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by The Poggers Fish of Antagarichh. . 69 reads.

Economy - Ministry of Finances


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East African Federation
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ECONOMY

Currency

East African Lire()

Fiscal Year

2008

GDP

US$ 858.2 Billion (2008 est.)

GDP Per Capita

US$ 18,467.60 (2008 est.)

GDP Growth Rate

2.17% (2002 est.)

The East African Economy is a mixed and developing economy with a massive public sector and a developing private sector. Under the Presidency of Samora Yunis, the East African economy has begun the process of economic liberalization as part of the President's goal to make East Africa a "trillion-dollar economy". This has included the privatization of hundreds of state-owned companies, the reduction of import tariffs, and cutting back regulations on both production and on foreign involvement in the East African economy. Large portions of East Africa's telecommunications and energy sectors remain nationalized, and the agricultural sector within East Africa is still almost completely government-controlled and subsidized.

The East African Federation has the largest and fastest-growing economy in Africa and is the most populous country in Africa. 60% of East Africa's population is under the age of 18, meaning the East African economy has one of the fastest growing worker pools in the world, although concerns over job creation not matching up with potential employees have been expressed by economists. To counter this, Samora Yunis's liberalizations have brought in foreign companies to the Federation to provide more economic opportunity for East Africans and increase competition to spur market development. To keep up with population growth, the Federation has estimated it must create 110,000 jobs every year, and to do so, has established numerous projects throughout the Federation such as opening up Baher Dar as an industrial city almost completely centered around being a hub for industry.

History


Sectors


Agriculture
Agriculture within the East African Federation accounts for 32.9% of the East African GDP, 53.3% of all exports, and 40% of the East African labor force. Coffee, beans, oilseeds, cereals, potatoes, sugarcane, vegetables, and flowers are some of the pain products of agriculture within the Federation, while livestock accounts for 14.1% of the East African economy. Almost all of the Federation's agriculture is under government control or strict government regulation, however a considerable underground market exists for livestock trading and drug smuggling. Drugs such as khat are traded heavily from Socotra and Somalia throughout the Federation, travelling overland into the Ethiopic States and the Littoral States and overseas to the island states. The Federation is Africa's biggest producer of maize, and produces 0.9% of the world's coffee production.

Most of the nation's agriculture was nationalized in 1979, following the First Retribution, and almost all of the rest was nationalized in 1995 as part of President Siad Barre's Emergency Aid and Relief Policy Plans to combat economic recession and potential famine. Utilizing farming equipment and aid provided by the Soviet Union, China, India, and the United States, these nationalized farms were turned into large communal farms under direct management by the Federal government, which has continued to manage twenty five large collective farms throughout East Africa. Farmers working in these farms, all situated within an area known as the Ethiopian Breadbasket, are provided government housing, subsidies, and wages. Approximately 92% of all of East Africa's white market agriculture has been nationalized, with the remaining ~8% remaining under the control of private farmers such as families and tribal groups. A large unregulated market for farming and animal trading also exists, which the government has continuously debated taxing, but has decided numerous times against this, as many parts involve nomadic tribal peoples and allow for greater relief against potential famines.

Energy
Almost all of East Africa's nationwide energy sector is nationalized, although under the liberalizations of Samora Yunis, a growing portion of it has become privatized. The energy sector is primarily based on waterpower, forests, and nuclear power through the use of hydroelectric dams and nuclear reactors.

RawReport