Tag Archives: economic development

Iran’s Economic Problems Central Issue Of Nation

Iran and Western powers are clashing over issues regarding that nation’s nuclear program, but lost in these disputes is the apparent reality Iran is facing serious economic problems which hinder its development. Many Western leaders assume Iran is ready to confront the world with military action, but real economic issues most probably preclude any such action. Majis ‘speaker Ali Llarijani called on his nation to resolve Iran’s mounting economic problems. “The country should tackle economic twists and turns” he told Iran’s Chamber of Commerce. The Speaker of Iran’s Parliament believes it imperative for his nation to move in the direction of privatizing the economy and breaking the power of the government to direct this aspect of society. In an interesting comment, Larijani emphasized “the private sector should also have a part in Iran’s effort o stand up to Western pressure… no one in Iran is willing to surrender to pressure.”

Larijani’s call for competition in the economy is an admission the blundering efforts of his government to direct economic development have failed. Iran is not competitive in the world marketplace and there is need for dramatic changes to overcome inept government actions. It is interesting that Larijani emphasized Parliament, not President Ahmadinejad, should be directing reform of the nation. The omission of the president’s name is further evidence of a power conflict in Iran between parliament and Ahmadinejad. The good news is Iran’s need for Western economic assistance as long as that does not come across as “pressure.”

China In Afrca Economically-US In Iraq, Militarily!

During the past few years while the United States pursues its military ventures in Iraq and Afghanistan, the government of China has been actively pursuing its own ventures, economic that is, in many parts of Africa. The Chinese goal is to initially create five economic zones in parts of Africa in which they will heavily invest money and seek to tie the area to the Chinese market. Zambia has already been identified as one such zone and the mining area around the town of Chambishi will receive $800 million from China for economic development purposes. Tanzania has also been identified as a second China-Africa economic zone and it will receive $500 million. Cape Verde’ government is seeking to become a third economic zone and even major nations like Nigeria are in early stages of discussions with China about becoming economic areas tied to the Asian market.

The Chinese government has a five year plan to create five such economic zones in Africa. It is no wonder, China prefers America being tied down with military ventures in the Middle East which allows other nations to become economically invested in developing the future of Africa. There are those who still believe military expeditions add to a nation’s wealth, the evidence of China in Africa proves the reverse. Avoid military expenditures and invest your resources in economic development is a Chinese approach which is proving successful.

China Offers New Programs For Rural Areas

China issued the first document this year which focuses on needs of rural areas of the country. This year’s theme is “consolidating the foundation of agricultture.” Recent figures indicate while China’s population increased by 90 million over the past decade, per capital grain production froll from 412 kg in 1996 to 378 kg in 2006. Meanwhile, 220 million of the 990 million rural population began to work in urban and township enterprises. This resulted in a significant decline in the number of people available to harvest crops. The new document ensures more funding will go to rural areas in an effort to raise the level of crop harvests. There will be an emphasis on improving roads, water supplies and providing electricity.

An important neglected aspect of China’s dramatic rise to industrial and economic prominence has been failure to bring along rural people on this rise in income. The new document seeks to improve the quality of rural schools and work to ensure more of its graduates go on to colleges. There is even mention in the document of stimulating more private enterprise activities on the part of rural farmers in order to give people a greater stake in improvement of their farms.

A society in which 700 million labor in rural areas with lower quality schools and smaller incomes is a recipe for social disaster. At some point the rural population will become angry and demand equal rights in terms of being able to participate with the urban areas in becoming a modern society in which poverty is dramatically reduced.