Low-income economy Essay
A poor country or a low-income economy is defined as a country with a Gross National Product per capita of $765 dollars or less. In poor countries, every year around 17 million people die from diseases which could be treated, nearly two in three people cannot read or write, 190 million 10 to 14-year-olds in the developing world have to work. Cameroon, one of the poor countries in the world, the unemployment rate was estimated at 30% in 2001, and about 48% of the population was living below the poverty threshold in 2000.
Besides, average Cameroonian is 8 times poorer than the average citizen of the world(50 times poorer than the typical American). Why Cameroon is poor, the first reason is the problem of the Tourism Department in their country. The Ministry of Tourism is discouraging tourists getting into their country. Barriers to entry the border. It is not easy to get a visa, you need to pay for the official stamp of invitation then pay more for the visa. So this make less people travel in Cameroon. This disrupts one of the main incomes of the country such as tourism and giving up chances of investor to invest the country.
Douala, the largest city in Cameroon but which is have no real road, infrastructure systems is bad. The road full of the rubble and vast hole and Mostly Taxi in the traffic, which leads to incredible severed pollution. The was used to have buses but buses no longer cope with the decaying road. Economists used to think that economic wealth came from a combination of man-made resources (roads, factories and machines), human resources (hard work and education) and technological resources. Poor country has biggest rewards in investment and able to catch up quickly compared to rich country.
Rich countries don’t gain much from further investment and this is called “Diminishing Returns”. Places such as Taiwan, South Korea or China been doubling their income every decade or quicker. The theory of catch-up seems reasonable. But many poor countries are not growing faster than rich ones, in fact growing more slowly, example Cameroon. In Mancur Olson theory, say that the leader has to keep the economy functioning, needs to make investments and must spend more government revenue on wealth-creating goods and service The government corruption is occurring in Cameroon.
The president didn’t want to improve the country and just said to the public there is no money for development, but he was actually put the money into his pocket. He allowed the police set up road-blocking and try their best to get extract bribes from passenger and he also simply having a high tax to give his supporters. The Cameroon’s most prestigious private schools–Cameroon’s equivalent of Eton. The school is not far from the city of Bamenda. School grounds were a mix of the familiar and the odd: low ,cheaply built classrooms surrounding playing field.
The librarian is a volunteer for the British – based voluntary organization VSO (which aims to place skilled volunteer where they are most needed in poor countries. The school boasted two separate library buildings, but the librarian was most unhappy. Reasons of Cameroonian become not smarter or poorer than the rest of us. First, the library was unnecessary goes some way to explaining its poor design. Nobody pays too much attention to the functionality of a school whose functions are redundant. The library look good evidence, but Cameroonian is no smarter or more foolish than the rest of us.
Seemingly stupid mistakes so ubiquitous in Cameroon that incompetence cannot be adequate explanation we’re looking for. The lesson of this short story might to appear to be that self-interested or ambitious people in power are often the cause of wastefulness in developing countries. There are two type of dam in Cameroon, Modern dams and traditional dams. Modern dam is professionally designed and built, reliably delivering more water to more people. It’s irrigation system better than traditional dam. The Modern dam needs much less maintained than the traditional one.
The co-operative agreement which maintained the entire irrigation system to longer. Maintenance is a dead-end job, regardless of whether it pays dividends for the farmer and it also also requires two big job :keeping the dam in one piece ,and clearing the canals of obstruction. Development projects are often commissioned by people with no great interest in success but a great interest in bribes and career advancement. These are what will happen in Cameroon, Education System would be better, If people want to get a good education. Living Standard would be improved,
If a Meritocracy were in place. They have better technology and more working factories, If their profit weren’t eaten up. Is there have a chance for development?? The answer is Yes. The first reform must be cut Red Tape, allowing small business established and growing up. Government should make the small business able to expand their business and borrow money from the bank. Secondly, stop bribe. If the publics’ money weren’t eaten up in bribe, the will have more money to invest. If the investment is right, it will bring profit and attract foreigners come to their country.
Thirdly, elect a leader who has talent and able to do the right things to improve the country. The growth of a country is depending on the decision of the leader. Fourthly, develop the tourism in the country. If the country being beautiful and clean, it will attract people come to visit their country, soon will rise up the economy in the country. And last, also a vital one is to enlist world economy for help. A small country actually cannot survive without world economy because they need access to cheap fuel, raw materials, and loans from international banks and manufacturing equipment.