Answer to Question #192936 in Economics for Loide

Question

Choose a topic of your choice on the Namibian economy and provide a justification (problem statement) why you have chosen that particular topic.Write the statement of the research problem in just half a page.

Answer 1

Namibia is nominally a lower middle-income economy with a per capita gross domestic product (GDP) well above the average for sub-Saharan Africa. But this summary is misleading. Only a quarter of all Namibians and only one-sixth of black Namibians have sufficient income; up to two-thirds live in extreme poverty with limited access to public services. Economic growth remains problematic due to a shrinking manufacturing sector, a shortage of fixed capital, and serious problems in the global market for base metals and uranium oxide. In addition, a sound fiscal policy established by the government after independence means that unless foreign aid commitments quickly turn into large actual inflows and private external investment in mining, manufacturing, and fisheries, one segment of GDP that grew rapidly in the 1980s s years will shrink. Superimposed on these factors is the near-stagnant employment and the collapse of the local economy, which arose from the presence of South African troops, and then UNTAG units in the northern cities.