in growth since 1995. Still, theeconomy remains heavily dependent on volatile oil and gas revenues. Thegovernment has continued efforts to diversify the economy by attracting foreignand domestic investment outside the energy sector, but has had little successin reducing high unemployment and improving living standards.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Angola</st1:place></st1:country-region>. <st1:country-region w:st=«on»><st1:place w:st=«on»>Angola</st1:place></st1:country-region>is an economy in disarray because of a quarter century of nearly continuouswarfare. Despite its abundant natural resources, output per capita is among theworld's lowest. Subsistence agriculture provides the main livelihood for 85% ofthe population. Oil production and the supporting activities are vital to theeconomy, contributing about 45% to GDP and 90% of exports. Notwithstanding thesigning of a peace accord in November 1994, violence continues, millions ofland mines remain, and many farmers are reluctant to return to their fields. Asa result, much of the country's food must still be imported. To take advantageof its rich resources — gold, diamonds, extensive forests, Atlantic fisheries,and large oil deposits — <st1:country-region w:st=«on»><st1:place w:st=«on»>Angola</st1:place></st1:country-region>will need to implement the peace agreement and reform government policies.Despite the increase in the pace of civil warfare in late 1998, the economygrew by an estimated 4% in 1999. The government introduced new currencydenominations in 1999. Expanded oil production brightens prospects for 2000,but internal strife discourages investment outside of the petroleum sector.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>. Agriculture still provides a livelihood for more than 80% of thepopulation but supplies only about 50% of food needs and accounts for only 3%of GDP. Subsistence farming and cattle raising predominate. The sector isplagued by erratic rainfall and poor soils. Diamond mining and tourism also areimportant to the economy. Substantial mineral deposits were found in the 1970sand the mining sector grew from 25% of GDP in 1980 to 38% in 1998. Unemploymentofficially is 21% but unofficial estimates place it closer to 40%. The Orapa2000 project, which will double the capacity of the country's main diamondmine, will be finished in early 2000. This will be the main force behindcontinued economic expansion.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Cameroon</st1:place></st1:country-region>. Because of its oil resources and favorable agriculturalconditions, <st1:country-region w:st=«on»><st1:place w:st=«on»>Cameroon</st1:place></st1:country-region>has one of the best-endowed primary commodity economies in sub-Saharan <st1:place w:st=«on»>Africa</st1:place>. Still, it faces many of the serious problemsfacing other underdeveloped countries, such as a top-heavy civil service and agenerally unfavorable climate for business enterprise. Since 1990, thegovernment has embarked on various IMF and World Bank programs designed to spurbusiness investment, increase efficiency in agriculture, improve trade, andrecapitalize the nation's banks. The government, however, has failed to pressforward vigorously with these programs. The latest enhanced structuraladjustment agreement was signed in October 1997; the parties hope this willprove more successful, yet government mismanagement and corruption remainproblems. Inflation has been brought back under control. Progress towardprivatization of remaining state industry should support continued economicgrowth in 2000.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Chad</st1:place></st1:country-region>. Landlocked <st1:country-region w:st=«on»><st1:place w:st=«on»>Chad</st1:place></st1:country-region>'seconomic development suffers from it's geographic remoteness, drought, lack ofinfrastructure, and political turmoil. About 85% of the population depends onagriculture, including the herding of livestock. Of <st1:place w:st=«on»>Africa</st1:place>'sFrancophone countries, <st1:country-region w:st=«on»><st1:place w:st=«on»>Chad</st1:place></st1:country-region>benefited least from the 50% devaluation of their currencies in January 1994.Financial aid from the World Bank, the African Development Fund, and othersources is directed largely at the improvement of agriculture, especiallylivestock production. Due to lack of financing, the development of the <st1:place w:st=«on»><st1:PlaceName w:st=«on»>Doba</st1:PlaceName> <st1:PlaceType w:st=«on»>Basin</st1:PlaceType></st1:place>oil fields, originally due to finish in 2000, has been substantially delayed.

Democratic <st1:place w:st=«on»><st1:PlaceType w:st=«on»>Republic</st1:PlaceType> of <st1:PlaceName w:st=«on»>Congo</st1:PlaceName></st1:place> (<st1:country-region w:st=«on»><st1:place w:st=«on»>Zaire</st1:place></st1:country-region>). The economy of the <st1:country-region w:st=«on»><st1:place w:st=«on»>Democratic Republic of the Congo</st1:place></st1:country-region> — a nation endowedwith vast potential wealth — has declined drastically since the mid-1980s. Thenew government instituted a tight fiscal policy that initially curbed inflationand currency depreciation, but these small gains were quickly reversed when theforeign-backed rebellion in the eastern part of the country began in August1998. The war has dramatically reduced government revenue, and increasedexternal debt. Foreign businesses have curtailed operations due to uncertaintyabout the outcome of the conflict and because of increased governmentharassment and restrictions. Poor infrastructure, an uncertain legal framework,corruption, and lack of openness in government economic policy and financialoperations remain a brake on investment and growth. A number of IMF and WorldBank missions have met with the new government to help it develop a coherenteconomic plan but associated reforms are on hold. Assuming moderate peace,annual growth is likely to increase to nearly 5% in 2000-01, but inflation willcontinue to be a problem.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Djibouti</st1:place></st1:country-region>. The economy is based on service activities connected with thecountry's strategic location and status as a free trade zone in northeast <st1:place w:st=«on»>Africa</st1:place>. Two-thirds of the inhabitants live in the capitalcity (Djibouty), the remainder being mostly nomadic herders. Scanty rainfalllimits crop production to fruits and vegetables, and most food must be imported.<st1:country-region w:st=«on»><st1:place w:st=«on»>Djibouti</st1:place></st1:country-region>provides services as both a transit port for the region and an internationaltransshipment and refueling center. It has few natural resources and littleindustry. The nation is, therefore, heavily dependent on foreign assistance tohelp support its balance of payments and to finance development projects. Anunemployment rate of 40% to 50% continues to be a major problem. Inflation isnot a concern, however, because of the fixed tie of the franc to the US dollar.Per capita consumption dropped an estimated 35% over the last seven yearsbecause of recession, civil war, and a high population growth rate (includingimmigrants and refugees). Also, renewed fighting between <st1:country-region w:st=«on»><st1:place w:st=«on»>Ethiopia</st1:place></st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Eritrea</st1:place></st1:country-region> hasdisturbed normal external channels of commerce. Faced with a multitude ofeconomic difficulties, the government has fallen in arrears on long-termexternal debt and has been struggling to meet the stipulations of foreign aiddonors.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Ghana</st1:place></st1:country-region>Well endowed with natural resources, <st1:country-region w:st=«on»><st1:place w:st=«on»>Ghana</st1:place></st1:country-region> has twice the per capitaoutput of the poorer countries in <st1:place w:st=«on»>West Africa</st1:place>.Even so, <st1:country-region w:st=«on»><st1:place w:st=«on»>Ghana</st1:place></st1:country-region>remains heavily dependent on international financial and technical assistance.Gold, timber, and cocoa production are major sources of foreign exchange. Thedomestic economy continues to revolve around subsistence agriculture, whichaccounts for 40% of GDP and employs 60% of the work force, mainly smalllandholders. In 1995-97, <st1:country-region w:st=«on»><st1:place w:st=«on»>Ghana</st1:place></st1:country-region>made mixed progress under a three-year structural adjustment program incooperation with the IMF. On the minus side, public sector wage increases andregional peacekeeping commitments have led to continued inflationary deficitfinancing, depreciation of the cedi (national currency), and rising publicdiscontent with Ghana's austerity measures. A rebound in gold prices is likelyto push growth over 5% in 2000-01.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Kenya</st1:place></st1:country-region>. <st1:country-region w:st=«on»><st1:place w:st=«on»>Kenya</st1:place></st1:country-region>is well placed to serve as an engine of growth in <st1:place w:st=«on»>East Africa</st1:place>, but its economy is stagnating because of poor managementand uneven commitment to reform. In 1993, the government of <st1:country-region w:st=«on»><st1:place w:st=«on»>Kenya</st1:place></st1:country-region> implementeda program of economic liberalization and reform that included the removal ofimport licensing, price controls, and foreign exchange controls. With thesupport of the World Bank, IMF, and other donors, the reforms led to a briefturnaround in economic performance following a period of negative growth in theearly 1990s. <st1:country-region w:st=«on»><st1:place w:st=«on»>Kenya</st1:place></st1:country-region>'sreal GDP grew 5% in 1995 and 4% in 1996, and inflation remained under control.Growth slowed in 1997-99 however. Political violence damaged the touristindustry, and <st1:country-region w:st=«on»><st1:place w:st=«on»>Kenya</st1:place></st1:country-region>'sEnhanced Structural Adjustment Program lapsed due to the government's failureto maintain reform or address public sector corruption. A new economic team wasput in place in 1999 to revitalize the reform effort, strengthen the civilservice, and curb corruption, but wary donors continue to question thegovernment's commitment to sound economic policy. Long-term barriers todevelopment include electricity shortages, the government's continued andinefficient dominance of key sectors, endemic corruption, and the country'shigh population growth rate.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Lesotho</st1:place></st1:country-region>. Small, landlocked, and mountainous, <st1:country-region w:st=«on»><st1:place w:st=«on»>Lesotho</st1:place></st1:country-region>'s only important naturalresource is water. Its economy is based on subsistence agriculture, livestock,and remittances from miners employed in <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region>. The number of suchmine workers has declined steadily over the past several years. In 1996 theirremittances added about 33% to GDP compared with the addition of roughly 67% in1990. A small manufacturing base depends largely on farm products which supportthe milling, canning, leather, and jute industries. Agricultural products areexported primarily to <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region>. Proceeds from membership in a commoncustoms union with <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region> form the majority of governmentrevenue. Although drought has decreased agricultural activity over the past fewyears, completion of a major hydropower facility in January 1998 now permitsthe sale of water to <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region>, generating royalties that will be animportant source of income for <st1:country-region w:st=«on»><st1:place w:st=«on»>Lesotho</st1:place></st1:country-region>.The pace of parastatal privatization has increased in recent years. Civildisorder in September 1998 destroyed 80% of the commercial infrastructure in <st1:City w:st=«on»><st1:place w:st=«on»>Maseru</st1:place></st1:City> and two othermajor towns. Most firms were not covered by insurance, and the rebuilding ofsmall and medium business has been a significant challenge in terms of botheconomic growth and employment levels. Output dropped 10% in 1998 and recoveredslowly in 1999.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>. Before the peace accord of October 1992, <st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>'seconomy was devastated by a protracted civil war and socialist mismanagement.In 1994, it ranked as one of the poorest countries in the world. Since then, <st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region> hasundertaken a series of economic reforms. Almost all aspects of the economy havebeen liberalized to some extent. More than 900 state enterprises have beenprivatized. Pending are tax and much needed commercial code reform, as well asgreater private sector involvement in the transportation, telecommunications,and energy sectors. Since 1996, inflation has been low and foreign exchangerates stable. Albeit from a small base, <st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>'s economy grew at anannual 10% rate in 1997-99, one of the highest growth rates in the world.Still, the country depends on foreign assistance to balance the budget and topay for a trade imbalance in which imports outnumber exports by five to one ormore. The medium-term outlook for the country looks bright, as trade andtransportation links to <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region> and the rest of the region areexpected to improve and sizable foreign investments materialize. Among theseinvestments are metal production (aluminum, steel), natural gas, powergeneration, agriculture (cotton, sugar), fishing, timber, and transportationservices. Additional exports in these areas should bring in needed foreignexchange. In addition, <st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>is on track to receive a formal cancellation of a large portion of its externaldebt through a World Bank initiative.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>. <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>is a rural country with about 90% of the population engaged in (mainlysubsistence) agriculture. It is the most densely populated country in <st1:place w:st=«on»>Africa</st1:place>; is landlocked; and has few natural resources andminimal industry. Primary exports are coffee and tea. The 1994 genocidedecimated <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>'sfragile economic base, severely impoverished the population, particularlywomen, and eroded the country's ability to attract private and externalinvestment. However, <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>has made significant progress in stabilizing and rehabilitating its economy.GDP has rebounded, and inflation has been curbed. In June 1998, <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region> signedan Enhanced Structural Adjustment Facility (ESAF) with the IMF. <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region> has alsoembarked upon an ambitious privatization program with the World Bank. Continuedgrowth in 2000 depends on the maintenance of international aid levels and thestrengthening of world prices of coffee and tea.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region>. Despite progress in privatization and budgetary reform, <st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region>'seconomy has a long way to go. The recent privatization of the hugegovernment-owned Zambia Consolidated Copper Mines (ZCCM) should greatly improve<st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region>'sprospects for international debt relief, as the government will no longer haveto cover the mammoth losses generated by that sector. Inflation andunemployment rates remain high, however.

<st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region>. The government of <st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region>faces a wide variety of difficult economic problems as it struggles toconsolidate earlier progress in developing a market-oriented economy. Itsinvolvement in the war in the <st1:country-region w:st=«on»><st1:place w:st=«on»>Democratic Republic of the Congo</st1:place></st1:country-region>, for example, hasalready drained hundreds of millions of dollars from the economy. Badly neededsupport from the IMF suffers delays in part because of the country's failure tomeet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 59%in 1999. The economy is being steadily weakened by AIDS; <st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region> hasthe highest rate of infection in the world. Per capita GDP, which is twice theaverage of the poorer sub-Saharan nations, will increase little if any in thenear-term, and <st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region>will suffer continued frustrations in developing its agricultural and mineralresources.

So thegeneralization is obvious. The countries which have the highest GDP per capitaare oil, gas as well as other raw materials exporters. Almost none of thecountries has stable source of incomes. Oil exporters are in a better conditionthen the last, but it has a number of negative consequences. The first is thattheir economy are heavily dependant on the oil prices. The next is that eventhe richest resources may be easily wasted if the incomes are not managedproperly. The corruption in a government, continuous possibility of warfarewouldn’t let foreign capital flow easily into these countries. Even the oilfields couldn’t attract investitions if there’s no political stability. Thoughthe most population of these countries are involved in agriculture the most of themcouldn’t provide enough food for themselves. The reason is simple lack of waterresources. A number of countries having a lot of resources are not able to usethem efficently because of continuous warfares, which are draining budgets.These are the major negative facts considering African economy, but there are alot of positive ones.

Accordingto ECA’s «Africa Economic Report 2000» shows, for five years running, <st1:place w:st=«on»>Africa</st1:place>'s GDP has grown faster than its population,reversing the falling living standards of the previous 15 years. While growthtrends for the region as a whole remain depressed, some African countries aredoing well. Fourteen countries have grown on average by 4 percent a year duringthe 1990s, with rising annual incomes of 2-3 percent and even higher, withanother 10 countries following close behind with growth rates above 3 percent ayear. Some countries have grown at 7 percent a year or higher (<st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>, 7percent, and <st1:country-region w:st=«on»><st1:place w:st=«on»>Uganda</st1:place></st1:country-region>,7.1 percent). «These figures show us that economic reforms over recentyears have slowly but surely improved growth in many African countries andallowed the private sector to take root,» says Alan Gelb, ChiefEconomist of the World Bank's Africa region. «However, despite thisrising trend, countries are still vulnerable to conflict and external shocks inworld markets, such as the recent rapid increase in oil prices and fallout fromthe <st1:place w:st=»on">East Asia</st1:place> crisis. These two forces havetogether produced highly unfavorable terms of trade for oil importers."<span Arial Unicode MS"">

<span Arial",«sans-serif»">Now shortlyabout the social indicators.

<span Arial",«sans-serif»">Although lifeexpectancy has risen slightly in <st1:place w:st=«on»>Africa</st1:place>, thisis happening at a slower rate than elsewhere and, since 1990 the HIV/AIDSepidemic has caused it to decline, especially in countries with high adultinfection rates. In <st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region>,for example, life expectancy has fallen by five years, while in <st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>, ithas fallen by over ten. <span Arial",«sans-serif»"> Life Expectancy at birth is ranging between <span Arial",«sans-serif»">37<span Arial",«sans-serif»">year (SierraLeonne) and 71.8 year (<st1:country-region w:st=«on»><st1:place w:st=«on»>Seychelles</st1:place></st1:country-region>).The rule is that <span Arial",«sans-serif»">Africans living in countriesbeset by conflict are more likely to have shorter life expectancy at birth andhave higher infant mortality rates than other more stable countries. <st1:country-region w:st=«on»><st1:place w:st=«on»>Sierra Leone</st1:place></st1:country-region> isa striking illustration of this trend with the region's lowest life expectancyrate at just 37 years, and its highest infant mortality rate at 169 deaths perone thousand.<span Arial",«sans-serif»"> <span Arial",«sans-serif»">Childmortality is a particularly acute problem for many countries in <st1:place w:st=«on»>Africa</st1:place>. Infant mortality is close to 10 percent, and onaverage 151 of every 1,000 children die before the age of 5, although in manycountries the mortality rate exceeds 200 per 1,000. <span Arial",«sans-serif»">Illiteraci level is extremelly highfor the whole territory of <st1:place w:st=«on»>Africa</st1:place>. Populationper physician oscillates in the following range lowest: 827 (<st1:country-region w:st=«on»><st1:place w:st=«on»>Seychelles</st1:place></st1:country-region>),highest: 53986 (<st1:country-region w:st=«on»><st1:place w:st=«on»>Niger</st1:place></st1:country-region>).There’s no use to say that population per hospital bed is also in very poorcondition.<span Arial",«sans-serif»"> <span Arial",«sans-serif»">Despitemajor strides that had been made in the eradication of malaria, the disease ison the rise again throughout <st1:place w:st=«on»>Africa</st1:place>. Elsewherein the world HIV/AIDS is on the decline. In <st1:place w:st=«on»>Africa</st1:place>,HIV/AIDS has reached pandemic proportions, threatening to wipe out <st1:place w:st=«on»>Africa</st1:place>’s fragile social and economic gains. Two-thirds ofthe world’s 34 million AIDS sufferers are in sub-Saharan <st1:place w:st=«on»>Africa</st1:place>.Today in 21 African countries more than 7 percent of adults live with HIV/AIDS,with the highest absolute number of cases found in <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region>, where one in everyfive adults has contracted the virus. Countries like <st1:country-region w:st=«on»><st1:place w:st=«on»>Niger</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Sudan</st1:place></st1:country-region>, and <st1:country-region w:st=«on»><st1:place w:st=«on»>Mauritania</st1:place></st1:country-region>,which have some of the lowest incidence of AIDS in the region, offer greatpotential for control.Yet as countries like <st1:country-region w:st=«on»><st1:place w:st=«on»>Senegal</st1:place></st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Uganda</st1:place></st1:country-region> show,with the necessary political will and resources, the AIDS pandemic can berolled back.  A little bit bettersituaion is observed in the sphere of education. The new report shows that <st1:place w:st=«on»>Africa</st1:place> has made more progress in education than in healthwith literacy rates improving for both men and women. At 41 percent, theilliteracy rate in the region is still high compared to rest of the world, butit is at its lowest point ever. Of particular significance is the advance beingmade in girls' education. While this represents welcome progress, far moreneeds to be done. Half of <st1:place w:st=«on»>Africa</st1:place>'s children ofschool going age are out of school; this is even lower in rural areas and amonggirls.

<span Arial",«sans-serif»">The statistical data may vary depending onsource due to the insufficent automatization of statistical institutions of theregion. That’s why World Bank approved a grant to transfer systems to sixSouthern African

<span Arial",«sans-serif»">countries (<st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Lesotho</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Tanzania</st1:place></st1:country-region>, and <st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region>) tostrengthen their statistical reporting capabilities. «The quality ofdevelopment data depends on the source. Our goal is to empower statisticaloffices in Africa, and help them to move from hand-written National Account tablesto a modern system that is easy to adopt, maintain, and capable of deliveringquality data,» says Ziad Badr, the team leader of AfricanDevelopment Indicators 2001, and a senior World Bank economist in its Africaregion. «This will bring statistical institutions in <st1:place w:st=»on">Africa</st1:place> into the new millennium, and provide a reliablesystem to measure development progress and identify remaining challenges."

<span Arial",«sans-serif»">Insummary, macro balances, or getting the prices right, is not economic reformjust as casting a ballot is not democracy. The hallmarks of a capable state arestrong institutions of governance; a sharp focus on the needs of the poor;powerful watchdogs; the rule of law; intolerance of corruption; transparencyand accountability in the management of public affairs; respect for humanrights; participation by all citizens in the decisions that affect their lives;as well as the creation of an enabling environment for the private sector andcivil society.

<span Arial",«sans-serif»">4. Economicorganizations in <st1:place w:st=«on»>Africa</st1:place>

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<span Arial",«sans-serif»">The main economic power of <st1:place w:st=«on»>Africa</st1:place> south of the <st1:place w:st=«on»><st1:PlaceName w:st=«on»>Sahara</st1:PlaceName> <st1:PlaceType w:st=«on»>Desert</st1:PlaceType></st1:place>is South African Republic. Through its well developed infrastructure anddeepwater ports, <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region> handles much of the trade for thewhole southern African region. In 1970 its immediate neighbours, <st1:country-region w:st=«on»><st1:place w:st=«on»>Botswana</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Swaziland</st1:place></st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Lesotho</st1:place></st1:country-region>, andlatterly <st1:country-region w:st=«on»><st1:place w:st=«on»>Namibia</st1:place></st1:country-region>,signed the Southern African Customs Union (SACU) enabling them to share in thecustoms revenue from their trade passing through South African ports. In orderto counter the economic dominance of <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region> in the southernAfrican region, the countries to the north of it organised themselves into theSouthern African Development Conference (SADC). Member states include those ofthe SACU as well as <st1:country-region w:st=«on»><st1:place w:st=«on»>Angola</st1:place></st1:country-region>,situated north of <st1:country-region w:st=«on»><st1:place w:st=«on»>Namibia</st1:place></st1:country-region>,and it's oil-rich enclave of <st1:place w:st=«on»>Cabinda</st1:place>, and <st1:country-region w:st=«on»><st1:place w:st=«on»>Mozambique</st1:place></st1:country-region> onthe east coast, and the countries of south-central <st1:place w:st=«on»>Africa</st1:place>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Zimbabwe</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Zambia</st1:place></st1:country-region>and <st1:country-region w:st=«on»><st1:place w:st=«on»>Malawi</st1:place></st1:country-region>.<st1:country-region w:st=«on»><st1:place w:st=«on»>Kenya</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Uganda</st1:place></st1:country-region>and <st1:country-region w:st=«on»><st1:place w:st=«on»>Tanzania</st1:place></st1:country-region>signed Treaty for Enhanced East African Co-operation in order to allow freeflow of goods and people.

<span Arial",«sans-serif»"><span Arial",«sans-serif»">The small landlocked central Africancountries of <st1:country-region w:st=«on»><st1:place w:st=«on»>Rwanda</st1:place></st1:country-region>and <st1:country-region w:st=«on»><st1:place w:st=«on»>Burundi</st1:place></st1:country-region>form part of an economic union of countries in the central African region.Other members of the Economic Community of Central African States are <st1:country-region w:st=«on»><st1:place w:st=«on»>Cameroon</st1:place></st1:country-region>, the <st1:country-region w:st=«on»><st1:place w:st=«on»>Central African Republic</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Chad</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Equatorial Guinea</st1:place></st1:country-region>,the oil-rich <st1:country-region w:st=«on»><st1:place w:st=«on»>Congo</st1:place></st1:country-region>and <st1:country-region w:st=«on»><st1:place w:st=«on»>Gabon</st1:place></st1:country-region>and the vast country of the Democratic Republic of Congo. The EconomicCommunity of West African States (ECOWAS) is a solid geographical bloc of 15states from <st1:country-region w:st=«on»><st1:place w:st=«on»>Nigeria</st1:place></st1:country-region>in the east to <st1:country-region w:st=«on»><st1:place w:st=«on»>Mauritania</st1:place></st1:country-region>in the west. The countries of <st1:country-region w:st=«on»><st1:place w:st=«on»>Mauritania</st1:place></st1:country-region>,<st1:country-region w:st=«on»><st1:place w:st=«on»>Mali</st1:place></st1:country-region>and <st1:country-region w:st=«on»><st1:place w:st=«on»>Niger</st1:place></st1:country-region>are located in the southern stretch of the <st1:place w:st=«on»><st1:PlaceName w:st=«on»>Sahara</st1:PlaceName> <st1:PlaceType w:st=«on»>Desert</st1:PlaceType></st1:place>while the remaining countries are splayed out along the coast line. As a resultof their respective colonial histories, these countries are divided into Frenchand English-speaking states. The francophone countries include the republics ofBenin, Burkina Faso, Togo, the Ivory Coast (Côte d'Ivoire), Guinea andSenegal while the remaining states of Nigeria, Ghana, Liberia, Sierra Leone,and the Gambia have English as their official language. The <st1:place w:st=«on»><st1:PlaceType w:st=«on»>Republic</st1:PlaceType> of <st1:PlaceName w:st=«on»>Guinea Bissau</st1:PlaceName></st1:place>is a Portuguese-speaking state to the south of <st1:country-region w:st=«on»><st1:place w:st=«on»>Senegal</st1:place></st1:country-region>.

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<span Arial",«sans-serif»">5.

<span Arial",«sans-serif»"> Problems and ways tosolve them

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<span Arial",«sans-serif»">The biggest challenge to doing businessin <st1:place w:st=«on»>Africa</st1:place> is the lack of quality informationabout <st1:place w:st=«on»>Africa</st1:place>. Some of the other challenges of <st1:place w:st=«on»>Africa</st1:place> are:

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<span Arial",«sans-serif»">fluctuating currencies

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<span Arial",«sans-serif»">bureaucratic red tape, whichis slowly getting easier to wade through

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<span Arial",«sans-serif»">graft and corruption

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<span Arial",«sans-serif»">nepotism

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<span Arial",«sans-serif»">wars and unrest, though thechanges in <st1:country-region w:st=«on»><st1:place w:st=«on»>South Africa</st1:place></st1:country-region>are starting to create a ripple of peace and democracy throughout the region

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<span Arial",«sans-serif»">lack of local capital

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<span Arial",«sans-serif»">monopolies such as marketingboards, state trading firms, foreign exchange restrictions, trade taxes andquotas and concentration on limited commodities all place a disincentive onexports, thus delinking <st1:place w:st=«on»>Africa</st1:place> from the worldeconomy.

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<span Arial",«sans-serif»">lack of infrastructure,though in areas such as telecommunications and energy, <st1:place w:st=«on»>Africa</st1:place>is able to use new technologies to leapfrog more advanced economies

<span Arial",«sans-serif»">However, none of these challenges isinsurmountable; in fact, some entrepreneurs would contend that African risk islower than that even of <st1:place w:st=«on»>North America</st1:place>.

<span Arial",«sans-serif»">There is hardly could be a person, whois able to resolve all the problems considering the challenges in the list. Butthere are a number of tasks to be completed in order to improve the quality oflife and gain stable economic growth.

<span Arial",«sans-serif»">Resourcemobilization

<span Arial",«sans-serif»"> To halve poverty by 2015countries must reach the 8 percent growth in GDP each year, instead of present4.4 %. To reach this rate investments must be 40 percent of gross domesticproduct. <span Arial",«sans-serif»">Even with major increase in domesticsavings, there are still huge financing gaps. <st1:place w:st=«on»>Africa</st1:place>’srate of return on Foreign Direct Investment is 29 percent per year, higher thanany other region of the world. Annual average foreign investment flows haveincreased from $1.9 billion in 1983-87 to $6 billion in 1993-97. But this isjust 4 percent of the total investment pouring into developing countries. Inthe face of global financial volatility, <st1:place w:st=«on»>Africa</st1:place>'snascent capital markets have also remained buoyant. Yet institutional investorsremain resistant to the possibilities in <st1:place w:st=«on»>Africa</st1:place>.African countries have undertaken significant economic reforms, but investmenthas not come.

<span Arial",«sans-serif»">            Regional co-operationRegional integration is the key to <st1:place w:st=«on»>Africa</st1:place>'ssuccess in the 21st century. The challenge is for the subregionalinitiatives to march together and in step with the World Trade Organization.

<span Arial",«sans-serif»">            Information technology  Information and communication technologiespresent some of the most exciting possibilities for <st1:place w:st=«on»>Africa</st1:place>in the new millennium. “With new ways to communicate we can leapfrog throughseveral stages of development; cut the cost of doing business; and narrow thegap of huge distances. …At ECA, we want to make sure that Africans are drivers,not passengers, on the information highway…” says Dr. K.Y. Amoko, executivesecretary, Economic Comission for <st1:place w:st=«on»>Africa</st1:place>. atthe National Summit on <st1:place w:st=«on»>Africa</st1:place> held inWashington D.C. 17 February 2000. There was registered a significant growth inInternet spreading through the continent. E-Commerce, television and radio arealso developing rapidly.

<span Arial",«sans-serif»">Governance

<span Arial",«sans-serif»">Ensuring and sustaining good governance must be an African responsibility,first and foremost.

<span Arial",«sans-serif»">Socialinvestment

<span Arial",«sans-serif»">. Social spending has becomea major casualty of recent budget cuts in many African countries. To expectthat <st1:place w:st=«on»>Africa</st1:place> can progress when investment inits human capital is declining is a classic case of being penny wise and poundfoolish. Social investment challenges of health, education, housing,water supplies and sanitation are enormous and demand the creativity andpartnership of all caring parties.

<span Arial",«sans-serif»">Genderequality

<span Arial",«sans-serif»"> Excluding Islamiccountries, <st1:place w:st=«on»>Africa</st1:place> is the most remarkableregion in terms of discrimination against women. Since the UN's Fourth WorldConference on Women in <st1:City w:st=«on»><st1:place w:st=«on»>Beijing</st1:place></st1:City>in 1995, the world better understands the need to free women to become equalparticipants in development. This is not just a matter of rights but of goodeconomic sense. “It is past time to lead by rhetoric; it is time to lead byexample.” (from the National Summit on <st1:place w:st=«on»>Africa</st1:place>documents”)

<span Arial",«sans-serif»">Preventingconflict

<span Arial",«sans-serif»"> The world has learnedexpensively that it is cheaper and far more humane to prevent conflict than tofight a war. So it is one of the most actual problems for African countries. Toquote the UN Secretary General, «in the past twenty years we haveunderstood the need for military intervention where governments grossly violatehuman rights and the international order. In the next twenty years we mustlearn how to prevent conflicts, as well as intervene in them.» Peace canno longer be just about peace making and peace keeping. It is also about peacebuilding.

<span Arial",«sans-serif»">Africandiaspora must also take part in ongoing processes. A lot of Africans live inEuropean countries as well as in <st1:country-region w:st=«on»><st1:place w:st=«on»>United States</st1:place></st1:coun

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