A Study Report about Coping with Crisis in Central Africa: Enhanced Role for Non-Wood Forest Products
The current financial and economic crisis has directly and indirectly affected the drivers of Africa’s recent growth performance (AfDB, 2009). Demand for and prices of African commodities are falling, capital flows are declining, and promised increased aid has not materialized. Through contagion, the crisis has affected financial markets, foreign exchange markets and commodity markets – the last being of particular importance for forest products.
In Central Africa – considered in this article as the ten member countries of the Central African Forests Commission (COMIFAC): Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic Republic of the Congo, Equatorial Guinea, Gabon, Rwanda and Sao Tome and Principe – the crisis has taken a heavy toll on the economies that are highly dependent on natural resources. Several extractive industries in the Democratic Republic of the Congo, the Central African Republic and Cameroon have cancelled or postponed projects. Closure of 70 mining companies in the Kantaga region of the Democratic Republic of the Congo, for instance, led to a loss of up to 200 000 jobs between the end of 2008 and mid-2009. The recent crisis is also having serious impacts on the timber sector as orders for timber from importing countries diminish and logging and timber processing companies are forced to cut costs, close concessions and lay off workers. Keep reading…
A Case Study about Positive and Negative Impact of Remittances on Economic Growth in MENA Countries
Abstract: In the worldwide economy, remittances represent one of the major international flows of financial resources. Sometimes the flows of remittances can exceed the flows of foreign direct investment (FDI). For centuries, economists have tried to recognize why some countries reflect strong economic growth, while others stand still at low levels of output. This effort led to a numerous of possible determinants of economic growth including financial development. This study aims to observe the impacts of remittances on economic growth, using panel data set of MENA countries, Algeria, Egypt, Jordan, Libya, Morocco, Oman, Syria, Lebanon and Tunisia, during the period 2000-1010. These countries have experienced a major increase in remittance inflows, and at this time accounts for the bulk of total remittance receipts, compared with other regions.
Introduction: The growth performance in the Middle East and North Africa (MENA) region has been fragile and unsatisfactory. For example, over the last two decades, “real per capita GDP in the MENA region stagnated, compared to average annual growth of 4.1 percent in east Asia and 0.3 percent in all other developing countries over the same period” (Hakura, 2004). Naturally, this lack of economic growth should be a challenging issue to policy-makers because it exacerbates the problems posed by the already existing high unemployment rates and the relatively strong growth in the labor force of the region The argument that the development of well-functioning banks (financial development) is expected to positively affect economic growth is well supported by many cross-country, industry-level and firm-level research papers . For example, Chuah and Thai (2004) examined this issue for a group of Arab Gulf Countries. Based on bank credit to the private sector (as a measure of financial development) and the ECM and VAR models. Keep reading..
The East Asian Miracle’, that is how Korea’s impressive growth performance over the last four decades is usually described. The case study focuses on the conditions of dynamic industrial changes that helped Korea to catch up with the industrialised nations in the world. Click here to read more…
Managing rapid business growth can be a bit like hanging on to the tail of a tiger – or in this entrepreneur’s experience, an online accounting solution that boomed from start-up to over 200,000 users in just a few years.Thinking big, Rod had to set up an exceptionally designed and developed program that could handle thousands of users worldwide.
Knowing he couldn’t do this on his own, he made the daring decision to go public before launching the business. Pitching his plan to investors, he gained the funding he needed to build software that was capable enough of expanding quickly – with minimal technical problems along the way. Rod admits that having completed such stringent research and planning for his business plan is one of the big secrets of his success: “The prospectus had to be signed off by the board, so it had to be of a very high standard.” Click here to read more…
The phenomenal growth of the IT industry in India has brought to the fore the growing importance of India as a knowledge powerhouse. But this competitiveness is restricted to the services sector. In fact it is the sector that is increasingly contributing to the high growth rate recorded in the country.
Despite showing a good growth performance over the last three or four years, the manufacturing sector is still a non-performer although three industries constituting the manufacturing sector, namely auto parts, cotton textiles and pharmaceuticals are showing much dynamism in terms of exports.
However India’s exports have now diversified to encompass services. In fact the service sector in general has come to occupy a pre eminent position in India’s economy in terms of its contribution to overall GDP, exports and as a destination for Foreign Direct Investments (Table 1).Learn more…
Poor and Unrealistic capital budgeting has long been the bane of socio-economic development in Africa and of course, Nigeria. The issue of capital, investment and how it was undertaken in the capital budgeting process thus constitutes a major concern of this paper. Even in the midst of vast economic and resources cum endowment, African countries are not only technologically backward but wallow in neckdeep poverty and indebtedness.
In the bid to resolve this nagging problem, this paper looked at the form and approach of the Nigeria government to capital budgeting. It tried to unravel the causes of project abandonment, capital disappearance and inhibition placed on capital budgeting as the country related to other countries outside her borders (particularly in the Western world). The paper adopted a basic research approach whereby it collected primary data from questionnaires administered on 94 firms primarily and they were complemented with vast secondary data extracted from Nigerian stock exchange fact books from 1980-1999.
The analysed data were presented in tables, percentages and were critically discussed. Basically, the study found out that most firms used one form of the criteria or another for selecting optimum investment. However, the study revealed that the most common method is the payback period. The study also revealed that dividends and taxation payouts as well as shareholders’ funds and share capital strongly influenced public companies growth performance when juxtaposed with retained earnings and credit investment.
Moreover, net cash flow on investment is found to be a strong determinant of performance since higher income dictates better investment returns and vice-versa.The paper concluded that capital budgeting decision is an unnegotiable investment decision making strategy that must be taken very seriously.
Given the fact that only private sectors made use of various methods of project valuation, which accounts for the reason why the little development visible in Nigeria are from the private sectors, the study therefore pushes that the government should embrace capital budgeting if it is to witness appreciable economic development. Read more…