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Submitted by BEN WASHIKA on
I disagree with sentiments of Nuvaga on Natural resources................They are basically that.God given but owned by someone thus not free.Take for example gold,diamonds,wild animal and such. Back to the topic. Many African countries follow the strategy of exporting as much as they can and, since they are uncompetitive in manufactures and services, they export raw materials, Mark Halle, director of the International Institute for Sustainable Development, said in an interview with IPS about the World Trade Report 2010 on trade in natural resources. The report, released by the World Trade Organisation (WTO) on Jul 23, showed that fish, forestry, fuels and mining products represented 24 percent of world trade in 2008. Fuels account for three-quarters of this trade and have experienced a rapid growth since 2000. Intra-regional trade among African states remains at exceedingly low levels – an average five percent – while most of Africa’s exports continue to consist of commodities and particularly energy commodities. Regions that are rich in natural resources mainly ship these to industrialised countries. In 2008, the natural resources exports of Africa amounted to 406 billion dollars, of which 86 percent was for fuels, which represents 73 percent of the total commodities export of the continent. According to the WTO report, domestic policies such as consumption taxes, technical regulations and subsidies are widely used by exporting countries. If we discourage the exports do we have ready markets for the Gold and diamonds within Africa at a competetive price........NO is the answer.Look at the Wildlife and tourism in Kenya where the locals are being persued to venture intop domestic tourism.unless this happens then export of tourism will continue. What of Value additions?The point is Africa needs to look at value addition on the natural resources prior to export.This will improve their BOT.I feel ashamed that cocoa is exported to USA only for a chocolate to be imported yet this can be done locally. I rest my case.