Ivory Coast Proposal Simon

Cote d’Ivoire
Economic Development Proposal

Proposal
In 1999 the World Bank and IMF put pressure upon the Ivorian Government to liberalise the Ivorian cocoa market to end Government control, however the new system has been criticised due to a lack of transparency and high taxes.
Ivorian farmers receive 40% of profits, whereas in Ghana this number is placed at 60%.
“Recent reports (Reuters 23/10/09) suggest the government is poised to re-regulate the cocoa sector to try to reverse output declines that have put the country's main revenue generator at risk.”
The Proposal: Put pressure upon the government, as in 1999, so that the current system is scrapped for a more efficient system that will reduce taxes upon the farmers to a point where they are equaling the levels seen in Ghana.

Current Economic Status
Labour force = 7.346 million
- 68% of population work in agriculture
GDP (PPP): $34.12 billion
GDP per capita (PPP): $1,700
Composition of GDP:
- agriculture: 28%
- industry: 21.6%
- services: 50.4%
Population below poverty line = 42%
- lowest 10% consume 2%
- highest 10% consume 34%
- Gini = 44.6 (46th)
Investment = 9.5% of GDP
Budget
revenues = $4.823 bn
Expenditures = $4.915 bn
net = -.092 bn
Debt = 66.4% of GDP
External debt = $14.05 bn
Inflation = 6.3%
Producer of: coffee, cocoa, bananas, palm kernels, corn, rice, sweet potatoes, sugar, cotton, rubber, timber.
Industry production growth = 3%
Current account balance = $488 m
Exports = $10.9 bn
Imports = $6.76 bn
$2.252 bn in reserves

Current Development Status
HDI Ranking: 163rd
Population: 20,617,068 est
- Dependency ratio: .769%
Age structure:
- 0-14: 40.6%
- 15-64: 56.6%
-65 and over: 2.9%
Population growth rate: 2.133%
Fertility rate: 4.22 children/woman
Life expectancy: 55.45 years
- male: 54.64 years
- female: 56.28
Sex ratio: 1.03 male/woman
Infant Mortality: 68.06 deaths/1000
- 28th worst
HIV Rate: 3.19%
- people living w/ = 480,000
- deaths = 38,000
- 16th worst
Literacy: [Age 15 and over can read/write]
- total: 48.7%
- males: 60.8%
- females: 38.6%
Education expenditures: 4.6% of GDP
[same % as Germany]

Resources and Neighbours
Burkina Faso – 177th
Ghana - 152nd
Guinea – 173rd
Liberia – 169th
Mali – 178th
515km of coastline
Natural Resources:
- Petroleum / natural gas
- Diamonds / gold / nickel / Iron ore
- Cocoa beans / coffee / palm oil
World’s largest producer of cocoa beans

Current World Bank Initiatives
Small and Medium Enterprise Revitalisation and Governance project
Urgent electricity Rehabilitation Project
Ivory Coast Protected Area Project
CI – Data Collection
Cote d’Ivoire Support for Young Entrepreneurs and Urban Job Creation
Extractive Industries Transparency Initiative Implementation
Governance and Institutional Day
Emergency Multi-Sector HIV/AIDS Project
RCI – Emergency Urban Infrastructure
Emergency Post-Conflict Assistance Project
Youth Employment Pilot
Third Agreement Amending Development Credit Agreement
TRANSP SECTOR ADJ. SUPPLEMENT
TRANSPORT SEC. ADJ.
CI-Azito Partial Risk Guarantee
Transport Sector Adjustment Investment Credit Project
Education & Training Support
Debt & Debt Reduction
Rural Land Management and Community Infrastructure Development Project
Total = $841million

Kavokiva and Fairtrade
Kavokiva receives a minimum of $1,600 per tonne of cocoa
- with the additional premium of $150/tonne reserved for community, business or environmental improvements.
Harvest of 2007/2008, Fairtrade bought 5,500 tonnes of produce from Kavokiva.
Fair Trade Premium
Healthcare, Education, Production, Women’s programmes, Transport, Environment, Credit programme have all been introduced from the Fairtrade premium that farmers receive.
www.fairtrade.org.uk

Proposal
In 1999 the World Bank and IMF put pressure upon the Ivorian Government to liberalise the Ivorian cocoa market to end Government control, however the new system has been criticised due to a lack of transparency and high taxes.
Ivorian farmers receive 40% of profits, whereas in Ghana this number is placed at 60%.
“Recent reports (Reuters 23/10/09) suggest the government is poised to re-regulate the cocoa sector to try to reverse output declines that have put the country's main revenue generator at risk.”
The Proposal: Put pressure upon the government, as in 1999, so that the current system is scrapped for a more efficient system that will reduce taxes upon the farmers to a point where they are equaling the levels seen in Ghana.

The Benefits
World Bank pressure upon the Ivorian Government to re-regulate the red tape around cocoa markets can enable farmers to receive an extra 20% of profits from the sales.
The increased incomes leave the Ivorian population with more funds to send their children to school, to feed their families, possibly trade on the open markets for non-essential goods. This increase in trade from the farmers leaves opportunities for entrepreneurs in the area to setup businesses which further increase economic growth, and can lead to further development projects being approved in an area showing signs of strength.

Ivory Coast Proposal Simon

by guest6fe4486 on Mar 01, 2010

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Ivory Coast Proposal Simon — Presentation Transcript