Question

1. The economies of Ethiopia, Ghana, Rwanda, and Tanzania have grown rapidly the last 15 years, even recovering quickly from the global recession. Why have these countries had such remarkable economic success for nearly two decades? Review the academic theories behind economic success and make an argument. Pick two of the countries above to compare and examine. Lastly, in your conclusion, have there been any negative aspects to this growth in your country?

Answer 1

In 2019, Ethopia had the highest GDP growth rate in the world and the economies of Tanzania ,Ghana ,and Rwanda also experienced economic success. Industry mostly construction and services accaounted for the growth in Ethiopia.Rwanda's economic growthand poverty reduction has been due to foreign exchange earners in mining,tourism , coffee and tea.Rwanda experienced rapid industrialization due to the government policies.Tanzanian economy accounts for 85% of exports of agricultural products.Ghana's economy is strong exporter of  cocoa,gold and oil. Service sector is expanding in Ghana.The economy attracts FDI and increasing oil and gas production is responsible for its success.

The increase in growth is due to market- oriented economic reforms since 1980.This structural change was the key factor of growth.The introduction of the market economy led to growth.

In the past two decades , Ghana moved towards democracy under a  the multi party system.Ghana's economy expanded to 6.7% GDP growth.There has been trade surplus of 2.8%of GDP.Tanzania has experienced high economic growth since 1990.There has been stability and reduction in inflation.Reduction of fiscal imbalances has been a major factor in the performance of Tanzania.There has been foreign investment in the tourism sector. A comparison of both the economies show that in 2018, GDP of Ghana was65, 518million dollars, while GDP of Tanzania was 56.852 million dollars. GDP per capita of Ghana was 2,201 dollars and in Tanzania was 1,009 dollars.

There are no negative aspects and economic growth in Africa benefits American economy.They are in America's interest when they open market to the goods and create prosperous economies.