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Daniel Clocksin
Oct 03, 2021
In Welcome to the Forum
Through the process of putting together data and insights about Mozambique, I have compiled several thoughts as to clear issues in the country, yet come against the giant roadblock of suggesting solutions, of which there are, of course, many. The challenge is not as simple as coming up with an answer to the problem, but rather finding the best right answer to fit the nation's specific need. Perhaps an example will cary my point across with more ambiance. Mozambique is unlike Singapore or Silicon Valley, where the location has no natural resources to boast. In fact, the nation is home to a massive amount of natural resources, like agriculture, coal, and petroleum - so much petroleum, in fact, that it may end up competing with areas like Saudi Arabia for the largest reserves in the world (International Trade Administration, 2021). The reserve has the potential to create over $30 billion in exports in the years to come, which would more than double the national GDP, and increase total exports by nearly 600% (Observatory of Economic Complexity, 2019). Many significant challenges present themselves, however, both in high taxation and poor data on government expenditure (PWC, 2021). The main challenge, however, lies in the civil unrest in the country, and the instability, which is causing global organizations to restrict free trade until those issues are fixed. Government stakeholders own the majority of the wealth, and an increase in exports, while it may slightly benefit low-income citizens, may simply make the rich richer. The question now presents itself in full force: what is the "first" solution which creates the domino effect for all the rest of the solutions to take place? Is it a restructuring of government which produces the ability for more trade to enter the country? If so, how long will that feasibly take, and are the potential threats, such as a violent revolution (a very real possibility considering the current instability), going to outweigh the potential benefits of increased trade in the future? If the solution takes years, what are the solutions that should be put in place for people immediately? References: International Trade Administration. (2021, March 10). Mozambique—Oil & Gas. Mozambique - Country Commercail Guide. https://www.trade.gov/country-commercial-guides/mozambique-oil-gas-0
Observatory of Economic Complexity. (2019). Mozambique (MOZ) Exports, Imports, and Trade Partners. OEC - The Observatory of Economic Complexity. https://app-ant.oec.world/en/profile/country/moz
PWC. (2021, July 24). Mozambique—Individual—Taxes on personal income. Worldwide Tax Summaries. https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income
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Daniel Clocksin
Sep 04, 2021
In Welcome to the Forum
I was only 7 years old at the time, but I still have clear memories of driving with my grandmother (Ouma, as we call her in Afrikaans) to drop off our domestic worker, Katrina, at the squatter camp, just a ten minute drive from the outskirts of Springfontein, a small town in the Western Cape province of South Africa. My brother and I got out of the car to meet Katrina’s family. Everyone was fascinated with us, first because so few white people ventured into the squatter camps, and secondly because we were two boys who lived in America.In a matter of moments, we had a big crowd gathered to meet us, and I was overwhelmed with smiles and joy that seemed to exude from random strangers I had never met. I was also met with the overwhelming smells as people handed me their babies to hold, and glanced curiously at the shacks that each of the people were emerging from. At that point, the prospect of living in a house like that seemed like an adventure, like living in one of the club houses that I had built in the backyard. As it began to get dark, we climbed back in the car and drove home. I was too young to understand the socioeconomic factors that had caused the clear evidence of such poverty, but the stark abundance of poverty became a reality to me from a young age. I saw the reality of growth miracles like South Korea and Japan, and strongly believe that with the right understanding, education, and approach, African nations will be able to experience similar growth and alleviation of large scale poverty. Mozambique is a prime example of an African nation with the fifth lowest GDP in the world (Top 20 Lowest GDP Countries, 2020). Although the nation contains natural wealth and fertile soil to build up its agricultural capabilities, Mozambique’s history is rife with regime changes, victims of the Cold War through proxy altercations, and a 17-year long civil war, which only came to an end in 1992, marked with their re-joining of the Commonwealth in 1995 (Sheldon, n.d.). With a path to long-term peace feasible, the conversation can now turn towards empowering the informal economy to enlarge their efforts and create businesses to scale, through the clear presence of resources and dire need for entrepreneurs. Although each African country is vastly different, perhaps the start to one nation’s growth miracle will encourage and inspire other nations to do the same, and create at least some semblance of a model that other nations can use to institute this in their nations as well. Although there have been major changes in South Africa since I was a 7 year-old, my dream is to see the type of sustainable entrepreneurship and stable income in every area of South Africa, partnered by an ownership and desire to grow wealth and steward it well, and I would like to be a part, even if a small one, in that process. References: Sheldon, K. E. (n.d.). Mozambique | Culture, History, & People. Encyclopedia Britannica. Retrieved September 4, 2021, from https://www.britannica.com/place/Mozambique Top 20 lowest GDP countries. (2020). Statista. Retrieved September 3, 2021, from https://www.statista.com/statistics/256547/the-20-countries-with-the-lowest-gdp-per-capita/
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