Economy of Comoros

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{company, market, business}
{food, make, wine}
{rate, high, increase}
{island, water, area}
{country, population, people}
{land, century, early}
{water, park, boat}
{village, small, smallsup}
{woman, child, man}
{city, large, area}

Comoros is made up of three islands that have inadequate transportation links, a young and rapidly increasing population, and few natural resources. The low educational level of the labor force contributes to a subsistence level of economic activity, high unemployment, and a heavy dependence on foreign grants and technical assistance. Comoros, with an estimated gross domestic product (GDP) per capita income of about $700, is among the world's poorest and least developed nations. Although the quality of the land differs from island to island, most of the widespread lava-encrusted soil formations are unsuited to agriculture. As a result, most of the inhabitants make their living from subsistence agriculture and fishing. Average wages in 2007 hover around $3-4 per day.

Agriculture, including fishing, hunting, and forestry, is the leading sector of the economy. It contributes 40% to GDP, employs 80% of the labor force, and provides most of the exports. The country is not self-sufficient in food production; rice, the main staple, accounts for the bulk of imports.

The government is struggling to upgrade education and technical training, to privatize commercial and industrial enterprises, to improve health services, to diversify exports, to promote tourism, and to reduce the high population growth rate. Continued foreign support is essential if the goal of 4% annual GDP growth is to be met. At 24 percent of GDP, remittances constitute an important source of inflows for the Comorian economy. [1]

Current GDP per capita of Comoros grew 55% in the Eighties. But this proved unsustainable and it consequently shrank by 42% in the Nineties.

Contents

Economic History

During the colonial period, the French and local leading citizens established plantations to grow cash crops for export. Even after independence, French companies, such as Société Bambao and Établissements Grimaldi--and other concerns, such as Kalfane and Company and later, President Abdallah's Établissements Abdallah et Fils--dominated the Comoran economy. These firms diverted most of their profits overseas, investing little in the infrastructure of the islands beyond what was needed for profitable management of the plantations, or what could benefit these businesses' associates or related concerns. A serious consequence of this approach has been the languishing of the food-crop agricultural sector and the resultant dependence on overseas food imports, particularly rice. In 1993 Comoros remained hostage to fluctuating prices on the international market for such crops as vanilla, ylang-ylang, and cloves.[2]

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