I am not an economist but I believe that in order to attract foreign investment we need to be competetive at all level. From personal experience ( and I am sure you have heard this on news if you are in europe and americas) I have learned that companies will always try to save money. Some companies like my previous employer outsource some of their departments abroad (india is one of the hot favorite , along come china). It seem to work for most of them although some companies reversed their outsourcing policy due to the unhappiness of their customers about the quality of services.
This lead us to the question: are we competitive? My answer is simply NO.
We are far from it in many ways:
According the
article I have posted (section Labor) we are lacking of skilled and experienced worker. I agree with my friend Idro about the need of education but our differences was on how we can achieve this. I just don’t believe in filling classrooms alone.
The same article states that “Telecommunications are reliable, but expensive”
Electricity: the blood sucking, the impoverishing machine, the national plague, the heavy burden, the nightmare of most djiboutians ( if not all) is another reason why foreign companies will not set a foot in there. I even heard that the tyranny in place use it as weapon against those who oppose it..they simply find an excuse and cutt if off.
Corruption= kill competition, favors monopolism ,some pay taxes some evades, bureaucracy (poor services – lack of commitment -) unfair judicial system, , favoritism of familly/friends for jobs instead of the best, the list goes on and on and on
Security = where there is an oppressor there is always a resistance. Sooner or later this will happen. Companies expect some sort of stability no for 1,2,3,5 or 10 years
Drugs: we produce more drog addicts than high-school graduates
In summary, we have little or no natural resources. The only thing we have are humans: we need to concentrate on the well being
1- health most of all – introduce method of discouraging the khat – enforce law against illegal drugs, promote sports througout the years not just when election approach,
2- education, education, education = high number of graduate/bachelor alone is not a solution , quality must exist..we must specialise and increase effort on area where there is potential (indians started concentrating on IT some twenty years back)
“* India produces more than 870,000 new IT graduates a year and produces more than a million engineering graduates a year, plus 16 million others with engineering diplomas. India is leading the way in new areas of pharmaceuticals, biotech, electrical and mechanical engineering. China also.”
We also need to get rid of the tyranny in power. There is no alternative. They are responsible of all other problems.