Economic Development Proposal Essay Example | Topics and Well Written Essays - 1750 words

Economic Development Proposal - Essay Example 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 (â€Å"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, â€Å"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 uncertain ty 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